The Bank of Joseon or Bank of Chosen was the central bank

Central bank

A central bank, reserve bank, or monetary authority is a public institution that usually issues the currency, regulates the money supply, and controls the interest rates in a country. Central banks often also oversee the commercial banking system of their respective countries...

 of Korea under Japanese rule

Korea under Japanese rule

Korea was under Japanese rule as part of Japan's 35-year imperialist expansion . Japanese rule ended in 1945 shortly after the Japanese defeat in World War II....

, and of South Korea

South Korea

The Republic of Korea , , is a sovereign state in East Asia, located on the southern portion of the Korean Peninsula. It is neighbored by the People's Republic of China to the west, Japan to the east, North Korea to the north, and the East China Sea and Republic of China to the south...

 under American occupation. The bank issued the Korean yen

Korean yen

The Korean yen was the currency of Korea between 1910 and 1945. It was equivalent to the Japanese yen and consisted of Japanese currency and banknotes issued specifically for Korea. The yen was subdivided into 100 sen...

 from 1910 to 1945 and the won

South Korean won (1945)

The won was the first South Korean currency and was in use from August 15, 1945 to February 15, 1953.-Etymology:Won is a cognate of the Chinese yuan and Japanese yen...

 from 1945 to 1950.

History and background

The bank was established by the Japanese government in 1909 as the Kankoku Ginkō, taking the place of the privately-held Japanese Daiichi Kokuritsu Ginkō

Dai-Ichi Kangyo Bank

The , abbreviated as , was one of the largest banks in the world during the latter half of the 20th century. It combined with Fuji Bank and the Industrial Bank of Japan in 2000 to form Mizuho Financial Group....

 (First National Bank), which had established a branch in Korea in 1878, and which had operated as a de facto central bank for Joseon dynasty

Joseon Dynasty

Joseon , was a Korean state founded by Taejo Yi Seong-gye that lasted for approximately five centuries. It was founded in the aftermath of the overthrow of the Goryeo at what is today the city of Kaesong. Early on, Korea was retitled and the capital was relocated to modern-day Seoul...

 Korea from 1905-1910. After the annexation of Korea

Japan-Korea Annexation Treaty

The Japan–Korea Treaty of 1910, also known as the Japan–Korea Annexation Treaty, was made by representatives of the Empire of Japan and the Korean Empire in 1910. Negotiations were concluded on August 20, 1910...

 by Japan in 1910, the bank was reorganized and its name was changed to reflect the official name for Korea as decided by the Japanese colonial authorities.

The bank remained a privately-held corporation

Joint stock company

A joint-stock company is a type of corporation or partnership involving two or more individuals that own shares of stock in the company...

 with stock owned by a number of Japanese banks and companies; however, its board was appointed by the Japanese government.

The bank was responsible for issuing currency

Currency

In economics, currency refers to a generally accepted medium of exchange. These are usually the coins and banknotes of a particular government, which comprise the physical aspects of a nation's money supply...

 in Korea, regulated domestic prices, and serviced international trade with branches in Manchukuo

Manchukuo

Manchukuo or Manshū-koku was a puppet state in Manchuria and eastern Inner Mongolia, governed under a form of constitutional monarchy. The region was the historical homeland of the Manchus, who founded the Qing Empire in China...

, and major ports in China and in Japan, as well as in London

London

London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...

 and New York

New York

New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...

.

The bank was dissolved by order of the Allied occupation authorities

Supreme Commander of the Allied Powers

Supreme Commander of the Allied Powers was the title held by General Douglas MacArthur during the Occupation of Japan following World War II...

 in 1950, and replaced by the newly formed Bank of Korea

Bank of Korea

The Bank of Korea is the central bank of South Korea and issuer of South Korean won. It was established on June 12, 1950 at Seoul, South Korea.The Bank's primary purpose is price stability. For that, the Bank targets inflation...

. Its Japanese assets were used to create Nippon Credit Bank, now known as Aozora Bank

Aozora Bank

is a Japanese commercial bank that offers service in 19 branches in Japan and in 5 overseas representative offices.-History:Aozora Bank is the successor of the Nippon Credit Bank , which was founded in 1957 under a special government trust banking license alongside the Long-Term Credit Bank of...

.