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Payments Without a Bank Account


Payments Without a Bank Ac...

Bank Transfers are possible even if you don't have a Korean bank account.
Money generally moves in Korea through bank transfers or via cash transactions. Koreans do not 'write cheques' as may happen in your home countries. Instead, payments are made through bank transfers (money is 'wired' from one local account to another).

If you do not have a Korean account, you will not be able to receive payments. However, you will be able to make them. It is not necessary to have a bank account to move money into someone else's account. The transactions can be done by tellers in any Korean bank - not necessarily the one to which the payment is going.

How to proceed:
1. Go to any bank.
2. Tell the teller you wish to transfer money to X bank. (If you're foreign, make sure to mention the name of the bank. Even then, the teller may assume that you are making a wire transfer overseas. Don't panic, just write the name of the bank receiving the transfer payment).
3. The teller will give you a form - although it's all in Korean, no worries. S/he will tell you what to put where - or you can have the information written down before you get to the bank and s/he will fill in the form for you.
4. You will need to give the name of the bank receiving payment, the amount, your name and that of the receiving account holder.
5. There is a small transaction fee, which you should pay in addition to the transfer amount. (a little more or less than W1,000 - feels are slightly lower if you are in the same bank as the receiving account).
6. Give the teller the cash (the amount to be transfered + the service fee).
7. You will be given a computer generated receipt. (Good idea to keep and show if necessary)
8. All done. Transfer is completed.

Paying Utility Bills is possible even if you don't have a Korean bank account.
There are machines in most banks that are set up for utility bill paying. When you received gas, electric, phone, etc. bills, you will notice that they have perforated sections. Bring the entire bill with you to any bank. A staff person (often the security guard) will help you with the process - they do it for Korean customers all the time. If you don't have a bank account here, just bring cash with you. The machine will process your payment at no extra cost. 

How to tranfer money via an ATM if you don't have a Korean bank account:
1. The ATM screen offers transfer choice options: 계좌이체 (transfer between accounts), 무통장송금 / 무카드거래 (transfer without bank account or transfer to your bank account from other bank’s ATM).
2.If you do not have a Korean bank account, the instructions are in Korean only: 무통장송금 (transfer without bank account). Follow the steps below and you'll be able to transfer cash to the other person's account.
3. On the screen, select the recipient’s bank (은행) from the list provided at the bank. You can also find a list of Korean banks with names in English and Korean on the K4E Banks and Securities List page (see also headings lists below).
i. Key in your ARC/ID number
ii. Key in your (or a) contact number (this is so that the recipient can identify who sent the money)
iii. The following phrase will appear 수취인의 계좌번호를 누르신 후 확인 버튼을 눌러주세요 (enter recipient’s account number and press 확인 to confirm.)
iv. Insert Cash - put it in the drawer that will open up and then press 닫기 (close) to close the drawer.
v. The recipient’s name and the amount transferred will appear on the screen.  Make sure both are corrent, then press 확인 (Confirm) if the amount is correct or 취소 (Cancel) if it is not (you can then start the process again).
vi. Take your receipt.
*NOTE: That you must use an ATM of the bank to which you are transfering money. This is because an account holder would pay a fee for a transfer to another bank. As this fee cannot be collected from this type of cash transfer (sender has no account), the transactions are limited to transactions where there is no service fee (within same bank).
Also, 무통장 transaction are limited to W1million/day.

K4E Editor: We try to make the information on Korea4Expats.com as complete and accurate as possible, so if you notice any errors or omissions in the content above, please let us know at info@korea4expats.com
 

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Last Updated on 2017-01-09


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