DENOMINATIONS OF BANKNOTES & COINS

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1 BANKING GUIDE FOR EXPATS IN KOREA For expatriates, living in Korea can still be challenging at times. Although the country has become increasingly foreigner-friendly, with English-language street signs, English newspapers, English medical care, and a broader-than-ever choice of foreign foods and ethnic restaurants, expats still encounter hurdles doing some of their daily chores, among them banking. Simple things, like opening an account, obtaining a credit card, and comparing interest rates and products, can pose a serious challenge to those not conversant in Korean. The problem is magnified by the myriad of unfamiliar and labyrinthine banking policies. Through this document, Korea Exchange Bank(KEB) aims to make your life easier by giving you basic facts that you should know about Korean banks and also some useful banking information from an expatriate s point-of-view. DENOMINATIONS OF BANKNOTES & COINS Coins 1, 5, 10, 50, 100, 500 Korean won Banknotes 1,000; 5,000; 10,000; 50,000 Korean won All banknotes and coins of denominations of 100 won and 500 won are widely used, while coins of smaller denominations (1, 5, 10, 50 won) are not. SAMPLES OF BANKNOTE IMAGES (front and back) 1,000 won 5,000 won 10,000 won 50,000 won REAL-NAME FINANCIAL TRANSACTION SYSTEM The real-name financial transaction system was introduced in Korea in Under the system, banks need to verify the identity of an individual conducting financial transactions by crosschecking his/her name and personal identification number with a valid photo ID. For expatriates, an Alien Registration Card (AR Card) or a Passport is considered a valid ID. KOREA EXCHANGE BANK 1/8

2 DEPOSIT INSURANCE SYSTEM The Korea Deposit Insurance Corporation (KDIC), established under the Depositor Protection Act, insures deposits of up to KRW 50 million, including principal and interest, per customer per bank. The Act applies to five types of financial institutions: banks, brokers/dealers, insurers, merchant banks and mutual savings banks. DESIGNATING A PRIMARY FOREIGN EXCHANGE BANK In order to conduct most of the Foreign Exchange transactions, including overseas remittance, or money withdrawal from overseas ATMs using locally issued credit or check cards, you have to designate a particular bank, as your primary foreign exchange bank. To designate Korea Exchange Bank, you would need to visit any of our 350 nationwide branches along with your Passport, and AR Card (if you have already been issued one). OPENING A BANK ACCOUNT You need to fill out an application form and submit it with your ID card at a bank counter. Korea Exchange Bank is the only bank in Korea to provide such application forms in English. At your request, the bank can issue you a Check card or an ATM card on the spot. Required AR Card (recommended) or Passport Documents No fees are charged for A/C opening. Remarks Also, no fees are charged for non-maintenance of A/C balance. CLOSING A BANK ACCOUNT To close an account, you would have to visit your bank branch and submit an application, along with your valid ID, bankbook and a seal (not necessary if your signature is registered). Tips Transaction records in your bankbook are usually printed in Korean. However if you wish them to be printed in English, then we suggest that you opt for Korea Exchange Bank s Expat Savings Account. It s a one-of-its-kind demand deposit that was launched by the bank exclusively for expatriates living in Korea, and in which all transactions are printed in English. There are other benefits linked with this account, such as discounts on foreign exchange commissions and money transfer fees to other banks in Korea using internet/phone banking. KOREA EXCHANGE BANK 2/8

3 AUTOMATED TELLER MACHINES (ATMs) To use ATMs, visit your bank and obtain a Card Debit, Check or Credit or register your bankbook for the service. Remember that while a Debit Card can be used for making cash deposits & withdrawals only, a Check Card or a Credit Card can be used for making purchases at merchants as well. You can use an ATM for making deposits and withdrawals from your account, and for transferring money, both locally and overseas. Please bear in mind that using ATMs after business hours or using another bank s ATMs can bear fees. Korea Exchange Bank s ATMs offer services in 17 languages, including English, French, German, Spanish, Japanese and Chinese. If you wish to make withdrawals using cards issued overseas, you can do so only at specific ATMs called Global ATMs. REPORTING LOST OR STOLEN BANKBOOK/CARD If your bankbook or a card is lost or stolen, you should report the loss to your bank immediately and follow the bank s instructions. To cancel the same report, you have to visit your nearest branch along with your ID. PIN ERRORS AND CHANGING OF PINS Personal Identification Numbers (PIN) are issued for both your bankbook and your card. Please keep in mind not to enter the wrong PIN more than a specified number of times, in which case your bankbook/card will be suspended. To reactivate or change your PIN, you need to visit a branch along with your ID card. Especially in view of the wide fluctuations of the won-dollar rate lately, many expatriates prefer to manage a portion of their funds in foreign currencies be it in a demand deposit or a time deposit account. To them, Korea Exchange Bank offers foreign currency accounts in 27 currencies the most of any bank in Korea. Tips Many of our customers even prefer to manage their money in more than one foreign currency. Instead of opening several foreign currency accounts for them, we offer multicurrency accounts, which allow them to manage up to 10 different foreign currencies in one account using a single bankbook. Remember, that receiving funds in US dollar from overseas in a US dollar based foreign/multi-currency account can save you, to a large extent, from incurring any foreign exchange risk, as the incoming remittance amount does not get automatically converted into Korean won, which happens when you receive foreign currency into a Korean won account. The same holds true for any set of inward remittance transaction involving funds in foreign currency and a target account with the same base currency. KOREA EXCHANGE BANK 3/8

4 INTERNET BANKING Many banks provide Internet Banking service in English. Korea Exchange Bank provides Internet Banking services for both Windows and Mac OS users. The following web browsers support our internet banking service under Windows OS: Internet Explorer, Mozilla Firefox, Google Chrome and Safari. You can enroll for Internet Banking service at the time of account opening. Or you may simply visit a bank branch with your ID. A branch staffer can help you with registering your internet banking login ID and password, and with setting a transfer limit. You will also receive a security card or an OTP (One Time Password) generator. To get started, you would need to download and register a Digital Certificate on your computer or a flash memory device. MOBILE BANKING This service allows you to log onto your bank and make transactions via wireless Internet using your mobile phone and Smart Phones. At this time KEB provides Mobile Banking service on iphones in English. You can simply download the application (외환M뱅크) from your App Store. To activate your M-Banking app, your Digital Certificate has to be transferred to your iphone first. For first time users of internet banking and mobile banking, KEB provides an easy-to-understand guide in English. You can get these documents from our Facebook Page or a branch. Tips To ensure that banking is as easy and rewarding as possible for expats, KEB has a new official Facebook page especially for Korea s expat community! Now, you have a whole new way of sharing your thoughts and ideas with your bank at any time. The page name is Korea Exchange Bank for Expats and it has useful guidance and facts to assist your financial life, links to valuable information, and much more. For example, first-time users of internet or smart phone banking can find easy-to-understand guides in English in the Notes page. Also, weekly forecasts of the Won-Dollar exchange rates can be found on its Wall. KOREA EXCHANGE BANK 4/8

5 CHECK CARDS A check card is one of the common means of payment, much like a credit card. But when you buy something using a check card, the amount paid is immediately deducted from the linked bank account. In Korea, check cards come with added conveniences and security features. Because they are accepted at thousands of places across Korea, you can use it for almost any type of spending from dining, groceries, retail goods, and movie tickets to subway rides and amusement parks. Check cards can also be used to withdraw cash and perform other transactions at ATMs in Korea and abroad. You don t need to be pre-qualified to obtain a check card. You just need to hold a demand deposit with some balance in it to get one. CREDIT CARDS To issue local credit cards, Korean banks require credit and income history in Korea. In the absence of such history in Korea, you can apply for a collateral card in which you agree to set up a time-deposit as collateral for the credit card. The credit limit is usually 90% of the collateral. Credit policies can differ among banks, so please consult with your bank for accurate information. International credit cards issued overseas by Visa, Master Card, JCB and CUP, can be used at all merchants in Korea. Global ATMs offer cash advance and cash withdrawal services. FOREIGN EXCHANGE TRANSACTIONS REGULATION As per Korea s Foreign Exchange Transactions Act, an expatriate can make foreign exchange transactions of up to his/her provable income. Documents, such as monthly salary slips are considered acceptable income proof. In case of transactions for which you are not able to present any documentation, such as money received from your family abroad, please refer to the brief regulation-table below. In such cases it is advisable to consult with your bank prior to making FX transactions. You can exchange up to USD 10,000 for KRW. The limit is reset every time Up To when you re-enter Korea. Please be informed that all transactions above USD 10,000 USD 10,000 will be reported to the National Tax Service (NTS). Up To You can receive foreign currencies via Telegraphic Transfer (T/T) of up to USD 20,000 USD 20,000 per transaction per day without documentation. Up To You can remit foreign currencies to overseas via T/T of up to USD 50,000 USD 50,000 per annum without documentation. KOREA EXCHANGE BANK 5/8

6 EXCHANGING FOREIGN CURRENCY It is advisable to bring along your passport and other required documents depending on the purpose of exchange, such as a Declaration of Foreign Currency, an exchange receipt or income verification documents, before requesting a foreign exchange transaction at the bank counter. Tips Sending money overseas can be done at a bank counter, or by using an electronic channel, such as the ATM, internet-banking, or phone-banking. But, arguably the most convenient way to remit foreign currency from Korea is to use Korea Exchange Bank s Easy-One Foreign Currency Remittance Service. When you want to transfer funds to an overseas account, simply deposit or transfer the funds (in Korean won) into your Easy-One remittance account, to which all necessary remittance details such as the recipient s name, bank name, account number have already been inputted. As soon as the funds are deposited, the remittance is activated and processed. Not only is it not necessary to visit a branch, but you will receive a preferential 30% discount on the remittance transaction fees that apply at branch counters. The Easy-One service can be used at any time even after business hours and on public holidays. If the deposit/transfer is done between 9 a.m. and 6 p.m. (Korea Standard Time), the remittance takes place immediately; if it s done during non-business hours or during a bank holiday, it is processed at 9 a.m. the next business day. OTHER INFORMATION Business Hours 9 a.m. to 4 p.m. every weekday except for national holidays Some transactions incur higher fees when done at a bank counter than at an Fees electronic channel, such as an ATM, internet banking or mobile banking. KOREA EXCHANGE BANK 6/8

7 ABOUT KOREA EXCHANGE BANK KEB was established in 1967 as a government-owned banking institution specializing in foreign exchange and international trade finance and has maintained a preeminent position in these fields. KEB was privatized in 1989, and has continuously strengthened capabilities to grow as one of the country s premiere commercial banks. Today, we are Korea s leading international bank, with strong retail banking and credit card operations complementing our longstanding corporate banking and trade finance expertise. KEB was the first (and till now the only bank) to launch a specialized department, Foreign Customer Marketing Department, dedicated for its expat customers. The department has setup many expat-friendly systems within the bank, including revamping Internet-banking and Mobile-banking (iphone) services for expats, and publishing bankbooks and card bills in English. It also operates 3 Foreign VIP centers and 19 Global Desks at strategic locations for expatriate customers. The bilingual staffs at these branches are fully capable of attending to an expat s banking needs. For more information, visit KEB website or just give us a call. Bank: , Card: FOREIGN VIP CENTERS KOREA EXCHANGE BANK 7/8

8 GLOBAL DESKS FOR EXPATS Business Division 181, EULJIRO 2-KA, CHUNG-GU, SEOUL Gangnam FX Center SAMSUNG-DONG, GANGNAM-GU, SEOUL (EXT. 230) World Trade Center 159 SAMSUNG-DONG, GANGNAM-GU, SEOUL Gangnam Station SEOCHO-DONG, SEOCHO-GU, SEOUL (EXT. 201) Dogok C-101 DAELIM-ACROTOWN DOGOK-DONG, Station GANGNAM-GU, SEOUL (EXT. 305) Seolleung Station SAMSUNG-DONG, GANGNAM-GU, SEOUL (EXT. 720) Sogongdong 21, SOGONG-DONG, CHUNG-GU, SEOUL (EXT. 221) Yeonhidong YEONHI 1 DONG, SEODAEMOON-GU, SEOUL (EXT. 301) Ichondong ICHON 1 DONG, YONGSAN-GU, SEOUL (EXT. 37) Seolin SEOLINDONG, CHONGRO-GU, SEOUL (EXT. 302) Naejadong 223, NAEJADONG CHONGRO-GU, SEOUL (EXT. 718) Banpodong BANPO-DONG, SEOCHO-GU, SEOUL (EXT. 113) Yangjaenam 231 YANGJAE-DONG, SEOCHO-GU, SEOUL Yeouido 26-5 YEOUIDO-DONG, YEONGDUNGPO-GU, SEOUL (EXT. 222) Incheon 18-8 SINPO-DONG, JUNG-GU, INCHEON (EXT. 205) Dongulsan SOBU-DONG, DONG-GU, ULSAN (EXT. 301) Busan 89-1 CHUNGANG-DONG 4-KA, CHUNG-GU, BUSAN (EXT. 4249) Daejeon 195-1, DAEHUNG-DONG, CHUNG-GU, DAEJEON (EXT. 301) Daegu 58-7, POJUNG-DONG, CHUNG-GU, DAEGU (EXT. 321) KOREA EXCHANGE BANK 8/8