A Foreigner's Guide to the Korean Won: Navigating Currency and Payments in Korea

When I first arrived in South Korea, I was armed with a backpack and a vague understanding of the Korean Won. I knew the exchange rate, but the actual practice of paying for things, from street food to subway tickets, felt like a journey into the unknown. Would my card work everywhere? How much cash should I carry? I learned through a series of small, sometimes embarrassing, trial-and-error moments that navigating Korea's unique payment culture requires a little insider knowledge.

This guide is for anyone heading to Korea who wants to avoid my early confusion. I will walk you through everything you need to know about the Korean Won, from its denominations to the country's love affair with credit cards. I will also share my personal experiences and a wealth of practical tips to ensure your financial transactions in Korea are as smooth as possible.

1. Understanding the Korean Won: The Basics of Currency

The official currency of the Republic of Korea is theKorean Won (KRW). It is often represented by the symbol₩. I remember being struck by the sheer number of zeros on the banknotes when I first got my hands on them. A ₩10,000 bill looked like a million dollars to my foreign eyes, but it was just the standard note.

1-1. Banknotes: From ₩1,000 to ₩50,000

₩1,000 (blue):This is the smallest banknote. It features a portrait of Yi Hwang, a prominent Joseon Dynasty scholar. I used these for quick purchases like bottled water or a single item at a convenience store.
₩5,000 (red):The next step up, featuring the portrait of Yi I, another renowned scholar. I found this note very useful for small meals or a few items at the local market.
₩10,000 (green):This is the most commonly used banknote and features King Sejong the Great, the inventor of the Korean alphabet, Hangul. I quickly learned to recognize this bill as the workhorse of my wallet.
₩50,000 (yellow):The highest denomination, with a portrait of Shin Saimdang, a famous artist and mother of Yi I. I rarely carried these unless I was paying for a big-ticket item or a meal for a large group.

1-2. Coins: Small Change for Small Purchases

₩10, ₩50, ₩100, ₩500:The coins are useful for public phones (though they are now rare) and vending machines. I found the ₩100 and ₩500 coins to be the most common. I used them for laundry machines at my guesthouse and for small purchases at traditional markets.

2. Your Most Important Tool: The Credit Card

My biggest takeaway from my time in Korea was this:Korea is a card-centric society.In my home country, cash is king for small transactions, but in Korea, even street vendors and small shops prefer card payments. I was genuinely surprised when a small convenience store transaction of just a few hundred won could be paid for with a card without a single glance of disapproval.

2-1. Which Cards Work?

Visa, Mastercard, AMEX:Major international credit and debit cards from Visa, Mastercard, and American Express are accepted almost everywhere. I used my foreign Visa credit card for nearly 90% of my purchases with no issues.
Tap-to-Pay:Most modern card readers in Korea support contactless payment. I found this to be incredibly convenient, especially when paying for coffee or groceries.

2-2. The Power of Mobile Payments

Samsung Pay and Apple Pay:These services are widely used in Korea. If your phone and card are compatible, you can use them almost anywhere a regular card would be accepted. I saw many locals just tapping their phones to pay, and it looked so seamless.

3. Cash vs. Card: Where and When to Use Each

While cards are dominant, cash still has its place. Understanding the balance between the two is key to a hassle-free trip.

3-1. When to Use Cash

Small Markets:At local markets, some small vendors may prefer cash, as it helps them avoid card transaction fees. I remember buying some snacks at a market and the vendor giving me a small discount for paying with cash.
Street Food Vendors:Many street food stalls operate on a cash-only basis. The delicious tteokbokki and odeng I ate were often paid for with a mix of ₩1,000 and ₩5,000 notes.
Taxis:While most taxis accept cards, having some cash on hand is a good idea for short trips, especially late at night.
Rural Areas:If you plan on traveling to more remote or rural areas, it is a good idea to carry some cash, as card readers might not be as common.

3-2. When to Use a Card

Restaurants and Cafes:Virtually all dining establishments, from tiny cafes to high-end restaurants, accept cards.
Shopping:Department stores, clothing shops, and supermarkets all accept cards without question.
Public Transportation:You can use a credit card to purchase a T-money card or to recharge it. This is a game-changer for navigating the subway and bus systems.

4. T-Money Card: Your Best Friend for Public Transit

TheT-money cardis an essential tool for any traveler in Korea. It is a rechargeable smart card that can be used to pay for subways, buses, and even taxis. I bought mine at a convenience store in the subway station on my first day, and it completely changed how I got around.

4-1. How to Use and Recharge

Purchase:T-money cards can be bought at convenience stores like 7-Eleven, CU, and GS25, or at ticket machines in subway stations.
Recharge:You can recharge the card at the same places. I usually did this at the subway station's self-service machines using my credit card. It was a very simple process.
Other Uses:The T-money card can also be used for small purchases at many convenience stores. I found this to be incredibly handy for buying a drink or a snack on the go.

5. My Personal Money Management Story

When I first arrived, I exchanged a large sum of cash at the airport, thinking that was the safest option. My wallet felt uncomfortably thick, and I was constantly worried about losing it. After a week, I realized how unnecessary all that cash was. My card worked almost everywhere, and when it didn't, I could easily find an ATM to withdraw some cash.

I quickly changed my strategy. I would keep about ₩50,000 in cash for unexpected expenses and small vendors, and rely on my credit card for everything else. I also kept a small amount of cash in my backpack as an emergency fund, just in case. This approach gave me peace of mind and made my daily transactions much more efficient. I would still occasionally visit a local market to use my cash and immerse myself in the local culture, which was a very rewarding experience.

6. Important Tips and Information

ATMs:Most ATMs in Korea accept international cards, but a few only work with Korean-issued cards. It's a good idea to look for ATMs labeled "Global ATM" or located inside banks like KEB Hana Bank or Woori Bank. I once tried to use an ATM in a small, obscure shop and it didn't work, so I learned to stick to the big-name banks.
Exchange Rates:The exchange rates at airports are generally not the best. I found better rates at local banks in major cities.
Currency Conversion:When paying with a credit card, the terminal may ask if you want to pay in KRW or your home currency.Always choose to pay in KRW.The exchange rate offered by the local bank is almost always better than the dynamic currency conversion offered by the merchant. I made the mistake of choosing my home currency once and ended up paying a higher price.
Lost or Stolen Cards:If your card is lost or stolen, report it to your bank immediately. Most Korean banks have English-speaking staff who can assist you.

Conclusion

Navigating the financial landscape in Korea is far from intimidating once you understand the system. The country's advanced payment infrastructure means that a credit card will be your most reliable tool. While it's always smart to have a small amount of cash on hand, you can confidently travel and shop knowing that your card will be accepted almost everywhere. With a T-money card for transit and these tips in mind, you will be well-prepared to enjoy everything Korea has to offer without any financial worries.

FAQ (Frequently Asked Questions)

Q1: Do I need to carry cash in Korea?

A1: Yes, it's a good idea to carry a small amount of cash for street food vendors, small market stalls, and some taxis. About ₩50,000 to ₩100,000 should be enough for a day or two.

Q2: Are foreign credit cards accepted everywhere? A2: Almost everywhere. Major credit cards like Visa, Mastercard, and AMEX are widely accepted at restaurants, department stores, and most shops.

Q3: Can I use my phone for payments in Korea? A3: Yes, if your phone supports Samsung Pay or Apple Pay and your bank card is compatible with those services, you can use them in most places.

Q4: How do I get a T-money card? A4: You can buy and recharge a T-money card at any convenience store (7-Eleven, CU, GS25) or at ticket machines in subway stations.

Q5: Can I use a credit card to pay for a taxi? A5: Yes, most taxis in Korea have card terminals. However, it's still good practice to have cash for short rides or in rural areas.

Q6: What is the best way to get Korean Won? A6: You can exchange currency at your home bank before you leave, at the airport in Korea, or at local banks in major cities. Local banks usually offer better rates than the airport.

Q7: Do I need to tip in Korea? A7: No, tipping is not customary in Korea. The service charge is usually included in the price.

Q8: What are the different denominations of Korean Won? A8: The banknotes are ₩1,000, ₩5,000, ₩10,000, and ₩50,000. The coins are ₩10, ₩50, ₩100, and ₩500.

Q9: Why do I see so many zeros on the banknotes? A9: The high number of zeros is due to the value of the Korean Won relative to other major currencies. Don't be alarmed; ₩10,000 is a very common and useful bill.

Q10: What is the most important financial tip for my trip? A10: Always have a small amount of cash for emergencies and use your credit card for most transactions. When paying with a card, always choose to pay in Korean Won (KRW).