The North Korean Won (KPW) is the official currency of North Korea, also known as the Democratic People's Republic of Korea (DPRK).
It was first introduced in 1947, replacing the won used during the Japanese occupation of Korea.
The Central Bank of Korea, also known as the Central Bank of the Democratic People's Republic of Korea, is responsible for issuing and managing the North Korean won.
Segments and denominations
The North Korean won is subdivided into 100 smaller units called "chon".
The denominations of coins are 1, 5, 10, 50, 100 cents and 1 Korean won.
The banknotes are available in denominations of 5, 10, 50, 100, 200, 500, 1000, 2000 and 5000 won.
Exchange rate
The North Korean won is not freely convertible, which means it cannot be easily converted into other currencies on the international market.
The exchange rate is determined by the North Korean government, and the official exchange rate is usually far different from the black market rate.
Due to the country’s secrecy and tight control over its economy, the true value of the North Korean won is difficult to determine.
Economy
North Korea operates a centrally planned, socialist economy that is largely isolated from the global market.
The state controls all aspects of the economy, including production, distribution, and pricing.
Agriculture, mining, and manufacturing are key industries, and there are abundant natural resources such as coal, minerals, and cultivated land.
However, North Korea faces numerous economic challenges, including food shortages, outdated infrastructure, limited foreign investment, and international sanctions.
Challenges and prospects
North Korea’s economy faces significant challenges due to isolation, lack of economic reforms, and international sanctions imposed over its nuclear and missile programs.
To improve its economic prospects, North Korea needs to undertake major reforms, open up to international trade and investment, and address human rights and security concerns.
Summary
To summarize, the North Korean won is the official currency of North Korea, and its management is the responsibility of the Central Bank of North Korea.
Currency is subdivided into chon, with coins and banknotes issued in various denominations.
North Korea implements a centrally planned economy and a socialist economy, which is largely isolated from the global market, and the North Korean won is not freely convertible.
The country faces numerous economic challenges, including food shortages, outdated infrastructure and international sanctions.
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