Korean Job Discussion Forums

[pianowill]

I set up a KEB bank account that is linked to my United Missouri Bank (UMB) account in the U.S. so I can just transfer won from Nonghyup to KEB and the money is put into my UMB account in dollars.

The problem is, I lose a lot of money this way. I recently transferred 320,000 KRW from NH to KEB. Moments later, I got a confirmation text with some hangul I don't understand and the number $265.27. This is 82% of the won minus a few zeroes. When I checked my UMB account information, the number deposited was $246.27. Whoa, did KEB pocket $19? Really? A whopping 7.2%? On top of that, UMB charged a $10 incoming wire transfer fee of $10. So my net conversion from 320,000 won is $236.27 dollars, or 72% minus a few zeroes.

There's gotta be a way to avoid losing this much money. What methods do other people use?

[crisdean]

regardless of how you send it back you're going to lose money, you have to pay fees at both ends, the key is to not waste money sending small amounts, like you seem to be doing with 300k KRW, I typically wait until I can send 2-3 million KRW at a crack (every 2 or 3 months), because the fees are still typically the same as for smaller amounts.

[frankly speaking]

Not all banks charge a fee for receiving wire transfers. However, if your bank does, then just send money orders to family back home and have them deposit it for you.

Chrisdean is right about sending large chunks. You get charged about 18K won from banks here, rate depends on bank and amount you sent sometimes.

Unless, you are leaving soon, or need to have money in your bank at home, why exchange now when the rate is still low. I would gamble a little that the rate will get better by the end of the year.

Money orders are still the best way, but next time make sure that your bank back home doesn't charge for receiving money. Do a search, you will find some that don't.

[Mr. Pink]

I sort of thought something was wrong with my exchanges too:

The sending bank takes a piece of the pie. If there is an intermediary bank they take a piece and finally the receiving bank takes a cut.

Since my work sends the money abroad for me, I had thought they paid for the bank fee on this side, I don't think that is true as there was a $40 disparity between the amount sent and the amount that arrived. My bank takes $10, so I am guessing this side and the middle bank took the other $30.

As someone said, send BIG amounts. I decided to start sending money every other month instead of every month. That should save me $40, which I know isn't much, but over the course of a year that adds up.

[Ruthdes]

I was just talking to KEB about this cost today. The lady told me they charge 18,000 won up to 2000USD, and 23,000 won above that. I'm not sure whether there are higher charges for even higher amounts.

[shostahoosier]

From what I remember, Schwab bank will refund you the fees that it costs to transfer money into a brokerage account.

You can then transfer that money into your Schwab checking account for free.

[antoniothegreat]

like others said, there is often an intermediary bank taking a cut.

I have this to be the best. Buy traveler's checks and mail them.

First, TC usually get a better rate on the conversion.

next, the korean bank usually does not have a fee, they just take money from the rate.

next, there is no wire fee from the korean bank.

next, there is no "receiving fee."

All in all, i save about $40-50 when i send money home doing it like this (sending 1-3 million won).

the negative aspects, of course, is it takes more time, and there is a risk of the mail getting lost. of course, they are TC, so if they are lost, you do not lose your money, but it will be a pain to go through that process of getting your money back.

[JFuller317]

Yeah, they don't tell you about the intermediary bank that just helps itself to a chunk of your money on the way. The first time I saw that, I absolutely flipped out and almost wanted to sue (of course I knew that wouldn't go anywhere).

I've gotta try this traveler's check option next time.

[hugekebab]

I've heard the post office is the cheapest. Haven't tried it though.

[matthews_world]

CitiBank has no transfer fees, or so I've heard on this forum.

[lhasa]

Hey Antonio,

A few years ago there were some issues with travellers cheques issued in Korea....you had to deal directly with the issuing bank if they were lost / stolen.

I assume that isn't the case anymore but not sure....????

[air76]

You can send up to the daily limit of $10,000US for the same approximately $40 fee. It's going to be $40 pretty much any way you shake it, unless your bank at home doesn't charge you the 20 bucks.

If you only send money home in chunks larger than $5,000 then $40 really isn't that much of a fee. Why would banks let you transfer money internationally for free? They are a business, and it's certainly better to pay this fee than to try and carry a suitcase full of cash home.

There is no excuse for sending home less than $2,000 at a time unless you have an imminent bill to pay, but even then it would be better to borrow a grand from a friend or your parents and then pay them back in a month.

[lhasa]

Has anyone brought a cashier's cheque home? Any issues processing it? How long did it take to cash?