The market size of ‘art coins’, commemorative coins issued based on national symbols, is gradually expanding. The global market size exceeds 20 trillion won, and the average commemorative coin market size by country reaches 3 trillion won. Thanks to the rapid growth, discussions regarding the introduction of art-type coins are underway in Korea as well, centered around the Mint.
According to the Korea Mint and Mint on the 4th, art-type coins are currently being issued in six countries, including the United States, China, Canada, Austria, the United Kingdom, and Australia. In 2022, the total art coin sales in the six major countries will amount to KRW 19.862 trillion, which is three times that of 2019 (KRW 7 trillion).
◇ America is an eagle, China is a seller… Growing art coin market
Commemorative coins are legal tender issued by the central bank for a limited time to commemorate national events, anniversaries, and historical events. Since the face value is displayed, it can be used for commercial transactions, and can be exchanged for face value when you visit the Bank of Korea. A representative example is the commemorative coin made for a limited time to commemorate the 2018 Pyeongchang Winter Olympics.
Graphics = Son Min-kyun
Art coins are a type of commemorative coin. However, since it is issued as a means of promoting the image of the country rather than for commemorative purposes, the issuance period is long and the amount of issuance is large. Art-type coins have been produced using materials that symbolize each country, such as eagles in the United States, pandas in China, maple leaves in Canada, and the Philharmonic Orchestra in Austria.
The art coin market is gradually growing overseas. Major countries have designated multiple large international dealers, such as MTB and APMEX, to use them as distribution and sales channels for exports, and the industrial ecosystem is actively operating, including domestic and overseas sales and secondary markets (resale). The annual average amount of art coin issuance by country is approximately 3 trillion won.
However, Korea has not yet issued art-type coins. The total volume of commemorative coins issued, including art-type coins, is only around 30,000 to 50,000 per year, 1 to 3 times a year. This is in contrast to Australia and Spain, which have similar population sizes and gross domestic product (GDP) levels to Korea, which issued 16.5 million commemorative coins (182 coins) and 1.16 million coins (15 coins), respectively, in 2021.
BTS’ 10th debut anniversary commemorative medal (left) and a commemorative coin for the four seasons from a famous Korean product. Unlike commemorative coins with a face value of 50,000 won, commemorative medals have no face value. /Capture from Mint Corporation shopping mall
Instead of art coins, commemorative medals or bullion medals are traded. However, unlike coins, medals do not display the face value, so they cannot be used in commercial transactions. Because it is not legal tender, tariffs are imposed when exported overseas. As a result, the market size is small and demand is low. According to the Korea Minting and Minting Corporation, bullion medal sales in 2022 were 90,000 pieces and sales were around 5.3 billion won.
◇ Korea is also pursuing introduction… Necessary consultation between Mint, Bank of Korea and Ministry of Strategy and Finance
The Mint Corporation is promoting the issuance of art-type coins in order to grow the domestic commemorative coin issuance market. We have been conducting research to secure the feasibility of the art coin business since last month, and plan to complete the service in July. On the 25th of last month, a seminar was held under the theme of ‘Overseas cases and implications of art coins.’
A look at the ‘2024 World Currency Expo’ held in Berlin, Germany last month. / Provided by Korea Minting and Minting Corporation
Recently, we participated with domestic experts at the 2024 World Monetary Fair (WMF) held in Berlin, Germany and inspected the current status of art-type coin production in major countries. WMF is the world’s largest monetary culture industry fair, with over 300 companies from 45 countries around the world participating in the fields of precious metal refining and smelting, machinery and equipment, including central banks and minting institutions.
However, even if the feasibility of the project is confirmed as a result of the research, it is expected to take a considerable amount of time before it is actually issued. It is necessary to consult with the issuing entity, the Bank of Korea, and also receive advice from an advisory committee composed of experts. Even if an issuance plan is established through this process, it must be approved by the Ministry of Strategy and Finance and approved by the Bank of Korea’s Monetary Policy Committee. If the research project is completed at the end of July, the Monetary Policy Committee may have to wait until the end of the year to pass a resolution.
The good news is that the Bank of Korea has recently improved the efficiency of the commemorative coin planning process. At the regular meeting held on the 17th of last month, the Monetary Policy Committee allowed the advisory committee to include not only the design of the commemorative currency but also the subject of issuance. Previously, we only received advice on currency designs, but now we also receive advice on topics. In addition, it was decided to increase work efficiency by adding working-level consultations with the Ministry of Strategy and Finance to the future commemorative coin issuance process.
An official from the Mint said, “If the art coin manufacturing and sales industry is revitalized, it will not only increase the nation’s status but also contribute to the development of the national economy.” He added, “Art coins can be used as a medium to strengthen and promote the international competitiveness of Korean culture.” “There is a need to foster and utilize it at the national level,” he said.
2024-03-03 21:02:00
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