As a new expat in any foreign country, dealing with money can be a hassle. Trying to figure out how banking works, what bank to use, or sending money home in a new country with language barrier is frustrating. When I first moved abroad to teach English, I had no idea how I was going to pay student loans in Korea.
As it turns out, sending money home from Korea is actually pretty easy. And there are actually so many different options for foreigners.Below I share how I and different expats send money home and pay student loans in Korea. But please be sure to consult the bank for exact deets about their international transfer accounts and fees.
The Best Banks to Pay Student Loans in Korea
Korea Exchange Bank – KEB Hana
KEB Bank is well-known as one of the most expat friendly banks in the country. They offer all the normal standard banking accounts as well as an Easy-One Account for foreign residents.
The Easy-One Account allows for quick and affordable transfers to any foreign account you choose. You must have a separate checking account to receive payments, and then when you want to transfer money abroad, you simply transfer funds from your checking to your Easy-One.
The overseas remittance is done automatically and immediately without further work on your end. I don’t personally have this account, but many of my friends do and they enjoy the ease of the transfer. You need to have a separate checking account open to use an Easy-One.
Once you have your first checking account open – it can be with any Korean bank – just go to the KEB Hana and ask to open an Easy-One Remittance account and they can help you out. You’ll need your passport, ARC (ID), and the home bank account information you’d like to connect to your Korean account (SWIFT code, routing number, bank account number etc).
Pros of KEB / Easy-One Account.
- Automatic transfers home with Easy-One account.
- A discount of 30% off the regular remittance fees that are normally charged for branch transactions is applied when using the Easy-One account.
- Services specifically for expats, meaning you can get the help and assistance you need in English.
- Global branches that are open on Sundays (in the major cities) – super helpful for teachers working during the hours banks are open.
- Mobile Banking
Kookmin Bank – KB
I bank with KB and just have a normal checking account with them. It’s the bank nearest my school and where my co-teacher decided to take me to get my account set up. KB’s mobile banking app allows for overseas remittance so there’s no need for any extra account, just the one.
I couldn’t be bothered to make the trek to the KEB Hana Global Branch in Daegu on a Sunday (I’m a lil lazy tbh), so I decided to just go with the bank my co-teacher selected for me. Although it’s not the absolute cheapest option for transfers, it suits me fine. When sending thousands of dollars home at a time, the difference of $10 or $20 didn’t seem a big deal to me. It’s the bank I use to pay student loans in Korea.
Pros of KB Bank.
- One of the largest banks in Korea so plenty of branches and ATMs to choose from.
- Online mobile banking.
- Global remittance / transfers from phone app, ATMs or local branches.
Nonghyup Bank – NH
Nonghyup is another bank that allows for global remittances to an international account from a standard checking account. Again while not the cheapest option on the list, if you bank with NH while in Korea, it’s possible to send money home through them.
They also offer online mobile banking and the ability to send money home and ultimately pay student loans in Korea from the app, the bank or sometimes the ATM. This bank is also fairly common, although there are not as many branches as KB.
Citibank
Citibank is the most complicated yet cheapest option on this list – if done right, you can transfer money home for free. To open a Citibank account in Korea, you first must open or have a Citibank account at home BEFORE coming to Korea, otherwise they may reject your application.
Even with an account already open at home, I’ve heard many stories about tellers at Citibank making it a hassle for expats to open an account here. Second, you must have lived in the country for at least 6 months before they will let you bank with them.
You’ll need to bring all the necessary paperwork such as your passport, ARC and your Citibank account number and information from home. It can be an ordeal, especially since banks in Korea typically open and close during normal work hours. But for 0 fees to send money home, it’s worth it.
A few things to keep in mind for Citibank…
- Citibank branches are usually only found in the major cities in Korea – Seoul, Busan and Daegu etc. so it may be difficult for rural expats to bank here.
- Citibank in Korea can be a challenge to open an account.
- It’s by far the cheapest way to send money home and pay student loans in Korea (no fees!).
For more information specifying the steps to opening a Citibank account, check out Natasha In South Korea’s blog post here!
Other Banking Tips:
- Most local branches can’t accommodate English speakers. If possible, bring along a trusted Korean friend or employee to help you get the initial setup completed. Once your accounts are open, many banks have English help-lines you can call for assistance. If you’re employed with EPIK, your Korean co-teacher will help you as soon as you have your ARC card (ID).
- Set up mobile banking on your phone the same day you’re at the bank to avoid doing it later. Mobile banking requires security certificates on your phone and some accounts actually need to have the service activated first. Mobile banking is the key to your freedom. You’ll need it eventually anyways to easily transfer money home overseas after you leave the country.
- You need important documents when setting up bank accounts in Korea. Don’t forget to bring with you:
- ARC Card – Your Korean Alien Registration Card / ID
- Passport / a valid visa
- Local address
- Local phone number
- When you sign up for a standard checking account, the default card you receive from the bank most likely is only for domestic use. If you want a debit card that has functionality abroad, ask right when setting up your account.
- Most banks have special checking cards that can double as your transportation card. Be sure to also ask in advance to have this functionality on your card. It’s so convenient to have your bus/metro card and debit card as one, and the funds are tallied up and taken directly taken from your account once a month.
Once you manage to send your money home, it’s smooth sailing from there to pay student loans in Korea!
For more tips for life in Korea and Daegu specifically, check out my Life Hacks for Moving to Korea.
Do you have any more tips or advice for how to bank or pay student loans in Korea? Share below!
