Money in Korea: A Traveler's Guide to Using Credit Cards vs. Cash

Figuring out the money situation is one of the first things every traveler does. Will my card work? How much cash should I carry? You'll be happy to know that South Korea is a highly advanced, tech-savvy country where plastic is king... most of the time. The currency is the South Korean Won (KRW or ₩), and while you'll be swiping your card for most things, cash is still absolutely essential for some of the best travel experiences. This guide will break down exactly when to use each.

The Power of Plastic: Using Credit Cards in Korea

As a general rule, South Korea is a credit card paradise. The country has one of the highest credit card usage rates in the world. International cards like Visa and Mastercard are accepted almost everywhere in cities, even for very small purchases.

Where Your Credit Card is King:

• Restaurants & Cafes: From fancy restaurants to buying a single coffee, your card will be accepted.
• Shopping: All department stores, cosmetic shops, clothing stores, and supermarkets.
• Convenience Stores: GS25, CU, 7-Eleven, etc.
• Transportation: Booking KTX tickets, paying for most taxis, and even at some highway toll booths.
• Accommodation: Hotels and hostels will all accept credit cards for payment.

Crucial Tip: Always Pay in Korean Won (KRW)!

When you use your foreign card, the card machine will sometimes ask if you want to pay in your home currency (e.g., USD, EUR) or in Korean Won (KRW). Always choose KRW. If you choose your home currency, you'll be subject to something called Dynamic Currency Conversion (DCC), which often comes with a poor exchange rate and extra fees. Paying in the local currency ensures your bank gives you the best possible rate.

Things to Keep in Mind:

• Travel-Friendly Card: To save money, use a credit card that doesn't charge foreign transaction fees.
• Amex/Discover: While accepted in major hotels and department stores, Visa and Mastercard are far more widely accepted.
• Inform Your Bank: Let your bank know about your travel plans before you leave to avoid your card being frozen for suspicious activity.

Cash is Still Essential: When You'll Need Korean Won

Despite being incredibly card-friendly, you will absolutely need cash for some of the most authentic and enjoyable parts of your trip. Trying to operate without any cash will lead to frustration.

Where You MUST Have Cash:

• Topping up your T-money Card: This is the most important one. The reloading machines in subway stations are cash-only. Since the T-money card is your key to getting around, you need cash to make it work.
• Traditional Markets: This is non-negotiable. If you're visiting famous spots like Gwangjang Market or Namdaemun Market, the food vendors and many small stalls are cash-only. You cannot experience Korea's amazing street food without cash.
• Underground Shopping Malls: Many of the small, independent stalls in places like the Myeongdong Underground Shopping Center are cash-only or will offer you a small discount (할인 - *ha-rin*) for paying with cash.
• Small, Local Restaurants: Especially older, family-run establishments or restaurants in more rural areas.
• Small Purchases: For buying a single skewer of fish cakes, a piece of fruit from a street vendor, or a small souvenir.

Getting and Managing Your Cash

How Much Cash Should I Carry?

A good rule of thumb is to always have at least ₩50,000 to ₩100,000 (approx. $35-70 USD) in your wallet for daily expenses like T-money top-ups, snacks, and market finds. You don't need to carry huge wads of cash.

How to Get Cash: Use "Global" ATMs

The best and easiest way to get Korean Won is to withdraw it from an ATM after you arrive in Korea. You'll get a much better exchange rate than you would at home.

The Golden Rule: Look for ATMs that are specifically marked with a "Global" or "Global Services" sign. These are often found at airports, in subway stations, and inside convenience stores. Many ATMs located inside bank branches are for domestic cards only and will reject your foreign card. The Global ATMs are designed for international transactions and will almost always work.

Quick Cheat Sheet: Card vs. Cash

• ✅ Use CREDIT CARD for: Restaurants, cafes, shopping, hotels, taxis, KTX tickets.
• 💵 Use CASH for: Street food, T-money card top-ups, traditional markets, and small independent stalls.

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Navigating money in South Korea is simple once you know the system. The best strategy is a hybrid one: rely on a good travel credit card for the majority of your purchases to maximize convenience and security, but always keep a healthy stash of cash on hand for the authentic, everyday experiences that make traveling here so special. With this balanced approach, you'll be ready for anything.

Do you have any other money tips for traveling in Korea? Share them in the comments below!