Opening a Bank Account in Korea Is Too Difficult..."Over 150,000 Won in Notarization Fees Just for a Child's Account and Debit Card" [Foreigner K-Finance Status]②

Few Foreign-Speaking Staff, Only Korean Documents Provided
Strict Requirements and Complex Paperwork Make Credit Cards Nearly Out of Reach
Remittance and Currency Exchange Difficult, with Limited Fee Discounts and Benefits

Editor's NoteThe number of foreign residents with long-term stays in Korea has surpassed 2 million, intensifying competition among banks to attract them as core customers. While banks previously considered this a niche market, the decline in population and the exodus of young people from commercial banks have led to foreign residents, alongside seniors, being recognized as a key customer base. Amid these changing circumstances, this three-part series will examine how the banking sector’s sales strategies are being reorganized, whether anything is being overlooked in the process, and the current status and challenges of the financial market for foreigners.

"When I went to the bank, the application forms were only in Korean, so I had to use a translation app for a long time just to understand what they said. The bank clerk could only speak Korean or English, so I couldn't get proper explanations, which was frustrating." (Nepalese international student, age 24)

"Even with a foreign registration card, it's extremely difficult to open a bank account or get a credit card. I had to set up automatic payments for my mobile phone, electricity, and water bills just to open an account." (Foreigner from Taiwan, age 30)

A foreigner is exchanging currency at a bank's dedicated currency exchange ATM in Myeong-dong, Seoul on the 20th. Photo by Lee Gimin

The number of foreign customers at domestic banks is increasing rapidly, yet foreigners continue to face language barriers when visiting banks and experience difficulties accessing basic financial services such as opening accounts, issuing cards, remittances, and currency exchange.

According to a report from the IBK Economic Research Institute, the financial products most desired by foreigners are credit cards (19.9%), savings and installment deposits (18.3%), and overseas remittance services (15.0%). However, high entry barriers such as income or employment verification (24%) and complicated required documents (22.7%) make it difficult for foreigners to obtain cards or open accounts. In fact, foreign residents in Korea (with stay durations ranging from 1 month to 18 years) interviewed by The Asia Business Daily also expressed persistent inconvenience with banking services.

The Biggest Barrier: Language...Even Opening the First Account Is Daunting

Miki (age 29), a Japanese national who came to Korea a year ago on a working holiday, pointed out that domestic banks do not adequately provide documents in foreign languages for their foreign customers. "I went to the bank to open an account, but all the forms were in Korean. If they had been in Japanese, I could have read and signed quickly, but the bank staff couldn't speak Japanese, so I had to take photos and translate everything with an app, which took a lot of time," she said. "In the end, I didn't even fully understand the contents of the documents and just signed wherever the bank clerk indicated to complete the account opening."

Serjina Sunuwar (age 24), who came to Korea from Nepal two months ago for her studies, said, "I visited a bank branch on my university campus to open an account, but was given a Korean language application form, so I had to translate and fill it out myself. I wanted each clause to be explained to me, but instead, they just checked everything off and told me to sign, which made me feel uneasy," relaying her similar difficulties.

Aori (age 25), who has been in Korea for about a month and has not yet received her foreign registration card, expressed challenges using bank ATMs. "Many ATMs in Korea only support Korean, English, or Chinese. I hope banks realize that many foreigners are looking for ATMs with services in their native languages," she said.

According to The Asia Business Daily’s survey of five major commercial banks (KB Kookmin, Shinhan, Hana, Woori, NH Nonghyup) and four regional banks (BNK Busan, Kyongnam, Jeonbuk, Gwangju, and iM), there are only 219 staff across headquarters, branches, and customer service centers dedicated to foreign customers, which is far insufficient to meet demand. Moreover, most staff are focused on English- or Chinese-speaking customers, while staff for Southeast Asian languages—where banking difficulties are most common—are relatively few. A banking sector representative said, "We recognize the inconveniences faced by foreign customers on the ground," and added, "There is a trend toward hiring multilingual specialists or local nationals to serve as dedicated staff for foreign customers."

Difficulties Getting Credit Cards, Limited Benefits for Currency Exchange

In many cases, having a credit card is essential to receive benefits such as reward points or discounts in daily life, but foreigners find even the application process difficult. He Heum (age 30), a Chinese national who has studied in Korea for 10 years, applied for a credit card but was rejected. "I tried to get a card, but it seems it's not approved for those on a D-2 (student) visa," he said. To obtain a card as an international student, one must meet requirements such as a minimum account balance, secure a savings or installment deposit as collateral, obtain immigration office approval, and provide proof of part-time work income.

The situation is the same for Xu Zhiyouyen, a Taiwanese national in her 30s who came to Korea ten years ago and married a Korean citizen. "Even with a marriage (F-6) visa, it is very difficult to get a credit card, and the required documents are excessive," she said. "In addition to the foreign registration card and marriage certificate, they require things like automatic payment setup for mobile phone, water, and electricity bills." She added, "Even after going through all that trouble, if you don't meet certain usage requirements, your credit limit is severely restricted, so you can only use the card for things like public transportation. In this situation, it feels better to just use a foreign card or a global payment service," she criticized.

Although the use of currency exchange services is high, the benefits are limited. Foreigners find it difficult to receive the same preferential rates as Korean nationals at their primary banks, and for currencies other than major ones such as the US dollar, euro, yuan, or yen, branches often do not have the currency on hand. Xu said, "When foreigners bring their home currency into Korea, it is difficult to expect any preferential treatment at Korean banks, so many exchange it for US dollars locally and then remit it to Korea. As a result, to save costs, some even turn to illegal currency exchange (hwanchigi) among their own nationals without reporting it to the financial authorities. I hope the authorities will drastically lower the barriers for remittance and currency exchange fees," she suggested.

Notarization Fees Alone Cost 150,000 Won to Open a Child’s Account...Calls to Ease Banking Procedures for Long-Term Residents

Even foreigners well-adapted to life in Korea face renewed barriers when they have children. Lim Hosam (age 48), an ethnic Korean from China who entered Korea on a D-2 student visa in 2008 and now holds an F-4 overseas Korean visa, tried to open an account and get a debit card for his high school-aged child but ultimately gave up. To open an account for a minor child, parents (legal guardians) must provide supporting documents. However, unlike Korean nationals who have a single family relationship certificate, foreigners are required to go through additional notarization.

Lim said, "They told me I had to get an apostille notarization from the Ministry of Foreign Affairs to prove I am the biological parent. It costs about 150,000 to 200,000 won just to get notarization, and even when using a broker, it takes more than ten days," he complained. He went on, "For foreigners who have lived in Korea for several years and whose identity is securely verified, the procedures for financial transactions should be substantially improved," he emphasized.

This content was produced with the assistance of AI translation services.