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 NoteAs the number of foreigners residing long-term in South Korea has surpassed 2 million, competition among banks to attract them as core customers is intensifying. While banks previously regarded this as a niche market, declining population and the outflow of young people from commercial banks have now made foreigners, along with seniors, recognized as a key customer base. Against this backdrop, we will examine over three installments how banks' business strategies are being reorganized, whether anything is being overlooked in the process, and the current state and challenges of the foreigner financial services market.

"When I went to the bank, all the application forms were only available in Korean, so it took me a long time to run them through a translation app before I could understand anything. Since the bank staff could only speak Korean or English, I couldn't get a proper explanation, which was very frustrating." (Nepalese international student, age 24)

"Even with a foreigner registration card, it's extremely difficult to open a bank account or get a credit card. You have to set up automatic bill payments for your mobile phone, electricity, and water just to finally open an account." (Taiwanese national, age 30)

The number of foreign customers at domestic banks is rising rapidly, but foreigners still face language barriers when visiting banks and experience difficulties using basic financial services such as account opening, card issuance, remittance, and currency exchange.

According to a report by 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 (15.0%). However, high barriers at the application stage—such as income or employment verification (24%) and complex required documentation (22.7%)—are making it difficult for foreigners to obtain cards or open accounts. In fact, foreigners living in Korea whom The Asia Business Daily interviewed (with residency ranging from one month to 18 years) also reported continued inconvenience when using banks.

Foreigners visiting domestic banks face language barriers and experience difficulties using basic financial services such as account opening, card issuance, remittance, and currency exchange. Photo by Getty Images

The Biggest Barrier is Language... Even Opening the First Account Is a Struggle

Miki, a 29-year-old Japanese national who came to Korea a year ago on a working holiday, pointed out that domestic banks do not adequately prepare foreign language documents 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 them quickly, but since the staff couldn't speak Japanese, I had to use a translation app to photograph and translate each page, which took a lot of time," she said. "Even then, I didn't fully understand the content—I just signed wherever the staff indicated and opened the account."

Serjina Sunuwar, a 24-year-old Nepalese student who arrived in Korea two months ago for her studies, said, "I went to the bank branch inside the university to open an account, but they gave me a Korean-language application form, so I had to fill it out using a translation tool myself. I wanted each clause explained to me, but instead, they just had me check everything on my own and then told me to sign, which made me feel uneasy," she shared, describing her similar difficulties.

Aori, a 25-year-old who has been in Korea for one month and has not yet received her foreigner registration card, expressed frustration about using bank ATMs. "Many ATMs in Korea only support Korean, English, and Chinese," she said. "I hope banks recognize that many foreigners are looking for ATMs that offer services in their native languages."

According to The Asia Business Daily’s survey of the five major commercial banks (KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup) and four regional banks (BNK Busan, Kyongnam, Jeonbuk, Gwangju, and iM), there are a total of 219 staff working at headquarters, branches, and call centers dedicated to foreign customers—a figure that is far from sufficient. Most of these staff are focused on English- or Chinese-speaking customers, with relatively few available to assist the Southeast Asian customers who face the most significant banking challenges. A bank official commented, "We are aware of the inconvenience foreign customers experience on the ground, and there is a growing trend to hire professionals or local staff who can speak a variety of foreign languages as dedicated staff for foreign customers."

Difficult to Get a Credit Card, and Currency Exchange Benefits Are Also Limited

A foreigner is exchanging currency at a bank exchange-only automated teller machine (ATM) in Myeongdong, Seoul on the 20th. Photo by Ki-Min Lee

Credit cards are essential for receiving benefits such as point accumulation and discounts in everyday consumer life, but foreigners often find it difficult even to apply. He Heum, a 30-year-old Chinese national who has been studying in Korea for 10 years, applied for a credit card but was rejected. "I tried to apply for a card, but it seems that approval is not granted for those with a student (D-2) visa," he said. To receive a card as an international student, you must meet average balance requirements or provide collateral in the form of bank deposits, as well as present immigration office approval and proof of part-time income.

The situation is the same for Xu Zhiwuyan, a Taiwanese woman in her 30s who came to Korea 10 years ago and married a Korean. She said, "Even though I have a marriage (F-6) visa after marrying a Korean, getting a credit card is very difficult and the required documentation is excessive. In addition to the foreigner registration card and marriage certificate, you are required to set up automatic bill payments for your mobile phone, water, or electricity." She added, "Even after going through all that trouble to get a card, if you do not meet a certain usage threshold, the credit limit is severely restricted so you can only use it as a transportation card. In this situation, it’s almost preferable to use a foreign card or a global payment service instead," she criticized.

Although the usage rate of currency exchange is high among foreigners, the related benefits are limited. Unlike locals, foreigners have difficulty receiving preferential exchange rates at their main bank, and in many cases, branches do not hold currencies other than major ones such as the US dollar, euro, yuan, or yen. Xu said, "When foreigners bring their home currency to Korea, it is hard to expect preferential treatment at Korean banks, so many people just exchange for dollars locally and remit them to Korea. As a result, to save costs, some people resort to informal and illegal currency exchange (hwanchigi) without reporting to the financial authorities. Therefore, I hope the barriers to remittance and currency exchange fees can be significantly lowered," she suggested.

Just Notarizing Documents for a Child's Account Costs 150,000 Won... Hopes for Improved Banking if Long-Term Residency Is Recognized

Even foreigners who are well-adjusted to life in Korea face renewed obstacles when they have children. Lim Hosam, a 48-year-old ethnic Korean from China who came to Korea on a student visa (D-2) in 2008 and now holds an overseas Korean (F-4) visa, tried and eventually gave up on opening a bank account and issuing a check card for his high school-aged child. To open an account for a minor, the parent (legal guardian) must submit supporting documents, but foreigners do not have a unified document like the family relationship certificate available to Korean nationals, so they have to go through additional notarization procedures.

Lim said, "They told me I needed to get an apostille notarization from the Ministry of Foreign Affairs to prove I am the biological father," and complained, "It costs about 150,000 to 200,000 won for a single notarization, and even through a broker, you have to wait more than ten days." He continued, "For foreigners whose identity has been clearly verified after residing in Korea for several years, financial transaction procedures should be improved in a forward-looking manner," he appealed.

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