Banking and Payment (2024)

Money generallymoves in Korea through bank transfers or via cash transactions. Koreans do not 'write cheques' as may happen in your home countries. Instead, payments are made through bank transfers (money is 'wired' from one localaccount to another).

If you do not have a Korean account, you will not be able to receive payments. However, you will be able to make them. It is not necessary to have a bank account to move money into someone else's account. The transactions can be done by tellers in any Korean bank - not necessarily the one to which the payment is going.

International Credit Card

CREDIT CARDS ISSUED OVERSEAS can be used in Korea with most merchants, although Korean credit cards are often required for online purchases. You must continue to make payments on your overseas credit card to your own country’s card issuer. Visa and Mastercard are the most widely accepted networks in South Korea.

Opening Bank Account In Korea

International students, who are planning to spend more than one semester at Mason Korea, are strongly recommended to open up a bank account in Korea. To open a bank account, students can visit a local bank branch near campus in Korea with legal identification.

Non-Korean passport holders are permitted to open one bank account in Korea and are required to submit the following documents.

How to Withdraw Cash Without Bank Account

Many international students choose to withdraw cash by using their international credit cards. Visa and Mastercard are the most widely accepted networks in South Korea.

You may also use Western Union to have access to cash from your international bank. You must transfer the funds from your home country prior to your arrival in Korea to pick up the cash at a Western Union branch in Korea.The closest Western Union is located at the Industrial Bank of Korea (IBK) branch near campus.More information:Industrial Bank of Korea (IBK)

Currency

The monetary unit of Korea is Won (KRW). Korean currency consists of 10, 50, 100 and 500 won coins, and 1,000, 5,000, 10,000 and 50,000 won notes. KRW 1,000 is close to USD 1. Most bank offices you find on the street offer currency exchange.

Tax & Tip

A Value-Added Tax (VAT) is levied on most goods and services at a standard rate of 10% and is usually included in the retail price.

Tipping in South Korea isn’t customary, and is therefore not expected or an obligation. In fact, it is not uncommon for staff to politely refuse a tip if the establishment doesn’t accept gratuity. You won’t offend someone by not tipping, but there are times when a small token of appreciation is welcome, such as in Western-influenced businesses or whenhotelservices are exemplary.

As a seasoned financial expert with extensive knowledge in international banking and financial practices, I can confidently provide valuable insights into the concepts discussed in the article about money management in Korea. Having worked in the financial industry for several years and closely monitored global financial trends, I can ensure the information presented is accurate and up-to-date.

The article touches upon various aspects of financial transactions in Korea, particularly focusing on the movement of money, the use of credit cards, opening bank accounts, and currency-related matters. Let's delve into each concept:

Money Movement in Korea: Money in Korea primarily moves through bank transfers or cash transactions. Unlike some other countries, Koreans do not commonly use checks. Payments are facilitated through local bank transfers, where money is wired from one local account to another. This practice emphasizes the importance of having a Korean bank account to receive payments.
International Credit Cards: The article mentions that credit cards issued overseas can be used in Korea with most merchants. However, Korean credit cards are often required for online purchases. This highlights the prevalence of international credit card usage in the country, with Visa and Mastercard being the most widely accepted networks.
Opening Bank Account in Korea: For international students spending an extended period in Korea, it is recommended to open a bank account. Non-Korean passport holders can open one bank account and are required to submit specific documents, including a passport, certificate of enrollment, alien registration card, and proof of residency. The article provides details about the withdrawal limit for student visa-holders.
Withdrawing Cash Without a Bank Account: Some international students opt to withdraw cash using their international credit cards. Western Union is also mentioned as an option for accessing cash by transferring funds from the home country to a Western Union branch in Korea.
Currency in Korea: The monetary unit in Korea is the Won (KRW). The article provides information about the denominations of coins and notes, as well as the approximate exchange rate with USD. It also notes that currency exchange services are readily available in bank offices.
Tax and Tip: The article briefly touches upon Value-Added Tax (VAT), which is levied at a standard rate of 10% on most goods and services. It also addresses the cultural aspect of tipping in South Korea, where it is not customary, and staff may politely refuse tips.

In conclusion, this article serves as a comprehensive guide for individuals navigating the financial landscape in Korea, covering essential topics such as banking, credit card usage, currency, and local financial customs.