The T-money card is used to pay transportation fare. When a t-money card embedded with a smart chip is brought into contact with a terminal (card reader), the terminal immediately receives the locational information from a satellite. Through radio frequency (RF) communication with the card reader, information is received and sent, such as the location of boarding and whether any transfers were made, thereby completing payment of the fare.
Furthermore, when the bus approaches a certain distance of the garage, the payment statements are wirelessly transmitted to a bus aggregation system by a wireless access point (AP) and an aggregation PC. For subways, the payment statements are stored within the card reader. All statements are transferred to and managed by the calculation system at Korea Smart Card, Co., Ltd. for the calculation of fares.

* Boarding: The location and time information is received through GSP to be stored with the fare information on the terminal(card reader)
* Deboarding: The location and time of deboarding is stored on the card reader, and the time of deboarding is recorded on the card.
* Transfer: The deboarding time recorded on the card is reviewed to apply a discounted fare for transfers made within 30 minutes.
* Subway station: The operation information and boarding/deboarding information are collected from the subway station terminal and transmitted to the aggregation PC.
* Garage: The operation information and boarding/deboarding information are transmitted from the bus card reader to the aggregation PC. |
Meanwhile, the statements of the T-money card used in various places are collected at the calculation center of Korea Smart Card Co., Ltd. from each transportation organization and distributor, which is then calculated each day to generate and provide the current profits and other additional information categorized into each vehicle, route, company, and location of payment.
The T-money card is Korea’s first non-contact smart transportation card realized in accordance with the international standard (ISO 14443), having the specifications of central processing unit (CPU) and memory within the card, operation system, and communication module. Within the card, an RF chip and an RF antenna are embedded for close range radio frequency (RF) with the card reader. Accordingly, when the card is charged, the amount is stored on the RF chip, and the RF chip makes the payment of the fare via communication with the card reader through the RF antenna. When the RF chip or RF antenna are damaged, communication becomes impossible, and the card can no longer be used.
T-money is largely divided into prepaid and post-payment forms. The prepaid form allows the user to charge a certain amount using cash or a credit card, and when the charged amount is used, the card is additionally charged. Meanwhile, the post-payment form involves embedding a traffic card chip on an existing credit card, which adds the payment function of transportation fares. The amount used for a month is paid at the end of the month in a lump sum.
Table 1. Currently available products
Type of Card |
Basic Function |
Basic Card (market/special) |
- Prepaid standard/student/children card
- Various forms (standard card, mini card, accessory) |
Internet T-money |
- Can be charged/paid on the internet by connecting the device to a PC through an USB connector |
Mobile T-money |
- Financial USIM allowing the use of t-money is embedded into a mobile phone
- Standard charging, mobile charging, automatic charging
- Internet payment, mobile payment
- Issuing organizations: SKT, KT, LG Telecom |
Corporate Taxi Card |
- Taxi payment card for the purpose of business
- Operated as an affiliated form with corporations |
Automatically charging T-money card |
- When the charged amount falls below a certain amount, a set amount is automatically charged at the next use of a card reader. The card is automatically charged within the set maximum monthly chargeable amount.
Issued by affiliate financial organizations (Shinhan Bank, Post Office, Nonghyup, Foreign Exchange Bank) |
Corporate Taxi T-money |
- Card exclusively for taxi payments for the purpose of business
- Operated under affiliation with a corporation |
Disposal Traffic Card |
- Card allowing use of the subway one time |
Free Pass T-money Card |
- Replaces the former free MS pass (free subway, paid bus ride)
- For veterans, disabled, elderly passengers
- Issued by The Seoul Metropolitan Government/Incheon City |
Seoul Metropolitan Government Pass Plus |
- Joint use of the standard card infrastructure
- Discounted fare on the Seoul Metropolitan Government tour bus
- Discounted payment of the main tourism landmarks in Seoul |
Affiliate Prepaid Card |
- T-money function added to affiliate cards |
Affiliate Post-payment Card |
- Post-paid t-money function embedded to a card
- Issued by affiliate credit card companies |
Subway Regular Pass |
- 60 rides within a month. Cards are divided into Seoul line cards and distance proportionate cards
- Purchase/charging/refunds can be made at each subway station |
Traffic Exclusive Card |
- Only allows traffic payments |
Public Transportation Security Card |
- Card that secures the remaining amount upon misplacement or theft of card |
The T-money card could be used throughout the country. Traffic cards of a region had previously been limited to the region, but the traffic cards have become compatible in 60 cities throughout the country.
Figure 4. Regions where T-money could be used
The T-money card can be used to make payments for various services other than payment and calculation of the transit fare.
First, there are various charging services. Cash charges can be made at T-money distributing convenience stores, street stalls, unmanned subway charging stations, and bank ATMs in the amount of 1,000 won units, from 1,000 won to 90,000 won each time (up to 50,000 won at GS25, CU, and Seven Eleven convenience stores). The maximum amount that can be charged is 500,000 won. The mileage can also be used to charge the card when there are more than 1,000 points of T-mileage. The card can be charged using mileage in 1,000 point units at Seoul Metro (Lines 1 to 4) station offices and Metropolitan Rapid Transit (Lines 5 to 8) I-center and NICE cash dispensers, bank ATMs, and mobile environments using the T-money application. When the cash balance runs out below a certain amount, T-money could be automatically charged a certain amount of moneh with credit card you registered before. If you use mobile T-money, it could be chargedwith mobile cash payments, internet banking, and the credit card payments. Meanwhile, the card can also be used on the internet charging terminal T.P.O.P or through a USB internet card.
Second, there are payment services which utilize the T-money card. Based on the compatible use between traffic cards, the T-money card can also be used in public transportation means and taxis in 60 cities around the country. In other words, T-money could be used for the subway, bus, taxi and distribution payment service. Particularly through the distribution payment service, payments can be made using the T-money card at 60,000 distributors around the world at affiliate convenience stores, large supermarkets, and various franchise stores, public parking lots and unmanned devices.
Meanwhile, refund services are also provided, wherein the remaining balance on a damaged or misplaced card, or a usable card is refunded. Specifically, with respect to refunding the remaining amount on a usable card, when the remaining amount is less than 20,000 won, the amount can be refunded at a T-money affiliate convenience store. When the remaining amount is less than 50,000 won, the balance can be refunded at a subway customer service center. In order to receive a refund of more than 50,000 won, a bank account refund must be applied at a bank ATM, and in such case, the amount excluding a commission of 500 won is refunded. When the remaining amount of a damaged card cannot be checked on a terminal, a refund cannot be made at the terminal. In such cases, the user can request a refund by submitting the card and an envelope with a return address. The remaining amount on the card is checked using the card number, and the remaining amount is refunded into the customer’s bank account. Furthermore, if the damaged cards were purchased in 2 years, a refund could be made on the remaining amount as well as the cost of any damaged cards .
All payments made with the T-money card are subject to the same income tax deductions of credit cards by registering the T-money card as an income tax deductible card on the T-money website or smart phone t-money application. All payments made with cards registered for the income tax deduction service are added up to be reported with the National Tax Service once a year. In the case of wage earners, income tax deduction is applied to 25% of payments made with the T-money card, which exceeds 25% of the total wage, along with the usage of credit cards and debit cards during the year-end tax adjustment. Also, payments made with a popular card are calculated with the amount of cash receipt.
Any points gained by using public transportation or converting points saved at affiliate distributors with T-money into mileage are known as T-mileage. The mileage can also be used as cash by charging the card. After registering the T-money card as a mileage card on the T-money website or smart phone T-money application, points equating to 0.2% of the payment are saved bimonthly when using public transportation. The points obtained from the 1st to the 15th of every month are accumulated on the 1st of the following month, and the points obtained from the 16th to the last day of every month are accumulated on the 16th of the following month. Furthermore, any affiliate points of a T-money website member can be converted into T-mileage, which may impose a fee upon conversion based on the affiliate’s policy. The mileage can be used at minimum 1,000 point units, and can be charged after registering pin number at the T-money website. T-mileage can be given to other users registered in the mileage service, which may impose a fee. There is also a public benefit program that donates the mileage to underprivileged youth or children of the deceased from car accidents, where the donated T-mileage is converted to cash, and donated to the Beautiful Foundation each quarter.
Meanwhile, the remainder transfer service is also provided, which refunds all remaining balance in, for instance, card “A” to charge card “B”. This service is in a form that can charge a specific card without paying an additional fee. This service can be used at Seoul Metro (Lines 1 to 4) station offices, Metropolitan Rapid Transit (Lines 5 to 8) I-Center, GS25 and Korea Smart Card Co., Ltd. headquarters.
There is also a service that registers changes on a non-divisional card that is categorized as neither standard, nor student, nor children card. If a non-divisional card has been charged into student or children’s card, the card must be registered on the T-money website to receive student or children discounts. This service can be used at Seoul Metro (Lines 1 to 4) station offices, Metropolitan Rapid Transit (Lines 5 to 8) I-Center, T-money affiliate convenience stores or the Korea Smart Card Co., Ltd. headquarters.