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Best Ways Send Money to South Korea

Ensure fast send times, low fees, the best exchange rates, and helpful customer support on money transfers to Korea.

Continue reading for reviews, expert advice, and essentials for transfers to Korea.

Jonathan Merry
Author 
Jonathan Merry
13 minutes
November 22nd, 2023
Disclosure
Best Overall
8.6
XE

XE is the top rated money transfer provider that usually appears in our search results to South Korea.

Fastest Option
9.2
Wise

Wise tends to offer fast transfer times to South Korea for many origin countries and send amounts.

Cheapest Option
8
Instarem

Users who searched to send money to South Korea usually find Instarem had the lowest rates and fees.

Compare rates and fees on money transfers to South Korea

There are multiple ways to easily send and receive money in South Korea but these will largely depend on the provider you decide to use.

How to send money to South Korea

There are three main remittance channels to South Korea. You can use banks, online money transfer providers, or in-person cash transfer services. The choice of the channel depends on the cost, accessibility, reliability, and transparency.

Bank to Bank Transfers
Online Money Transfer Services
In-Person Cash Transfer Services

What is Needed to Send Money to South Korea

The information and documents you require when sending money to South Korea include:

  • A government-issued photo ID

  • The name of the recipient, their address, and phone number

  • The recipient’s bank details if the transfer is to a bank account

  • The reason for sending

Once you make your first transfer, you may not need some of this information on your subsequent transfers.

How to receive money in South Korea

Recipients in South Korea have two main ways of receiving money sent to them.

Cash Pickup
Bank Deposits
Money Transfer Services
Mobile App
Home Delivery

What is Required to Receive Money in South Korea?

You will need the following documents to collect your money for cash pickups.

  • South Korean passport, National ID card, driving license, or foreign passport

  • The transaction number

The recipient may also be asked to confirm the sender’s details, the city they live in, their relationship, and the purpose of the transfer.

Understanding the Economy of South Korea

South Korea is a beautiful country with a flourishing mixed economy and the 4th highest GDP in Asia. Over the last few decades, South Korea has developed from a nation dealing with immense poverty to a high-performing G-20 country with booming financial and technology sectors. The fast-growing development of South Korea has meant the nation’s international remittance market has increased rapidly, and this guide endeavors to provide information about the most competitive ways to send money to the country.

The national currency is the South Korean won, and at the time of writing, 1 KRW is equal to 0.00081 USD. The national GDP is $1.80 trillion, and the export economy is $645 billion in size. The primary industries in South Korea include Electronics, Telecommunications, automobile production, chemicals, shipbuilding, and steel.

Overall, the economy of South Korea has a good economic relationship with many countries. This means most money transfer companies include South Korea in their global coverage.

Common Reasons for Sending Money to South Korea

Different needs drive the inflows to South Korea. As a result, the amounts sent vary in size, frequency, and the source country. Below are some of the common reasons remittances keep on flowing to South Korea.

House Purchase

In highly speculative zones such as the capital Seoul, Gwacheon, and Sejong City, real estate assets attract a mixture of diaspora and local South Koreans. For example, the median cost of buying a home in Seoul is USD 95,000.

Paying for a Luxury Holiday

People planning to go for a holiday in South Korea send money in advance to booking companies or direct to hotels in the country. These payments are captured as inflows.

Business Investment

Some of the investments are in new businesses, while others are cash flow injections into existing businesses.

Cross-border Transactions

Overseas companies make payments to Korean-based suppliers, contractors, and employees.

Contributions for Religious Festivals

During festivals and national holidays such as Seollal, Chuseok, and Buddha’s Birthday, inflows to South Korea increase. The contributions could be for family-based celebrations or made directly to religious organizations or to the needy.

Why Send Money with a Money Transfer Service?

Money transfer services are the most preferred channels for sending money to South Korea because of the unique advantages they offer. Some of the top reasons for using money transfer service providers include:

Easy to Set Up

Signing up for an account, paying up for your transfer and sending money through online money providers is simple and fast. The procedures are fewer and the information needed is minimal. Within a couple of hours, your account for money transfer.

Faster Transfers

Compared to banks and informal money transfer methods, online money transfer services take a much shorter time to deliver transfers. For instance, cash pickups take minutes to get to the recipient while bank transfers can take hours to 3 days to be completed.

Higher Exchange Rates

The markup fee on exchange rates online money transfer providers charge is lower compared to banks. On average, providers charge 0.5-3.5% while banks charge upwards of 5%.

Low Transfer Fees

Online money transfer services are offered at low overhead costs. This cost advantage enables providers to extend the benefits to customers in the form of low transfer fees. Transferring 1000 GBP to South Korea costs 9.37 GBP on Wise. Banks may charge up to $40 USD for the same transfer.

Multicurrency Support

Online money transfer operators support money transfers from different countries. Bearing in mind that inflows to South Korea come from countries as far as Afghanistan and Cambodia, having a platform that supports all these countries is hugely important. That being said, most transfers to South Korea originate from the United States Dollars (USD).

Security and Reliability

Money transfer service providers are regulated by the respective authorities in the countries they operate. The organisations which include FinCEN, FCA, and FINTRAC, ensure that operations are streamlined, fair and trustworthy. Money transfer service providers have also invested in security solutions such as SSL and two-factor authentication (2FA) to help fight cybercrime.

Things to consider when sending money to South Korea

Those sending money to South Korea could arrange an international transfer for all manner of reasons. We recommend considering the following before initiating a cross-border payment to this Asian country:

  • Strict Taxation May Apply to Larger Transfers: South Korea implements extensive tax regulations, particularly regarding inheritance and monetary gifts. Therefore, recipients of large remittances should report these as gifted, as per the South Korean tax laws. If you are unsure about the status of an international payment, we encourage you to seek the advice of a tax professional who specializes in South Korean taxation.

  • Emergency Remittances: If you find yourself in a position whereby funds need to be urgently transferred to a contact in South Korea, we encourage you to make this clear to the service provider ahead of sending. Although slightly more expensive, the financial service industry can now offer instant payments, but it is crucial you make this request known before you pay for it to bypass any untimely obstacles or issues with transferring funds.

  • Currency Clarification: As the South Korean won (KRW) is not as readily available as other countries’ currencies, certain service providers or banks may offer to send money to South Korea, but they do not necessarily provide this service in KRW. For example, if you use your US-based bank to transfer funds to South Korea without reading the small print, you may discover the transfer is made quickly, but your payee ends up receiving USD instead of KRW. This is likely to inconvenience your payee in the long run as they will need to convert the funds into their local currency at their expense.

Top 3 companies for sending money to South Korea

It can be time-consuming to select a top-tier company to send money to South Korea. However, the three companies below are good choices and come with several advantages.

OFX

Sending money to South Korea with OFX is fast and safe. Their security measures are modern and easy to set up. Also, the low fees and competitive FX rates are way better than what most banks can offer. Because OFX has lower overheads, the savings can be passed down to the customer.

OFX provides a diverse range of payment options, which offers flexibility. Having access to different payment methods gives users a choice and provides backup options. Also, you can compare the fees between them to discover the one that offers the best deal.

Wise

Wise is an industry-leading money transfer service that has excellent transparency. They inform users of the fees and FX rates before transactions take place. Also, multiple confirmation screens guide customers through the process of sending money in a way that minimizes mistakes. Wise regularly matches the mid-market rate for many currency pairs, which most banks do not offer.

Balance transfer with Wise, in most cases, takes just a few seconds. They also do a great job of sending notification emails to keep both parties informed about the transaction.

Instarem

Instarem is a well-respected specialist transfer provider in South Korea. You can check the exchange rate for many currency pairs on the homepage. This gives you a chance to discover if Instarem provides a good deal before registering for an account.

The 24/7 customer service department of Instarem is a good source of help. They respond fast with live agents via chat. Also, an InstaPoints reward program offers customers an extra incentive to send money with Instarem.

The USD to KRW exchange rate

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Looking to Send Money Somewhere Else?

Sending money anywhere else in the world is as easy as sending money to Korea. So if you’re looking to send money to another country, here is the list of the most popular destinations.

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Contributors

Jonathan Merry
Jonathan is the founder and editor of MoneyTransfers.com. Jonathan is highly experienced in the currency transfer market, having previously worked in the FX trading industry, alongside being an avid traveller. Using his knowledge he identified a need for transparency and further education to help people save money on their money transfers, leading to the creation of MoneyTransfers.com