At some point after you arrive in Korea, you’ll have to exchange your money for Korean currency. You’ll be able to exchange your currency at the booths in the airport, in the lobbies of some of the major hotels throughout Korea and at most banks. Banks usually offer the best rates, but you’d be advised to shop around a bit first. So after you hand in your dollars, loonies or pounds, what should you expect to receive?
The unit of currency used in Korea is the won, and Korean banknotes are issued in three denominations: the 1,000 won, 5,000 won and 10,000 won notes. There is some speculation that within the not too distant future, a larger bill will be released. For now at least, the 10,000 won bill is the largest used daily, though banks do offer a checks (수표 “soo-pyo”) that range in value from 100,000 won to 10,000,000 won. Legally employed residents can cash these checks virtually anywhere, as long as you present your ID card and remember to sign the back.
There are also four coins used in Korea: the 500 won piece, the 100 won piece, the 50 won piece and the 10 won piece, which has about the same value as a penny. All four of the coins can be used in most vending machines.
The easiest way to think of Korean currency in terms of value is that 1,000 won = $1.00 US. That is just an approximation, as the dollar tends to fluctuate against the won. For a more concrete figure, check out www.xe.com/ucc which gives a simple conversion among most of the world’s currencies.
Counting the money in Korean is also relatively easy to master. What you need to remember is to count the money in terms of the specific bills (which, coincidently, is how the Koreans count numbers higher than 10,000; they count large numbers in units of 10,000).
The 1,000 won bill is called 천원 (“chawn-won”) and the 10,000 won bill is 만원 (“mahn-won”).
So, if you want to express that you have 50,000 won in your wallet, you’d say the following:
나는 오 만원이 있어요. Na-neun oh mahn-won-ee ees-saw-yo.
That’s literally, “I five ten thousand won have.” Same goes for expressing smaller amounts (ex: 4,000 won is four thousand won (사 천원 “sah chawn-won”)). For counting the bills, you use the Sino-Korean numbers (LINK TO THE LANGUAGE SECTION).
Korean Bank Accounts
With the 10,000 won bill being the largest denomination, a trip to an ATM or, even better, your first payday, can be quite a hassle. While it is nice to hold a fat chunk of bills for the novelty, it isn’t advised to carry around cash like that (even while walking the streets of Seoul, where crime is at a minimum). The best thing to do would be to open a Korean bank account.The Korean word for bank is 은행 (“eun-heyng.”) In the larger cities, tellers will have a minimal grasp of English and, after a few miscues, you should be able to take care of daily transactions. However, for any business requiring more than a three minute exchange of information (as in opening an account or sending money home) it’s always wise to go with a friend fluent in Korean or someone from your school.
To open a Korean bank account, you’ll need to bring your passport, alien registration card, an opening deposit and a good sense of humor. Korean banks have ATM cards (캐시 카드 “cae-shee cah-duh”) and you’ll need these to take money out of the ATMs. However, you need to specify that you would like one, as they don’t grant the cards automatically. Its actually a better idea to ask directly for a Debit/Check Card (체크 카드 “che-kuh cah-duh”) as these can be used at most restaurants and businesses in the big cities. After signing all the forms and depositing your money, you’ll receive a bank book. Don’t lose this, as it contains your bank information and also shows how much you have in your account. Then, whenever you come to the bank to do business, simply give it to the teller and they’ll update it for you (you can do it at your bank’s ATMs as well, but this way is simply easier!).
To send money home, again you’ll need your passport, alien registration card, your home bank’s information (address, routing number, account number, etc.), your Korean bank account number and your translating friend. The overall process is pretty standard from bank to bank, though you might want to browse various banks to get the best rates (you can refer to the individual banks’ websites at the end of this section for more details). The whole process will take about 15 minutes and then your transfer will arrive, minus the usual fees, in your home bank account within three business days. One thing to keep in mind is that when you complete your first transaction, you’ll receive a receipt showing all the needed information for a transaction. Keep this paper safe; you don’t want others stealing your identity AND you can hand this to the teller the next time you want to transfer money and things will go a whole lot more smoothly.
ATMs (현금 자동입출금기)
ATMs can be found in a variety of places, from little booths seemingly on the street to inside convenience stores. Most cash machines charge a withdrawal fee of around 1,300 won (less if it’s the ATM at your bank) and they close at or around midnight. There are more and more machines that can accept foreign cards, but it’s wise to check before you are in a position where you NEED the money (say, before a big meal or a night out). More machines too are offering English menus, but these are usually in the big cities.Credit Cards (신용카드)
Korean banks do offer credit cards, each with various interest rates and percentages and all which offer a discount at some restaurants or attractions on the peninsula. The biggest problem with these cards is that banks do not offer credit cards to native English teachers who are residing in Korea. If they do, there are usually some outrageous fees attached to holding the card which makes them not even worth the trouble. If you need a card to get around Korea, then go for the Debit/Check card mentioned above. For all others, VISA and MasterCard are becoming more widely accepted. Before you come, don’t forget to inform your credit card company of your impending move to avoid a call from the fraud department of your company. Also, you may not be able to use your credit cards at all small businesses and restaurants, especially in rural areas. Luckily, the places that do accept VISA and MasterCard usually do put the stickers of the cards they accept on the front door.
Banks of Korea
Below are links to some of the banks found throughout Korea. Not all of the sites are in English and all of them will require some sort of security software to open the pages.
- Woori Bank
- Korea Exchange Bank.
- Shinhan Bank
- Hana Bank : You’ll need your Korean friend for this one.
- Citi Bank
- Kookmin Bank
- Kiup Bank : Again, your Korean friend should be close when you attempt this.
- Nonghyup Bank
- SC Jeil Bank
