Bankbook
Overview
A bankbook (통장) is a document issued to record and certify the terms of a deposit or savings contract concluded between a financial institution and a customer, as well as the details of fund transactions; in everyday usage, it is also widely used to refer to the bank account itself opened at a bank. It is a certificate confirming the right to claim repayment of the funds entrusted by the depositor, and a basic instrument of everyday finance for managing balances and the flow of deposits and withdrawals. Today, in most cases accounts are managed solely through an account number and electronic transaction records, without a paper passbook.
Main Content
Definition and Legal Nature
A bankbook has the character of an evidentiary document proving that a deposit contract exists. However, the bankbook itself is not a security that issues the deposit claim; the right to claim repayment of the deposit is determined by the financial institution's account ledger (books), regardless of whether the bankbook is held. Therefore, even if a bankbook is lost, the deposit claim does not extinguish, and the financial institution bears the obligation to pay according to its ledger records. A bankbook performs two functions together: a "transaction ledger" function that records transaction details, and an "identification means" function that verifies the depositor's identity and account information.
History and Changes
In the past, it was common at bank counters to submit a bankbook and have transaction details entered directly, and there was a period when the bankbook itself was treated as the sole proof of a deposit. As computerization proceeded after the 1990s, cashier's checks, cash cards, and CD/ATMs became widespread; in the 2000s internet banking, and since the 2010s mobile banking, established themselves as the primary means of transaction. As a result, "accounts without a passbook," in which no physical bankbook is issued or one is used only for printing transaction records, became the standard.
Types
- Deposit/withdrawal (ordinary deposit) account: The most basic account allowing free deposits and withdrawals, used for salary transfers, utility bill payments, and the like.
- Savings deposit account: An account with a relatively higher interest rate and few restrictions on the deposit period.
- Time deposit / installment savings account: A product for managing a lump sum based on an agreed term and amount.
- Parking account: A demand deposit-type product that pays the agreed interest even for a deposit of just one day, used to manage short-term idle funds.
- Foreign currency / CMA / MMF accounts: Accounts for foreign currency deposits, comprehensive asset management, and short-term fund management.
- Subscription savings account: A savings account for building housing subscription eligibility and points.
- Children's and youth accounts: Products for minors' financial education and for saving lump sums, requiring the consent of a legal guardian.
Components and Opening Procedure
A bankbook records the financial institution's name, account number, depositor's name, date of opening, passbook password, seal or signature, balance, and transaction details. When opening an account, an identity verification procedure using an ID card must be carried out, and under the real-name financial transaction system, opening an account under a borrowed name is prohibited. Non-face-to-face opening via a mobile app is also possible, but regulations apply, such as photographing an ID, identity authentication, and limits on the number of accounts per person. If a bankbook is lost, one can apply for reissuance with an ID, and reporting the loss can block unauthorized use.
Latest Trends
As of 2024–2025, the environment surrounding bankbooks is changing in three main directions. First, with the spread of internet-only banks (KakaoBank, K bank, Toss Bank), non-face-to-face account opening has become commonplace, making the "mobile bankbook," in which an account is managed with a single app without a physical passbook, the standard. Second, as legislation raising the deposit insurance limit from the previous 50 million won to 100 million won per person passed the National Assembly at the end of 2024 and takes effect from September 2025, fund management strategies of spreading deposits across multiple financial institutions are being reorganized. Third, amid the high-interest-rate trend of 2022–2024, parking accounts emerged as a representative product for short-term idle funds, and as the base rate has been cut since the second half of 2024, parking account interest rates are also trending downward.
Meanwhile, crackdowns and punishments for money mule accounts (the act of lending or transferring a bankbook held in another person's name) have been strengthened. Accounts misused for telecommunication financial fraud are subject to suspension of payment, and the account holder may face criminal punishment and restrictions on financial transactions. Financial authorities are blocking the trading of bankbooks through limits on the number of accounts that can be opened, advancement of abnormal transaction detection (FDS), and the introduction of additional authentication procedures for non-face-to-face opening. In addition, a reorganization is being pursued to raise the monthly recognized payment amount for subscription savings accounts and expand the number of recognized payments, increasing their importance as a means of managing funds for home purchases by young people and newlyweds.
As a result, the nature of the bankbook is shifting from a paper document to a "digital account that manages financial identity and fund flows," and it remains a representative everyday financial instrument whose usage strategies change with interest rates, taxation, and regulatory changes.
Related Topics
- [[Deposit]]
- [[Real-name financial transaction system]]
- [[Internet-only bank]]
- [[Parking account]]
- [[Money mule account]]
- [[Deposit insurance system]]
- [[Account transfer]]