The Bank of Korea (BOK) has released a net KRW4.76 trillion in new banknotes into the financial system in the run-up to the Lunar New Year, as households prepare for one of the country’s busiest cash periods, the Yonhap News Agency reports.

Over the 10 working days to February 13, the central bank supplied KRW5.03 trillion in currency to commercial banks and other financial institutions, while withdrawing KRW273.5bn. The resulting net injection of KRW4.76 trillion - equivalent to roughly $3.3bn - represents a 6.2 per% from the comparable pre-holiday period last year, Yonhap adds.

The BOK attributed the fall primarily to the calendar effect. This year’s Lunar New Year break runs for five days, compared with six days in 2025. In addition, seasonal demand typically seen at the end and start of the year was more clearly separated from holiday-related cash needs, dampening the headline figure.

The Lunar New Year falls on Tuesday, February 17, with the official holiday continuing through Wednesday February 18 in South Korea although elsewhere in Asia it runs until the 22^nd.

Despite the growing penetration of digital payments in South Korea, demand for crisp notes remains resilient at this time of year. It is customary for elders to present cash gifts to younger relatives following the traditional New Year’s bow, sustaining a ritualised spike in withdrawals that the central bank accommodates with freshly printed bills.