"The Korea Minting and Security Printing Corporation must evolve from a manufacturer of physical currency and identification cards to a trusted digital infrastructure verification agency in the AI and digital economy era," said Seong Chang-hoon, president of the corporation.
As cash usage declines, what should the mint focus on? The answer is not currency. It is about instilling the 'trust' that has been engraved on money and identification cards for 75 years into the digital world.
The production cost of a banknote is significantly less than its face value. Yet, we trust and use a piece of paper worth 10,000 or 50,000 won because the state guarantees its value and it is not easily counterfeited. The essence of minting is not just printing money; it is about creating trust.
As the Korea Minting and Security Printing Corporation marks its 75th anniversary, it finds itself at a turning point. With cards and mobile payments becoming commonplace, cash usage continues to decline. Simply producing banknotes and coins is no longer a guarantee of future success.
The crisis is reflected in the numbers. Revenue dropped from 550 billion won in 2021 to 446.1 billion won in 2023. There are even concerns among public institutions that the mint could become the 'second coal corporation.'
The mint has sought solutions in its oldest technology: anti-counterfeiting and authentication. It has expanded its technology, which was originally designed to prevent banknote counterfeiting, to include mobile driver's licenses and resident registration cards, as well as public payment systems like digital gift certificates.
Last year, the currency business accounted for only 19% of total revenue, while non-currency operations exceeded 80%. The company is transitioning from a money-making entity to a trust-certifying organization.
AI is accelerating this transformation. Generative AI blurs the lines between real and fake. Deepfakes can mimic faces and voices, and photos and videos can be created in seconds. In this era, the technology to verify the source of content is as crucial as the technology to create it.
This is why the mint is developing AI-based digital watermarks as a new business. Just as it embeds anti-counterfeiting features in banknotes to verify their authenticity, it aims to embed invisible information in digital images and content to confirm their origin.
The application scope is broadening to include cultural and artistic products, goods, and digital content. The corporation is participating as a supplier in an AI voucher project to help small and medium-sized enterprises protect their products and content using this technology.
This is where the future of the mint lies. While it once focused on preventing counterfeit money, it is now tasked with preventing counterfeit digital assets.
Digital identities are also transitioning online. Identification cards and driver's licenses are moving from wallets to smartphones. The key is not merely transferring plastic cards to screens but establishing a new trust system that securely proves 'I am me' in the digital space.
As AI agents become more prevalent, the challenges grow more complex. In an era where AI can order goods, make reservations, and conduct transactions on behalf of people, the question arises: "Whose command is this AI acting under?"
Without verifying who granted authority, what data can be accessed, and whether the AI agent is qualified to transact, the AI agent economy will struggle to gain trust. Just as people need identification cards and passports, AI agents also require mechanisms to verify their authority and source.
This is why discussions at the mint's 75th anniversary seminar emphasized the need for the corporation to expand its role as a public trust verification agency that confirms the sources and authority of AI agents and data.
While this initiative is still in its early stages, the idea that an institution that has discerned the authenticity of people and money for 75 years can now also verify the authenticity of AI and digital values is compelling.
Digital currency is another new frontier. As central bank digital currencies (CBDCs) and stablecoins gain traction, there are discussions about the mint taking on roles as an intermediary platform or certification body.
Even as the form of currency shifts from paper to digital, the fundamental need to verify who issued it and whether it is genuine remains unchanged.
The goal of becoming the 'world's first digital mint' by the 80th anniversary in 2031 does not simply mean converting paper money to digital. It signifies transferring the trust function that has been part of the real economy into the digital economy.
The way of working is also changing to align with AI. Seong conducted Vibe coding training for executives, department heads, and affiliated organization leaders, demonstrating how AI can visualize data and assist in decision-making through an in-house HR dashboard.
The emphasis on training executives in AI is significant. Transforming an organization to embrace AI is not achieved merely by teaching employees how to use ChatGPT.
Top management must understand what AI can and cannot do to redesign the organization and its operations. Seong emphasized the importance of equipping executives with AI capabilities to lead organizational change and create an environment where all employees can work creatively and efficiently using AI.
The mint aims for sales of 1 trillion won by 2031. Last year's revenue reached 639.5 billion won, the highest ever. What stands out is not just the scale but the structure.
Despite the declining share of currency, total revenue has actually increased. This reflects a successful shift of its core competencies to new markets rather than clinging to a fading business.
This is a lesson for many public institutions. Digital transformation is not merely about adding AI to existing businesses. It must begin with asking, "What is the real reason for our existence?"
If the mint's purpose is defined as 'manufacturing banknotes,' its relevance diminishes in a cashless society. However, if it is defined as 'proving what the state and citizens can trust,' its market expands from currency to identification, digital content, and ultimately to AI agents and digital values.
As AI advances, trust paradoxically becomes more valuable. In a world where anyone can create photos, videos, and even replicate voices, the cost of verifying what is real increases.
In the AI era, the mint's true competitors may not be other national mints but rather counterfeits, forgeries, and the distrust prevalent in the digital world.
The appearance of money may fade, and the form of identification may change. However, as long as people engage in transactions and contracts, the function of assuring that 'this is real' will not disappear.
In an age where AI can create anything, someone must prove what is real. This is why the mint remains essential in the AI era.
:Seong Chang-hoon, President of the Korea Minting and Security Printing Corporation:
A policy expert who entered public service through the 37th National Examination, he has served as the Director of the Economic Structural Reform Bureau and the Director of the Long-term Strategy Bureau at the Ministry of Economy and Finance, as well as a senior administrative officer in the Economic Office of the Presidential Office.
Since taking office as president of the Korea Minting and Security Printing Corporation in October 2023, he has been leading the digital transformation by expanding the currency-centered business structure to include mobile identification, public payments, and security certification.
* This article has been translated by AI.
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