How to Manage Your Korean Bank Accounts When Moving Abroad

It is thrilling to think of moving to another country, but at the same time it poses a lot of difficulties especially with regards to finance management. In the case you are immigrating from South Korea, a consideration of how to plan your finances would also dictate how well your korean bank accounts will be handled while overseas. As such, here is a bank management guide for when you have to relocate to a new place, so that you can concentrate on the adventure ahead. 

1. Inform Your Banker of Your Intention to Leave

Before leaving Korea it would be wise to tell your bank that you will be permanently relocating. This is because most of the Korean banks have service areas dedicated to those planning to go and stay in another country, and hence will be changing their contact addresses. 

Procedures: 

• Go visiting the bank’s department or the customer’s section of the bank’s web site
• Make changes to contact details including new mailing address and the new overseas phone number if any
• Find out the provisions for expatriates or special product offerings for non-citizens.
• Particulars regarding any limitations, if applicable, regarding the account for use outside the territory, if any.

2. Disable Geographic Restrictions on Internet and Mobile Banking

Gain convenience since almost all Korean banking institutions have gone digital towards the use of mobile phones and laptop enabled internet banking in an effort to reduce the distance barriers in thrusting their operations.

The way to go about it:

• Get the appropriate application from the bank (there is KEB Hana, Woori, Shinhan, etc.)
• Provide the details of the international mobile number along with email addresses as well.
• With Apps such as Google Authenticator, most Korean banks offer this feature which is designed to protect online payments hence setting up 2FA is quite important.

Description of the advantages of Mobile Banking:

• Transfer money from one account to another or to a different bank.
• Remit payments for utility bills, loan, or credit cards.
• Check the transaction and balance available on the account at any given point in time.

3. Initiate International Wire Transfer Services

In case you wish to send money between your bank account in Korea and any other foreign bank of your choice, it is required that you register and initiate the wire transfer services of international nature. Banks with idiosyncratic names such as KEB Hana, Shinhan, Woori Bank and others have services for international remittance and are not doing so badly in terms of prices too.

Implementation of international transfer capabilities consists of:

• Going to the bank branch and undergoing customer identification.
• Getting a SWIFT code for your bank in Korea and providing the required information about the foreign bank (account number, SWIFT code e.t.c).
• Requesting international remittance via internet banking and/or requesting it on a banking application.

Tip: Use services such as Wise or Revolut which allow you to transfer international wires but without incurring your bank’s high charges.

4. Retain Mother Korean Number While Banking

In most cases, Korean banks require a local line for the account holder for verification purposes and for security reasons. Without this, should you terminate your Korean phone service, you are likely going to have issues with regards to accessing your account. ஆகிய

Solutions:

• To keep receiving important calls and messages, you can change your current plan to an international one.
• Alternatively, you may want to consider getting a virtual korean phone number or either SKT Roaming or KT Roaming which enables you to get One Time Passwords while overseas.

5. Use and Control Korean Credit Cards.

If you own Korean credit cards, make sure to check how these may be used outside of the country. Many Korean banks provide cards that regard to the world offer acceptance but international transactions do have high charges going with them.

Tips:

• Look for your credit card with at least international travelling transaction charge and without such due to booking holidays incurring losses therefore think of changing the card.
• Notify your credit card company that you are moving as this is a reminder to avoid the risk of fraud alerts.
• Control the costs of changes when using your card while abroad so as not to get shocked by your bill.

6. Understand Tax Liabilities 

If money is coming in from abroad, it is important to remember tax liabilities in Korea. There are countries that South Korea has tax agreements and this may help or hinder one economically. Some of them include but not limited to:

• Foreign Earnings: In some instances especially if you are headed to certain countries, it might be necessary to file the foreign salary if any earned, back in Korea.
• Bank Reporting: Some countries have restrictions reporting the foreign bank accounts of its residents and such includes FATCA for instance in the US. Always follow the local tax authorities to avoid being punished.

7. Keep Funds in Your Account

Most of the Korean bank accounts usually attract a service charge on a monthly basis unless the customer deposits and maintains a set amount of money in the account. For those who wish to maintain their Korean bank accounts and are going to reside in a foreign country, make sure that you do not leave such people in an account that will attract fees.

8. Korean Banking Applications Should Be Used While Outside The Country.

Most of the banking applications of Korean banks have features that cater for multiple languages including English. Below are a few of the applications that are available for use out of the country.

• KEB Hana EZ Remit: It facilitates remittances and international transfer of funds.
• Shinhan Global S Bank: A bank aimed at Korean guardians who live away from Korea.
• Woori Global Banking: Covers all aspects of banking including overseas funds transfer.

9. Powers of Attorney (Not Compulsory)

Should you feel that you will not manage to run your bank account whilst on a foreign trip, you may want to consider giving Power of Attorney to someone you can trust in Korea. With this, they step in to cover a few transactions such as deposits, withdrawals, and taking care of the account.

How to create a POA:

• This can be given by the person coming in to be appointed.
• Go to your bank and ask to fill out the relevant forms.