Getting a Credit Card

It isn't illegal for international customers to get credit cards in Korea, but nor is it a right to have a credit card. I got my credit card because the card company had a relationship with the company I was working for, yet I met a vice-president for Asia of an international company who could not get a credit card here.

When someone says “You can't have a credit card, you're foreign” you need to understand that it could mean, “I don't know and I won't check”, or it can mean “I don't think you should have a credit card because you're foreign”, or it can mean that “You can't have a credit card because you are foreign”. Asking them to check will always result in them being right and is a waste of time. If this happens it's better to change teller, branch, or bank.

The first and best place to start is your bank, particularly if you have been saving money. Even with a pattern of saving some banks will still only issue a secured credit card, where you make a term deposit and the credit card is issued with a limit of 90% of the term deposits value. This is easy and straightforward although these banks will then still charge you the highest interest rate, on cash service (cash advance) and installment purchases (where the merchant doesn't have an interest free purchase offer) even though there is no risk to the bank. It don't use these services you don't pay interest because in Korea credit cards are in fact usually charge cards. There is no interest because you must pay your card in full each month. Interest is only charged if you use the cash service, or make an installment purchase, or pay late. By the way some banks have a zero tolerance policy to late payment, if you pay late, your card will be canceled and some people have reported the card company calling their employer to recover the money. Pay on time.

If your bank says “no” it's time to go shopping. Take your ID card, and Health Insurance card (this is used to verify your employer) and go from bank to bank, and booth to booth. Be careful at this point not to give your ID card unless they are prepared to take an application for a card as multiple attempts to get credit look bad. I have personally met international people who received a credit card from Samsung Card, KB Card, KEB Card, Hyundai Card, Lotte Card, Nonghyup Bank, and Shinhan Card. Criteria do change and different people will quote different rules, so shop around. When someone says, “yes” you can apply, the next difficult part is choosing a card. The benefits are many and varied from free flights, hotel rooms, wine, airline mileage, to discounts on cups of coffee. Know how you spend your money.

Good luck in your search and please send your feedback to koreanbankingblog@gmail.com so I can keep the site up to date.