Seoul

๐Ÿ’ฐ

Currency Denominations

Explanation of South Korean won denominations, including coins and bills, to help with everyday transactions.

Sections

Comprehensive Guide to Currency in Seoul, South Korea

Seoul, the bustling capital of South Korea, uses the South Korean Won (KRW) as its official currency. Understanding the currency system, exchange practices, and cultural nuances is essential for visitors and immigrants to navigate financial transactions smoothly. Below is a detailed guide to help you handle money effectively in Seoul.

1. Overview of South Korean Currency (KRW)

The South Korean Won (โ‚ฉ) is abbreviated as KRW and is issued by the Bank of Korea. The currency is available in both coins and banknotes, with distinct denominations.

Coins

  • โ‚ฉ1 Coin: Made of aluminum, silver in color. Rarely used in daily transactions.
  • โ‚ฉ5 Coin: Made of copper and zinc, gold in color. Also rarely used.
  • โ‚ฉ10 Coin: Made of brass or copper-plated aluminum, gold or bronze in color.
  • โ‚ฉ50 Coin: Made of cupronickel, silver in color.
  • โ‚ฉ100 Coin: Made of cupronickel, silver in color.
  • โ‚ฉ500 Coin: Made of cupronickel, silver in color.

Banknotes

  • โ‚ฉ1,000 Note: Blue in color, featuring Yi Hwang (a Confucian scholar) and the Dosan Seowon Confucian Academy.
  • โ‚ฉ5,000 Note: Red and orange in color, featuring Yi I (a Confucian scholar) and Ojukheon (a historic site).
  • โ‚ฉ10,000 Note: Green in color, featuring King Sejong the Great and the Korean celestial globe.
  • โ‚ฉ50,000 Note: Yellow in color, featuring Shin Saimdang (a prominent female artist and poet) and traditional Korean artwork.

Key Features

  • Banknotes are made of durable cotton paper and include advanced security features such as watermarks, holograms, and color-shifting ink to prevent counterfeiting.
  • Coins are lightweight and easy to carry, though smaller denominations (โ‚ฉ1 and โ‚ฉ5) are rarely used in modern transactions.

2. Exchange Rates and Currency Conversion

The exchange rate for the South Korean Won fluctuates daily based on global market conditions. As of October 2023, the approximate exchange rate is:

  • 1 USD โ‰ˆ 1,350 KRW
  • 1 EUR โ‰ˆ 1,450 KRW
  • 1 GBP โ‰ˆ 1,650 KRW

Tips for Monitoring Exchange Rates

  • Use reliable currency converter apps like XE or OANDA to check real-time rates.
  • Exchange rates are generally better in South Korea than in your home country, so consider exchanging money after arrival.

3. Tips for Exchanging Money in Seoul

Where to Exchange Money

  1. Banks:

    • Major banks like KEB Hana Bank, Shinhan Bank, and Woori Bank offer currency exchange services.
    • Banks typically provide competitive rates and are a safe option.
    • Operating hours are usually 9:00 AM to 4:00 PM on weekdays. Closed on weekends and public holidays.

  2. Currency Exchange Booths:

    • Found in popular tourist areas like Myeongdong, Itaewon, and Dongdaemun.
    • These booths often offer better rates than banks but may have limited currency options.
    • Look for booths with clear signage and transparent rate displays.

  3. Incheon International Airport:

    • Currency exchange counters are available in both Terminals 1 and 2.
    • Convenient but may offer slightly less favorable rates compared to city locations.

  4. ATMs:

    • Many ATMs in Seoul accept foreign cards and allow you to withdraw KRW directly.
    • Look for ATMs with "Global" or "International" signs, such as those operated by KEB Hana Bank or Citibank.
    • Be aware of withdrawal fees, which can range from โ‚ฉ3,000 to โ‚ฉ5,000 per transaction.

Places to Avoid

  • Avoid exchanging money at hotels, as they often have poor exchange rates.
  • Be cautious of unlicensed street vendors offering currency exchange, as they may engage in scams or provide counterfeit bills.

Documents Required

  • A valid passport is often required for currency exchange at banks and some exchange booths.

4. Cultural Practices and Etiquette Related to Currency

  1. Handling Money:

    • It is considered polite to use both hands when giving or receiving money, especially in formal settings.
    • Avoid crumpling or folding banknotes, as this may be seen as disrespectful.

  2. Tipping Culture:

    • Tipping is not customary in South Korea. Service charges are usually included in bills at restaurants, hotels, and taxis.
    • If you wish to show appreciation, small gifts or verbal thanks are more culturally appropriate.

  3. Cash vs. Card:

    • Credit and debit cards are widely accepted in Seoul, even for small transactions.
    • However, carrying some cash is advisable for street food vendors, traditional markets, and smaller establishments.

  4. Change Practices:

    • Coins are commonly used for giving change, so expect to receive coins for small denominations.
    • If you donโ€™t want to carry coins, consider rounding up your payment when possible.

5. Practical Considerations for Handling Money

Counterfeit Awareness

  • Counterfeit currency is rare in South Korea due to advanced security features on banknotes.
  • Always exchange money at reputable locations to avoid receiving fake bills.

Mobile Payment Options

  • South Korea is highly advanced in digital payments. Apps like KakaoPay, Naver Pay, and Samsung Pay are widely used.
  • Foreigners can use these services if they have a local bank account and a registered phone number.

Tax Refunds for Tourists

  • Tourists can claim VAT refunds on purchases over โ‚ฉ30,000 at participating stores.
  • Look for "Tax-Free" signs and keep your receipts.
  • Refunds can be processed at the airport before departure.

6. Emergency Tips

  • If you lose your wallet or money, contact your embassy or consulate for assistance.
  • Report lost or stolen credit cards immediately to your bank.
  • Keep a small amount of emergency cash in a separate location, such as a hidden pocket or travel pouch.

7. Summary of Key Recommendations

  • Best Places to Exchange Money: Banks and currency exchange booths in Myeongdong or Dongdaemun.
  • Avoid: Hotels and unlicensed vendors.
  • Carry Cash: For small purchases and in traditional markets.
  • Use Cards: For convenience in most shops, restaurants, and transportation.
  • Monitor Exchange Rates: Use apps to get the best value for your money.
  • Respect Cultural Norms: Handle money with care and use both hands when giving or receiving it.

By following these guidelines, youโ€™ll be well-prepared to handle currency matters during your time in Seoul. Whether youโ€™re visiting for a short trip or planning a long-term stay, understanding the financial landscape will enhance your experience in this vibrant city.