The kingdom of Goryeo used various currencies during its almost five centuries of rule on the Korean Peninsula. Both commodity and metallic money were used, often concurrently, in a "hybrid currency system": The metallic money consisted of coins, both Chinese and Korean, and silver currencies. Paper money was used during the late Goryeo period.
Goryeo was the first Korean state to mint its own coins. Among the coins issued by Goryeo, such as the Dongguk Tongbo, Samhan Tongbo, and Haedong Tongbo, about a hundred variants are known. Coins failed to gain widespread use, whereas silver currencies were used until the end of Goryeo. The ŭnbyŏng, a silver currency in the shape of the Korean Peninsula, was in circulation for around 300 years and, according to the Bank of Korea, occupies an important place in the history of Korean currency. Goryeo enjoyed monetary stability until the late 13th century, but experienced monetary instability with the introduction of paper currency from the Yuan dynasty.
History
Early period
The main currencies used in Goryeo after its founding were Chinese money, such as Tang and Song dynasty coins, and commodity money, such as cloth (). Goryeo did not have a unified legal currency, and each region, ruled by the quasi-independent hojok () regional lords, used a different currency.
Following the Khitan destruction of the kingdom of Balhae, which Goryeo had considered a country of kinship, Taejo of Goryeo proclaimed a ban on the circulation of all coins in 942. This was to sanction trade with the hated Khitans, who used metallic money, and protect Goryeo's metal reserves. In addition, Goryeo prepared itself for a conflict with the Khitan Empire. Taejo's prohibition in 942 indicates that, to some degree, coins had been circulating in Goryeo. Following the prohibition, rice and cloth were the medium of exchange. Likewise, cloth was the medium of exchange for everyday transactions in the Liao dynasty and Jin dynasty. During this period in Goryeo, agriculture achieved high productivity and living standards improved; rice and textile production enabled Goryeo to increase its military strength. The ban on coins lasted until 996, three years after Goryeo had resumed diplomatic relations with the Liao dynasty.
In 996, Seongjong of Goryeo minted iron coins to trade with the Khitans, who used iron coins. The coins may have been issued to promote centralization. As far as can be established, the iron coins were not inscribed. The government made many efforts to promote the use of coins instead of commodity money; in 997, Mokjong of Goryeo prohibited the monetary use of hemp cloth, which, at the time, was the most widely used currency for everyday transactions. However, because of opposition, including from the nobility, the government repealed the prohibition and shifted its policy in 1002: The distribution of the coins was stopped and the public was allowed to use any currency. Meanwhile, coins continued to be used at tea and wine shops (茶酒店) and restaurants.
The "Geonwon Jungbo", an iron coin inscribed with Geonwon Jungbo () on one side and Dongguk () on the other side, was excavated from a Goryeo tomb in the vicinity of Kaesong, the capital of Goryeo, in the early 1910s; it was unearthed along with bronze Geonwon Jungbo, Dongguk Tongbo, and Dongguk Jungbo coins. However, its relation to Goryeo's iron coins minted in 996 is controversial. Gary Ashkenazy of "Primal Trek" says that the Geonwon Jungbo is not mentioned in Korean historical sources and was not cataloged until 1938 in the by Masahiro Okudaira, in which it is attributed to Goryeo.
In Korea, the Geonwon Jungbo is considered a Goryeo coin. The original coin, called the Qianyuan zhongbao in Chinese, dates to 759 during the Tang dynasty; the Geonwon Jungbo, in contrast, is inscribed with Dongguk on the reverse. Dongguk was one of Goryeo's many names, along with Samhan, Haedong, Dongbang, and Cheonggu. According to Jun Seong Ho of the Academy of Korean Studies: "Since cast coins cannot be altered, the coin cannot have been recast preserving the Tang inscription. Most probably, the coin was a heavy denomination cast by the [Goryeo] mint in the late tenth century." Furthermore, Goryeo and Tang coins have a different metal composition.