Credit Cards for Non-Koreans    

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FOREIGN CREDIT CARDS can be used in Korea, and in fact, are sometimes preferred by many Korean merchants. However, Korean credit cards are often required for on-line payments, etc. Payments of your foreign credit card must be made in your own country, however.  

KOREAN CREDIT CARDS are issued by Korean banks and/or by Korean companies, including department stores. Visa, MasterCard and American Express are available in Korea through ‘licensing’ arrangements with those companies – however, your credit rating in your home country or the fact that you’ve had any or all of those credit cards in your home country and are a customer in excellent standing is of no relevance in Korea. 

CREDIT RATINGS as exist in many Western countries are not the norm in Korea. Generally, an individual bank or company will keep a record of an account holder's credit history with them. However, the information is not usually shared between institutions. This applies equally to Koreans and non-Koreans.

OBTAINING A KOREAN CREDIT CARD can sometimes be difficult. There is no law against issuing a credit card to foreign residents, but many banks (or bank branch managers) are reluctant to do so in the belief that foreigners will run away without paying. This attitude persists despite the fact that there is no proof that this is true and that experience has demonstrated that the highest percentage (by far) of delinquent accounts are not those of foreign card holders.The requirements for getting a Korean credit card vary from bank to bank and from branch to branch within the same bank. Corporate executives, business owners, some university professors perceived as being lower credit risks than English teachers or nationals of developing nations, etc. You must be a legal foreign resident to apply for a credit card.

• Some banks will issue you a credit card once you have satisfied the basic standards, although your credit limit may be significantly lower than what you would expect in your home country.
  
• Basic documents required include: your alien/foreigner registration card, a 3x4 photo, a copy of your employment contract (plus a certificate from your employer in some cases) and a certificate of tax payment. You may also be asked for some additional documents.
  
• Technically, you may have to show a minimum monthly income to get a credit card with the minimum amount of credit. How much that minimum income should be may depend in what kind of credit you require (for use in or outside Korea), what kind of job you have, how long you have been in Korea, what the bank (or branch) policies are,  as well as varying other non-identified factors.
  
• Some banks will ask you to provide a Korean national guarantor, who agrees to pay you credit card debt should you default. This option is also available in some case for foreign residents who don't qualify for a credit card - in this way one can still enjoy the convenience of a credit card, which the bank will issue since there its risks are minimised.
  
• Some banks will require that you take out a term deposit for a minimum amount or for a sum that exceeds (or is even double) your credit limit. 
  
• You may have heard of an 'Expat-credit card' - this card is generally reserved for corporate foreign residents; those employed by multi-nationals, etc. However, that is not always the case and non-corporate foreign residents have applied for and received one.

 PAYMENTS and INTEREST RATES

• Your credit card must be paid, in full, every month. If you are late or have made only a partial payment, you will be unable to use your card until the balance has been paid in full. A repeat of this type of delinquency will likely result in a cancellation of your credit card, especially if you are a foreign resident.
  
• There is no interest on charges, except cash advances, if the balance is paid in full on the due date. Interest charges, at a very high rate, kick in the minute your payment is late.
  
• Interest charges are applied to cash withdrawals from the moment they are made.
  
• It is possible to arrange for monthly payments on a purchase, but that arrangement must be made with the vendor, who then ‘bills’ you the agreed sum plus interest on a monthly basis.
  
• Credit card payments are usually debited directly from your bank account – you generally have to have an account with the bank that issues you a credit card. Some banks will require that you salary be paid directly into that account.
•  Credit card statements are generally in Korean only, although more credit card companies are now providing Internet access in English. Some also have English language support services/staff. You may want to check on that at the outset. Some of the banks will provide billing statements in English (ie. KEB)

Should any of the information above be incomplete or inaccurate, please contact us at info@korea4expats.com

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.