Lee Yeon-woo is a financial journalist at The Korea Times. Her wide range of reporting includes policies, macroeconomics, stock market, companies and even crypto. She is passionate about connecting the dots in Korean finance and making it easier for foreign nationals to understand. Based on her previous experience as a national reporter, she also has a keen interest in social issues within the sector, including gender equality and ESG. Your tips and insights are always appreciated. You can send them to yanu@koreatimes.co.kr.
Foreign tourists can ride Jeju buses with overseas Visa cards
A foreign tourist taps a Visa card to ride a bus on Jeju Island in this undated photo. Courtesy of Visa
By Lee Yeon-woo
Foreign visitors to Jeju Island can now ride buses without buying a separate ticket or transit card, simply by using a Visa card issued in their home countries.
According to Visa, Thursday, the transit system has been implemented on all Jeju buses starting this month. This project marks the first application of such a system to public transportation in Korea.
It was launched as part of an agreement signed in March between Visa and Jeju Special Self-Governing Province, with the goal of advancing the island's payment infrastructure. Through this initiative, Jeju aims to enhance convenience for foreign tourists and take the lead in developing new business models built around the innovative payment system.
The open-loop transit payment system allows passengers to tap and pay fares using credit, debit or prepaid cards based on the EMV global payment standard. Customers can also use various devices, including smartphones and smartwatches.
The system was first introduced in London in 2012 and has since been adopted in major cities such as New York, Hong Kong and Singapore. In 2024 alone, Visa processed over 2 billion contactless transit fare payments — more than double the volume recorded in 2022.
The system is continuing to expand rapidly, particularly across Asia. For instance, last September, Beijing fully implemented open-loop payments using overseas-issued cards across its entire subway network, covering all 490 stations.
In contrast, Korea's transportation payment system, known as payOn, has remained the dominant method since its launch in 1997, giving domestic stakeholders little incentive to address its limitations.
Because it is incompatible with open-loop systems, foreign visitors are often left with limited options. They must either pay in cash or purchase a separate transportation card, such as T-money, which can only be topped up with Korean won.
Many foreign tourists say they find the system disappointing, especially in a country known for its advanced digital technologies.
Visa said it is working with stakeholders to gradually expand open-loop transit systems in Korea, aiming to improve accessibility for foreign nationals and strengthen links to global payment infrastructure.
"With global interest in Korean culture on the rise and a steady increase in international visitors to Korea, the need for open-loop transit payment systems is becoming more apparent," Patrick Storey, regional manager of Visa Korea, said.
"We hope this rollout not only provides foreign tourists a more convenient travel experience, but also helps strengthen Jeju's position as a global tourist destination by boosting the competitiveness of its transit infrastructure."