South Korea currency guide: The Korean won (KRW)

South Korean currency, known as the won, provides the best way to pay for goods and services when visiting the country. Whether paying for a Korean BBQ, a K-Pop concert, or access to the country’s historical sites, you’ll likely need won to pay for it all.

Here’s what to know about the South Korean currency, exchanging your US dollars (USD) for won, and tips on how to get the best exchange rate when traveling.

Note: Before making travel plans, check the US Department of State website for the latest travel advisory information.

What is the currency in South Korea?

South Korea’s currency is the won, symbolized by “₩” and abbreviated as KRW. The won operates on a floating exchange rate. In recent decades, its value relative to the dollar has consistently remained above 1,000 KRW to 1 USD. Given South Korea’s reliance on exports, particularly in electronics, cars, and shipbuilding, the won’s exchange rate plays a crucial role in the country’s economic health.

The value of KRW on the global market is relatively low compared to some major currencies. This results in the Bank of Korea circulating high-value banknotes, ranging from ₩1,000 to ₩50,000. For smaller transactions, won coins are available in denominations of ₩10, ₩50, ₩100, and ₩500.

Important historical Korean figures are depicted on KRW banknotes:

Banknote	Front imagery	Back imagery
₩1,000	Toegye Yi Hwang: Famous Confucian scholar	Motifs like Myeongryundang (a lecture hall at Sungkyunkwan, Korea’s top Confucian academy during the Joseon dynasty) or Prunus mume (a type of plum tree, often referred to as “plum blossom”).
₩5,000	Yulgok Yi I: famous Confucian scholar	Motifs like the Ojukheon (Mongryoungsil, a famous historical site in Korea where the Yi I was born) and Ojuk (black bamboo) or Chochungdo (watermelons and cockscombs) paintings.
₩10,000	King Sejong the Great: Creator of the Korean alphabet	Motifs like the painting “Irworobongdo” (The Sun and the Moon, Five Mountain Peaks) or an image of Honcheonui, an astronomical instrument used in Korea to observe celestial movements.
₩50,000	Shin Saimdang: Influential artist and poet	Motifs like Mukpododo (a depiction of black grapes) or Eggplants of Chochungdo-subyeong (a representation of eggplants from the series “Chochungdo”).

 

History of the South Korean won

The won has undergone several iterations and updates over time. Here are some important historical periods to note for the South Korean currency:

• 1902: The Korean won is first introduced, replacing the yang at a rate of 1 won to 5 yang.
• 1910: Korea is annexed by Japan. The Korean yen (pegged to the Japanese yen) replaces the won as the country’s official currency.
• 1945: Korea is liberated from Japan, and the country reintroduces the won as its national currency, pegging it to the US dollar at a rate of 15 won to 1 dollar.
• 1950: The Bank of Korea is established and begins circulating won banknotes.
• 1953: As hyperinflation becomes a problem, South Korea replaces the won with the hwan at a rate of 1 hwan to 100 won.
• 1962: South Korea reintroduces the won as the national currency, pegging it to the US dollar at a rate of 12.5 won to 1 dollar.
• 1997: Following the Asian Financial Crisis and currency devaluation, South Korea officially transitioned the won to a floating exchange rate.
• Post-1997: Since adopting the floating exchange rate, the won has generally remained stable, although it has experienced some fluctuations due to global economic conditions.
• North Korean Won: It’s worth noting that North Korea also has its own version of the won, which is a separate currency with a different history and value.

7 tips for exchanging US dollars to won

Before you exchange your dollars for South Korean money, you need to know what to look out for. This includes the USD to KRW exchange rate, fees, reputable exchanges, and more.

1. Research and compare exchange rates

It’s always wise to shop around for the best exchange rate. Compare rates from various sources, including banks, exchange kiosks, and online platforms like Western Union. Western Union offers competitive exchange rates and transparent fees, making it a convenient option for obtaining South Korean money. By taking a few minutes to research and compare, you can potentially save money and ensure you get the most value for your currency exchange.

2. Notify your bank ahead of traveling

Before visiting South Korea, it’s important to let your bank know about your travel plans. If your bank or financial institution sees transactions in South Korea but is unaware you’re visiting the country, it could freeze your account for suspected fraud. This could leave you stuck without a usable credit card, debit card, or South Korean money for several hours or even days.

3. Avoid exchanging money at airports, hotels, and tourist areas

While it might be tempting to exchange your money for South Korean won as soon as you arrive at the airport or your hotel, these locations often offer less favorable exchange rates due to convenience fees and limited competition. You might receive significantly fewer won for your dollars compared to other options.

Consider exploring options like authorized currency exchange booths in the city, banks, or online platforms like Western Union. These options often provide more competitive exchange rates and transparent fees, enabling you to make the most of your money. If you prefer in-person transactions, Western Union has several agent locations throughout South Korea, offering a convenient and reliable way to get Korean money once you’ve settled in.

4. Consider commissions and fees

When converting dollars to South Korean currency, be prepared to encounter a variety of fees. Transaction fees, commissions, and even hidden charges can add up, impacting the overall value of your exchange.

When comparing Korean currency exchanges, always ask about the fees or commissions involved. Consider using a provider like Western Union for a transparent and upfront approach. We clearly outline our fees so you can make an informed decision and compare them to other services.

Ask for an itemized list detailing all fees before finalizing any conversion, regardless of the provider. This ensures you aren’t surprised and can make the most cost-effective choice for your currency exchange.

5. Withdraw South Korean currency instead of US dollars from ATMs

ATM fees in South Korea can be high. One way to reduce your fees when withdrawing Korean currency from an ATM is to let your bank handle the process. This helps avoid the dynamic currency conversion (DCC) fee you might otherwise encounter. The best way to exchange currency when using an ATM is to withdraw Korean won instead of dollars or another foreign currency.

6. Exchange money in South Korea instead of the US

Your options for exchanging money in South Korea will likely be more plentiful and offer better rates than in the US. Many US banks don’t have Korean currency readily available and may require advance appointments or offer less favorable exchange rates.

Consider waiting until you arrive in South Korea to exchange your currency. You’ll find a wider range of options, including banks and authorized exchange bureaus like Western Union.

7. Use reputable exchanges

When traveling in South Korea, it is crucial to protect yourself from potential currency exchange scams. Always choose reputable, government-certified exchange booths or rely on trusted providers like Western Union.

With numerous agent locations across South Korea and an online platform with security features like touch ID, transfer tracking, and encryption, Western Union helps you feel confident when exchanging dollars for Korean won. We also adhere to PCI DSS and other compliance standards to help keep you protected from scams.

Using money in South Korea

When it comes time to use Korean currency, there are some important things to know, especially regarding tipping service workers in the country.

Can you use US dollars in South Korea?

US dollars aren’t widely accepted in South Korea. Even if you find merchants willing to accept dollars, you’ll likely pay a higher exchange rate at the time of sale and could risk getting scammed out of the correct change in won. It’s better to convert your dollars to Korean money for transacting while in South Korea.

Tipping etiquette in South Korea

In South Korea, some workers may find tipping offensive. This cultural difference takes some getting used to, but you won’t need to worry about tipping in the country. The only place you may see tip jars or other people tipping is in tourist areas that cater to foreigners—but even then, many workers will not accept tips. Instead, some restaurants and hotels may add a service fee to your bill, which is used to help pay workers.

Where to get South Korean won near me?

For reliable currency exchange in South Korea, you have several reputable options. Banks offer currency exchange services, but their operating hours are typically limited. Authorized exchange service providers like Western Union offer a convenient alternative with dozens of locations throughout the country, making it a breeze to exchange currency near you no matter where you’re traveling.

ATMs are also widely available and offer a quick and convenient way to withdraw Korean currency directly, often with competitive exchange rates. If you prefer the flexibility of online transactions, Western Union enables you to exchange currency using your mobile phone or computer.