Korean Job Discussion Forums

BrianInSuwon · Joined: 10 Jan 2006 Location: Korea

I'm a little confused about exchange rates and their impact so I'll just put this out there for others to comment on.

It seems like now would be a good time to use my US credit card which is linked to my US bank account. An exchange rate of $1 to 1250 won, makes the US dollar stronger, right? If I wanted to buy a computer for 2,000,000 won it would cost me $1600 (but when the exchange rate was $1 to 1000 won, it would of cost me $2000).

PigeonFart · Joined: 27 Apr 2006

Don't forget to take into consideration the 'Foreign Currency Transaction Fee.'

That is, every time you use your credit card to buy something in a foreign currency, the bank charges you a fee for that service. That may be a fixed charge, or a percentage of the item purchased. Also, the banks exchange rate may not be as favorable as the rate on 'XE.com'

Does it all work out cheaper in the long run? Maybe.

ttompatz · Joined: 05 Sep 2005 Location: Kwangju, South Korea

If you are paying CASH then yes, it is a good deal and you can save money.

IF you are using your credit card then no, it is NOT good because you will need to buy dollars (possibly at a worse rate) to pay the card.

Then as mentioned above, you also have to consider the transaction fees that you may have to pay as well although on a large purchase these are a very small percentage (<1%). On a small purchase they can amount to a significant percentage of the cost (2-5%).

.

Poemer · Joined: 20 Sep 2005 Location: Mullae

Now is definitely the time to buy Korean goods with American dollars, but only if you have enough American dollars to pay your credit card bill without having to send money from Korea.

Colorado · Posted: Sun Oct 12, 2008 8:25 pm Post subject:

So it seems that this would be a good time to start using my US debit card for large purchases.