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Ruraljuror
Joined: 08 Dec 2007
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 Posted: Thu Sep 25, 2008 11:22 pm Post subject: Can a foreigner borrow money from a bank? |
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Here's my situation: Me and my wife will be moving soon, and we'd like to give more key money than we are currently giving in order to lower our rent. However, our funds aren't very liquid right now as they are tied up in various investments.
Which leads me to my question: Could I borrow 5 million won from a bank here? I have been here for years and have plenty of ties here and I currently teach at one of the most famous schools in Seoul. Considering how much I make, there is no reason other than pure racism to turn me down for a loan for a mere 5 million.
Alternatively, should we try to get the loan through my wife? However she is not college educated, and therefore her entire work history is working in the service industry...which in Korea is means getting paid in cash under the table. Would she really be able to get a loan, even though I'm sure according to official records she has never held a job or paid taxes in her life? Cuz that's messed up if she's more qualified than I am to get a loan.
Has anybody been able to get a loan from a Korean bank? Were you able to do so using English? If so, please mention the name of the bank and let's try to reward them with our business for taking care of foreigners. I prefer to spend my dollars where my business is appreciated. |
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ttompatz
Joined: 05 Sep 2005
Location: Kwangju, South Korea
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| Posted: Thu Sep 25, 2008 11:38 pm Post subject: Re: Can a foreigner borrow money from a bank? |
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| Ruraljuror wrote: |
Here's my situation: Me and my wife will be moving soon, and we'd like to give more key money than we are currently giving in order to lower our rent. However, our funds aren't very liquid right now as they are tied up in various investments.
Which leads me to my question: Could I borrow 5 million won from a bank here? I have been here for years and have plenty of ties here and I currently teach at one of the most famous schools in Seoul. Considering how much I make, there is no reason other than pure racism to turn me down for a loan for a mere 5 million.
Alternatively, should we try to get the loan through my wife? However she is not college educated, and therefore her entire work history is working in the service industry...which in Korea is means getting paid in cash under the table. Would she really be able to get a loan, even though I'm sure according to official records she has never held a job or paid taxes in her life? Cuz that's messed up if she's more qualified than I am to get a loan.
Has anybody been able to get a loan from a Korean bank? Were you able to do so using English? If so, please mention the name of the bank and let's try to reward them with our business for taking care of foreigners. I prefer to spend my dollars where my business is appreciated. |
That is about the same as the cash advance limit on one of my Korean credit cards.
Do they even give loans that small?
It might be easier and just as fast to get a CC and use that. The rates are about the same.
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Otherside
Joined: 06 Sep 2007
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| Posted: Thu Sep 25, 2008 11:46 pm Post subject: |
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I'd assume yes. If any teacher with an E-2 and a public school job can get a credit card with a 5mill limit, there's no reason why someone with plenty of ties (and an F2 or F5 visa) shouldn't be able to.
As I'm sure you know, there are tons of Korean microlending companies offering smallish loans (though I'm sure the interest rates are less than generous).
That being said, you know how certain institutions (banks and cellphone companies especially) are with dealing with foriegners. If they do they'll certainly cite some non-existant piece of government legislation.
Sometime ago, I was browsing the various Korean banks websites; most of them have practically no information in English, just an internet banking portal and some Information on the bank. The two exceptions to this were Woori and KEB, and If I recall the Woori bank website had some information on obtaining loans (in english), so might be worth looking into. |
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Thedudeabides
Joined: 15 Jun 2008
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| Posted: Fri Sep 26, 2008 1:38 am Post subject: |
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| Rushee cashee!! |
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seoulteacher
Joined: 18 Nov 2005
Location: Seoul
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| Posted: Fri Sep 26, 2008 2:13 am Post subject: Re: Can a foreigner borrow money from a bank? |
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| Ruraljuror wrote: |
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Considering how much I make, there is no reason other than pure racism to turn me down for a loan for a mere 5 million.
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Has anybody been able to get a loan from a Korean bank? Were you able to do so using English? If so, please mention the name of the bank and let's try to reward them with our business for taking care of foreigners. I prefer to spend my dollars where my business is appreciated. |
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Racism? Not necessarily: foreigners do runners, and that could leave a Korean bank facing uncollectible amounts. Tho' in your case one could assume that a Korean wife would be taken in to account concerning permanancy of ties to Korea.
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Good idea to publicise such banks, and to give 'em our business...years ago there was a female Irish banker in Itaewon who friends spoke of as efficiently handling foreigners' banking business, but I think she's no longer in banking. |
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victorology
Joined: 10 Sep 2007
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| Posted: Fri Sep 26, 2008 4:02 am Post subject: |
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You say you have various investments. This seems to be a big factor in whether a bank will lend to you. For example, if you have a CD and/or various funds with a bank, there would be no reason I could see why you couldn't get a loan.
If you do have a bunch of investments, you also may want to reevaluate them. If you have 10 million won in a CD making 6%, you'll make 600,000 won in a year before taxes. If you put an additional 10 million won to your deposit, it would save you 100,000 won a month in rent. That's 1.2 million a year. |
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shaunew
Joined: 17 Apr 2007
Location: Calgary
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| Posted: Fri Sep 26, 2008 9:17 am Post subject: |
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| There is a special program with the banks and government. You can get a small loan for housing and the interest is like 4.5% Ask the banker, this is your best option. If you want to know the exact name of the loan pm me and I ask my wife. |
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KAMAKAZI
Joined: 14 Mar 2008
Location: Jamshil
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| Posted: Fri Sep 26, 2008 9:54 am Post subject: Re: Can a foreigner borrow money from a bank? |
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| ttompatz wrote: |
| Ruraljuror wrote: |
Here's my situation: Me and my wife will be moving soon, and we'd like to give more key money than we are currently giving in order to lower our rent. However, our funds aren't very liquid right now as they are tied up in various investments.
Which leads me to my question: Could I borrow 5 million won from a bank here? I have been here for years and have plenty of ties here and I currently teach at one of the most famous schools in Seoul. Considering how much I make, there is no reason other than pure racism to turn me down for a loan for a mere 5 million.
Alternatively, should we try to get the loan through my wife? However she is not college educated, and therefore her entire work history is working in the service industry...which in Korea is means getting paid in cash under the table. Would she really be able to get a loan, even though I'm sure according to official records she has never held a job or paid taxes in her life? Cuz that's messed up if she's more qualified than I am to get a loan.
Has anybody been able to get a loan from a Korean bank? Were you able to do so using English? If so, please mention the name of the bank and let's try to reward them with our business for taking care of foreigners. I prefer to spend my dollars where my business is appreciated. |
That is about the same as the cash advance limit on one of my Korean credit cards.
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wow! good for you, youre so rich  |
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Typhoon
Joined: 29 May 2007
Location: Daejeon
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| Posted: Fri Sep 26, 2008 3:45 pm Post subject: |
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| victorology wrote: |
You say you have various investments. This seems to be a big factor in whether a bank will lend to you. For example, if you have a CD and/or various funds with a bank, there would be no reason I could see why you couldn't get a loan.
If you do have a bunch of investments, you also may want to reevaluate them. If you have 10 million won in a CD making 6%, you'll make 600,000 won in a year before taxes. If you put an additional 10 million won to your deposit, it would save you 100,000 won a month in rent. That's 1.2 million a year. |
As a foriegner they will give you a loan equal to, but not more than, the amount you have in their bank. I am married to a Korean and the same went for her because she has no real job. I told them that is crazy why would I borrow from them what I already had in their bank. However, if you don't want to break your investments with a bank they will be more than happy to lend you money. The money you have with them is their guarantee that they won't lose their money. |
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ttompatz
Joined: 05 Sep 2005
Location: Kwangju, South Korea
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| Posted: Fri Sep 26, 2008 4:05 pm Post subject: Re: Can a foreigner borrow money from a bank? |
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| KAMAKAZI wrote: |
| ttompatz wrote: |
That is about the same as the cash advance limit on one of my Korean credit cards. |
wow! good for you, youre so rich |
My point is that it is not that hard to get a card and then use the cash advance feature. The waiting time is about a week from application to approval. With steady work and an F2-1 visa there is about a 100% chance of acceptance at either LG or Samsung for a C/C.
MOST banks DON'T lend amounts that are this small (5 million won) because the processing cost is more than the profit from the loan.
He might be able to arrange an overdraft on his account if his bank likes him (but I am not sure if they still allow overdrafts after the credit crunch of 2004/5).
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itaewonguy
Joined: 25 Mar 2003
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| Posted: Fri Sep 26, 2008 6:09 pm Post subject: |
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you can get MINUS bank for 10million won..
ask your bank about MINUS BANK.. |
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red_devil
Joined: 30 Jun 2008
Location: Korea
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| Posted: Fri Sep 26, 2008 10:15 pm Post subject: |
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| Quote: |
| I currently teach at one of the most famous schools in Seoul. |
And what school would that be? |
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