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Central Bank of the Democratic People's Republic of Korea

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The Central Bank of the Democratic People's Republic of Korea is North Korea's central bank. Established on December 6, 1947, it issues the North Korean wŏn. The Bank is subordinated to the Cabinet of North Korea. Since 2023, the president of the bank has been Paek Min Gwang.[2] The bank served as the de facto commercial bank of North Korea until the Kim Jong-un era, when financial and banking reforms separated the central bank from commercial functions.[3]

Central Bank of the Democratic People's Republic of Korea
조선민주주의인민공화국중앙은행
Headquarters58-1 Mansu Dong, Sungri Street, Central District, Pyongyang[1]
Coordinates39°00′41″N 125°45′11″E / 39.0113°N 125.7531°E / 39.0113; 125.7531
Established1947
PresidentPaek Min Gwang
Central bank ofDemocratic People's Republic of Korea
CurrencyNorth Korean won
KPW (ISO 4217)
Central Bank of the Democratic People's Republic of Korea
Chosŏn'gŭl
조선민주주의인민공화국중앙은행
Hancha
朝鮮民主主義人民共和國中央銀行
Revised RomanizationJoseon Minjujuui Inmin Gonghwaguk Jungang Eunhaeng
McCune–ReischauerChosŏn Minjujuŭi Inmin Konghwaguk Chungang Ŭnhaeng

History

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In December 1945, the Pyongyang branch of the Bank of Chōsen created a temporary monetary office, known as the "calculation office". On 9 January 1946, the central bank of North Korea was created with use of all branches of the Bank of Chōsen on North Korean territory.[4] In practice, that central bank was under the control of the Soviet Armed Forces.[5] It was complemented in April 1946 by the creation of a Farmers' Bank.[4] However, the Soviet-controlled central bank failed to accomplish its objectives, being unable to meet its costs of operation, and its 100 million wŏn capitalisation proved to be insufficient,[6] and the North Korean Interim People's Committee opted to work mainly through the Farmers' Bank.[6]

On 29 October 1946, the system was reorganized. 58 local banks were merged into the central bank, including North Korean operations of Japanese-era Korean banks headquartered in Seoul such as Chōsen Commercial Bank, Chōsen Savings Bank, or Chōsen Trust. Simultaneously, control of the central bank was taken over from the Soviet forces by the North Korean government through its finance ministry.[4] By 1947, the Central Bank and Farmers' Bank were the only two credit institutions in the country and together formed its single-tier banking system in line with the Soviet model. In June 1947, around 1,000 million wŏn was concentrated in the Central Bank, allowing it to extend credits totalling 900 million wŏn for economic rehabilitation.[7] The consolidation reflected a return to the original objectives of the People's Committee, which desired tight control over the North Korean economy. Any bank employees opposed to the changes within the system were removed from their posts.[7] On 6 December 1947, a comprehensive program of currency reform was announced.

In 1959, the Farmers' Bank was merged into the Central Bank of the Democratic People's Republic of Korea, and the Foreign Trade Bank was established to handle the Central Bank's international business.[8] Further state banks to deal with foreign exchange operations were created between 1987 and 1996.[9]: 10 

In 2011 the Central Bank building was torn down to make way for the newly constructed Mansudae/Changjon Street Area in celebration of Kim Il Sung's 100th birthday anniversary. The new sight of the Central Bank building is located in the Ot'an-dong division of Chung-guyok.[10]

Organization

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The Central Bank has over 220 branches.[8] It operates the Chŏnsŏng electronic cash card.[11]

Presidents

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Name Took office Left office Notes
Kim Kyo-yong 1953 1956-? [12]
Chong Song-on 1959 1962-? [13]
Pyon Song-u 1969[14] 1988 [15][16]
Chong Song-taek 1988[17] 2000 [18][19][20]Jong Song-thaek, born 1930[17]
Kim Wan-su 2000 2009 [21]
Ri Kwang-gon 2009 2010–?
Paek Ryong-chon 2011 2014
Kim Chon-gyun 2014 2021
Chae Song-hak 2021 2023 [22][23]
Paek Min Gwang 2023 Incumbent [24]

See also

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References

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  1. ^ Martino, John, ed. (2013). Worldwide Government Directory with Intergovernmental Organizations 2013. Los Angeles: Sage Reference. p. 892. ISBN 978-1-4522-9937-2.
  2. ^ "Central Bank « North Korean Economy Watch". North Korean Economy Watch.
  3. ^ "[Vol.27 No.4] Changes in North Korea 's Financial System During the Kim Jong-un Era - Based on North Korean Literature | (상세) | Bank of Korea". www.bok.or.kr. Retrieved 31 October 2024.
  4. ^ a b c "Banks in N. Korea". KBS World. 3 October 2019.
  5. ^ McCune, George M. (2007). Korea Today. READ BOOKS. p. 193. ISBN 978-1-4067-2764-7.
  6. ^ a b McCune, 2007, p. 194.
  7. ^ a b McCune, 2007, p. 195.
  8. ^ a b Hoare, James; Pares, Susan (2005). A political and economic dictionary of East Asia. Routledge. p. 31. ISBN 978-1-85743-258-9.
  9. ^ "Country Profile: North Korea" (PDF). Library of Congress. July 2007.
  10. ^ Melvin, Curtis (2013-07-03). "Revealed: Pyongyang's new Central Bank headquarters | NK News". NK News - North Korea News. Retrieved 2024-10-30.
  11. ^ Frank, Ruediger (6 April 2017). "Consumerism in North Korea: The Kwangbok Area Shopping Center". 38 North. U.S.-Korea Institute, Johns Hopkins University School of Advanced International Studies. Retrieved 10 April 2017.
  12. ^ "DTIC ADA368791: Korean Affairs Report, No. 304. North Korea: Biographic Dictionary. Part 1". Defense Technical Information Center. 24 August 1983.
  13. ^ "DTIC ADA368791: Korean Affairs Report, No. 304. North Korea: Biographic Dictionary. Part 1". Defense Technical Information Center. 24 August 1983.
  14. ^ "Korean Affairs Report No. 304 North Korea: Biographic Dictionary parts 1 and 2". Defense Technical Information Center. 24 August 1983.
  15. ^ Chiefs of State and Cabinet members of foreign governments / National Foreign Assessment Center. 1987July-Dec. 2003. hdl:2027/osu.32435024019812 – via HathiTrust.
  16. ^ Chiefs of State and Cabinet members of foreign governments / National Foreign Assessment Center. Jan–Oct 1989. 2003. hdl:2027/uc1.c049297898 – via HathiTrust.
  17. ^ a b Agency, Yonhap News (15 January 2004). Korea Annual 2003. Yonhap News Agency. ISBN 9788974330644.
  18. ^ Chiefs of State and Cabinet members of foreign governments / National Foreign Assessment Center. Sept 1991. 2003 – via HathiTrust.
  19. ^ Gause, Ken E. (August 31, 2011). North Korea Under Kim Chong-il: Power, Politics, and Prospects for Change. ABC-CLIO. ISBN 9780313381751 – via Google Books.
  20. ^ Chiefs of State and Cabinet members of foreign governments / National Foreign Assessment Center. 1990:Sept.-Oct. 2003. hdl:2027/uiug.30112083083391 – via HathiTrust.
  21. ^ "North Korean Policy Elites - IDA Paper P-3903" (PDF). Defense Technical Information Center. Archived from the original (PDF) on 2021-08-30. Retrieved 2024-06-28.
  22. ^ "Members of the DPRK Cabinet Appointed". KKF Online. Archived from the original on 2021-10-25. Retrieved 2021-03-06.
  23. ^ "State leadership bodies elected". The Pyongyang Times. 12 April 2014. Retrieved 3 December 2017.
  24. ^ "Members of DPRK Cabinet Newly Appointed". Rodong Sinmun. 28 September 2023. Retrieved 28 September 2023.

Further reading

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