1. What is the official currency of South Korea?

The official currency of South Korea is the South Korean won.

2. Are there any restrictions on foreign currency transactions in South Korea?

Yes, there are some restrictions on foreign currency transactions in South Korea. These restrictions are put in place to control the flow of capital into and out of the country and to maintain stability of the local currency.

1. Capital Account Controls: South Korea maintains certain controls on capital flows, such as limits on investments by foreigners in certain industries, restrictions on repatriation of profits from investments, and limitations on foreign borrowing.

2. Foreign Exchange Reporting Requirements: Individuals and businesses are required to report any transaction involving the exchange of Korean Won (KRW) for a foreign currency that exceeds a specified amount.

3. Cash Transaction Limitations: There is a limit on the amount of KRW that can be converted into foreign currency per day without providing justification for the transaction.

4. Restrictions on Remittances: Some types of remittances out of South Korea may be subject to approval from the Bank of Korea or other government agencies.

5. Foreign Currency Deposit Limits: There are limits on the amount of foreign currency that individuals can hold in domestic bank accounts without filing a report with tax authorities.

It is important for individuals and businesses to consult with their bank or financial institution before conducting any significant foreign currency transactions in South Korea to ensure compliance with these regulations.

3. What is the current exchange rate for local currency to US dollar in South Korea?

As of October 2021, the current exchange rate for local currency to US dollar in South Korea is approximately 1,167 Korean won to 1 US dollar. However, exchange rates can fluctuate daily and may differ depending on the specific currency exchange service or bank used.

4. Is it better to use cash or credit cards for purchases in South Korea?

It is generally accepted to use cash or credit cards for purchases in South Korea. It is recommended to carry both forms of payment as some smaller vendors may only accept cash. Credit cards are widely accepted, especially in major cities and tourist areas. However, it is advisable to inform your bank prior to your trip to ensure that your card can be used internationally and to avoid any potential issues with transactions being declined.

5. Do businesses in South Korea typically accept US dollars or do they prefer local currency?

It is generally recommended to exchange US dollars for South Korean won before visiting the country. While some larger businesses and tourist hotspots may accept US currency, it is not widely accepted. It is also important to note that businesses may offer a less favorable exchange rate or charge an additional conversion fee if paying with US dollars. It is best to have local currency on hand for most transactions.

6. Are there any hidden fees or charges when exchanging money in South Korea?

There may be additional fees or charges when exchanging money in South Korea, such as commission fees or ATM withdrawal fees. It is best to check with your bank or currency exchange provider for their specific policies and any potential hidden fees.

7. Can I use ATMs from my home country bank in South Korea to withdraw money?

Yes, you can use ATMs from your home country bank in South Korea to withdraw money. However, you may incur additional fees such as out-of-network ATM fees and currency conversion fees. It is advisable to check with your bank beforehand to inquire about their international ATM policies and any associated fees. Additionally, you may want to consider using a global network like Visa or Mastercard for fee-free international withdrawals.

8. Is it necessary to tip service workers and what is the customary amount in South Korea?

It is not necessary to tip service workers in South Korea. In fact, tipping is not a common practice in the country and may even be refused. However, if you wish to express gratitude for exceptional service, you can leave a small tip of 5-10% of the total bill. It is also common to give a small gift instead of cash as a token of appreciation.

9. Can I purchase traveler’s checks before traveling to South Korea, and are they widely accepted?

It is possible to purchase traveler’s checks before traveling to South Korea. However, they are not as commonly used as credit or debit cards and may be more difficult to cash or use for purchases. It is recommended to bring a combination of payment methods when traveling, including cash, credit/debit cards, and a small amount of traveler’s checks as a backup option. Many major hotels, banks, and exchange offices in South Korea may accept traveler’s checks, but it is always best to check with the specific location beforehand.

10. Are there any restrictions or limits on bringing foreign currency into or out of South Korea?

There are no restrictions on bringing foreign currency into or out of South Korea. However, if you are carrying more than USD 10,000 (or equivalent in other currency) in cash, you must declare it to the customs authorities. Failure to do so may result in confiscation of the funds and possible penalties.

11. Do major hotels and restaurants accept credit cards, and if so, which types are most commonly accepted?

Yes, most major hotels and restaurants accept credit cards. The most commonly accepted types of credit cards are Visa, MasterCard, and American Express. Some establishments may also accept Discover or Diners Club. It is always best to check with the specific hotel or restaurant beforehand to confirm which types of credit cards they accept.

12. Are there any unique features of the currency used in South Korea, such as coins with different values or special designs?

Yes, there are a few unique features of the currency used in South Korea.

One feature is that South Korea uses both coins and banknotes for their currency. Coins come in values of 10, 50, 100, and 500 won, while banknotes are available in denominations of 1,000, 5,000, 10,000, and 50,000 won.

Another unique feature is the design of the coins. The front side features King Sejong the Great who was a revered king from the Joseon Dynasty known for his contributions to literature and science. On the reverse side of each coin is a different image representing a traditional Korean symbol or landmark.

In addition to this, the 10 won coin has a hole in its center which is meant to represent harmony and balance.

Lastly, all South Korean banknotes feature images related to important historical figures or events in Korean history such as King Sejong the Great and Admiral Yi Sun-sin. They also incorporate advanced security features such as holographic strip technology to prevent counterfeiting.

13. Is haggling acceptable when making purchases, especially in markets and smaller shops?

Yes, haggling is often expected and acceptable in markets and smaller shops. In many cultures, it is seen as a normal part of the purchasing process and vendors may even expect customers to haggle for a better price. However, it is important to be respectful and polite while negotiating, as being overly aggressive or rude can be considered inappropriate or offensive. It’s also helpful to have an idea of the market value of the item you are interested in before starting to negotiate.

14. Can I pay for goods and services with a mix of both local currency and US dollars?

It depends on the specific rules and regulations in your country and the policies of the individual businesses. In some places, it may be acceptable to pay with a combination of local currency and US dollars, while in others it may not be permitted. It is best to check with the business or local authorities for their accepted forms of payment.

15. What is the most convenient way to exchange money while traveling through different regions of South Korea?

The most convenient way to exchange money while traveling through different regions of South Korea is by using an ATM or exchanging currency at a bank. Many international ATMs and banks in South Korea accept major credit cards and can dispense Korean won. It is also possible to exchange currency at airports, hotels, and some shops and restaurants, but these options may have higher fees.

16. Are there alternative forms of payment in addition to cash and credit cards, such as mobile payments or digital wallets in South Korea?

Yes, there are many alternative forms of payment in addition to cash and credit cards in South Korea. These include mobile payments, digital wallets, and other online payment services.

One popular method is through mobile payment apps like Samsung Pay, which allows users to make payments directly from their smartphones by linking their credit or debit card information. Another popular option is KakaoPay, which is linked to the popular messaging app KakaoTalk and also allows for easy mobile payments.

Other digital wallets and online payment services in South Korea include Toss, Naver Pay, and Payco. These allow users to store their credit or debit card information and make payments through their respective platforms.

In addition, some stores and restaurants in South Korea have implemented QR code systems that can be scanned through a smartphone for payment. This method is most commonly used at smaller establishments that may not have wireless card terminals.

Overall, the use of alternative forms of payment is quite common in South Korea, with many people opting for convenience and speed over traditional cash or card payments.

17. Is tipping expected during taxi rides, at hotels, or at other specific locations like spas or salons in South Korea?

Tipping is generally not expected in South Korea, and is often considered unnecessary or even rude. At taxi rides, it is not common to tip the driver. At hotels, a small gratuity may be left for exceptional service, but it is not expected. At spas or salons, tipping is also not necessary and can be seen as insulting. However, some higher-end establishments may include a service charge that covers tipping. It is always best to check with the establishment beforehand to see their policy on tipping.

18. Are there certain stores where tourists can receive tax refunds on their purchases before leaving South Korea?

Yes, tourists can receive tax refunds on their purchases before leaving South Korea at designated Global Tax Free (formerly known as “Tax Free Worldwide”) stores. These stores display a “Tax Free Shopping” logo and offer the tax refund service for a minimum purchase amount of 30,000 won. Tourists must present their passport and complete the necessary paperwork to receive the tax refund. Approved refunds are made in cash or credited back onto the customer’s credit card. You can find a list of Global Tax Free stores on their website or by downloading their app.

19..How should I handle my leftover foreign currency when departing from South Korea, including coins and smaller bills?

1. Use it for souvenirs or gifts: If you have a significant amount of leftover coins and smaller bills, consider using them to buy souvenirs or gifts to bring back home. This will not only get rid of your foreign currency but also give you a chance to bring some unique items from South Korea.

2. Exchange it at a bank or currency exchange office: If you have larger bills or a large amount of leftover currency, you can exchange it at a bank or currency exchange office before you leave the country. Be aware that banks may charge higher fees for exchanging smaller bills and coins, so this option is more suitable if you have larger denominations.

3. Use it for local expenses before leaving: If you still have some time left in South Korea, try using your remaining local currency for expenses such as food, transportation, or shopping. This will help reduce your leftover amount and make it easier to exchange the rest at the airport before departing.

4. Donate it: Consider donating your leftover foreign currency to charity organizations before leaving South Korea. Many airports have donation boxes where you can donate any unused money in various currencies.

5. Keep it as a souvenir: If you are planning on returning to South Korea in the future, you can keep your leftover foreign currency as a souvenir and use it on your next trip.

6. Ask friends or family: If you know someone who is traveling to South Korea soon, ask if they would like to exchange their money for yours. This way, they can avoid exchanging fees and you can get rid of your foreign coins and smaller bills.

7. Spend it during transit: Some international airports may accept foreign currency at duty-free shops or restaurants during transit stops. Check with the airport beforehand if this option is available.

Remember to always keep your receipts when exchanging money in case you need proof of conversion at customs when leaving the country.

20. Is there a limit on the amount of local currency I can withdraw from ATMs in South Korea each day?

Yes, there is a limit on the amount of local currency you can withdraw from ATMs in South Korea each day. The exact limit may vary depending on the bank or ATM network that you are using, but it is typically around 1 million Korean Won (KRW) per day. Some banks may also have a lower daily limit for foreign cardholders. It is best to check with your specific bank to confirm their daily withdrawal limit for international withdrawals in South Korea.