Basic Information about Opening an Account and Doing banking in Korea for International Students

  This article tells you about financial information that you need to know when you study in Korea. It explains the Korean monetary unit, method of currency exchange and remittance, establishing an account, and depositor protection system in Korea.

 

 

Hello, it’s OIA from Silla University's Office of International Affairs!

  In this post, I will provide you with basic information about how foreign students open accounts in Korea as well as financial matters.

  To begin with, various financial products and services, such as deposits, funds, and insurance products, are available in Korea through various financial institutions. Financial transactions of foreigners staying in Korea, however, may be restricted. This is because, in comparison to Koreans, all of their financial transactions are subject to relatively strict domestic regulations. Furthermore, because the document and transaction limits differ depending on the type of transaction, attention should be paid to the relevant regulations in the case of foreign exchange transactions.

  These operations are generally open from 9 a.m. to 4 p.m. at the bank. Some banks have recently opened on weekends for the convenience of their customers. They are open on holidays so that foreign workers who are unable to visit the bank during weekday business hours can conveniently transfer money overseas. I will introduce financial information, such as how to open an account in earnest.

 

1) The Korean Monetary Unit

  Because each country uses different currency units, I believe this is the most intriguing and perplexing information. Won(￦) is the currency unit in Korea, and there are four types of coins and four types of banknotes.

  Coins have denominations of 500 won, 100 won, 50 won, and 10 won, while banknotes have denominations of 50,000 won, 10,000 won, 5,000 won, and 1,000 won. The largest unit in bills is 50,000 won, and the largest unit in coins is 500 won. In addition, two 500 won coins equal one 1,000 won bill, and ten 1,000 won coins equal one 10,000 won bill. Coins, in this manner, can be used to convert bills into bigger denominations of bills.

 

Korean currency type

 

2) Method of Currency Exchange and Remittance

① Currency Exchange  

  It is said that you can easily exchange your foreign currency or traveler's checks at Korea's currency exchange offices, which are located in banks and airports. However, each bank may have a different currency that can be exchanged, so if you are exchanging large sums of money or currency other than dollars, you must contact the bank beforehand. Furthermore, Internet banking exchanges are generally advantageous in the application of exchange rates, so if you know how to access and use them, it may be beneficial to do so.

② Remittance  

  If you need to send overseas roll money from Korea, you can do so through a nearby bank. You can send money through a foreign exchange bank and send money overseas without requiring proof of up to USD 50,000 per year. If the amount exceeds USD 50,000, you must provide the bank with the necessary documentation. However, fees for each bank may vary, so it's best to check ahead of schedule and remit the money. If you want to send money to a foreign bank account, you can do so quickly and easily with a telegraphic transfer. In English, write the recipient's name, address, bank account number, bank name, and branch name.

 

3) Establishing an Account

  If you have your own account, you can do all of your banking much more easily. To do so, you can go directly to the bank and open an account, or, these days, you can open an account online. I'll go straight to the bank and give you a quick rundown of what you need to do to open an account.

 

(1) Bring your ID card (from your passport, alien registration card, or resident registration card) and a seal (you can sign it if you don't have a seal) with you to the bank.

(2) When you arrive at the bank, take a number and wait for your number to be called. 

(3) Tell the bank clerk, "I'm here to open a bank account," and request internet banking. It is recommended at this time to apply for an ATM card together, if possible.

(4) Complete the application form. (Enter information such as the contents checked by the bank employee, the resident registration number or alien registration number, the birthday, address, contact number, signature, and so on.)

(5) Together, create a password for your bankbook and cash card.

(6) Account creation is complete (take care of your bankbook and card)

 

4) Depositor Protection System

  If you subscribe to various financial products in Korea, such as deposit products, it is also a good idea to check whether the product you subscribe to protects depositors.

  Korea protects customers' deposits by enacting the Depositor Protection Act to prevent them from being unable to pay deposits (such as when financial companies are unable to pay deposits due to business suspension or bankruptcy).

  In addition, regardless of whether they live in Korea or not, foreigners who subscribe to protected deposits at domestic financial institutions will be protected up to 50 million won per person under the Depositor Protection Act.

  However, if you subscribe to a place like an investment product, you will not be protected, so I recommend that you research the product before signing up.

 

 

  If you want to study abroad, you can learn the basics by referring to the information presented above. Also, if you learn a little about Korean currency units, you will be able to adjust to life in Korea much faster and will be of great assistance. Also, credit cards and online financial services are becoming more popular in Korea, so if you come to Korea, you should first open a bankbook and an account, and if you are living in Korea for the first time, you should visit the bank at least once and open it safely. 

  I'll wrap up my introduction to financial information in Korea. Thank you very much!😃