What Is South Korea Money? A Comprehensive Guide

South Korea money is the Korean Won (KRW), the official currency of South Korea, and at money-central.com we are here to give you all the insights you need. Understanding the Korean Won is essential for anyone planning a trip to South Korea or conducting business there, so let’s dive in.

To help you better understand, we’ll cover everything from the history of the Won to practical tips for currency exchange and using money in South Korea. Let us help you gain financial literacy and confidently manage your funds in the Land of the Morning Calm with our financial guidance!

Here’s what we’ll cover:

Understanding the Basics of South Korea Money
A Brief History of the Korean Won
Denominations of the Korean Won
How to Identify Genuine Korean Won Banknotes
Currency Exchange: Where to Get the Best Rates
Using ATMs in South Korea
Credit Cards and Digital Payments in South Korea
Tipping Culture in South Korea
Tax Refunds for Tourists in South Korea
Managing Your Money While Traveling in South Korea
The Impact of the South Korean Economy on the Won
Investing in Korean Won: Opportunities and Risks
The Future of Money in South Korea
Common Scams and How to Avoid Them
Frequently Asked Questions (FAQs) About South Korea Money

1. Understanding the Basics of South Korea Money

What Is South Korea Money? The official currency is the Korean Won (KRW), symbolized as ₩. Understanding the basics of the Korean Won is crucial for anyone planning a trip to South Korea or engaging in financial transactions there.

The Korean Won is the sole legal tender in South Korea, used for all transactions, from purchasing goods and services to paying taxes. It is issued by the Bank of Korea, the central bank of South Korea, which is responsible for maintaining its stability and value. The Korean Won is available in both banknotes and coins, each with distinct denominations and designs.

The value of the Korean Won can fluctuate based on various economic factors. According to research from New York University’s Stern School of Business, in July 2025, currency values are significantly affected by interest rates, inflation, and the overall economic performance of a country. Understanding these factors can help you make informed decisions about when and how to exchange currency.

2. A Brief History of the Korean Won

What is the historical context of South Korea money? The Korean Won has a rich history, dating back to the late 19th century. Its evolution reflects the economic and political changes that South Korea has undergone.

The first Korean Won was introduced in 1902, replacing the Korean Yang. This initial Won was pegged to the Japanese Yen during the period of Japanese rule. After World War II, South Korea introduced a new Won in 1945, which was later replaced by the Hwan in 1953 due to hyperinflation.

In 1962, the current Korean Won was reintroduced at a rate of 1 Won = 10 Hwan. This reintroduction aimed to stabilize the currency and support economic growth. Since then, the Won has undergone several revaluations and adjustments to reflect South Korea’s economic development.

The design of Korean banknotes and coins has also evolved, reflecting South Korea’s cultural heritage and national identity. Historical figures, landmarks, and symbols of Korean culture are commonly featured on the currency.

3. Denominations of the Korean Won

What are the different denominations of South Korea money? The Korean Won comes in various denominations of both banknotes and coins, each designed to facilitate different types of transactions.

The banknotes are available in the following denominations:

1,000 Won (천 원)
5,000 Won (오천 원)
10,000 Won (만 원)
50,000 Won (오만 원)

The coins are available in the following denominations:

1 Won (일 원) – rarely used
5 Won (오 원) – rarely used
10 Won (십 원)
50 Won (오십 원)
100 Won (백 원)
500 Won (오백 원)

Understanding the different denominations is essential for everyday transactions in South Korea. For example, smaller denominations like 1,000 Won and 5,000 Won are commonly used for smaller purchases, while larger denominations like 10,000 Won and 50,000 Won are used for larger transactions.

4. How to Identify Genuine Korean Won Banknotes

How can you tell if South Korea money is real? Identifying genuine Korean Won banknotes is important to avoid counterfeit currency. Here are some key features to look for:

Watermarks: Genuine banknotes have watermarks that are visible when held up to the light.
Security Threads: Look for security threads embedded in the paper, which should be visible when held up to the light.
Holograms: Many banknotes have holographic images that change when tilted.
Intaglio Printing: Feel for raised printing on certain parts of the banknote, which is difficult to replicate.
Microprinting: Use a magnifying glass to check for microprinted text, which is difficult to counterfeit.
Color-Shifting Ink: Some banknotes use color-shifting ink that changes color when viewed from different angles.

If you suspect a banknote is counterfeit, compare it to a genuine note and check for these security features. If you are still unsure, you can consult with a bank or currency exchange professional.

5. Currency Exchange: Where to Get the Best Rates

Where should you exchange money to get South Korea money? Finding the best currency exchange rates is crucial for maximizing your money when traveling to South Korea. Here are some tips on where to exchange currency:

Banks: Banks typically offer competitive exchange rates and lower fees compared to other options.
Currency Exchange Booths: Government-certified currency exchange booths are a good option, especially outside of regular banking hours.
Airports: While convenient, airports often have the worst exchange rates and highest fees.
Hotels: Hotels usually offer less favorable exchange rates compared to banks and currency exchange booths.
ATMs: Withdrawing cash from ATMs can be a good option, but be aware of potential fees from your bank and the ATM operator.

To get the best rates, compare exchange rates from different sources and avoid exchanging large amounts of money at airports or hotels. Also, consider using a credit card for purchases when possible, as they often offer competitive exchange rates.

6. Using ATMs in South Korea

Are ATMs a good way to get South Korea money? Using ATMs in South Korea is a convenient way to access cash. ATMs are widely available, especially in urban areas, and many accept international cards.

Availability: ATMs are located in banks, convenience stores, subway stations, and other public places.
International Cards: Look for ATMs with the “Global ATM” sign or the logo of major international networks like Visa or Mastercard.
Fees: Be aware of potential fees from your bank and the ATM operator. Check with your bank about international transaction fees and ATM withdrawal fees.
Language Options: Most ATMs offer foreign language services, including English, Chinese, and Japanese.
Operating Hours: ATMs typically operate until 11 PM, but many are open 24 hours a day.

When using ATMs, be cautious of your surroundings and protect your PIN. Also, keep track of your withdrawals and check your bank statements regularly to ensure there are no unauthorized transactions.

7. Credit Cards and Digital Payments in South Korea

Can you use credit cards to pay for things with South Korea money? Credit cards and digital payments are widely accepted in South Korea, especially in major cities and tourist areas.

Acceptance: Major credit cards like Visa, Mastercard, and American Express are accepted in most stores, restaurants, and hotels.
Digital Payment Systems: South Korea has a well-developed digital payment infrastructure, with popular services like Samsung Pay, Kakao Pay, and Naver Pay.
Benefits: Using credit cards can offer benefits such as rewards points, travel insurance, and fraud protection.
Fees: Be aware of potential foreign transaction fees charged by your credit card issuer.

While credit cards are widely accepted, it’s still a good idea to carry some cash for smaller establishments, street vendors, and rural areas where credit card acceptance may be limited.

8. Tipping Culture in South Korea

Is tipping part of South Korea money culture? Tipping is not a common practice in South Korea. Service personnel do not expect tips, and it is generally not necessary to tip in restaurants, taxis, or hotels.

In some upscale establishments, a 10% service charge may be added to the bill, in addition to the 10% VAT. In these cases, no additional tip is required. While tipping is not expected, it is always appreciated if you want to show your gratitude for exceptional service. However, it is not necessary and will not be expected by service personnel.

9. Tax Refunds for Tourists in South Korea

As a tourist, are you eligible for a tax refund when using South Korea money? Tourists in South Korea may be eligible for a tax refund on purchases made at stores displaying the “Tax Free” sign. The Value Added Tax (VAT) in South Korea is 10%, and tourists can get a refund on purchases greater than 30,000 Won.

To receive a tax refund, follow these steps:

Purchase: Make purchases of at least 30,000 Won at stores displaying the “Tax Free” sign.
Refund Check: Show your passport and ask for a refund check when paying.
Customs: Present your passport, refund check, receipt, and unopened merchandise at airport customs when leaving the country.
Refund: Receive your cash, check, or credit card refund at the refund counter located near the departure gates.

Make sure to keep all receipts and refund checks organized, and allow enough time at the airport to process your tax refund before your flight.

10. Managing Your Money While Traveling in South Korea

What is the best way to manage South Korea money when visiting? Managing your money effectively while traveling in South Korea can help you stay within your budget and avoid financial stress. Here are some tips:

Budgeting: Create a budget before your trip and track your expenses.
Exchange Rates: Monitor exchange rates and exchange currency when rates are favorable.
Cash vs. Credit: Use a combination of cash and credit cards for different types of purchases.
ATM Withdrawals: Limit ATM withdrawals to avoid excessive fees.
Emergency Funds: Have an emergency fund for unexpected expenses.
Financial Planning: Consider a financial advisor who can help you plan before your travel.
Mobile Apps: Use mobile apps to track your expenses and manage your budget.

By planning ahead and managing your money wisely, you can enjoy your trip to South Korea without worrying about financial issues.

11. The Impact of the South Korean Economy on the Won

How does South Korea’s economy affect its money? The South Korean economy has a significant impact on the value of the Korean Won. Economic factors such as GDP growth, inflation, interest rates, and trade balances can all influence the currency’s strength.

GDP Growth: Strong economic growth typically leads to a stronger Won.
Inflation: High inflation can weaken the Won, as it reduces the purchasing power of the currency.
Interest Rates: Higher interest rates can attract foreign investment, increasing demand for the Won and strengthening its value.
Trade Balances: A trade surplus (exporting more than importing) can strengthen the Won, while a trade deficit can weaken it.
Global Economic Conditions: Global economic events, such as changes in commodity prices or geopolitical tensions, can also impact the Won.

Understanding these economic factors can help you anticipate fluctuations in the value of the Korean Won and make informed decisions about currency exchange and investments.

12. Investing in Korean Won: Opportunities and Risks

Is it smart to invest in South Korea money? Investing in Korean Won can offer potential opportunities, but it also involves risks. Here are some factors to consider:

Currency Fluctuations: The value of the Won can fluctuate based on economic and political factors, which can impact the return on your investment.
Interest Rates: Interest rates in South Korea can affect the attractiveness of Won-denominated investments.
Economic Stability: South Korea has a stable and developed economy, which can provide a degree of security for investments.
Diversification: Investing in Korean Won can diversify your investment portfolio and reduce overall risk.
Geopolitical Risks: Geopolitical tensions in the region can create uncertainty and impact the value of the Won.

Before investing in Korean Won, consult with a financial advisor and carefully consider your investment goals, risk tolerance, and the potential risks and rewards.

13. The Future of Money in South Korea

What’s next for South Korea money? The future of money in South Korea is likely to be shaped by technological advancements and changing consumer preferences. Here are some trends to watch:

Digital Payments: The use of digital payment systems like Samsung Pay, Kakao Pay, and Naver Pay is expected to continue to grow.
Cryptocurrencies: While cryptocurrencies are not yet widely used in South Korea, there is growing interest in their potential.
Central Bank Digital Currency (CBDC): The Bank of Korea is exploring the possibility of issuing a CBDC, which could transform the financial landscape.
Cashless Society: South Korea is moving towards a cashless society, with increasing adoption of digital payment methods.
Fintech Innovation: Fintech companies are developing new and innovative financial products and services that could disrupt traditional banking models.

These trends suggest that the future of money in South Korea will be increasingly digital, convenient, and efficient.

14. Common Scams and How to Avoid Them

Are there common scams involving South Korea money? Like any country, South Korea has its share of scams targeting tourists and unsuspecting individuals. Here are some common scams and how to avoid them:

Counterfeit Currency: Be cautious when accepting cash, and check for security features to avoid counterfeit banknotes.
Fake Tour Guides: Only hire tour guides from reputable companies or official tourist information centers.
Overcharging: Check prices before making purchases, and be wary of vendors who try to overcharge you.
Credit Card Fraud: Protect your credit card information, and be cautious when using ATMs or making online purchases.
Phishing Scams: Be wary of suspicious emails or phone calls asking for personal or financial information.

By being aware of these common scams and taking precautions, you can protect yourself from financial loss and enjoy a safe and hassle-free trip to South Korea.

15. Frequently Asked Questions (FAQs) About South Korea Money

Here are some frequently asked questions about South Korea money:

What is the currency of South Korea?
- The currency of South Korea is the Korean Won (KRW).
What are the denominations of Korean Won banknotes?
- The banknotes are available in 1,000, 5,000, 10,000, and 50,000 Won denominations.
What are the denominations of Korean Won coins?
- The coins are available in 1, 5, 10, 50, 100, and 500 Won denominations.
Where can I exchange currency in South Korea?
- You can exchange currency at banks, currency exchange booths, and some hotels.
Are credit cards widely accepted in South Korea?
- Yes, major credit cards are widely accepted, especially in major cities and tourist areas.
Is tipping customary in South Korea?
- No, tipping is not customary in South Korea.
Can tourists get a tax refund in South Korea?
- Yes, tourists may be eligible for a tax refund on purchases made at stores displaying the “Tax Free” sign.
How can I avoid scams involving Korean Won?
- Be cautious when accepting cash, check for security features, and be wary of suspicious offers.
What is the role of the Bank of Korea?
- The Bank of Korea is the central bank of South Korea, responsible for issuing and managing the Korean Won.
How does the South Korean economy impact the value of the Won?
- Economic factors such as GDP growth, inflation, and interest rates can all influence the value of the Won.

Understanding the Korean Won is essential for anyone planning a trip to South Korea or conducting business there. By following the tips and advice in this guide, you can manage your money effectively and enjoy a successful experience in the Land of the Morning Calm.

Are you looking for more information and advice about managing your finances? Visit money-central.com today to explore our articles, tools, and resources. Whether you’re planning a trip to South Korea or seeking to improve your financial literacy, we’re here to help you achieve your goals. Contact us at Address: 44 West Fourth Street, New York, NY 10012, United States. Phone: +1 (212) 998-0000, or visit our website money-central.com.

South Korean Won Banknotes