Korean Job Discussion Forums

[Enigma]

I posted about this a month ago, but got no replies, so I'm trying again.
I want to set up a monthly purchase of index funds with one of the banks. Have any of you done this, or can you offer any information?
I've checked the websites of KEB and Standard Chartered, but I can't find any specific information there in English.

Thanks

[Senior]

I would really like to do this as well. Preferably a "no load", exchange traded fund (ETF) of the KOSPI with a small monthly savings component.

[confucianbewildered]

you can open a CMA with a securities company: hyundai, samsung et.

it works like a normal checking account, but they pay 5% interest and you can trade.

if anyone knows about an office in busan please post directions, the only main offices i've heard of are in seoul.

[manofwar]

the interest rate of cma 5s percents are a teaser rate good for about a 6 months and other rules. cma accounts gets around 2.7 percent...Hyundai doesn't have anything in English. I'm still learning how to use it in Korean. I know this isn't the mutual fund thing u wanted to know.

[uklathemock]

In Korea, if you want to buy U.S. stocks/funds/etfs you'll need to deposit 10 million won minimum into Samsung or Hyundai Securities.

Then, you can just trade the ETFs listed on the U.S. market.

Korea's fund options are much more limited and I'm not sure if they offer a Taiwan index fund (EWT) or Brazilian (EWZ) for example.

However, if you're only looking at investing in an index that mirrors the Kospi, you can just open an account at any of the security firms or banks here. Most Korean funds seem to be front-loaded with high fees.

[jlb]

Alternatively, just open an account with a US broker and forget all the language difficulties. One I found that lets me do it (a Canadian), from Korea is Sogotrade. $3 trades and 30 free ones the first month. One of the cheapest around.

Here's the link.

https://www.sogotrade.com/Setup/Default.aspx?rf=543925

[Trevor]

The correct answer to this question is to open up a mutual fund account at KEB. I did it in Itaewon, where I purchased the KOSPI 200 fund. It is not necessary to open a brokerage account. They will do a monthly purchase.

Buy It. Hold it. Don't look at it.

[madhusudan]

Just ask your bank about it. If communication's an issue, take a Korean speaker. Like everything bank related, it has its own little book of a different color. Not much else to say about it. You can get a mutual fund at most banks, and most Koreans I know have one or more.

[Senior]

[Trevor]

"Ask your bank" is not correct. KEB is the only bank in Korea that will open up a non-brokerage account for foreigners to purchase mutual funds in. You should probably go to a "foreigner friendly" branch.

Yes, you will be charged a fee for monthly purchases. Fees are considerably less for ETF's.

Here's a link to their page for expats. Click on "FUND" at the top on the blue bar.

http://bank.keb.co.kr/index_en.jsp

I suggest you give them a call. Their contacts are on that page. Also, print out the page I linked to and bring it to the bank when you open the account. It is quite common for bank staff to be unaware of the fund services offered to expats.

[Enigma]

Thanks for all of the help, everyone. I figured KEB would be my best bet. Next time I'm in Seoul I'll pop in to the COEX branch and talk to them and set something up.
One further question, do any of you know what MER (management expense ratio) is in Korean?

[adbell]

Are you guys still interested in investing in Korean Mutual Funds/Indexes/ETFs?

[oreo335]

I'm more interested in setting up a trading account in Korea. Can foreigners open one? I have one back in the states, but the recent depreciation of the Won forces me to keep the money in Korea for now.

[Senior]