The central bank in colony was founded in the process of uniting Japan’s colony into Yen currency area and establishing monetary system in colonial Taiwan and Korea. And the central bank note was made for applying money for development in colony and preventing inflation from spreading to Japan. It showed the process of formation and spread of monetary area in colony modeled Taiwan bank that government general in Taiwan established Taiwan bank(臺灣銀行) and formed its monetary area circulated Taiwan bank note in colonial Taiwan, and Daiitch bank(第一銀行) in Korea established Daiitch bank note and formed its monetary area.
But the process of formation of monetary area in colony had difference as much as it had similarity. As the reorgnization of the monetary system in Taiwan made progress after colonization, the reorgnization of the monetary system in Korea started before colonization. The difference of these conditions made difference in the formation of monetary system. While the reorgnization of the monetary system in colonial Taiwan was the process of the consultation and adjustment between government general in colony and Japanese government, it was the process of conflict and antagonism surrounding the monetary sovereignty in Korea. Government general in Taiwan carried out establishing the central bank right after colonization of Taiwan. But it was the first establishment and it undergone trial and error related transition to the gold standard. On the other hand Korean government reacted against the erosion on the monetary sovereignty and Daiitch bank note was approved as lawful money(法貨) under the protectorate at last. As the monetary reform in Taiwan was carried out on the base of the subordination of the economic structure, the monetary reform in Korea push on the violent way in the course of Russo-Japanese war and succeeding erosion of sovereignty.
The difference in the process of establishing monetary system resulted in the difference in the system of note issue. Taiwan bank and Daiitch bank in Korea was similar that they borrowed the elastic limit system(屈伸制限制度) designed on the model of Japan bank. The system of note issue in Taiwan bank had gold or silver as its specie reserve(正貨準備), but the system of note issue in Daiitch bank had Japan bank note as its specie reserve. Japanese government cut off the direct relation between Taiwan bank note and Japan bank note, but strengthened the supervisory on Taiwan bank. On the other hand Japanese government intensified the intervention of Japan bank, but government general in Korea took charge of the supervisory on Korea bank.