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Lucas
Joined: 11 Sep 2012
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 Posted: Thu Mar 21, 2013 4:25 pm Post subject: Sending money home - yearly limit? |
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I seem to remember being told (ages ago) that there was a yearly limit $30,000 maybe? by a KEB worker.
Is this right?
Now assuming you were in Korea for two years, could you send that yearly limit X2 back to your home country in one go, VIA the normal bank transfer process?
I don't really want people's 'theories' - but if anyone with direct experience can chip in, that would be great!  |
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ttompatz
Joined: 05 Sep 2005
Location: Kwangju, South Korea
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| Posted: Thu Mar 21, 2013 4:34 pm Post subject: Re: Sending money home - yearly limit? |
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| Lucas wrote: |
I seem to remember being told (ages ago) that there was a yearly limit $30,000 maybe? by a KEB worker.
Is this right?
Now assuming you were in Korea for two years, could you send that yearly limit X2 back to your home country in one go, VIA the normal bank transfer process?
I don't really want people's 'theories' - but if anyone with direct experience can chip in, that would be great! |
There never was a limit on how much you could send home.
There was a limit on how much you could send home without proof of legal employment and taxes paid. That limit used to be US$10,000.
That limit was raised in about 2006 to $50,000.
Many bank employees still use the $10,000 as a limit (since they have no clue) but if you press you can usually get them to actually check and get the correct answer.
If you are doing it via your on-line banking (and you have the proper paperwork in file with your bank) then $50,000 since the clerk at the counter is taken out of the equation.
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Lucas
Joined: 11 Sep 2012
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| Posted: Thu Mar 21, 2013 8:39 pm Post subject: |
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Thanks for the reply!
I have a KEB account (forget the name). But basically I go to the ATM and transfer money from my main account into the KEB one.
The KEB one then bounces it straight back into my UK account (after a couple of days to clear.)
Soooooo I *should* be able to transfer $50,000 of won in to my UK account in one transfer?
I was just worried that if I tried to send too much, it would go, but then get blocked somewhere in cyberspace and mean me having to deal with the bank! |
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ttompatz
Joined: 05 Sep 2005
Location: Kwangju, South Korea
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| Posted: Thu Mar 21, 2013 10:33 pm Post subject: |
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| Lucas wrote: |
T
Soooooo I *should* be able to transfer $50,000 of won in to my UK account in one transfer? |
No. Those were banking limits imposed by government.
Even though there are effectively no limits on how much you can transfer over time ($50k per year) there ARE daily account limits and those are typically much lower (depending on your account they can be as low as 2million won per transaction and as low as 5 million per day.)
They can also be much higher (5m per transaction and 10-50million krw per day) if you have a long standing account and strong credit rating at your bank.
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Lucas
Joined: 11 Sep 2012
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| Posted: Thu Mar 21, 2013 10:50 pm Post subject: |
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| Quote: |
| They can also be much higher (5m per transaction and 10-50million krw per day) if you have a long standing account and strong credit rating at your bank. |
Makes sense. Thanks! |
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thejasman1
Joined: 13 Sep 2010
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| Posted: Thu Aug 15, 2013 11:33 pm Post subject: |
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This was a great read and very useful!
I just wanted to update this thread as of mid 2013 for some of us who are finishing contracts this summer and are looking to send money home.
I recently went into KEB and Citi bank and i was told I only needed my passport and ARC card to transfer a maximum of $50,000 per year.
However, many of you haven't filed taxes in the U.S. or your respective countries for a few years since you have been in Korea.
From what I understand, the IRS could see a $50,000 lump some sent to your account as a red flag and you could face some serious consequences.
I'm curious if any of you have sent $50,000 home or a large some home and then been taxed again on that income and or faced some consequences by not filing taxes in the US or your home countries for a few years.
Please let me know! |
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ttompatz
Joined: 05 Sep 2005
Location: Kwangju, South Korea
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| Posted: Fri Aug 16, 2013 1:14 am Post subject: |
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| thejasman1 wrote: |
This was a great read and very useful!
I just wanted to update this thread as of mid 2013 for some of us who are finishing contracts this summer and are looking to send money home.
I recently went into KEB and Citi bank and i was told I only needed my passport and ARC card to transfer a maximum of $50,000 per year.
However, many of you haven't filed taxes in the U.S. or your respective countries for a few years since you have been in Korea.
From what I understand, the IRS could see a $50,000 lump some sent to your account as a red flag and you could face some serious consequences.
I'm curious if any of you have sent $50,000 home or a large some home and then been taxed again on that income and or faced some consequences by not filing taxes in the US or your home countries for a few years.
Please let me know! |
If you are NOT from the US then it is a non-issue. Non residents are NOT required to file or report on foreign earned income.
If you ARE from the US then you should have filed annually (as required by law; even if you are abroad) and taken the foreign earned income exemption (about $90k per year) so nothing would be due anyway.
If you are from the US and didn't file then the IRS is about to become a major fly in your ointment and you'll wish you weren't American.
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Xanetos
Joined: 23 Jul 2013
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| Posted: Fri Aug 16, 2013 11:05 am Post subject: |
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| ttompatz wrote: |
If you are from the US and didn't file then the IRS is about to become a major fly in your ointment and you'll wish you weren't American.
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This is the truth.  Make sure to file! |
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PRagic
Joined: 24 Feb 2006
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| Posted: Tue Aug 20, 2013 2:31 am Post subject: |
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You can send your entire salary after taxes to the US annually. Go to the tax office and get a copy of your income report, take it to the bank, and send it. And this is cumulative. So if you haven't sent any coin home for a few years, then you can go to the tax office, pull up a cumulative income statement, and then send that amount back regardless of the amount. I know because I've done it.
For undocumented transfers, then, yes, 50K per year is the limit, and this option does not accrue. But I believe you can send the undocumented 50K on top of your documentable transfers. Working on getting that info straightened out. That's the last we heard from mean Joe banker, though. |
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schwa
Joined: 18 Jan 2003
Location: Yap
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| Posted: Tue Aug 20, 2013 3:12 am Post subject: |
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| PRagic wrote: |
| So if you haven't sent any coin home for a few years, then you can go to the tax office, pull up a cumulative income statement, and then send that amount back regardless of the amount. I know because I've done it. |
Thats an interesting statement, first time I've heard it. Really no annual limit for transferring accumulated verifiable income out of Korea? I'm dubious.
[& what happens when I win the Lotto?] |
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ttompatz
Joined: 05 Sep 2005
Location: Kwangju, South Korea
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| Posted: Tue Aug 20, 2013 4:08 am Post subject: |
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| schwa wrote: |
| PRagic wrote: |
| So if you haven't sent any coin home for a few years, then you can go to the tax office, pull up a cumulative income statement, and then send that amount back regardless of the amount. I know because I've done it. |
Thats an interesting statement, first time I've heard it. Really no annual limit for transferring accumulated verifiable income out of Korea? I'm dubious.
[& what happens when I win the Lotto?] |
TAXED income.
If you can prove that you paid taxes on it (if or as required) as reported income then you can export it (otherwise direct foreign investment would be impossible - they'd never be able to repatriate the profits from business.
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Captain Corea
Joined: 28 Feb 2005
Location: Seoul
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| Posted: Tue Aug 20, 2013 5:41 am Post subject: |
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| I'll second what Tom is saying. The front clerks won't know, but if you go to a bank's HQ, and talk with their global remittance ppl, they'll give ya a better understanding of what can and can't be done. |
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PRagic
Joined: 24 Feb 2006
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| Posted: Tue Aug 20, 2013 4:40 pm Post subject: |
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| Thought I made that perfectly clear. Yes, taxed income. And you simply go to your local tax office for a cumulative (taxed) income statement. That official document is what you show them at the bank when sending back a lump of coin. |
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nate1983
Joined: 30 Mar 2008
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| Posted: Wed Aug 21, 2013 8:56 am Post subject: |
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| schwa wrote: |
Thats an interesting statement, first time I've heard it. Really no annual limit for transferring accumulated verifiable income out of Korea? I'm dubious. |
As ttompatz has also noted:
What sense does it make to have an annual limit? Do you know nothing about international capital flows? Many people working or investing overseas transfer hundreds of thousands or even millions of dollars a year across borders. And those amounts are miniscule compared to international payments made by corporations.
You can certainly transfer out more than your annual income in many situations as well - say you sold your apartment in Korea and wanted to remit the proceeds to your home country.
It doesn't make sense for a country such as Korea, which is well integrated into the global financial system, to have some ridiculous limit like that.
And by the way, a cashier at KEB probably knows little about this sort of thing. I used to work on the Asian currency trading desk at a bank in New York and know a thing or two - there ARE restrictions on offshore settlement of Korean won (so it and currencies such as Indonesian Rupiah, Malaysian Ringgit are traded through the non-deliverable forward market), and there is certainly paperwork involved for larger transfer amounts, but the concept of some limit, whether of $10,000 or whatever, is ridiculous. |
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tran.huongthu
Joined: 23 May 2011
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| Posted: Wed Aug 21, 2013 4:21 pm Post subject: |
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| Better send your money now if you are an American as the Fed is tapering QE and that is driving the dollar way up. |
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