Travel Like a Local in Korea: Payment and Currency Exchange Tips for Visitors

핵심 요약

Always pay in Korean won (KRW) when using your card.

Exchange only a little cash after comparing rates, and get a transit card for getting around.

Bring your passport when shopping to claim your tax refund on the spot.

More and more visitors to Korea are skipping the famous landmarks in favor of experiencing everyday Korean life. Korea's Ministry of Culture, Sports and Tourism and the Korea Tourism Organization call this trend "Dailycation." Picking out cosmetics at a drugstore, snacking on street food at a traditional market, unwinding by the Han River: the more your trip looks like daily life, the more small payments you make. That is why how you pay and exchange money can make a real difference to your travel budget.

The basics: 3 ways your travel money slips away

The same purchase can cost you more or less depending on how you pay.
Here are the three most common leaks.

Leak	What it is	Typical example	How to avoid it
Dynamic Currency Conversion (DCC)	Paying by card in your home currency instead of Korean won, which adds a conversion markup	Choosing USD or JPY on the card terminal	Always choose Korean won (KRW)
Exchange costs	Rates that vary from place to place	Exchanging a large sum all at once at the airport	Exchange in smaller amounts and compare several places
Missed tax refunds	VAT you could have reclaimed but didn't	Shopping without your passport or without a refund receipt	Carry your passport and shop at on-site refund stores

(Source: Shinhan SOL-git)

The DCC trap

When you pay by card at a store in Korea, the terminal or the cashier may ask, "Would you like to pay in dollars?" Your home currency may feel more familiar, but the conversion is then done at a rate set by the DCC provider, usually with a markup, so it often costs more than paying in Korean won. Choose "KRW" so that your receipt shows the amount in Korean won only.

Pay like a local in 4 steps

The key is simple: pay by card in won, carry a little cash, and always claim your tax refund.

Pay by card in Korean won (KRW)

Most stores, restaurants, and convenience stores in Korea accept overseas cards. For the subway and buses, a transit card is the easiest option (see step 3).
If you are asked to choose a currency at checkout, always choose Korean won (KRW).

Exchange a small amount of cash for markets and street stalls

At some traditional market stalls and small shops, paying in cash may be easier.
Instead of exchanging a large sum at once, exchange only what you need for a few days, and compare rates at bank exchange counters, automated currency exchange kiosks, and other options.

Get a transit card

Rechargeable transit cards make it easy to ride the subway and buses. You can buy and top them up at convenience stores.
Just like locals, you also get fare discounts when transferring between the subway and buses. Note that some tourist transit cards for foreign visitors have different transfer discount terms; the information here applies to standard rechargeable transit cards.

Claim your on-site tax refund when you shop

At stores displaying a "Tax Free" sign, show your passport and the tax refund is deducted from your bill right at the store, so there is no need to claim it at the airport.
As of April 2026, on-site (immediate) tax refunds apply to purchases of less than KRW 1 million per transaction, up to KRW 5 million in total per person.

Q&A

Do I need cash when traveling in Korea?

In most cases, a card is enough. However, cash can come in handy at some traditional market stalls, small restaurants, and when topping up a transit card, so it's a good idea to carry a small amount.

Should I exchange money at the airport or in the city?

A common approach is to exchange just enough at the airport for transportation and meals right after you arrive, then exchange the rest in the city after comparing rates at banks and other options. Rates and fees vary by location and timing, so check in advance.

What if I didn't get the on-site tax refund?

If your purchase exceeded the on-site refund limit or you didn't receive the refund at the store, ask the store for a tax refund receipt and claim the refund at a refund counter or kiosk at the airport when you leave Korea. Make sure to bring your passport when you shop.

What should I do if I'm asked, "Would you like to pay in dollars?"

Simply say, "KRW, please." If you've already been charged in your home currency, you can ask the store to cancel the payment and charge you again in Korean won.

Key takeaways: a checklist before and during your trip

Saving money while traveling isn't about spending less. It's about paying the right way.

Before you leave home, check that your card works for overseas payments
Always choose Korean won (KRW) when paying by card
Exchange only enough cash for a few days, after comparing several places
Get a transit card and keep it topped up
Carry your passport when shopping and claim on-site tax refunds at "Tax Free" stores

Traveling like a Korean isn't about spending less. it's about paying smarter. Pay in won, exchange only what you need, and claim your tax refund on the spot to save on your trip.

*Sources

Korea Tourism Organization announces new travel trend "Dailycation" (Traveli, February 2025, in Korean)
Cruise passengers now eligible for on-site tax refunds, with refund limits (Korea Tax Times, April 3, 2026, in Korean)