Korean Job Discussion Forums

[Suwon23]

Nobody likes to be wrong, detonate, but it sounds to me that jeonsae isn't a bad deal at all. Obviously there are people at the top who are extracting something from you when you pay jeonsae, just like any other service there has to be profit in it or it wouldn't be available at all. But you're saying that jeonsae is a bad investment... compared to what? You say people should ask a financial planner, but how do you know that planner won't just tell you to put your money into a jeonsae apartment? A 10% return sounds pretty high to me. Interest on a savings account is about 2%, usually, a CD being a little higher, probably just above inflation. And a mutual fund is considered good if it returns more than 8% (since 2008 I'm guessing most mutual funds are returning much less than that). But then I'm no expert. Maybe you know better than me what people should be putting their money into. What is it?

[Savant]

I wouldn't go as far and say that it's a bad investment but I'm not sure I would like to put all my financial eggs in the one basket. Though, I will likely be using the Jeonsae system in a few years, of which I will no doubt approach the commitment with a sense of trepidation.

Hopefully, when I start my own Jeonsae experience, the housing bubble will have burst by then and prices will be somewhat lower.

Savings accounts of 2%? Am getting closer to 6% with mine. I'm sure there are other savings banks with similar interest rates.