Korean Job Discussion Forums

[madstork91]

So, yeah, it is a bit of a story:

I just tried to send money home from citibank in Korea. Like a previous poster I thought that going with a US bank would eliminate some stress and hassles. One of the things that CitiBank guarantees back home is that there will be a person who speaks English at every branch in the world.

All of the reasons I had for using citiBank have not only blown up in my face but I have reasons now to stay away from them. I will be opening an account at a different bank this month, and changing everything over to them.

CitiBank has lied to me all day today telling me that I must sign an exclusive agreement with them to only use them for transferring money.

This details of this have varied:

It's the same for everyone, Korean and foreigners.
It's is only for foreigners.
It is only for Americans.
It for ANY international bank anywhere in the world.
It is ONLY in Korea.
It is for any international transfer of money ANYWHERE.
It is for any transfer to the US from ANYWHERE.
It is an AMERICAN law.

But the one consistent thing is: It is a Korean Law, and I must do it to transfer money.

I went to the ATM, took out 300man won and went to Woori Bank and transfered the money in under 15min. Had lunch. And then took the reciept with a copy of the form to CitiBank. Demanded to talk to someone in English (since no one there could) and then was given the "Its a law speech" by someone who seemed pretty capable to handle the conversation in English.

After defending the FACT that it wasn't, I was told this again, to which I replied that I will be closing my accounts and going elsewhere soon.

Sorry for the rant, but people should know to stay away.

[gogophoto]

[Jake_Kim]

There's a legal difference between single remittance and remittance on a regular, periodic basis. Since you're a foreign worker sending money home, you're regarded as the latter, in which case you do need to nominate one particular bank and branch who will manage ('monitor' more likely) your remittance under Foreign Exchange Transactions Act as a part of foreign currency control. It's called '거래 외국환은행 지정 제도,' look it up before you vent. Woori Bank or any other will tell you the same thing if you set up a remittance account with them.

Even if you sign that exclusive agreement, there's not a darn thing they do if you send money abroad through a different bank as a spontaneous transaction every once in a while.

Citibank Korea is good for remittance only because they have Citibank Global Transfer service linked to your overseas Citibank account, which cuts out the 'middle-man fee.' The rates offered by Citibank, however, aren't much attractive.

[madstork91]

http://unpan1.un.org/intradoc/groups/public/documents/apcity/unpan003155.pdf

Care to specify Article and Section? I've read through it, and don't see it. Could have missed it though.

Also, I have had several internationally invested friends tell me this is BS.
Several Koreans tell me this is BS.
A Canadian who has had several bank accounts over the course of 7 years has told me that he has NEVER had to sign anything like this any of the times he has sent money home.

Now there is a part about verification of the identity of the person sending the money... which is why they require you to have your passport, they make a copy of it, and if the are doing their job right, they stamp it. before making a copy. (SOP)

Not just venting. Though, lord knows it felt good to.

Edit:
Not that it is a definitive source but,
http://www.worknplay.co.kr/korea-information/banking-and-money/
http://www.justlanded.com/english/South-Korea/South-Korea-Guide/Money/Transferring-Receiving-Money
No mention of it.

[machoman]

[eb]

Why is anyone's business where you bank or what you send home?
Foreign curreny flow is able to be controled under Economic Prinicipal Law
of the countries "interest" for exports.
If someone is real smart, then they are just going to bascially hide all thier investments' anyways. EB

[madstork91]

The economic control element is called remittance.

It is what you are actually getting when you transfer internationally.

One thing the I am taking away from all of this? Transferring in one lump sum is better for us, and is practically the way we have to do it. I may even take about 2mil in won home with me in cash, and wait to exchange it when the rate is better since I will leave in the summer, when the trend is a lower rate, so that I can exchange it in the winter, when the trend is a higher rate.

They are encouraging the exact thing that the act I linked to in my previous post was designed to counter act, and compounding the foreign exchange of wealth's impact by not letting us easily make minor transactions. But hey, that's their call.

I still have not seen the "law." that requires me strictly designate a bank... but I'm tired, maybe fresher eyes would do it better...

[Jake_Kim]

Foreign Exchange Transaction Act (Act No. 9374, Jan. 30, 2009)

Article 15 (Procedures for Payment, etc.)

(1) The Minister of Strategy and Finance may prescribe matters necessary for the payments or receipts to which this Act applies, such as procedures for money exchange, remittance and withdrawal of property.

(2) Where it is deemed to fall under any of the following subparagraphs. the Minister of Strategy and Finance may require residents and nonresidents who intend to make payment from Korea to a foreign country, or residents who intend to make payment to non-residents or to receive payment from non-residents, obtain permission as prescribed by Presidential Decree when they pay or receive as such:

1. Where it is inevitable for the faithful fulfillment of treaties concluded by the Republic of Korea, and of generally recognized international laws and regulations;

2. Where it is necessary for especially contributing to international endeavor for the maintenance of international peace and security.

[This Article Wholly Amended by Act No. 9351, Jan. 30, 2009]

Article 25 (Management of Business, etc.)

(1) The Minister of Strategy and Finance may determine procedures for the management of business, payments or receipts, and other necessary matters, if it is deemed necessary for ensuring the efficient operation and effectiveness of this Act.

(2) The Minister of Strategy and Finance may designate one or more juristic person or organization which is related to or specializes in the foreign exchange business, as an institution to relay, concentrate, interchange or analyze data on foreign exchange transactions, payments or receipts.

[This Article Wholly Amended by Act No. 9351, Jan. 30, 2009]


Enforcement Decree of the Foreign Exchange Transactions Act (Wholly Amended by Presidential Decree No. 21287, Feb. 3, 2009)

Article 29 (Permission for Payment or Receipt)

(1) Where the Minister of Strategy and Finance makes it compulsory to obtain permission for payment or receipt pursuant to Article 15 (2) of the Act, he/she shall determine and announce the reasons why such permission has to be obtained, and the type and scope of payment or receipt.

(2) Any person who intends to obtain permission for payment or receipt under paragraph (1) shall submit to the Minister of Strategy and Finance an application for permission determined and announced by the Minister of Strategy and Finance.

(3) Where the Minister of Strategy and Finance receives an application for permission for payment or receipt under paragraph (2), he/she shall determine whether to grant permission therefor by examining the matters falling under the following subparagraphs, and notify the applicant thereof:

1. Whether such payment or receipt is subject to permission;

2. The reason and amount to be paid or received;

3. Details of the transaction or act which is the cause of such payment or receipt.

(4) Where a reason behind the measure taken to obtain permission on payment or receipt pursuant to Article 15 (2) of the Act ceases to exist, the Minister of Strategy and Finance shall promptly lift such measures.


Foreign Exchange Transaction Regulation (Ministry of Strategy and Finance Policy Notice No. 2009-2, Feb. 4, 2009)

제4-2조(지급등의 절차)
Article 4-2 (Procedure for Payment and Transactions)

(1)건당 미화 1천불을 초과하는 지급등을 하고자 하는 자는 외국환은행의 장에게 지급등의 사유와 금액을 입증하는 서류(이하 이 장에서　�지급등의 증빙서류�라 한다)를 제출하여야 한다. 다만, 이 규정에 따른 신고를 요하지 않는 거래로서 비거주자 또는 외국인거주자가 외국에 있는 자금을 국내로 반입하기 위하여 수령하는 경우에는 그러하지 아니하다.
A person who intends to make payment exceeding the amount of one thousand United States dollars shall submit to the head of foreign exchange bank documents proving the reason and amount to be paid (hereinafter "proof of payment"): Provided, That the case where nonresident or foreigner intends to receive funds from a foreign country, shall be excluded.

(2)지급등을 하고자 하는 자는 당해 지급등을 하기에 앞서 당해 지급등 또는 그 원인이 되는 거래, 행위가 법, 영, 이 규정 및 타법령 등에 의하여 신고등을 하여야 하는 경우에는 그 신고등을 먼저 하여야 한다.
A person who intends to make payment shall make a report beforehand where such payment or any transaction or act as its cause is regulated by the Act, the Decree, this Regulation, and other acts and decrees.

(3)지급등을 하고자 하는 자가 당해 지급등과 관련하여 필요한 신고등을 이행하지 않는 등 법, 영 및 이 규정을 위반한 경우에는 당해 위반사실을 제재기관의 장에게 보고하고 필요한 신고절차를 사후적으로 완료한 후 지급등을 할 수 있다. 다만, 영수를 하고자 하는 경우에는 외국환은행을 경유하여 위반사실을 제재기관의 장에게 보고한 후 영수할 수 있다.
Where a person who intends to make payment violates the Act, the Decree, this Regulation by failing to make a necessary report, can make payment after such violation is reported to the head of regulatory authority and necessary report is made. Where a person intends to receive, can receive after such violation is reported to the head of regulatory authority through foreign exchange bank.

(4)제3항의 규정에 따라 위반사실을 보고받은 제재기관의 장은 위반한 당사자가 법제19조제2항에 따른 제재를 받을 우려가 있거나 기타 제재의 실효성 확보를 위하여 필요하다고 인정되는 경우 제재처분 확정시까지 지급등을 중단시킬 수 있다.
The head of regulatory authority upon receiving a report of violation pursuant to Article 4-2 (3) of this Regulation can suspend any payment until punishment is decided, where the person committed violation is liable to punishment pursuant to Article 19 (2) of the Act or, where it is deemed necessary to ensure the effectiveness of punishment.

(5)이 규정에 따라 거래외국환은행을 지정한 경우에는 당해 외국환은행을 통하여 지급등(휴대수출입을 위한 환전을 포함한다)을 하여야 한다.
Where a trading foreign exchange bank is designated under this Regulation, payment shall be made through the designated foreign exchange bank. (including currency exchange for import and export of means of payment)


The texts of the act and the decree were taken from the database of Korea Legislation Research Institute, the regulation from the Ministry of Strategy and Finance. Don't mess around with some expired decade-old version of the statute when you don't even have a clue how the legal system of a country is constructed.

[eb]

Regulatory compliance for banks? Is it buying/trading on a Non-Restricted Market, such as a Deposit Bank ( where they are able to replace cash by debiting out assest accounts; and then recrediting these "deposits" to essentialy have to re-owe on thier loans)? These book "demands" ( ie loans) essentaily become money owed on a banks account instead of a customers' one, right? No liabilty for the customer, but ALOT of liablity for these banks. I would think. EB

[jvalmer]

[madstork91]

[alljokingaside]

I've almost forgotten, but this post riled the vitriol back up.

CitiBank, Citibank. Right before I leave for Korea, I open a CitiBank account on the premise, based upon a financial head in a Chicagoan CitiBank, that any transfers between CitiBanks worldwide was free of charge. In those words. CitiBanks being far and few from my reckoning in Busan, I search. After scouring the city during my first month for a branch, I learn not only is it NOT free, but the transfer fees amount to something ridiculous, hovering in the 80k range for a relatively small amount. CitiBank, requiring a $1500 minimum in your checking account, or a $15 charge per month. CitiBank, the bank that never sleeps. Its out there on the streets luring poor saps like me with its enticing legs spread wide open, promising warmth, delivering disease.

[gogophoto]

[madstork91]

In the next week I will be looking into opening an account with Woori. (if you have had any bad experiences let me know) Every time I have ever used them for anything it has gone smooth as silk, and they have always had someone in there fairly competent in English. (I have been to several branches)

When I transfered the money home from Woori, I did not have to sign an agreement, and a brit who sent home money as recently as last April didn't either.

I would still like information on the actual "Law" or "policy" that requires the designation of an exclusive bank to be used for transfers.

[madstork91]