Korean Job Discussion Forums

[LexusNexus]

I have getting prepared to teach in South Korea for the first time. I have several years of EFL experience. I am now getting cold feet about signing a one year contract on an E-2 with the current rate of exchange.

With the current Won to USD rate at 1,475 it means work the same amount for a lot less.

I remember about 1 to 1.5 years ago when the Won to USD ratio was about 900 to 1.

Is the current exchange rate (for those sending money to the USA) dissuading them from signing a one year contract?

How are you dealing with this?


Thanks in advance.

[Yu_Bum_suk]

It's only truly abysmal for the Yanks; for the rest of us it just mildly sucks. My school district hired seven Americans in September to work at a camp and now instead of saving $1,200 / month they're saving $600. It it's just a matter of money Japan suddenly looks much more attractive again.

[Big Mac]

It only matters if you have to send money home regularly. If you can hold on to it until the exchange rate gets better then it doesn't really matter. I've only noticed a slight rise in consumer prices here lately.

I just have my money sitting in a Korean account and when the rate gets better I'll move it. Even if I leave Korea before it gets better, I'll just wire it to myself later with my online banking.

[buymybook]

[Big Mac]

Buy My Book, it isn't that difficult to do either of the things you're talking about.

I've opened quite a few bank accounts on my own in Korea with very little trouble. And yes, I even did that when I was a newbie. The bank tellers will understand the words "open account" with a little bit of body language very easily. There is usually someone in the bank who understands a bit of English anyway.

As for getting an online banking account, it is very simple. I opened mine at Korea Exchange Bank. Just about every branch I've been to has at least one teller who is functional in English. If not, all you have to do is ask them for a translator on the phone and they'll be happy to do that for you.

If you test drive the online banking before you leave Korea, there shouldn't be a problem once you leave.

And no, I'm not married to a Korean and I rarely have to ask Korean friends for help with these matters.

The problems you speak of are just minor things that are easily overcome in Korea if you use your brain.

[shifty]

Hey Big Mac!!!

I wonder if you'll share yr knowledge of opening an online banking account, anything that comes to mind. It seems probable that many of us will have left Korea by the time appreciation of won takes hold.

When you say giving it a dry run, should this be done from overseas??
From within Korea doesn't seem conclusive enough for the likes of me.

[jackson7]

Bring all your bank info from your home country. Phone number, address, SWIFT number, routing number, etc.

Set up two accounts at your Korean bank when you get here. One is a normal account, the other is an automatic transfer account linked to your account in your home country.

Set up internet banking. Very easy to do. Instructions in English.

Your automatic transfer account sends back anything over 100,000 won and charges you less on the transfer fee. Send back the minimum (100,000) to check that it is working without a hitch. The money should arrive in your home account in less than 2 days (mine takes 1 day).

Keep your money in your normal Korean account and then move the money from your normal Korean account to your auto-transfer account using internet banking and voila...your money is sent home and you can wait a bit for the exchange rate to improve.

NOTE: Most internet banking codes expire after 1 year, so keep your security cards that have the codes and numbers on them.

[DCJames]

[Big Mac]

Hi Shifty,

My experience with online banking has only been with Korea Exchange Bank. I don't know about the other banks. My friends tell me that Woori also has online banking with the ability to wire funds back home, but I'm not sure how well it works.

You can just go into any Korea Exchange Bank (they're all over Seoul), open a regular account and then ask for online banking with your account. Bring your home banking information with you when you set up the online banking because they have to input the information into their computers while you are there in person. You can't input that information yourself online.

Once you get the online banking set up, if I recall correctly they'll give you a bunch of information that you will need to set up what they call a digital certificate on your home computer. You'll do this the first time you try to log-in to online banking. The certificate is basically a file on your computer that allows you to access online banking only from that computer. It's a little tricky to set up, and I think I had to call the English hotline (KEB has very fluent English speakers on their hotline to help you). Once you get through the hassle of getting the digital certificate to work, from then on your online banking will work perfectly. You also have to download a whole bunch of antivirus software and digital security stuff that apparently is mandatory by Korean banking laws.

The bank will give you this little security card with a bunch of random numbers on it. Don't lose it! You need it everytime you do a transaction online. Whenever you transfer money overseas or even domestically it will ask you to type in some of the numbers from the card.

In addition to my regular account at KEB, I have my savings in a money market fund at KEB, which has a 4.5 per cent annual interest rate. I figure that's a good place to keep my money until the exchange rate improves. You can see the balance with online banking and you can also transfer money in and out of the fund.

I've been finding the online banking particularly useful for paying bills that I otherwise would have had to go into the bank to pay.

The English version of KEB's online banking site is very good and easy to understand. I think of all the banks in Korea, KEB is the most tuned-in to the needs of foreigner clients.

Oh, and I've tested it in Canada and it works just fine. As long as you use the computer with the digital certificate set up on it while you are in Canada, there won't be any problems.

One other thing...you are only allowed to wire a maximum of $20,000 US via this method a year. I'm not sure whether that's a calendar year or what...I have to find that out. They keep track of the amount you've sent per year on the website...you'll see the countdown every time you wire money.

As for service charges...KEB charges 8,000 Won on this end each time you wire money overseas. Depending on your home bank, they may or may not charge you to receive the money. My bank in Canada is the Royal Bank and they charge $15 to receive the money.

[MrRogers]

LexusNexus wrote:

[LexusNexus]

Thanks for all of the replies.

I read each and every one - TWICE.

My point is that that I've wired money to the US before.

But a factor is that the weak dollar to Won may last more than one year.

So....If I just keep the funds in RoK, and wait, it may still hurt when sending home.

Thanks for the help to all, and please, keep responding.....

I'll be watching the exchange rates, and this thread.


LN

[jadarite]

It sucks if you want to exchange won to dollars, but I don't see prices being higher in Korea. So, if you come and wait till the exchange rate becomes more favorable, then I don't think you will have problems.

If you worked in Japan, you would be paying for an apartment, and that's about 500,000 won a month.

[Chet Wautlands]

Hey everyone!

Here's a great link for watching the progress of the Canadian dollar vs the Korean Won.

http://www.x-rates.com/d/KRW/CAD/graph120.html

Here's one for our American friends


http://www.x-rates.com/d/KRW/USD/graph120.html

I feel like a stock market investment banking funds advising strategic policy analyst. Good job,that.

[shifty]

Big Mac, thanks for yr detailed reply. I am with KEB, but that's where the good news ends.

I don't feel the confidence needed to be able to overcome the other hurdles. My windows crashed last month and had to be reinstalled. That would be a definite drawback if it were to happen again and the necessary certificate becomes a goner.

Wouldn't my current antivirus have to be uninstalled to accomodate KEB's needs?? Lastly, I have no phone in apartment to call their hotline with anticipated snags. Not an insurmountable prob, but added to the ones before makes me feel chary.

At least now thanks to you, I know what is entailed. I think I'll just take any hit than go through the process. Or extend contract.

[marlow]