Understanding the basics of money management will make a huge difference to your life in Korea. This guide walks you through how to open a bank account, how to send money home, how to save and build credit, and how to protect yourself from financial fraud. It may feel unfamiliar at first, but once you get the hang of it, daily life in Korea becomes much more comfortable.

Opening a Bank Account

A bank account is the starting point for life in Korea: it is where your salary is deposited, where you pay rent and utility bills, and what you need to get a card. You also need an account to set up automatic payments and to sign up for a mobile phone plan.

  1. Take your Alien Registration Card (or passport) and visit a nearby bank branch.
  2. Ask at the counter to open an account and fill in the application form the staff gives you.
  3. It is convenient to apply for a debit card at the same time as the account.

Banks often issue a restricted account (an account with limits on how much you can transfer per day and per month) to foreigners visiting for the first time. Once you submit additional documents such as an employment certificate or utility payment records, and build up a transaction history, the limits are lifted. For detailed steps including what to do if your application is refused, see Bank Account Opening Guide for Refugee Applicants and Migrants.

Debit Cards and Credit Cards

There are two main types of cards, and the conditions and process for getting each one differ.

  • Debit card (check card): A card that can only be used up to the amount of money in your account. It does not create debt and can be obtained without any credit history, making it the best option for people who have just arrived in Korea.
  • Credit card: A card where you spend first and repay the following month. Because the card issuer checks whether you can repay, you need a credit history, and it can be difficult for foreigners to obtain one. Your chances improve once your income is stable and your transaction history has grown.

Sending Money Home (International Remittance)

To send money to your home country or another country, use a bank or an officially licensed remittance company approved by the Korean government. You will need your ID (Alien Registration Card or passport) to send money.

  1. Through your bank’s app or branch counter, or through a licensed remittance company, enter the recipient’s name, account details, and country.
  2. Enter the amount you are sending and the purpose (living expenses, family support, etc.).
  3. If you send more than USD 5,000 in a single transaction, you must submit documents proving the reason and amount of the transaction (such as a payslip or a written statement of the reason for remittance).

There are also annual limits on how much you can send without providing supporting documents. Foreigners who have earned income in Korea but cannot prove that income can send up to USD 50,000 per year without documentation; above that amount, proof of income is required. (During 2026, the limit for unsupported remittances is expected to be unified at USD 100,000 per year regardless of which type of institution you use, a new Overseas Remittance Integration Management System (ORIS) is set to be introduced, and the designated transaction bank system is expected to be abolished. The USD 5,000 per-transaction documentation threshold will remain unchanged. The timing and details may change, so please confirm with your bank.)

Unofficial street money changers or sending money through individuals carries a high risk of losing your money or being defrauded, and may also be illegal. Even if it feels like more trouble, always use a bank or a licensed company.

Saving Money

It is worth knowing how to grow your savings safely.

  • Installment savings (jeokgeum): A product where you deposit a fixed amount each month for a set period. It is a good way to build up a lump sum. In Korea, this type of savings account is called a “jeokgeum” and works like a recurring deposit.
  • Fixed deposit (yegeum): A product where you deposit a lump sum all at once and earn interest. In Korea this is called a “yegeum,” similar to a term deposit or certificate of deposit.
  • Housing subscription savings (Juteok Cheongnyak Jonghap Jeochuk): A savings account that helps you qualify to apply for a newly built apartment in the future. You deposit a small amount each month to build up your eligibility. For information on how foreigners can open this type of account, see Housing Subscription Savings Guide for Foreigners. This is a government-linked savings scheme unique to Korea that gives subscribers priority access to applying for newly constructed public and private housing.

Managing Your Credit

In Korea, your record of repaying money on time accumulates as a credit score. A good credit score makes it easier to get a card or a loan later on.

  • Late payments on your phone bill, utility bills, or card balance will hurt your credit.
  • Setting up automatic transfers from your salary account ensures bills are paid automatically and prevents accidental late payments.
  • The best credit management habit is to repay consistently and on time, even for small amounts.

Watch Out for Financial Fraud

Fraudsters target people when they are in a panic and their judgment is clouded. Keep these warning signs in mind.

  • Voice phishing and text message scams: If someone impersonating the prosecution, police, Korea Immigration Service, or a bank calls or texts you saying “your account has been used in a crime” or “there is a problem with your visa,” then pressures you to send money or install an app, it is a scam. Real government agencies never demand money by phone or text.
  • Links from unknown sources: Never click on links sent from numbers you do not recognise, or links in texts claiming to be about a delivery, a traffic fine, or a tax refund. Clicking may install a fraudulent app on your phone. For examples of visa-related text scams, see Caution: D-10 and E-7 Visa Text Scams.
  • Stay calm: If you receive a suspicious call or message, hang up or stop responding, then verify by contacting your family, someone you trust, or the relevant organisation directly using their official phone number.

If you have been defrauded or suspect you have been, you must act immediately. The faster you act, the better the chance of recovering your money.

  1. Call your bank and ask them to freeze your account (suspend payments).
  2. Report to the police by calling 112.
  3. Contact the Financial Supervisory Service for advice and to file a report by calling 1332.

Taxes

If you work or run a business, you may need to file a tax return. Employees file a year-end tax settlement (yeon-mal jeong-san), and those with business income file a comprehensive income tax return (jong-hap soduktse). For details, see Tax Filing Guide for Foreigners (Year-End Settlement and Comprehensive Income Tax). If you are thinking of starting a business, see Guide to Starting a Business in Korea.

Common Mistakes and Tips

  • Be suspicious of “high-return, high-interest” offers. If something promises returns much higher than ordinary savings, it is very likely a scam.
  • Bank staff will never ask for your PIN. If anyone calls and asks for your card PIN or a verification code, never share it.
  • Do not be discouraged if you get a restricted account. The limits will be lifted as you build your transaction history and submit documents. Not receiving a standard account from the start does not mean you have been rejected.
  • Make the most of automatic payments. The most common cause of credit damage is a late payment that happened simply because someone forgot.

Financial products, regulations, and remittance limits vary by bank and can change over time, so please check the latest information with your bank or the Immigration Contact Center at 1345 before opening an account or sending money.