Money and Banking in Korea

Home

Money and Banking

Money and Banking in Korea

Korea Won

In Korean, the money is called Won, Korean Won. If you are just arriving in Korea, change a couple hundred dollars on the way in and if you are just leaving, be sure to get rid of all your Won because this will be your last chance.

Korean Won comes in four notes: 1000, 5000 and 10000 the brand new 50,000 Won note. You can also get checks for 100,000 or 1,000,000. Find out more about Money in Korea in our articles.

3 Ways to Send Money Home

Korea Information - Money and Banking in Korea

As a teacher in Korea you have several options to get money home.

bank transfer
Western Union
certified bank cheque

The New 50,000 Won Note in Korea

Korea Information - Money and Banking in Korea

The long awaited 50,000 Won note is now available to the public as of June 23rd and you can be sure it is going to be popular.

For teachers it means you don't need a briefcase or a backpack to collect your salary or head out for a night on the town and for Koreans it is very very long awaited. The highest note previously was 10,000 Won and that was introduced back in 1973.

Sending Money Home by Western Union

Korea Information - Money and Banking in Korea

Western Union is a fast and efficient was to send money BUT someone has to be available to pick it up and process it on the other end. Bank transfers are far more appealing in most cases because you can access bank account information online. There is a standard fee of about $70 for this service and they make a bit on the exchange rate (which is never as good as the posted bank rates).

Things you will need:

Exchange Rates

Korea Information - Money and Banking in Korea

It is really important to note that exchange rates vary from bank to bank AND no matter what bank you go to, you can NEGOTIATE on the rate they provide. As you unbdoubtedly know, image is important. Dress the part. Whenever I went in to send money home I wore a suit. I always got preferred treatment, IE) ushered to the manager's office, coffee brought in to me and I always got better than posted rates on my exchange transfers. Try it...

Limits When You Send Money Home

Korea Information - Money and Banking in Korea

Legally there are certain limitations as to the amount of money you can send home while you are working in Korea. There are a couple reasons for this:

the Korean government would much prefer that you spend your money in Korea rather than take it all back to where ever you came from.
the Korean government doesn't want you to be working illegally.

For those of us on the standard one-year contract with a work visa to go along with it, you are permitted to send home 60% of your earnings. This percentage is not certain... some banks allow you to send 80% others 100% others don't care and don't stamp your passport...

Starter Money for Korea

Korea Information - Money and Banking in Korea

When coming to Korea, make sure to bring along some starter money as you will likely not receive any pay for the first month of your time here. For ease of transport, peace of mind, and ease of exchange, I recommend using American dollar travelers cheques (checks) and bringing a couple hundred dollars to exchange into Won when you first arrive - the airport is generally the worst place to get a good exchange rate but sometimes you just have to deal.

Personally I recommend coming with about $500 in TC (Travelers Cheques) and another $200 in cash to change at the airport.

Spending your Won

Korea Information - Money and Banking in Korea

Pay day is fun - especially for those of you who are going to be paid in cash... remember that the highest bill denonmination is 10,000.... how many does it take to get you 1,000,000.... Love it! When I made my first million in Korea...

All bills are pretty much equal. It can be good to have a collection of 1000 Won notes for making exact change. 5000 Won notes seem to be less common than the others, but still aren't exactly rare, and the 10000 Won notes will be the green that fuels your life. Use them all well, or at least entertainingly.

Getting Paid in Korea

Korea Information - Money and Banking in Korea

Koreans typically deal in cash. This will be readily apparent on payday. Do not be alarmed if, as happened to me, you are summoned to a darkened office with your school's director and s/he smiles a bit disconcertingly at you while tapping a thick envelope on the desk. You are just getting paid. There is something extremely satisfying about receiving an envelope stuffed with bills every month, though. In most cases your money will be directly deposited to your account but it still happens that you sometimes will get paid in cash and it is a pretty cool feeling with a 2 million wad of Won in your pocket. In the past, this was paid out in 10,000 Won notes...imagine, 2,000,000 Won in 10,000 Won notes... you don't need to be a mathematician to figure out that that many bills won't fit into your wallet.

With the introduction of the 50,000 Won note managing your salary in Won is a bit more feasible. Although some schools still pay in cash, the standard is shifting to direct deposits into your bank account. It still feels pretty good to have a couple million in your hands!