How to Transfer Money to & From South Korea in 2024

Sending money to South Korea can be challenging, especially if you’ve never done it before. I’ve been in the same boat; during my first year in Korea, I needed my family in U.S. to float me a bit of money before my first paycheck, and then of course once I got paid, I wanted to send money from Korea back home to their accounts and my own.

So while you probably have understandable concerns about the safety and risk of personal information being compromised, this is exactly what I want to help you avoid. With the right knowledge of online banking in Korea, sending money internationally can be a safe process.

Some platforms mentioned here even eliminate all the hassles involved in visiting a Korean bank in person, including the 3 hours of charades. From online platforms to traditional bank remittance and apps, this article covers everything you need to know to transfer money to Korea, and back abroad from Korea.

Transaction fees are charges businesses have to pay to process your payment from one currency into another, sometimes with another currency in between, depending on local laws.

This is why on every platform, the transaction fees are different, because their financial burden depends on the payment processor they use. 

So a transaction fee is usually charged as a percentage of the transfer amount, though some services add an additional fixed amount. To put it simply, exchange rates show how much your money would be equivalent to in a different country’s currency (e.g. USD to KRW). 

So if the exchange rate between $1USD and the KRW is ₩1200 per dollar, then the value of $10USD is ₩12,000KRW in foreign currency markets— but of course, you won't never get this full amount because of transaction fees.

A pro-tip to stay in the loop about the current exchange rate is to have a live currency converter handy, especially for those of us who regularly send money abroad.

If you have plans to send money from South Korea, it’s always helpful to be aware of transaction fees and exchange rates for each option, because these can vary and may change without notice.

It’s also important to note that fees and rates provided by money changing and transfer apps are rarely guaranteed, because they’re only estimates based on that moment’s exchange rate.

Remember to always read the fine print and shell out a bit of extra as some options only show additional taxes and fees just before you hit ‘send.’

First is to always look at the wire transfer fees. These are fees charged by banks if you want to make an international payment, and often both the sender and the recipient must pay.

Charges depend on the service fee (and this depends on the bank you’re affiliated with), exchange rates, third party costs, and receiving fees (for incoming payments from the U.S. or in any part of the world). 

Wiring money can get expensive, and usually, incoming domestic and international fees are around $15USD (when applied). If you send money, outgoing domestic wire fees are usually around $30USD, and outgoing international wire fees may cost $45USD or more.

When transferring money to and from South Korea, it’s essential to find the most cost-effective and efficient options because if you’re not careful, you might lose more money than you have to.

For example, using Paypal may be convenient if you purchase items online, but if you use it for international money transfers, they charge high transfer fees.

If you want to avoid fees or reduce how much you pay for the transfers, here are some of my top tips from sending money to and from Korea (both during and after living there for years!):

1. Set up a Citibank Account

This workaround is best if you haven’t left your country of origin yet, or are home for a visit. Set up a Citibank account before leaving the US, and then once you get to Korea, set up a Korean Citibank account. For free, you can transfer money back and forth between these bank accounts. 

Conversion rates still apply, but the fact that you’re not paying anything for wire transfers is already a good deal.

One downside is that Citibank is not a popular bank in Korea, so if you do not live near Yeongdeungpo, Yongsan, Jongno, or Gangnam, you’ll have to travel quite a bit to make any in-person changes to your account (though there are a fair number of Citibank ATMs in Korea).

2. Make a Multi-Currency Account

Usually this option works best for those whose employers are from other countries, or if you own a business that requires you to deal with foreign currencies.

But some banks are nice enough to let you open one, provided that you meet minimum deposit requirements and maintain a minimum balance to avoid fees. Other banks may also require you to have a certain level of creditworthiness or show proof of financial stability to be eligible for this one.

Do your research before choosing a bank that meets your specific needs by looking at the fees/charges associated with the account, the range of currencies available, and whether the exchange rates tend to be competitive.

Also make sure to check customer ratings and reviews on the ease of making/receiving payments before opening an account.

3. Make Cross-Border Payments

When it comes to mobile payments in South Korea, you should set up a local digital wallet with the bank of your choosing. This has only become a widespread option in the last few years, but is now quite common.

Having a digital wallet practically guarantees your ability to pay at a variety of merchants, as digital payment options like Samsung Pay, Google Pay, and Apple Pay are also available in most stores expecting foreign customers.

If your digital wallet is none of these, you can also check with your bank or credit card issuer to confirm that they support your digital wallet in South Korea, and while you’re at it, check that there are no additional fees or restrictions for using their service abroad.

If you can, avoid wire transfers and the SWIFT system altogether. This is possible when you choose a digital payment option that easily lets you send money across borders without going through traditional banking channels. 

4. Compare Money Transfer Providers

Monito and RemitFinder are websites that provide a useful comparison of various money transfer providers, making it easier for you to find the best deal. All you have to do is input how much USD you will send in KRW, and it generates a list of the most cost-effective options. 

Moreover, within each listing, you also get to see factors such as fees, exchange rates, and transfer time which is incredibly helpful to know especially if you’re in a hurry to send money. You can even check the ratings of each provider and read a detailed review if you’re still skeptical about the service.

Finder has a layout that makes comparing different money transfer providers easier. It even has a recommendation panel covering what to use for your needs. 

So if you want to know instantly what to use if you're planning to do a business transfer, or want to send over a large sum of money, or simply do a cash pickup, this site may be something to look into.

Do note that some providers require specific information like SWIFT or IBAN codes and the recipient’s bank branch address.

It may feel daunting to be in a foreign country with no familiar means of receiving money from home, especially if you don't speak fluent Korean.

But don’t panic, because this section covers easier ways to receive money in Korea, that hopefully reduces the need to interact with locals, and at the same time, get your much-needed cash.

1. Via ATM (Cash Advance)

This option doesn't require you to get a Korean bank account, and I recommend it for those who need to receive cash ASAP. But beware, you can’t just use any card. So before you leave home, make sure to check with your bank if your card lets you withdraw from International ATMs (for a hefty fee, of course).

If it does, then you can have people deposit money in your personal account, and just withdraw that money when you arrive in Korea. One way to check is to see if your card has the Visa/Mastercard logo. Cards with said logo can visit any ATM branch with the “Global ATM” sign, and choose the “Foreign/Overseas Card” option.

One remarkable thing about Korean ATMs is the option that lets you choose the combination of notes you want for the total amount (though some US ATMS now do this). If you withdraw ₩300,000KRW, you can choose to get 6 ₩50,000KRW bills, or 30 ₩10,000KRW bills.

While this option is probably the most convenient, depending on how much you will withdraw, that transaction fee can be brutal.

2. Western Union

Western Union is also a convenient way to send money to South Korea. All you have to do is find the Western Union branch closest to you, and these are usually banks affiliated with the company. The only downside may be the language barrier.

If you’re not confident with your Korean, then you may have a hard time answering necessary additional questions, and this may result in the withholding of your money.

MoneyGram is another financial company that provides the same kind of service, however, it’s a bit more expensive than Western Union.

3. Bank Remittance

One of the major downsides of opening an account with a provider is that you’re required to provide details of your local bank account in Korea, so obviously this isn’t a good option if you’re not planning to stay in Korea long. 

If you need a Korean bank account, you'll need an Alien Registration Card and a local phone number, and some branches like Nonghyup may require you to bring your own interpreter because the process of making an account can get lengthy.   

4. Digital Wallets

Digital wallets like those covered above make it easier to transfer money from the US to a Korean Bank account. All you have to do is have an American Paypal account, and then make a Korean Paypal account.

Loved ones can send money to your American Paypal, and you can send this to your Korean Paypal with a fee of ₩22,500KRW or ~$17USD. A bit costly, but this is definitely a fast method to get the job done, if you need a large enough sum.

Once the money is in your Korean Paypal, you can send it to your Korean bank account with no cost.

5. Open a Digital Bank Account

There are plenty of digital banks available, but expats in Korea most commonly use Wise. With its multi-currency feature, a single account can add money in 21 currencies, and keep 50+ currencies. Then you can convert money between these currencies stored in your account using a real-time exchange rate.

However, to set up an account, you'll have to add $20USD, a small price to pay to enjoy cheapest rates to send or receive money internationally.

If you’re reading this because you want to help a loved one living in Korea, there are plenty of ways to send money from your bank account to theirs. I know I needed help when I first moved to Korea and had to wait well over a month for my first paycheck.

Actually, you can physically mail money to them, but note that there are certain limitations and dangers to putting cash int he mail (such as that the amount can’t exceed $10,000USD, and that the delivery time can be lengthy). Obviously, this old-school approach is not the method you’re looking for, so let’s cut to the chase.

1. Western Union

Western Union is a well-established service for international money transfers. You can send money online from South Korea for cash pickup, or visit a Western Union agent location to transfer money in person. 

You can send up to $3000USD, but if you need to send something larger than that, you may need to have your account verified. The advantage of using Western Union is its worldwide coverage and the option for cash pick-up, but the transfer fees might be higher than other methods, even for small accounts.

2. Bank Remittance

Bank remittance is a widely used method for international money transfers. The beauty about this method is that it’s so convenient, and most of these providers have an app that thankfully eliminates the need to visit their physical office. 

GME Remittance lets you analyze exchange rates for money transfers from South Korea to the United States, and Remitly offers a faster, affordable, and transparent service while your money is in transit.

SentBe is also another popular option because it’s used in many parts of the world, and has a cheap transfer fee even for the express service (just ₩5000KRW).

The downside is, not all bank remittance providers send money to Korea, so carefully explore your options first before downloading the app or signing a contract. Moreover, it can take more than 3 days for the money to arrive, even if you paid extra for the express service. 

3. Digital Wallet

This is discussed above in detail, but for a quick recap: download a digital wallet like Paypal and link it to your personal bank. Then just send money to the recipient's Korean Paypal account. It'll definitely require you to pay a fee, but it guarantees that the money will be sent through a safe, online channel.

4. Open a digital bank

Wise is a non-bank payment provider that delivers money straight into your recipient’s bank account. Using this service ensures low transfer fees and quick delivery, and is trusted by so many. Here’s a guide that explains this process, direct from Wise itself (formerly TransferWise).

5. Bank Transfer

It may be the cheapest option– especially if you share the same bank as the recipient, but with a lot of limitations. First, you have to make sure that their card can be used in Korea. One of the best ways to know is if the card has a Visa/Mastercard logo print in the front or back, but it’s really best to call the bank directly, just to be safe.

When transferring money to and from South Korea, it’s your responsibility to know the regulations and limitations placed on international transfers for Americans. 

Note that the IRS and the Consumer Financial Protection Bureau carefully monitors international wire transfers, especially for amounts $10,000USD above. If you try sending more than that, your account will be flagged by the IRS.

But if you’re sending wage or salaries, then this is a different story (provided that you have the documents to back up your transfer, and even then, they may initially flag your account).

Conversely, the total money you can receive in a year from overseas is $50,000 USD (although there's a plan to double this by June this year).

If you receive more than that, you'll have to file a lot of paperwork that proves you have assets in foreign accounts. If this is the case, you should always report these to the IRS to avoid penalties imposed by the Foreign Account Tax Compliance Act (FATCA). 

Personal Note: What if you receive a large amount of money as a gift? If this exceeds the stated limit above, you’re still required to report it to the IRS because of tax reasons. Gifts less than $15,000 aren’t taxable.

Whatever the case, whether you’re receiving or sending money internationally, remember that to protect yourself from penalties, always make sure to know how much you can send or receive, and which options have the lowest fees.