How to Open a Bank Account in South Korea on a Working Holiday

Do I need a Korean bank account?

As a Working Holiday Visa (H-1) holder in South Korea, you are not obligated to open a bank account. However, if you want to work there, you will need one to receive your salary paid in KRW.

Having a Korean bank account and a Korean bank card will also give you access to more services and make your daily life easier. For example,

Paying for a classic phone plan
Making purchases on certain websites
Buying bus tickets online

Although foreign credit cards generally work well in South Korea, they are not accepted everywhere. Having a Korean card will ensure that you always have a payment option available if needed.

How to open a bank account

Opening a bank account in Korea can be a bit complicated as an H-1 visa holder.

In recent years, it has generally become no longer possible to open an account with just your passport and Working Holiday Visa. You must also have a residence card.

The process of obtaining the card can take several weeks. During this period, it is difficult to open an account. Though there are accounts of people who managed to do so before getting a residence card, they are the exception, not the rule.

To open a bank account, you will need:

A valid residence card (the application receipt might be sufficient at some institutions)
A Korean phone number
An address in Korea
Some banks may also require proof of employment to open an account.

When opening a chequing account, you will also be required to open a savings account.

To open the savings account, you will need to make an initial deposit. In general, the minimum is around KRW 20,000.

In South Korea, there is generally no fee to maintain a chequing account, and most related services are also free.

In the Korean banking system, there are debit cards and credit cards. A card is not always issued automatically, so you may need to request one. For foreign residents, it can be quite difficult to obtain a credit card. As such, you may be issued only a debit card, with which you can perform all basic transactions, including withdrawals and payments.

You will also receive a bank book (Passbook – 통장). This bank book allows you to withdraw and deposit cash at ATMs and also makes it possible for those who do not have a debit or credit card to track transactions.

Choosing the right bank

Some banks are associated with companies or even universities. Your employer might ask that you open an account with a specific bank so that your salary can be deposited directly.

If you have no particular requirement or preference, you can choose whichever bank you like. Some banks are more foreigner-friendly than others, with service available in English and staff who are familiar with procedures for foreign residents. Here is a list of a few banks that tend to more readily accept foreign clients:

Online banks an alternative

Online banks (also known as neobanks) offer banking services but without the brick-and-mortar locations of traditional banks. Online banks offer advantages and convenience for transactions abroad.

Here are a few reasons why you might consider opening an account with an online bank:

They charge lower fees for transactions abroad (if you travel during your working holiday).
In South Korea, cards issued by foreign banks may not be accepted by all merchants. Cards from online banks (even foreign ones) tend to experience fewer blocks.
Even if you decide to open an account at a traditional bank, it may still be a good idea to have a second bank card in case there is an issue with your first one.

Cash in Korea

Most purchases and payments are made by card, but you will still need to carry some cash in your daily life:

To pay at markets, small shops, or street food stands.
To top up your T-money transit card, which can only be topped up with cash.
As a backup in case your bank card does not work.

Here is some information about using cash in Korea:

Bringing cash from your home country

For the first part of your stay, you can bring a certain amount of cash with you in your home currency, which you can exchange once you are in Korea.

You can also choose to exchange some KRW before arriving in Korea, so that you have cash available as soon as you arrive. You are allowed to bring up to the equivalent of US$10,000 or KRW 8,000,000 without having to declare it to the Korean authorities.

Withdrawing cash in Korea

1. If you have a Korean bank account

Withdrawing KRW is generally simple and free, especially if you use ATMs in your bank’s network. This is the most convenient option if you receive your salary in KRW or if you transfer some of your savings to your Korean account (we will discuss money-transfer options further below).

2. If you have a foreign bank account or an online bank

With a foreign card, even if your bank does not charge withdrawal fees, conversion fees will almost always be charged. They are not necessarily very high, but if you regularly withdraw small amounts, the total can add up. If your bank also charges a fixed fee for each withdrawal, the transaction can become quite expensive. In that case, it is better to make larger and fewer withdrawals rather than numerous small withdrawals.

When withdrawing KRW using a foreign card or transferring foreign currency to a Korean bank account, the exchange rate is important. Depending on economic conditions, some periods may be more favourable than others. Track the exchange rates online.

Funding your Korean bank account

Once you are in Korea, you may need to transfer money from your home bank account (in euros, dollars, pounds, etc.) to your new Korean bank account, whether to pay rent, a deposit, or simply fund your account.

There are several ways to make international transfers:

1. Traditional bank transfer

This means sending money directly from your home bank to your Korean bank. This is generally the most expensive method because you need to take into account:

Transfer fees charged by your bank
Receiving fees charged by the Korean bank
The exchange rate

Before choosing this option, contact the sending bank and the receiving bank to find out the exact fees. They can vary significantly depending on the institution and the type of account you have.

2. Use an intermediary service

A simpler and more affordable alternative is to use an online bank (neobank) such as Wise, which allows you to send various currencies quickly and at a lower cost to your Korean bank account.

Note: Wise does not allow you to convert KRW into another currency. You can convert currency into KRW, but not KRW into another currency. That means that if you still have money in your Korean bank account at the end of your working holiday, you will need to use another method to transfer it, such as an international transfer from your Korean bank or a cash withdrawal.

3. Deposit cash directly

You can also withdraw KRW using your foreign card and then deposit that cash into your Korean bank account.

This can be useful in a pinch, but it can be expensive if your bank charges withdrawal fees. In addition, some Korean banks temporarily limit the deposit of large amounts of cash into recently opened accounts.