Korea – the land where cash is no longer necessary.

 

Why You Don’t Need Cash in Korea – The Land of Credit Cards & Mobile Payments

One of the most surprising things foreigners notice when living in Korea is this: “You almost never need cash here!”

And it’s true.  I only carry my smartphone with me—an Android phone with Samsung Pay.
For lunch, my colleagues and I settle the bill using KakaoPay. I also send money to my parents through bank transfers and even give my 12-year-old daughter her allowance via KakaoBank.

 

kakao bank

 

 In Korea, cash has long become an afterthought. Whether at convenience stores, taxis, or even street food stalls, a single card is enough. In fact, you can get by with just your smartphone. So, why has Korea developed such an advanced credit card and mobile payment culture?

1. Rapid Economic Growth and the Credit Card Boom

During the late 1990s, Korea faced a financial crisis, leading the government to actively encourage credit card usage to boost the economy and improve tax transparency. Offering tax benefits for credit card purchases, the initiative quickly led to widespread adoption, making credit cards an everyday necessity.

 

2. Cutting-Edge IT Infrastructure and High-Speed Internet

Korea boasts some of the fastest internet speeds in the world. With fast and reliable networks, online shopping and mobile payments have naturally flourished. Technologies like QR code payments, instant transfers, and NFC-based payments were quickly integrated, and consumers adapted seamlessly.

3. The Explosive Growth of Mobile Payments

Services like KakaoPay, Samsung Pay, and Naver Pay have become essential to Korean life. With just a smartphone, you can buy a cup of coffee, ride public transportation, or send money to a friend. This convenience has further accelerated Korea’s cashless culture.

4. A Safe Society and a Trustworthy Payment System

Another reason people don’t need to carry cash is Korea’s high level of public safety. With minimal concerns about theft or loss, and strong consumer protection measures in place, using credit cards feels safe and hassle-free.

5. Stores That No Longer Accept Cash

In many cases, using cash has become more inconvenient. Some cafes and restaurants now operate as ‘cashless stores,’ accepting only credit cards or mobile payments. Even public transportation, such as buses and subways, relies primarily on transit cards and mobile payments.

Foreigners Are Amazed by Korea’s Cash-Free Culture

Visitors to Korea are often taken aback: “How can even market stalls accept cards?”, “You can pay for a taxi with a QR code?” But before long, they get used to it and end up marveling at the convenience. Once a foreigner says, “You don’t need cash in Korea at all!”, it means they’ve truly adapted to life here.

 

This image was created using Adobe Firefly.

 

The Future of Korea’s Payment System

A cashless society is now an unstoppable trend in Korea. With emerging innovations such as blockchain-based payments and biometric authentication, Korea’s payment culture will continue to evolve.

Planning to visit Korea? No worries! As long as you have a credit card and a smartphone, you’ll be able to navigate life here effortlessly.

Korea – the land where cash is no longer necessary.