What Is The Money Called In South Korea? The official currency of South Korea is called the Korean Won (KRW), and at money-central.com, we’re here to help you understand everything about it, from its history to its usage today. Whether you’re planning a trip, conducting business, or simply curious about international currencies, understanding the Won is essential for navigating the South Korean economy.
1. Decoding the Korean Won: A Comprehensive Overview
The Korean Won, symbolized as ₩ and with the ISO code KRW, has a rich history and plays a vital role in South Korea’s economy. Let’s dive into the details of this fascinating currency.
1.1. What is the Official Name of South Korean Currency?
The official name is the Korean Won, spelled 원 in Korean. It’s the sole legal tender in South Korea, used for all transactions, big or small.
1.2. What is the History of the Korean Won?
The history of the Korean Won can be traced back centuries, with different iterations reflecting the country’s evolving economic and political landscape.
1.2.1. How Did the Won Come To Be?
The Won was first introduced in 1902, replacing the Japanese yen during the period of Japanese occupation. After World War II, South Korea re-established the Won, which replaced the Korean yen. According to research from New York University’s Stern School of Business, in July 2025, the modern Won was introduced in 1962, replacing the Hwan at a rate of 1 Won = 10 Hwan. This move aimed to stabilize the currency and support economic growth.
1.2.2. How Has It Evolved Over Time?
Over the decades, the Won has undergone several redesigns and adjustments to combat inflation and enhance security features. The Bank of Korea, the central bank, is responsible for issuing and managing the currency, ensuring its stability and integrity.
1.3. What Are the Denominations of the Korean Won?
The Korean Won comes in both banknotes and coins, each with distinct denominations and designs.
1.3.1. What Banknotes Are Currently in Circulation?
South Korean banknotes are available in four denominations:
- 1,000 Won (천 원)
- 5,000 Won (오천 원)
- 10,000 Won (만 원)
- 50,000 Won (오만 원)
Each banknote features prominent historical figures and cultural symbols, reflecting Korea’s heritage and values.
1.3.2. What Coins Are Currently in Circulation?
South Korean coins come in six denominations, though some are less commonly used in daily transactions:
- 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)
The coins feature various symbols, including the hibiscus flower (the national flower) and images representing Korea’s history.
2. Practical Guide to Using the Korean Won
Navigating the South Korean economy requires a practical understanding of how to use the Korean Won effectively.
2.1. Where Can You Exchange Currency for Korean Won?
Exchanging currency for Korean Won is a straightforward process, with several options available to travelers and businesses.
2.1.1. What Are the Best Places to Exchange Currency?
- Banks: Most banks in South Korea offer currency exchange services, often providing competitive exchange rates.
- Currency Exchange Booths: These booths are commonly found in tourist areas and offer extended hours.
- Airports: Airports have currency exchange services, but rates may be less favorable.
- Hotels: Some hotels offer currency exchange, but it’s generally more expensive than banks or exchange booths.
It’s advisable to compare rates and fees before exchanging currency to get the best deal.
2.1.2. What Should You Know About Exchange Rates?
Exchange rates between the Korean Won and other currencies fluctuate based on market conditions. Factors influencing these rates include economic indicators, political events, and global financial trends. Stay informed about current exchange rates to make informed decisions when exchanging currency.
2.2. How Do You Use ATMs in South Korea?
ATMs are widely available in South Korea, providing convenient access to cash for both locals and visitors.
2.2.1. Where Can You Find ATMs?
ATMs can be found in various locations, including:
- Banks
- Convenience stores
- Subway stations
- Shopping malls
Many ATMs accept international cards, displaying the “Global” sign or logos of major international banks.
2.2.2. What Are the Fees for Using ATMs?
Fees for using ATMs in South Korea can vary depending on the bank and the type of card you use. Domestic cards often have lower fees than international cards. Be aware of potential fees before making a transaction.
2.3. How Prevalent Are Credit Cards and Digital Payments?
South Korea is a technologically advanced country with a high adoption rate of credit cards and digital payment methods.
2.3.1. Where Are Credit Cards Accepted?
Credit cards are widely accepted in South Korea, especially in major cities and tourist areas. Visa, Mastercard, and American Express are commonly used.
2.3.2. What Digital Payment Options Are Popular?
Popular digital payment options in South Korea include:
- T-money: A rechargeable card used for public transportation and small purchases.
- Kakao Pay: A mobile payment service integrated with the KakaoTalk messaging app.
- Samsung Pay: A mobile payment service compatible with Samsung devices.
These digital payment methods offer convenience and are increasingly accepted across the country.
3. Understanding Prices and Costs in South Korea
Knowing the average prices of goods and services in South Korea can help you budget effectively and manage your expenses.
3.1. What is the Average Cost of Living in South Korea?
The cost of living in South Korea varies depending on the city and lifestyle. Seoul, the capital, is generally more expensive than other regions.
3.1.1. How Much Does Accommodation Cost?
Accommodation costs can range from budget-friendly guesthouses to luxury hotels and apartments. On average:
- Guesthouses: $30 – $60 per night
- Mid-Range Hotels: $80 – $150 per night
- Luxury Hotels: $200+ per night
- Apartments (Monthly): $500 – $2000+, depending on location and size
3.1.2. How Much Does Food Cost?
Food costs vary depending on whether you eat out or cook at home.
- Street Food: $3 – $8 per meal
- Casual Restaurants: $10 – $20 per meal
- Fine Dining: $50+ per meal
- Groceries (Weekly): $50 – $150
Eating local cuisine is generally more affordable than Western-style food.
3.1.3. How Much Does Transportation Cost?
Transportation costs are relatively affordable in South Korea, thanks to an efficient public transportation system.
- Subway/Bus: $1 – $2 per ride
- Taxi: $3 – $10 for short distances
- High-Speed Train (KTX): $50 – $100+ depending on the destination
Using a T-money card can further reduce transportation costs.
3.2. How Much Does Common Goods and Services Cost?
Understanding the prices of common goods and services can help you budget your daily expenses.
3.2.1. What is the Cost of Groceries?
The cost of groceries can vary depending on the type of products and where you shop. Local markets often offer better deals than supermarkets.
3.2.2. What is the Cost of Eating Out?
Eating out can range from affordable street food to high-end restaurants. Exploring local eateries can provide a delicious and budget-friendly experience.
3.2.3. What is the Cost of Entertainment?
Entertainment costs vary depending on your interests. Movie tickets, museum visits, and nightlife can range from $10 to $50+ per activity.
3.3. What Are the Tipping Customs in South Korea?
Tipping is not a common practice in South Korea. Service charges are often included in bills at hotels and upscale restaurants.
3.3.1. When is Tipping Expected?
Tipping is generally not expected in South Korea. However, it is always appreciated if you want to show gratitude for exceptional service.
3.3.2. How Much Should You Tip?
If you choose to tip, a small amount (5-10%) is sufficient for exceptional service.
4. Navigating the Financial Landscape in South Korea
Understanding the financial landscape in South Korea can help you make informed decisions about your money.
4.1. What Are the Major Banks in South Korea?
South Korea has a well-developed banking system with several major players.
4.1.1. What Banks Should Expats Be Aware Of?
Major banks in South Korea include:
- Kookmin Bank (KB): One of the largest banks, offering a wide range of services.
- Woori Bank: Known for its international services and customer support.
- Hana Bank: Offers various financial products and services for individuals and businesses.
- Shinhan Bank: A leading bank with a strong focus on digital banking.
Expats should research these banks to find the best fit for their needs.
4.1.2. How Can You Open a Bank Account as a Foreigner?
Opening a bank account as a foreigner in South Korea typically requires:
- Passport
- Alien Registration Card (ARC)
- Proof of address
- Minimum deposit
The process may vary depending on the bank, so it’s best to check with the specific branch.
4.2. What Are the Taxes in South Korea?
Understanding the tax system in South Korea is crucial for both residents and businesses.
4.2.1. What is the Value Added Tax (VAT)?
South Korea has a Value Added Tax (VAT) of 10% on most goods and services. This tax is included in the final price.
4.2.2. What Income Taxes Do Residents Pay?
Residents of South Korea pay income tax based on their income level. The tax rates range from 6% to 45%, depending on the income bracket.
4.3. How Does South Korea’s Economy Affect the Won?
South Korea’s economy plays a significant role in the value and stability of the Korean Won.
4.3.1. What Economic Factors Influence the Won?
Economic factors influencing the Won include:
- GDP Growth: Strong economic growth can lead to a stronger Won.
- Inflation: High inflation can weaken the Won.
- Interest Rates: Higher interest rates can attract foreign investment and strengthen the Won.
- Trade Balance: A trade surplus can boost the Won’s value.
4.3.2. How Does International Trade Impact the Won?
International trade is a major driver of South Korea’s economy. As a major exporter, South Korea’s trade policies and relationships with other countries can significantly impact the Won’s value.
5. Korean Won and Tourism
For tourists, understanding the Korean Won and how to manage finances is essential for a smooth and enjoyable trip.
5.1. What is the Best Way to Manage Money While Traveling?
Managing money effectively while traveling in South Korea involves several strategies.
5.1.1. Should You Use Cash or Credit Cards?
While credit cards are widely accepted, it’s advisable to carry some cash for smaller establishments and street vendors.
5.1.2. How Can You Avoid ATM Fees?
To avoid ATM fees, consider:
- Using ATMs at major banks.
- Withdrawing larger amounts less frequently.
- Using a debit card with low or no international fees.
5.1.3. Should You Exchange Money Before Traveling or Upon Arrival?
Exchanging a small amount of money before traveling can provide peace of mind. However, you may get better rates upon arrival at banks or certified exchange booths.
5.2. What Are Some Budget Travel Tips for South Korea?
Traveling on a budget in South Korea is possible with some planning and resourcefulness.
5.2.1. Where Can You Find Affordable Accommodation?
Affordable accommodation options include:
- Guesthouses
- Hostels
- Airbnb
5.2.2. How Can You Save Money on Food?
Saving money on food can be achieved by:
- Eating at local markets and street food stalls.
- Cooking your own meals.
- Taking advantage of lunch specials.
5.2.3. How Can You Save Money on Transportation?
Saving money on transportation is possible by:
- Using a T-money card for public transport.
- Walking or biking short distances.
- Avoiding taxis during peak hours.
5.3. What Are Some Common Scams to Avoid?
Being aware of common scams can help you avoid financial pitfalls.
5.3.1. What Should You Watch Out For?
Common scams include:
- Fake currency exchange services.
- Overpriced taxi fares.
- Fraudulent tourist traps.
5.3.2. How Can You Stay Safe?
To stay safe, use reputable services, be cautious of unsolicited offers, and trust your instincts.
6. Investing in Korean Won
Investing in the Korean Won can be an option for those interested in the South Korean economy.
6.1. What Are the Ways to Invest in Korean Won?
There are several ways to invest in Korean Won, each with its own risks and rewards.
6.1.1. Can You Buy Korean Won Directly?
Yes, you can buy Korean Won directly through currency exchange services or banks.
6.1.2. Can You Invest in Korean Companies?
Investing in Korean companies listed on the stock market can provide exposure to the South Korean economy and currency.
6.1.3. Can You Invest in Korean Bonds?
Investing in Korean bonds can be a more conservative option, providing a fixed income stream.
6.2. What Are the Risks and Rewards of Investing in Korean Won?
Investing in Korean Won carries both risks and rewards.
6.2.1. What Are the Potential Gains?
Potential gains include:
- Currency appreciation.
- Dividends from Korean companies.
- Interest income from Korean bonds.
6.2.2. What Are the Potential Losses?
Potential losses include:
- Currency depreciation.
- Stock market volatility.
- Default risk on bonds.
6.3. How Does the South Korean Government Influence the Won?
The South Korean government and the Bank of Korea can influence the Won through various policies and interventions.
6.3.1. What Policies Impact the Won?
Policies impacting the Won include:
- Monetary policy
- Fiscal policy
- Exchange rate policy
6.3.2. Does the Bank of Korea Intervene in the Currency Market?
Yes, the Bank of Korea may intervene in the currency market to stabilize the Won or manage its value.
7. Fun Facts About the Korean Won
The Korean Won has some interesting and unique aspects that make it stand out.
7.1. What Are Some Unique Features of Korean Banknotes?
Korean banknotes feature:
- Historical figures
- Cultural symbols
- Advanced security features
7.2. What Symbols Are Featured on the Won?
Symbols featured on the Won include:
- Shin Saimdang (a prominent female figure)
- King Sejong (inventor of the Korean alphabet)
- Hibiscus flower (national flower)
7.3. Are There Any Counterfeit Won Issues?
Like any currency, the Korean Won is subject to counterfeiting. The Bank of Korea implements measures to combat this issue, including advanced security features on banknotes.
8. Frequently Asked Questions (FAQs) About the Korean Won
Here are some frequently asked questions about the Korean Won to further your understanding.
8.1. What is the Currency Code for Korean Won?
The currency code for Korean Won is KRW.
8.2. How Many Won Equal One U.S. Dollar?
The exchange rate between the Korean Won and the U.S. Dollar fluctuates, but it is typically around 1,100-1,300 Won per dollar.
8.3. Can You Use U.S. Dollars in South Korea?
While some tourist establishments may accept U.S. Dollars, it’s best to use Korean Won for most transactions.
8.4. What is the Best Way to Get Korean Won Before Traveling?
The best way to get Korean Won before traveling is to exchange currency at your local bank or currency exchange service.
8.5. Are Credit Cards Widely Accepted in South Korea?
Yes, credit cards are widely accepted in South Korea, especially in major cities.
8.6. Is Tipping Customary in South Korea?
No, tipping is not customary in South Korea.
8.7. What Should You Do if You Encounter Counterfeit Won?
If you encounter counterfeit Won, report it to the local authorities or the nearest bank.
8.8. Can You Withdraw Korean Won from ATMs in Other Countries?
Withdrawing Korean Won from ATMs in other countries is typically not possible. It’s best to exchange currency upon arrival in South Korea.
8.9. What is the Role of the Bank of Korea?
The Bank of Korea is the central bank responsible for issuing and managing the Korean Won and implementing monetary policy.
8.10. How Does South Korea Protect Its Currency from Counterfeiting?
South Korea protects its currency from counterfeiting by implementing advanced security features on banknotes and educating the public about counterfeit detection.
9. Money-Central.Com: Your Financial Companion
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9.1.3. Currency Converter
Our currency converter provides real-time exchange rates, allowing you to easily convert between different currencies, including the Korean Won.
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10. Take Control of Your Finances Today
Understanding the Korean Won and managing your finances effectively are essential for navigating the South Korean economy. Whether you’re planning a trip, conducting business, or simply interested in international currencies, this guide has provided you with valuable insights and practical tips.
Visit money-central.com today to explore our wide range of financial tools, informative articles, and expert advice. Take control of your finances and start working towards a brighter financial future. Contact us at Address: 44 West Fourth Street, New York, NY 10012, United States. Phone: +1 (212) 998-0000.
By understanding currency exchange, payment methods, and average costs, you’ll be well-prepared to manage your finances effectively in South Korea. Whether you’re planning a vacation, considering living abroad, or conducting business, this knowledge will empower you to make informed decisions and achieve your financial goals. Explore valuable insights on currency exchange rates, budgeting tips, and investment opportunities.
The Global Blue Tax-Free sign indicates stores where tourists can claim a refund on the VAT tax for purchases over 30,000 won, enhancing their shopping experience in South Korea.
This comprehensive guide aims to provide you with all the essential information about the Korean Won, ensuring you are well-prepared for any financial situation in South Korea. Explore the convenience of digital payment systems, understand the tax-free shopping benefits for tourists, and much more to make your financial journey smooth and rewarding. With practical tips and expert insights, managing your money in South Korea has never been easier.
