Paying in Korea: Cards, Cash, ATMs and Tax Refunds
What payment methods work for foreign visitors in Korea, how to find an ATM that accepts your card, why tipping is not expected and how tourist tax refunds work.
Cards come first
Korea is one of the most card-friendly countries in the world. Almost every shop, restaurant, cafe, taxi and ticket machine in a city accepts credit or debit cards, and many places prefer them. Visa and Mastercard are the most reliable for visitors. Other networks work in some places and not others, so carry a second card from a different network if you can.
Before you leave home, tell your bank that you will use the card abroad, check your overseas transaction limits, and confirm that your card is set up for online purchases with extra authentication if your country requires it. When a terminal asks whether to charge in Korean won or your home currency, choose won. Charging in your home currency (dynamic currency conversion) usually gives a worse exchange rate.
Some small stalls, market vendors, older restaurants and rural businesses prefer cash or accept only certain cards, and some self-service kiosks do not read foreign cards. A little cash saves frustrating moments. Mobile wallets such as Apple Pay and Google Pay work in some places and not others, and local wallets such as Kakao Pay or Naver Pay generally require a Korean account or phone number, so do not rely on them.
Cash and ATMs
The Korean currency is the won (KRW), and it has no small denominations in everyday use. Bills come in 1,000, 5,000, 10,000 and 50,000 won, and coins are 10, 50, 100 and 500 won. The numbers look large, so check the digits before you pay. A 10,000-won bill is a convenient unit for small purchases.
Not every ATM accepts foreign cards. Look for machines marked as global or international, or showing the logo of your card network. Bank branches, airports, and convenience stores such as 7-Eleven often have these. Withdrawal limits per transaction can be modest, and there are usually fees from both the ATM and your own bank. Ask your bank about their charges, and take out a sensible amount at a time rather than many small ones.
Currency exchange offices in tourist districts such as Myeongdong in Seoul compete with one another, and rates vary. Compare two or three before you exchange, and carry your passport, as you may need it. Exchange rates and fees change daily.
Tipping and extra charges
Tipping is not part of Korean culture. You do not tip in restaurants, cafes, taxis, hotels or for hair and spa services, and you will not see a tip line on a bill. Staff may be confused if you leave money on the table, and some will run after you to return it. Good service is simply expected. A sincere thank you is enough.
The price on the menu or on the shelf generally includes tax, so there is little of the surprise at the till that visitors find in some countries. Hotels may add a service charge, and some upscale restaurants or bars do, too, but it will be stated.
A few places add a cover charge per person for certain dishes, or require a minimum number of portions for grilled meat or hot-pot meals. It is worth looking at the menu before sitting down. Prices change, so use any price you read as a rough guide only.
Tourist tax refunds, step by step
Foreign visitors can often get a refund of part of the value-added tax on goods they buy and take home. This only applies at shops that display a tax-free sign or are registered in a tax-refund scheme, and you must meet minimum purchase conditions on each receipt. The minimum amounts, the refund caps and the fees have changed over the years, so ask the shop for the current rules and check official customs information.
There are two common ways to get the refund. In an instant refund, the shop deducts the tax at the till when you show your passport, and you do not need to deal with it at the airport, although you must still keep the goods and may be checked at departure. In a post-departure refund, the shop gives you a receipt or a refund slip. At the airport, you process it at a kiosk, usually before you check your bags, because customs may want to see the goods. Then you collect the refund at a counter or have it sent to a card, depending on the system.
Carry your passport when shopping, keep the receipts together, and do not use the goods before you leave if the rules require them to be unused. Leave plenty of time at the airport, because kiosks and customs checks add to the queue. There is also a deadline after the purchase date for processing the refund, so do not leave it to the last day of a long trip.
Refunds apply to goods, not to hotels, restaurants or most services. Rules on medical or cosmetic services have changed in the past, so ask directly if you plan to buy one. When in doubt, ask the shop staff before paying.