Korea
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78<br />
Country starter pack<br />
Business practicalities in <strong>Korea</strong><br />
Australian Banks in <strong>Korea</strong>: At present only ANZ operates<br />
a full subsidiary in Seoul.<br />
Opening a personal<br />
bank account<br />
• Some banks allow only registered foreign<br />
residents with an alien registration card to<br />
open a bank account. Many banks allow new<br />
arrivals who don’t yet have their alien card<br />
to open an account, but services are limited<br />
and all transactions must be conducted via a<br />
teller.<br />
• To set up an account, visit the bank in person<br />
and take your passport and, if you have one,<br />
your alien registration card. You will be asked<br />
to fill out a form giving your official name<br />
(the one on your passport), your residential<br />
and/or business address and telephone<br />
number.<br />
• There are no joint accounts in <strong>Korea</strong>, so if you<br />
are married, you must each open your own<br />
account.<br />
• There are no fees for opening an account,<br />
no monthly account fees and no minimum<br />
deposit. Depending on the bank, however,<br />
you may have to pay transaction fees.<br />
• There is a small fee (KRW 2000-3000) to<br />
get your ATM card from some banks. Most<br />
banks only allow you to have one ATM card<br />
and this can only be used in <strong>Korea</strong>.<br />
• If you want access to internet banking and<br />
use a <strong>Korea</strong>n credit card overseas, you must<br />
request it.<br />
Non-bank financial institutions include mutual savings<br />
banks (MSB), credit unions, and credit specialised<br />
financial companies. Mutual savings banks primarily<br />
provide banking services and extend credit to small<br />
businesses and households in the regional areas. Creditspecialised<br />
financial companies include credit card,<br />
leasing, and factoring companies.<br />
<strong>Korea</strong>’s commercial banking system remains sound, liquid<br />
and well capitalised in the wake of the Global Financial<br />
Crisis, although there is concern about the pace of<br />
household borrowings. In contrast, residual risks in mutual<br />
savings banks have prompted attention and action, with a<br />
restructuring of the industry. They have been troubled by<br />
distressed project finance loans triggered by a prolonged<br />
recession in real estate and construction markets.<br />
International banking<br />
Foreign bank accounts, including Australian accounts, can<br />
be accessed from ATMs around <strong>Korea</strong> particularly if it is a<br />
debit Visa or debit Mastercard card. If you have a <strong>Korea</strong>n<br />
bank account, this cannot be accessed from outside<br />
<strong>Korea</strong> unless requested.<br />
To send money overseas: It is necessary to designate<br />
a specific bank as the one you will use for these<br />
transactions. There is a form you must sign to do so. It is<br />
possible and relatively simple to change your designated<br />
bank. You’ll need to inform the original bank (in person)<br />
and then sign the required document in the bank you now<br />
wish to use.<br />
Overseas internet banking: Foreign residents of <strong>Korea</strong><br />
can now also access overseas internet banking services<br />
through some <strong>Korea</strong>n banks – registration though is<br />
required with that particular <strong>Korea</strong>n bank. Note that all<br />
international transfers will count towards your cap of<br />
US$50,000 a year in how much money you can transfer<br />
abroad.<br />
Currency regulations<br />
Foreign exchange transactions are governed by the<br />
Foreign Exchange Law and Real Name Transaction Law.<br />
These allow the <strong>Korea</strong>n Government to monitor and<br />
control outbound transactions of <strong>Korea</strong>n Won.<br />
Currency exchange: When exchanging less than KRW<br />
1 million in a single transaction, you require only your<br />
passport or alien registration card (if you are living in<br />
<strong>Korea</strong>) for identification. For amounts greater than KRW<br />
1 million, the bank teller will record the transaction in your<br />
passport. If you’re travelling in <strong>Korea</strong>, you are permitted to<br />
exchange up to US$10,000 per trip without designating<br />
a foreign exchange bank. To exchange more than this<br />
amount, a foreign exchange bank must be designated.<br />
Overseas remittance: Sending money out of <strong>Korea</strong> is<br />
relatively straightforward. Foreigners can send up to<br />
US$50,000 out of the country per year. This can be<br />
done in a branch, online or through an ATM. To send<br />
more than US$50,000, evidence in the form of tax<br />
returns and other official documents showing where<br />
the money came from must be presented. Once the<br />
US$50,000 limit has been reached, remittances must<br />
be made at a bank branch and can no longer be carried<br />
out online or via an ATM. Individuals cannot take out<br />
more than US$10,000 from <strong>Korea</strong>.