How to get the cheapest currency exchange in South Korea

Traveling to South Korea just got a whole lot easier. Direct flights from countries farther afield are increasing, and there's no continent that doesn't have a direct flight to South Korea. But why are so many people heading to this small country in Northeast Asia, and what should you expect when you get there?

Things to prepare for when you go to Korea

I've said it before, but there's not much reason to spend cash in Korean cities. But if you want to travel on a budget, that's a different story. If you exchange money in South Korea, especially in Myeongdong, you'll get a very good exchange rate when buying Korean won.

You may have heard of the 110% exchange rate before. It doesn't happen often, but it means you can buy Korean won cheaper than the base rate.

Bring cash, exchange it, and put it on a prepaid card, or buy a preloaded prepaid card, except for services you've already booked in your home country. If you plan to spend a lot of money in Korea, it's a good idea to think about The fees you'll incur as you spend.

Some cards charge a per-payment fee, which can add up before you know it. It's hard to know when what started out as a fun trip turned into a fee battle.

With that in mind, here's how to exchange money in South Korea.

There are a few ways to do this, and we'll cover them below.

The most convenient way to exchange money at the airport

The first option is to exchange your money at a bank in the airport upon arrival. You can show your passport to the exchange booth of any Korean bank located in the airport and exchange money in no time. However, it's quite far from the city center, so the fees tend to be quite high.

According to Woori Bank, one of South Korea's forex banks, as of July 11, you can get 1317 won per USD at Incheon Airport to convert USD to KRW. You'll also notice that the exchange rate is different from local banks.

If you're traveling for two days and three nights, a generous $300 in currency exchange will cost you roughly $20,000 compared to a more favorable exchange rate. That's a lot of money for one meal.

So, while it may be convenient, it's not recommended. If you need cash, keep it small.

City Bank

The second option is to exchange money at a local bank.

These days, most banks in tourist destinations have multilingual staff. It's great to be able to show your passport and exchange money comfortably without having to speak a foreign language.

However, most banks in Korea close at 4pm, even though you'd normally want to travel at a leisurely pace. You've flown in, you want to take a break, and you want to exchange money at your leisure, but the banks don't allow you to take a break.

That doesn't mean you shouldn't use hotel currency exchanges or hotel kiosks, though, because it's sad to think about how much money you're throwing away on not-so-cheap exchanges.

Send money online

The most convenient thing about sending money online is that you can do it from your home country. With a global money transfer service, you can deposit cash into an account in the recipient's country and withdraw it instantly at close to the actual exchange rate.

However, as I just added, you need to have an account in South Korea, and it's subject to the ATM withdrawal fee policy of the bank the account is tied to, so you may not be able to withdraw as much as you think you can.

So if you're not used to it, chances are you'd rather bring cash into the country. I think it's better than making a small mistake and having a bad trip.

Private currency exchange

Private currency exchanges in neighborhoods like Myeongdong and Itaewon often offer better rates than banks and airports. Earlier, I mentioned that Woori Bank's booth at Incheon International Airport charges 1317 won per USD to convert USD to KRW, but if you exchange at a private exchange on the same day, the difference is almost 60 won per USD. That's a lot of money if you're looking to exchange a large amount of money.

They use the same counters as banks, and you can be sure to get a receipt, making them a second bank for foreigners who don't have a home bank.

There's usually an ATM nearby, although you'll have to bring cash with you, which is a bit of a disadvantage. If you want to exchange money cheaply, try a currency exchange.

Even if it's not a big amount of money, I feel like packing these little things adds up to a little bit of joy.

I hope this happens to you on your travels.