To open an account foreigners will now need ID such as a foreigner registration card in addition to their passport. They will also need an employment certificate to use automated teller machines or Internet banking.

The rules were initiated by the Korea Federation of Banks which says they are aimed at preventing foreigners from perpetrating financial fraud.

Foreign fraudsters are reportedly calling up victims and telling them to wire delayed pension or credit card payments to their accounts. They then withdraw the cash from an ATM and flee Korea.

The federation has been asked several times by the Financial Supervisory Service and the National Police Agency to tighten qualifications for foreigners who want to open accounts.

Expatriates are unhappy with the new rules. An English teacher in Jongno said, "Does this mean that all foreigners are potential criminals? There are bound to be bad people of any nationality."

"Steven", a Chinese-British banker said, "The rules flies in the face of the government's plan to make Korea into a global trade and business hub."

Korean-Chinese and migrant workers from Southeast Asia will face problems as many won't be able to deposit their earnings with banks. Most of them are non-regular workers at small Korean firms and therefore have no identification other than their passports.

The effectiveness of the rules is also in doubt. A police official said, "Criminals will just look for other ways if they can't open an account."

(englishnews@chosun.com )