Cash Left to Decay: ₩3 Trillion in Banknotes Destroyed After Improper Storage

A simple habit—wrapping cash in newspaper and storing it away—ended up destroying millions of won and contributed to a nationwide loss totaling trillions. According to the Bank of Korea, damaged and unusable banknotes worth ₩2.84 trillion were destroyed in 2025 after being deemed unfit for circulation.

One case involved a resident in North Chungcheong Province who had kept ₩18.92 million in cash wrapped in newspaper inside a storage space. When the money was later retrieved, prolonged exposure to moisture had caused the bills to become sticky, partially melted, and fused together. In another instance, a Daejeon resident discovered that 592 ten-thousand-won notes hidden under floor vinyl had been burned and deteriorated. Unlike the first case, the damaged bills were still eligible for exchange at face value.

Such incidents are not isolated. The central bank reported that a total of 364.01 million banknotes were scrapped last year due to severe damage or contamination. If laid end to end, the discarded bills would stretch over 44,000 kilometers—more than the Earth’s circumference. Stacked vertically, they would reach a height 17 times that of Mount Everest.

Although the amount destroyed remains enormous, it represents a 23.3% decline from 2024, when nearly 475 million banknotes worth ₩3.38 trillion were disposed of. The Bank of Korea attributed the decrease mainly to reduced recovery of cash from circulation, driven by lower market interest rates and increased demand for physical currency.

By denomination, ₩10,000 bills accounted for nearly half of all damaged banknotes, while among coins, 100-won pieces were the most frequently discarded. The central bank reiterated that damaged currency can often still be exchanged: banknotes with more than three-quarters of their surface remaining can be redeemed for full value, while those with between half and three-quarters remaining qualify for half their face value.

The Bank of Korea emphasized that careful handling and proper storage of cash can significantly reduce the cost of producing new money, adding that it will continue public campaigns encouraging the clean and responsible use of currency.