In South Korea, there are mainly three types of bank accounts. These are available for the residents and non-residents of South Korea. They are savings accounts, time deposit accounts, and installment accounts.
Savings accounts in South Korea work in the same way as the savings accounts in any other country. When the client deposits money, the bank offers interest in return. You can get higher rates depending on certain factors such as the term of the deposit. People who deposit for longer terms get access to higher rates.
A time deposit account works in a similar way as a current account. Some banks even offer interest on the money deposited in time deposit accounts. Yet, the interest earned from these might not be as high as that earned from savings accounts.
Lastly, as the name itself suggests, an installment account requires the customer to make regular monthly payments for getting interest.
People who want to get interest can opt for savings accounts or installment accounts. The interest on these bank accounts gets paid yearly, half-yearly, quarterly, or monthly.
Some banks even offer tax benefits to their customers. In most circumstances, such tax benefits are only offered to the residents of South Korea. In general, South Korean banks charge 10.5% on time deposit accounts (for tax purposes).
While opening an account, you can apply for the online banking feature.
South Korean banks and other financial institutions have at least one English-speaking person. The chances are higher when banking with some major banks located in the main cities such as Seoul or Busan.
You should notice that the English staff may only be available on certain days of the week. when you are residing in areas that do not have access to major banks.
The following documents are generally needed while applying for a bank account.
• Passport/Visa
• Certificate of Employment
• Alien Registration Card
• Korean Phone Number
Best Korean Banks to Open Savings Accounts in South Korea
KB Kookmin Bank
The Savings products offered by KB Kookmin Bank are Installment Savings Deposits. They are:
• KB Welcome Plus Installment Savings Account
• Salaryman Preferential Installment Savings Deposit
• KB Kookmin First Investments Installments Deposits
• KB Smart Phone Installments Deposits
• KB Mutual Installment Savings Deposit
All these savings products get protected by Korea Deposit Insurance Corporation.
According to this, each person gets protected for an amount of up to KRW 50 million. This applies to the principal as well as the interest of the selected savings product.
Let us have a brief insight into each of these savings products.
1. KB Welcome Plus Installment Savings Account
The customers must are to be from outside of Korea. Only one account per customer. The customer can either be a business owner or an organization.
The tenure for this account is at least six months. This doesn’t exceed twelve months. You can make deposits on a daily or monthly basis.
The deposit amount should not exceed KRW 3 million per month. The deposit amount must be at least KRW 100,000 when opening an account.
The basic interest rate is 1% for 6 – 12 months and 1.2% for 12 months. The preferential interest rate is 0.3%, whereas it is 0.1% – 0.2% for outward overseas remittance.
Altogether, customers get an interest of 1% to 1.5% for 6 to 12 months. Whilst, the interest rate for twelve months is 1.2% – 1.7%.
Other benefits include “Overseas Remittance Service” and “Death and Disability Insurance Service”.
To get detailed information about KB Welcome Plus Installment Savings Account, click aquí.
2. Salaryman Preferential Installment Savings Deposit
There is no specific necessity for eligibility, and the tenures are 1,2, and 3 years. The deposit amount should be KRW 10,000 to KRW 3 million per month.
There is a preferential rate for the 3rd month’s salary. This includes accounts with salary transfers and those more than KRW 300,000 usage on the KB card.
You can make a bonus deposit once every quarter apart from the monthly deposit.
A 0.2% preferential rate applies to this deposit. The bonus deposit should exceed the monthly deposit amount but it must be under KRW 5 million.
The accounts that reach half of the maturity period can be terminated with the base rate. Only under special circumstances.
To get detailed information about Salaryman Preferential Installment Savings Deposit, click aquí.
3. KB Kookmin First Investments Installments Deposits
This account is not for non-residents and applicants must be between 18 to 38 years. The tenure is 3 years.
The monthly deposit amount must not exceed KRW 300,000. You cannot make extra deposits from 1 month before maturity.
The initial deposit amount should be at least KRW 10,000.
Preferential rates get offered for some specific conditions, which are 0.10% and 0.20%.
Preferential rates of 0.10% – 0.20% are also offered for holding a particular amount or by the time of maturity.
To get detailed information about KB Kookmin First Investments Installments Deposits, click aquí.
4. KB Smart Phone Installments Deposits
Normal individuals and self-employed individuals are eligible. This account isn’t for non-residents.
You can open an account only through KB Star banking, which is a smartphone banking service.
The tenure is 12 months. The min. initial deposit amount is KRW 10,000.
The min. monthly deposit is KRW 1,000 and you can make it until one month before maturity.
Preferential rates of 0.2% and 0.3% get offered upon meeting certain conditions. You can get more details about KB Smart Phone Installments Deposits by clicking aquí.
5. KB Mutual Installment Savings Deposit
This account isn’t for non-residents. The tenure for a Fixed monthly installment is 6 – 60 months (monthly). For the Free installment, it is 12 – 60 months (monthly).
The deposit amount of the fixed monthly installment should exceed KRW 10,000. The deposit amount for Free Installment should be KRW 10,000 – KRW 5 million.
You can get a preferential rate of 0.3%. Only, if a Salaryman Preferential Account holder opens this account through the internet.
To get more details on KB Mutual Installment Savings Deposit, click aquí.
Other interest-bearing accounts
Kookmin Bank has two Time deposit accounts and three Demand deposit accounts. They are as follows:
Salaryman Preferential Account
Customer support
The customer support phone numbers of KB Kookmin Bank are as follows:
1599-4477 (For domestic calls)
82-2-6300-9999 (For foreign calls)
Hana Bank
There are two types of savings products offered by Hana bank. They are:
• Easy-One Pack Savings Account
• The Wide Foreign Currency Savings Account
Now, we will have an in-depth analysis of these savings products. Following that, we will also take a look at some other accounts offering interest rates.
1. Easy-One Pack Savings Account
This is a specialized account dedicated to foreign customers. The enrolment period is 1 year.
The min. amount for deposits is KRW 10,000. The max. amount for deposits is KRW 10 million per month.
Hana bank offers an interest rate of 2.9% per annum with this savings product.
A preferential rate of 0.3% is available for the individual’s interest rate. For this, the account holder must meet certain criteria set forth by Hana bank.
To qualify for preferential rates, there are many options available with this account.
For each option you qualify for, you get an additional preferential rate of 0.1%.
You can qualify for three options among any of these and get the 0.3% preferential rate. Given below are the options for getting a preferential rate.
— Sign up for Easy-One Foreign Currency Remittance service.
— Have an Easy-One Pack account or NN account.
— Transfer salary at least one month before maturity.
— Using the Hana bank account for making payments to the following:
a. Global check card
b. Rainbow check card
c. KRB Hana credit card
— Make an acquaintance enroll for an Easy-One savings account. This should be at least one month before the maturity period. With this option, both the acquaintance as well as the customer get the preferential rate of 0.1%.
— Have a China Eastern Airlines ticket under your name while enrolling for the account.
There are 6 options given above, which provide a preferential rate of 0.1% each. Nonetheless, you can only get a max. of 0.3% on the additional preferential rate.
The bank has early interest rates depending on the deposit period and elapsed period.
To get more details on Easy-One Pack Savings Account, click aquí.
2. The Wide Foreign Currency Savings Account
This is a free-installment foreign currency deposit account offered by Hana bank. You get access to unlimited deposits and split withdrawals.
Additionally, you get preferential interest rates, exchange rates, and foreign exchange fees.
The enrolment period for this account is more than 6 months, yet less than 24 months. Earnings get offered in the form of free installments.
The available currencies for this account are USD, EUR, JPY, GBP, CHF, CAD, AUD, and NZD.
The interest rate is not provided on Hana bank’s website. Anyhow, you can get access to that information by contacting the bank. You can contact them at 1599-6111 (from Korea) 82-42-520-2500 (from overseas).
The max. additional interest rate benefits cannot exceed 0.30%. You can get more details on the Wide Foreign Currency Savings Account by clicking aquí.
Other interest-bearing accounts
Easy-One Pack Time Deposit Account
YES Keungippeum Deposit Account
Foreign Currency Deposit Account
Foreign Currency Time Deposit Account
Customer support
The customer support phone numbers of Hana bank are as follows:
1599-6111 (For domestic calls)
82-42-520-2500 (For foreign calls)
Woori Bank
Woori bank offers three different types of savings products. They are:
• Housing Subscription Total Saving Deposit
• Global CNY (Chinese Yuan Renminbi) Discretionary Savings Deposit
• Woori We’ll Rich 100 Savings
Now, we will have an in-depth analysis of these savings products. Following that, we will also take a look at some other accounts offering interest rates.
1. Housing Subscription Total Saving Deposit
This savings product of Woori bank is a housing subscription deposit account.
To qualify, applicants must get a subscription for an apartment. To do so, you must have an account with only one financial institution.
There is a time limit until you get selected as a tenant. You can become a tenant of either a national apartment or a private apartment.
Individuals can deposit anywhere between KRW 20,000 to KRW 500,000.
The interest rates vary depending on the deposit period, and it gets paid on maturity. For instance, you can get an interest rate of 1% per annum for 1 month to 1 year.
You can get 1.5% per annum for 1 year to 2 years and 1.8% for more than 2 years. You can use this account as a tax-free composite savings account.
To get more details on Housing Subscription Total Saving Deposit, click aquí.
2. Global CNY Discretionary Savings Deposit
This savings product is a foreign currency deposit account accepting CNY deposits.
Customers can make unlimited deposits with this account. Yet, you must be attentive to withdrawals with this account.
You should know that the withdrawals may result in a loss of capital. This is because of currency rate fluctuations. Check rates before making withdrawals.
The basic interest rate is the same as the CNY foreign currency regular deposit rate.
An additional preferential interest rate of 0.2% is applicable for qualifying candidates.
Post Maturity and Early Termination rates apply. A good benefit offered with this account is that the foreign currency cash fees get waived off.
The foreign currency cash fee gets waived for deposits up to USD 2,000 per year.
The fees for outward remittance are also excluded. Anyhow, this happens when the deposit gets done in the name of the depositor.
To get more details on Global Savings Discretionary Savings Deposit, click aquí.
3. Woori We’ll Rich 100 Savings
You can consider this account to be a retirement savings option. This concentrates on a sizeable sum of money accumulation.
You can make non-compulsory deposits up to a limit of KRW 3 million into this account. This savings product doesn’t have any term restrictions.
You can deposit savings for 1-year, 2-year and 3-year terms. The deposits can be redeposited for the 3-year terms up to a max of 9 years (2 times).
The base interest rate varies around 1.95%, 2.05% and 2.15% for 1-year, 2-year and 3-year terms respectively.
The customers get a preferential rate of 0.2% when they qualify for certain conditions. The conditions are:
— Make a pension deposit and get a 0.1% additional preferential rate.
— Opt for automatic transfers and get a 0.1% additional preferential rate.
— Own a Woori Credit Card or Woori Debit Card and get a 0.1% additional preferential rate.
— Subscribe to internet banking or smart banking and get a 0.1% additional preferential rate.
Even if you get qualified for all these options, the max additional preferential rate you can get is 0.2%.
The prematurity withdrawal rate is the same as that of a regular deposit account. The scenario is the same for post-maturity rates as well.
To get more details on Woori We’ll Rich 100 Savings account, click aquí.
Other interest-bearing accounts
Woori We’ll Rich Joogerae Account
Woori ONE Interest Compounded Turn Over Deposit
Woori We’ll Rich Joogerae Fixed Deposit
Customer support
The customer support phone numbers of Woori bank are as follows:
1599-2288 (For dedicated foreign calls)
1588-5000 and 1599-5000 (For domestic calls)
82-2-2006-5000 (For international calls)
Industrial Bank of Korea (IBK)
The interest-bearing account of IBK is the IBK W Account. This is a savings specialized account for customers earning wages.
Except for self-employed individuals and private business owners, anyone can open this account. This is an SME financial bond type of account.
The base interest rate usually depends on the market interest rate. To know the exact rates, you can contact the bank inquiring about the details.
Individuals get a preferential rate of 0.2%. This is when depositing their wages into IBK bank accounts.
The interest amount gets paid upon the completion of the maturity period.
The interest payments can get declined if:
— the account gets seized
— the account gets provisionally seized
— if an establishment of a pledge right takes place.
The maturity period for IBK W Account is 1 year. The min. deposit amount is KRW 1 million while the max. limit is KRW 30 million.
You should note that the IBK W Account does not offer depositor protection. This is due to the lack of depositor protection for SME financial bonds in Korea.
Other interest-bearing accounts
Not disclosed or None
Customer support
You can call the customer support of the Industrial Bank of Korea at 1588-2566.
Conclusión
Most of the banks in this list offer their savings products to non-resident customers as well.
Almost all the financial institutions in South Korea offer deposit insurance protection. You can check the status of deposit protection by checking with the support team.
Getting the right type of savings account isn’t enough because you must also consider the taxes imposed on the interest income. Try choosing a savings product that offers tax benefits. In this way, you can have extra advantages compared to products not having tax benefits.
This is a revise article for educational purposes. We are not affiliated with any of these banks or their financial products. We do not endorse, recommend, or suggest any of our readers go ahead with these options. It is a guide with a list of suitable options from where you can search and find the apt option. It is still possible for you to find another option that is suitable for your needs.
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