Korea Banking Services
Financial Institutions in Korea
Financial Institutions in Korea
January 16, 2024
There are 2 U.S. financial institutions in Korea on the military bases: DoD Community Bank currently operated by Bank of America (BofA) and the Navy Federal Credit Union (NFCU). The DoD Community Bank operations will change from BofA to NFCU in May 2024.
Retirees living in Korea are eligible to have accounts at either of these two institutions, however the Community Bank does have some rules to follow in regards to Visa's. Read more about these institutions below.
It is possible to open bank accounts with some of the Korean banks. You will need a Korean Visa to do so, and not all Korean banks are the same! Not all have the same procedures AND those procedures do change. So, banker beware when opening an account if things don't go as smooth as expected. Do your research for the latest policies, and read some of the Personal Experiences below.
That said, it is a good idea to have a Korean bank. Many rental utilities can be paid for automatically through your bank, money transfers with companies is easier i.e. paying annual car insurance, and more.
https://www.navyfederal.org
Serving all branches of the military, the NFCU has been a presence here in Korea for many years, as well as throughout the overseas communities. NFCU has branches both in Korea and the USA. You will not need to close your account if you leave Korea. There are NFCU's at Osan AB, Humphreys, Camp Walker and Camp Carroll.
There are NFCU ATMs at other sites, and other ATMs will take NFCU cash cards.
The NFCU will not make a Home Loan for properties overseas.
By phone, the only way to contact a NFCU is through the Call Center. You can dial DSN 315-757-2010 or Comm 05033-57-2010, but it still connects you to the call center CONUS. From there you need to ask to talk to a branch office.
https://dodcommunitybank.com/
On-base banking services and solutions while you are overseas. Community Bank is operated through contract between Bank of America, DFAS and the DOD.
The contract to operate the Community Bank is changing in April 2024 to the Navy Federal Credit Union (NFCU). This contract change in no way changes any policies or procedures of the Community Bank, nor does it in anyway link NFCU accounts to Community Bank accounts. It is only the contract that overseas operations ownership.
You must be living in Korea to get an account and once you leave Korea, the account will be closed. Retirees living in Korea are allowed to maintain an account as long as you maintain an address in Korea. You do not lose your account when you retire.
There are banks on most major military installations.
Phone number to USAG Humphreys branch is DSN 315-757-2442 or Comm 05033-57-2442. This branch can give you numbers to other branches around Korea.
https://www.90daykorean.com/bank-account-in-korea/
Ready to shop for downtown banks? You’ll have plenty to choose from, but the the big three that expats in Korea typically use are KEB Hana Bank (Eng), Woori Bank (Eng) and Shinhan Bank (Eng), but there are more.
BLUF: Not all Korean banks are the same! Not all have the same procedures AND those procedures do change. So, banker beware when opening an account if things don't go as smooth as expected or... as smooth as your buddy's did. Check some of the Personal Experiences below.
Not all Korean Banks allow foreigners to open account, so do your homework. We will not list the ones that do and don't here, because it can change without us knowing it.
For a very good informative site on "How to Open a Bank Account in South Korea", click here. The site is updated routinely with requirements and processes, so it carries very current information.
You will probably need, or want, a Korean bank account just to pay your local monthly bills. Local bills can be automatically deducted from an account i.e. monthly electric, gas etc.
FYI - they do not have joint accounts at Korean banks.
The site above will provide details, but at a minimum you will need to show your Korean Alien Registration Card (ARC) or US passport.
If carry more than the equivalent of $10,000 in all accounts you will have to file a report with the US Treasury. Korean reports all US citizen bank accounts to the US. https://www.fincen.gov/report-foreign-bank-and-financial-accounts
You can get a cash card for your Korean savings account to use on the local economy. It is difficult as an America to get a credit card in Korea, but you might be able to get a 'secured' credit card, meaning you will have to maintain a certain amount of cash in a savings account before they will issue you a credit card.
How to transfer funds from your US bank to a Korean bank account. There are numerous ways to transfer your USD to a Korean bank. You can use Electronic Money Transfer sites online such as Wise, Xoom, Remitly, Western Union and many others to send money from any of your accounts or credit cards. They both allow up to $9,000 transfers, BUT, those big numbers can raise red flags, so it's better to keep it lower. Or, you can ask your banking institution about money transfer. There is no single clear-cut right answer to this, but keep in mind USD from the US to a USD account in Korea is not common. Korean bank accounts are Won, so there is exchange rates to watch.
A couple benefits of having a Korean bank account include:
10 Jan 2022: Here in Ansan, my [Korean] wife went to open a new account at a Korean Bank a few days ago and they told her she needed a document from the Dong Office saying we have been in Korea for over 6 months; a document at a cost of a couple thousand won. This does not affect any of our current bank accounts, but it appears to be a new Korean law requiring verification that you actually live in Korea even though you have an alien registration card.
10 Jan 2022: Went to the KEB-Hana bank by NokSaPyeong in Itaewon (near USAG Yongsan) to open an account. With KEB, you must open a checking and savings account with a deposit of W300,000 in the checking account. Even if you don't want a savings account, you must keep it for six months, and then you can cancel it if you want. The three documents required are: your Passport, Alien Registration Card (ARC), original copy of your House Lease (probably to show the address matches your ARC. Photo of lease is not allowed... bring original) and as of Jan 2022 W300,000. Below is paper the lady at the bank gave out. You can see on the right side #3 it shows to bring in a “Lease agreement contract of Housing” --- (No photo, bring in original). Be prepared to spend an hour signing and signing and signing. Upon completion you will have a Checking Bankbook, a Savings Bankbook and a Cash Card to use at the ATM machines. One Note: Verbally, the bank representative said you must keep a balance of W300,000 in your account for six months, but after checking the written documentation in the bankbook, that rule wasn't found. Could be a misunderstanding or an outdated handbook.
