Korean Job Discussion Forums

[Zyzyfer]

You don't even need a bank account to transfer money. I just walk into the local Woori Bank and hand them a paper with my details; I'm not a client, but I go there so often that they just told me to hand them a previous receipt and they'll do the rest.

I wouldn't send traveller's checks, simply because a signed and countersigned check that gets in the wrong hands don't amount to a hell of a lot.

[canuckistan]

Sending home fully signed traveler's cheques is like sending cash through the not-always-reliable international mail. Especially when they go awol and you have to try and claim them "lost" or "stolen" to get your money back from the cheque company. Takes lotsa time that.

If you're sending home substantial amounts of dollars, the extra few bucks it costs to send it is peace of mind to know that it got there by wire transfer in a couple of days safe and sound. I-N-S-U-R-A-N-C-E.

[marktoronto]

Austin, is this how you've been sending money home? Don't you think it's risky using the mail to send home money? Even though nobody else can cash your travellers cheques, it could still get lost and having to replace them is a huge hassle. Also, do you send it FedEx or regualr mail? If it's regular mail, how long does it take? If it's FedEx, what is the cost?

[blah]

XCOM gives midrange rates. They just average a number of high and low rates. If you want an exact rate, go to the website of the bank you plan to use. It will most likely be more expensive than XCOM. KEB giives all the details on their site.

Another option is to open an account, mail an ATM card home to mom, and have her withdraw it directly from your Korean account. I'm not sure what the exchange rate would be. But I am tempted to try it.

[Homer]

Alpine,

Just wire the money home. Its safe and efficient and inexpensive.

Austin, buddy...400 US dollars per year??
Where did you get that figure?

I wire every month to Canada. I pay 12 000 won in fees, my canadian bank charges me nothing for the wire (made arrangements).
This works out to about 15 canadian dollars per month or to 180 canadian dollars per annum.
In Us that is about 135 dollars per year. This is inexpensive. It takes my 5 minutes per month at the bank here to do this.
Now, add to that that I send about 2.6 per month home or if you will 3200 canadian dollars. This works out to 38 400 canadian for an average per annum. Now the wire fee represents less than 1% of what I send.
Even if you double the wire fee it remains a minimal cost.
Keep mailing Austin.

[hotsalsa]

I use the Korean Exchange Bank (KEB), they charge me 17,000W for sending home 1 million Won. The money is in my Canadian account in less than 48 hours which I find amazing. In the past it has taken 2-3 days. As with most people the bank (RBC) withdraws the money automatically every month.

One thing I found out recently is that you can change the date of the automatic withdrawal through the student loan center...I always thought that I was stuck with the first of the month...

[matthews_world]

It also helps to have a Bill Pay Option with your bank account back home.

You can set up bill payments automatically. Hit 'enter' and your bank will do all the work. You don't have to write any checks.

This is all done online. Very secure.

[prairieboy]

I wire money home every month to my Canadian account and pay my student loan from there. I use internet banking for my Canadian account so I just check a couple of days after I wired the money home to ensure it has arrived. I have an automatic debit set up so that $200 is paid against my loan at the end of every month.

I pay 12,000 to my local nong-hyup no matter how much I send. My bank on the other end however takes $20 CAD from the total sent (that's a bit expensive to say the least!).

I've been trying to find a cheaper way to send money home. I've tried the international debit card but the exchange rate charged seems to be really, really bad compared to a wire transfer. The debit card is good for those times when pay-day and bill-paying-day are just too close together to allow the day or two it takes the banks to process the transfer.

I'd be interested to know more about the money order or bank draft method. Is it cheaper? As it is I spend 144,000 won (about $160 CAD) at N-H and then another $240 CAD (roughly $400 a year) on wire transfers. I could make better use of that money!

[nfarney]

Homer,

[Homer]

I went to my RBC branch and asked for an appointment with a financial services consultant (or whatever they are called). I had been in Korea for a year by then and did this between my firts two contracts.
I just explained my situation to the guy and asked if they had some sort of deal to offer. He said no, so i told him I would take my business elsewhere. This ended up with me getting the deal I now have.

[Corvid]

I use the traveller's cheque method. The fee for getting a $500 money order is something along the lines of 3,500 won. The exchange rate is better for some reason too, so there's that savings as well. I think KEB charged a fee to exchange any money into $$. Then they charged 12,000 won for a transfer, but they sent it to the KEB in New York, who charged $18, then my credit union took $5. Almost $35 for sending $500. Prearranging the whole deal like Homer did is obviously the way to go, but, then again, he's sending 2.5 mil home a month... I think he's a more attractive customer than some of us. Then there's the insurance point. True, but the hassle in getting a traveller's check back isn't so much hassle as it is just waiting for it to happen. I just neatly print the address of my bank on the envelope.

[Homer]

Gosh Corvid...did ya just call me attractive...

lol...

[Austin]

Obviously, people are going to exchange money the way they want to do it. I was merely explaining the way I have exchanged my money since 1995. If you think it is foolish, do not do it.

For those of you that asked how it works and why it saves money, here you go:

First, the cash rate requires more time, effort and other expenses to do the transaction, and that is why you get a more favorable rate when you purchase T/Cs. Moreover, when you sign and countersign your checks after completing the "pay to the order" section with your account number, your checks can not be used by another person (Canuckistan was incorrect in making such a claim). Furthermore, in the unlikely event that your mail does not make it home, getting your traveler's cheques replaced is a very simple process (it is far from complex as others have suggested).

Most banks charge to receive wired funds, so you are not only going to pay for sending your money by wire, but you are going to be charged when your bank receives your money. This double hit will typically cost $30 USD per transaction ($10 to send, $20 to receive). However, that is not the only drawback, as you need to first exchange your money into your currency in the form of "cash" before you can wire the money. In doing so, you lose from 1~1.5% off what the T/C rate would give you.

Do the math...$360 in wiring fees with 1% of $20,000 USD ($200) is $560 USD in wiring expenses for the year.

You can see for yourself that my calculations of a $400 USD savings by using my method is not only realistic, but modest.

Again, do not follow it, if you think that it is foolish. However, for those that do and would like more detail, send me a PM and I will answer your questions in detail.

BTW, Corvid, you should be able to get your T/Cs for 500 won to 1,000 won (not 3,500). I would suggest you shop around.

[hotsalsa]

I don't get charged by the RBC in Canada for receiving the wired money. You might want to check the different packages that your bank offers for transactions and such. I pay a flat fee of 11$CDN a month, which is high but I get internet banking, 12 "special transactions" per year (like wire transfers, money orders etc), no over draft protection fee, free cheques, etc...It's on their website if you want to check it out, although other banks might have better deals.

[Sunray04]