Guide to foreign remittance services

Huong: Hey, how are you guys? I hope you are having a nice winter. 

Jessie: Well, I didn't go abroad this year as usual and just stayed home following guidelines to prevent COVID-19.

Su-hyeon: Huong, I heard you wanted to ask me something about sending money abroad.

Huong: Oh, yes. I remember you told me that you once sent money to a relative living abroad. Now I want to send money to my mother in Vietnam. How should I do this?

Su-hyeon: Nowadays, most people use internet banking apps to send money abroad. This saves you a trip to a bank and the commission is also cheaper.

Huong: Wow, can we non-Koreans also use these services?

Pedro: Yeah, we can also use internet banking to make online international transfers as long as we have a bank account. But we cannot yet open accounts at Korean internet-only banks such as Kakao Bank or K-Bank.

Huong: Oh, OK. So if we have a bank account at a regular bank, what do we need to make an online transfer?

Su-hyeon: Well, a foreign national needs to first designate a bank for international money transfer. To do that, visit a bank branch in person once. After designating a bank, you don't have to send money from the same branch but must send it through the same bank, either at a branch or through internet banking.

Su-hyeon: Hmm, let's call the bank's hotline for foreign customer support to ask what you need to designate the bank for international transfers.

Agent: Hello and thanks for calling. If you're a foreign resident of Korea, you need to show a valid registration ID card and your passport. You also need the recipient's personal information such as legal name, address and phone number. And depending on the amount to be sent, you need basic documentation proving the origin of the money such a job contract or proof of salary.

Huong: So I need to bring my passport as well as my ID?

Agent: Yes.

Pedro: But banks aren't the only way to send foreign remittance.

Su-hyeon: Yes, other methods include Western Union, Moneygram or related companies. Western Union allows the sending of funds to almost any country or region, but other companies specialize in specific nations or areas, offering more customized services.

Huong: What's the main difference between using a bank or a non-banking institution?

Pedro: You're not required to have an account with a bank to process a money transfer, but the recipient usually must have an account in his or her name with that bank to get the money. So a person who doesn't have an account cannot receive money through a bank transfer, but can use Western Union or companies that allow people to directly pick up the money at their offices.

Huong: That's right. My mother has a bank account in Vietnam, but I know that many of her friends don't use banking services much.

Su-hyeon: So now that you've heard of these remittance services, which one will you use to send money to your mother?

Huong: My mother has an account at a Vietnamese bank, but no branch is near our home. I think using a non-banking institution this time is better.

Huong: What about the commission rates?

Su-hyeon: A bank or a non-banking institution will always charge a commission. The fee is usually lower at a bank and even cheaper if you use its internet banking service.

Pedro: I'm glad I learned about these easy ways to send money abroad from Korea. As Christmas is coming, I think I'll send my family money as a gift this year.

Su-hyeon: That's a good idea. It would've been nice if you could give the gifts in person, but that won't work this year because of the pandemic.

Huong: Thanks for all your advice. I'll prepare the documents and make a visit next week.

Written and translated by Elias Molina
Illustrated by Yuhaill
eliasmolina@korea.kr