Foreign Currency Exchange
When exchanging money, the individual’s passport or alien registration card must be presented. Most banks exchange currency, although commission, available currencies and rates will vary. When exchanging money at the primary bank in which an individual maintains a savings or loan account, the individual may be subject to a preferential exchange rate. Even when taking advantage of specialized services offered by banks, individuals may not be able to save on commission. By exchanging money over the Internet, individuals may save between 50 to 70 percent of the commission.
Overseas remittance includes remittance by non-presentation of documentary evidence, remittance to students studying abroad, remittance of overseas student living expenses, remittance of allowances for moving out of the country and other remittance requiring payment confirmation for each purpose (Remittance for settlement of export and import accounts and remittance related to capital transactions).
Methods of Overseas Remittance
- Telegraphic Transfers (T/T) : At the present time, most overseas remittances are made through telegraphic transfers, which are completed at the same moment that the telegram is dispatched to the remittee bank.
- Mail Transfers (D/D, Checks) : One is remittance via the postal service, and the other is for issuing demand drafts and forwarding these drafts directly to the remitee. The remittance fee of mail transfers is cheaper than that of telegraphic transfers. However, mail transfers contain the risk of the drafts becoming lost and are slower as well.
When making overseas remittances:
- The remitter shall designate the foreign exchange bank before making overseas remittance.
- A sufficient amount of accurate information about the remittee shall be recorded to ensure the remittance is made effectively.
- When making applications for overseas remittance, all information shall be given in English.
- Times may vary according to the bank and country to which remittance is made, but if remittance is based on accurate information regarding the remitter, the remittee may receive the draft within two to three days (on the basis of the bank’s business days).
- Since the remitter shall be immediately contacted, if any problems occur after making remittance, the remitter shall leave his/her contact phone and address with the bank.
- It is impossible to make any remittance to any of the countries against which the United States of America has sanctions and whose assets the United States freeze in the United States.
Documents required when making overseas remittance:
- Application for overseas remittance
- Certificates to confirm the real name of the remitter, such as passport, alien registration card and driver’s license
- Application for designation (or change) of the foreign exchange bank
- Documents providing evidence for payment and payment amount.
When receiving remittance from overseas: The following information should be accurately given to a remitter.
- Name, contact information and account number of the person receiving remittance,
- Bank remittances must contain a BIC code
- Name of the bank receiving remittance in English, for example: WOORI BANK 000 Branch
The account number and the name of the remittee shall match. In the case that the account number is not available, the remittee shall inform the remitter of the accurate name, resident registration number (alien registration number), passport number of the remittee and the name and information of the branch that are easily accessible to the remittee. The relevant branch may release the payment to the remittee after identifying them. While the time may vary according to the country and the bank, the remittee may receive the money within two to three days (on the basis of the bank’s business days) after remittance is made.