Send Money From Korea

Looking only at the transfer fee hides the real cost — most of it sits in the gap between the mid-market rate and the rate you actually get (the FX margin). Pick a method, enter the real margin and fee, and compare the effective cost rate. This doesn't recommend any provider; check the rules in the guide and official sources below.

Remittance cost estimate

Effective cost rate

5.00%

Total cost: 50,000 ₩
Value delivered (in KRW terms): 950,000 ₩
FX margin cost: 25,000 ₩
Fixed fee: 25,000 ₩

The real cost is the visible fee PLUS the hidden FX margin. Margins differ by provider — replace them with your quote to compare.

Basis · nature

Total cost = amount × margin% + fixed fee; effective rate = total ÷ amount.

No live exchange rates or named provider fees (they move). Margin and fee are your assumptions.

The method choice only prefills representative ranges — it does not recommend or compare specific providers.

Rules (annual limits, reporting, proof) — see the guide below and your bank / Bank of Korea.

Reference estimate. The real cost is fixed by the quote (applied rate + fee) at the moment you send.

What this tool does

Sending money out of Korea costs more than the fee on the receipt. The bigger, hidden cost is usually the FX margin — the gap between the mid-market exchange rate and the rate your provider actually applies. This tool adds both together so you can see the true effective cost of a transfer and compare methods fairly. It doesn't use live rates or name providers; you enter the margin and fee, and it shows the total cost, effective rate, and value delivered. It also summarizes Korea's outbound-remittance rules so you know what documentation to expect.

Who uses this

Foreign workers sending part of their salary home each month
Comparing a bank transfer against a specialist service on true cost, not just the fee
Seeing how much a 'low fee, bad rate' option really costs on a large transfer
Understanding why small transfers cost proportionally more (fixed fee weight)
Checking what reporting or proof a larger remittance from Korea may need

How to use (3 steps)

1Pick a method — it prefills a representative margin and fixed fee that you should overwrite with real figures.
2Enter the amount you want to send, then your provider's actual FX margin (spread) and fixed fee.
3Read the total cost, the effective cost rate, and the value delivered. Change the numbers to compare options.

How the cost is measured

FX margin cost = amount × margin % Total cost = FX margin cost + fixed fee Effective rate = total cost ÷ amount Value delivered = amount − total cost (in KRW-value terms) To find a provider's real margin, compare their quoted rate to the mid-market rate (e.g. from a neutral source) on the same day: margin % = (mid − applied) ÷ mid × 100. A '0 fee' offer can still be expensive if the margin is wide.

Worked examples

₩1,000,000 via a bank

At a 2.5% margin + ₩25,000 fixed fee: FX cost ₩25,000 + fee ₩25,000 = ₩50,000 total, an effective 5.0%. Only about ₩950,000 of value reaches the recipient.

Same amount via a specialist

At a 0.7% margin + ₩5,000 fee: ₩7,000 + ₩5,000 = ₩12,000, an effective 1.2%. The gap is almost entirely the hidden margin, not the visible fee — which is why comparing fees alone is misleading.

Frequently asked questions

What is the FX margin (spread)?

It's the difference between the mid-market rate (the 'real' rate you see on a neutral source) and the rate your provider gives you. Providers earn on this gap, so a transfer advertised as 'no fee' can still be costly. Always compare the applied rate to the mid-market rate.

Are there limits on sending money out of Korea?

Yes. Under the Foreign Exchange Transactions rules, banks apply per-transaction and annual thresholds above which extra documentation and reporting to the Bank of Korea / tax authority apply. The exact figures change over time — confirm the current thresholds with your bank before a large transfer.

As a foreign worker, can I send my salary home?

Generally yes, but banks typically ask for proof — your employment, income, and that tax was paid (e.g. withholding receipt). Requirements vary by bank and amount; ask your bank what documents they need for salary remittances.

Does sending or receiving money trigger tax?

The transfer itself isn't income, but large gifts can be subject to gift tax, and cross-border transfers may be reported to the National Tax Service. If money is a gift or business income rather than your own funds moving, check the tax treatment with a professional.

Why does a small transfer cost a higher percentage?

Because the fixed fee is a bigger share of a small amount. ₩5,000 on ₩200,000 is 2.5% before any margin; the same fee on ₩5,000,000 is 0.1%. For small, frequent transfers the fixed fee matters most; for large ones, the margin dominates.

Cautions

•Reference and educational tool — not financial advice and not a live quote. The real cost is set by the rate and fee at the moment you send.
•No live exchange rates or specific provider fees are used; margin and fee are assumptions you enter.
•Method choice only prefills representative ranges — it does not recommend or rank any provider.
•Remittance limits, reporting thresholds, and required proof change over time — confirm current rules with your bank and the Bank of Korea.
•Large gifts or cross-border transfers may have tax and reporting consequences — consult a professional.

Last reviewed: 2026-07-02