The Bank of Korea is actively pursuing a project to recycle damaged currency instead of discarding it. This initiative comes as social interest in sustainable growth increases, with the necessity of recycling damaged currency continuously raised in the National Assembly.
◇ Production of solid fuel and concrete reinforcing materials from discarded damaged currency
According to ChosunBiz on the 15th, the Bank of Korea recycled 55% of the 400 tons of discarded damaged currency from last year into concrete reinforcing materials or solid fuel, while the remaining 45% was incinerated as before. Last year was the first time damaged currency was actively recycled.
A Bank of Korea official noted, "As the need for recycling damaged currency was pointed out in the National Assembly, we have been pursuing this internally as part of the discussions on sustainable growth and eco-friendly policies," adding, "Most of the amount is being recycled as solid fuel, with some being used as concrete reinforcing materials."
Damaged currency is immediately crushed and stored if found in such a condition that it is difficult to circulate at banks due to contamination or damage. After a certain amount is collected, it is disposed of in bulk; until now, most damaged currency has been treated by incineration.
Discarded damaged currency had been partially used as material for flooring in buildings or pads for vehicles in the past. However, since 2022, the demand for recycling has sharply decreased, leading to total incineration. This process incurred an incineration expense of about 100 million won annually.
Abroad, there are many cases of using discarded currency for various purposes. Central banks in the United States, Europe, and others recycle damaged currency into building materials, energy sources, and even toilet paper. Lee Soo-jin, a former member of the Democratic Party, argued in 2023 that the Bank of Korea should actively identify recycling companies for discarded currency and establish stable recycling methods by referencing foreign examples.
◇ The Korea Minting and Security Printing Corporation recycles currency by-products, creating money calendars and money pens
In line with the trend of currency recycling, the Korea Minting and Security Printing Corporation is also pushing forward with a waste recycling project. The corporation has begun a project to create souvenirs and daily necessities using by-products and waste generated during the currency production process, with notable examples including calendars, cushions, and pens made from currency.
A representative from the Korea Minting and Security Printing Corporation stated, "We are developing various merchandise to enhance the usability of waste generated during the currency production process and to practice environmental protection and sustainable management," adding, "We plan to continue introducing products that consumers will find interesting."
Recycling damaged currency goes beyond simple expense reduction; it also has significance as an eco-friendly policy. Since currency is made from special paper and ink, incineration can significantly impact the environment. Recycling it is expected to help reduce carbon emissions.
Currently, the Bank of Korea is considering ways to gradually increase the recycling rate of damaged currency. However, identifying companies that can process discarded currency reliably and exploring additional utilization methods remain essential tasks.
A Bank of Korea representative stated, "Currency is not just ordinary paper; it is made from cotton pulp embedded with various anti-counterfeiting devices, making recycling difficult," adding, "We are examining whether there are more environmentally friendly recycling methods aside from solid fuel and concrete reinforcing materials."