Banking and Money in Korea: A Complete Guide for Foreign Teachers

Some banks will open a limited account with your passport and employment contract, but features may be restricted (no online banking, lower transfer limits). For full banking services, you need an ARC. The ARC takes 2-3 weeks after application. In the meantime, use a foreign debit card at Global ATMs (convenience stores, airports) or carry cash for the first few weeks.

Wise (formerly TransferWise) offers the best combination of low fees and real mid-market exchange rates. For a 1,000,000 KRW transfer (~$740 USD), Wise fees are approximately 4,000-6,000 KRW vs. bank wire fees of 15,000-25,000 KRW plus 1-2% rate markup. Over a year of monthly transfers, using Wise saves approximately $180-240 compared to traditional bank wires.

Your employer handles monthly tax withholding and the year-end tax settlement. You do not typically need to file a separate tax return in Korea. However, if you have income from multiple sources (private tutoring, freelance work), you may need to file. Additionally, check your home country's tax obligations — some countries (notably the US) require citizens to file taxes on worldwide income regardless of where they live.

Citizens of most countries (Canada, UK, Ireland, New Zealand, South Africa) can claim a lump-sum pension refund when departing Korea. Apply at the NPS desk at Incheon Airport or online within 2 years. US and Australian citizens cannot receive refunds due to bilateral pension agreements — their contributions transfer to their home country's pension system instead.