If you’ve got a crisp stack of 50,000 won notes sitting in your wallet—exactly twenty of them to be precise—you're holding a million won. It sounds like a lot. In Seoul, it feels like a lot. But the moment you try to flip 1 million won to dollar terms, the reality of the foreign exchange market hits your bank account like a cold splash of water.
Rates move. Fast.
Honestly, most people just Google the conversion, see a number, and assume that's what they’ll get at the airport or through PayPal. They’re usually wrong. You aren't just dealing with the mid-market rate you see on a flickering Bloomberg terminal; you’re dealing with the "spread," the hidden commissions, and the general mood of the Bank of Korea.
The Brutal Reality of the Exchange Rate Right Now
So, what is the actual math? As of early 2026, the South Korean Won (KRW) has been dancing around a specific range against the Greenback. While the "spot rate" might tell you that 1,000,000 KRW is worth somewhere between $720 and $760, your actual take-home is often much lower.
Why? Because banks are in the business of making money.
If the official rate is 1,350 won to the dollar, a retail bank might charge you 1,380. That difference is where your lunch money disappears. It’s called the FX spread. If you're standing at an exchange booth in Incheon International Airport, that spread is even wider because you're paying for the convenience of that physical booth and the person standing behind it.
Why the Won is Acting This Way
South Korea is an export powerhouse. Samsung, Hyundai, SK Hynix—these giants drive the economy. When global tech demand surges, the won usually strengthens. When there’s geopolitical tension in the Pacific or interest rate hikes from the Federal Reserve in Washington, the won tends to slide.
It’s a "proxy currency" for global risk.
When investors get scared, they dump the won and buy the dollar. This makes your 1 million won worth significantly fewer dollars during times of global instability. We’ve seen this play out repeatedly over the last few years. The 1,300 to 1,400 range has become a sort of "new normal," a far cry from the 1,100 range we saw a decade ago.
Where You Trade 1 Million Won to Dollar Matters
Don’t just walk into the first bank you see. That’s a rookie move.
If you use a traditional wire transfer, you're getting hit twice. First, there’s the exchange rate markup. Second, there’s the flat wire fee, which can be $25 or more. On a million won—which is less than $1,000—that fee represents a massive percentage of your total capital.
Digital disruptors have changed the game.
Apps like Wise (formerly TransferWise) or Revolut use the mid-market rate. They show you exactly what the "real" exchange rate is and then charge a transparent fee. Usually, for a million won, you might pay about 1% or less in fees. Compare that to a 3% or 4% "hidden" fee at a standard bank.
The "Myeongdong" Factor
If you’re physically in Seoul, there’s a legendary workaround. The small, independent money changers in Myeongdong.
They often offer rates that beat the big banks like KB Kookmin or Hana. Why? They have lower overhead and they compete fiercely for the business of tourists and traders. You’ll see them in tiny stalls near the Chinese Embassy. It’s perfectly legal, though it feels a bit "underground" if you’re used to corporate banking. Just bring your passport. They won’t talk to you without it.
Breaking Down the Purchasing Power
What does $750 (roughly the current value of a million won) actually buy you?
In the U.S., $750 might cover a month of groceries and maybe a car payment if you're lucky. In Seoul, 1 million won goes a bit further. You can get a decent "officetel" studio apartment for a monthly rent of 600,000 to 800,000 won, leaving you just enough for some spicy rice cakes and a few bus rides.
- 1 Million Won in Seoul: A month of basic living for a student.
- $750 in New York: About three days of existence if you breathe too much.
This discrepancy is why people get confused. The "value" of the money feels different depending on which side of the Pacific you're standing on. This is what economists call Purchasing Power Parity (PPP). While the exchange rate might say your won is worth less, your ability to buy a bowl of high-quality noodles is much higher in Korea than in San Francisco.
Watch Out for the "Kimchi Premium"
While usually applied to Bitcoin, the concept of a price gap in Korea is real. Korea has strict capital controls. This means moving large amounts of money out of the country isn't as simple as clicking a button. For 1 million won, it’s no big deal. But if you were trying to move 1 billion won, you’d run into a wall of paperwork from the Foreign Exchange Transactions Act.
The Technical Side of the Pair (KRW/USD)
If you're looking at charts, you’re looking at the USD/KRW pair.
When the chart goes up, the dollar is getting stronger and your won is getting weaker. It’s counter-intuitive for some. A "rising" chart is bad news for your million won. Most analysts look at the 1,300 level as a psychological floor. If it breaks below that, the won is "strong." If it heads toward 1,450, the Korean government starts getting nervous about inflation and might intervene in the markets.
They do this by selling their dollar reserves to buy won, artificially propping up the currency.
Practical Steps for Converting Your Cash
Stop checking the rate on generic search engines if you actually want to trade. Those rates are for "interbank" trading—large blocks of millions of dollars swapped between institutions. You will never get that rate.
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Instead, look at the "Cash Buying" or "Cash Selling" rates on a site like Hana Bank or Shinhan Bank.
If you need to send 1 million won to a U.S. bank account:
- Avoid the big banks. Their SWIFT fees will eat your soul.
- Use a fintech provider. Set up a transfer through a dedicated FX app.
- Check the "total landing" amount. Don't look at the rate; look at how many dollars actually hit the destination account after all fees.
- Timing. If the U.S. Federal Reserve is about to announce interest rate changes, wait 24 hours. The volatility is usually not in your favor.
If you have physical cash:
Go to a currency exchange in a high-traffic tourist area but not the airport. If you must use the airport, only change enough for a train ticket into the city. Use an ATM in the city with a travel-friendly card like Schwab or Monzo to get the rest. They often refund ATM fees and give you a near-perfect rate.
The Long-Term Outlook
Is the won going to get stronger?
Maybe.
But with the demographic crisis in Korea—the lowest birth rate in the world—some economists worry about the long-term "structural" strength of the currency. A shrinking workforce usually means a slower economy. If you're holding a million won and you don't need it for immediate expenses in Korea, moving it into dollars isn't just about a trip; it's a hedge against a potentially weaker won in the years to come.
Calculated moves. That's how you handle foreign exchange. Don't let the banks take their 5% cut just because you were in a hurry. 1 million won is a decent chunk of change. Treat it like that.
The most effective way to maximize your 1 million won is to track the USD/KRW trend for a week. If the won is strengthening (the USD/KRW number is dropping), wait. If it’s sliding, move now. Use a digital remittance service for anything over $500 to ensure the fixed fees don't cannibalize your principal. Always verify the final "received" amount before hitting the confirm button.