Do people in South Korea still use cash?
Rarely. Cash covered 15.9% of transactions in 2024, and its main users are people aged 60 and over. When customers do pay cash, merchants in designated sectors must issue a cash receipt for amounts of 100,000 won or more.
In detail
Rarely. In the Bank of Korea survey on payment instruments, cash made up 15.9% of transactions in 2024, behind credit cards, check cards and mobile cards.
It depends on age
Adults in their 20s and 30s prefer mobile cards, while people aged 60 and over still prefer cash. Only 53.8% of people in that older group had used a mobile financial service in the past month.
Cash and the tax system
Cash is tightly linked to tax reporting. Buyers can ask for a cash receipt, which records the payment with the National Tax Service. Businesses in designated sectors must issue one for cash payments of 100,000 won or more, even when the customer does not ask. Payment gateways issue cash receipts automatically for account transfers.
Online
Cash-funded options online are mostly prepaid gift certificates. This market shrank after the collapse of Happy Money in 2024, when its certificates lost their value. Shoppers who avoid cards tend to use virtual accounts or real-time account transfers instead.
What it means for payment operators
For operators serving merchants in Korea, cash is not a priority online. Bank transfers, virtual accounts and cards cover shoppers who avoid credit, and gateways handle the cash receipt obligation automatically for transfers.