Dec 12, 2022 10 min read lang-en

Comparing International Money Transfer Services: What’s the Best Service to Transfer Money to South Korea?

Sending money to a foreign country is an essential skill needed when studying or living abroad, or when payments need to be made to a company or school located abroad.

Unlike domestic funds transfers within Japan, not many know how international money transfers actually work.

In this article, we will discuss the mechanism of international money transfer, its methods, and recommended means for transferring money from Japan to South Korea, while comparing various services.

Things to Know When Sending Money to South Korea

International money transfer refers to the act of sending money from a Japanese bank account to an overseas bank account. While some people may think of taking cash with them when they travel to South Korea due to its proximity to Japan, it is not recommended as there is a high risk of theft. Instead, you can send money abroad using international money transfer services.

Here are some situations where you may need to transfer money from Japan to South Korea:

Studying abroad in South Korea
Paying tuition from Japan to a language school in South Korea
Moving to South Korea for work, or sending money to a family member working in South Korea
Paying for products from South Korean companies
Paying an advance deposit for receiving treatment at a cosmetic clinic
Sending advance payment for a K-pop concert ticket

When sending money to South Korea, it is important to know about the international money transfer system and how it works.

There are two means of international transfers; banks and international money transfer services.

Banks vary in type, and includes both major banks and online banks. For international money transfer services, there is a large number of companies on the rise, with Paypal, Wise, Exparo, and Curfex being a few that provide money transfer services to South Korea.

The basic steps for a money transfer are as follows:

The user decides on the amount to be transferred at a Japanese financial institution and goes through the procedures
The financial institution exchanges the money into the local currency of the destination country
If the financial institution is a bank, the transfer is processed through an intermediary bank before being sent to the receiving bank
The user receives the money from the designated receiving bank account

Note that the time required to complete the procedures differs between banks and international money transfer services.

Bank transfers to South Korea takes about one week from the time of request to the completion of the transfer, while money transfer services can often complete it in just one to two days.

Types of Fees Charged for Money Transfers to South Korea

So what are the fees incurred when sending money to South Korea?

The type of fees and amount will vary depending on whether you use a bank or an international money transfer service.

Banks

Transfer fee: Fee charged by the Japanese bank at the time of transfer
Receiving fee: Fee charged by the South Korean bank upon receipt
Intermediary bank fee: Fee charged by the intermediary bank
Foreign exchange rate: Commission incurred when exchanging currency using the bank's exchange rate

International money transfer services

Transfer fee: Fee charged when sending money through an international money transfer service
Foreign exchange rates (hidden fees) may be incurred depending on the service

At a glance, it is clear that bank transfers to South Korea are relayed by many institutions, which in turn can incur many types of fees.

On the other hand, money transfer services can complete a transfer with a single transfer fee.

	Banks	International money transfer services
Transfer fee	Required	Required
Receiving fee	Required	Not required
Intermediary bank fee	Required	Not required
Foreign exchange rate	Required	Depends on the service
Duration of completion	5-7 days	1-2 days

Note: Commissions may be hidden in the exchange rate

It is important to note that in some cases, commissions are hidden in the exchange rate.

Banks and international money transfer services offer different exchange rates. Despite claiming zero fees, some money transfer services take advantage of the ever-changing exchange rate and charge hidden commissions by changing the amount accordingly.

To avoid losing money due to these hidden fees, we recommend that you check both the exchange rate commission and transfer fee to make sure there are no hidden fees.

A good sign is if the service uses the mid-market rate, which is an intermediate rate of buy and sell prices, rather than the bank or company's own rate. In these cases, there is no need to worry about being overcharged.

As mentioned earlier, we recommend using an international money transfer service because the fees are lower and the procedure itself can be completed quickly.

In this section, we will look at some recommended international money transfer services that can be used to send money from Japan to South Korea.

International Money Transfer Services from Japan to South Korea: Paypal

Paypal is a service that allows online payments at more than 2,400 commercial stores worldwide, as well as money transfers between individuals. It also offers an international money transfer service spanning 190 countries in 23 currencies. It is an easy option for those who already utilize the service for online payments since they can use the same app.

Fees for Money Transfers to South Korea

Paypal is one of the most popular money transfer services adopted by many commercial establishments, making it widely used by people around the world.

It can be an easy starting option for those who already use the service, even if they have no experience in international money transfers.

Unfortunately, Paypal currently does not support international money transfers to South Korea.

While many other countries allow money transfers via Paypal, money transfers to South Korea are not supported as of 2022. If you want to send money to South Korea, you cannot use Paypal.

It is common for users to assume that a global service like Paypal will offer money transfers to South Korea, so it is important to check in advance whether the service is supported in your destination country.

See: https://developer.paypal.com/api/rest/reference/currency-codes/

International Money Transfer Services from Japan to South Korea: Wise

Wise is an international money transfer service based in the UK. Its domestic money transfer service allows users to send money quickly and at a low fee. It also supports money exchange into 53 currencies and transfers to 80 countries.

Another advantage of Wise is its app, which allows users to complete transfers on a smartphone without having to use a computer.

Fees for Money Transfers to South Korea

Wise charges a flat fee of 192 yen and 1.03% of the amount that's converted as a transfer commission when transferring money to South Korea.

Since its official website clearly states that they do not charge any hidden fees, there is no need to worry about extra fees.

Exchange Rate for transfers to South Korea

Wise uses the mid-market rate and clearly states that the transactions are at a fair rate.

Duration of Completion

Transactions between major currencies can be handled typically in the same day to one business day.

International Money Transfer Services from Japan to South Korea: Exparo

Exparo is an international money transfer service located in South Korea that specializes in money transfers to South Korea.

Many users find this service reliable as they can use a South Korean company to send money to South Korea.

Fees for Money Transfers to South Korea

The transfer fee is set at 2,500 yen per transfer of 100,000 yen or less, and 3,500 yen for transfers of 100,000 yen to 1,000,000 yen.

Exchange Rate for Transfers to South Korea

Since Exparo uses its own exchange rate, there is a possibility that you will be charged an additional fee. You may want to check in advance how much the total amount will be when the foreign exchange rate and transfer fee are combined.

Duration of Completion

With Exparo, a transaction can be handled typically within one day, though it can take two to four days until money is received on the other end.

International Money Transfer Services from Japan to South Korea: oneremit

oneremit is an international money transfer service operated by C&B Corporation, also known as Hana Money Transfer. You can send money to South Korea, Vietnam, Nepal, and the Philippines.

Fees for Money Transfers to South Korea

The transfer fee is 500 yen for transfers of 50,000 yen or less, and 1,000 yen for those of 50,000 yen to 1,000,000 yen.

Exchange Rate for Transfers to South Korea

oneremit has their own exchange rates and tops 0.05 yen to 0.5 yen above the KEB Hana Bank South Korea exchange rate at the time of transaction. You may want to check in advance how much the total amount will be when the foreign exchange rate and transfer fee are combined.

Duration of Completion

Transfers are usually handled on the day of request. The receipt in South Korea can be made on the same day, while in other countries, it can be made on the following day or later.

International Money Transfer Services from Japan to South Korea: LINEPay

LINEPay is operated by LINE, the most popular communication application in Japan. It does not have an established international money transfer service, but its foreign currency exchange service allows money transfers between individuals.

Fees for Money Transfers to South Korea

LINEPay allows users to send money freely to other users as long as they both have the app, with a fee of 176 yen for a smartphone transfer to a personal bank account.

LINE Pay transfer method

Exchange Rate for Transfers to South Korea

The exchange rate to South Korean Won is not based on the mid-market rate, but is multiplied by 3% of the amount exchanged.

It is advised to check in advance how much the total cost will be with the exchange rate added.

Duration of Completion

The transactions with LINEPay are estimated to take 3 to 5 days from request to receipt.

International Money Transfer Services from Japan to South Korea: Curfex

Curfex is an international money transfer service that allows money transfers to 46 countries, mainly South Korea and the United States. It is approved by the Financial Services Agency and is highly reliable, with an established reputation for low fees and quick transfers.

In addition, because it specializes in international money transfers, the registration and transfer processes are simple and easy, making it suitable for beginners.

Fees for Money Transfers to South Korea

The transfer fee is set at a flat rate of 1%. It is not affected by the transferring amount or exchange rate, so there is no need to worry about paying an unexpected extra amount.

Exchange Rate for Transfers to South Korea (Mid-Market Rate)

Since it uses the mid-market rate for its exchange rates, there is no need to worry about paying additional fees. This means no foreign exchange rate is charged when transferring money with Curfex.

Duration of Completion

Transactions are typically handled on the day of request, and it takes about a day to be received, which is quicker than other services.

Summary – Comparison of Money Transfer Services to South Korea

Finally, the table below shows a summary of the services we compared in this article.

	Curfex	Wise	Exparo	oneremit	LINEPay
Transfer fee	0% commission for the first transfer	flat fee of 192 yen + 1.03% of the amount that's converted	2,500 yen for transfers of 100,000 yen or less 3,500 yen for transfers from 100,000 yen to 1,000,000 yen	500 yen for transfers of 50,000 yen or less 1,000 yen for transfers from 50,000 yen to 1,000,000 yen	176 yen (When sending money from a smartphone to a bank account)
Foreign Exchange Rate	0 yen	0 yen	Depends on Exparo’s internal rate	Depends on the rate, charges an additional 0.05 to 0.5 yen	3% of the exchanged amount
Receiving Amount per Transfer of 100,000 yen	970,313 KRW	960,657 KRW	934,420 KRW	950,617 KRW	Unknown (International bank receipt unavailable)

Source:

Curfex: Curfex
Paypal: Usage Fees｜PayPal (PayPal) for individuals
Wise: Wise Fees for Sending Money, Wise Fees & Pricing: Only Pay for What You Use
exparo: List of fees and service charges|Information
oneremit: We will send you our sincere appreciation for your business. Hana transfer■ C&B Inc.
LINEPay: LINE Pay money transfer method

Curfex is the Best Service for Money Transfers to South Korea

When sending money from Japan to South Korea, we recommend using an international money transfer service rather than a bank. Curfex and Wise use the mid-market rate and have no hidden fees, which allows users to keep the cost low. Curfex, in particular, has a very low transfer fee of 1%, making it the most recommended international money transfer service.

In addition to having official approval from the FSA, it allows users to send money quickly at a low cost, usually within one to two days.

At our money transfer service, we pride ourselves on providing the best customer service in the industry.

Our commitment to delivering exceptional service sets us apart from the competition and ensures that our customers have a positive experience every time they use our service. Whether you have a question about fees, exchange rates, or anything else related to your money transfer, our team is here to help. We are dedicated to making your money transfer process as smooth and stress-free as possible, and we are always happy to assist with any concerns or issues you may have. So if you're looking for a reliable and customer-focused money transfer service, look no further than us!