In the Goryeo Dynasty, King Seongjong minted iron coins, and King Sukjong minted and circulated copper coins and silver bottles. At that time, the issue of coinage was demanded by the development of goods distribution. The mintage and circulation of coinage in the early Goryeo Dynasty had two purposes. One was to disintegrate major clans' united political power and to strengthen the king' s sovereignty, and the other was to restore economy that had been impoverished by wars.
King Seongjong issued iron coins in the 15th year of King Dong (996). It was to meet financial demand for waging six times of war against Georan. Using coinage for financial expenses, the government could preserve goods of real value such as rice and textile. King Mokjong who ascended the throne in 998 inherited Seongjong's coinage circulation policy but the circulation of coins, which had been used for 7 years, was almost stopped except partial use at restaurants selling teas and liquors.
During the reign of King Sukjong after around 90 years since the stoppage of circulation, Jujeondogam(鑄錢都監) was installed and minted copper coins and silver bottles, and established laws related to mintage. The reason for Sukjong to mint coinage was the development of commerce and industry, which demanded the expansion of goods distribution. Particularly from the period of King Munjong, economic power was enhanced rapidly and this required the efficient circulation of coinage.
Copper coins were named by combining 'Haedong,' 'Dongguk' or 'Samhan,' which meant Goryeo, with 'Tongbo' or 'Jungbo.' Copper coins were shaped round and had a square hole at the center, and their name was embossed on the surface. On the other hand, the country minted silver bottles from the 6th year of King Sukjong and circulated them until the end of the Goryeo Dynasty.
During the reign of King Sukjong, mintage was led by Chief Priest Euicheon and Yoon Gwan, the king's closest aides, but it was opposed strongly by Gwak Sang, the governor of Seogyong. The reason for the opposition was that the prohibition of the use of flax would make it difficult for people to exchange goods. However, the real reason was the fear of a high increase in taxes resulting from the circulation of coinage.
The introduction of coinage is a reform of object economy, reflecting the flexibility and compositeness of economy admitting the coinage. Thus, the mintage and circulation of coinage in the early Goryeo Dynasty was a rare opportunity for reforming object economy in those days and developing the distribution of goods further. However, the circulation of copper coins failed. The reasons for the failure can be found in immaturity of goods manufacturing and distribution, underdevelopment of mines, limited trade with outsides, nondistinction between the high and low grades of copper coins, etc.