Disclaimer: This article is for informational purposes only and does not constitute legal advice. Information may change over time. Last updated: 2026-03-23
You arrived in Korea. You open your wallet. There is a bill with a man in a traditional hat and a number that says 50,000. Is that a lot? Is that nothing? How do you pay for the subway? Does anyone tip here?
These are real questions. And if no one tells you the answers clearly before you arrive, your first week in Korea can feel confusing and expensive at the same time.
This guide explains Korean money from the beginning — the bills, the coins, how to exchange, how to open a bank account, and how to budget realistically as a student.
📺 Watch: "Korean Money in South Korea Ep.1 - Korean bills and culture stories" — Korea Higher Education Times 📺 Watch: "Ep.2 - Korean Coins and Culture Stories" — Korea Higher Education Times 📺 Watch: "Ep.3 - An interesting story about money" — Korea Higher Education Times
TL;DR: Korean Won (원, KRW) uses 4 paper bills and 4 coins. The ₩50,000 note is the most common for daily use. Exchange money at banks or currency exchange shops in 명동 (Myeongdong), not at the airport. Open a Korean bank account after getting your ARC card. Korea is increasingly cashless — KakaoPay and T-money cards are essential. No tipping culture. A student budget runs roughly ₩700,000–₩1,200,000 per month depending on housing type.
The Bills (지폐): What Each One Looks Like
Korea currently uses four paper bills. Each one features a historical Korean figure or landmark.
₩1,000 (천 원) The smallest bill. Features Yi Hwang (이황), a famous Joseon-era Confucian scholar. You use this for cheap street food, vending machines, and convenience store items. In daily life, it functions similarly to a US$1 bill, though the actual exchange value is lower.
₩5,000 (오천 원) Features Yi I (이이), another respected Joseon scholar. Good for small meals at a university cafeteria (학식), coffee from a small café, or snacks at a convenience store. Think of it as your "small daily spending" note.
₩10,000 (만 원) This is the workhorse of Korean cash. Features King Sejong (세종대왕), the creator of the Korean alphabet Hangul. Most street food, restaurant meals, and transportation top-ups involve multiples of ₩10,000. When someone says "it costs about 만 원," they mean roughly USD $7–8 at current rates.
₩50,000 (오만 원) The highest denomination. Features Shin Saimdang (신사임당), a respected artist and scholar — and the mother of Yi I. This is the bill you will receive when you withdraw cash from an ATM. It is also the bill most commonly counterfeited, so merchants sometimes check it carefully with a UV pen.
The Coins (동전): Smaller Than You Think
Korean coins are less common in daily life because cashless payments have largely replaced them. But you will still encounter them.
- ₩10: Bronze-colored, very small value. Often rounded away in digital payments.
- ₩50: Slightly larger. Still used in some vending machines.
- ₩100: Silver coin, most common. Features Admiral Yi Sun-sin (이순신). Useful for laundry machines in dormitories.
- ₩500: Largest coin, bronze-silver. Worth roughly USD $0.35. Still used in older vending machines and some laundromats.
Keep a small supply of ₩100 and ₩500 coins for laundry if you live in a dormitory. Other than that, coins are increasingly optional in modern Korea.
How to Exchange Money: Airport vs. Bank vs. Myeongdong
Airport exchange counters (공항 환전소): Convenient but costly When you land at Incheon International Airport (인천국제공항), there are currency exchange booths right in the arrival hall. They are open, easy, and accept most currencies. However, the exchange rate is usually 2–5% worse than what you can get in the city. Exchange only enough for your first day — transportation and a meal — then find a better rate later.
Banks (은행): Safe and reliable Major Korean banks like Shinhan (신한), KB Kookmin (KB국민), Woori (우리), and Hana (하나) offer competitive exchange rates. You will need your passport. Some branches near universities have English-speaking staff. Rates are generally good, though there may be a small fee per transaction.
Currency exchange shops in 명동 (Myeongdong): Often the best rate Myeongdong, a popular shopping district in central Seoul, has dozens of private currency exchange shops (환전소). Many of them offer rates that are noticeably better than banks, with no additional fees. For larger amounts (above ₩500,000), this is often the smartest option. Check the posted rate before exchanging — it should clearly show the "buy" rate for your currency.
ATMs (현금자동인출기) Foreign debit cards (Visa, Mastercard) generally work at GS25 convenience store ATMs and Global ATMs marked with international card logos. The fee is usually ₩2,000–₩3,000 per withdrawal, so withdraw larger amounts less frequently to minimize fees.
Opening a Korean Bank Account (한국 은행 계좌 개설)
You cannot open a Korean bank account without an Alien Registration Card (ARC, 외국인등록증). The ARC is issued by immigration after you enroll and register your address in Korea — usually 2–4 weeks after arrival.
Required documents (필요서류):
- Alien Registration Card (외국인등록증) — mandatory
- Passport (여권)
- University enrollment certificate (재학증명서) — some banks require this
- Korean phone number (한국 전화번호) — usually needed for OTP verification
Recommended banks for students:
- Shinhan Bank (신한은행) — widely available, good English app
- KEB Hana Bank (하나은행) — popular with international students
- Kakao Bank (카카오뱅크) — mobile-only bank, very easy app, no physical branch needed after initial setup
Once you have a bank account, you can receive scholarship payments, pay tuition online, and set up automatic payments for your phone plan.
Cashless Korea: KakaoPay, Samsung Pay, and T-money
Korea is one of the most cashless societies in the world. According to the Bank of Korea, more than 95% of transactions at major retailers are made by card or mobile payment. As a student, you need to understand three systems:
T-money (티머니 카드) A prepaid transportation card used for subways, buses, and taxis across most of Korea. You can buy one at any convenience store (GS25, CU, 7-Eleven) for about ₩2,500–₩4,000. Recharge it at convenience stores or subway station machines. Always tap in and tap out on buses — failure to tap out can result in a higher charge.
KakaoPay (카카오페이) Linked to KakaoTalk, Korea's dominant messaging app. Once you have a Korean bank account and a Korean phone number, you can set up KakaoPay to pay at most stores using a QR code. It is widely accepted at convenience stores, restaurants, and many smaller shops.
Samsung Pay / Apple Pay Samsung Pay works on most Samsung phones and is accepted at nearly every card terminal in Korea. Apple Pay launched in Korea in 2023 and is growing in acceptance, though not yet universal. These require a Korean bank account or credit card to set up properly.
Credit and debit cards Visa and Mastercard debit cards from your home country generally work at most terminals. However, some smaller shops and traditional markets still prefer cash or Korean cards. It is always smart to carry ₩20,000–₩30,000 in cash as backup.
Tipping Culture in Korea: The Short Answer
There is no tipping culture in Korea.
This is genuinely different from many Western countries, and it is worth stating clearly. In restaurants, cafés, taxis, hotels, and salons, you do not tip. The price on the menu or meter is the price you pay. If you leave extra money on the table, staff may run after you thinking you forgot it.
The exception is occasionally in high-end international hotels, where staff may be accustomed to tips from foreign tourists. But even there, it is not expected.
This is actually one of the hidden financial benefits of living in Korea — your budgeting is simpler because the listed price is always the final price.
Monthly Budget for Students in Korea (2026 Estimate)
Costs vary significantly based on city (Seoul vs. other cities), housing type, and lifestyle. The table below gives realistic ranges for a single international student.
| Category | Budget Option | Mid-Range | Comfortable |
|---|---|---|---|
| Housing (월세/기숙사) | ₩200,000–₩300,000 (dorm) | ₩400,000–₩600,000 (gosiwon/share) | ₩700,000+ (officetel) |
| Food (식비) | ₩150,000–₩200,000 | ₩250,000–₩350,000 | ₩400,000+ |
| Transport (교통비) | ₩50,000–₩70,000 | ₩80,000–₩100,000 | ₩120,000+ |
| Phone plan (통신비) | ₩25,000–₩35,000 | ₩40,000–₩55,000 | ₩60,000+ |
| Personal/misc (기타) | ₩50,000–₩80,000 | ₩100,000–₩150,000 | ₩200,000+ |
| Monthly Total | ₩475,000–₩685,000 | ₩870,000–₩1,255,000 | ₩1,480,000+ |
Notes:
- Dormitory housing dramatically reduces costs. Apply for university dormitories as early as possible — spots fill quickly.
- Eating at university cafeterias (학식) costs ₩3,000–₩5,000 per meal and is the single best way to control food costs.
- Most Korean mobile carriers (SKT, KT, LG U+) offer student plans starting around ₩25,000/month with sufficient data.
- Seoul is noticeably more expensive than cities like Daejeon, Daegu, or Busan.
Common Mistakes to Avoid
Exchanging all your money at the airport You will get a noticeably worse rate. Exchange only what you need for Day 1, then find a bank or Myeongdong exchange shop.
Waiting too long to open a bank account Some scholarship payments and tuition refunds can only go to a Korean account. Start the ARC process as soon as you arrive so you can open a bank account within the first month.
Forgetting to tap out on buses Failing to tap out your T-money card on a city bus results in a default maximum charge being deducted. Always tap in and tap out.
Assuming all places accept foreign cards Traditional markets (재래시장), small neighborhood restaurants, and some older shops may be cash-only or Korean-card-only. Keep some cash available.
What To Do Next
If you are preparing to study in Korea, here are three concrete steps for managing your money well from day one:
- Before you arrive: Exchange a small amount (₩100,000–₩150,000) in your home country or at the airport for immediate use. Research the current KRW exchange rate for your currency.
- Week 1 in Korea: Buy a T-money card at any convenience store. Use it immediately for all transportation.
- After receiving your ARC: Visit a Shinhan, Hana, or KB Kookmin bank branch near your campus with your ARC, passport, and enrollment certificate to open a bank account.
If you have questions about financial planning for your studies in Korea, the advisors at Admissions.kr are available to help you navigate the practical side of student life in Korea.
References
- Bank of Korea (한국은행). Payment and settlement statistics. bok.or.kr
- Korea Immigration Service. Alien Registration Card (ARC) guide. hikorea.go.kr
- Korea Tourism Organization. Visitor information — currency and banking. english.visitkorea.or.kr
- Shinhan Bank. Services for foreign nationals. shinhan.com
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