Banking and financial services in South Korea: Central Bank: Bank of Korea. Currency: South Korean Won (KRW). Major Banks: KEB Hana, Shinhan, Woori, KB Kookmin. Online Banking: Widely Accessible. Mobile Payment: Samsung Pay, KakaoPay, Naver Pay. Account Opening: Alien Registration Card Required. Credit Cards: Widely Used, Strict Approval. ATMs: Nationwide Availability. Foreign Exchange: Easily Accessible. Financial Regulations: Strict Compliance Requirements.
Central Bank: Bank of Korea
The Bank of Korea, established on June 12, 1950, is the central bank of South Korea, responsible for maintaining price stability, formulating and implementing monetary and credit policy, and serving as the banker to the banking sector and the fiscal agent of the government. It sets the Base Rate to control inflation and influences market interest rates through open market operations, lending, and deposit facilities.
Currency: South Korean Won (KRW)
The South Korean Won (KRW) is the national currency of South Korea, administered by the Bank of Korea since 1950. It is a fully convertible currency, divided into 100 jeon, and is widely traded against other global currencies. Over the years, the KRW has undergone several devaluations and changes in its history. For more information, you can visit the detailed page on Korean Won provided by Investopedia.
Major Banks: KEB Hana, Shinhan, Woori, KB Kookmin
In South Korea, major banks such as Hana Bank (now known simply as Hana Bank after a brief period as KEB Hana Bank), Shinhan Bank, Woori Bank, and KB Kookmin Bank dominate the financial sector. Hana Bank is the largest exchange bank, Shinhan Bank is part of the Shinhan Financial Group with a long history tracing back to 1897, Woori Bank is one of the four largest domestic banks with roots dating to 1899, and KB Kookmin Bank is one of the largest banks in South Korea, formed in 2000 through a merger and a subsidiary of KB Financial Group.
Online Banking: Widely Accessible
Online banking in South Korea is widely accessible, with a significant rise in mobile banking users across all age groups, facilitated by the launch of digital banks like Kakao Bank and Toss Bank, and enhanced by strong ICT infrastructure and fintech advancements. Discover more about these trends by visiting Mobile Banking in South Korea. However, foreigners still face challenges such as administrative and language barriers, although recent ID verification systems and bank apps like Hana Bank's and Toss Bank's are improving accessibility.
Mobile Payment: Samsung Pay, KakaoPay, Naver Pay
In South Korea, the leading mobile payment services are Naver Pay, Samsung Pay, and Kakao Pay. Naver Pay leads with about 20% market share, followed by Samsung Pay at around 13%, and Kakao Pay at 10%, with these services driving the expansion of the digital payment industry due to high smartphone penetration and the convenience of cashless transactions. For more detailed information on this trend, visit Statista where comprehensive statistics on the most commonly used mobile payment providers are available.
Account Opening: Alien Registration Card Required
Opening a bank account in South Korea for non-residents typically requires an Alien Registration Card (ARC), a valid passport, a Korean visa, and local contact information. The ARC is crucial and usually takes about a month to obtain, and additional documents like a Certificate of Employment or university enrollment may also be necessary. For more detailed information, you can visit the [Korean Tax Blog](https://www.koreantaxblog.com/single-post/need-a-korean-bank-account-non-resident-or-foreign-company), which provides further insights on the process.
Credit Cards: Widely Used, Strict Approval
Credit cards in South Korea are widely used but come with strict approval criteria, especially for international residents. These individuals must meet specific requirements, such as having a valid visa, proof of employment, stable income, and a local bank account, with some banks imposing even stricter conditions. To navigate the complexities of obtaining a credit card in South Korea, you can refer to the comprehensive Expat Guide that provides valuable insights and tips tailored to assist foreigners in understanding and managing the application process effectively.
ATMs: Nationwide Availability
ATMs in South Korea are widely available, conveniently located in airports, hotels, and popular convenience stores such as 7-Eleven, CU, and GS25. You can find them on virtually every street corner, offering English language options and 24/7 access. This is particularly true for those operated by major banks like Kookmin Bank, Woori Bank, Shinhan Bank, and KEB Hana Bank. If you're planning a visit, it's helpful to know that comprehensive travel information, including the use of ATMs, can be found on the Korean ATM Travel Info page, ensuring a smooth financial experience during your stay.
Foreign Exchange: Easily Accessible
Foreign exchange services in South Korea are easily accessible through various locations, including airports, major banks, and authorized currency exchange booths. Travelers can exchange currency at airport branches of banks like KB Kookmin Bank, Hana Bank, and Woori Bank, as well as at ATMs and convenience stores throughout the country. For an in-depth guide on currency exchange and services, visit the Odynovo Tours website for comprehensive information and assistance.
Financial Regulations: Strict Compliance Requirements
In South Korea, financial regulations for banking and financial services are stringent, requiring entities to meet specific financial soundness criteria, such as minimum capital requirements for internet-only banks, adequate personnel and facilities, and sound financial and managerial status. The Financial Services Commission (FSC) and the Financial Supervisory Service (FSS) enforce these regulations, ensuring compliance with Basel III standards for new online-only banks, and maintaining the stability and soundness of financial markets. For further information, the comprehensive regulations can be explored at the Digital Banking Regulation South Korea platform.