Sending Money from Japan to South Korea: A How-To Guide

Sending money from Japan to South Korea has never been easier or cheaper. We compare top services like Wise, SBI Remit, and SBJ Bank, explain the hidden fees to watch out for, and guide you through the “My Number” verification process so your family receives their Won instantly.

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Why Sending Money Across the Strait Is Easier Than You Think

Japan and South Korea are geographic neighbors, separated only by a short flight across the strait. Because of this proximity, there is a vibrant community of Korean residents living, working, and studying in Japan. Whether you are sending an allowance to a student in Seoul, supporting retired parents in Busan, or sending a gift for Chuseok or Seollal, moving money between Yen (JPY) and Won (KRW) is a frequent necessity for many expats.

In the past, this process was slow and expensive. You had to visit a physical bank branch during limited business hours, fill out complex paperwork in Japanese, and pay fees that could eat up a significant portion of your transfer. Often, the money would take days to arrive, leaving you and your recipient in limbo.

Fortunately, the financial technology (fintech) revolution has transformed this landscape. Today, you have a multitude of options ranging from traditional banks with specialized Korean services to lightning-fast digital apps that complete transfers in seconds. In this guide, we will walk you through the best methods for sending money to South Korea, help you understand the regulations, and show you how to get the best exchange rate possible.

The Hidden Costs: Exchange Rates vs. Transfer Fees

When you see an advertisement saying “Zero Transfer Fee,” you might be tempted to sign up immediately. However, in the world of remittances, “free” often comes with a catch. Banks and transfer services typically make money in two ways:

1. Upfront Transfer Fee: A fixed amount (e.g., 1,000 JPY) charged for the transaction.
2. Exchange Rate Markup: This is the invisible fee. The service takes the real market exchange rate (the “mid-market rate” you see on Google) and adds a margin to it.

For example, if the real rate is 100 JPY = 900 KRW, a bank might offer you a rate of 100 JPY = 880 KRW. On a transfer of 100,000 JPY, that difference means your family receives 20,000 KRW less than they should have.

When choosing a service, always look at the “Total Amount to be Received” rather than just the fee. This is the only number that truly matters.

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Wise: The Transparent and Tech-Savvy Choice

For many modern expats, Wise (formerly TransferWise) has become the default choice for international transfers. Its popularity stems from its commitment to transparency. Wise uses the real mid-market exchange rate and charges a small, visible fee.

Why It Works for Korea:

Wise allows you to send money directly to South Korean bank accounts. The interface is clean, easy to use, and available in English. For the recipient in Korea, the money arrives directly in their local bank account (like Shinhan, Kookmin, or Woori Bank).

One specific advantage for Korea is speed. In many cases, transfers to South Korea via Wise are instant or arrive within a few hours.

The Verification Process:

To use Wise in Japan, you must verify your identity using your smartphone. This involves taking a photo of your Residence Card (Zairyu Card) and your My Number document. Once verified, setting up a transfer takes less than a minute.

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SBI Remit: The Convenient Cash Option

If you prefer dealing with cash or want a service that integrates deeply with the Japanese convenience store network, SBI Remit is a powerful contender. SBI is highly trusted in Japan and has strong partnerships with MoneyGram and Ripple.

How It Works:

SBI Remit offers a “Remit Card.” This is a physical deposit card that is linked to a specific beneficiary in South Korea. You simply take this card to a Lawson Bank ATM or Japan Post Bank ATM, insert the card, and deposit cash. The money is automatically sent to the linked account in Korea.

Why It Is Great for Parents:

If you are not comfortable with smartphone apps, or if you want to give a Remit Card to a family member in Japan so they can send money home easily, this is the perfect solution. It removes the need to log into an app for every single transaction.

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SBJ Bank (Shinhan Bank Japan): The Local Expert

For Korean expats specifically, SBJ Bank (Shinhan Bank Japan) is often the most logical choice. Unlike other foreign banks that operate only as branches, SBJ is a fully licensed Japanese bank, which gives it unique advantages.

The “Express” Advantage:

SBJ Bank offers a service called “Express Remittance.” This allows for very fast transfers between Japan and South Korea. If you hold an account with Shinhan Bank in Korea, the integration is seamless.

Furthermore, SBJ Bank is known for offering generous fee waivers. Depending on your account status, you might get several free transfers per month. They also provide customer support in Korean, which can be a massive relief if you are struggling with complex financial terminology in Japanese.

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Utransfer and SentBe: The Korea Specialists

In recent years, several fintech companies specifically focused on the South Korean market have expanded their services. Utransfer and SentBe are two notable examples.

These services are designed specifically for the flow of money into and out of South Korea. They often offer extremely competitive exchange rates for the JPY/KRW pair, sometimes beating generalist services like Wise.

Why Consider Them:

• Specialized Support: Their support teams are experts in Korean banking regulations.
• Verification: They understand the specific ID requirements for both Japanese residents and Korean recipients.
• Partnerships: They often partner with convenience stores or local pickup locations in Korea, providing flexible receiving options.

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The “My Number” Requirement

This is the single most common hurdle for new expats in Japan. You simply cannot send money abroad without providing your “My Number” (Individual Number).

This is a strict requirement under Japanese law to prevent money laundering and tax evasion. Whether you use a bank, an app like Wise, or a service like SBI Remit, you will be asked to upload a photo of your My Number Card (the plastic card) or a Juminhyo (Residence Certificate) that lists your number.

If you have recently moved within Japan, you must ensure that the address on your My Number card has been updated at your local ward office. If the address on your ID does not match your current address, your transfer application will be rejected immediately.

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Comparison of Transfer Services

To help you decide which service fits your lifestyle, here is a quick comparison of the major options for Japan-to-Korea transfers.

Feature	Wise	SBI Remit	SBJ Bank	Traditional Bank (MUFG/SMBC)
Transfer Method	App / Online	ATM Card / App	Online / Branch	Branch / Online
Speed	Minutes to Hours	10 Min – 1 Day	Fast (Same Day)	1 – 3 Days
Exchange Rate	Mid-market (Real)	Competitive	Competitive	Bank Rate (High Markup)
Fees	Transparent %	Flat Fee	Low / Free (Conditions apply)	High (4,000+ JPY)
Best For	Tech-savvy users	Cash depositors	Heavy users / Large sums	Massive transfers

Tax Benefits: The Dependent Deduction

One of the biggest financial benefits of sending money home is often overlooked: Tax Deductions.

If you are working in Japan and paying Income Tax and Residence Tax, you can claim the Dependent Deduction (Fuyo Kojo) for relatives you support financially, even if they live in South Korea. This applies to parents, grandparents, and sometimes siblings or children.

How to Claim It:

To qualify, you must prove two things to the Japanese tax office:

1. Relationship: You need official documents (like a Korean Family Relation Certificate) showing that you are related to the recipient.
2. Remittance: You need a “Remittance Statement” (Soukin Shomeisho) showing that you actually sent money to them.

Crucial Rule: You must send money to each dependent separately. If you support both your mother and father, you cannot send one lump sum to your father and ask him to share it. You must make two separate transfers so you have a slip for each person. This paperwork can save you tens of thousands of yen in taxes every year.

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Receiving Money in South Korea: Verification

The regulatory hurdles are not just on the Japanese side. South Korea also has strict capital controls and monitoring systems.

When you send money to a Korean bank account, the recipient might need to verify the incoming funds. For smaller amounts (under $5,000 USD equivalent), the funds are usually credited automatically.

However, if you are sending a large amount, the receiving bank in Korea might call your recipient to ask for the “Source of Funds.” They may need to confirm that the money is for family support, living expenses, or a gift. It is helpful to warn your family in advance if you are sending a larger-than-usual sum.

Receiving Limits and Annual Caps

Both Japan and South Korea have limits on how much money can be moved without triggering special audits.

• Per Transaction: Many remittance apps limit a single transfer to 1 million JPY. If you need to send more, you may need to use a traditional bank wire transfer.
• Annual Limit: South Korea monitors the total amount of foreign currency received by an individual. There is a general annual limit (often around $50,000 USD equivalent) for “general remittances” before additional documentation is required by the Korean tax authorities.

If you are planning to send money to buy property in Korea (“Jeonse” or purchase), you should consult with SBJ Bank or a specialized accountant, as this falls under different capital categories.

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Using KakaoBank and Korean Fintech

In South Korea, digital banks like KakaoBank and Toss are incredibly popular. The good news is that most international remittance services from Japan (like Wise) can send money to these digital banks just as easily as they send to Shinhan or KB Kookmin.

Because these Korean digital banks are mobile-first, your recipient will often get a push notification the second the money arrives, adding a layer of convenience and reassurance for both parties.

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Safety Tips: Avoiding Underground Banking

In neighborhoods with large Korean populations, such as Shin-Okubo in Tokyo or Tsuruhashi in Osaka, you might hear about private money exchange services or “informal” brokers. These individuals might offer to swap Yen for Won at a rate that looks better than the bank, often handing over cash instantly.

My Advice: Avoid These.

Using unlicensed remittance channels is illegal in Japan (violation of the Banking Act).

• Risk: If the broker is caught, your funds could be seized as part of a money laundering investigation.
• Status: Engaging in illegal financial transactions can jeopardize your visa status or Permanent Residency application.
• Security: There is no guarantee you will get your money if the broker disappears.

Always stick to services that are licensed by the Japanese Financial Services Agency (FSA). All the services mentioned in this guide (Wise, SBI, SBJ, Seven Bank) are fully licensed and regulated.

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Step-by-Step Guide to Your First Transfer

Ready to send your first remittance? Here is a simple checklist to ensure it goes smoothly.

1. Gather Documents: Have your Zairyu Card and My Number Card ready.
2. Choose a Service: Download the Wise app or apply for an SBI Remit card online.
3. Verify Identity: Complete the e-KYC process (taking a photo of your ID and a selfie).
4. Register Recipient: Enter your family member’s name (in English letters exactly as registered at their Korean bank), their bank name, and account number.
5. Fund the Transfer: Transfer Yen from your Japanese bank account to the service, or deposit cash at an ATM.
6. Track: Watch the app for updates.
7. Save the Receipt: Download the PDF receipt for your tax return next year.

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Conclusion: Staying Connected

Sending money from Japan to South Korea is about more than just currency; it is about maintaining a connection with your roots and supporting the people you care about.

The days of expensive, slow, and stressful bank transfers are over. By utilizing modern fintech apps or specialized services like SBJ Bank, you can ensure that your hard-earned Yen converts into the maximum amount of Won.

Take some time this week to set up a verified account with one of these providers. Once the initial setup is done, sending support home will be as easy as sending a text message on KakaoTalk.

Disclaimer

This article is for general informational purposes only and does not constitute professional advice. Laws, prices and regulations vary by location and change over time. Consult a qualified professional for guidance on your specific situation.