Bank account in South Korean won (KRW)
History of the South Korean won (KRW)
The Korean won entered into circulation in the XIX century — after the overthrow of the ruling Joseon dynasty — and originated from the Spanish-American silver dollar, actively used in international trade between America and Asia. The Bank of Joseon, the Central bank, issued the Korean won.
During Japan's colonial era, from 1910 to 1945, the Korean won was replaced by the Korean yen, equivalent in denomination to the Japanese yen (JPY). After the breakup of Korea in 1945, two separate currencies emerged: the South Korean won (KRW) and the North Korean won (KPW). In 1950, a new central bank, the Bank of Korea, took over issuing the South Korean won.
Until 1997, the South Korean won had a fixed exchange rate against the dollar, and only after an agreement with the International Monetary Fund (IMF) was the currency switched to a floating exchange rate.
In 2006, problems with the cash notes were discovered, making them easily counterfeitable, so the South Korean government reissued the notes, especially the 5,000 won denomination. There are paper notes in circulation in denominations of 1,000, 5,000, 10,000 and 50,000 won.
South Korean won (KRW) exchange rate
The South Korean won trades at an exchange rate of 1,341.40 KRW to the US dollar.
Since 1945, the currency has depreciated almost 90 times against the US dollar, when the exchange rate was 15 KRW/USD. This was partly due to a series of devaluations in the middle of the last century.
In which South Korean banks you can open an account
Opening an account is available at local and international banks with offices in South Korea. Here is a list of local banks that allow non-residents to open an account:
- Shinhan Bank — Korea's first-ever bank, opened in 1897 under the name "Hanson Bank" and is located in Seoul, the republic's capital. In addition to money transactions via mobile app or online banking, Shinhan Bank provides asset management services;
- Hana Financial Group is a large banking and insurance group comprising Hana Bank, Hana Financial Investment and KEB Hana Card. Hana Bank is South Korea's largest bank, with services available to retail and corporate customers, including investments, pensions and trust funds;
- KB Financial Group is the second largest group of commercial companies in South Korea after Hana Financial Group, of which KB Kookmin Bank is a member. Despite its high position, the group was recently established in 2008. KB Kookmin Bank provides financial services to individuals and small and medium-sized businesses, including time and savings deposits and negotiable certificates of deposit;
- HongHyup Financial Group is another South Korean financial group comprising a commercial and savings bank, an insurance company and an investment management organization. In addition to South Korea, the group has branches in the US, UK, Hong Kong, India, PRC and several other countries. HongHyup Bank is the third largest bank in South Korea, providing lending and insurance services.
International banks:
- Woori Bank is a commercial bank that is part of the Woori Group and is one of the top 100 banks in the world;
- Citi Bank — the most significant international bank, founded in 1812, with branches in more than 100 countries, including CIS countries, under the legal name of Citibank.
- Standard Chartered Korea is the South Korean division of an international corporation founded in 1969 and ranked among the world's top 100 banks. The bank was established due to Standard Chartered Korea's acquisition of First Bank in 2005.
What banking services are available after opening an account
South Korean banks provide a wide range of services to their customers:
- money transfers;
- currency conversion;
- payment for goods and services;
- deposits;
- lending;
- investments in securities, precious metals and other assets.
