1. National Currency

Currency Name and Units

• Currency Name: South Korean Won (KRW)
• Symbol: ₩
• ISO Code: KRW
• Denominations:
  • Coins: ₩1, ₩5, ₩10, ₩50, ₩100, ₩500
  • Banknotes: ₩1,000, ₩5,000, ₩10,000, ₩50,000

Exchange Rates

• The exchange rate for KRW fluctuates daily. As of recent years, ₩1,000 is approximately equivalent to $0.75–$0.85 USD, but it’s advisable to check current rates before traveling.
• Currency exchange is available at banks, currency exchange booths, and airports. Rates at banks are generally more favorable than at airports.

Currency Tips

• Coins are widely used for small transactions, so it’s helpful to carry some.
• The ₩50,000 note is the highest denomination and is commonly used for larger transactions.

---

2. Payment Methods in South Korea

South Korea is a highly cashless society, with digital and card payments dominating the financial landscape. However, cash is still accepted in most places.

A. Cash

• Where to Use: Small businesses, traditional markets, street vendors, and rural areas may prefer cash.
• ATMs: Widely available in cities and towns. Look for machines with "Global ATM" or "Foreign Card" signs for international cards.
  • Languages: Most ATMs offer English, Chinese, and Japanese language options.
  • Fees: ATM withdrawal fees range from ₩3,000 to ₩5,000 for international cards, depending on the bank and machine.

B. Credit and Debit Cards

• Card Acceptance: Credit and debit cards are widely accepted in South Korea, including at restaurants, shops, taxis, and public transportation.
  • Visa, Mastercard, and UnionPay are the most commonly accepted international cards.
  • American Express and Discover are less widely accepted but can still be used in major establishments.
• Korean Cards: Locals often use domestic cards issued by Korean banks, which may offer additional benefits like discounts or loyalty points.
• Contactless Payments: Many businesses accept contactless payments via NFC-enabled cards.

C. Mobile Payment Systems

South Korea is a global leader in mobile payment technology. Popular mobile payment apps include:

• KakaoPay: Linked to the KakaoTalk messaging app, widely used for online and offline payments.
• Naver Pay: Integrated with Naver services, popular for e-commerce.
• Samsung Pay: Compatible with most card readers and widely used by locals.
• Apple Pay: Recently introduced in South Korea, but not as widely adopted as local options.
• T-Money Card: A prepaid transportation card that can also be used for small purchases at convenience stores and vending machines.

D. Bank Transfers

• Bank transfers are a common payment method for online shopping and peer-to-peer transactions.
• Transfers can be made via mobile banking apps, ATMs, or bank branches.
• South Korean banks often use a "virtual account" system for one-time payments, especially for e-commerce.

---

3. Regulations and Practical Considerations

Currency Exchange Regulations

• There is no limit to the amount of foreign currency you can bring into South Korea, but amounts exceeding $10,000 USD (or equivalent) must be declared at customs.
• Currency exchange is regulated by the government, and only licensed institutions (banks, exchange booths) are authorized to exchange money.

Banking for Foreigners

• Foreigners can open a bank account in South Korea with a valid Alien Registration Card (ARC) and passport.
• Popular banks for foreigners include KEB Hana Bank, Woori Bank, and Shinhan Bank, which offer English-language services.
• Some banks may require proof of residence or employment.

Tax Refunds for Tourists

• Tourists can claim VAT refunds on purchases over ₩30,000 at participating stores. Look for "Tax-Free" signs.
• Refunds can be processed at the airport or designated refund counters in major shopping areas.

Transaction Costs

• Card Fees: Some international cards may incur foreign transaction fees (typically 1–3%) when used in South Korea.
• ATM Fees: As mentioned earlier, fees for international withdrawals range from ₩3,000 to ₩5,000.
• Mobile Payments: Generally free for users, but some apps may charge fees for certain services like instant bank transfers.

---

4. General Costs and Budgeting

Cost of Living

• South Korea is moderately expensive compared to other Asian countries but cheaper than Japan or Singapore.
• Examples of Costs:
  • Meal at a local restaurant: ₩7,000–₩12,000
  • Coffee: ₩4,000–₩6,000
  • Public transportation (subway or bus): ₩1,250–₩1,500 per ride
  • Taxi fare: Starting at ₩3,800, with additional charges based on distance.

Tipping Culture

• Tipping is not customary in South Korea. Service charges are usually included in the bill, and leaving a tip may confuse locals.
• Exceptions: High-end hotels or international restaurants may accept tips, but it’s not expected.

---

5. Cultural Practices Related to Payments

• Cash Etiquette: When paying with cash, it’s polite to hand over money with both hands.
• Card Usage: When paying by card, you may be asked to insert the card yourself into the reader. Some establishments may also require a signature for larger transactions.
• Splitting Bills: It’s common for one person to pay the entire bill in social settings, with others taking turns to pay for subsequent meals or outings. Splitting bills at the table is less common but becoming more accepted among younger generations.

---

6. Tips for Visitors and Immigrants

• Carry a Mix of Payment Options: While cards and mobile payments are widely accepted, it’s a good idea to carry some cash for emergencies or small transactions.
• Download Payment Apps: If you plan to stay long-term, consider setting up a local mobile payment app like KakaoPay or T-Money for convenience.
• Check Card Compatibility: Ensure your international credit or debit card is compatible with South Korean payment systems. Notify your bank of your travel plans to avoid issues.
• Learn Basic Korean Phrases: While many cashiers speak basic English, knowing phrases like "카드로 결제할게요" (I’ll pay by card) or "현금으로 할게요" (I’ll pay in cash) can be helpful.

---

By understanding South Korea’s currency and payment systems, you’ll be well-prepared to handle financial transactions smoothly during your visit or stay. If you have further questions or need specific advice, feel free to ask!