When traveling to South Korea, understanding its currency and payment methods is essential for a smooth and hassle-free experience. South Korea is a highly developed, tech-savvy country with modern banking systems and convenient digital payment methods. However, cash is still widely used, especially in smaller towns and markets. In this guide, we’ll explore Korean currency, how to handle payments, currency exchange tips, and the digital payment methods that have become increasingly popular.

1. The South Korean Won: An Overview

South Korea’s official currency is the South Korean Won (KRW), represented by the symbol ₩ and the international currency code KRW. The won has been the country’s currency since 1962, and it is available in both coins and banknotes.

Banknotes

South Korean banknotes come in four denominations:

• ₩1,000 (blue): This is the lowest denomination and is used for small purchases, such as street food or bus rides.
• ₩5,000 (red): Commonly used for meals, small gifts, or public transportation.
• ₩10,000 (green): The most frequently used banknote for everyday expenses, such as dining in restaurants, shopping, and transportation.
• ₩50,000 (yellow): The highest denomination available. It’s often used for larger purchases, such as electronics, clothing, or expensive meals. Be aware that not all small businesses and vendors accept ₩50,000 bills due to the difficulty of making change.

Coins

Coins are still used for smaller transactions, although their use has been declining due to the rise of digital payments.

• ₩10: The smallest coin, often used for small items or vending machines.
• ₩50: Useful for small purchases, such as snacks or drinks.
• ₩100: Frequently used for public transportation and vending machines.
• ₩500: The highest-value coin, typically used for transportation fares or small purchases.

2. Currency Exchange: Getting the Best Rate

When traveling to South Korea, you’ll need to exchange your local currency for Korean won. It’s advisable to exchange some money before you arrive, but currency exchange is widely available at airports, banks, and exchange kiosks across the country. Here’s what you need to know:

Airport Exchange vs. Banks

While it’s convenient to exchange money at the airport upon arrival, the exchange rates at airports tend to be less favorable than at banks or specialized exchange kiosks in the city. If possible, exchange a small amount at the airport for immediate expenses (such as transportation from the airport to your hotel) and then exchange larger amounts at a bank or exchange center.

Banks: Most major banks, such as KB Kookmin, Woori Bank, and Shinhan Bank, offer currency exchange services. Bank exchange rates tend to be better than those at airports, and banks are a safe and reliable option.

Currency Exchange Centers: In popular tourist areas like Myeongdong, Itaewon, and Hongdae, you’ll find many currency exchange centers offering competitive rates. These centers often have longer operating hours than banks and sometimes offer better rates than banks.

Tips for Currency Exchange

Check Rates: Always compare exchange rates before exchanging large sums of money. You can check online or visit different locations to find the best rate.
Avoid High Fees: Some exchange centers may charge higher fees or offer lower rates, especially in tourist-heavy areas. Be mindful of the service charges and fees that might be tacked onto the exchange process.

Keep Receipts: Some currency exchange centers may ask for identification, and it’s always a good idea to keep receipts in case you need to exchange any leftover won back to your home currency before departing.

3. Using Cash in Korea: Where Cash is Still King

While South Korea is known for its advanced digital payment systems, cash is still widely accepted and even preferred in certain places.

Where Cash is Commonly Used

Traditional Markets: If you plan to visit any of Korea’s famous traditional markets such as Gwangjang Market, Namdaemun Market, or Dongdaemun Market, carrying cash is a must. Many of the vendors, especially those selling food and small trinkets, only accept cash.
Street Food Vendors: The vibrant street food scene in Korea is an essential part of the travel experience. Street vendors, particularly in areas like Myeongdong or Hongdae, often only accept cash.
Public Transportation: While digital payment cards (like the T-money card) are widely used on buses and subways, certain taxis and smaller bus routes still accept cash as a form of payment.
Small Restaurants and Cafés: While most restaurants accept credit cards, small, family-run establishments in less touristy areas may prefer cash.
Rural Areas: If you plan to explore the countryside or smaller towns, having cash on hand is advisable, as digital payment options may be less widespread.

How to Withdraw Cash

If you need more cash during your trip, you can easily withdraw won from ATMs located throughout the country. Many ATMs in Korea accept international cards, but here’s what to look out for:

ATMs with English Language Option: Most ATMs in urban areas, including those in banks, convenience stores, and shopping malls, have an English-language option, making them easy to use for foreigners.
ATMs in Convenience Stores: Major convenience store chains such as CU, 7-Eleven, and GS25 have ATMs that often accept foreign cards and are available 24/7.
International-Friendly ATMs: Some ATMs, particularly those located in major tourist areas or banks, are specifically marked as accepting international cards. These machines allow you to withdraw cash using a Visa, Mastercard, or Cirrus card.

Be mindful that not all ATMs operate 24 hours, especially in rural areas, so plan accordingly.

4. Credit and Debit Cards: Widely Accepted but with Caveats

Credit and debit cards are widely accepted in South Korea, especially in major cities like Seoul, Busan, and Incheon. The most commonly accepted cards are Visa, Mastercard, and American Express. However, there are a few things to keep in mind when using your card in Korea.

Where Credit Cards Are Accepted

Hotels and Restaurants: Most hotels, restaurants, and cafes in tourist areas will accept credit cards. High-end restaurants and large chain establishments will always take cards, but smaller businesses may have a cash preference.
Department Stores and Malls: Korea’s shopping malls and department stores, such as Lotte, Hyundai, and Shinsegae, all accept credit cards. You can shop with ease using your card in these locations.
Transportation: Many taxis now accept credit card payments, and if you use ride-hailing apps like KakaoTaxi, you can link your credit card for seamless payment.
Supermarkets and Convenience Stores: Major supermarket chains like E-mart and Homeplus, along with convenience stores like CU and GS25, all accept credit cards.

Fees and Precautions

Foreign Transaction Fees: When using a foreign credit card in Korea, you may be subject to foreign transaction fees, which range from 1% to 3% depending on your card issuer. Check with your bank or credit card provider before traveling.
Card Acceptance Limitations: Some smaller businesses, particularly in rural areas or traditional markets, may not accept foreign credit cards. Always carry a backup cash option.
Contactless Payments: In many stores, particularly in major cities, contactless payments (like Apple Pay or Samsung Pay) are accepted, making it easier and faster to pay.

5. Digital Payment Methods: Korea’s Move Towards a Cashless Society

Korea is known for its digital innovations, and it’s rapidly moving towards becoming a cashless society. For tourists, this means there are several easy-to-use mobile payment options that can make transactions more seamless.

T-money Card

The T-money card is one of the most convenient payment methods for tourists. It’s a rechargeable smart card that can be used on public transportation (subways, buses, and taxis), as well as for small purchases at convenience stores and vending machines. You can easily purchase a T-money card at subway stations or convenience stores and top it up as needed.

Where to Use It: Subways, buses, taxis, convenience stores, and some cafes and fast-food chains.
How to Recharge: Recharge your T-money card at subway stations, convenience stores, or even some ATM machines.

KakaoPay and NaverPay

For tourists with Korean bank accounts or long-term stays, KakaoPay and NaverPay are popular mobile payment systems. These platforms are tied to mobile apps, making it possible to pay for goods and services using your smartphone.

KakaoPay: Linked to KakaoTalk, Korea’s most popular messaging app, KakaoPay can be used for shopping, taxis, and even utility bills.
NaverPay: This payment service is linked to Naver, Korea’s leading search engine. You can use NaverPay to make online and in-store purchases with participating retailers.

Samsung Pay

For tourists with Samsung smartphones, Samsung Pay is an incredibly convenient option, as it’s accepted in almost all places where credit cards are used. Samsung Pay works through both NFC (Near Field Communication) and MST (Magnetic Secure Transmission), allowing it to be used even at traditional card-swiping terminals.

Conclusion

Understanding South Korea’s currency and payment methods will greatly enhance your experience as a traveler. Whether you’re shopping in Seoul’s luxury malls, exploring traditional markets, or dining in local eateries, having a mix of cash, credit cards, and digital payment options will ensure smooth transactions throughout your trip. By following these tips, you’ll be able to navigate South Korea’s payment landscape with ease, enjoying all that this modern yet culturally rich country has to offer.