When planning a trip to South Korea, one of the first questions that comes to mind is how to handle payments, especially for accommodation. With multiple payment options available—ranging from credit cards to mobile payments and cash—navigating which method is best can be confusing for travelers. South Korea is known for its advanced technology and growing reliance on digital transactions, but that doesn’t mean traditional methods like cash or credit cards are obsolete.
Credit Cards: A Reliable and Widely Accepted Option
Using a credit card to pay (신용카드 결제) for accommodation in South Korea is a convenient and widely accepted method. In major cities like Seoul and Busan, most hotels, guesthouses, and even hostels accept international credit cards such as Visa, MasterCard, and American Express. Credit cards are especially useful when booking accommodation through online platforms like Booking.com, Airbnb, or Agoda, allowing you to reserve rooms in advance.
Benefits of Paying with Credit Cards
- Widespread Acceptance: Credit cards are accepted almost everywhere in urban areas, including hotels and guesthouses, making it easy for travelers to book accommodations without needing cash upfront.
- Foreign Transaction Perks: Many travel credit cards offer benefits like no foreign transaction fees, travel insurance, or rewards points that can be accrued with each booking. If you’re using a card designed for international use, these perks can save you money during your trip.
- Easy Booking and Refunds: Using a credit card for your stay offers additional security. It’s easier to track transactions, and in case of any issues (such as cancellations), refunds can be processed directly to your account.
Downsides of Using Credit Cards
- Dynamic Currency Conversion Fees: Some hotels may offer you the option to pay in your home currency instead of Korean won. This option, known as dynamic currency conversion, typically involves unfavorable exchange rates and hidden fees. To avoid this, always choose to pay in Korean won.
- Cashing out Credit Cards: While credit cards offer the convenience of payment, using them to withdraw cash from ATMs in South Korea can be costly. Credit card cash advances come with high fees and interest rates, so if you need physical cash, it’s better to use a debit card or exchange currency beforehand.
Cash: Still a Trusted Backup
Although South Korea has embraced digital payments, cash is still widely used, especially outside of urban centers and in smaller establishments. Some guesthouses, hostels, or family-owned accommodations in rural areas might prefer cash or even require it. Having some Korean won on hand is always a smart idea, especially when visiting smaller cities or towns.
Benefits of Paying with Cash
- No Transaction Fees: One of the major advantages of paying with cash is that there are no additional fees involved. You pay the exact amount without worrying about exchange rate markups or credit card fees.
- Widely Accepted in Rural Areas: While credit cards are standard in cities, some smaller guesthouses, motels, or traditional inns (hanoks) in less touristy areas might only accept cash. Having cash ensures that you won’t run into issues when it’s time to settle your bill.
- Budget Control: For travelers on a budget, paying with cash can help manage expenses more effectively. When using cash, you’re more aware of how much you’re spending, which can prevent overspending on accommodations or other expenses during your trip.
Downsides of Using Cash
- Carrying Large Sums of Money: Paying for multiple nights of accommodation in cash might require carrying larger amounts of money, which can be risky, especially in crowded areas. Travelers should always keep cash secure to avoid theft or loss.
- Finding ATMs and Fees: While ATMs are readily available in cities, foreign cards might not work in all machines, and withdrawal fees can add up. If you need cash frequently, check with your bank for ATMs that charge lower fees or consider converting your currency beforehand to avoid cash conversion fees.
Mobile Payments: The Future of Travel in South Korea
South Korea is a global leader in mobile payment technology, with platforms like KakaoPay, Samsung Pay, and Naver Pay becoming more popular across the country. For locals, mobile payments are a quick and easy way to pay for everyday purchases, including hotel stays, meals, and transportation. While mobile payments are commonly accepted in urban areas, they may not be as accessible for foreign travelers who do not have South Korean bank accounts.
Conclusion:
When paying for accommodation in South Korea, each method—credit card, cash, or mobile payments—has its pros and cons. Credit cards remain highly useful for booking accommodations online and are widely accepted in hotels and guesthouses, especially in cities.
Having some cash on hand is always a good backup, particularly when traveling outside the major cities or staying in smaller guesthouses. Mobile payments offer unmatched convenience but are largely limited to those with local accounts.