Living in Korea: Health Insurance, Tax, and Banking for Visa Holders

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.

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.

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.

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.