Best Way of Carrying/Managing Money in Korea

What's the best strategy of carrying/managing money in Korea. I don't like to carry a lot of cash around while traveling. But I don't want to make too many ATM withdrawals that incur expensive fees. I plan on being there 2 weeks and will be in Seoul, Pusan, and a few other smaller cities. If you're a U.S. traveler, what's the most cost effective strategy?

(1) Make 4-6 ATM transactions (incur fees) for the cash needed and pay cash for everything?
(2) Make one large transaction before going to Korea? Then pay cash for everything?
(3) Make individual credit card transactions and use Korean cash sparingly? (Credit cards charge 3% of transaction).

Anyone with the experience to tell which is cheaper? On a budget so will be staying at backpacker hostels and and almost no shopping. Thanks.

It's extremely unlikely you'll be robbed in Korea, so carrying cash is safe in that sense, though you still have to be concerned about losing it.

When I travel, I generally take cash. If you want to reduce your risk, you could bring as much cash as you're comfortable carrying, and bring the rest in travelers checks. In tourist areas and banks with currency exchange desks (very common in the larger cities), you'll have no trouble changing the TCs for Korean won.

Most cheap hotels and restuarants only accept cash (some will take Korean check and credit cards). Though there are a few places that accept American credit cards (such as the train stations in Seoul and Busan) don't count on being able to use them for everyday expenses.

Not american so I cannot comment on your specific circumstances regarding fees etc.
Beleive it or not, Korea is way behind the first world in issues of creidit cards, ATM's and electronic payment. (This might be a good thing however)
Their are loads of ATM's in Korea, but most machines will only accept cards issued by the bank who the ATM belongs to. Finding an ATM that will accept foreign VISA/MASTERCARD/CIRRIUS etc can be a real challange sometimes, especially outside of Seoul.
On more than one occasion i spent hours walking around from ATM to ATM to get some money with the VISA debit card I was carrying.
So if you you find an ATM that works, I suggest you get as much money as you are willing to carry. As the previous poster mentioned their is very little problem with theft in Korea, it is a very safe place to travel.

{quote:title=ichyfeet1234 wrote:}{quote}
Korea is way behind the first world in issues of creidit cards, ATM's and electronic payment.

--> Incorrect. PayPal not being widely used doesn't mean Korea lacks infrastructure for electronic payment. And credit cards are too widely spread enough to have caused a credit bubble (followed by a small crisis) in early 2000s. For non-residents and Korean illiterates, nevertheless, the whole e-banking/payment system is in fact inaccessible as National ID numbers are required in every step. But the system is there regardless, and it works just fine.

{quote:title=ichyfeet1234 wrote:}{quote}
Finding an ATM that will accept foreign VISA/MASTERCARD/CIRRIUS etc can be a real challange sometimes, especially outside of Seoul.

--> Correct.

{quote:title=ichyfeet1234 wrote:}{quote}
most machines will only accept cards issued by the bank who the ATM belongs to.

--> Simply incorrect. Both bank controlled ATMs and independent contractors' ATMs (in metro stations, convenient stores, etc.) accept cards from other banks as well. It's just that the card needs to be from a 'domestic' bank, and you pay additional fees for using other banks' hardware.

For the OP's money concern, see if you can arrange a wire transfer from Citibank US under a highly favorable fee scheme. There are several Citibank Korea branches in country, and I know that there is such a sceme for transfers from SK to the US. If the vice versa is possible, you might be able to collect parts of your budget over 2~3 phases depending on your itinerary.

On a second thought, however, my idea above might not be as useful as I thought if you're on a low budget and the amount of currency exchange is small enough so that any benefit of carrying smaller cash be outweighed by total transaction costs. If so, then cash withdrawal from ATM would be the most reasonable option.

2 weeks is nothing to worry about. Carry $1,500 with you in $100 bill to make it less bulky and when the money runs low, withdraw from ATM. I think Citibank ATM allows you the most withdrawal per transaction over there. That's been my experience 2 weeks ago.

If you are still freaking out then carry $2,000 with you and when you get to your hotel, pay your hotel room in advance.