Parking Account (파킹통장) in Korea: 2025 Foreigner's Money Hack

Have you ever wondered if the cash in your Korean bank account could be earning more? You want the freedom to use your money anytime, but a regular checking account offers almost no interest. If this sounds familiar, a Parking Account (파킹통장) is the financial tool you've been waiting for.

Just like its name, a parking account is a place to "park" your money—safely and temporarily. It combines the flexibility of a normal account with the high-interest benefits of a savings account, allowing you to earn more on your emergency funds or short-term savings.

This guide will walk you through everything a foreign resident needs to know about parking accounts in Korea: what they are, how to open one, which accounts offer the best rates in 2025, and how to use them to manage your money smartly.

Let's make your money work for you.

What is a Korean Parking Account (파킹통장)?

A Parking Account (파킹통장) is a popular financial product in Korea. It's a type of savings account that lets you "park" your idle cash for a short time, earning a high interest rate while keeping your money accessible. It's the perfect mix of flexibility and profitability.

Key Features

• High Interest: Parking accounts offer a significantly higher interest rate than a regular checking account.

• Flexible Access: You can deposit and withdraw money freely at any time without penalty.

• Daily Interest: Interest is calculated on a daily basis, so you start earning from day one.

Parking Account vs. Regular Bank Account

Here’s a quick look at the main difference between the two.

Can Foreigners Open a Korean Parking Account?

Yes, you can! Foreign residents with a valid Alien Registration Card (ARC) can absolutely open a parking account in Korea. The process is similar to opening any other bank account, but knowing a few key things can save you a lot of time and frustration.

What You'll Need to Open an Account

Before you go to the bank, make sure you have these essential documents ready:

• Alien Registration Card (ARC) / 외국인등록증: This is your primary form of ID. A passport alone is not enough for most accounts.

• A Korean mobile phone number in your name: Required for identity verification, especially for mobile banking.

• Proof of Residency / 거주지 증명서: Some banks may require a document confirming your address, such as an employment contract or a Certificate of Entry and Exit (출입국사실증명서).

How to Open an Account

You have two main options for opening your account:

• 1. In-person at a Bank Branch: This is the most reliable method, especially if you're new to Korea. Staff can guide you through the process, and larger branches in major cities often have English-speaking staff.

• 2. Via a Mobile Banking App: Many banks and digital-first apps like Toss Bank allow you to open an account without visiting a branch. You'll need to verify your identity by taking a picture of your ARC and a small bank transfer from another account.

Important Warning: The “20-Day Rule”

This rule is often confusing for everyone, including Koreans. To prevent financial crimes, financial institutions may restrict how often you can open new accounts.

The rule typically applies to regular checking accounts (수시입출금 계좌). Many banks will not allow you to open a second checking account at their institution within 20 business days of opening your first one. Since a parking account is a type of checking account, it falls under this rule.

My Tip: Always check with the bank directly before you go. The specific policies can vary depending on the bank and whether you are a new or existing customer.

Top Parking Accounts for Foreigners in 2025 (Rate Comparison)

Don't just chase the highest interest rate. Choosing the right parking account means looking at the rate, its conditions, and how much money it applies to. A great rate on a small amount of money isn't always the best deal.

How to Choose the Right Parking Account

Ask yourself these questions before you decide:

• What is my deposit amount? Some accounts offer a high rate only for a small amount (e.g., up to 500,000 KRW). If you have more savings, a slightly lower rate on a higher limit might be better.

• Are there special conditions? Some banks offer a bonus rate if you use their debit card or set up a direct deposit.

• Is it foreigner-friendly? A mobile app with English support can make a huge difference, especially for non-face-to-face account opening.

Comparison Table: Top 5 Parking Accounts for Foreigners

Here's a quick look at some of the best parking accounts available for foreigners as of September 22, 2025.

Note: The interest rates and conditions listed above are subject to change. Always check the bank's official website or app for the most up-to-date information before opening an account.

Important: The Catch Behind High Interest Rates

It's tempting to simply pick the account with the highest interest rate, but be careful! As our table shows, some banks offer a very high headline rate but only for a small portion of your money. For example, a bank might offer a 7% rate on the first 500,000 KRW, but the rate drops to 1.0% for anything above that amount.

My Advice: Don't just look at the highest number. Instead, consider your total deposit amount and choose an account that offers a good rate on the full amount you plan to "park." A bank with a 3.5% rate on your entire 50 million KRW is far better than one with a 5% rate on just the first 1 million KRW.

Understanding Taxes and Interest on Your Savings

Earning extra money from your parking account is great, but it’s important to understand how taxes affect your actual earnings. In Korea, interest earned from bank accounts is considered a form of income and is subject to a withholding tax.

How Interest Tax is Calculated for Foreigners

For most foreign residents, interest income from a Korean bank account is subject to a flat tax rate. As of 2025, the total tax rate is 15.4%, which is a combination of:

• 14% Income Tax (소득세)

• 1.4% Local Income Tax (지방소득세)

This tax is automatically deducted by the bank before the interest is paid out to your account. This is called "withholding tax" (원천징수), so you don't need to worry about reporting this income yourself during tax season.

Calculating Your Real Interest: A Practical Example

Let's use a real-life example to see how much money you'll actually receive. Imagine you have a parking account with a 4.0% annual interest rate and you deposit 5 million KRW for one month (30 days).

• Gross Interest (Before Tax):

  • 5,000,000 KRW × (4.0% ÷ 365) × 30 days = 16,438 KRW

• Tax Deduction (15.4%):

  • 16,438 KRW × 15.4% = 2,532 KRW

• Net Interest (After Tax):

  • 16,438 KRW - 2,532 KRW = 13,906 KRW

As you can see, the final amount you receive is less than the gross interest. Always remember to consider the 15.4% tax rate when comparing different products and calculating your potential earnings.

Parking Account vs. CMA Account: Which is Right for You?

When you start looking for high-interest savings products, you'll likely come across CMA accounts. Both are great for short-term savings, but they have a key difference in how your money is protected.

What is a CMA Account?

A CMA (Cash Management Account) is a type of account offered by a brokerage firm (증권사, jeung-gwon-sa). Your money is automatically invested in safe, short-term financial products, which can earn you a return similar to or slightly higher than a parking account.

Safety First: The Key Difference