2025 Guide: Maximizing Korean Finance for SG Residents

At a Glance

• Mobile ID for Overseas Koreans: Access Korean banking without a local phone number starting in 2025.
• Higher Remittance Limits: Transfer up to USD 100,000 annually without supporting documents.
• FBAR Exemption: Singapore residents are now exempt from reporting foreign accounts exceeding 500 million KRW.

What is the most frustrating moment of living in Singapore? For many, it’s opening a Korean banking app. You’re often blocked by the "identity verification" wall. Keeping a Korean SIM card feels like a waste of money, but getting rid of it makes financial transactions feel impossible. I know that feeling all too well.

However, moving into 2025 and 2026, many favorable changes have emerged for those of us living abroad. You can now use Korean financial services much more smartly without a Korean number or complex paperwork. Here are four essential financial updates every Singapore resident should know.

1. No More Korean Phone Numbers! 'Mobile ID for Overseas Koreans'

The era of "SMS verification," the biggest hurdle for Korean banking, is coming to an end. Thanks to the "Mobile ID for Overseas Koreans" fully introduced in 2025, you can now verify your identity and handle banking tasks using just your smartphone, even without a Korean phone number.

• How to Apply: You must visit the Embassy of the Republic of Korea in Singapore (47 Scotts Road) in person with a valid biometric passport for initial authentication. Once issued, it is valid for three years.
• Usage: You can now manage accounts, issue certificates, and use Government24 services via major commercial bank apps like Shinhan, Hana, and Woori without a local SIM.
• What to Bring: Your smartphone, biometric passport, and time for an embassy visit.

2. Significant Increase in Remittance Limits (The USD 100k Era)

Have you ever worried about the "Foreign Exchange Transactions Act" when sending money between Korea and Singapore? Regulations have been significantly relaxed since 2025, offering much more freedom. The biggest advantage is the increased annual remittance limit.

• Limit Without Documentation: The annual limit for transfers without supporting documents has doubled from USD 50,000 to USD 100,000.
• Abolition of Designated Banks: Previously, you had to designate a single bank for transfers. Now, you can freely use multiple banks or fintech platforms within the integrated limit.
• Fee-Saving Tip: For small transfers under USD 5,000, fintech apps like SentBe or Wise are often much better than commercial banks in terms of exchange rates and fees.

3. No Need to Report Accounts Over 500M KRW? FBAR Exemption

As you save up in Singapore, your combined Korean and Singaporean accounts might exceed 500 million KRW. While reporting this to the National Tax Service every June used to be a headache, you should take note of Article 54, Paragraph 7 of the International Tax Adjustment Act, effective January 1, 2025.

• Exemption from Reporting: If you are determined to be a "Singapore resident" under the Korea-Singapore Tax Treaty, you are exempt from the obligation to report foreign financial accounts (exceeding 500 million KRW) to the Korean National Tax Service.
• Residency Criteria: If your center of economic interest—such as family, residence, and primary occupation—is in Singapore, you can be recognized as a Singapore resident.
• Precaution: To be safe, it is wise to obtain a "Tax Residency Certificate" (TRC) from the Inland Revenue Authority of Singapore (IRAS) in case of any inquiries.

4. Local Financial Changes in Singapore (CPF & Exchange Rates)

Let’s also check the local situation in Singapore. Those preparing for or holding Permanent Residency (PR) should pay close attention to changes in CPF limits.

With the CPF salary ceiling rising to SGD 7,400, high earners might see a slight decrease in take-home pay, but their retirement savings will increase. Additionally,