How to open a Korean bank account

Any working holiday maker who plans to work in Korea, even for a little while, will need a Korean bank account. With a local account and debit card, you will also be able to access more services that can make your daily life easier.

Certain purchases in Korea require a Korean bank card. For example, paying for a class phone plan with monthly billing cycles, making purchases on certain websites (like Coupang), or even buying bus tickets online.

While foreign cards are generally accepted in Korea, there are some occasions where you might get an unexpected transaction failure. This is obviously inconvenient, so it is safer to have a Korean card that you know will be reliable everywhere.

How to open a bank account

Since 2018, banks have required applicants to show both their passport and their residence card. The procedures to obtain a residence card can take several weeks and so during this waiting period, it will be difficult, if not impossible, to open an account. That said, certain people have said that they succeeded in doing so even without their residence card, so you could still try.

Otherwise, wait for your residence card to be issued first. You will also need a Korean phone number. More and more banks are also requesting proof of employment.

When you open a checking account, you will also be required to open a savings account. The bank will ask you to deposit a certain amount of money into the savings account. The minimum varies from bank to bank. In Korea, checking accounts are free to hold, as are most of their associated services and transactions.

Upon the creation of your account, you will also be issued a debit card. With this card, you can make purchases, payments, withdrawals, basically all standard operations. If you want a credit card (which is not necessary for most WHV holders), that will require you to show more credentials and records.

You will also receive a bank book. This book allows you to withdraw and deposit money at ATMs, and also allows people without a bank card to track their transactions.

Choosing a bank

Certain banks are associated with companies (or even universities). Your employer may ask you to open an account at a specific bank, for the direct deposit of your salary.

Some banks, such as KEB Hana Bank, cater better to foreigners by offering service in English. Other banks might have branches abroad, such as Shinhan Bank, which has an office in Toronto, Canada. This might be worth checking if it is useful to you, but make sure that any foreign branches actually offer commercial banking (vs. only investment banking or other).

Here is a non-exhaustive list of banks that accept foreign clients:

• KEB Hana Bank
• Kookmin Bank
• HSBC Korea
• Citibank Korea
• Woori Bank

Let’s talk cash

Most everyday transactions and purchases are done by card, but you should still carry some cash on you to:

• Pay at markets, small shops, and street food stands.
• Top up your transport card Tmoney, which can only be done with cash.
• Handle situations where your card might unexpectedly be declined

Here is some more information about cash in Korea:

Bringing cash from your home country

You can bring some of your home currency in cash for your arrival to Korea. Once in-country, you can exchange that foreign cash for some Korean won (KRW).

You may also decide to exchange some KRW cash back in your home country. That way you have cash ready to use as soon as you land. In this case, note that the limit is set to the equivalent of US$10,000 or KRW 8,000,000. Beyond that amount, you will need to declare it to Korean authorities.

When exchanging currencies (in any country), avoid touristy places such as airports or train stations, as well as exchange bureaus. Exchange rates and fees there are unfavourable. Instead, go to your bank, with whom you already have an established relationship.

Withdrawing cash in Korea

1. If you have a Korean debit card

Once you have a Korean bank account, withdrawing KRW is easy and free with your bank card. This will be possible once you have a sufficient balance, either by depositing your savings into the account or by getting paid a salary in KRW.

2. If you only have a foreign bank card

Using a foreign card to withdraw KRW is less advantageous, as there will likely be fees. These fees, small though they may seem, can add up if you’re regularly withdrawing money, especially if there is a flat fee per transaction. In that case, consider making larger but less frequent withdrawals.

International money transfers

To fund your Korean bank account, you will need to make a transfer from another account of yours (unless you already have enough KRW in cash to physically deposit). This is necessary because you can’t use a foreign currency account to pay, for example, your rent or deposit. To make such a transfer, you have a couple of options:

1. Transfer from home bank to Korean bank

This is usually the most expensive method, because you will need to pay fees imposed by both banks. Ask for the fee schedule from both of your banks to make an informed decision.

2. Use a neo-bank as an intermediary

To avoid exorbitant fees, you can use a neo-bank. Wise, for example, allows you to hold up to 40+ currencies at once. What this means is that you can first charge your Wise account with KRW by paying with your home currency, and then transfer that KRW balance to your classic Korean bank account. Fees are minimal.

Note, however, that while you can send money from Wise to a Korean bank, the reverse is not possible. That means that at the end of your stay in Korea, you will need to use another method to repatriate your KRW balance to your home currency. You might choose the bank to bank option described above, or just withdraw your KRW balance in cash and then exchange it for your home currency.