Sending Money Home: Comparing Ways to Send Money

Comparing the two ways

Bank transfer

• You send money at a bank counter, by internet banking, or with a mobile app.
• It is better for sending large amounts.
• Besides the transfer fee, there may be a wire fee, an intermediary bank fee, and a receiving bank fee.
• It usually takes 1–3 business days.
• Some banks have counters only for foreigners or apps in many languages.

Small-amount overseas remittance companies

• You send money with an app or website. Many of them accept requests 24 hours a day.
• They are often better for sending small amounts many times.
• With some companies, money arrives in a few minutes or within one day.
• Each company can only send to certain countries and in certain currencies.
• You must first check that the company is registered.

How to check if a company is registered

1. Go to 금융감독원's financial consumer information portal 파인 (FINE) (fine.fss.or.kr).
2. In the financial company information menu, find 소액해외송금업자 등록현황 (registration list of small-amount overseas remittance companies).
3. Type the company name and search.
4. You can see the registration number, registration date, company head, main office address, countries it sends to, currencies it handles, limit per transfer, and yearly limit.
5. If the company is not on the list, it is not registered. Do not use it.

Four things to compare

1. Fee Check if the fee is a fixed amount or a percentage of the amount you send. Also ask if the receiving side takes a fee.
2. Exchange rate This is the most important. Some companies advertise a 0 won fee but give a bad exchange rate. When you compare, ask: "If I send 10만원 (100,000 won), how much does the other person actually receive?" This number is the most accurate.
3. Arrival time Check if it takes minutes, hours, or days. If it is not urgent, the slower and cheaper option is better.
4. How the money is received
   • Deposit to a bank account
   • Cash pickup at a branch or agent
   • Top-up to a mobile wallet Ask your family in advance which way is easiest for them. If they have no bank account, choose a company that offers cash pickup.

Sending to Nepal (example)

• In Nepal, bank account deposit, cash pickup at a branch, and mobile wallet top-up are all used. Each company supports different ways.
• For a bank account deposit, you need the receiver's name (spelled the same as in their passport), bank name, branch, account number, and SWIFT CODE.
• For cash pickup, you need the receiver's name, phone number, and ID card information. The receiver takes their ID card to the branch.
• If the name spelling is different from the ID card, the receiver cannot get the money. Check it with a photo before you send.
• You can see which companies support Nepal in the countries it sends to section on 파인.

Limits and documents

• From January 2026, the designated bank system was removed. You can freely choose banks and money transfer companies.
• The limit for sending money without supporting documents is now USD 100,000 per year for all types of companies.
• Each small-amount overseas remittance company sets its own limit per transfer and yearly limit. Check on 파인 or read the guide in the app.
• Different rules may apply to foreign residents. When you send salary you earned in Korea, you may be asked for documents such as 재직증명서 (certificate of employment), 급여명세서 (pay slip), and 근로소득 원천징수영수증 (tax withholding receipt for your salary income). The amounts and required documents are different for each bank or company, so ask the bank or company you use directly. (Official confirmation needed)
• For your first transfer, you need your passport, 외국인등록증 (alien registration card), and a bank account in your own name.

Things you must never do

• Sending in another person's name. You must send it yourself, from a bank account in your own name.
• 환치기 (illegal informal money transfer). You give cash in Korea, and your family at home receives money in their country's currency. It does not go through a bank, so it is illegal. An unregistered operator can get up to 3 years in prison or a fine of up to 3억원 (300 million won). People who use it can also get a fine (과태료, administrative fine) or punishment.
• Receiving unknown money into your account and sending it on. This is money laundering for voice phishing (phone scams). Your account will be frozen and you will face criminal punishment.
• If a coworker or broker says "I will send it for you with no fee," it is usually 환치기. Say no.

Watch out for these scams

• Fake money transfer apps. They try to make you install an app through social media ads or messenger links. Always download apps from the official app store and check registration on 파인.
• Exchange rates that are too good. Real companies do not have big differences in exchange rates. If a rate is too good, be suspicious.
• Asking for money first. If someone says "Send the money first and I will give you a better rate later," it is a scam.
• Asking you to pay into a personal account. Real companies use an account in the company's name.
• Keep photos of your transfer records and receipts. They will be evidence if there is a problem.

Frequently asked questions

Q. Which is cheaper, a bank or a money transfer app? A. It depends on the amount and the country. Apps are often better for small amounts, and banks for large amounts. Each time, compare by "the amount the receiver actually gets."

Q. I sent money, but it did not arrive. A. First, contact the customer center of the company you used and give your request number. If it is not solved, you can file a complaint with 금융감독원 at 1332.

Q. I wrote the name wrong. A. Contact them right away and ask to cancel or correct it. If the money has already been paid out, it is hard to get it back.

Q. I am undocumented. Can I send money? A. You need a bank account in your own name and an ID card. Ask your bank or money transfer company what documents are needed and if it is possible.

Q. Is it better to send a lot at once? A. Usually, sending once saves more on fixed fees than sending many times. But first check the limits and document requirements.

Where to get help

• 금융감독원 financial consumer information portal 파인 fine.fss.or.kr
• 금융감독원 complaints and counseling 1332
• 외국인종합안내센터 (Immigration Contact Center for foreigners) 1345 (many languages)
• Customer center of your bank