Introduction
Sending and receiving money to and from Korea can be a complex process due to the unique characteristics and limitations of the Korean banking system. As a country with a robust domestic financial infrastructure, Korea has developed its own isolated banking ecosystem that can present challenges for international transactions.
When it comes to receiving money from abroad, Korean banks typically allow incoming wire transfers through the SWIFT network. However, this process can be slow and potentially costly due to intermediary bank fees. For sending money abroad, Koreans and foreign residents with a local bank account can initiate outgoing wire transfers, but these may be subject to daily and monthly limits, especially for personal accounts.
Some key limitations of the Korean banking system include:
- Language barriers: Many Korean banks have limited English support, which can make it difficult for non-Korean speakers to navigate the system.
- Strict regulations: Due to anti-money laundering laws and other financial regulations, opening accounts and conducting large international transactions may require extensive documentation.
- Limited integration with global financial systems: This isolation can make it challenging to use some international financial services or credit cards within Korea.
Despite these limitations, there are several options available for sending and receiving money internationally in Korea.
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In this post, I'll explain different options for sending and receiving money to and from Korea.
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- Deposit Cash via ATM ๐ฆ
- Receive Money from Abroad ๐ to Korea ๐ฐ๐ท
- Send Money from Korea ๐ฐ๐ท to Abroad ๐
- Send/Receive Money within Korea ๐ฐ๐ท
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Deposit Cash via ATM ๐ฆ
The easiest option I did for a very long time when I first came to Korea was to withdraw cash from an ATM using my foreign card and then deposit it into my Korean bank account via ATM. This method can be useful if you need to quickly transfer funds from a foreign account to your local Korean account. However, be aware that this may incur ATM fees and potentially unfavorable exchange rates from your foreign bank.
Receive Money from Abroad ๐ to Korea ๐ฐ๐ท
When you need to send funds to your Korean bank account from your foreign bank account, such as for a housing deposit or language school fees, you have several options:
International bank transfer (SWIFT):
This is a common method, but it can be slow and potentially costly due to intermediary bank fees. You'll need your Korean bank account details, including the SWIFT code. You can find your bank details in your bank book to receive.
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Name:
Bank Account Number:
SWIFT/BIC Code:
Phone Number:
Email (Optional):
Online payment services:
Platforms like Wise (formerly TransferWise) often offer competitive exchange rates and lower fees than traditional banks. You can transfer money from your foreign account to your Korean account through these services.
I've personally used Wise for the past four years and have been very satisfied with their rates, fees, and especially their fast transfersโwhich usually take just minutes!
- Remittance services: Companies like Western Union or MoneyGram can be used to send money to your Korean bank account. These services may be faster than traditional bank transfers but can have higher fees.
Send Money from Korea ๐ฐ๐ท to Abroad ๐
If you've started working in Korea and received your salary in Korean Won, setting aside funds in your home country presents a unique challenge. The Korean banking system is highly regulated and somewhat isolated, making international transfers to foreign currencies more complex than you might expect.
Bank transfers:
Koreans and foreign residents with a local bank account can initiate outgoing wire transfers, but these may be subject to daily and monthly limits, especially for personal accounts.
Visiting a Korean bank in person can be challenging, especially for foreigners. When you first open your account, there are often strict restrictions on transfers, limiting you to small amounts (around 300,000 Won or $220). To increase these limits, you typically need to provide proof of employment and request the bank to lift the restrictions. The fees and exchange rates offered by banks are often less favorable compared to other options. For a smoother experience, it's advisable to bring a Korean-speaking friend who can help explain your situation and navigate the process.
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Online Remittance Services:
- SentBe: This Korean app allows you to send money abroad from your Korean bank account without the need to go to a bank teller and pay hefty fees.
- Wirebarley: This is another popular Korean fintech company that offers international money transfer services. Wirebarley supports transfers to various countries and is known for its user-friendly mobile app.
Send Money within Korea ๐ฐ๐ท
For transfers within Korea, the process is generally fast and straightforward. Most Korean banks offer online banking services, making it convenient to perform transfers from the comfort of your own home.
Conclusion
Navigating the financial landscape in Korea can be challenging, especially for foreigners, but understanding the available options for sending and receiving money is crucial. While the Korean banking system has its unique characteristics and limitations, there are several methods to facilitate international transactions.
For receiving money, options range from traditional bank transfers to modern online payment services like Wise. When sending money abroad, services such as SentBe and Wirebarley offer convenient alternatives to traditional bank transfers. Domestic transfers within Korea are generally straightforward and can be easily managed through online banking services.
As Korea continues to integrate with the global financial system, more user-friendly options are likely to emerge. However, it's important to stay informed about regulations, fees, and exchange rates to make the most cost-effective choices for your financial transactions. Whether you're a short-term visitor, an expat, or a long-term resident, understanding these options will help you manage your finances more effectively in Korea.
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About the Author
Kim Ninjaย (Huy-Kim Nguyen)
Cloud Engineer / WebApp Developerย ๐ป
Content Creatorย Bridging Korea ๐ฐ๐ท to the World ๐
Startup Founderย based in Seoul, South Korea ๐
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The blog published by Kim Ninja (Huy-Kim Nguyen) is available for informational purposes only and is not considered legal advice on any subject matter.
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