As an expat, opening a bank account in a foreign country can seem daunting, but it is a crucial step in managing your finances while living abroad. In Korea, one of the key requirements for opening a bank account is obtaining a Korean Tax Identification Number (TIN), also known as a Resident Registration Number (RRN).
To help expats navigate the process of opening a bank account in Korea, we’ve put together a guide that covers tax identification numbers around the world. This guide also provides tips on how to prepare for opening a bank account in Korea.
Firstly, it is important to understand the different tax identification number structures used in different countries, such as the Tax Identification Number (TIN) in South Africa, the IRD Number in New Zealand, and the Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) in the United States.
| Country | Country Code | TIN Automatic | Taxpayer Number Name | Taxpayer Number Structure |
|---|---|---|---|---|
| South Africa | ZA | Yes | Tax Identification Number | 10 digits, starting with 0, 1, 2, 3 or 9 (e.g. 0123456789). Can be found on all taxpayer-related correspondence. |
| New Zealand | NZ | Yes | IRD Number | 8-9 digit numbers (e.g. 99999999/999999999). Printed on all tax returns and notices. |
| United Kingdom | GB | Yes | National Insurance Number (NINO) or Unique Taxpayer Reference (UTR) | NINO: 9 digits, consisting of 2 letters, 6 digits, and 1 letter (e.g. AA999999A). UTR: 10 digits, found on the first page of tax returns. |
| Ireland | IE | Yes | PPSN(Personal Public Service Number) | 8-9 digit numbers and letters (e.g. 1234567T/1497955KA). |
| United States | US | Yes | Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) | SSN: 9 digits (xxx-xx-xxxx). EIN: 9 digits (xx-xxxxxxx). ITIN: 9 digits (9xx-xx-xxxx). |
| Canada | CA | Yes | Social Insurance Number (SIN) | 9 digits (e.g. 999 999 999). Found on the top right of individual income tax returns. |
| Australia | AU | Yes | Tax File Number (TFN) or Australian Business Number (ABN) | TFN (for individuals): 8-9 digits (e.g. XXX XXX XXX). ABN (for businesses): 11 digits (e.g. XX XXX XXX XXX). |
In Korea, you will need to obtain an Alien Registration Card (ARC) in order to open a bank account. Once you have your ARC, you can visit a local bank to open a bank account.
To prepare for opening a bank account in Korea, expats will need to gather their necessary documents, such as their ARC, TIN, and passport or another form of identification. It’s also important to be aware of the different types of bank accounts available in Korea and to choose a bank that meets your needs and preferences.
Steps for Expats to Open a Bank Account in Korea:
Step 1: Obtain an Alien Registration Card (ARC) in Korea.
Step 2: Check your Taxpayer Number
Step 3: Visit a local bank in Korea to open a bank account.
Step 4: Prepare the necessary documents for opening a bank account, including your ARC, Taxpayer Number, and passport or another form of identification.
Step 5: Choose a bank that meets your needs and preferences, such as its location, fees, and services.
Things to prepare:
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Your Alien Registration Card (ARC).
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Your Employment Verification Letter (재직증명서).
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Your passport or another form of identification.
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The necessary funds to open and maintain a bank account.
By following these steps and preparing the necessary documents, expats can easily open a bank account in Korea and start managing their finances there.
Additionally, expats should be aware of banking regulations and requirements in Korea, such as reporting foreign currency transactions over a certain amount.
Opening a bank account in a foreign country can be a complex process. However, by understanding tax identification numbers around the world and preparing the necessary documents, expats can successfully open a bank account in Korea and manage their finances with ease.
Featured image by Eduardo Soares
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