The official currency of South Korea is the South Korean won, designated by the currency code KRW and the symbol ₩. The Bank of Korea, established in 1950, serves as the central bank and sole issuer of won banknotes and coins. The won replaced the hwan in 1962 at a conversion rate of 10 hwan to 1 won as part of a monetary reform addressing post-Korean War inflation. The currency circulates in banknotes of ₩1,000, ₩5,000, ₩10,000, and ₩50,000, with coins in denominations of ₩10, ₩50, ₩100, and ₩500. The ₩1 and ₩5 coins remain legal tender but have been effectively withdrawn from circulation due to low purchasing power. As of current exchange rates, the won typically trades in the range of ₩1,200 to ₩1,400 per US dollar, though this fluctuates with global financial conditions.
South Korea operates as a predominantly cashless society, particularly in Seoul and other major cities. Credit and debit cards are accepted at approximately 95 percent of retail establishments in urban areas, including small convenience stores, street food stalls, and taxis. Visa and Mastercard work at most locations, while American Express acceptance is more limited and concentrated in hotels and larger retailers. Cards with EMV chip technology function widely, though contactless payment through cards remains less common than mobile payment systems. Foreign-issued credit cards generally process without difficulty at automated teller machines and point-of-sale terminals, though some smaller merchants may require chip-and-PIN rather than chip-and-signature verification.
Mobile payment platforms dominate everyday transactions. Samsung Pay and Kakao Pay together account for over 60 percent of mobile payment volume as of 2023 data from the Bank of Korea. These services link directly to Korean bank accounts and credit cards, creating a barrier for short-term visitors who cannot easily establish local banking relationships. The T-money card system, initially developed for public transportation, now functions at convenience stores, vending machines, and participating retailers. Visitors can purchase T-money cards at convenience stores including GS25, CU, 7-Eleven, and Emart24 for approximately ₩2,500 to ₩4,000, then load value in increments starting at ₩1,000. The cards require no registration and carry no expiration date, allowing travelers to retain unused balances for future visits.
Automated teller machines provide 24-hour cash access throughout South Korea. Machines at 7-Eleven stores, operated through a partnership with various banks, accept international cards bearing Visa, Mastercard, Maestro, Cirrus, and UnionPay logos. Withdrawal fees typically range from ₩3,000 to ₩5,000 per transaction imposed by the Korean bank, in addition to any fees charged by the card-issuing institution. Daily withdrawal limits vary by machine and card type but commonly fall between ₩700,000 and ₩1,000,000. Machines dispense only ₩10,000 and ₩50,000 notes, making initial withdrawals of ₩100,000 or less impractical at some locations. Bank branches including KB Kookmin Bank, Shinhan Bank, and Woori Bank operate ATMs in lobbies accessible during extended hours, generally from 0600 to 2300, with some offering true 24-hour access.
Currency exchange services operate through banks, authorized exchange counters, and hotels. Banks including KB Kookmin Bank and KEB Hana Bank maintain exchange counters at major branches, typically open during standard banking hours of 0900 to 1600 on weekdays. Exchange rates at banks generally provide better value than hotel desks, with spreads of 1 to 2 percent compared to 3 to 5 percent at hotels. Incheon International Airport hosts multiple exchange counters in both landside and airside areas, operating 24 hours with rates approximately 1.5 to 2.5 percent less favorable than downtown bank branches. Exchange counters in popular tourist areas of Seoul including Myeongdong and Itaewon offer rates comparable to or slightly better than banks, operating extended hours including weekends. Licensed exchange businesses display authorization certificates issued by the Ministry of Economy and Finance.
The Korean government restricts cash transactions exceeding ₩10,000,000 for real estate purchases and ₩20,000,000 for vehicle purchases as part of anti-money laundering regulations implemented in 2020. These restrictions do not affect typical tourist expenditures but create a practical ceiling on cash utility. Most Koreans carry minimal cash, with Bank of Korea survey data from 2022 indicating that Seoul residents carry an average of approximately ₩50,000 in physical currency. This cultural norm means merchants, particularly in younger demographic areas, may lack change for large bills, though convenience stores and chain restaurants maintain sufficient float.
Tipping is not customary in South Korea and may cause confusion or refusal. Restaurant bills include all service charges, taxi fares are paid as metered, and hotel staff do not expect gratuities. The practice exists only in specific contexts including high-end hotel concierge services catering to international clientele and some Western-style bars in expatriate neighborhoods. The absence of tipping culture means prices displayed equal prices paid, with no mental calculation required. Service charges of 10 percent appear on bills at some hotels and upscale restaurants, but these are explicitly stated line items rather than discretionary additions.
Value-added tax in South Korea is assessed at 10 percent on most goods and services. The tax is included in displayed prices at retail stores, restaurants, and consumer-facing businesses, meaning a ₩10,000 menu item costs exactly ₩10,000 at payment. The tax-refund program for foreign tourists allows VAT recovery on goods exceeding ₩30,000 purchased at participating Tax Free Shopping locations. Refunds are processed at Incheon International Airport, Gimpo International Airport, Gimhae International Airport, and select downtown refund locations. To qualify, visitors must depart South Korea within three months of purchase and present receipts, passport, purchased items, and completed refund forms. The refund excludes the administrative processing fee of approximately 3 percent of the VAT amount. Items must leave the country unused and in original packaging.
Public transportation costs establish baseline budgeting expectations. Seoul Metropolitan Subway charges base fares of ₩1,400 for adults using single-journey tickets and ₩1,250 using T-money cards, with fares increasing by ₩100 for every additional 5 kilometers beyond the base 10-kilometer distance. Bus fares in Seoul are ₩1,500 for single rides and ₩1,300 with T-money, with free transfers between subway and bus within 30 minutes. The KTX high-speed rail connecting Seoul to Busan covers 325 kilometers in approximately 2 hours 30 minutes with standard-class fares ranging from ₩59,800 to ₩79,800 depending on departure time and booking advance. Taxis use metered fares starting at ₩4,800 for the first 2 kilometers in Seoul, increasing by ₩100 per 132 meters or 31 seconds when moving slowly or stopped.
Meal costs vary substantially by restaurant type and location. A basic meal at a Korean chain restaurant such as Kimbap Cheonguk or Lotteria costs approximately ₩4,000 to ₩7,000. Mid-range restaurant meals including samgyeopsal or galbi with banchan average ₩10,000 to ₩15,000 per person. Convenience store meals consisting of kimbap, instant noodles, or lunch boxes range from ₩2,500 to ₩5,000. Coffee at chain cafes including Starbucks, A Twosome Place, or Ediya Coffee costs ₩4,100 to ₩6,500 for standard espresso beverages. Street food items including tteokbokki, hotteok, and Korean fried chicken pieces run ₩3,000 to ₩6,000 per serving. Traditional market food stalls offer similar or slightly lower prices with greater portion sizes.
Accommodation costs in Seoul span a wide range. Guesthouses and hostels in neighborhoods including Hongdae, Itaewon, and Myeongdong charge approximately ₩20,000 to ₩40,000 for dormitory beds and ₩50,000 to ₩80,000 for private rooms. Mid-range hotels in the same areas run ₩80,000 to ₩150,000 for standard double rooms. Business hotels including Ibis Styles and Tmark Hotels charge ₩70,000 to ₩120,000. International chain hotels such as Lotte Hotel and Grand Hyatt Seoul command ₩250,000 to ₩500,000 and higher for standard rooms. Outside Seoul, accommodation costs drop by approximately 20 to 40 percent in cities including Busan, Daegu, and Gwangju, with Jeju Island prices roughly equivalent to Seoul during peak season and 30 percent lower during off-peak periods.
Attraction admission fees remain relatively modest. Gyeongbokgung Palace in Seoul charges ₩3,000 for adults. Changdeokgung Palace admission is ₩3,000, with an additional ₩5,000 for the Secret Garden tour that must be booked separately. Hwaseong Fortress in Suwon costs ₩1,000. National museum admission is free at the National Museum of Korea in Seoul. National parks including Seoraksan, Jirisan, and Bukhansan charge no entry fees, though parking at park entrances costs approximately ₩4,000 to ₩7,000. Cable cars and chair lifts at parks such as Seoraksan charge ₩11,000 to ₩13,000 for round-trip tickets. Theme parks command higher prices, with Everland admission at approximately ₩62,000 and Lotte World at approximately ₩59,000 for day passes purchased at the gate, with online advance purchase discounts of 10 to 20 percent.
Cell phone connectivity requires either international roaming or a local SIM card. Tourist SIM cards are available for purchase at Incheon International Airport from providers including KT, SK Telecom, and LG U Plus. A typical tourist SIM with unlimited data and 30 days validity costs approximately ₩50,000 to ₩77,000 depending on the provider and data speed tier. Pocket WiFi rental is an alternative, with devices providing connectivity for multiple users at costs around ₩6,000 to ₩10,000 per day or ₩40,000 to ₩60,000 per month. These devices are picked up at airport counters and returned before departure. Free WiFi is available on Seoul Metropolitan Subway trains and at stations, in buses, and at most cafes, restaurants, and public facilities.
Banking services for tourists are limited to exchange and ATM withdrawals, as opening a Korean bank account requires an Alien Registration Card, which is only issued to foreign residents with long-term visas exceeding 90 days. This restriction means visitors cannot access mobile payment platforms that require local bank account linkage. Some banks including Shinhan Bank offer limited prepaid card services to tourists, though these require in-person application and are generally impractical for stays under two weeks. The Tmoney card remains the most accessible stored-value option for visitors, accepted at over 100,000 locations beyond its primary transportation function.
Credit card acceptance is near-universal but comes with occasional technical barriers. Some Korean payment terminals require a domestic Korean card or specific authentication methods that foreign cards cannot provide. This occurs most frequently at small merchants, unmanned kiosks, and certain online platforms. Card readers in taxis occasionally malfunction or reject foreign cards, making it advisable to carry ₩10,000 to ₩20,000 in cash as backup. Fuel stations operated by major chains including GS Caltex, SK Energy, and S-Oil accept foreign credit cards, but smaller independent stations may be cash-only or domestic-card-only.
Department stores and large retail chains offer tax-free shopping with immediate VAT deduction at time of purchase for qualifying tourists. Lotte Department Store, Shinsegae Department Store, and Hyundai Department Store operate tax refund desks where purchases can be processed. The system requires passport presentation and minimum purchase thresholds of ₩30,000 per receipt. The stores issue a tax refund receipt that must be validated at the airport customs desk before departure. The refund appears as a credit to the payment card used for purchase or as cash at airport refund counters, processed 4 to 8 weeks after departure.
Consumer prices for daily goods provide context for budget planning. A 500-milliliter bottle of water at a convenience store costs approximately ₩800 to ₩1,200. A liter of milk runs ₩2,500 to ₩3,500. A dozen eggs costs approximately ₩4,000 to ₩6,000. A kilogram of rice is approximately ₩4,000 to ₩6,000. Fresh produce varies seasonally, with items such as apples at ₩800 to ₩1,500 each, bananas at approximately ₩3,500 per kilogram, and lettuce heads at ₩2,000 to ₩4,000. Beef costs ₩20,000 to ₩50,000 per kilogram depending on cut and grade, while pork is ₩8,000 to ₩15,000 per kilogram. These prices reflect Seoul supermarket rates and are approximately 10 to 20 percent lower in smaller cities.
Alcohol purchases are subject to different pricing structures based on venue. Soju, a distilled rice liquor, costs ₩1,500 to ₩3,000 per 360-milliliter bottle at convenience stores and ₩4,000 to ₩6,000 at restaurants. Domestic beer including Cass, Hite, and OB Golden Lager costs approximately ₩1,500 to ₩2,500 per 500-milliliter can at retail and ₩4,000 to ₩6,000 per draft glass at bars. Imported beer runs ₩3,000 to ₩5,000 retail and ₩7,000 to ₩12,000 at bars. Cocktails at standard bars cost ₩10,000 to ₩15,000, with upscale venues charging ₩15,000 to ₩25,000. The minimum legal drinking age is 19 by Korean age calculation, which is typically 18 by Western calculation for those born in January and 17 for those born in December, though enforcement uses the actual birth year rather than specific birthday.
Shopping districts present different price-value equations. Myeongdong in Seoul concentrates Korean cosmetics brands including Innisfree, Etude House, and The Face Shop, with sheet masks at ₩500 to ₩2,000 each and skincare products at ₩5,000 to ₩30,000. Dongdaemun Market operates 24 hours and offers clothing at wholesale and retail prices, with basic t-shirts starting around ₩5,000 and fashion items ranging from ₩10,000 to ₩100,000. Namdaemun Market sells general goods including hanbok, luggage, and kitchenware at negotiable prices typically 10 to 30 percent below marked rates. Insadong specializes in traditional crafts and souvenirs, with prices that are 20 to 40 percent higher than markets but with higher quality and authenticity guarantees.
Transportation between cities is facilitated by multiple options with distinct pricing. KTX high-speed rail connects Seoul to major cities including Busan, Daegu, Gwangju, and Mokpo with advance purchase discounts of approximately 10 percent for early morning and late evening departures. Standard trains including Mugunghwa and ITX services cost 30 to 50 percent less than KTX while taking 30 to 50 percent longer. Express buses operated by companies including Kobus and Seoul Express Bus Terminal run between most cities at fares approximately 40 to 60 percent of KTX prices with journey times between standard trains and KTX. Domestic flights connecting Seoul Gimpo Airport to Busan Gimhae Airport, Jeju International Airport, and Daegu International Airport range from ₩40,000 to ₩150,000 depending on advance purchase and travel dates.