How to Send Money to Korea From the US?

Sending money internationally, particularly from the United States to South Korea, is a common financial activity driven by diverse needs. Individuals often send funds to support family members, contribute to educational expenses, or manage personal investments abroad. Businesses also engage in international transfers for commercial purposes, such as paying suppliers or managing overseas operations.

Methods for Sending Money

Several methods are available for transferring funds from the United States to South Korea, each with distinct characteristics. Traditional bank wire transfers allow for direct transfers between bank accounts, providing a widely accepted and generally secure option.

Online money transfer services represent a modern and often more convenient alternative. Companies like Remitly, Western Union, Revolut, Xoom (a PayPal service), Wise, WorldRemit, and Paysend facilitate digital transfers through their websites or mobile applications. These platforms streamline the process, often offering diverse payout options in Korea, including bank deposits.

International money orders offer another method, typically used for smaller, less frequent transfers. While not as immediate as digital options, they provide a tangible record of the transaction. Mobile payment applications, such as those provided by Xoom and Revolut, allow for transfers directly from a smartphone.

Essential Information and Documentation

Before initiating any money transfer, gathering all necessary information and documentation is important. Senders must provide their full legal name, current address, and contact details. A government-issued identification, such as a driver’s license or passport, is typically required for identity verification, along with a Social Security Number or Individual Taxpayer Identification Number (ITIN) for reporting purposes. Details regarding the source of the funds may also be requested to comply with financial regulations.

The recipient’s information is equally important and must be accurate. This includes their full legal name as it appears on their bank account, their address, and contact details. The recipient’s bank name, its address, and their specific account number are also required.

A SWIFT (Society for Worldwide Interbank Financial Telecommunication) or BIC (Bank Identifier Code) is an eight to eleven-character code that identifies the recipient’s bank and specific branch for international transfers. Providing the purpose of the transfer, such as family support, education, or business transactions, is often a mandatory field on transfer forms or online platforms. For transfers exceeding $10,000, financial institutions are required to report the transaction to the Financial Crimes Enforcement Network (FinCEN) by filing Form 104; this reporting obligation falls on the institution, not the individual sender.

Understanding Costs and Transfer Times

Exchange rates play a significant role, as providers apply a “spread” or markup to the interbank rate, which is the rate at which banks exchange currencies with each other. This difference contributes to the overall cost, making it important to compare the rates offered by various services.

Transfer fees vary widely, encompassing flat fees, percentage-based fees, and potential charges from intermediary banks. Some services may offer promotional rates or fee waivers for initial transfers. Hidden costs can also arise from unfavorable exchange rates or unexpected fees imposed by correspondent banks in the transfer chain.

Transfer limits are imposed by different services and banks, varying by daily, weekly, or monthly thresholds. For instance, some services may have a maximum transfer amount for cash pickups, such as $5,000 with Western Union, while others like Wise allow up to $1,000,000 per wire transaction. Additionally, some Korean regulations for specific “Small-Sum Overseas Remittance Business Entities” may limit individual recipients to $50,000 USD or its equivalent per year.

Processing times can range from near-instant to several business days, depending on the method chosen and the provider. Online services often offer faster transfers, sometimes within minutes or hours, especially for bank deposits. Traditional bank wires typically take one to five business days. Factors such as bank holidays, cut-off times for daily processing, and compliance checks can influence the overall delivery speed.

Executing Your Transfer

For online services, this means navigating to the platform’s website or mobile application, reviewing the transaction details, and confirming the transfer by clicking the “send” or “confirm” button. The funds are typically debited from the sender’s account at this point.

If opting for a traditional bank wire transfer, the process involves submitting a completed wire transfer request form at a bank branch or confirming the transfer through online banking portals. This may require a debit card number and PIN or other security authentication. Upon successful submission, a confirmation of the transaction is usually provided, often including a transaction ID or a tracking number, such as Western Union’s Money Transfer Control Number (MTCN).

Most reputable transfer services offer a tracking feature, allowing senders to monitor the status of their transfer in real-time. The recipient may also be notified by the service or the receiving bank once the funds are available. While transfers are generally efficient, additional processing time may occur at the receiving bank, or in cases where compliance officers need to conduct further review.