Published on and written by Cyril Jarnias
Moving to South Korea means diving into one of the most digitized countries in the world, where you pay for your coffee, rent, and even your transit card via your smartphone. But to fully enjoy this hyper-connected daily life, one element is essential: a properly set-up local bank account and a clear strategy for managing your money across multiple countries and currencies.
This article covers all the essential financial aspects for foreigners in South Korea, including opening a bank account, recommended banks, local payment methods, international transfer procedures, specific tax obligations, health insurance options, and conditions for accessing a mortgage.
Why a Korean Bank Account is Essential for an Expat
For a foreigner, daily life in South Korea quickly becomes complicated without a local account. Most key operations of daily and professional life are directly linked to it.
Receiving your salary almost always requires a Korean account number. Local employers pay wages into an account in Korean Won (KRW), and cash payments or payments to a foreign account are very rarely practiced by companies.
Paying for housing and utilities in South Korea is greatly facilitated by using a local bank account. Rent and bills (water, electricity, gas, internet) are usually paid by monthly direct debit. Without this account, you will have to make frequent trips to the bank to pay these expenses or find often inconvenient arrangements with your landlord.
Payment apps and the “cashless” lifestyle also assume this local account. Services like KakaoPay, Naver Pay, Toss, as well as shopping on Coupang or Gmarket, work by linking directly to a Korean card or account. Even topping up a transit card like T-money can be linked to an account.
In South Korea, transfers between individuals for everyday expenses (meals, shopping, outings) are done almost exclusively via instant transfers, replacing the use of cash. Not having a local bank account can therefore lead to social isolation.
Finally, outgoing or incoming international transfers, managing potential international tuition fees, or receiving income from abroad are easier with a Korean account properly configured for foreign currency transactions.
In short, for working, housing, consuming, and integrating, opening a bank account in South Korea is not a convenience: it is practically a practical necessity.
The Korean Banking Landscape: An Advanced but Highly Regulated System
The Korean banking system is modern, highly digitized, and very secure. Major metropolitan areas like Seoul or Busan have dense branch networks and a significant number of banks, both local and international.
Major domestic groups – KB Kookmin, Hana Bank, Shinhan, Woori, Industrial Bank of Korea (IBK), NongHyup (NH), Korea Development Bank (KDB), or Busan Bank – dominate the market. Foreign banks like Standard Chartered Bank Korea are also present, while international players like HSBC, Deutsche Bank, DBS, or Scotiabank operate more in the corporate or market segments.
The local banking sector includes 100% digital players like KakaoBank, K Bank, and Toss Bank, whose importance is growing. Their model relies on very advanced mobile applications. However, it is important to note that not all their services are systematically open or adapted to the needs of expatriates.
Branch hours are strict: as a general rule, teller services operate Monday to Friday, from 9 AM to 4 PM. Some branches close for a one-hour lunch break. On weekends, branches are in principle closed, with a few exceptions offering limited services.
Time from which many ATMs close their lobby, especially in smaller banks.
Services are heavily regulated by texts such as the Foreign Exchange Transactions Act, the Real Name Financial Transactions Act, and the deposit insurance system managed by the Korea Deposit Insurance Corporation, which protects deposits (principal + interest) up to 50 million KRW per depositor and per institution.
For an expatriate, this means a banking environment that is very safe, but also very standardized, with specific procedures for foreigners, particularly regarding identity verification (KYC), limits on international transfers, and the use of online services.
Opening a Bank Account: Conditions, Documents, and Process
Opening an account in South Korea is a relatively quick process, but it is practically never done online for a foreigner. You must appear in person at a branch, take a number, wait, and then be assisted by an advisor.
Documents Generally Required
For an expatriate, banks generally require the following documents:
To open a bank account in South Korea as a foreigner, you must present several official documents. Here is the list of essential papers to prepare.
A valid passport for identification and a valid Korean visa.
The Alien Registration Card (ARC) is essential for a fully functional account beyond 90 days in the country.
Essential for receiving security SMS messages and accessing online banking services.
Lease agreement, utility bill, or certificate from the « dong office » (local district office).
Employment contract, employment certificate, university enrollment certificate, or other document according to the reason for stay.
Banks often ask to specify the purpose of the account: receiving salary, paying rent, savings, international remittances, etc. This notion of “purpose of the transaction” is taken seriously from a regulatory standpoint.
Without an ARC, most institutions will, at best, agree to open a limited account. This type of restricted account may impose balance limits, transfer limitations, an inability to use online banking or make international transfers. It is therefore preferable to return to the branch once the ARC is obtained to have these restrictions lifted.
For short-term stays (tourists, very short internships, study visas of less than six months), it is sometimes impossible to obtain an ARC, and therefore to access a fully functional account.
Steps for Opening
In practice, opening an account often follows this sequence:
To open a bank account in South Korea as a foreigner, follow these steps: choose a bank known as “expat-friendly” with an international desk, gather all necessary supporting documents, go to the branch and explain your request to the advisor. Fill out the forms (often available in English), choose the type of account, set up access to online and mobile banking with staff assistance, make a first modest deposit, and immediately receive your ATM/debit card and sometimes a passbook.
The entire process usually takes between 20 and 30 minutes, provided you have all the documents and go to a branch accustomed to procedures for foreigners.
Which Banks to Choose as an Expatriate?
All major Korean banks accept foreign clients, but some are better structured to support them, with English applications, multilingual call centers, and specific products.
Overview of Some Key Players
The table below summarizes some major banks and useful services for expatriates:
| Bank / Service | Key Strengths for Expats | Mobile App (English) | Notable Product for Foreigners |
|---|---|---|---|
| KB Kookmin Bank | Very dense network, suitable for long-term residents | KB Star Banking (partial interface) | KB Welcome Account (reduced fees, preferential exchange rates) |
| Hana Bank | Foreign exchange specialist, very internationally oriented, “Global Lounges” | Hana One Q Global (full interface) | EasyOne Pack Account (reduced fees, discounts on withdrawals) |
| Shinhan Bank | Excellent reputation for English-language services, Global Desk | Shinhan SOL (full interface) | Shinhan Basic Savings checking account and “Global” cards |
| Woori Bank | Extensive network, 24/7 discounts, university partnerships | Woori WON Banking (full interface) | Woori Fortune Salary Account, Woori Global platform |
| IBK Industrial Bank of Korea | Focused on SMEs, services for workers | IBK app (multi-language via i-ONE Bank) | IBK W Account for employees |
| NongHyup (NH) | Very present in rural and agricultural areas | NH app (primarily in Korean) | NH Paymore Account |
| Standard Chartered Korea | Subsidiary of a British group, international orientation | App in English | My Plus Account |
| KakaoBank | 100% mobile bank, integrated with KakaoTalk | Interface partially in English (improving) | Online accounts, virtual cards |
For a new expatriate, Hana Bank, Shinhan, Woori, and KB are often cited as the most accessible, thanks to translated apps, English call centers, and specialized branches. Shinhan, for example, has an English-language customer service at 1577‑8380, Woori at 1599‑8111, KB at 1588‑9999, Hana at 1599‑1111.
Regular Accounts, Foreign Currency Accounts, and Neobanks
The foundation for most foreigners remains opening a checking account (often called “basic savings account”), on which salaries and direct debits are domiciled.
To optimize your financial management, you can add a foreign currency account (USD, EUR, etc.) to limit exchange rate risk or prepare for international transfers. It is also possible to open fixed-term deposit accounts, which offer higher interest rates than a checking account.
The rise of digital banks should not obscure an important constraint: access to neobanks like KakaoBank or K Bank may be restricted for foreigners, or require long-term resident status and perfect mastery of Korean for the 100% online onboarding. Even as interfaces gradually open to English, these institutions today remain more suitable for fully integrated residents than for newcomers.
Bank Cards, Payments, and Local Habits
South Korea is one of the countries in the world where the bank card is used the most. There are about 130 million credit cards in circulation and card payments (credit + debit) represent around 70% of transactions, while cash payments now only account for about 10%.
Debit Cards, Credit Cards, and Transit
Upon opening an account, a withdrawal and payment card (check card / debit card) is generally issued on the spot. A small fee (often around 5,000 KRW) may be charged for its issuance or subsequent replacement.
This card allows:
In South Korea, withdrawing money from an ATM outside your own bank’s network typically incurs additional fees, around 1,000 to 2,000 KRW per transaction. For payments at merchants, it is common to use your bank card, which often integrates a transit card function (like T-money or Cashbee). This functionality allows you to pay for bus, subway, and some taxi trips, consolidating two uses into one card.
For credit cards, conditions are stricter for foreigners: in principle, you need an ARC, stable employment, a local banking history, and often several months of residence. Despite these requirements, major banks (Shinhan, KB, Woori, Hana, Hyundai Card, Samsung Card, etc.) offer products specifically oriented towards foreigners (“Global” cards, E9Pay–Shinhan, etc.), with sometimes translated interfaces.
Korean credit cards often work on the principle of single payment (“ilsibul”) or purchases in installments (“halbu”). These options are often offered directly at the payment terminal or can be configured via the bank’s app.
Mobile Payments and E-Wallets
Mobile payment is omnipresent: KakaoPay, Naver Pay, Toss, Samsung Pay, or wallets integrated into banks have become standard. They allow you to pay for online purchases, at restaurants, in shops, top up a transit card, or even manage your budget.
Access to these services almost requires having a Korean bank account and a local phone number, as they connect directly to the account for debits. Furthermore, as the interface is often only in Korean, using automatic translators or help from a person fluent in French or English and Korean may be necessary.
Reference Points on Common Fees
Fees are generally charged per transaction rather than via monthly subscriptions. The following table gives some approximate figures:
| Type of Operation | Typical Fee Range |
|---|---|
| Domestic transfer | Approx. 500 to 1,000 KRW per transaction |
| Withdrawal from another bank’s ATM | Approx. 1,000 to 2,000 KRW |
| International remittance via bank | Approx. 5,000 to 30,000 KRW depending on amount |
| Issuance / reissuance of ATM/debit card | Around 5,000 KRW |
| Issuance of digital security certificate | Approx. 4,400 KRW (valid for one year) |
Checking accounts generally have neither monthly maintenance fees nor a significant minimum balance requirement. It is the additional operations and products (transfers, currency exchange, certificates, etc.) that generate the majority of the costs.
Online Banking, Digital Certificates, and Enhanced Security
South Korea has implemented a very high level of online security, which often surprises expatriates accustomed to simpler procedures.
To access online banking services, a username and password are not enough: most institutions require a combination of digital certificates, OTP (One-Time Password), and one-time or frequently renewed passwords.
The digital certificate is a secure file that acts as a key to validate sensitive operations (transfers, tax filings…). It is stored on a computer, USB key, or smartphone. It must be renewed regularly, about every 12 months. Its installation may require additional software and specific configuration, due to the use of older technologies.
Banks also generally provide an OTP device, either physical (a small key fob generating temporary codes) or integrated into the mobile app. This code is required to confirm transfers or certain critical operations.
The set of measures may seem cumbersome at first, but it fits within a context of intensive fight against fraud and hacking. As a precaution, it is recommended to apply them rigorously.
– To ask for employee assistance to install the app and certificate when opening the account
– To verify that the name registered at the bank exactly matches the one on the passport (order of given names, accents, etc.)
– To keep your Korean phone number updated and in your own name, so as not to block security SMS messages
– To protect your digital certificate like a password (no sharing, secure backup, no installations on public computers)
Managing International Transfers and Currency Exchange
An expatriate almost always has to juggle multiple currencies and countries: sending part of their salary to their home country, repatriating savings, paying for studies abroad, funding an investment account, etc.
In South Korea, these movements are regulated by the Foreign Exchange Transactions Act. To make international remittances from a Korean account, it is necessary to designate a single bank as your “primary foreign exchange bank” (Foreign Designated Bank). This designation is done at a branch, once and for all, but can be changed later upon request.
The annual cumulative amount for transfers abroad beyond which banks may request additional explanations.
Transfers via Korean banks generally take 2 to 3 business days. Besides the fixed fees charged by the sending bank and sometimes the receiving bank, a hidden cost lies in the exchange rate applied, often less favorable than the market rate (mid-market rate).
To reduce money transfer costs, expatriates can use specialized providers like Wise, Remitly, OFX, SentBe, WireBarley, or Western Union. Wise applies the average market exchange rate with explicit fees, often lower than banks for reasonable amounts. Services like DSGPay also offer virtual accounts in Korean Won (KRW) and other currencies, which is useful for freelancers or entrepreneurs working internationally.
An effective approach is to combine:
– A local bank account, for salary, daily expenses, direct debits, and exchanges with Korean institutions
– One or more multi-currency accounts (Wise, Revolut, etc.) to optimize transfers, travel, payments in foreign currencies, and exchange
– An investment or savings account in the home country or on an international platform, for building long-term wealth
Expatriate Taxation: Taxes, Pension, and Filings
The financial management of an expatriate is not limited to opening an account or choosing a bank. Local and international taxation plays a central role in optimizing their income and assets.
Tax Residency and Income Taxation
South Korea applies a system where the status of tax resident is determining. You are generally considered a resident if you stay in the country for at least 183 days in the calendar year, or if you have a permanent home (residence, family, professional activity requiring a prolonged presence).
Tax residents are, in principle, taxed on their worldwide income. However, foreigners who have been residents for five years or less in the last ten are taxed on their foreign-source income only if that income is paid or remitted to Korea. Beyond this threshold, the taxable base widens.
Non-residents in Korea are only taxable on their Korean-source income. Income earned abroad is not subject to Korean tax.
Income tax rates are progressive, ranging from 6% for the lowest brackets up to 45% for the highest incomes, to which is added a local surtax of about 10% of the national tax. At the same time, a special mechanism allows certain foreign workers to opt for a flat rate of about 19% on employment income of Korean origin, in exchange for forgoing certain deductions and credits.
Social Contributions and Pension
Salaried employees contribute to the national pension system (National Pension Scheme) at a rate of about 9% of gross salary, shared equally between employer and employee. To this are added National Health Insurance, unemployment insurance, and workers’ compensation insurance, in varying proportions.
For many expatriates, these contributions are not lost: according to the agreements in force with their home country, a lump-sum refund of pension rights can be requested upon final departure from Korea. Furthermore, social security agreements (totalization) allow for the coordination of contribution periods between countries and avoid double contributions.
Double Taxation and Specific Obligations for Americans
South Korea has concluded tax treaties with many states, including the United States, to limit cases of double taxation. In practice, this means that tax paid in Korea can be taken into account in calculating potential tax in the home country, via tax credits or exemption mechanisms.
U.S. citizens residing abroad must declare their worldwide income to the IRS. They can use the Foreign Earned Income Exclusion or the Foreign Tax Credit to reduce their U.S. tax liability. Specific filings (FBAR, FATCA) are also mandatory for financial accounts held outside the United States when certain balance thresholds are exceeded.
For any expatriate, it is highly recommended to be assisted by a professional familiar with both Korean taxation and that of the home country, especially in the case of multiple income streams (salaries, dividends, capital gains, rents, etc.) or significant investments.
Health, Insurance, and Direct Debits
Health coverage is another financial pillar of expatriate life. In South Korea, foreigners residing for more than six months with an ARC are legally required, with few exceptions, to enroll in the National Health Insurance (NHI) system.
Monthly contributions for a self-employed person or student to the NHIS can amount to about 140,000 KRW.
This direct link between bank account and health insurance once again illustrates how crucial the proper configuration of banking services is for daily life: without an account, it is difficult to regularly pay these contributions, and therefore to remain in compliance and properly covered.
Investments, Real Estate, and Credit for Foreigners
Long-term expatriates, or those with significant savings capacity, are often interested in investment in South Korea: stocks, bonds, real estate, or even crypto-assets.
The country has a dynamic stock exchange, the Korea Exchange (KRX), with several indices (KOSPI, KOSDAQ, KRX 100) and more than 2,500 listed securities. Foreigners can freely purchase stocks and other securities, notably through international brokers that provide access to the Korean market (Interactive Brokers, for example).
Foreigners can generally purchase real estate, with the exception of sensitive zones. However, recent restrictions apply in high-demand areas like Seoul, Gyeonggi, and Incheon, where non-residents may need permission and a commitment to occupy the property for at least two years.
For resident expatriates with long-term visas (certain F and E visas, notably), access to mortgage credit is possible but comes with stricter conditions than for Korean citizens: down payment often between 30% and 50% of the property price, lower loan-to-value (LTV) ratios, increased requirements for income stability and banking history. Interest rates can range, depending on the profile, between 2% and 6%, sometimes more for certain products or regional banks.
Here again, the quality of the banking relationship plays a role: having a clean history and an active account with a major institution (Hana, Shinhan, KB, Woori, IBK) facilitates obtaining a loan or a more sophisticated financial product.
Financial Management Strategies for Expatriates: Some Avenues
Faced with the complexity of a multi-currency, multi-bank, and multi-tax environment, it is useful to adopt a structured approach to financial management.
A proven logic is to: avoid rushing into decisions and to analyze all available options.
For optimal financial management as an expatriate in Korea, it is recommended to structure your banking system in three parts. First, open a local checking account with a bank suitable for foreigners, with a debit card, online access, a configured digital certificate, and direct debits for rent and health insurance. Second, use a multi-currency account (Wise, Revolut) for international transfers, online payments, and travel. Third, maintain an account in your home country for long-term savings, debt repayment, or certain expenses. Finally, implement automatic savings (50/30/20 method) and build an emergency fund covering 9 to 12 months of expenses, distributed between Korea, your home country, and a safe-haven currency.
Expatriates with more complex situations (dependents, international schooling, real estate investments, stock portfolios, income from several countries) are well-advised to consult a financial advisor specialized in international clients, accustomed to managing cross-border taxation and exchange rate risks.
Conclusion: Taking Advantage of an Advanced Banking System Without Getting Lost
South Korea offers a sophisticated banking and financial environment that is high-performing and overall very favorable to digital payments, online services, and security. For an expatriate, this sophistication can however become a source of confusion if not prepared for local specifics: importance of the ARC, apparent heaviness of digital certificates, limits on international transfers, cultural differences in payment methods.
Upon your arrival, dedicate time to choosing a bank suited to your profile and needs. Carefully prepare the required documentation for opening an account. Once the account is open, correctly configure your online services (apps, alerts, transfers). Finally, actively inform yourself about French tax rules and currency exchange procedures for your international transactions. This proactive approach allows you to make the banking system an asset rather than a constraint.
The result, for an expatriate, is smooth management of money flows between South Korea and abroad, facilitated integration into an almost cashless daily life, and solid foundations for building a medium or long-term project in one of the most dynamic countries on the planet.
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Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
