During April 1979, the North Korean Government Initiated Another Currency Reform.  The Entire 1959 Series Banknotes Were Replaced With Newly-Designed Banknotes.

     Information Cannot Be Found As To Why the Currency Reform and Newly-Designed Banknotes Took Place During 1979, But the Banknotes Are Dated 1978.

     Pick Number With   a   Designation -

     The Currency Reform Newly-Designed Banknotes Were Given Pick Numbers 18 thru 22.  The a Designation Was Initiated For the 1 Won, 5 Won, 10 Won, and 50 Won, Sometime During 1983 (?) When the b and c Variations Were Introduced.

     The Series 1978 100 Won Banknote and Future-Issued Banknotes With Great Leader Kim, Il-Sung's Portrait Are Not Given To Socialist Or Capitalist Visitors When Money Is Exchanged.

     It Is Believed By the North Korean Government That Non-North Koreans Would Not Show Proper Respect For the Great Leader.

     The 1978 Series 100 Won Is the Only North Korean Banknote Without the Green Or Red Square-Shaped Bank Stamp Variation Issued During 1983, Nor the Red Or Blue Guilloche Variation Issued During 1986.

     Some North Korean Defectors Stated They Did Not Like Having Or Using Banknotes With Great Leader Kim, Il-Sung's Portrait Because Of the Severe Penalty For Damaging the Portrait On the Banknote.

     It Has Been Reported By Defectors That Damaging Any Portraits Of Great Leader Kim, Il-Sung Is a Capital Offense, Punishable By Either Imprisonment, Or the Maximum Penalty Of Death.

     At an Unknown Date, the North Korean Government Also Introduced a Three-Level Structure Of Their Money System.  The Series 1978 Banknotes, Not Including the 100 Won Banknote, Were Used For All Three Levels.  The Three Levels Are Described.

     The Lowest Level Of the Three Level Currency Reform Is Referred To In Western Terminology As Korean Money.  There Is No North Korean Terminology For This Lowest Level.  With This Lowest Level, Only citizens Of North Korea Were Allowed To Use This Type Of Banknote.

     The Lowest Level Banknotes Have No Square-Shaped Bank Stamp Or Guilloche Design On the Reverse.  This Lowest Level Banknote Could Not Be Legally Exchanged For Socialist Or Capitalist Currency.  Rationing Coupons Were Required When a North Korean Citizen Wanted To Make a Purchase Of Any Major Applicances, But Could Not Be Used, Nor Were Accepted, In DPRK Government-Designated Shops, Stores, Or Restaurants and Hotels That Operated For Socialist and Capitalist Visitors.

     Pick Number With   b   Designation -

     The Middle Level Of the Three-Level Currency Reform Is Referred To In North Korean Terminology As Pakkundon, Or Changed Money.  It Is Also Referred To As FEC, Or Foreign Exchange Certificate, According To the DPRK-Published Book Introduction To Currency.  These Banknotes Are the Socialist Variation Of Foreign Exchange Certificate, Being Introduced 1983.

     This Resulted With Each Won Denomination Of the 1978 Series Banknotes Bearing the Pick Number With the b Designation.

     The b Designation Has Two Black Serial Numbers On the Obverse and a Green-Colored Square-Shaped Bank Stamp On the Reverse Side of All the Won Banknotes, Not Including the 100 Won Banknote.

     This Middle Level Consisted Of Soft Currency, Money From Socialist, Or Other Communist and Third-World Countries, Exchanged For North Korean Won By Socialist Visitors To North Korea.  The Middle Level Banknotes Could Be Used Without Rationing Coupons, But Could Only Be Used In DPRK Government-Designated Shops, Stores, Or Restaurants and Hotels.

     Ordinary Citizens Of North Korea Caught In Possession Of This Type Banknote Could Receive the Capital Offense Punishment Of Either Imprisonment, Or the Maximum Penalty Of Death, For Black-Marketing Money.

     There Was a Substantial Difference In Purchasing Power and Quality Of Purchased Items, Between Socialist and Capitalist Levels Of Pakkundon, Or Changed Money.

     Pick Number With   c   Designation -

     The Highest Level Of the Three-Level Currency Reform Is Also Referred To In North Korean Terminology As Pakkundon, Or Changed Money.  It Is Also Referred To As FEC, Or Foreign Exchange Certificate, According To the DPRK-Published Book Introduction To Currency.  These Banknotes Are the Capitalist Variation Of Foreign Exchange Certificate, Being Introduced 1983.

     This Resulted With Each Won Denomination Of the 1978 Series Banknotes Bearing the Pick Number With the c Designation.

     The c Designation Has Two Red Serial Numbers On the Obverse and a Red-Colored Square Bank Stamp On the Reverse Side Of All the Banknotes, Not Including the 100 Won Banknote.

     This Highest Level Consisted Of Hard Currency, Money From Capitalist, Non-Communist Countries, Exchanged For North Korean Won By Capitalist Visitors To North Korea.  The Highest Level Banknotes Could Also Be Used Without Rationing Coupons, But Could Only Be Used In DPRK Government-Designated Shops, Stores, Or Restaurants and Hotels.

     Ordinary Citizens Of North Korea Caught In Possession Of This Type Banknote Could Receive the Capital Offense Punishment Of Either Imprisonment, Or the Maximum Penalty Of Death, For Black-Marketing Money.

     At an Unknown Date During 1986, the Middle Level With Green Bank Stamp and the Highest Level With Red Bank Stamp Were Switched To a Guilloche Design.  This Design Switch Resulted With the 1978 Series Banknotes, Not Including Pick Number 22, Having the Same Pick Number, But Now Resulted With the Added d and e Designations.

     Pick Number With   d   Designation -

     The Reverse-Side Design Switch In 1986 Now Resulted With Capitalist Visitor Banknotes Having the d Variation and a Red Guilloche Showing the Won Amount Within the Red Guilloche and Having Two Red Serial Numbers On the Obverse Side.

     This Highest Level Still Consisted Of Money From Capitalist Countries, Or Hard Currency, Exchanged For North Korean Won, By Capitalist Visitors To North Korea.

     Ordinary Citizens Of North Korea Caught In Possession Of This Type Banknote Could Receive the Capital Offense Punishment Of Either Imprisonment, Or the Maximum Penalty Of Death, For Black-Marketing Money.

     Pick Number With   e   Designation -

     The Reverse-Side Design Switch in 1986 Now Resulted With Socialist Visitor Banknotes Having the e Variation and a Blue Guilloche Showing the Won Amount Within the Blue Guilloche and Having Two Black Serial Numbers On the Obverse Side.

     This Middle Level Still Consisted Of Money From Socialist, or Other Communist and Third-World Countries, Or Soft Currency, Exchanged For North Korean Won, By Socialist Visitors To North Korea.

     Ordinary Citizens Of North Korea Caught In Possession Of This Type Banknote Could Receive the Capital Offense Punishment Of Either Imprisonment, Or the Maximum Penalty Of Death, For Black-Marketing Money.

     The d and e Designations Are Also Referred To In North Korean Terminology As Pakkundon, Or Changed Money.  It Is Also Referred To As FEC, Or Foreign Exchange Certificate, According To the DPRK-Published Book Introduction To Currency.

     The 1978 Series North Korean Banknotes Remained In Circulation For Socialist And Capitalist Visitor Money Exchange Until 1988, When North Korea Once Again Initiated a Currency Reform, Introducing New Designs Of Pakkundon, Or Changed Money Banknotes, Specifically For Both Socialist and Capitalist Visitors To North Korea.