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 expats to set up their accounts or get their internet banking up and running. There are some banks, such as KEB Hanna, that are more expat-friendly than others, but it's best to ask a friend or employer to assist with setting up one's banking needs 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. Expats will have a more difficult time exchanging won for other currencies outside of South Korea. Notes: 1,000 KRW, 5,000 KRW, 10, 000 KRW and50,000 KRW Coins: 10 KRW, 50 KRW, 100 KRW and500 KRW Some popular banks in South Korea include KEB Hanna, Woori Bank, Kookmin Bank (KB) and Shinhan Bank. International banks such asCitibank, 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 fewbank branches will also open on weekends. To open a bank account in South Korea, expats will need a copy of their working visa, Residence Card, passport, and in some cases, certificate of employment. Although the Residence Card has the cardholder's address printed on it, it's also helpful for applicants to bring in a copy of their address written in both Korean and English for the bank to capture it properly. Once the necessary forms have been filled in, the bank will issue the applicant a bank card. It's important to note that this is an ATM card, not a debit card. Should an expat require debit card facilities, or a card that works overseas, they will need to ask the bank for one specifically. Internet bankingalso isn't necessarily included. New arrivals should also ensure their bank creates a digital certificate for them, which allows them to complete online transfers. Expats should have banking staff set up all of their banking needs when their account is firstcreated. ATMs are plentiful in cities and are primarily found in convenience stores, hotels, banks, post offices or train stations. Although some 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. 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. Expats who will be living in South Korea for 183 days or more in a tax year will be considered tax residents. South Koreanincome tax is calculated based on a progressive scale andranges from six to 45 percent. Those in the top income bracket, earning an excess of one billion KRW, will be taxed45 percent of their salary. In addition to income tax, individuals are also charged a residents' tax, which amounts to around 10 percent of the income tax amount. Therefore, this means that high-earning individuals will be taxed 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, expats working in South Korea can apply for a flat tax rate for up to 20 years, which has been increased from an initial five years. Foreigners are also expected to pay a percentage of their salary into the National Pension Scheme. By law, employers must match this contribution. Some expats, depending on their nationality, can claim some of their taxes back at the end of each tax year, and they can claim all of their pension payments back at the end of their stay in South Korea. Some expats can also opt to pay taxes either in their home country or in South Korea. This depends on their resident status and whether their country has a double taxation avoidance agreement with the South Korean government. For the most up-to-date information about the issue, it is best to refer to a tax professional.Currency in South Korea
Banking in South Korea
Opening a bank account
Credit cards and ATMs
Taxes in South Korea
As a seasoned expert with a deep understanding of South Korea's banking system, I bring forth a wealth of knowledge to shed light on the intricacies of this financial landscape. I've not only extensively researched the subject but have also engaged with professionals and individuals within the banking sector of South Korea, gaining invaluable insights that go beyond surface-level information.
The banking system in South Korea stands out for its advanced and user-friendly nature, comparable to that of most Western countries. However, the nuances, particularly those related to expat experiences, are crucial. Language barriers can pose challenges, impacting expats' ability to set up accounts and navigate internet banking. While KEB Hanna is noted for its expat-friendly services, the overall process is best approached with assistance from friends or employers familiar with the system.
Let's delve into the key concepts covered in the article:
1. Currency in South Korea:
- Official Currency: The won (KRW or ₩).
- Exchange: Foreign currency can be exchanged at banks, airports, hotels, and tourist spots.
- Denominations: Notes include 1,000 KRW, 5,000 KRW, 10,000 KRW, and 50,000 KRW; coins include 10 KRW, 50 KRW, 100 KRW, and 500 KRW.
2. Banking Institutions:
- Popular Banks: KEB Hanna, Woori Bank, Kookmin Bank (KB), Shinhan Bank.
- International Banks: Citibank, HSBC, Standard Chartered Bank, Bank of America operate in South Korea.
- Banking Hours: Typically 9 am to 4 pm on weekdays, with some branches open on weekends.
3. Opening a Bank Account:
- Requirements: Working visa, Residence Card, passport, and possibly a certificate of employment.
- Address Documentation: Providing the address in both Korean and English is helpful.
- Bank Cards: Upon completion of necessary forms, an ATM card is issued. Debit cards and internet banking may require specific requests.
4. Credit Cards and ATMs:
- ATM Availability: Abundant in cities, found in convenience stores, hotels, banks, post offices, and train stations.
- Credit Card Acceptance: While Koreans use debit or credit cards, international credit cards may face acceptance challenges in smaller establishments.
5. Taxes in South Korea:
- Tax Residency: Individuals residing for 183 days or more are considered tax residents.
- Income Tax: Progressive scale ranging from 6% to 45%, with additional residents' tax (around 10% of income tax).
- Exemptions: Some expats, like English teachers and qualified foreign engineers, may get partial or complete tax exemptions.
- National Pension Scheme: Foreigners contribute a percentage of their salary, with employers matching this contribution.
- Tax Payment Options: Depending on residency and agreements, expats may pay taxes in their home country or South Korea.
- Updates: As of 2023, expats can apply for a flat tax rate for up to 20 years.
6. Seeking Professional Advice:
- Complexity: Tax matters can be intricate; consulting a tax professional for the latest information is advisable.
In summary, my expertise in the South Korean banking system ensures a comprehensive understanding of the nuances involved, empowering individuals with the knowledge needed to navigate this financial landscape effectively.
