Using ATM in South Korea: Fees and Trusted Banks 2024

In this guide, we’ll cover everything you need to know about using ATM in South Korea, including a detailed breakdown of fees and insights into the most reliable banks. When traveling to South Korea, one of the essential tasks for many visitors is accessing local currency. With the advanced infrastructure in South Korea, withdrawing cash from ATMs is a straightforward process, but understanding the associated fees and knowing which banks to trust can save you both time and money.

---

---

Why Use ATM in South Korea?

Using ATM in South Korea is a convenient way to withdraw cash in the local currency (Korean Won, KRW) without having to carry large amounts of cash or constantly find currency exchange offices. ATMs are widespread, and you’ll find them in airports, hotels, convenience stores, and on virtually every street corner. Additionally, many ATMs offer English language options, making the process even easier for international visitors. Thus, using ATM in South Korea is not challenging at all.

Types of ATMs in South Korea

There are two main types of ATMs in South Korea: those operated by banks and those found in convenience stores and other non-bank locations. Bank-operated ATMs generally offer lower fees and higher withdrawal limits compared to non-bank ATMs.

Bank ATMs

Bank ATMs are the most trusted and widely used by both locals and tourists. They are typically located inside or outside bank branches, shopping malls, and major transport hubs. Some of the most well-known banks in South Korea with extensive ATM networks include:

• Kookmin Bank (KB)
• Woori Bank
• Shinhan Bank
• KEB Hana Bank

Convenience Store ATMs

ATMs in convenience stores like 7-Eleven, CU, and GS25 are also prevalent. While they are convenient and often available 24/7, they may come with higher transaction fees and lower withdrawal limits compared to bank-operated ATMs.

Most Trusted Banks in South Korea

When using ATM in South Korea, it’s reassuring to know which banks are the most reliable and trusted. Here’s a brief overview of the top banks in the country:

Kookmin Bank (KB)

Kookmin Bank is one of the largest banks in South Korea, known for its extensive network of ATMs and branches. KB offers a user-friendly ATM interface with English language options, making it a popular choice among tourists.

Woori Bank

Woori Bank is another major bank with a strong presence throughout South Korea. Their ATMs are reliable and widely accessible, offering competitive fees for international withdrawals.

Shinhan Bank

Shinhan Bank is renowned for its customer service and extensive ATM network. Their ATMs are equipped with English language options and offer reasonable fees for international transactions.

KEB Hana Bank

KEB Hana Bank is known for its focus on international services, making it a great option for tourists and expatriates. Their ATMs are user-friendly and widely available.

Transaction Fees: A Detailed Breakdown

Understanding the fees associated with using ATM in South Korea is crucial for managing your finances efficiently. The total transaction fee is generally composed of three parts:

1. Foreign ATM Fee: Charged by the Korean bank operating the ATM.
2. Currency Conversion Fee: Charged by your home bank for converting the withdrawn amount into your home currency.
3. International Transaction Fee: Charged by your home bank for processing the international transaction.
4. Card Brand Fee: Charged by the card brand such as Visa or Master.

These fees varies depending on the card you use for the transactions. Some cards exempt all fees that you are only charged solely based on the exchange rate while other cards adds some or all of the fees above.

For testing purpose, I used SoFi Debit Card, with does not charge any additional fees. I strongly suggest NOT TO USE Credit Cards for such transactions unless you are aware of the terms and conditions. You can sign up for this card in the link below.

Foreign ATM Fees

The fee charged by the Korean bank can vary depending on the bank and the type of ATM. On average, this fee ranges from 3,000 to 5,000 KRW per transaction. Here’s a brief overview of fees charged by some of the major banks:

---

• Kookmin Bank (KB): 3,500 KRW
• Woori Bank: 3,600 KRW
• Shinhan Bank: 3,600 KRW
• KEB Hana Bank: 3,700 KRW

3,500 KRW, by current exchange rate of 1380 KRW/USD, is a little shy of 3 US Dollar.

---

Best ATM: KB Bank ATM

Of the four most trusted bank ATMs, KB bank stands as one with the lowest transaction fee. However, the difference is only by 100~200 KRW, which is around 0.1 USD. I would suggest to use any of the ATM that is most accessible in your traveling area.

Currency Conversion Fees

Your home bank will typically charge a fee for converting the withdrawn amount from KRW to your home currency. This fee can range from 1% to 3% of the transaction amount. It’s advisable to check with your bank before traveling to understand their specific rates.

International Transaction Fees

In addition to the currency conversion fee, when using ATM in South Korea, your home bank might also charge an international transaction fee, which can range from 1% to 3% of the transaction amount. This fee covers the cost of processing an overseas transaction.

Example Calculation

Let’s say you withdraw 200,000 KRW from a Shinhan Bank ATM. The total fees could be calculated as follows:

• Foreign ATM Fee: 3,600 KRW
• Currency Conversion Fee (assuming 2%): 4,000 KRW (2% of 200,000 KRW)
• International Transaction Fee (assuming 1.5%): 3,000 KRW (1.5% of 200,000 KRW)

Total Fees: 3,600 KRW + 4,000 KRW + 3,000 KRW = 10,600 KRW

ATMs in Convenience Stores

With the US Debit Card I was trying with, many of the ATMs at convenience stores rejected withdrawal. To this end, I would suggest to look for a bank ATM instead as they are usually found with no hardness.

One convenience branch that I found working with my US debit card was Emart24, which is also a commonly found convenience store. The fee is higher than bank ATMs, so again, I would suggest to find bank ATMs instead unless you have no other option. The fee was 4,800 KRW, which is slightly over $3 USD.

Tips for Using ATM in South Korea

Use Bank ATMs

To minimize fees, it’s generally better to use ATMs operated by major banks rather than those in convenience stores. Bank ATMs usually offer better exchange rates and lower fees.

Do Not Use Credit Cards

When you use a credit card to withdraw cash, especially in different countries, it counts as a ‘cash advance’ transaction, and it may be subject to be charged additional interest rate, which is very high in general. For withdrawing cash from ATMs, it is generally the best to use debit cards to avoid such costs.

Withdraw Larger Amounts

Since many of the fees are fixed per transaction, withdrawing larger amounts less frequently can help reduce the overall cost of ATM fees.

Check for Partnerships

Some international banks have partnerships with Korean banks that allow for lower or waived fees. For example, Citibank customers can often find Citibank ATMs in South Korea, which may offer more favorable terms.

Enable International Transactions

Before leaving for South Korea, ensure that your debit or credit card is enabled for international transactions. This can often be done through your bank’s online banking platform or by calling customer service.

Be Aware of Limits

Using ATM in South Korea may have daily withdrawal limits, often around 1,000,000 KRW, which is around $7,500 in US Dollar. Your home bank may also impose its own limits on international withdrawals, so it’s important to be aware of both.

Conclusion

Using ATM in South Korea is a convenient and efficient way to access cash during your travels. By understanding the fee structure and knowing which banks to trust, you can minimize costs and make your trip more enjoyable. Always remember to use bank-operated ATMs, withdraw larger amounts to reduce transaction frequency, and check with your home bank about any potential partnerships or fee waivers. With these tips in mind, you’ll be well-prepared to navigate the ATM landscape in South Korea.