Banking, Money and Taxes in South Korea

The banking system in South Korea is as advanced as in most Western countries, and also relatively simple and user-friendly.

That said, language barriers may make it harder for you to set up your account or get your internet banking up and running. There are some banks, such as KEB Hana, that are more expat-friendly than others, but it’s best to ask a friend or employer to assist with setting up your banking needs in South Korea.

Currency in South Korea

The official currency of South Korea is the won, which is abbreviated to KRW or ₩. Foreign currency can be exchanged at banks, airports, and some hotels or tourist spots, and most major international currencies are accepted. You will have a more difficult time exchanging won for other currencies outside of South Korea.

• Notes: KRW 1,000, KRW 5,000, KRW 10,000 and KRW 50,000
• Coins: KRW 10, KRW 50, KRW 100 and KRW 500

Useful links

• Bank of Korea

Banking in South Korea

Some popular banks in South Korea include KEB Hana, Woori Bank, Kookmin Bank (KB) and Shinhan Bank. International banks such as Citibank, HSBC, Standard Chartered Bank and Bank of America also operate in the country.

Banking hours in South Korea are generally from 9am to 4pm during the week. A few bank branches will also open on weekends.

Opening a bank account

To open a bank account in South Korea, expats will need their passports, and long-term residents will need a Residence Card. Some banks may also request a copy of your working visa and certificate of employment. Although the Residence Card has your address printed on it, it’s also helpful to bring in a copy of your address written in both Korean and English for the bank to capture it properly.

Once you’ve filled in the necessary forms, the bank will issue you a bank card. This may be a domestic-only debit card. Should you require international card facilities or a card that works overseas, you will need to ask the bank for one specifically.

Internet banking also isn’t necessarily included. You should also ensure your bank creates a digital certificate for you, which allows you to complete online transfers. Have banking staff set up all of your banking needs when your account is first created.

Credit cards and ATMs

ATMs are plentiful in cities and are primarily found in convenience stores, hotels, banks, post offices or train stations. Although some ATMs are available 24/7 and accept foreign cards, many are only online during the day, between 8am or 9am and midnight, and only accept Korean bank cards. Look for ATMs marked ‘Global ATM’ for the best chance of using foreign cards.

Although Koreans themselves usually pay with debit or credit cards, international credit cards may only be readily accepted in larger hotels and stores; smaller stores and restaurants may have trouble processing a foreign credit card. ATMs affiliated with the leading Korean banks often accept foreign cards.

South Korea is increasingly moving toward digital payments like Kakao Pay and Naver Pay. These services require a Korean phone number and local bank account, so most newcomers will rely on physical cards initially.

Visas and Residence in South Korea

Useful links

• Korea Federation of Banks
• KEB Hana Bank: English Services
• KB Kookmin Bank: Foreign Customers
• Shinhan Bank: English Website

Taxes in South Korea

You will be considered a tax resident if you live in South Korea for 183 days or more in a tax year. South Korean income tax is calculated based on a progressive scale and ranges from 6 to 45 percent. Those in the top income bracket will be taxed 45 percent of their salary. In addition to income tax, you are also charged a residents’ tax, which amounts to around 10 percent of the income tax amount. High earners will be taxed up to 49.5 percent of their income in total.

Some expats receive a partial or complete exemption from paying tax for a specified number of years of their stay in South Korea. These include English teachers working in state schools and qualified foreign engineers. As of 2023, certain foreign nationals working in South Korea can apply for a flat income tax rate of 20.9 percent (comprising 19 percent income tax and 1.9 percent local tax) for up to 20 years, which has been increased from an initial five years. This may be beneficial for high earners compared to progressive rates.

Foreigners are also expected to pay a percentage of their salary into the National Pension Scheme. By law, employers must match this contribution. Depending on your nationality, you can claim some of your taxes back at the end of each tax year, and you can claim a lump-sum refund of your pension contributions when leaving South Korea, provided certain conditions are met. Eligibility depends on your nationality and whether your country has a social security agreement with South Korea.

You can also opt to pay taxes either in your home country or in South Korea. This depends on your resident status and whether your country has a double taxation avoidance agreement with the South Korean government.

Year-end tax settlement typically occurs between February and March, when employers process tax refunds or additional payments based on the previous year’s income and deductions.

For the most up-to-date information about the issue, it is best to refer to a tax professional. The National Tax Service offers multilingual tax filing guides for foreign residents.

Working in South Korea

Useful links

• National Tax Service: English Portal
• National Pension Service: English Information