What Money Is KR? An Intro to the South Korean Won

The South Korean Won (KRW) is the official currency of South Korea. It plays a central role in the nation’s economy and global trade. The Won’s stability and convertibility underscore the country’s economic strength and its integration into the international financial system. Its value reflects the dynamism of a nation known for its innovation and industrial output.

Understanding the Korean Won

The Korean Won (KRW) is South Korea’s official currency. Its symbol is ₩, which is commonly seen preceding the numerical amount, such as ₩1,000. While a single won is theoretically divided into 100 jeon, these sub-units are not used in everyday transactions and primarily appear in foreign exchange rate listings. For practical purposes, the smallest circulating denomination is the won itself.

The value of the Korean Won is primarily derived from its status as legal tender, backed by the South Korean government and managed by the Bank of Korea. Established in 1950, the Bank of Korea is the central bank responsible for issuing and regulating the currency, as well as implementing monetary policy. The Won’s stability is a reflection of South Korea’s advanced economy, which is a significant force in international commerce and characterized by strong manufacturing and export sectors. The currency has maintained a relatively stable value against major global currencies, such as the U.S. dollar, over the past decade.

Physical Characteristics of Korean Currency

South Korean currency comprises both banknotes and coins, each featuring distinct designs and security measures. The banknotes are issued in denominations of ₩1,000, ₩5,000, ₩10,000, and ₩50,000. These bills incorporate various security features to deter counterfeiting, including watermarks, security threads, color-shifting ink, and micro-lettering.

Banknotes feature historical figures:
The ₩1,000 note, typically blue, features Yi Hwang, a Joseon Dynasty scholar.
The ₩5,000 note is red and depicts Yi I, a Joseon scholar.
The ₩10,000 note, characterized by its green color, displays the image of King Sejong the Great.
The ₩50,000 note is yellow and features Shin Saimdang, an artist and calligrapher from the Joseon Dynasty.

Coins in circulation include denominations of ₩10, ₩50, ₩100, and ₩500.
The ₩10 coin is copper-colored and features Dabotap Pagoda.
The ₩50 coin displays a stalk of rice.
The ₩100 coin features Admiral Yi Sun-sin.
The ₩500 coin depicts a crane in flight.
While ₩1 and ₩5 coins exist, they are rarely encountered in daily transactions.

Exchanging and Using Korean Won

Acquiring Korean Won for use in South Korea can be done through several convenient methods. Foreign currency can be exchanged at banks, currency exchange booths, or at major international airports such as Incheon International Airport. While airport exchange rates may not always be the most favorable, they provide immediate access to local currency upon arrival.

Using ATMs is another widely available option for withdrawing Won, with machines often found in airports, subway stations, and throughout cities. It is advisable to notify your home bank of your travel plans to avoid potential card issues and to inquire about transaction fees, which typically range from $3 to $5 per withdrawal.

South Korea is largely a cashless society, with electronic payment methods being highly prevalent. Credit and debit cards are widely accepted for transactions at most stores, restaurants, and transportation services. Major international cards like Visa, Mastercard, JCB, and American Express are generally accepted.

Mobile payment systems, such as Kakao Pay and Naver Pay, are also very popular among locals, though their use by foreign visitors may be limited without a local bank account or residency. Despite the widespread use of electronic payments, carrying some physical Korean Won is still beneficial for certain situations. Cash may be preferred for smaller transactions, at traditional markets, or when using taxis in some areas.

Regarding cultural practices, tipping is generally not customary in South Korea and may even be considered impolite, as excellent customer service is considered part of the standard expectation. Service providers do not typically rely on tips for their income.