How to make bank accounts in Korea(NEW 2020)

The complete guide to making bank accounts in Korea

In this post, you are going to be fully master how to make bank accounts in Korea, you wouldn’t even need to search for more information. All the possible process regarding bank accounts, required documents and what to be aware of are all listed up here.

If you are to relocate, study or for whatever reason you are to stay in Korea for more than 6 month, you are going to need a bank account. As we know from our life long experience, the banking job always involves complication and time. And there’s no need to mention how it’s like to make a bank account when you are facing a language barrier.

The question is: how can you make the process simpler and not miss anything as foreigner in Korea? Well, you may found the answer here.

content

1. 3 reasons why you should make a bank account in Korea
2. 4 main banks in Korea
3. Process of making bank account and the prerequisites
4. All about digital certificates
5. Making overseas transaction: between home account and Korean account

3 benefits for making a bank account in Korea

Majority of you are going to make an account, that’s why you looked up for ‘making bank account in Korea’ and reading this post. But just to make it clear what are benefit for making one and what conveniences you are about to access, we’ve listed up 3 among many, check it up.

#1 access to banking apps

When you have the account, you can register to each bank’s app. Except for getting loans, most of the banking jobs are all possible via apps. All banks have their English version of the app and from making transaction to exchanging currency, you can all do it there, meaning you no longer have to pay a visit to the banks for every little details.

#2 access to mobile payment platforms

Mobile payment platforms are widely used in Korea, the top three are Samsung Pay, Toss and Kakao Pay, they let you make payment both in online and offline. In fact, because of these platforms people often don’t carry wallets anymore. Also, when it gets to spitting bills with friends, within just a click, it’s done.

#3 access to e-commerce

This is where the biggest difference between having bank account and not having one comes from. For e-commerce, you obviously need Korean card to register. Apps like Coupang, the package you ordered comes within a day, and there’s plenty of other shopping apps which lets you not go to market or mall for anything. Once you register your card, welcome to the world of convenience!

Are these three benefits compelling enough? If it is, get yourself ready for followed up tips! It will start with knowing what bank options you have.

4 main banks in Korea

It’s important to know what local banks are there in Korea. Once you start an account with a bank, that’s the one you are going to stick to while staying in Korea. So, where you start a deal matters a lot. You need to consider whether the bank is easily accessible, whether they have English service, whether it’s sizable or not, whether it’s possible to make international transactions. The banks comply with these factors are:

1. KEB Hana Bank
2. Woori Bank
3. Kookmin Bank
4. Shinhan Bank

All these bank provides almost identical service. If your company or school requests on having certain bank’s account you should go for that one, especially when you are a student, in most cases, student ID card is linked to certain banks so you may not have choice. However, if you are all alone making decision, we suggest KEB Hana because among those banks their English web and app is better organized and they let you make overseas transaction on mobile if you ask for that service. Now, let’s get down to the process and prerequisites for making accounts.

Prerequisites of making bank account and the process

In order to get bank account and have access to online banking you need to get documents in order and the process also needs to be done in order, otherwise you will have limited access to the account or will have to revisit the bank over and over.

Here are the prerequisites:

1. ARC (Alien Registration Card)
2. Korean phone number
3. Employment Verification Letter(Jae-jik-zheng-myeong-seo) or copy of employment contract

* If you are a student, student ID or submission letter/document from the school

You just need these three, however getting the first two takes time. Usually making ARC takes about a month and as for Korean phone number, it has to be postpaid sim card, not prepaid, which implies that you will need ARC to get postpaid sim card. Does this mean you would have to wait until you get your ARC? Fortunately, no. The banks are aware of this, thereby letting you open an account with restrictions such as withdrawing money can only be done by bank tell in person. When you submit the document, you will have the full access.

Basically this is how it goes:

Now, this is the process at the bank and what you are going to ask for:

• Take a waiting ticket from the ticket vendor right in front of the door when you enter.
• Tell the bank teller you came for making the bank account and they will recommend debit which we call it ‘check card’ here.

You may have to wait for an English available bank teller to come, in Seoul, every branch will have English speaker but more rural areas may not have an English speaker.

• submit all the documents they asks for and fill out the application forms.
• Ask for online banking and ask if they provide any service related to making transactions between overseas account, if the teller does not mention it.

For online banking, they will require you to make an ID and provide you with temporary password for their web where you can get digital banking certificate and apply for online banking.

Making transaction between overseas account service may not be provided in some banks but it’s better to ask whether they have one.

• You will be given a bankbook, check card and OTP right after.

Bankbooks are important in some cases like at works they may ask you to submit the copy.

OTP is needed when you make transfers to another account via each bank web or app and when you apply for online banking, the web asks for OTP numbers.

For making bank accounts, you do not need minimum deposit.

Keep these process in mind and remember to ask all that’s mentioned above. As for digital banking certificate, you may not have heard of, it’s explained on the next section.

All about Digital Banking Certificate

Digital banking certificates are for securing transactions and processing payments for any online banking which each bank requires for their clients. If you don’t have them you can not apply for online banking, leading to limited access to any payment apps like Kakao Pay or Toss and not to mention e-commerce apps. The issuance of digital banking certificate is done online.

Before we jump into the issuance process,

there are couple of things you need to be aware of:

You need ‘Internet Explorer’

• for the issuance process each bank requires you to download certain security program and that only works on Internet Explorer.
• If you are heavy Mac user, you have one choice, make account at KEB Hana Bank. They are the only one that allows issuance from Mac.

The issuance cannot be done by phone, has to be done by computer.

• For verifying payment methods for payment apps you need your digital banking certificate on you phone so install it to your phone afterwards.

Though you can extend your certificate once, it expires every year.

Only one digital banking certificate is allowed per person.

• No matter which bank you got your certificate, it can be used in any bank by registering the certificate on each bank’s web or app.
• If you want to get digital certificate for another bank, you need to eliminate the former.

Here are the steps:

1. You are provided with ID and temporary password for the bank’s web from making bank account, if you had asked for online banking. If you have forgotten to mention it, then you have to sign up yourself for the bank’s web.
2. Log-In change your password
3. Find ‘Certification Center’ from the menu and click.
4. Click ‘Issue/ Reissue Digital Certificate’
5. For selecting type of certificate, select ‘bank usage’
6. Fill in the forms.
7. It will ask for OTP number, insert the particular number it asks for.
8. Set password for the digital banking certificate.
9. Save it on USB or computer, you can install it to your phone after.

• For installing to your phone it’s much simpler, go back to ‘certification center’ menu and click on menu related to copying digital certificate to smartphone. A verification number will be sent to you via phone and you just need to insert the numbers and the digital certificate will automatically be installed.

Below is KEB Hana banks digital banking certification issuance process as a reference.

Now you have full knowledge of what is digital banking certificate, for what use use need it and how to issue them. The following section will guide you on how to make transaction between your home account and Korean account.

Making overseas transaction: between home account and Korean account

If you are a student you will most likely receive money from your home account and move it to your account here in Korea. If you are working here, you will be sending money back and forth. Either way, many of you will need access to your home account.

There are 3 ways that you can have access:

Call your home bank.

• Not recommended way, takes time and you don’t exactly know when the money will arrive or go, meaning to track where it is, you have to call couple of times. Plus, making international calls are expensive and not so convenient.

Using home account card and Korean account card

• For this process to work, you need to have brought your bank card from home. Usually, this is what most students prefers. They withdraw money from their home account by using their account card from home and deposit that money back to their Korean account by card, this process is possible via certain ATM subjected to foreign currency exchange function. However, they will take commission and that’s not so cheap.

Apply for mobile overseas transactions at bank.

• This is probably most convenient. You can each bank offers overseas transaction service and the commission is cheaper than former two. Some banks like KEB Hana Bank let you make these transfer via app or web, as long as you signed up for the service and have digital banking certificate.

In general, if you don’t have your home bank card, you will have to go with the first one or the third one, if you have your card you can go with the 2nd option. If you need to make transactions often and the amount is not so small go for the 3rd option. Choose one that fits your circumstance and seems the most convenient.

Additional Information

Below is a visual table to help you figure out the whole process by timeline. You need the documents and get it done by following order.

Till here you’ve looked into full aspects of making bank account and what subsidiary actions are needed. Do you have all your documents? Have you choose which bank to go for? If you have figured it out, it’s time for you to put it to an action!

Thanks for reading this intro and leave any comments if you have any questions. To get more latest information or tips on living in Korea, be sure to follow our ADAPKO channel or Facebook. We will continuously be providing useful informations and articles.

If you have found this article useful, you may also like:

SIM Card Plans Korea: Simple & Easy Guide 2020 (NEW)

How to make ARC in Korea (2020 Update)

ADAPKO is serviced by Likealocal INC. Likealocal INC is a tour-tech start-up founded in 2017, aimed to deliver local-like experiences to anyone. We originally started servicing Korean Information Channel for Chinese-speaking FITs, 韩国问我(HanGuoWenWo), becoming one of the largest travel community channels in Chinese-speaking regions. As of 2020 May, Likealocal INC. plans to expand its channel to English-speaking regions. We operate couple of channels, including Medium, Facebook, Weibo and XiaoHongShu.