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Wad
Joined: 19 Nov 2007
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 Posted: Fri Jun 20, 2014 6:22 pm Post subject: Still keeping a Korean bank account after leaving Korea? |
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| Is it possible to leave money in a Korean bank account after you have left the country permanently? In other words, could I leave money in a term deposit for a year or two until I decide where I will live or where I will deposit the money? I'm not planning to return to my home country Canada, nor do I want to deposit my money there for obvious tax reasons. |
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ttompatz
Joined: 05 Sep 2005
Location: Kwangju, South Korea
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| Posted: Fri Jun 20, 2014 6:42 pm Post subject: Re: Still keeping a Korean bank account after leaving Korea? |
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| Wad wrote: |
| Is it possible to leave money in a Korean bank account after you have left the country permanently? In other words, could I leave money in a term deposit for a year or two until I decide where I will live or where I will deposit the money? I'm not planning to return to my home country Canada, nor do I want to deposit my money there for obvious tax reasons. |
You can but:
- Banking rules change and so do on-line services.
- It may become problematic exporting it after the fact (a few years into the future) without a return trip to retrieve it.
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schwa
Joined: 18 Jan 2003
Location: Yap
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| Posted: Fri Jun 20, 2014 9:02 pm Post subject: Re: Still keeping a Korean bank account after leaving Korea? |
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| Wad wrote: |
| ... I'm not planning to return to my home country Canada, nor do I want to deposit my money there for obvious tax reasons. |
What "obvious tax reasons" would those be? If you've paid Korean income tax on legal work here & dont have significant ties to Canada then your savings are yours to deposit freely wherever you want. |
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Wad
Joined: 19 Nov 2007
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| Posted: Sat Jun 21, 2014 1:53 am Post subject: Re: Still keeping a Korean bank account after leaving Korea? |
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| schwa wrote: |
| Wad wrote: |
| ... I'm not planning to return to my home country Canada, nor do I want to deposit my money there for obvious tax reasons. |
What "obvious tax reasons" would those be? If you've paid Korean income tax on legal work here & dont have significant ties to Canada then your savings are yours to deposit freely wherever you want. |
Offshore bank accounts don't tax on interest earned unlike Canadian banks. |
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Wad
Joined: 19 Nov 2007
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| Posted: Sat Jun 21, 2014 1:57 am Post subject: Re: Still keeping a Korean bank account after leaving Korea? |
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| ttompatz wrote: |
| Wad wrote: |
| Is it possible to leave money in a Korean bank account after you have left the country permanently? In other words, could I leave money in a term deposit for a year or two until I decide where I will live or where I will deposit the money? I'm not planning to return to my home country Canada, nor do I want to deposit my money there for obvious tax reasons. |
You can but:
- Banking rules change and so do on-line services.
- It may become problematic exporting it after the fact (a few years into the future) without a return trip to retrieve it.
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Return trip no problem. However I do see paperwork and bureaucratic headaches. Thus the question. |
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tob55
Joined: 29 Apr 2007
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| Posted: Sat Jun 21, 2014 10:03 pm Post subject: |
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Your open Korean bank accounts will remain intact for 7 years whether you are in the country or not. If no activity has been made in the said account(s) after 7 years they will be closed by the banking institution with whom they were set up. The law used to be that accounts would remain open indefinitely, then a few years ago the Ministry over the banking and finance industry changed the rules to a seven year period.
So if you are going home with no plans to return, your funds will remain in said account for up to the next 7 years. This is what I know to be true at this point. I asked two separate bankers in two of the more commonly used banks that I have accounts and was told the same thing. |
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kimchi_pizza
Joined: 24 Jul 2006
Location: "Get back on the bus! Here it comes!"
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| Posted: Sat Jun 21, 2014 11:03 pm Post subject: |
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Keep it open, it'll be fine~ No matter where you go, HERE you are. You'll be
back. Don't lose that passport or bank book. Still insecure, convert your money to U.S.
currency and open a 'U.S. dollar account'(?) that ONLY saves U.S. dollars (no interest) and you
can access it when you need it in country, but I don't recommend doing that at least right
now Or this is the best time~! The Won is strong with this
one~~
Banks always like it when money is left behind. |
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Weigookin74
Joined: 26 Oct 2009
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| Posted: Sun Jun 22, 2014 2:27 am Post subject: |
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If it's just a savings account, I wouldn't worry. They don't pay too much interest anyways. It's only if you have large amounts of money invested in the stock market would Revenue Canada be looking for their cut. Move the money to Canada and keep it in your account there. Safer and more secure anyhow. Interest on savings is so pitiful that your taxes would be next to nothing. When you go abroad again, you can open whatever bank account you to abroad again. But always keep that account open back home in case you need to get out your new country quickly.
I maintain banking with RBC and TD. I have savings accounts, checking accounts, credit cards, and a recently opened online trading account. (Though the trading account isn't being used yet. I don't think you can trade stocks and bonds here globally with the same ease as back home. Also, the websites here wouldn't be in English anyhow.) |
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Wad
Joined: 19 Nov 2007
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| Posted: Sun Jun 22, 2014 7:43 am Post subject: |
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| Weigookin74 wrote: |
If it's just a savings account, I wouldn't worry. They don't pay too much interest anyways. It's only if you have large amounts of money invested in the stock market would Revenue Canada be looking for their cut. Move the money to Canada and keep it in your account there. Safer and more secure anyhow. Interest on savings is so pitiful that your taxes would be next to nothing. When you go abroad again, you can open whatever bank account you to abroad again. But always keep that account open back home in case you need to get out your new country quickly.
I maintain banking with RBC and TD. I have savings accounts, checking accounts, credit cards, and a recently opened online trading account. (Though the trading account isn't being used yet. I don't think you can trade stocks and bonds here globally with the same ease as back home. Also, the websites here wouldn't be in English anyhow.) |
While I admit there is some merit in what you say, currency conversions from say Won to $CDN to $USD can take whopping chunks. Poor interest rates are also another reason to not put the money into Canadian Banks. Interests rates can be considerably higher offshore, albeit with somewhat higher negligible risks, and without any taxation at all.
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Wad
Joined: 19 Nov 2007
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| Posted: Sun Jun 22, 2014 7:49 am Post subject: |
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| tob55 wrote: |
Your open Korean bank accounts will remain intact for 7 years whether you are in the country or not. If no activity has been made in the said account(s) after 7 years they will be closed by the banking institution with whom they were set up. The law used to be that accounts would remain open indefinitely, then a few years ago the Ministry over the banking and finance industry changed the rules to a seven year period.
So if you are going home with no plans to return, your funds will remain in said account for up to the next 7 years. This is what I know to be true at this point. I asked two separate bankers in two of the more commonly used banks that I have accounts and was told the same thing. |
Thanks...I figure I will retire somewhere in S.E. Asia so until I have a definite residence I might just leave the money in a 2 year term deposit.
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Weigookin74
Joined: 26 Oct 2009
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| Posted: Sun Jun 22, 2014 3:32 pm Post subject: |
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| Wad wrote: |
| Weigookin74 wrote: |
If it's just a savings account, I wouldn't worry. They don't pay too much interest anyways. It's only if you have large amounts of money invested in the stock market would Revenue Canada be looking for their cut. Move the money to Canada and keep it in your account there. Safer and more secure anyhow. Interest on savings is so pitiful that your taxes would be next to nothing. When you go abroad again, you can open whatever bank account you to abroad again. But always keep that account open back home in case you need to get out your new country quickly.
I maintain banking with RBC and TD. I have savings accounts, checking accounts, credit cards, and a recently opened online trading account. (Though the trading account isn't being used yet. I don't think you can trade stocks and bonds here globally with the same ease as back home. Also, the websites here wouldn't be in English anyhow.) |
While I admit there is some merit in what you say, currency conversions from say Won to $CDN to $USD can take whopping chunks. Poor interest rates are also another reason to not put the money into Canadian Banks. Interests rates can be considerably higher offshore, albeit with somewhat higher negligible risks, and without any taxation at all.
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Savings interest is low in Canada. But, it's only slightly higher here. As for a lot of money offshore, if the government catches you, there will be a penalty. Thankfully, they aren't as ridiculous as the IRS.
Stocks and bonds are the better vehicle to save for retirement if you know what you're doing.
Intrest income will be paltry and that part of the income tax will be nothing. Dividends or interest from bonds, T Bills, Coroporate bonds might be more taxable along with capital gains taxes if share prices rise dramatically when you sell them. Though I use to ehar years ago you were allowed to make 100,000 dollars in capital gains in a lifetime before you had to pay taxes on them. Not sure what the case is nowadays. |
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Wad
Joined: 19 Nov 2007
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| Posted: Sun Jun 22, 2014 7:52 pm Post subject: |
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| Weigookin74 wrote: |
| Savings interest is low in Canada. But, it's only slightly higher here. As for a lot of money offshore, if the government catches you, there will be a penalty. Thankfully, they aren't as ridiculous as the IRS. |
I believe this might be true if I was a resident of Canada, which I've not been for 25 years. Interest rates are about double in Korea vs. Canada at the moment and the Won is appreciating everyday. However long term I would not be keeping my money in Korea since I will be living in S.E. Asia.
| Weigookin74 wrote: |
Stocks and bonds are the better vehicle to save for retirement if you know what you're doing. |
Depending on where you put your money, term deposits can pay quite a bit of interest. For example MFI's in Cambodia are paying upwards of 8% interest on one year $USD term deposits. 10% on KHR term deposits. And yes there are risks involved, but no more so than high risk bonds or stocks.
| Weigookin74 wrote: |
Intrest income will be paltry and that part of the income tax will be nothing. Dividends or interest from bonds, T Bills, Coroporate bonds might be more taxable along with capital gains taxes if share prices rise dramatically when you sell them. Though I use to ehar years ago you were allowed to make 100,000 dollars in capital gains in a lifetime before you had to pay taxes on them. Not sure what the case is nowadays. |
Again I believe this would be dependent on residency in Canada.
Anyway...thanks for the input. Too much information is never a bad thing when it comes to money.
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