Guide to Personal Banking and Finance Detail | 금융감독원 금융교육센터

Guide to Personal Banking and Finance

Guide to Personal Banking and Finance Detail
Ⅱ. Foreign Exchange & Sending money abroad
Posting date 2019-12-18 Hit 382
Ⅱ. Foreign Exchange & Sending money abroad.pdf

  1. Exchanging Money


(1) Definition of Exchange Rate and How to check exchange rate

Exchange rate means the value of the Korean won paid to convert one unit of foreign currency (foreign money) into Korean won. It is a ratio that indicates how much a country`s currency is worth in the world. You can check exchange rates online or at a bank. When you check, you will see different types of exchange rates for buying a foreign currency in cash with Korean won (converting Korean won into a foreign currency), an exchange rate for selling a foreign currency in cash for Korean won (converting a foreign currency into Korean won), an exchange rate for remittances (converting Korean won into a foreign currency to be sent to someone outside Korea) and an exchange rate for receiving remittances (converting a foreign currency sent from abroad into Korean won).


(2) Definition of Exchange and How to Exchange Money

When you exchange money, you buy or sell one currency for another. For example, you can sell Korean won for U.S. dollar. In Korea, money can be exchanged at a bank. 


        ▼ More Information: How to Exchange Money

By visiting a bank

   -  If you need to exchange money at the bank, you will need to show your identification card or passport, fill out a ‘form to exchange money’ and submit it to the bank. Most banks sometimes give favorable exchange rates to their loyal customers. So it is a good idea to exchange money at your primary bank.


By using Internet banking services

   -  You can apply online (via the Internet) for foreign currency exchange and receive the money at a pre-designated bank branch. Internet banking charges smaller fees than bank branches. After you apply online for money change, you must visit the pre-designated bank branch within a specified period of time to claim your money. Otherwise, it is automatically re-exchanged into Korean currency and refunded to your bank account. If this happens, you may incur some losses because of unfavorable changes in the exchange rate. (Note that some banks do not provide online money exchange services.)



2. Sending Money Abroad


(1) Definition of Sending Money Abroad

Remittance means sending money from your country of residence to another country. You must pay a certain fee to the financial institution such as bank for a remittance. It is much safer and faster to send a remittance to a foreign bank account via a bank.


(2) How to send money abroad


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