Banking in Korea: opening an account, lifting limits and sending money home

You can walk out of a Seoul bank branch with an account in an hour. Getting it to do everything you need, including paying rent and sending money to Australia, takes a little more paperwork.

The short version

• Open your account in person at a branch with your passport and residence card (ARC) [1]. You'll usually get a bankbook and a card on the spot [1].
• New accounts without proof of purpose start as "limited accounts", capped at 1 million won a day for online and ATM transfers since May 2024 [2]. An employment contract or similar document lifts the cap.
• Mobile banking needs a Korean phone in your own name. So does the mobile residence card, which some banks accept for opening accounts [3].
• To send money home, nominate one bank as your designated foreign exchange bank. Small amounts go without paperwork; larger ones need proof the money is your Korean income [1][4].
• Compare the rate, not just the fee. That's where Korean banks and remittance services differ most.

How Korean banking differs from home

Australian banks let you open an account online before you land. Korean banks are stricter, mostly because Korea fights a constant battle with voice phishing and accounts rented out to scammers. Expect more paperwork, more identity checks and lower limits at the start.

A few other differences:

• Branches keep office hours. Branches are generally open 9 am to 4 pm on weekdays [1]. Plan to visit in your lunch break or take a morning off.
• Bankbooks still exist. You'll often get a paper passbook along with your card [1].
• Account transfers rule. Rent, deposits and many bills are paid by direct bank transfer, not card. A limited account can make paying a large deposit awkward.
• Foreign cards work, mostly. Smartraveller notes ATMs are common in cities but some foreign debit cards won't work, while credit cards are widely accepted in hotels, restaurants, shops and taxis [5]. Many airlines and travel sites in Korea don't accept foreign credit cards for domestic flights online [5].

Which bank, and what to bring

The big commercial banks, such as Shinhan, KB Kookmin, Woori, Hana and NH Nonghyup, all open accounts for foreign residents. Some branches near universities, Itaewon, Gangnam's business district and the Seoul Global Center see more foreign customers and are more used to the process. Call ahead or ask colleagues which branch they used.

Two practical things matter more than brand:

• Pick a bank near work or home. You may need to visit more than once.
• Choose with remittance in mind. If you'll send money to Australia often, ask about overseas transfer fees and the exchange rate before you open.

Documents

Requirements vary by bank, so ask the teller to write down the exact Korean name of any document you're missing [6].

The mobile residence card option

Since 21 March 2025, six banks, including Shinhan and Hana, have accepted the mobile foreigner residence card for opening accounts [3]. You need to be a registered resident aged 14 or over with a smartphone in your own name [3]. Our guide to your ARC in Seoul covers getting the card.

Limited accounts: the 1 million won cap

This is the bit that surprises Australians. If you open an account without showing why you need it, the bank opens a limited account (hando jehan gyejwa).

The limits were raised on 2 May 2024 [2]:

One million won a day sounds fine until your landlord wants a key-money deposit or a month's rent in one transfer. To lift the limit:

1. Get your employment contract or a salary transfer confirmation from your employer. Students can use an enrolment certificate or tuition receipt [6].
2. Take it to your branch with your passport and ARC. Ask to have the limit removed.
3. Expect the bank to check your documents. Banks can now pull some of this information with your consent, which can cut down on paper [2].
4. Ask for your new daily limits in writing. Online, ATM and counter limits can differ.

Until it's lifted, plan big payments at the branch counter, where the cap is higher [2].

Mobile banking and identity checks

Korean banking apps are excellent once they're working. Getting them working is where foreigners stall.

• Your phone must be in your own name. Mobile banking setup usually runs through carrier identity verification. A line in your employer's or landlord's name will fail. See our guide to phone numbers and identity verification in Korea.
• Names must match. Your bank record, ARC and phone contract need the same spelling and order.
• Set up the certificate at the branch. Banks use a financial certificate (geumyung injeungseo) or a joint certificate for logging in and approving transfers. Setting it up before you leave the branch is much easier than doing it remotely [6].
• Expect a one-time password device or app. Large transfers usually need a second factor.

Never lend your account

Scammers pay people, often foreigners about to leave Korea, to "rent" their bank account or card. If your account is used for fraud, you can face criminal charges and lose access to banking. Close your accounts properly when you leave instead of handing them on.

Sending money home to Australia

Designate your foreign exchange bank

Korea controls outbound money more tightly than Australia does. To send money abroad, you nominate one bank as your designated foreign exchange bank, and your transfers go through it [1][7]. Some banks need you to visit a branch to set this up [7].

Limits and paperwork

• Without documents. Foreign residents can send up to US$50,000 a year (including fees) through their designated bank without proving where the money came from [1][4]. Korea's government announced plans in 2023 to double the undocumented limit to US$100,000 [8], so ask your bank which limit applies to you.
• Above that. You can send up to the amount you've earned in Korea if you show documents proving that income, such as your employment contract and payslips or a certificate of earned income [1][4][7].

Ways to send

Korean banks deal directly in a limited set of currencies, and some transfers are converted via USD first [4]. That can mean two conversions on the way to your Australian account. Always compare the Australian dollars that land, not the headline fee.

The Australian side

• Tell the ATO the right story. If you're still an Australian tax resident, your Korean salary and interest generally belong in your Australian return, with credit for Korean tax under the Australia–Korea tax treaty. If you're not, let your Australian bank know so the right withholding applies. Our guide to Australian tax residency after moving covers the tests.
• Keep one Australian account open. You'll want somewhere for transfers to land and for bills back home.
• Large cash moves. Smartraveller notes you must declare more than 8 million won, or US$10,000 equivalent, when you arrive in Korea [5].

Share which branch opened your account without fuss in Cooee South Korea, our Facebook group for Australians in South Korea. The next new arrival will thank you.

Sources

1. Banking for foreigners: accounts, exchange and remittance – Seongbuk-gu Office, Seoul
2. Limits on limited-transaction accounts raised from 2 May 2024 – Asia Economy
3. Mobile foreigner residence card accepted for opening bank accounts at six banks – Financial Services Commission (March 2025)
4. Sending money abroad – IBS Research Centers living guide
5. South Korea travel advice – Smartraveller
6. Banking in Korea for foreigners – Seoul Start
7. Overseas remittance for foreigners and non-residents – Citibank Korea
8. Korea doubles undocumented overseas remittance limit to $100,000 – KED Global (February 2023)

Keep reading

• Your ARC in Seoul: booking immigration and the 90-day deadline
• Phone numbers in Korea: why everything needs identity verification
• Sending money home without losing it to fees
• Keeping Australian accounts while abroad