My BIL and his son will be staying a few days is Soul before their tour of China starts. I’m wondering if using US money on the local economy is an issue. I know they might not get the best rate, but I don’t see them spending a great amount either. With the US Military presence as well as business travelers we’re thinking it wouldn’t be an issue.
Anyone know for sure?
It’s “Seoul”. Why wouldn’t they just change the amount they think they’ll need into Korean Won when they arrive?
Their hotel might accept US Dollars and large department stores etc, but you wouldn’t be able to use US dollars for every transaction.
I don’t remember seeing any places in Korea that accepted dollars. There might be some niche places that do but no, they should expect to have to change currencies.
Not a chance. Florida has loads of British tourists, but how many places in Florida accept British Pounds? it is very easy to get Korean Won at the airport and at ATMs all over the city.
It’s possible that a few tourist-oriented outlets would accept dollars. But in doing so they will have to accept the very inconvenience and expense of exchanging the cash which the tourist is seeking to avoid. And why would they do that for free? So the tourist will end up paying (a) for the goods or services that he is buying, and (b) for the services of somebody to change cash on his behalf.
And not too many tourists will want to pay for this. They’re going to have to get some local currency, to pay for busfares, taxi fares, coffee, lunches, museum entries or whatever it is they’re going to do on their holiday. Given that, there’s no particular advantage to changing some of your cash yourself, and paying someone else to change the rest.
And because not many tourists will want to do this, the cost to a busienss of accepting US currency and exchanging it (including the cost of the exchange rate risk) will have to be spread over the comparatively small number of tourists paying in US currency.
All in all, this is not likely to be good value to the tourist. Even if you see a business willing to accept US currency, you’re probably better off paying in local currency.
For the vast majority of the country, you must use Korean money if you purchase something in cash here. If you prefer, you may use your credit card; however, the credit receipt will most likely be in Korean (except at McDonald’s where it’s always in English*) and the purchase will be recorded in South Korean Won. You will then have to wait for your monthly statement (or check online) to see what the actual dollar amount was as the exchange rate may very well be different on the day the bank processes the transaction than on the day you made your purchase. Almost every business I’ve been in has accepted credit cards. The ones that don’t are just a few of the very small restaurants such as the kimbab places.
There are more than a few business establishments in the immediate vicinity of the US military bases. Some of these businesses will accept dollars if you pay for your goods in cash. The drawback is that they will use an exchange rate that may not be that favorable to you. It certainly will not be a better exchange rate than that at the banks here. If you pay with your credit card, it will be recorded in Won as I mentioned in the paragraph above.
The US military presence isn’t all that great outside of certain areas.
*I’m still amused that McDonald’s does not produce receipts in Korean.
Interestingly, in the north, there are some shops which do not accept local currency at all, but only US dollars and Japanese yen. These are probably analogous to the old Intershops of East Germany and Beryozkas of the USSR.
Unless there is a sign at the store’s counter giving an explicit list of conversion exchange rates for purchases there in various foreign currencies, never try to pay in a foreign country for purchases with American currency. It’s about the most obnoxious thing you can do. If there is a sign giving rates in various foreign currencies, it usually means that the store is selling souvenirs that are intended for tourists. Often they will also offer to ship the souvenir back home for you. In any case, the exchange rate they offer and the amount they charge for that shipping will be inflated to allow them to make a healthy profit on the transaction.
Trying to pay with American currency is the equivalent of shouting at a foreign clerk in English and assuming that they must really understand you because, hey, those funny noises they make aren’t a real language but just some silly babble they’ve created deliberately to annoy you. Trying to pay for something in American currency is implicitly saying that you think their currency is just some funny money they play games with, while of course American money is the only thing that’s worth anything. If you’re lucky, they won’t beat you up before throwing you out of their store.
There are a few countries which officially use a foreign currency for some reason, sometimes because they have no currency of their own and sometimes because they’re willing to have a foreign currency officially accepted:
Thanks for the information. I’ll pass them the word. I’d suggested they change some money in LA before boarding the plane.
:rolleyes:
“I’ll take ‘Anti-Ugly American Hyperbole’ for $200, please, Alex…”
Just to tack on, it’s also two syllables: Seo-ul.
Though it sounds very much like “soul”. And I doubt most Americans would be able to hear or pronounce the difference on a first try.
I guess the question is answered, but I was curious about why the OP thought American currency would be any good. Korea isn’t some third world Communist hellhole without its own currency. It’s got one of the bigger economies in the world. It’s not like you could use American dollars in most places in Greece, either.
But the ugly American thing is just as bad. Most Korean know what American currency looks like. And they’re smart enough to figure out you’re probably a confused American if you don’t speak the language and have American money. They’re usually also polite enough to indicate they don’t take it and will try to help, instead of giving the bum’s rush.
Don’t bother. Tell them to go to an ATM once they arrive in South Korea. The exchange rates and fees for withdrawing in local currency will be as good as one can get.
Honestly, this concern about them using won is a non-issue. If they withdraw cash from an ATM, they won’t be losing much money at all. And if they withdraw too much, they can exchange it to dollars or Chinese yuan at the airport as they’re flying out to begin their tour. That exchange will probably cost a little bit of money, but the fees are by no means exorbitant or unreasonable.
Uhh Wendell, Some places actually prefer U.S. Dollars and will give you a better deal if you pay in them. Some places have a black market of U.S. currency and by spending dollars with some of the poorest shopkeepers you are helping these people in a way that a suitcase of their own money never could.
I don’t think Korea is one of those places, but it is not the end of the world to ask
Definitely don’t get involved with the black market here. The authorities have recently been arresting folks doing that. Bit of advice I always give to people traveling outside of their own countries: Even if you disagree with the local law, do not break the law in a foreign country.
And to echo another poster upthread: South Korea is not some 3rd world back alley now. It’s a modern country with a fairly healthy economy. This is no longer the Korea of the 1950s.
I was in Korea recently and will be there again soon. With the exception of totally obscure and irrelevant instances:
They do not take American money.
End of story.
When I was in North Korea, I mostly used Chinese Yuan except for the elevator at the Juche tower which is 5 Euros.
I think that more or less got across previously. The thrust is now, why on earth would this question arise? How could you imagine the answer could be “yes”, just because there are 30,000 US service people in a population of 50 million?
Not all Korean ATMs accept foreign cards.
The ATMs here in South Korea that do accept foreign cards are labeled “Global ATM” in English.
Many Carribean island economies are almost completely dependent on US tourists. Almost any tourist-based store will be happy to take US dollars, though they’ll give you a terrible exchange rate and most likely give you change in the local currency. So lots of Americans travel to the Carribean, often as their first or only international travel, use US cash, and get the impression the rest of the world operates the same way as well.