Because of a price hike for nonferrous metals used to make coins, like copper and nickel, the intrinsic value of the metals used to make a W100 coin is W104.6, the Bank of Korea said on Monday. A W100 coin is made of 25 percent nickel and 75 percent copper. Meanwhile, the cost of the raw materials for a W50 coin (12 percent nickel, 70 percent copper, 18 percent zinc) reached W52.58.

This is the first time the cost of the raw materials for W100 and W50 coins has exceeded their face value. "Raw material prices are surging as the economic boom in China and India leads to strong demand," the Bank of Korea explained.

The price of nickel, the most expensive material in Korea's coins, jumped to US$52,150 (US$1=W932) per ton on the London market early in this month, from $30,425 in 2006 and $13,372 in 2005.

Last year, when the cost of the metals used in W10 coins (65 percent copper, 35 percent zinc) reached four times higher than their face value, people began making and selling jewelry from melted down W10 coins. To stop this, the Bank of Korea introduced new W10 coins made from aluminum at the end of the year.

(englishnews@chosun.com )