Korean travelers can use their debit cards to withdraw money from ATMs in the U.S. and Southeast Asia next year. This has only been possible so far with credit cards.I hadn't realized Koreans faced any obstacles getting or using their debit cards abroad. Many expats, though, find it difficult or impossible to get a functioning international debit card, ostensibly because banks are afraid of foreigners withdrawing their money abroad and circumventing transfer fees and the limits in place on how much can be sent overseas. What I mean by international debit card, since somebody asked me last time, is simply a card issued by your bank that works not only at domestic ATMs but at overseas ones as well. In my case, mine had a Visa Plus logo on the back, which meant it was compatable at machines worldwide that shared that logo.
The Bank of Korea on Sunday said it is negotiating a joint ATM network with central and commercial banks in Southeast Asia countries and the U.S., which are popular destinations for Koreans.
Once the ATM network is established, it will be possible for debit card holders to look at their account balance and withdraw money from ATMs abroad.
I had the good fortune of having a cooperative person at Korea Exchange Bank (외환은행) set up my account in 2005 and give me a working international debit card for only a small fee. Surprisingly, I had it replaced no questions asked in Gwangju in 2007. I successfully used it in the United States, Japan (at 7-11), China, Taiwan, Hong Kong, Malaysia, and Vietnam, and have heard countless times from other teachers that KEB is the most hassle-free bank for expats.
In any event, some expats have found that banks refuse cards based on government regulations that, according to a Joongang Ilbo article from January 2008, don't exist.
The difficulties foreigners living in Korea have obtaining international debit cards and local credit cards are a perpetual source of frustration for expatriates.
While some banks even tell customers that “new” Ministry of Finance regulations prevent them from issuing international debit cards to foreigners, there are no such rules, according to a ministry official.
My fiancee was denied an international debit card a couple times from Gwangju Bank, and was told foreigners can't get them. An article in the Korea Times from December 2008 said that foreigners do have access to international debit cards:
[W]ith the government easing regulations, foreigners now have international ATM access and are able to remit over $10,000 out of the country. They can withdraw cash worth $50,000 equivalent in won at ATMs outside of the country. ``If any foreigner has an ATM card that was issued before this free-market type of move, they might need to get it changed,'' he said.Clearly some banks don't comply, and we talked about that in a post on my site. Occasionally, when expats do manage to get one, they go overseas only to find it doesn't work. I put up a poll on Dave's ESL Cafe in December, 2008, asking if users were able to get an international debit card, to which 36% responded they were either refused one or were given one that didn't work. Perhaps a fairly small number, but in my opinion about 36 percentage-points too high.
I can appreciate banks trying to adhere to rules and government regulations they may believe to exist---or may invent on the spot because they don't know the answer---but I do object to banks making it harder for expats to access their money. And, well, to banks making it harder for Koreans to access it as well.
19 comments:
hi. just dropping some ink..
anyways, i had a korean language teacher who used his Citibank debit card here in Malaysia.
He didn't have any issues withdrawing money from the Citibank atm, and had an extra card made as well.
I had not actually used any foreign cards during my trip in KOrea, as it was cash all the way for me, so I can't really say.
I wanted to get one from KB Bank, but I also wanted to be able to do internet banking. I went in with my co-teacher and they gave me a credit card instead - all I did was fill out a from and they approved it a week later. Most people I know have struggled to get credit cards from banks (unless its a Samsung card).
Of course we are in Korea, so actually getting internet banking and the card to work online took another frustrating couple of weeks - no one seems to know how to get it to work.
Its a Visa credit card, so it should work easily overseas...
I should just add that not all international debit cards have the Visa Plus logo. There is a wide variety, mine just happens to be Visa Plus.
In Taiwan last January I recall a Korean woman being able to use the local ATMs with her Korean debit card (through Cirrus, I believe).
Like I said the last time you spammed my post, you can direct any, um, press inquiries to the email address on the side of my page.
the last time (sept.09) I went home to the Philippines, I brought with me my husband's Citibank atm card instead. i was able to withdraw cash without any hassle. they also asked me to bring an extra card should problems arise.
i only hold an F2-1 visa and i'm not a taxpayer yet. so together with my husband, we went last december to KookMin Bank and asked for any other option available for someone like me who would like to have a credit card under his/her name. with a new bank account with a guarantee deposit (minimum of 1MillionWon) aside from my enrolled internet banking account, they issued me a credit card (visa plus) with an expiration date that's a month earlier than my visa's.. the process was really easy and the staff were very accommodating.
Yes, The reason I twittered it was I'm not sure of the nomenclature being used here for the various card types been described.
My understanding (and I stand to be corrected) is thus:
Koreans and Non-Koreans can have a Credit Card which they can use to purchase goods and services overseas and also have access to a cash advance. For Non-Koreans the amount that can be spent in (usually US Dollars) is less than the actual line of credit so as not to expose the bank to too much risk. In addition good luck getting a credit card if you are a Non-Korean. Although it does happen.
Koreans and Non-Koreans are also entitled to a Check Card - what we in the west would call a Debit Card. Said card can be used to purchase goods and services in Korea and also can act as an ATM card allowing withdrawal of ones own funds from an Automatic Teller Machine. When in use overseas It is only good for ATMs where again you draw upon your own funds rather than ticking up a cash advance on credit at a high interest rate.
As far as I know only KEB (외한은행) will give a Non-Korean a check card that can be used to draw upon funds while overseas. Well with any ease anyway.
Finally ATM cards are only good for use at an Automatic Teller Machine whereupon you again, draw upon your own funds, but you cannot use it to purchase goods and services. For a long time this is all you would get from a Korean bank if you were Non-Korean, but increasingly Check Cards are being issued since the banks realized you can't spend more than you actually have in your account and their exposure is close to zero.
With all of that in mind I can't seem to figure out what the Chosun is going on about since I and a number of commenters have said they have used their Check Cards (in their ATM role with either Cirrus or Visa Plus) overseas numerous times in the past.
Frankly the Whole Korean baking system is outdated if you ask me. Coming from New Zealand where EFTPOS (Electronic Funds Transfer at Point of Sale) has been the norm for over 20 years and it's all done in real time (no getting stuck in Itaewon at midnight because you can't use your ATM card) and where things like pass books and cheques have gone the way of the Dodo I avoid having to do anything banking related like the plague. (Though prefer in-person dealings rather than watching my computer slow to a crawl and then die).
As Brian notes KEB is AWESOME when it comes to dealing with foreigners, International ATM and domestic check cards? No Problem. Credit Cards? No Problem (as long as you make a security deposit. KEB will give you a line of credit 90% of what you lay down as a security, so 1million won yields a credit limit of 900,000won. Then they will look after your deposit and then when you leave give it back to you plus interest.) Also if you so desire you can actually get a Visa Platinum Card with a deposit of 1.7 million which makes you look very fancy, but also gives you free access to Airport Lounges of your choice all around the world.
Goodtimes!
This post is very timely. I went to Japan in mid-January, and foolishly assumed my KB debit card would work there because it had a Cirrus logo and the words 해외 ATM 사용 on the back. Upon arriving in Japan, guess what? Not a single ATM liked my card. Luckily I had exchanged some money already and had a few other tricks up my sleeve, but it could have been very awkward. When I returned to Korea I went to KB and asked about it; they told me that I have to present my passport and some other things before I can 'activate' the card for overseas use. When I enquired about getting a debit card which had Visa or Mastercard, they told me it couldn't be done because I'm a foreigner.
So I'm currently looking for a new bank, but my school told me that only a handful of banks are directly compatible with their pay system. If I can't find a bank that will give me that kind of card (being able to use it to pay for my subway ticket would be nice too) I might just have to have two accounts.
Yes, I actually had quite an amazing experience with the aptly-named 'BS' bank in Busan(Best Service apparently, not the accronym they should have avoided with at least a 20 second google search!) Anyway, digression over, I wanted to get a card I could use in China knowing well that the standard debit card I had wouldn't function abroad. So I went into the local branch and asked for a card with a Union Pay logo. I know this is common and can be used in almost any ATM in China. At first the clerk seemed happy to oblige but after signing several documents, a manager came over and told her not to issue the card to me as foreigners were not entitled. Of course I was slightly enraged at the idea I was being denied access to my own money on the basis that I wasn't Korean but I kept it to myself anyway. Then, just as I was leaving, the clerk told me I could get a Korean friend to open an account instead. Fine, that's what I did. I went back to the same clerk 10 minutes later with my housemate and he opened an account, gave me his card, I gave him mine and on payday he transfered my money to to his card which I used in China without any problems.
It's good that idiocy can be circumvented but I had two problems with this situation. The first is that I can't see how a bank has the right to tell foreigners they can only use their card in Korea. Secondly, I was then walking around China relying on a card that had a fairly obvious Korean name on it! I can promise you, it's a name that doesn't fit the face, and I consider myslef lucky that in three weeks no one cared to check. It's not a fair position to force on someone. The money I earn here is mine, and within reason, I see know reason why I shouldn't spend it at my disgression, in any country I choose. I fail to see any logic in this process and in fact think it's an issue that the banks need to address universally (that and the unbelievable 'dead hour'). Thanks for this post Brian, it's certainly enlightening to realise it's not even law. I'll be sure to use KEB next time.
Welcome to the 21 century Korea
rmwonder at least you chose to have a Korean name on your card. I am also putting up with the same BS. When I opened an a/c with them they totally koreanized my name!
My name is Sullivan but on the card they printed MR SEOL RI BAN - they don't even get through my first name because it doesn't fit on the card! And the clerk had my ID in front of her at the time but for some reason decided that it would be better to give me a new name.
Both BS and Nong Hyup went out of their way to tell me that their debit cards will not work o/s - despite NH's Maestro logo. Guess I should just open an account with KEB.
By the way, if you are visiting trying to withdraw money in Japan (@baekgom84) you should go to 7-11. Their atms accept almost all foreign cards and networks (and the atms don't close either).
The Japanese banking system is uncannily similar to the Korean one, and no matter how many cirrus/maestro/visa/whatever logos are on them the bank atms *will not* accept foreign cards.
@Chopsticks - Oh, I did. I went to just about every convenience store I could find, and I also went to the post office ATM which everyone had assured me was the very best ATM in Japan for accessing foreign accounts. No dice. I suppose I'm partially to blame for not even checking with the bank if it would be okay for me to use the card overseas or not, but as rmwonder points out, I never reasoned that the bank would have any reason to deny me from taking my own money out of my own account.
And on a slightly unrelated banking note, I couldn't get any cash out of my KB account for pretty much the whole of Lunar New Year's, and that included using the card to pay directly. I had to buy milk and ramyun using 500 won pieces out of my piggybank. Just ridiculous.
I had a slightly disappointing experience in getting a debit card. I went to a bank to change debit cards. I clearly asked for a Visa logo many times over and the clerks seemed happy to oblige. The next week I went to pick up the card and it was a Maestro. I protested the point and the people were like "yeah its Maestro, its the same," but it isn't. Then when I tried to use it in the states it didn't work.
That said, Korean banking does have it's benefits. Mostly I like the fact that banks don't let you over draw and then charge huge fees. I hate that about American banks. I had a case where I had a subscription to an internet security. The company sent me an email that I they were going to renew the subscription, which they did and charged 70 bucks to my account right when I had 69 in it, so the bank charged me an extra 30 for not having enough money in my account.
The problem was that they charged the account on a Friday, which meant that it was Saturday here, and I couldn't send any money home to cover the cost in time because the banks here were closed. With a Korean bank that wouldn't happen, they would just send a text message to say that there wasn't enough money in the account.
Much Love to KEB and Samsung. They make life living here much easier.
I've got two ATM cards that should work overseas. The first one a Choheung/Shinhan card, over 10 years old, does work. At least in Canadian and Thai bank machines. The second, a KB card worked for a few years, until the bank decided that we couldn't be trusted to spend our money as we see fit. Recently, a co-worker tried to get his Shinhan card replaced and they gave him an "international card" that only works in Korea. Something he only found out when he was diving in the Philippines. Bank customers beware.
Just to clear one or two points up-
Foreigners most certainly CAN get Korean credit cards. I've had one for a couple of years with no deposit or guarantor or any such thing, and with a credit limit of several million won. It was offered to me by a saleswoman who knocked upon my office door one day, and though I didn't especially want it at the time, it's proven very useful on many occasions (such as when shopping online on international sites). They even have English-speaking customer services.
Secondly, I'm pretty sure that unless your card has a Visa (or possibly Cirrus) logo, it's not going to work abroad. The ATM you use overseas uses the Visa network to contact your Korean bank to get an approval for the withdrawal request you're making. Unless your account is linked up to that network, it's not going to work. I don't know why the same system isn't used for point-of-sale transactions, but obviously setting it up requires more paperwork than Koreans are ready to handle. It's based on the same principle as ATM approvals though, so there's no reason why it can't be done in future.
If your bank refuses to give you an international ATM card, close your account and take your business elsewhere. Before you throw a strop though, make sure you and the teller are on the same page in terms of your request. Make sure you know the terminology for what you are requesting (international ATM card) and that the teller doesn't assume you're asking for credit. They'll probably want to see a certificate of employment, a payslip and your passport before they'll give you one, mind. It may take a while but it's worth the effort.
By the way, the reason - as far as I know - that banks won't automatically give foreigners international ATM cards is because there were many cases of Chinese / Korean Chinese fraudsters duping poor innocent Koreans into transferring millions of won into anonymous accounts which would then be cleared out overseas, whence the cash would never be seen again. Rather than trusting that a campaign to educate Koreans on basic personal security would ever work successfully, the banking regulators chose to inconvenience all foreigners instead.
baekgom84: It is not unusual to have two bank accounts. When I worked for the hagwon, they set me up with KB. Later I found out that I could not use my card overseas. I have lived in 6 different countries and I have never faced the situation I faced here in Korea. I later went to KEB and they gave me an international debit card and later a credit card. They have been very helpful.
I was going to close the KB account but decided to keep it as a savings account. Every pay day I transfer half my salary to the KB account and use the KEB account for everyday matters.
I went South Africa and Dubai in January and my KEB debit and credit cards worked fine there.
While I was in Dubai, I noticed that Standard Chartered does business there. (I think it is a Hong Kong bank) Does any one know about SC and their policies about international debit cards in Korea?
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