Korean Job Discussion Forums

yupkime · Joined: 03 Nov 2004 Location: Somewhere far away from Seoul

I have a lawyer cousin-in-law who looking to borrow some money maybe about 30-40 million won to add to the allowance his firm will give him so that he can move into a slightly nicer area and place than where he is now.

Since he is a foreigner the banks here in Korea are offering him about 8-9% interest and fixed repayment terms.

Is there any kind of finance service here in Korea that offers slightly less and more flexible payments? He will want to pay it off as soon as he can obviously. Something like an investment club or something?

I would think that many people might jump at the chance to get back something like 5-6% annually or so for a short term 1-2 year investment.

If you know of any, formal or informal then let me know!

yupkime @@ gmail.com

the_beaver · Joined: 15 Jan 2003

First time Korean homebuyers can get a one time loan of up to 60,000,000 with a maximum rate of 6% (although it fluctuates it doesn't go over 6%). If he has a really good Korean friend who doesn't and won't ever need that loan he can try that.

yupkime · Joined: 03 Nov 2004 Location: Somewhere far away from Seoul

Sounds good. Something to look into for sure.
But if I was Korean I would want to keep it just in case for later especially when you get married.

Kind of like the first-time homeowners grant in Canada.

Thanks for the suggestion. I'll let him know!

SuperHero · Joined: 10 Dec 2003 Location: Superhero Hideout

How can a foreigner get a loan? When my wife and I tried, my income didn't count because I was a foriegner and would likely leave the country? We ended up with a smaller loan based on her income.

What bank did your cousin-in-law go to? I would like to know more info.

queue up RR's link parade of why living in Korea sucks...

Homer · Guest

You can always go to the public bath, find the guy with the most tattoos and ask him for cash.

Or.

Go to T-street in Busan and find some tough looking Russians and ask them for a loan.

The again, you could ask your wife's parents (I assume she is Korean) to co-sign the loan. This might increase the amount.

Finally, you could save up for a few years and not need a loan at all.

SuperHero · Joined: 10 Dec 2003 Location: Superhero Hideout

itaewonguy · Joined: 25 Mar 2003

Squid · Joined: 25 Jul 2003 Location: Sunny Anyang

Caveat Emptor that advice Itaewon.

Who do you know would buy a car which cost you 20 for 20?...possibly a right mug but no-one else.

Borrow against local family capital's the only option hereabouts, unless you ship in money from the family "back home". If you're such a good credit risk, the rellies- here or there- should pitch in some backing.

itaewonguy · Joined: 25 Mar 2003

prairieboy · Joined: 14 Sep 2003 Location: The batcave.

My buddy bought an apartment with the help of a loan from ��. He saved most of his pay for 3 years and changed some of that into US$, which he kept in a foreign currency account.

He built up a good relationship with the teller in charge of foreign exchange and accounts. She helped him with the paper work. There is nothing in the bank rules that says they can't or shouldn't loan money to foreigners, it's just the lazy teller who doesn't want to deal with a foreign client.

The only downside is that he wasn't able to get as much of a loan because he is foreign. He was able to get about 60 million won. He makes payments monthly of about 350,000 won. I don't know the term of the loan.

It can be done if you take the time to build up your rep with a bank.

Cheers