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What is Money Called in Korea? Your Complete Guide

The most common and widely recognized term for money in Korea is 원 (Won). This is the official currency of South Korea, symbolized by ₩ and with the ISO code KRW. However, understanding Korean currency goes beyond just knowing its name. This deep dive will explore the nuances of Korean money, its history, denominations, and everything else you need to know.

Understanding the Korean Won (원)

The Korean Won (원) isn’t just a word; it’s a representation of South Korea’s economic engine. Let’s break down its key features:

History and Evolution of the Won

The Won has a rich history, dating back to 1902, during the Korean Empire. It replaced the Japanese yen at the time, marking a step towards financial independence. However, during the Japanese colonial period, the Korean Won was replaced by the Korean yen. After World War II, a new Won was introduced, pegged to the U.S. dollar.

The modern South Korean Won that we know today was introduced in 1962. It underwent several reforms and revaluations to stabilize the economy and manage inflation. Notably, the Won shifted to a floating exchange rate system in 1997 during the Asian financial crisis.

Denominations: Coins and Banknotes

The Korean Won comes in various denominations, both in coins and banknotes, each designed with distinct characteristics:

Coins: The circulating coins are 1 원, 5 원, 10 원, 50 원, 100 원, and 500 원. However, the 1 원 and 5 원 coins are rarely used in everyday transactions due to their low value. The 10 원, 50 원, 100 원, and 500 원 coins are more commonly used for smaller purchases or when making exact change.
Banknotes: The banknotes include 1,000 원, 5,000 원, 10,000 원, and 50,000 원. Each banknote features significant historical figures and cultural symbols. For example, the 50,000 원 note depicts Shin Saimdang, a renowned artist and calligrapher from the Joseon Dynasty, making it not just a medium of exchange but also a piece of art.

Why is it Important to Know the Currency?

Knowing the currency’s name and denominations is critical for several reasons:

Travel: If you plan on traveling to South Korea, understanding the Won is essential for budgeting, making purchases, and avoiding overpayment or scams.
Business: For anyone engaged in international trade or business with South Korea, familiarity with the Won is crucial for financial planning, currency exchange, and pricing.
Cultural Awareness: Understanding the currency provides insight into South Korea’s history, culture, and economic development. It allows for a deeper appreciation of the country’s identity.

FAQs: Everything You Need to Know About Korean Money

To further enrich your understanding, let’s address some frequently asked questions about money in Korea:

FAQ 1: Is there a slang term for money in Korea?

Yes, there are several slang terms for money in Korean. Some popular terms include “땡전” (ddaengjeon) which refers to money in a light-hearted way, and “쩐” (jjeon) which is a more casual term. These terms are frequently used in informal conversations among friends.

FAQ 2: Where can I exchange currency for Korean Won?

You can exchange currency for Korean Won at various locations:

Banks: Major banks in your home country or in South Korea offer currency exchange services.
Airports: Airports usually have currency exchange kiosks, but the rates might not be as favorable as those at banks.
Licensed Exchange Bureaus: These are commonly found in tourist areas and can offer competitive exchange rates.
ATMs: Some ATMs in South Korea allow you to withdraw Korean Won directly from your foreign bank account, but check for any fees beforehand.

FAQ 3: Is it better to exchange money before I go to Korea, or when I arrive?

Generally, it’s better to exchange a small amount of currency before you arrive in Korea for immediate expenses like transportation. However, for larger amounts, exchanging in Korea, particularly at banks or licensed exchange bureaus in Seoul, often yields better exchange rates.

FAQ 4: What is the current exchange rate between USD and Korean Won?

The exchange rate between USD and Korean Won fluctuates constantly. You can find the most up-to-date information on financial websites like Google Finance, Bloomberg, or XE.com.

FAQ 5: Can I use credit cards in South Korea?

Yes, credit cards are widely accepted in South Korea, especially in major cities and tourist areas. Visa and Mastercard are the most commonly accepted cards. However, it’s always a good idea to carry some Korean Won for smaller establishments, street vendors, or traditional markets.

FAQ 6: Are there any fees for using foreign credit cards in South Korea?

Yes, your bank may charge foreign transaction fees for using your credit card in South Korea. These fees typically range from 1% to 3% of the transaction amount. Check with your bank before traveling to understand their fee policies.

FAQ 7: How much does a typical meal cost in South Korea?

The cost of a typical meal in South Korea varies depending on the type of restaurant and the location. A budget-friendly meal at a local eatery might cost around ₩6,000 to ₩10,000. A meal at a mid-range restaurant could range from ₩15,000 to ₩30,000.

FAQ 8: Is tipping customary in South Korea?

No, tipping is not customary in South Korea. Service charges are usually included in the bill at hotels and upscale restaurants. Attempting to leave a tip might even be considered impolite.

FAQ 9: What is the average cost of a cup of coffee in South Korea?

The average cost of a cup of coffee in South Korea is around ₩4,000 to ₩6,000 at popular coffee chains like Starbucks or local cafes. Prices may vary depending on the location and the type of coffee.

FAQ 10: How much money should I budget per day in South Korea?

A reasonable daily budget for a traveler in South Korea depends on your travel style:

Budget Traveler: ₩50,000 to ₩80,000 (including accommodation in hostels, local transportation, and affordable meals)
Mid-Range Traveler: ₩100,000 to ₩150,000 (including comfortable hotels, restaurant meals, and some sightseeing)
Luxury Traveler: ₩200,000+ (including high-end hotels, fine dining, and private tours)

FAQ 11: Are there any ATMs that accept foreign cards in South Korea?

Yes, there are ATMs in South Korea that accept foreign cards. Look for ATMs with the “Global ATM” or “International ATM” signs. These are commonly found at banks, convenience stores (like CU, GS25, and 7-Eleven), and tourist areas.

FAQ 12: What should I do if I lose my money or credit cards in South Korea?

If you lose your money or credit cards in South Korea, immediately report the loss to your bank or credit card company to prevent unauthorized transactions. You should also file a police report. The South Korean police are generally helpful and can assist you in recovering your belongings or providing necessary documentation for insurance claims. Contact your embassy or consulate for further assistance if needed.