Transfers & FX
Sending money home and changing currency in Korea: what it really costs, how much you can send, and how to lose as little as possible to fees.
Why does sending money home cost more than the fee?
Most of the cost is hidden in the exchange rate, not the upfront fee. A provider can advertise a low or even zero fee and still make money by giving you a worse rate than the real mid-market one.
Why is that? Every provider buys currency at the mid-market rate, then sells it to you a little above that. That gap is their margin. On a large transfer the margin can be far bigger than the fee, so two providers charging the same fee can deliver very different amounts.
How much can I send out of Korea?
As a foreign resident you can send up to USD 50,000 a year without documents showing where the money came from, through the one bank you register as your designated foreign-exchange bank. Above that, you send through the same bank with proof such as payslips. The USD 100,000 no-paperwork limit you may read about applies to Korean nationals, not foreign residents.
Why is that? Korea regulates foreign currency leaving the country. Under that annual limit the paperwork stays simple. Above it, you’ll usually need to show proof of income or explain why you’re sending the money. That’s why you normally name one bank as your designated foreign-exchange bank.
When does my transfer get reported?
Banks report larger transfers to the National Tax Service as a matter of routine: no-document transfers once they pass USD 10,000 in a year, and incoming transfers over USD 10,000 in a day. It’s routine record-keeping, not a penalty.
Why is that? Reporting lets the authorities keep an eye on large sums moving in and out. It doesn’t mean you owe tax on the transfer itself. Keep records of where the money came from and why you sent it, in case you’re ever asked.
Bank or transfer app — which is cheaper?
It depends on the amount and on where it is going. Specialist transfer apps often come out ahead on small and mid-size transfers. For very large amounts or less common currencies, check both. A bank sometimes wins on the rate.
Why is that? Apps usually keep fees low and margins tight on popular routes, like KRW→USD or KRW→VND. Banks may add wire-handling or intermediary-bank fees that aren’t obvious upfront. The only reliable test is the amount that actually arrives, and that is what the calculator compares.
Related calculators
Common terms
Before you send money home
- Set up a designated bankName one bank for your FX remittances. Repeat transfers get easier after that
- Get two quotesWrite down the fee and the rate each provider gives you
- Compare what arrivesChoose by the amount your recipient actually gets, not the fee
- Keep proof for big transfersAbove the annual limit, you need payslips or proof of where the money came from
Frequently asked
Some apps let you pay by card or cash, but the rate is usually better once you have a Korean account. A designated bank also makes larger transfers simpler.
If you already paid tax on that income here, sending it home doesn’t trigger another tax. Large or unusual transfers can still draw questions, so keep records of where the money came from.
Rates move constantly and we don’t track them live. Compare quotes when you’re ready to send rather than trying to time the market.