Best Places to Exchange Korean Currency: A Comprehensive Guide

When traveling to South Korea or dealing with Korean currency, finding the best exchange rates can make a significant difference in your budget. This guide provides detailed insights into the best places to exchange Korean won (KRW), both domestically and internationally, and offers tips on how to get the most favorable rates.

Understanding the Korean Won (KRW)

Before diving into where to exchange your currency, it's essential to understand the basics of the Korean won. The Korean won is the official currency of South Korea, represented by the symbol ₩ and the currency code KRW. The won is subdivided into 100 jeon, but due to inflation, the jeon is rarely used in everyday transactions.

The exchange rate for the Korean won fluctuates regularly based on the global financial markets. As of the latest data, 1 USD is approximately equivalent to 1,200 KRW, but this can vary. Understanding the current exchange rate will help you assess whether you're getting a good deal when exchanging currency.

Where to Exchange Korean Won: Options

1. Banks
   Banks are often the first choice for many travelers when exchanging currency. In South Korea, major banks like KEB Hana Bank, Woori Bank, and Shinhan Bank offer competitive exchange rates and are widely available in cities and airports. When using banks, it's essential to compare the rates and fees, as they can vary significantly between institutions.

2. Currency Exchange Counters at Airports
   Currency exchange counters at airports like Incheon International Airport or Gimpo Airport are convenient but typically offer less favorable exchange rates compared to banks or city centers. While these counters are convenient, especially for small amounts, it's advisable to exchange only a minimal amount for immediate expenses and find better rates elsewhere.

3. Hotels
   Some high-end hotels in South Korea provide currency exchange services. While convenient, these services often come with high fees and less favorable rates. It is recommended to use hotel exchanges only as a last resort.

4. ATM Withdrawals
   ATMs are a practical option for withdrawing Korean won directly from your bank account. Most ATMs in South Korea accept foreign cards, especially those associated with international networks like Visa, Mastercard, or Cirrus. The advantage of using ATMs is that you can often get a better exchange rate compared to currency exchange counters, but be mindful of potential ATM fees and foreign transaction fees imposed by your home bank.

5. Money Changers in City Centers
   Money changers in popular tourist areas, such as Myeongdong in Seoul, often offer some of the best exchange rates. These money changers compete with each other, driving rates down and making it a favorable option for tourists. However, it's important to compare rates among several vendors to ensure you’re getting the best deal.

6. Online Currency Exchange Platforms
   Recently, online platforms have emerged as a convenient and competitive option for currency exchange. Services like TransferWise (now Wise), OFX, and Revolut offer competitive rates with lower fees compared to traditional banks. These platforms allow you to exchange currency and transfer funds directly to your South Korean bank account, which can be a great option if you have a Korean bank account.

Tips for Getting the Best Exchange Rate

• Monitor Exchange Rates: Exchange rates fluctuate daily, so it's wise to monitor the rates before you travel. Using apps or websites like XE or OANDA can help you track real-time exchange rates.

• Avoid Exchanging at Airports: As mentioned, airport exchange counters often have higher fees and less favorable rates. Exchange a small amount for immediate needs and seek better rates in the city.

• Use ATMs Wisely: While ATMs can offer good exchange rates, be mindful of the fees. Some banks, like Citibank, offer global ATM networks with lower fees. Consider opening an account with a bank that has partnerships with South Korean banks to minimize fees.

• Compare Rates: Whether using banks, money changers, or online platforms, always compare rates. Even a small difference in the exchange rate can have a significant impact on large amounts of money.

• Check for Hidden Fees: Some exchange services may advertise competitive rates but add hidden fees or commissions. Always ask for the full breakdown of costs before proceeding with the exchange.

Currency Exchange Scams to Avoid

While South Korea is generally a safe country, it’s important to be aware of potential scams, especially when exchanging large amounts of money. Be cautious of:

• Too-Good-To-Be-True Rates: If an exchange rate seems too good to be true, it probably is. Ensure that the service is reputable before exchanging money.
• Counterfeit Bills: Although rare, there is a risk of receiving counterfeit bills from non-reputable money changers. Always count and inspect your money before leaving the counter.
• Unlicensed Money Changers: Stick to licensed and well-known exchange services to avoid potential scams.

Table: Comparison of Exchange Rates and Fees

Exchange Method	Average Exchange Rate	Fees	Convenience Level
Banks	Close to market rate	Low to medium	High
Airport Counters	1-3% below market	Medium to high	Very High
Hotels	2-4% below market	High	High
ATMs	Market rate	Low to medium	High
Money Changers (City)	Close to market rate	Low	Medium
Online Platforms	Market rate	Low	High

Conclusion

Exchanging Korean won can be straightforward if you know where to go and what to look out for. By following the tips outlined in this guide and comparing rates and fees across different platforms, you can ensure that you get the best value for your money when dealing with Korean currency. Whether you’re a tourist visiting South Korea or conducting business, being informed about your currency exchange options can save you both time and money.