How to Open a Business Bank Account in South Korea as a Foreigner

How To Open A Business Bank Account In South Korea As A Foreigner

South Korea’s innovation-driven economy, strong financial infrastructure, and strategic position in Asia make it an appealing hub for international expansion. But to open a company bank account in South Korea, foreign businesses must tackle complex regulations, language barriers, and local documentation standards.

Commenda simplifies this journey with expert support at every step, helping your business establish local banking access with ease. 

This guide covers how to open a business bank account in South Korea as a foreigner, ensuring you’re prepared to meet local requirements.

Benefits Of Having A Local Business Bank Account In South Korea

For foreign businesses entering the Korean market, having a local bank account is essential for smooth operations and regulatory compliance. When you open a company bank account in South Korea, you gain access to crucial financial tools that support daily business needs, including:

• Efficient financial operations: A domestic account enables smooth handling of payroll, local vendor payments, utility bills, and corporate transactions in Korean won, improving operational efficiency.
• Reduced FX costs and access to multi‑currency services: Many Korean banks offer multi-currency accounts and competitive exchange rates for cross-border trade and remittances.
• Enhanced credibility and trust: A corporate account in the company’s legal name enhances business legitimacy with suppliers, clients, and regulatory bodies.
• Better integration with local banking systems: Access to advanced treasury services and faster payments via Korea’s efficient financial infrastructure.

This foundation sets the stage for understanding how to open a business bank account in South Korea as a foreigner, helping foreign entities establish quickly and operate with confidence.

Can A Foreign Company Open A Business Bank Account In South Korea?

Yes, a foreign company can open a company bank account in South Korea once legally registered as a Korean entity. This includes being registered as a Yuhan Hoesa (limited liability company), Chusik Hoesa (joint‑stock company), or a registered foreign branch.

Banks generally require the entity to be fully incorporated under Korean law, with valid business registration and seal certification. Foreign shareholders and directors are permitted, whether resident or non‑resident. While most domestic corporate accounts require in-person identity verification, several banks now allow video‑conference or power‑of‑attorney options via local agents for remote founders.

Business Bank Account Requirements For Non‑Residents In South Korea

When considering opening a small business bank account in South Korea, non-resident foreign entities must meet specific documentation and capital requirements beyond eligibility.

Required documents include:

• Business registration documents: Proof of incorporation or official company registration in Korea
• Business license confirmation: Issued by South Korea’s Ministry of Justice
• Government-issued ID: Valid passport, foreign driver’s license, or national ID
• Proof of company address: Lease contract, utility bill, or phone bill confirming your business’s Korean address
• Authority to act: An operating agreement or legal document proving you can manage the account
• Korean phone number: Often required for mobile verification; virtual numbers may be accepted
• Beneficial ownership declaration: Identifies the individuals who ultimately control the company for compliance purposes

Foreign investors often need to transfer a minimum initial deposit of around KRW 50 million (approx. USD 40,000 – 50,000), classified as “investment capital” into the account before full services are granted.

With these documents prepared, you’ll be in a strong position to open a company bank account in South Korea efficiently and without unnecessary delays.

Legalization And Translation Of Documents For Foreign‑Owned Entities

Foreign companies preparing to open a company bank account in South Korea must ensure that their documents are both legalized and translated accurately for banking approval.

South Korea has been a party to the Hague Apostille Convention since July 14, 2007. This means official public and notarized private documents from Apostille member countries are recognized in Korea without further authentication. 

Additionally, banks typically require documents in Korean or accompanied by legal translations. Translations should be certified or notarized by a qualified translator or translation agency to ensure legal acceptance.

In practice, once apostilled and certified translations are attached, these documents meet local corporate banking standards in Korea. Ultimately, this ensures a smoother application process when you’re looking to open a company bank account in South Korea.

Step-by-Step Process To Open A Business Bank Account In South Korea

For international companies, knowing how to open a South Korean business bank account is the first step to establishing local operations. Here’s a clear process to follow:

1. Select the Right Bank & Account Type: Choose a bank experienced with foreign business clients, such as KEB Hana, Shinhan, KB Kookmin, Woori, or IBK. Consider services like multi-currency options, English support, and online banking features.
2. Legal Entity Registration: Ensure your business is registered in South Korea, whether as a Yuhan Hoesa (LLC), Chusik Hoesa (joint-stock corporation), or a foreign branch, in line with the requirements of the Foreign Investment Promotion Act.
3. Prepare the Documents: Gather the required materials and ensure they are apostilled and translated. Legal documents may need apostille certification if issued overseas, followed by a certified translation into Korean, for bank validation.
4. Visit the Bank Branch: In-person visits are mandatory for most banks. Head to a branch that accommodates foreign services, ideally with English-speaking staff. Submit all documents and complete the application form.
5. Deposit Initial Capital: Some banks require an initial investment or lump-sum deposit, commonly around KRW 50 million, classified as investment funds for account activation.
6. Enable Online & Mobile Banking: Register your Korean phone number and install the necessary security certificates. Staff often assist with mobile banking setup, SMS OTP, and card issuance.

Once these steps are completed, your account should be fully activated. With preparation and the right guidance, you can confidently open a company bank account in South Korea and begin operating smoothly.

Best Business Bank Accounts In South Korea For Foreigners

Looking for the best bank accounts for business in South Korea? These major traditional banks offer strong support for foreign-owned companies and international operations:

These leading banks provide reliable infrastructure and support when looking to open a company bank account in South Korea, making them go-to choices for foreign businesses seeking credibility, multi-currency handling, and local presence.

Common Challenges When Opening A Bank Account In South Korea As A Non‑Resident

The process to open a company bank account in South Korea as a foreign business owner can present a number of hurdles:

1. Language & Local Support:

• Many forms, contracts, and banking apps are only in Korean. Even when English support is available, it’s often limited to select branches in cities like Seoul or Busan.
• Complex native naming systems can lead to character-limit issues and account mismatches if your name exceeds bank-imposed limits.

2. Identity & Legal Restrictions:

• Without required or complete documents, accounts may be issued under a temporary or highly restricted status with low transaction limits or no online access.
• Some banks still require in-person branch visits, even though remote verification systems exist, which can delay the process for founders abroad or with automated identification hurdles.

3. Branch-Level Inconsistency: Application outcomes vary widely by branch. Some staff may reject foreign business applications without explanation or forward requests to other departments or locations.

4. Technical & Security Complexity: Activation of online banking requires installing multiple security tools (e.g., OTP certificate management and dedicated apps), which are often only documented in Korean and involve time-consuming setup.

These challenges often result in delayed onboarding, miscommunications, or temporary restrictions. Being aware of these obstacles ahead of time allows businesses to prepare more effectively when they’re ready to open a company bank account in South Korea.

Tips To Get Your Business Bank Account Approved Faster

To improve your chances of fast approval, follow these practical tips to keep in mind when you open a company bank account in South Korea:

• Choose a Foreign-Friendly Bank & Branch: Go to major, foreign-focused branches in cities like Seoul or Busan. These are more experienced in handling foreign company applications.
• Pre-arrange English Support: Call the bank’s English support line in advance. Each teller can connect you to a translator when needed.
• Gather All Documents in Advance: Ensure you have business registration, seal certificate, passport, ARC or visa, address proof, phone number, and beneficial ownership form ready. Missing documents often lead to rejection or flags.
• Present a Clear Business Purpose: Prepare a concise explanation or simple business plan, especially if receiving large deposits or foreign investments, to ease underwriting concerns.
• Avoid “Freelancer” Label: State you’re a registered business or consultant, not just a freelancer; this clarifies your eligibility status.
• Be Prepared for Additional Checks: Expect limited account status until full KYC verification is completed. Some banks may require a trial deposit or an extended review period.

With these proactive tactics, your process to open a company bank account in South Korea should be smoother and faster.

Alternatives To Traditional Business Bank Accounts In South Korea

Opening a local bank account isn’t always feasible right away, especially for new or remote foreign entities. In these cases, alternative financial platforms can offer temporary solutions.

• Payoneer: Used by many Korean SMEs through marketplaces like EC21, Payoneer enables global currency receipts, payouts in over 190 countries, and integration with Korean e‑commerce platforms.
• Wise: Offers inexpensive currency conversion and international transfers into Korean won, but is not a full business account and can face limitations or blockage on Korean bank transfers.

These options may suit businesses with international invoicing, freelancers, or those seeking interim payment solutions. However, they lack essential Korean banking features like KRW corporate accounts, local payment infrastructure, and official business credibility.

If you want full operational access, the best option is still to open a company bank account in South Korea.

Tax And Compliance Rules For Foreign‑Owned Bank Accounts In South Korea

Foreign companies holding South Korean bank accounts must adhere to several tax reporting and compliance obligations:

• Withholding Tax: Non‑resident corporations face a standard withholding tax of 22% on Korean‑source dividends, interest, and royalties, though this can be reduced under applicable tax treaties.
• Foreign Financial Account Reporting (FFAR): Korean resident corporations and individuals with overseas accounts (including business accounts) exceeding KRW 500 million on any month-end must report details to the National Tax Service between June 1–30. Penalties range from 10–20% of the unreported amount, with potential criminal liability if the breach exceeds KRW 5 billion.
• Automatic Exchange of Information (AEOI): Korea participates in CRS and FATCA. Korean banks automatically share account holder data, including non-residents, to foreign tax authorities. Entities must self-certify tax residency and provide taxpayer identification numbers.

By following these rules, businesses can confidently open a company bank account in South Korea and manage it in full compliance with local regulations.

How Commenda Supports Global Banking And Tax Compliance

Doing business in South Korea means meeting strict banking, documentation, and tax standards. Commenda helps you open a company bank account in South Korea with full confidence and compliance.

Here’s how we support foreign businesses:

• Remote company formation: Set up your Korean entity from anywhere; no local presence required.
• Bank-ready documentation: We manage apostilles, notarizations, and certified Korean translations tailored to bank requirements.
• Seamless tax alignment: From business license prep to FATCA/CRS declarations, your onboarding is fully tax-compliant.
• Single-point support: Commenda simplifies the entire process, eliminating the need for multiple service providers.

Wondering, “How can I open a business account in South Korea without the usual delays?” Commenda makes it simple.

Book a demo today to explore how our platform can streamline your South Korea expansion from day one.

Frequently Asked Questions (FAQs)

Q. Can a non-resident open a business bank account in South Korea?

Yes, but only through a locally registered entity. Non-residents must incorporate a company or branch before applying.

Q. What documents are required to open a business bank account in South Korea as a foreign company?

You’ll typically need company formation documents, a business license, proof of address, a valid ID, a Korean phone number, and a beneficial ownership declaration.

Q. Do I need a local director or representative to open a business account in South Korea?

While not always mandatory, banks may require a Korean resident director or contact for compliance purposes.

Q. Can I open a business bank account in South Korea online without visiting?

Not entirely. Most banks require at least one in-person visit, though some processes can be handled remotely with local support.

Q. Which banks in South Korea allow foreign-owned or non-resident businesses to open accounts?

Major banks like KB Kookmin, Shinhan, Hana, and Woori offer services for foreign-owned entities.

Q. How long does it take to open a business bank account in South Korea for a foreign entity?

It typically takes about 4 weeks, depending on bank requirements and document readiness.

Q. Are there minimum deposit or balance requirements for foreign-owned business accounts in South Korea?

Yes. Requirements vary but generally range from KRW 1 million to KRW 5 million.

Q. Can I open a multi-currency or USD/EUR business account in South Korea?

Yes, most major banks offer foreign currency accounts, though eligibility varies.

Q. What are the tax implications of holding a business account in South Korea as a foreign company?

Accounts may trigger local tax filing obligations, withholding taxes, and FATCA/CRS reporting.

Q. What should I do if my business documents are not in South Korea’s official language?

Submit notarized Korean translations and apostilled originals to meet bank and legal standards.

Q. Are fintech alternatives like Wise or Mercury accepted for doing business in South Korea?

Not for official registration or tax compliance; local bank accounts are generally required.

Q. What are the common reasons business bank accounts get rejected for foreign entities in South Korea?

Incomplete documentation, lack of local contact, and unclear business purpose are common issues.

Q. Do I need to register a company locally before applying for a business bank account in South Korea?

Yes, local registration is a prerequisite to opening a business bank account.

Q. Will opening a business bank account in South Korea trigger local tax obligations?

Yes. Even dormant companies may need to submit regular tax filings once registered.