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Korea quickly going cashless but some get left behind

Published: 28 Oct. 2025, 20:27 Updated: 29 Oct. 2025, 17:45

A customer uses a kiosk at a food court in a Seoul shopping mall on March 27. [NEWS1]

When a Japanese tourist recently found herself stranded at a Seoul bus stop with an empty transit card and no cash, a driver quietly waved her aboard. The gesture — captured on video — has charmed Koreans online. But behind the warmth lies a colder truth: In a country racing toward a cashless future, those without cards or apps are increasingly left behind.

Cash transactions are disappearing quickly as more cafes, restaurants and public transport systems stop accepting bills and coins. Experts say the rise of central bank digital currency (CBDC) discussions will likely accelerate the shift, but they also stress the need for safeguards to protect people who still rely on cash.

Cash accounted for 15.9 percent of all payments by transaction volume in 2024, trailing credit cards at 46.2 percent and debit cards at 16.4 percent, according to the Bank of Korea’s (BOK) survey on payment instruments and mobile financial services released earlier this year.

That’s down sharply from 41 percent in 2013, marking a decade-long decline. Usage was highest among those in their 60s and older, at 30.2 percent.

A bus displaying a banner reading “Cashless Bus” operates near a bus stop in Jongno District, central Seoul, on March 1, 2023. Starting that day, the Seoul Metropolitan Government expanded its cashless bus program from 18 routes with 436 buses to 108 routes with 1,876 buses. [NEWS1]

As cash use dwindles, more public transit systems are refusing it entirely. One of the clearest examples is public buses.

10 out of 17 metropolitan cities and provinces have introduced cashless buses, according to data released by Rep. Jung Tae-ho of the Democratic Party on Tuesday.

Six regions — Gwangju, Daegu, Daejeon, Sejong, Incheon, and Jeju — have adopted the system fully, while Seoul, Gyeonggi, South Chungcheong and South Jeolla are implementing it partially.

Franchise chains are following suit. Starbucks stopped accepting cash at some locations back in 2018, and a growing number of unmanned stores and restaurant kiosks now only take cards or mobile payments.

Japanese model Shige thanks a bus driver after he told her not to worry about paying the fare when her transportation card balance ran out as seen in this YouTube video. [SCREEN CAPTURE]

The shift has raised concerns at the institutions responsible for minting money. The BOK and the Korea Minting and Security Printing Corporation (Komsco) commissioned a confidential study this year on strategies for developing the minting industry in response to declining cash use.

The report, obtained by Rep. Jung’s office, found that currency issuance is falling rapidly. Annual issuance, currently at 400 million to 800 million notes, is projected to decline to 310 million to 440 million notes by 2035, potentially dropping by nearly half within a decade.

Demand for 5,000-won bills, worth about $3.5, may fall by around 10 million, and for 1,000-won notes — which are often used for change — by about 100 million.

Given the pace of change, the report recommended maintaining a transitional buffer by gradually scaling down production. It noted that “based on an issuance rate of roughly 400 million notes per year, Komsco should secure time to adjust its facilities and work force.”

The report additionally suggested the central bank consider issuing new banknotes to maintain circulation quality and security standards.

ATMs are seen at a street in Seoul on Jan. 31. [NEWS1]

The report also pointed to declining access to cash through ATMs, particularly in smaller rural areas such as Shinan county in South Jeolla, where availability stands at 24.3 percent, Gunwi County in North Gyeongsang at 31.4 percent and Bonghwa County in North Gyeongsang at 33.5 percent.

It urged policymakers to look to international examples of financial inclusion. Britain has expanded fee-free ATMs in low-income areas, while Sweden amended its Payment Services Act to legally require major banks to handle cash. Several U.S. states have banned cashless stores altogether to protect economically vulnerable consumers.

Kim Sang-bong, an economics professor at Hansung University, said that while innovations such as CBDCs are important, some level of exclusion is “inevitable.”

“Payment systems are a basic right for citizens, but the pace of change — like the move to cashless buses — is too fast,” he said. “Policy decisions should place greater emphasis on the needs of older adults and foreigners.”

Rep. Jung added that it may be time for the government to ensure minimal cash payment options in public services.

“For older adults and foreigners unfamiliar with mobile payments, there should be institutional guarantees to preserve basic cash payment rights in public sectors,” he said.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY KIM YEON-JOO [[email protected]]