Korea Banking Guide: Opening Account, Wire Transfer, and Mobile Payment for Foreigners

Korea Banking: Guide for Foreigners

Korea banking works differently for foreigners. Understanding Korea banking is essential for foreigners. Managing money in Korea requires understanding local banking practices, mobile payment systems. The Korea banking system also includes advanced digital options, and the unique challenges foreigners face. This guide covers everything from opening your first account. Also see Korea payment methods for daily transactions to using Korea’s advanced payment infrastructure.

Korea Banking: Opening an Account

Requirements for Foreigners

Basic requirements:

• Valid passport
• Residence Card (formerly the Alien Registration Card, ARC) – essential for full banking services
• Korean phone number
• Proof of address (utility bill or rental contract)
• Proof of purpose (employment letter, school enrollment, etc.)

Without ARC (tourists/short-term):

• Limited accounts available at some banks
• No online banking or card services
• Primarily for receiving transfers or basic deposits

Major Korean Banks

Bank	Korean Name	English Services	Foreigner-Friendly Rating
KEB Hana Bank	하나은행	Excellent	★★★★★
Shinhan Bank	신한은행	Good	★★★★☆
Woori Bank	우리은행	Good	★★★★☆
KB Kookmin Bank	국민은행	Limited	★★★☆☆
NH Bank	농협	Limited	★★★☆☆
Kakao Bank	카카오뱅크	App only (Korean)	★★★☆☆

Recommendation: KEB Hana Bank has dedicated “Global” branches in major areas with English-speaking staff.

Step-by-Step: Opening an Account

1. Visit a branch: Go in person (required for first account)
2. Take a number: Use the queue machine, select “신규” (new account)
3. Present documents: ARC, passport, phone number
4. Fill forms: Staff will help; bring your own pen
5. Set up mobile banking: Download app, register with staff assistance
6. Receive debit card: Usually issued same day or within 1 week

Time needed: 30-60 minutes
Account types: Savings account (입출금통장) is the standard checking/debit account

Banking Hours

• Standard hours: Monday-Friday, 9:00 AM – 4:00 PM
• Closed: Weekends and Korean holidays
• Extended service branches: Some until 6:00 PM or 7:00 PM

Korea Banking: Online and Mobile

Setting Up Mobile Banking

Required:

• Korean phone number for verification
• Public certificate (공인인증서) or biometric authentication
• Bank’s official app installed

Major bank apps:

• Hana Bank: “1Q Bank” app
• Shinhan: “SOL” app
• Woori: “Woori WON” app
• KB Kookmin: “KB Star Banking” app

Note: Korean banking apps can be complex. Initial setup usually requires visiting a branch.

Online-Only Banks

Kakao Bank:

• Fully mobile, no branches
• Open account via app
• Requires ARC and Korean phone
• Interface mostly in Korean
• Great for easy transfers

Toss Bank:

• Similar to Kakao Bank
• Competitive rates
• Easy-to-use app

Korea Banking: Money Transfers

Domestic Transfers

Methods:

• Mobile app: Instant, free or ₩500 fee
• ATM: ₩500-1,000 fee
• Bank counter: ₩1,000-2,000 fee

Information needed:

• Recipient’s bank name
• Account number
• Account holder’s name (for verification)

International Transfers (Sending Money Abroad)

Bank wire transfer:

• Fee: ₩10,000-30,000 per transfer
• Exchange rate: Bank rate (less favorable)
• Time: 2-5 business days
• Limit: Varies, may need documentation over $10,000

Online transfer services (recommended):

Service	Fee	Speed	Best For
Wise (TransferWise)	0.5-1%	1-2 days	Best rates, most currencies
Remitly	Low-medium	Same day possible	Speed
SentBe	Low	1-2 days	Korea-based service
PayPal	High	3-5 days	Convenience

Documentation for large transfers:

• Over $10,000 equivalent requires reason documentation
• Employment contract, tuition bill, or family support documents
• Tax office may ask about source of funds

Receiving Money from Abroad

Information to provide sender:

• Your full name (as on ARC)
• Bank name and branch
• Account number
• SWIFT code (e.g., HNBNKRSE for Hana Bank)
• Bank address

Receiving fees: Usually ₩5,000-10,000 per incoming wire

Korea Banking: Payment Methods

Cash (현금)

When you need cash:

• Traditional markets
• Small restaurants
• Some taxis (though most accept cards)
• Temples and some tourist sites

ATM withdrawal:

• Korean bank card: Free at own bank, ₩500-1,000 at others
• Foreign card: ₩3,000-4,000 + home bank fees
• Available 24/7 at convenience store ATMs

Debit and Credit Cards

Acceptance: Nearly universal—even street vendors often accept cards

Korean card types:

• Check card (체크카드): Direct debit from account, no credit
• Credit card (신용카드): Requires credit check, harder for foreigners to get

Using foreign cards:

• Visa/Mastercard widely accepted
• AmEx less common
• Notify your bank before traveling
• Watch for foreign transaction fees

Mobile Payments

Samsung Pay:

• Works with Korean or foreign cards
• MST technology: Works on any card terminal
• Very widely compatible in Korea

Kakao Pay:

• Linked to Korean bank account
• QR code payments
• Person-to-person transfers
• Used for online shopping, food delivery

Naver Pay:

• Popular for online shopping
• Can link Korean bank account or card
• Cashback rewards

Apple Pay:

• Now available in Korea (launched 2023)
• Works with Hyundai Card, other participating banks
• NFC terminals only

Prepaid Cards for Foreigners

WOWPASS:

• Prepaid card + T-money combined
• Load KRW via cash or foreign card
• No Korean bank account needed
• Available at airports, convenience stores
• Fee: ₩5,000 for card

NAMANE Card:

• Similar prepaid card
• Can load at convenience stores
• Good for tourists

Korea Banking: Tax Considerations

Income Tax

For foreign employees:

• Progressive tax: 6-45% depending on income
• Most employers withhold automatically
• Year-end settlement in January-February

Flat tax option:

• 19% flat rate available for foreign workers
• Choose each year during settlement
• Good for higher earners

Tax Treaties

Korea has tax treaties with 90+ countries. Key benefits:

• Avoid double taxation
• Reduced withholding rates
• Tax exemptions for certain income types

Countries with favorable treaties: USA, UK, Canada, Australia, most EU countries

Year-End Tax Settlement

Timeline:

• January-February: Submit documents to employer
• February-March: Receive refund or pay additional

Deductions to know:

• Housing rent (up to ₩750,000/year for certain conditions)
• Medical expenses
• Education expenses
• Credit card spending (tax benefits for card use)

Korea Banking: Common Challenges

Problem: Can’t Open Account

Solutions:

• Try different branches—policies vary
• Visit banks near universities or foreigner-heavy areas
• KEB Hana Global branches are most accommodating
• Bring employer letter or school enrollment proof

Problem: Credit Card Denied

Why: No Korean credit history

Solutions:

• Use check card (debit) instead—no credit check
• After 1-2 years with steady income, try again
• Some banks offer foreigner credit cards with deposit
• Corporate cards through employer

Problem: Online Banking Issues

Solutions:

• Use bank’s official app, not website
• Install required security programs (Korean websites need ActiveX/plugins)
• Visit branch to reset authentication if locked out
• Keep OTP device or security card safe

Korea Banking: Useful Vocabulary

English	Korean	Usage
Account	계좌 (gyejwa)	Bank account
Deposit	입금 (ipgeum)	Put money in
Withdrawal	출금 (chulgeum)	Take money out
Transfer	이체 (iche)	Send to another account
Balance	잔액 (janaek)	Account balance
Interest rate	이자율 (ijayul)	Rate on savings
Debit card	체크카드	Check card
Credit card	신용카드	Credit card
Password/PIN	비밀번호	Security PIN
Receipt	영수증	Transaction receipt

Korea Banking: Emergency Contacts

• Lost/stolen cards: Call your bank’s 24-hour hotline immediately
• Hana Bank: 1599-1111
• Shinhan Bank: 1599-8000
• Woori Bank: 1588-5000
• KB Kookmin Bank: 1588-9999

Block card immediately if lost: Available through mobile apps 24/7

Korean banking may seem complex initially, but once set up, the system is remarkably convenient. Mobile payments are ubiquitous, transfers are instant, and you’ll rarely need cash. Take time to set up properly with a foreigner-friendly bank, and daily financial life becomes seamless.

Learn more about Korean financial systems at Banking in South Korea on Wikipedia.

Related Guides

• Korea Payment Methods Explained
• Essential Korea Apps: Kakao, Naver, Coupang
• Korea Public Transportation Guide
• Shopping in Korea Guide
• Korea Delivery Services Guide

Can You Open a Korean Bank Account Fully Online in 2026?

Short answer: not from outside Korea, and not with a traditional bank. Full-service Korean bank accounts still require an in-person visit and a valid Alien Registration Card (ARC) — this has not changed as of August 2026. What has changed is that once you have an ARC, several banks let you finish account setup through their app instead of returning to a branch.

• Before you arrive: no Korean bank will open a full account for you remotely. Some digital-only banks (KakaoBank, Toss) advertise "app-only" signup, but they still require a Korean phone number and, in most cases, an ARC or equivalent resident registration.
• After you arrive, before your ARC is issued: a small number of banks (e.g., KEB Hana’s "Foreigner-friendly" branches) allow account opening with just your passport and a proof of address, but with lower transaction limits until your ARC is registered.
• After your ARC is issued: this is when true "mostly online" banking becomes realistic — you visit a branch once to verify identity and link your ARC, then manage everything (transfers, bill pay, card issuance) through the app afterward.

개설 방식	ARC 필요	한국 휴대폰 필요	지점 방문	적합 대상
시중은행 (KB국민, 신한, 우리 등)	필수	필수	최소 1회	장기 체류·급여 계좌가 필요한 직장인
디지털 전문은행 (KakaoBank, Toss)	대부분 필수(예외 제한적)	필수	앱 인증으로 축소 가능	ARC 발급 후 빠른 개설을 원하는 사람
외국인 특화 지점 (KEB하나 외국인센터 등)	여권만으로 임시 개설 가능한 경우 있음	필수	1회	입국 직후, ARC 발급 대기 중인 사람
해외송금 전문 핀테크 (Wise, WireBarley)	불필요(계좌 아님, 송금 서비스)	필요	불필요	국내 계좌 없이 송금만 필요한 사람

FAQ

Can I open a Korean bank account without an ARC?

Only limited, temporary options exist (e.g., some banks’ foreigner-desk accounts with passport only), usually with lower transfer limits. A full account requires an ARC.

Can I open a Korean bank account online before I arrive in Korea?

No. As of August 2026, no major Korean bank offers full remote account opening from outside the country.

Which bank is easiest for foreigners in 2026?

KEB Hana and Woori both run dedicated foreigner service desks in major cities with English support; KakaoBank is fastest once you already have an ARC and Korean number.

Do I need a Korean phone number to open an account?

Yes — nearly all banks require a Korean-issued SIM for SMS verification, including digital-only banks.

What’s the real difference between KakaoBank/Toss and a traditional bank for a foreigner?

Traditional banks are required for most employer payroll deposits and government registrations; digital banks are faster for day-to-day transfers and bill payments once set up.

Sources checked 2026-08-14: 금융실명거래 및 비밀보장에 관한 법률 (law.go.kr); each bank’s official foreign-customer guidance pages.