We’re continuing on from our original ‘Part 1: Expat Guide for Moving To Korea: 8 Things You Must Know’. In this post, we’re going over some equally essential tips you need to know when first moving to South Korea. They include:
- How to open up a bank account,
- How to apply for a credit card,
- What T-Money and Hi-Pass cards are and why you’ll want them, plus
- How to purchase a car.
Opening Up a Bank Account With Online Banking
As mentioned in Part 1: Expat Guide for Moving To Korea, this country is big on digitizing identity and issuing electronic certificates. This is to help prevent fraud and protect people’s privacy. This makes opening a bank account a slightly more complicated process than what you’re probably used to. Most banks allow foreigners to open their own bank account, but you must do so in person. Luckily, the major Korean banks will have at least one person who can speak English.
The foreigner-friendly major banks are KEB Hana Bank, Woori Bank, and Shinhan Bank. If you have any of the following documents below, bring them with you to the bank:
- Passport and Visa,
- Certificate of Employment, and
- Alien Registration Card (ARC).
Setting up the online banking portion is a separate process. A process you’ll want to request when you’re already at the bank. Online banking requires a key card (OTC or security card). To use this key card, you need to have a Korean cell phone to register the device with the OTC card. The bank will ask you to set up another password (different from your bank account’s password) along with this. Jot down or make sure you remember all your passwords. If you forget them, you will have to physically walk into your bank to get a new one. You cannot call to get a new password and you cannot reset it online yourself.
Lastly, you’ll need to set up a digital certificate to complete your online banking process. We recommend a bank teller help you set this up because it is complicated on your own. Once you are issued a digital certificate, save it to your Korean cell phone or your computer.
Now, you’re ready to electronically send and receive money via your new Korean bank account! The bank should have an app, so be sure to download that for convenience. This entire process of opening a bank account, including setting up online banking, is about 2-3 hours.
Applying for a Credit Card
Now that you have your Korean bank account set up and working, you can obtain a Korean credit card. This should be your next step. Not all places accept foreign credit cards, so we recommend applying for a domestic card. It’ll streamline your life significantly. Plus you won’t put yourself in that awkward situation of not being able to buy something.
Research the credit card company you want to apply for as best you can (can be difficult if you can’t speak/read Korean) and start the application process. Make sure you know what documents they require before applying, as it takes some time to get these in order. Some commonly required documents are bank statements, visa or work contract, ARC, etc. After you’ve got everything together and are ready to apply, head in-person to a branch office.
Some points to consider: It may take a foreigner up to a year of working in Korea to be eligible for a Korean credit card. They will take into consideration your work contract, if you have one, and give you a credit card based on the dates shown in your contract. As opposed to a lot of Western credit cards, Korean credit cards have little to no interest.
Another point to be aware of is the credit card payment system is a bit different. When purchasing a product or service, you have the option to pay monthly installments to the vendor/business or to pay in full. This differs from what you’re use to when you make monthly installments directly to the credit card company.
What the Heck is T-Money?
T-Money is a rechargeable smart card used to pay for transportation in and around Korea. It is even sometimes accepted at stores and for taxi rides. You must have a T-Money card if you wish to use the metro/subway in Seoul (which, trust us, you will). T-Money cards are very handy so make sure you prioritize getting one soon after you arrive.
You can purchase T-Money cards at vending machines which are located near the metro/subway or at train stations. Some convenience stores will also carry them. You can recharge your card, with Korean Won dollars only, at these same spots. Once you are set up, tap your T-Money card on the sensors. The money will automatically be taken off the card!
An important point to note: When using your T-Money card at the subway in Seoul, you must swipe the same card once in and then once out. The pay system keeps track of the card and only allows one person to use it twice – once going in and then once getting out. If two people attempt to share the same card for the same ride, one person won’t be able to get out of the subway. You’ll then have to call a subway attendant for help.
Purchasing a Vehicle
Buying a vehicle in Korea is a little different than buying one at home. Koreans are generally very honest and trusting people. For example, our dealer let us take our car home off the lot for 7 days without putting any money down.
As usual, there are documents required to buy a car in Korea. Make sure you have these in order before heading to the lot. You then have 15 days, after purchase, to register the car and these costs vary depending on the vehicle.
Registering for a car is a process but the dealership, where you purchased the car, will help you with that. Consider purchasing a small to mid-size vehicle, as the roads are extremely narrow and tight. Rarely will you find trucks (unless it’s a Bongo truck) or large SUVs driving on the road. That’s for a reason. They’re very difficult to get around with on Korean roads.
Hi-Pass Cards
Hi-pass cards allow you to pay for highway toll booths electronically. If you don’t want to stop at the toll booths to pay, you should get a hi-pass card. Cash and credit card aren’t as convenient and requires generally waiting in line, and interacting with an agent for payment each time you cross a highway toll.
The hi-pass cards connect to your credit card and are electronically charged each time you drive through the toll booths. Or you can top up your hi-pass card in advance and make payment through that. Toll fees are calculated according to distance, roads, and vehicle type. They generally are a couple of thousand Korean Won each crossing.
Along with your hi-pass card, you’ll need a hi-pass device or ETC unit (Electronic Toll Collection). This is what scans the toll booths, as you drive across, and what you insert your hi-pass card into. Most Korean cars already have a hi-pass device installed. If your car doesn’t, you can purchase one from any place that sells automobile electronics.
And that completes our blog series ‘Expat Guide for Moving to Korea: 8 Things you Must Know’! How were your first few days abroad after moving? Did you plan really well and had no surprises? If you’re an expat in South Korea, did we miss anything in our blog series on ‘Expat Guide for Moving to Korea’? Anything you think is beneficial to share with other potential South Korean expats? The more we help each other, the less lost we’ll feel in our move!
