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Banking

Residents > General Information > Banking
Banks are convenient in many ways if you know how to use them. to begin with, they are a secure place to keep your money safe, and your assets increase as a result. Thanks to technological advancements you may also pay your electricity, water, and phone bills as well as other public fees at the bank.
Korean money comes in ₩1,000, ₩5,000, ₩10,000, and ₩50,000 bills and in ₩10, ₩50, and ₩100 coins.

Opening an Account

Let us look at the common savings account. First, fill out the form provided by the bank. You will need to write your name, address, and how much money you will put into your account on the spot. It is possible to use your signature instead of a dojang(도장), or personal stamp. A foreign national will need proof of alien registration and his passport. Banks have many teller windows. Go to the one that deals with new accounts and follow the procedure. Once you have opened a savings account you will be issued a bank book. This may be used to make deposits or withdrawals from the different branches of the same bank.

Types of Accounts

ATM Cards and Credit cards

ATM cards may be made when you open a bank account. They allow you to withdraw money from your account after banks have closed, until 10pm or midnight, at various automated teller machines located in convenient locations. You must decide on a four number password at the time you apply. The password is required whenever you withdraw money. The card will be made for you while you wait.
Credit cards, on the other hand, take between 7 to 10 days to be issued, and are delivered to the address of the applicant. Loss of either an ATM or credit card must be reported to the bank immediately.

Automatic Payment of Public Utilities

It can be a hassle to pay public utility bills such as for gas, water, and electricity at the bank window, as each bill has different dates by which they are supposed to be paid. If you go through a procedure ahead of time, the bank will do the work of paying your bills for you. The process is simple. All you have to do is submit to the bank a form asking for automatic payment of these public utility bills. The bank will then take money from your account and pay these bills, then send you a receipt for each.

Sending Money Overseas

Look for a bank with a sign near the entrance noting that is handles foreign currencies. There are three methods of sending money overseas;telegraphic transfer(T/T), bank check, and postal check. Apply using the proper form, checking what it is you want. Telegraphic transfers are the fastest and surest method of sending money to a bank account in another country. Sending money will require you have your bank book and a wage statement from your employer.

(1) Telegraphic Transfer(T/T)

The fast and surest way to send money, by telegraphic cable. You must know the name of the bank, the name and address of the branch, the account number, and the telephone number of the owner of the account, and the bank code.

(2) Postal Transfer

Using registered mail, a check is sent to the bank receiving payment. It takes as long as a letter to deliver.

(3) Bank Check

A bank check issued by your bank is sent to a recipient residing overseas. As the check is sent through the regular mail, this method should be used only when sending smaller amounts of money.

Currency Exchange

Exchanging money requires that you have your passport or Alien Registration Card with you. Most banks are able to exchange money. If you sell foreign currency you have with you when you enter the country, be sure to keep the receipt, because it is more advantageous when you purchase foreign currency again when it comes time to leave.

Money Issue Between Individuals

Money transactions are a symbol of trust. Therefore financial dealings between individuals must be kept perfectly clear. Whenever one lends someone money, for example, make sure you receive a bond of debt(an I.O.U). It should be a record of the person's name, address, Resident Registration Number, the amount being borrowed, the monetary unit, date the money was borrowed, date the money will be repaid, and interest if any, and the document should be stamped with the person's registered personal stamp(ingam dojang). Write a receipt for the person when they have repaid you.
When the other person's credit behavior and financial standing is in doubt, secure something as a guarantee(dambo). There are two kinds of guarantee, a personal guarantee(injeonk dambo), meaning that another individual or group of individuals guarantee the loan on behalf of the person borrowing the money. Then there is a physical guarantee(muljeok dambo), usually in the form of collateral or provisional registration on real estate, or by transferring the ownership of the same. Movable estate or collateral securities may also be used as physical guarantees.