Introduction

Opening a Korean bank account is one of the most important administrative tasks for international students living in Korea.

A Korean bank account is often required for receiving scholarships, paying bills, signing mobile phone contracts, receiving part-time job wages, and making everyday payments.

This guide explains the basic requirements and common mistakes students should be aware of before visiting a bank in Korea.

Why is a Korean Bank Account Important?

A Korean bank account is commonly used for:

   - Mobile phone contracts
   - Scholarship payments
   - Part-time job wages
   - Online banking
   - Utility payments
   - Rental payments
   - Investment and brokerage accounts
   - Everyday purchases
   - Debit and credit card issuance

Many services in Korea will require direct deposits to accounts for recurring payments such as rent or mobile phone contracts.

It is worth noting that many employers, organizations, and service providers in Korea only support payments to Korean bank accounts. As a result, international students often need a Korean bank account to receive wages, scholarships, refunds, or other payments.

General Requirements

While requirements may vary slightly depending on the bank and branch, the following documents are commonly requested when opening a Korean Bank Account:

  - Passport
  - Alien Registration Card (ARC)
  - Korean phone number
  - Proof of enrollment 
  - Proof of address

Can You Open a Bank Account without an ARC?

While the short answer is "yes", this depends on the bank and the specific branch's discretion. However, it is worth noting that more and more banks are trending towards requiring foreigners to have an Alien Registration Card (ARC) before being able to create an account. 

If you do successfully create a "passport account" without an Alien Registration Card (ARC), the account will have limited functionality until you are able to provide your ARC to remove restrictions.

Common restrictions include:    
   - Daily transfer limits
   - Restrictions on international remittances
   - Limited online banking functionality
   - Additional identity verification requirements

Major Korean Banks

Below are some of the largest Korean banks commonly used by international students and foreign residents in Korea:
   - KB Kookmin Bank
   - Shinhan Bank
   - Woori Bank
   - Hana Bank
   - NH NongHyup Bank

Pros:
   - Large branch networks
   - English support available at some locations
   - Wide range of financial products
   - Widely accepted throughout Korea

Cons:
   - English support varies by branch
   - Documentation requirements may differ
   - Foreigner policies and requirements may vary by branch

Which Bank Do I Choose?

While there are many factors that may sway your decision one way or another, students often choose a bank based on:

1) University Relationship

Many larger universities in Korea have partnerships with major Korean banks to streamline banking for international students. These branches exist on-campus or nearby the university and regularly assist international students.

2) Language Support

It is worth noting that certain branches are more experienced with foreign customers. Foreigner heavier areas tend to have branches with language support in English and/or Chinese.

3) Future Financial Needs

Different students have different goals while studying in Korea.

Consider whether you may later need:

   - International money transfers
   - Mobile phone contracts
   - Investment or brokerage accounts
   - Scholarship deposits
   - Part-time employment payments

Choosing a bank that supports your future needs may reduce administrative challenges later.

Frequently Asked Scenario

"I need a bank account to get a Korean phone number, but I need a Korean phone number to get a bank account. What should I do?"
Many students reportedly run into this situation.
A common approach is to:

   1. Obtain a prepaid SIM card (phone number) using your passport.
   2. Apply for your ARC using this number
   3. Open a Korean bank account
   4. Upgrade to a standard mobile phone contract if desired

Requirements may vary depending on the provider and institution.

Need Help?

If you have any further questions or need assistance in creating a Korean Bank Account, Univera is here to help.