Korean Job Discussion Forums

[jadarite]

I am trying to get information on the best ways to transfer funds between countries. For me, it would be between America and Korea.

When I lived in Japan, banks like UFJ were all over. I lived in a touristy area, so there was also a citibank nearby. It was very easy to deal with transactions. I don't even recall a transaction fee with citibank.

However, now I am trying to figure out the best methods for Korea. There are 2 concerns, extra fees and availability.

1) What is the most widely used bank in Korea for foreigners?
2) I will be going to Andong, 3.5 hours southeast of Seoul. Would they have this bank there as well?
3) Assuming there isn't a clear cut English page on their site listing my options, what sources online can I go to in order to find out more about my banking options?
4) What are some good suggestions and recommendations to avoid excessive transaction fees?

I am wrestling in English with my bank here about their transaction fees, so I have become worried about what I will face when I get to Korea. Unless you get the facts, the banks can screw you and prevent you from having access to your money.

[gerald.in.korea]

KEB has the only credit card specifically designed for D-8 Visa holders who are non-Koreans that have a business in Korea. Korean Exchange Bank (KEB) tends to be the most internationally oriented bank in Korea. In addition HSBC just bought a very large equity position in the company which means that they will become more oriented to international financial services.

Andong will have banks of all flavors and sorts.

KEB has a website in English that has additional information and a Q.A. team.

To avoid excessive transaction fees send larger amounts less frequently

Cheers,

[jadarite]

"KEB has the only credit card specifically designed for D-8 Visa holders who are non-Koreans that have a business in Korea."

I have no idea how that relates to any of my questions. I have an E-2 visa. D-8 was NEVER mentioned. Also, I don't have a business.

Thanks for listing some banks. I will look at KEB's site.

[gerald.in.korea]

Actions speak louder than words and KEB has made efforts to secure non-Korean clients where as the others have not. They have extended services in English for the non-Korean clients and it is easier to work with them due to their market development plan.

[jadarite]

In regards to the the amount for deposits, on their site they have:

"No limit (Korean resident can deposit foreign currency purchased with Korean won without restrictions on the amount)"

This sounds like it is going in the opposite direction. I will want to take US dollars and deposit them into my Korean bank account.

It would be nice to keep them as American dollars until I need the money, but that may not be possible.

Is there a clear cut page in English which outlines the procedure beyond opening an account in order to transfer American dollars from an American based bank into a Korean based bank account?

[gerald.in.korea]

You set up a Foreign USD currency account at KEB, its very easy. The second step is to transfer the funds but when you do so it is advisable to declare that the purpose for the fund transfer is "for investment". To transfer large amount of funds out of Korea a tax office receipt is required but by declaring the funds were for the purpose of investment there will be no tax receipt requirement for the original amount transfered in country.

[jadarite]

So, in the end I will have 2 accounts? One for US currency and another which handles won?

[Juregen]

[jeffkim1972]

Ignore all the talk about D-8 Visa and investment. This is specifically for FDI (Foreign direct investment), which means you are a shareholder in a company here, which is impossible with an E-2 Visa.

You can't hold two simultaneous Visas. You have an E-2 so that means you should have two bank accounts.

1. Korean Bank (any bank can transfer money back and forth, not just KEB). Every bank has an English version of their website. First of all, you're not talking about transferring millions of dollars back and forth so it's somewhat inconsequential which bank you use.

2. US Bank account.

Where ever you hold your money, is the currency you possess. You can't hold Korean Won in an American Bank account or USD in a Korean Bank account. Not on a consumer banking level anyhow.

In Korea, you can't avoid transactions fees when transferring money into and out of the country.

Japan must just be a unique case with it's no transaction fees. This is because the Yen is a hard currency almost on par with the US Dollar, British pound, and EUR. These currencies usually have more liberal transaction policies. The Korean WON is still just a domestic currency.

[jadarite]

Ok, so "Foreign USD currency account" as posted above only deals with "D-8 Visa and investment" stated above?

I only need 2 accounts?

A)

1 US account / US currency, dollars (Already have)
2 Korean account / Korean currency, won (Will get)

B)

1 US account / US currency
2 Korean account / Korean currency, won
3 Korean account / US currency, dollars

I should go with A, not B?

[jeffkim1972]

Option A should be your choice.

You don't really choose which currency your money will be held, Won or USD. If you are in Korea (Korean Bank, it is automatically WON), if you are in USA, automatically USD. If you transfer let's say 1,000,000 Won to your american US account, it shows up as ~$1060 (after exchange rate). Not as separate Won and USD. Vice Versa.

Seamless International banking (or global banking) doesn't exist. Although there are American banks here, (Citibank), you can't access your US account there. The bank only really has an American name and/or ownership.

So just avoid transferring as much as possible.