Living in Korea: Health Insurance, Tax, and Banking for Visa Holders
Getting your visa is just the beginning. Living in Korea as a registered foreign resident involves navigating health insurance, income tax, banking, and a few bureaucratic steps that are easy to miss. This guide covers the practical side of settling in — the things your visa approval letter doesn't tell you.
Korean National Health Insurance (건강보험) for foreigners
All foreigners who have been in Korea for 6 months or more (or who are enrolled in a Korean workplace) must enroll in Korea's National Health Insurance Service (NHIS / 국민건강보험공단). If you are employed, your employer enrolls you automatically and splits the premium with you (roughly 7% of salary each). If you are self-employed, a student, or between jobs, you pay the entire premium yourself — typically ₩50,000–₩150,000/month depending on your income. NHIS covers 60–80% of most medical costs at registered clinics and hospitals. You will receive an insurance card (건강보험증); present it at any registered medical facility.
Income tax for foreigners
Foreigners employed in Korea pay Korean income tax. The progressive tax rate ranges from 6% (under ₩12M) to 45% (over ₩1B). Your employer withholds monthly and makes an annual year-end settlement (연말정산) in January. If you have foreign income or your employer does not do year-end settlement, you must file an individual return by May 31 each year at the National Tax Service (홈택스, hometax.go.kr). Korea has tax treaties with many countries to avoid double taxation — check if your home country has a treaty with Korea. Foreigners (non-permanent residents) who have stayed in Korea less than 5 years can opt for a 19% flat tax on earned income instead of the progressive rate, which is often advantageous for high earners.
Opening a Korean bank account
To open a basic bank account you need your ARC (외국인등록증), passport, and a Korean phone number. The easiest options for foreigners are: KEB Hana Bank and Shinhan Bank (both have English-speaking staff at major branches and English apps), Kakao Bank and K-Bank (fully mobile, English app available, open online after ARC registration, no branch visit needed). You will need a Korean bank account to receive your salary, pay rent, and use most local services. Some banks require a local phone number — get a SIM card at the airport and register it with your ARC on Day 1.
Registering your address
After registering at immigration, you must also register your address (체류지 신고) within 15 days of moving into a new place. This is done at the local district office (주민센터) or the immigration office. Failure to register is technically a violation and can cause issues at visa renewals. Bring your lease contract (전세/월세 계약서), ARC, and passport.
Tips from immigration specialists
- Get your ARC first — almost everything else (bank account, SIM card, health insurance) depends on having it. The ARC is mailed after your registration appointment, which takes about 2 weeks.
- For the first 6 months before mandatory NHIS enrollment, buy private travel insurance. NHIS medical costs without insurance can be 3–5× higher.
- The 19% flat tax option for foreigners must be elected in the first year it applies — you cannot retroactively choose it. Ask your employer's HR or an accountant in your first month.
- If you send money home regularly, open accounts at a bank with low international wire fees. KEB Hana and Shinhan both have competitive overseas remittance rates and apps in English.
- Korea's pension system (국민연금) also covers most registered foreigners. Your employer withholds roughly 4.5% of salary; if you leave Korea permanently, you can claim a lump-sum refund of your contributions.
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Find a SpecialistFrequently asked questions
Do I pay Korean taxes if I also pay taxes in my home country?
If Korea has a tax treaty with your home country (the US, UK, Germany, Japan, Australia, Canada, and most OECD countries all have treaties), you generally won't be double-taxed. The treaty determines which country has primary taxation rights. Report your Korean income to your home country as required by your local law, and claim the foreign tax credit or exemption.
What is the alien registration tax exemption certificate?
Some foreigners on certain visa types (E-1, E-3, E-7 in specific occupations) may qualify for a tax exemption or reduced withholding under their visa category or a bilateral agreement. Ask your HR department whether you qualify. This is separate from the standard progressive vs. flat-rate choice.
Can I use Korean health insurance at any hospital?
You can use NHIS at any clinic or hospital with a 건강보험 요양기관 registration (most do). Primary care clinics (의원) cost ₩2,000–₩5,000 co-pay after insurance. Emergency rooms (응급실) are more expensive. For serious conditions, get a referral to a general hospital (종합병원) rather than going directly — the co-pay is lower with a referral.
What happens to my health insurance if I leave my job?
You have a 2-month grace period after employment ends to continue your workplace health insurance (임의계속가입). After that, you must switch to the self-employed subscriber plan and pay the full premium yourself. During job changes, ensure there is no gap — even a 1-month gap means you pay out-of-pocket at full price.