South Korea has transformed itself
into a mainstream place for foreigners to make it the home for them and their
business. Of the major requirements that encourage foreigners to shift base to
South Korea is to work as English language teachers or to get employed in
foreign enterprises.
The country is
recognized as being the hub of electronics and telecommunications establishments.
It is a favorite business
destination despite challenges faced by foreigners, such as language issues, transportation
and the diverse culture. In case relocation to South Korea is on the cards for
you, you must get a good deal of information before you take the first step and
learn how to open a bank account.
This article will focus
on the different shades concerning opening a bank account in South Korea.
Prepare before You Proceed to the
Bank
Even though different
banks ask for different types of paperwork, there are some fixed basic documents
that every bank in Korea will ask for:
Certificate
of Employment (재직증명서 | jaejikjeungmyeongseo)
This is a more recent condition
that a few large banks have put forward and it will not be unexpected if you
are asked to produce it. It is a likely evidence or testimonial of work such as
a signed agreement with your company. Bear this in mind if your purpose to be
in South Korea is for work
If your visit to Korea
is for pursuing studies, or you are in the country on an education visa, then your
institute must have a contract with some bank and should be in a position to
provide you with all the help related to the information that is required to open
an account.
Passport/Visa
(여권/비자 | yeogwon/bija)
The passport along with
the visa
are two documents that you ought to have when you are visiting Korea to seek
employment or study. Remember to carry these with you or your trip will not
happen at all. The normal requirement is your passport and one more photo ID.
Korean
Phone Number (한국 내 전화번호 | hangungnae jeonhwabeonho)
This number must be in
the bank records so that the bank can connect with you for anything related to
your account if required. Usually, an international number is not accepted. And
it is best to let them have a number that would make you easy for them to reach
if there’s a problem with your account.
If you have no number
that can be given, you may refer an acquaintance’s number to the bank and
later, replace it with your own.
Foreigner
Registration Card (ARC | 외국인 등록 카드
| oegugin deungnok kadeu)
If
you are holding an ARC, you have the maximum number of choices for a functional
account. For instance, you have the facility of online banking, the chance to
have an ATM card and transfer money abroad.
Once in a while,
acquiring and ARC can take as much as a month. This information is already
there with the banks. In case, you are not having an ARC card or it is in one
of the processes that it is required to pass through before it reaches you,
majority of the banks permit the candidate to open an account by simply producing
a passport.
However, the account
holder will not be able to avail all the services of the bank or you can use it
personally via a bank teller for the time being.
If you visit South
Korea on a short-term education visa, you may not be a qualifying candidate for
an ARC.
In case you do not
possess an ARC you will have to let go of a few services at your bank or review
your decision to open a bank account.
Application Process
Once you have all the paperwork, you are required to make a bank
visit. It is advisable to make this visit during the early hours of the day
since banks close during the midday and they are least crowded in the morning.
At the Bank
You need to fill in the forms that you are given, with your real
name, address and phone number. Doing a check on the smaller details is needed to
ensure the services that you require.
After Completion of Documentation
After completion of all paperwork concerning the application, a maximum
number of banks will give you a bank card that is ready for use. Among the
receivables are a bank book and an ATM card, in case you have requested for one.
It’s a very organized process.
The bank books must be kept secure as they need to be produced on
demand for official purposes, as and when required.
The bank books hold the same value as does your bank card so in
case of loss of either of them, the bank authorities must be immediately
informed.
It is always better to get used to keeping your bank book regularly
updated, to the tune of a minimum of once a month. This in return keeps you
well aware of the present status of your account balances and how you are
financially placed.
This
is Essential to Your Account
Here are some of the more specifics that might be necessary to get
to know with respect to your account and services that come with it.
Online Banking
Every principal bank offers the facility of internet banking and all
international banks have options in English as well as other languages). Nevertheless,
the options in general, are fixed and precise and will be advantageous for the majority
of the common transactions. Therefore, it is beneficial to have them.
Categories of Account
In the capacity of a multi-functional
bank account, a maximum number of foreigners will prefer to go for a regular
account. It is to be noted that the amount of interest that comes to your
account is very
less. If an account is to be opened with the perspective of long-term
savings then opening a savings account would be a much better idea.
The longer the money remains in the
account (term of deposit), the higher will be the rate of interest.
Foreign
Currency Accounts
A different way of banking in South Korea is by way of a foreign
currency or multicurrency account. This banking is as a rule online in nature
and geared towards enabling you to run your account 24/7.
Across the frontiers, offshore business accounts can also be
considered a choice, when the intention is to carry out transactions in Korean
Won denominations and there is no need or possibility to open a bank account in
South Korea. Online money transfer specialists help run these accounts. The
charges for such accounts are much cheaper and they provide much better rates
of exchange, as compared to a typical bank.
A Few Highlights
Although South Korean bank accounts do not have a general practice
of applying maintenance charges, the account holder might face a few other
types of charges. One rule that stands out is the practice of applying charges
for use of an ATM outside of official banking hours.
Other applicable charges may be:
·
On receipt of ATM card
·
On conclusion of a transaction with a teller
·
On the use of an ATM outside your network
Conclusion
Opening a bank
account in South Korea is a process that can just take a day to complete. Also, many major city branches have
provisions to offer their services in English. However, the candidate is
required to be physically present.
Contact our specialists so that we can help you open a bank account
in South Korea.
