Do I have to close my bank account?

Dear Michelle,

I’m leaving Korea. Do I have to close my bank account?

~Moving On

Dear Moving On,

If you are planning to leave Korea for good, it is an extremely good idea to close your Korean bank account.

Korean bank accounts do not have any maintenance fees, so that is not the issue. And of course you can access your regular account from overseas through internet banking or with your international check card, so that is not the issue either.

The issue is if you ever lost your security code card for internet banking or the magnetic strip on your check card became demagnetized or there was some other unforeseen mishap, you would have to solve the problem in person at a bank branch in Korea. It would be extremely difficult and maybe impossible for you to get a replacement while you are outside of Korea.

In fact, if you do not use internet banking (and by “use” I don’t mean just checking your balance, I mean making an actual transaction such as a domestic transfer or an overseas remittance) for one year, your internet banking service will expire and you will need to visit a bank branch in person in Korea to register again.

In addition, if you leave your installment accounts, time deposits, or fund accounts open, it would be impossible to cancel the accounts and withdraw your cash from abroad. To gain access to your funds you may have to visit a bank branch in Korea in person.

One more thing; when we do finally leave, many of us will eligible for a refund of the pension money we have been paying. If the National Pension Service (http://english.nps.or.kr) is planning to make the deposit after you leave Korea, it is much better that they make the overseas remittance of your pension money into your home country bank account.

This high level of necessary security is due to Korea’s Real Name Law that requires bank transactions to be done in person by the account holder. This is a federal government regulation and all banks must follow the Real Name Law.

If you are heading out of country on vacation, take advantage of the flexibility that your international check card and internet banking offer, but if you are never coming back, be sure that you take all of your money with you when you leave.

(Submit your banking questions to farnsworth@shinhan.com)

“Dear Michelle: Banking Advice for Foreigners in Korea” is a monthly column written by Michelle Farnsworth. Michelle is an 8-year resident of Korea who is currently the Foreign Client Relationship Manager at the Shinhan Bank Seoul Global Center – the only bank branch in Korea that is exclusively dedicated to serving foreigners and foreign companies. Please visit the “Shinhan Bank Seoul Global Center” on Facebook for more information. Also, please note that the banking information provided in this column is based on Shinhan Bank policies and may not be applicable to all banks in Korea.