Navigating the financial landscape of a new country is crucial for any traveler. When visiting South Korea, understanding the local currency and money matters will greatly enhance your experience. This guide will provide you with essential information about South Korea money, from the won denominations to banking, currency exchange, tax-free shopping, and tipping etiquette.
Understanding the Korean Won (KRW)
The official currency of South Korea is the Won, denoted by the symbol ₩ and the currency code KRW. The Korean Won comes in various denominations of both paper bills and coins, each with its own distinct design and value. Familiarizing yourself with these denominations will make your daily transactions smoother and more convenient.
Banknotes of South Korea:
Korean banknotes are colorful and feature prominent historical figures and cultural motifs. They are available in four denominations:
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1,000 Won (천 원 – Cheon Won): The smallest denomination banknote, often used for smaller purchases.
Front of 1,000 Korean Won banknote
Back of 1,000 Korean Won banknote -
5,000 Won (오천 원 – Oh Cheon Won): A mid-range banknote, useful for everyday transactions and small purchases.
Front of 5,000 Korean Won banknote
Back of 5,000 Korean Won banknote -
10,000 Won (만 원 – Man Won): A commonly used banknote for larger purchases, dining, and transportation.
Front of 10,000 Korean Won banknote
Back of 10,000 Korean Won banknote -
50,000 Won (오만 원 – Oh Man Won): The highest denomination banknote, suitable for significant transactions or carrying larger amounts of money.
Front of 50,000 Korean Won banknote
Back of 50,000 Korean Won banknote
Coins of South Korea:
Korean coins are less frequently used in daily transactions compared to banknotes, but it’s still helpful to recognize them. Coins come in denominations of 1, 5, 10, 50, 100, and 500 won. However, the 1 and 5 won coins are rarely seen in circulation today.
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1 Won (일 원 – Il Won): Though officially currency, these coins are seldom used in daily transactions.
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10 Won (십 원 – Sip Won): You may occasionally encounter 10 won coins, often in older forms of payment or traditional markets.
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50 Won (오십 원 – Oh Sib Won): Less common in daily use, but still in circulation.
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100 Won (백 원 – Baek Won): A frequently used coin, especially in vending machines, smaller stores, and for bus fares.
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500 Won (오백 원 – Oh Baek Won): The highest value coin and very commonly used for various transactions, including public transportation and larger vending machines.
Banking and ATMs in South Korea
For tourists, banks are generally the most reliable places to exchange currency due to favorable exchange rates. Banks in South Korea typically operate from 9:00 AM to 4:00 PM on weekdays.
Automated Teller Machines (ATMs) are widely available throughout South Korea, not only at bank branches but also in subway stations and convenience stores. Most ATMs operate until 11:00 PM, and many are accessible 24 hours a day, offering convenience for cash withdrawals at any time. Convenience store ATMs, while readily accessible, may sometimes have slightly higher transaction fees compared to bank ATMs.
Look for ATMs displaying “Global” signs or logos of international networks like Visa, Mastercard, or Cirrus if you need to use an international card. These ATMs are designed to accept foreign cards and often provide multilingual services, including English, Chinese, and Japanese, making transactions easier for international visitors.
Currency Exchange Services
Beyond banks, you can find currency exchange booths, particularly in areas popular with tourists such as Myeongdong, Itaewon, and major hotel districts. Government-certified exchange booths are a safe alternative, especially for exchanges outside of regular banking hours. These certified booths are identified by a prominent “Certified” sign along with currency symbols, ensuring legitimate and regulated services. It is advisable to avoid uncertified or unofficial exchange services to minimize risks of unfavorable rates or counterfeit money.
Tax Refunds: Global Tax Free Shopping
Shopping in South Korea can be even more appealing thanks to the Tax-Free Shopping system. A 10% Value Added Tax (VAT) is included in the price of many goods. As a tourist, you are eligible for a VAT refund on purchases totaling more than 30,000 won at stores displaying the “Tax Free” shopping sign.
To claim your tax refund, follow these steps:
- Shop at Tax-Free Stores: Ensure the store displays a “Tax Free” sign.
- Minimum Purchase: Spend a minimum of 30,000 won in a single purchase.
- Request a Refund Check: Present your passport at the time of purchase and request a refund check.
- Customs at Departure: At the airport upon departure, present your passport, refund check, receipts, and the unopened goods to customs.
- Receive Your Refund: Collect your refund in cash, via check, or credited back to your card at the designated refund counter near your departure gate.
Tipping in South Korea
Tipping is not a customary practice in South Korea and is generally not expected. Service staff in most establishments, including restaurants and taxis, do not anticipate tips. However, it’s common for upscale restaurants and major hotels to automatically include a 10% service charge on your bill, in addition to the 10% VAT. While taxi drivers don’t expect tips, they will appreciate if you allow them to keep small changes as a gesture of goodwill.
Understanding these key aspects of South Korea money will help you manage your finances effectively and enjoy a smoother, more informed travel experience in this vibrant country.
