Welcome to South Korea in 2026! You’ve booked your flights and planned your itinerary, but there’s one crucial step left: figuring out your money. While Korea is a high-tech society with widespread card usage, cash is still king at traditional markets, for street food, and in smaller shops. Getting the best exchange rate for your cash can save you a significant amount of money to spend on more kimchi jjigae or K-pop merchandise. Navigating the world of currency exchange can be confusing, with options ranging from airports and banks to tiny private booths. This guide will provide you with the top 10 essential tips to confidently exchange your currency for Korean Won (KRW) and maximize your travel budget.
1. Avoid Major Airport Exchanges (for Large Amounts)
Why it’s important: The convenience of exchanging money right after you land at Incheon International Airport (ICN) comes at a steep price. Airport exchange counters, while safe and official, consistently offer some of the worst exchange rates in the country. The rates are set to capitalize on tired, newly-arrived travelers who need immediate cash. While it’s wise to exchange a small amount—perhaps $50-$100 USD—for your initial transportation (like an AREX ticket or T-money card) and a snack, you should avoid converting the bulk of your travel fund here. The difference can be as high as 5-10% compared to better options in the city.
Practical Info: Airport currency exchange booths are operated by major banks like Woori Bank, Shinhan Bank, and KEB Hana Bank. They are located in both the arrivals and departures halls.
Insider Tip: Some banks offer online coupons that can slightly improve the airport exchange rate. Check your bank’s Korean affiliate or major travel forums before you fly. However, even with a coupon, the rate will likely be worse than in Myeongdong.
2. Head to Myeongdong for the Best Rates
Why it’s special: Myeongdong is the undisputed champion of currency exchange in Seoul. This bustling shopping district is packed with dozens of private, licensed money exchangers. The intense competition forces them to offer the most favorable rates in the entire country, often significantly better than banks or airports. You’ll see their daily rates for major currencies like USD, JPY, EUR, and CNY displayed prominently on digital boards outside their shops. For travelers looking to exchange a few hundred dollars or more, making a trip to Myeongdong is a worthwhile investment of time that pays for itself through savings.
Practical Info: The most famous exchangers are located near the Chinese Embassy and along the main shopping streets. Look for small signs that say ‘Money Exchange’ or ‘환전’.
Insider Tip: Don’t just go to the first one you see. Walk around and compare the rates on the digital boards of 3-4 different exchangers within a block. The rates can vary slightly even between neighboring booths. The one with the longest line is often, but not always, the best.
3. Always Bring Your Passport
Why it’s crucial: This is a non-negotiable rule. South Korean law requires all foreign currency exchange transactions to be documented, and this requires official photo identification. A physical passport is the only universally accepted form of ID for this purpose. A driver’s license from your home country, a digital copy of your passport on your phone, or a photocopy will almost always be rejected. Forgetting your passport means a wasted trip to the exchange office. Make it a habit to carry your passport with you on the day you plan to exchange money to avoid any disappointment or delays.
Practical Info: This rule applies everywhere, from official banks and airport counters to the small private booths in Myeongdong. The clerk will take a moment to record your passport number for the transaction.
Insider Tip: Keep your passport in a secure travel pouch or a zipped inner pocket. After the transaction, double-check that the clerk has returned your passport to you before you leave the counter. It’s a common item for travelers to accidentally leave behind.
4. Understand the ‘Spread’ (Buy vs. Sell)
Why it’s important: When you look at an exchange rate board, you’ll see two numbers for each currency: a ‘buying’ rate and a ‘selling’ rate. This can be confusing. Remember this simple rule: the exchange booth is ‘buying’ your foreign currency and ‘selling’ you Korean Won. Therefore, you should always look at the ‘buying’ rate for your currency (e.g., USD, EUR). A higher ‘buying’ rate is better for you, as it means you get more Won for each unit of your foreign currency. The difference between the buying and selling price is called the ‘spread,’ which is how the business makes its profit. A smaller spread generally indicates a more competitive rate.
Practical Info: Boards will typically have columns labeled ‘We Buy’ and ‘We Sell’. Focus on the ‘We Buy’ column for your home currency.
Insider Tip: Use a currency converter app on your phone to quickly check the mid-market rate (the real rate without any fees). This gives you a baseline to judge how good the offered ‘buying’ rate actually is. A rate within 1-2% of the mid-market rate is considered excellent.
5. Check Rates Online Before You Go
Why it’s smart: Knowledge is power, especially when it comes to money. Before you even head out, you can get a good idea of the best rates available. Several Korean websites and apps provide real-time comparisons of rates at different private exchangers, particularly in Myeongdong. While the sites are often in Korean, you can easily spot your country’s flag and the corresponding numbers. This allows you to identify which specific money exchange booth (e.g., ‘Myeongdong First Exchange,’ ‘Embassy Exchange’) is offering the top rate for the day, saving you the time of walking around and comparing boards in person.
Practical Info: Search for terms like ‘Myeongdong exchange rate’ or use apps that compare rates. Naver, Korea’s top search portal, also has a currency function that shows bank rates.
Insider Tip: Take a screenshot of the day’s best rate on your phone. While rates can fluctuate slightly during the day, this gives you a target number to look for when you arrive in Myeongdong. If a booth’s rate is significantly lower, you know to move on.
6. Consider Using a Global ATM Card
Why it’s convenient: For many travelers, using an ATM is the easiest way to get Korean Won. Most ATMs in Korea, especially those at banks and in subway stations, accept foreign cards with logos like Plus, Cirrus, or Star. This saves you the hassle of carrying large amounts of foreign cash. The exchange rates offered by ATM networks are typically very competitive, often close to the mid-market rate. However, the convenience comes with potential fees: your home bank might charge a foreign transaction fee, and the Korean ATM provider might add its own service fee.
Practical Info: Look for ATMs labeled ‘Global ATM’. Major banks like KB Kookmin, Shinhan, and Woori are reliable choices. Fees can range from 3,000 to 5,000 KRW per transaction.
Insider Tip: Before your trip, find a bank or credit union in your home country that offers no foreign transaction fees and reimburses international ATM fees. Cards from providers like Charles Schwab, Revolut, or Wise are popular for this. This strategy can often be cheaper and more secure than exchanging cash.
7. Banks Are a Safe (But Slower) Option
Why it’s reliable: If you’re wary of private exchangers or aren’t in Seoul, a traditional bank is your safest bet. All major Korean banks (KEB Hana, Woori, Shinhan, KB Kookmin) offer currency exchange services during business hours. The process is official, secure, and transparent. However, the trade-off is that their exchange rates are generally less favorable than those in Myeongdong, and the process can be more time-consuming. You’ll likely have to take a number from a ticketing machine and wait for a teller, which can take time out of your travel schedule.
Practical Info: Bank business hours are typically 9:00 AM to 4:00 PM on weekdays and they are closed on weekends and public holidays. You will need your physical passport.
Insider Tip: Banks are your best option for exchanging less common currencies that private exchangers in Myeongdong might not deal with. If you are coming from a country outside of the G20, a major bank is your most reliable choice for a successful transaction.
8. Bring Crisp, New, Large-Denomination Bills
Why it matters: The condition and denomination of your foreign banknotes can affect your exchange rate. Private money exchangers, in particular, prefer new, crisp, and undamaged bills. They may offer a slightly lower rate or even refuse to accept bills that are old, torn, heavily creased, or written on. Furthermore, you will almost always receive a better rate for larger denominations. Exchanging a single $100 USD bill will often yield a better rate than exchanging five $20 USD bills. This is because larger bills are easier and cheaper for the exchangers to process and handle.
Practical Info: Before you leave your home country, visit your bank and ask for new, high-denomination notes for your trip to Korea.
Insider Tip: This applies mostly to US Dollars but can be true for other major currencies as well. If you have a mix of old and new bills, present the new, large bills first to lock in the best rate shown on the board.
9. Exchanging Money Outside of Seoul
Why it’s different: If your travels take you to other amazing Korean cities like Busan, Gyeongju, or Jeonju, your exchange options will be more limited. You won’t find competitive private exchange districts like Myeongdong. In these cities, your primary options will be the local branches of major banks. While the rates won’t be as good as in Seoul, they are your most reliable and secure choice. Some larger department stores or tourist information centers in major cities may offer exchange services, but banks remain the standard. Plan ahead and exchange a sufficient amount of money in Seoul if you can.
Practical Info: Locate major banks near train stations or central downtown areas in provincial cities. Remember their limited hours (Mon-Fri, 9 AM – 4 PM).
Insider Tip: In Busan, there is a small cluster of private money exchangers near the port area in Nampo-dong, sometimes referred to as ‘Texas Street’. While not as competitive as Myeongdong, the rates here are often better than Busan banks.
10. Handle Leftover Won Before Departure
Why it’s important: Korean Won is not a major global currency, and you will likely get a very poor exchange rate if you try to convert it back to your home currency outside of Korea. It’s best to manage your leftover cash before you fly home. You have two main options: spend it or exchange it. You can use your remaining Won on last-minute souvenirs, snacks, or a meal at Incheon Airport, which has numerous shops and restaurants. Alternatively, you can exchange it back to your home currency at one of the bank counters in the airport’s departure hall. The rates will not be great, but it’s better than being stuck with unusable currency.
Practical Info: Keep all your original exchange receipts. Some counters may require them to exchange Won back to a foreign currency.
Insider Tip: The most efficient way to use up small amounts of leftover Won is at a convenience store like CU or GS25. You can pay for an item with your remaining cash and put the rest on your credit card—a strategy known as a ‘split payment’.
Frequently Asked Questions (FAQ)
Q: Is it better to exchange money in my home country or in South Korea?
A: It is almost always better to exchange your money after you arrive in South Korea. The exchange rates for Korean Won are significantly more competitive within Korea itself, especially in areas like Myeongdong in Seoul.
Q: Can I use US dollars or other foreign currencies directly in shops?
A: No. The official currency is the Korean Won (KRW), and you must use it for nearly all transactions. Some duty-free shops or high-end department stores might accept USD, but the exchange rate will be very unfavorable. Always pay in Won.
Q: Are credit cards widely accepted in Korea?
A: Yes, credit cards (Visa, Mastercard) are widely accepted in most hotels, restaurants, and shops. However, you will absolutely need cash for public transportation top-ups (T-money), street food vendors, and shopping at traditional markets like Gwangjang or Namdaemun Market.
Q: Is there a limit to how much currency I can exchange?
A: For typical tourist amounts (up to a few thousand dollars), there are generally no issues. However, for very large transactions (often over $10,000 USD), additional paperwork and reporting may be required by law. Always carry your passport for every transaction, regardless of the amount.
Conclusion
Mastering currency exchange in South Korea is a simple way to make your travel budget go further. By skipping the poor rates at the airport, heading to competitive areas like Myeongdong with your passport and crisp banknotes, and understanding your options, you’ll be well-equipped for your 2026 adventure. A smart combination of exchanging cash for the best rates and using a low-fee card for payments will give you the financial flexibility to enjoy everything this incredible country has to offer. Have a fantastic trip!
Tags: #currencyexchange #SouthKoreatravel #SeoulMyeongdong #KoreanWon #traveltipsKorea #moneyinKorea #foreignexchange #KRW #travelguide2026 #IncheonAirportexchange
