Opening a Korean bank account for foreigners complete guide 2026

Navigating the financial landscape of a new country is often the first major hurdle for expats, and South Korea is no exception. While Korea is a hyper-digital society where cash is rapidly disappearing, the banking system can feel surprisingly analog and bureaucratic for newcomers. Whether you are a student at Yonsei University, an English teacher in Gangnam, or a digital nomad on a working holiday visa, securing a local bank account is arguably the most critical step in settling down.

Without a local account, you cannot order food delivery via Baedal Minjok, pay for online shopping on Coupang, or even pay your monthly rent efficiently. While international cards are widely accepted at merchants, they are useless for domestic transfers, which are the backbone of the Korean economy.

You might also enjoy our article about Opening a bank account in Korea step by step guide.

The Two Main Types of Accounts

Before walking into a branch, it is vital to understand the "Dualism" of the Korean banking system for foreigners. Since regulations tightened in recent years to combat voice phishing and money laundering, banks have become incredibly strict about who opens an account and why.

For more details, check out our guide on Credit cards in Korea which banks accept foreigners 2026 ....

1. The Restricted Account (Han-do Je-han)

If you do not have an Alien Registration Card (ARC)—now officially called the Residence Card—or cannot provide proof of income/employment, you will be given a "Restricted Account."

You might also enjoy our article about Finding an apartment in Korea complete guide for foreigners.

• ATM Withdrawal Limit: ₩300,000 (approx. $225 USD) per day.
• Online Transfer Limit: ₩300,000 per day.
• In-Branch Limit: ₩1,000,000 (approx. $750 USD) per day.

This is the default starting point for 90% of new arrivals. While frustrating, it is functional for basic spending like groceries and subway fares.

Related reading: Korea phone plans and sim cards for foreigners.

2. The General Account (Unrestricted)

To unlock normal transaction limits (usually starting at ₩5,000,000 or $3,750 USD per day), you must prove your financial identity. This requires a Residence Card and "Proof of Purpose," such as a verified employment contract or a Certificate of Enrollment from a university.

Required Documents: The Checklist

Showing up unprepared is the fastest way to waste an afternoon. Korean bank branches are efficient, but they are rigid regarding paperwork. The average consultation time for a foreigner opening an account is 45 to 60 minutes, significantly longer than for locals due to additional forms (FATCA for US citizens, etc.).

For a Restricted Account (Tourist/Short-term):

1. Passport: Must have at least 6 months of validity remaining.
2. Korean Phone Number: Essential for identity verification. A prepaid SIM is acceptable, but a postpaid plan is preferred for online banking setup.
3. Proof of Address: A hotel booking is rarely accepted anymore. You usually need a housing contract or a "Confirmation of Residence" from a guesthouse or Airbnb host, signed and dated within the last 3 months.

For a General Account (Resident):

1. Residence Card (ARC): The plastic card itself is best, though some banks accept the "Certificate of Alien Registration" paper temporarily.
2. Passport.
3. Proof of Purpose (Mandatory):
   • Employees: Certificate of Employment (Jae-jik Jeung-myeong-seo) and Employment Contract.
   • Students: Certificate of Enrollment (Jae-hak Jeung-myeong-seo) and Student ID.
   • Teachers: Contract signed by the school principal.

Choosing the Right Bank

The "Big Four" banks dominate the Korean market. While interest rates are negligible on standard checking accounts (averaging 0.1% to 0.2% APY), the difference lies in app usability and English support.

KEB Hana Bank

Widely considered the most foreigner-friendly bank. They operate dedicated "Global Desks" in areas like Itaewon, Hongdae, and Gangnam where staff speak fluent English. Their app, "Hana EZ," is specifically designed for expats and supports 16 languages.

Woori Bank

The go-to choice for students. Woori has strong partnerships with major universities like Yonsei, Sogang, and Ewha. If you are a student, opening an account at the branch located on your campus is the easiest hack—they process hundreds of student accounts weekly and have a 99% approval rate for students.

Shinhan Bank

Known for the best technology. The "Shinhan SOL" app is robust and intuitive. They are increasingly foreigner-friendly, but their English support varies heavily by branch location.

KB Kookmin Bank

The largest bank in Korea by asset value. While reliable and everywhere (over 850 branches nationwide), their English banking interface is often criticized for being clunky compared to Hana or Shinhan.

The Step-by-Step Process

Banks in Korea operate on strict hours, typically 09:00 to 16:00, Monday through Friday. Avoiding lunch hours (11:30–13:30) is crucial, as staff operate on shifts, doubling the wait time.

Overcoming the Transaction Limit (Unlocking Your Account)

You’ve opened the account, but you are stuck with the ₩300,000 daily limit. How do you lift it? This is the most common frustration for expats living in Korea.

Banks generally require 3 months of account history or specific proof that you are making money to lift the restriction.

1. Salary Transfer: The easiest method. Once 3 months of salary have been deposited into the account labeled as "Salary" or "Pay," the limit is usually lifted automatically or upon a quick visit.
2. Utility Bills: Pay your gas, electricity, or management fee (Gwan-li-bi) through the account for 3 consecutive months. Bring the receipts to the branch.
3. Credit Card Usage: If you qualify for a credit card (difficult without credit history), spending over ₩1,000,000 consistently for 3 months can help unlock the account.

Costs and Fees

Banking in Korea is relatively cheap compared to the West. There are typically no monthly maintenance fees for checking accounts. However, ATM fees and transfer fees can add up if you aren't careful.

• ATM Fees: Using your own bank's ATM is free during business hours (08:30–18:00). Outside these hours, fees range from 500 to ₩1,200 per withdrawal.
• Inter-bank Transfers: Transferring money to a different Korean bank usually costs ₩500, though this is often waived if you use mobile banking.
• International Transfers: Sending money abroad via a traditional bank is expensive, with swift fees averaging 20,000 to ₩40,000 plus exchange rate markups of 1-2%.

Internet-Only Banks: KakaoBank and Toss

With the rise of fintech, KakaoBank and Toss Bank have become massive players, holding over 20 million users combined. Can foreigners use them?

Yes, but with caveats. To open a KakaoBank or Toss Bank account, you MUST have a Residence Card (ARC) and a Korean mobile phone number under your own name (verified identity). You cannot open these accounts on a tourist visa or with just a passport.

Location Spotlight: Where to Go?

If you are in Seoul and nervous about the language barrier, heading to a specific "Foreigner Center" branch is worth the extra travel time. These branches are staffed with multilingual personnel and are accustomed to the complex paperwork of non-residents.

The "Digital Certificate" (Joint Certificate)

A unique aspect of Korean banking is the "Joint Certificate" (formerly Public Certificate). This is a digital file that acts as your online ID. You need it for almost everything: banking, government websites, and verifying your identity online.

When you open your account, you must download this certificate to your phone or PC. It expires every 1 year and must be renewed. Losing the password to this certificate is a major headache, requiring a branch visit to reset, so memorize it well.

Leaving Korea: Closing Your Account

When your time in Korea ends, do not just leave the account dormant. If you leave without closing it, and then try to return years later, you may find your account frozen or "suspended," making it difficult to open a new one.

However, if you plan to receive a deposit (like a security deposit return) after you leave the country, keep the account open. You can maintain a Korean bank account even without a valid visa, provided it was opened while you were a resident. You just won't be able to renew the debit card or digital certificate once your ARC expires.

Frequently Asked Questions