Tuition, family support, transfers to a local account — you send money abroad more often than you'd think. Yet "what's the fee?" rarely gets a clean answer, because the cost hides in several layers. Here's the 2026 structure of remittance costs and how to cut them.
Five layers of cost
| Item | Who charges | Rough (2026) |
|---|---|---|
| Transfer fee | Sending bank | 5,000–25,000 won (by tier) |
| Wire fee (SWIFT) | Sending bank | ~8,000 won each |
| Intermediary fee | Correspondent bank | ~USD 15–20 |
| Receiving-bank fee | Recipient bank | Varies |
| FX margin | Sending bank (exchange) | ~1% for transfers |
The biggest trap is the FX margin: the fee is a few thousand won, but on large amounts the hidden ~1% dominates. Don't be fooled by "no fee" — compare by the received amount.
Who pays — OUR / SHA / BEN
| Option | Who bears cost | Note |
|---|---|---|
| OUR | Sender pays all | Recipient gets the full amount |
| SHA | Shared (default) | Received amount reduced by intermediary/receiving fees |
| BEN | Recipient pays all | Highest deduction for recipient |
For tuition (an exact amount must arrive), choose OUR; small support is usually fine with SHA.
Five ways to save
- Use the app/online — cheaper fees and frequent FX preferential (50–90% off margin).
- Check the preferential rate first — compare by received amount.
- Compare transfer services — lower middle margin, strong for small/specific corridors.
- Large = margin, small = fixed fee — pick accordingly.
- Batch frequent sends — repeated fixed fees add up.
Example: 5,000,000 won in USD
| Method (assumed) | Received | Total cost |
|---|---|---|
| Bank branch (1.75% · 33,000 won) | ~$3,537 | ~118,000 won |
| Bank app (1.0% · 13,000 won) | ~$3,578 | ~62,000 won |
| Transfer service (0.4% · 5,000 won) | ~$3,605 | ~25,000 won |
A ~90,000-won gap for the same transfer — wider on bigger amounts. Always compare by received amount.
How long it takes
- Standard SWIFT: 1–3 business days (longer via intermediaries).
- Express/partner transfers: same day–1 day.
- Transfer services: minutes–1 day by country.
For urgent tuition or medical bills, time matters as much as cost — weekends and local holidays add delays.
FAQ
Is "no transfer fee" cheapest?
No — the cost often shifts to FX margin. Compare by received amount.
Bank or transfer service?
Depends on amount, currency, and frequency. Small/specific corridors favor services; large/stable favor bank-app preferential.
Recipient got less than expected?
Likely intermediary/receiving fees (SHA/BEN). Use OUR if an exact amount must arrive.
The real cost is the FX margin, not the visible fee. Comparing by "received amount" saves tens of thousands of won each time.
This is general information, not financial advice. Fees and rates vary by bank and time. See also the remittance calculator and FX spread explained.
