How to do banking in Korea? Uhhhhhh… 9 to 4 banking hours, high-security requirements, transferring money internationally. There’s so much to know. Here’s some of my advice of how to send Korean money (KRW) to American dollar (USD) after my struggles so far.
What is the best way to transfer money from Korea to US?
I read so many blogs and Reddit threads, watched so many YouTube videos, and asked so many American expats about this question. Simply put, in 2019 there are about three good ways to send Korean Won (KRW) money to another country overseas with the lowest possible transfer fees: KB Hana, PayPal, and CitiBank.
Before coming to Korea, my plan was to use TransferWise, but as of August 2018, TransferWise no longer works for KRW for new people signing up!
My Bank Backstory: Within my first week in South Korea, my co-teacher signed me up with NH Nonghyup Bank (National Agricultural Cooperative Federation Bank) (농협인터넷뱅킹). I linked my KT phone bill and my T-money card all to my NH debit card. I only wanted Citibank so that I can transfer money from my NH bank account to my KR Citibank to my US Citibank.
Extra Banking Tip: When signing up for a Korean bank account, I also asked for my debit card to have T-money. Now when I travel on public transportation of the bus, taxi, or subway, instead of getting a T-money card from a convenience store, I can just use my one debit card for everything. My friends and other fellow expats have asked me about this. It’s one less card I have to carry in my wallet, and the transportation costs will be taken directly from my bank account. (I use the city bus, taxi, and subway often with my debit card rather than using cash because it can be overall cheaper. In my experience, if I’m planning to ride the bus for only a few bus stops, then I don’t have to pay the entire 1,800KW bus fare with cash, I can tap my debit T-money card to be charged barely 1,000KRW.)
Must-do #1 Requirement: Overseas Remittance Form
From my experience or knowledge, in order to send KRW outside of Korea, you have to go to your Korean bank and fill out an “Overseas Remittance Form.” You get the form from your Korean bank. Also, in Korea, you can only have one overseas remittance form, so you have to choose one Korean bank account for remittance. Later when you’re inside your Korean bank and with the Korean bank teller, you will have to provide them with your international bank (American) account number and routing number information. Read more about overseas remittance form from Korea4expats’ page.
Keep in mind: I think Koreans easily transfer money from one Korean bank account to another Korean bank account. In my experience, my utility bill provider gives their bank name/ bank code and their bank account number. I think it is free to transfer money from my Korean NH Nonghyup Bank bank account to my other Korean bank account.
Also: Most banks in Korea have the most inconvenient banking hours of 9 a.m. to 4 p.m. So you may have to visit during lunch if you’re a busy school teacher.
Use Citi Bank Global Transfer to Transfer KRW to USD
Citi Bank Global Transfer is the best option with no transfer fees. Only the usual money conversion costs.
I recently figured out how to use Citi Bank Global Transfer to send money between my Korea account to my US Citi account with no transfer fees!
First, make two entirely separate Citi Bank accounts.
To create an American bank account with Citi Bank, I was able to use the standard US Citi Bank phone app. My parents (living in Pennsylvania, USA) received my Citi Bank debit card in the mail 1-2 weeks after I made the account, then my parents kindly told me the debit card 16-digit information (rather than mailing me the physical card to Korea).
To create a Korean bank account with Citi Bank, I went to the physical Citi Bank location in Gwangju city (한국씨티은행 광주) and asked to create an account for Mobile Banking and transferring USD to KRW. To use KR Citi Bank, I had to cancel my remittance with NH Nonghyup Bank (National Agricultural Cooperative Federation Bank) (농협인터넷뱅킹). It was a risk – if Citi Bank didn’t work, I had to go back to my NH bank for a new remittance form.
Step 1: Download two apps: “Citi Bank (US)” and “Citi Bank KR”
Again, you have to have two separate Citi Bank accounts: one American account and one Korean account.
Step 2: Create an American account on the Citi Bank app, if you don’t already have an American Citi Bank account. You definitely should screenshot or write down and make sure to save the Routing Number and Account Number information. You will need this information later, and it’s really difficult to find this information later.
I read many Reddit forums online claiming that you have to be in the US to create an American Citi Bank account, but I was able to create the account through the app while I was in my Korean apartment. I couldn’t figure out how to create a US account on a computer, so I could only do it on the app. If I didn’t have luck creating a Citi Bank account through the app, my plan was to pay my brother $50 to go make an American Citi Bank account lol.
How to make an American account on the Citi Bank app:
Step 2a: Download the Citi Bank app on your phone.
Step 2b:
Step 2c:
Step 2d:
Step 3: Create a Korean account in a Citi Bank physical location. The banks are usually in bigger Korean city, and also are only open 9am to 4pm on weekdays. I didn’t have luck with creating a Korean Citi Bank account through the Citi Bank KR app or online.
Step 4: Inside the Korean Citi Bank and in person with a bank teller, you have to ask for an overseas remittance form. You will have to cancel an existing remittance with your other Korean bank, since you can only have remittances with one Korean bank account. I had my remittance set up with NH Nonghyup Bank, but had to cancel and switch it to Citi Bank KR.
Or, Use PayPal
Or, Use KEB Hana Bank
I don’t have experience with KEB Hana Bank, but this bank was my backup plan if Citi Bank Global Transfer didn’t successfully transfer money. I’ve heard good reviews of using KEB Hana from other expats. Read about their fees or services on their website or on the KEB Hana for Expats Facebook page.
Banking, money, and life in a foreign country can be confusing or frustrating. It’s not easy. Please if you have any questions or banking tips, contact me and I’ll try to help you!
