Sending business payments from the US to South Korea
A US company pays a supplier or subsidiary in South Korea by SWIFT wire, usually in US dollars, directly to the supplier's own account at a Korean foreign exchange bank. Under Korea's Foreign Exchange Transactions Act, ordinary export, import and service payments need no report, but third-party payments and payments that bypass a foreign exchange bank must be reported, so pay the invoicing company directly. This guide covers the details to collect, the rules, rails, documents and fees.
- The Bank of Korea states that current transactions, meaning export, import and service transactions, do not require reporting under the Foreign Exchange Transactions Act.
- Payments made by netting, over excessive periods, through third parties or bypassing foreign exchange banks are abnormal methods that must be reported under Article 16 of the Act.
- Payments to or from parties subject to financial sanctions need permission from the Governor of the Bank of Korea.
- Nonresidents may settle current transactions with Korean residents in won through nonresident free won accounts, according to the Bank of Korea.
- BOK-Wire+, the Bank of Korea's real-time gross settlement system, has run since December 1994 and was renamed in April 2009 when a hybrid settlement feature was added.
Details to collect from your recipient in South Korea
Ask the supplier for the details of the account that receives US dollars from abroad, in writing, from its bank's remittance instructions or its invoice. Korean companies often hold a won account and a separate foreign currency account at the same bank. SWIFT is the network banks use for cross-border payments, and each bank on it has an 8 or 11 character SWIFT code.
| Detail | What to ask for | Why it matters |
|---|---|---|
| Beneficiary name | The company's registered English name, exactly as on the account | A mismatch causes queries along the chain |
| Beneficiary address | Registered address in Korea | Required on SWIFT wires |
| Account number and currency | The foreign currency account for dollars, or the won account | A dollar wire to a won account is converted by the bank |
| Bank name, branch and SWIFT code | 8 or 11 characters, from the supplier's bank | Routes the wire to the right bank |
| Intermediary bank | The US correspondent the bank names for dollars, if any | Some US banks ask for it |
| Business registration number | From the supplier's invoice | Lets you match the account to the invoicing company |
| Reference | Invoice or contract number | Lets the bank and the supplier match the receipt |
Field list compiled by the Helm Editorial Team. As published on 29 October 2026.
USD or won: what Korea's rules mean for your payment
Korea's Foreign Exchange Transactions Act, or FETA, regulates the payment and receipt of foreign exchange, supported by a presidential decree and regulations issued by the Minister of Strategy and Finance. For a US buyer, the useful point is the line it draws between ordinary trade payments, which need no report, and unusual ways of paying, which do. The won has floated freely since December 1997, and each foreign exchange bank sets its own customer rates. The US dollar to won page covers the currency.
| Rule | What it says | What it means for your payment |
|---|---|---|
| Trade and service payments | Current transactions (export, import and services) do not require reporting under FETA | A direct payment for goods or services goes through without a report |
| Abnormal methods of payment | Netting, payments over excessive periods, third-party payments and payments bypassing foreign exchange banks must be reported (Article 16) | Pay the supplier directly, from your own company, through a bank |
| Sanctioned parties | Payments to or from those subject to financial sanctions need the Bank of Korea Governor's permission | Screen the supplier before paying |
| Paying in won | Nonresidents may settle current transactions in won through nonresident free won accounts | A won invoice is possible; your provider converts and pays |
| Exchange rate | Free-floating since December 1997; customer rates set by each bank | A won invoice carries currency risk for you |
Sources: Bank of Korea, Payments and Transactions; Bank of Korea, Internationalization of the Korean Won; Bank of Korea, Exchange Rate System. As published on 29 October 2026.
The third-party rule matters most in practice. If an agent, a sister company or a director pays the supplier for you, or the supplier asks you to pay another company, the payment becomes one the Act wants reported, and the supplier's bank may hold it. Keep the payer and the payee the same as the parties on the contract.
Rails and arrival times: SWIFT, BOK-Wire+ and KFTC
A payment from a US account reaches Korea by SWIFT, and the dollars settle in the United States on Fedwire, whose business day runs from 9:00 p.m. ET the previous evening to 7:00 p.m. ET on weekdays, with a 6:45 p.m. ET cut-off for customer transfers. Seoul is 13 hours ahead of New York in the US summer and 14 hours ahead in the US winter. Inside Korea, large-value payments settle on BOK-Wire+, and most retail transfers run on systems operated by the Korea Financial Telecommunications and Clearings Institute (KFTC).
| Route | What the recipient receives | Timing, as published | Notes |
|---|---|---|---|
| SWIFT wire in USD | US dollars in the supplier's foreign currency account | Swift reported in August 2023 that 89% of payments on its network reached the recipient's bank within an hour; crediting follows on a Korean business day | Standard route for dollar invoices |
| SWIFT wire to a won account | Won, converted by the bank | Credited on a Korean business day | The bank sets its own customer rate |
| Won payout via a nonresident free won account | Won | Set by the provider and the receiving bank | Used to settle current transactions in won |
| Interbank Funds Transfer System (KFTC) | Won between Korean banks | Retail transfer system designated by the Bank of Korea | The domestic leg of a local won payout |
Sources: Bank of Korea, Payment and Settlement Systems in Korea; Bank of Korea, Internationalization of the Korean Won; Federal Reserve Financial Services, Fedwire operating hours; Swift, 22 August 2023. As published on 29 October 2026.
Documents, screening and why payments to Korea are held
A Korean foreign exchange bank checks what each receipt is for before crediting it. For a trade payment, that is the invoice or contract; for a payment to a subsidiary, the intercompany agreement. A payment from someone other than the buyer on the contract, or one that settles several invoices net of credits, is the kind FETA treats as an abnormal method, so expect questions if you pay that way.
On the US side, sanctions screening applies to every payment: OFAC states that all US persons, including US-incorporated entities and their foreign branches, must comply with its sanctions, so check the payee and its bank against OFAC's lists (OFAC FAQ 11).
| Problem | What happens | How to prevent it |
|---|---|---|
| Paid by an agent or a sister company | Third-party payment that must be reported; the bank may hold it | Pay from the company on the contract |
| Invoices netted against credits | Netting is an abnormal method that must be reported | Pay each invoice in full and settle credits separately |
| Dollars sent to the won account | Converted at the bank's customer rate | Ask for the foreign currency account number |
| Name differs from the account | Queried or returned | Copy the name from the bank's instructions |
| Sent on a US Friday afternoon | Credited the next Korean business day | Send early in the US week |
| Wire sent as SHA | Arrives short of the invoice | Use OUR when the full amount must arrive |
Sources: Bank of Korea, Payments and Transactions; Helm Editorial Team. As published on 29 October 2026.
Costs: SHA, OUR and Helm's fees for payments to Korea
A wire to Korea can carry your provider's fee, deductions by intermediary banks and the Korean bank's charge for crediting it. Under SHA, intermediary and receiving fees come out of the amount; under OUR, you pay them and the invoice is paid in full. Our guides to OUR, SHA and BEN charges and international wire timing explain the trade-off.
From a Helm account you can send international payments by SWIFT and by local rails in the recipient's currency where available, confirmed by your account manager, with the rate, fee and expected arrival shown before you confirm. Helm is a financial technology company, not a bank; US dollar account services are provided by Bridge Building, Inc. (NMLS ID 2450917), a licensed money transmitter, with funds held at Lead Bank.
Helm agrees pricing with each business in writing before the account opens, and shows the rate, the fee and the expected arrival before you confirm each payment. See how Helm pricing works.
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How do I send a business payment from the US to South Korea?
Send a SWIFT wire in US dollars directly to the supplier's own foreign currency account at its Korean bank, from your company's account, quoting the invoice number. Avoid paying through agents or related companies.
Does a Korean supplier have to report my payment?
Not for an ordinary trade payment. The Bank of Korea states that export, import and service transactions do not require reporting under the Foreign Exchange Transactions Act. Third-party payments, netting and payments bypassing foreign exchange banks must be reported.
Can I pay a Korean supplier in won?
Yes. The Bank of Korea states that nonresidents may settle current transactions with residents in won through nonresident free won accounts. A won invoice means you carry the exchange rate.
How long does a wire from the US to Korea take?
The dollars settle in the US on Fedwire and are credited on a Korean business day. Seoul is 13 or 14 hours ahead of New York, so a wire sent on a New York afternoon is usually credited the next Korean business day.
What is BOK-Wire+?
BOK-Wire+ is the Bank of Korea's large-value real-time gross settlement system. It has run since December 1994 and was renamed BOK-Wire+ in April 2009, when a hybrid settlement feature was added.
What does Helm charge to send money to Korea?
Helm agrees pricing with each business in writing before the account opens, and shows the rate, the fee and the expected arrival before you confirm each payment.
References
- Bank of Korea: Payments and Transactions (Foreign Exchange System, Legislation and Policy)
- BIS CPSS: Payment, clearing and settlement systems in Korea (2011)
- Bank of Korea: Internationalization of the Korean Won
- Bank of Korea: Exchange Rate System
- Federal Reserve Financial Services: Fedwire Funds Service operating hours
- Swift: Cross-border payments on Swift exceed the G20's processing speed target (22 August 2023)
- Office of Foreign Assets Control: FAQ 11, Who must comply with OFAC sanctions?
This guide is general information for businesses, not financial, legal or tax advice. Rules, fees and timings were checked against the sources listed on the review date and may change.