Korean Job Discussion Forums

endofthewor1d · Joined: 01 Apr 2003 Location: the end of the wor1d.

i'm sorry if this question has surfaced before. i've done a brief search and came up empty for exactly what i was looking for. anyway... today is my birhthday, so don't give me any flak.

i've been married a couple months now, and we're looking to the future. so i'm interested in getting into the stock market, mainly to invest in mutual funds, but with a little on the side to play around with individual stocks. what is the best way to go about doing this from korea?

i'm in the states right now, but i'll be coming back to korea on saturday. i've called charles schwab and tdwaterhouse, but because of katrina, neither of them currently have offices in the new orleans area. i attempted to fill out an online application, but it was denied because i'm not a u.s. resident and i don't work in the u.s. so i'll have to fill out a paper application if i want to go that route.

that's simple enough, but are there better routes to take? those of you who have already been through this, what did you do?

another question about taxes. let's say i have a good run, and 15 years from now i've got stocks and funds worth $1,000,000 u.s. since i'm not living in the u.s., i'd prefer that the u.s. government not swipe half of it from me when i cashed it in. how does that work?

anyway... i'm new to all of this, but i'm ready to dive in. what is my best option? thanks.

laogaiguk · Joined: 06 Dec 2005 Location: somewhere in Korea

Happy Birthday to you,
Happy Birthday to you,
Happy Brithday dear endofthewor1d,
Happy Birthday to you Wink

I know nothing of stocks or how to to avoid taxes though, sorry Sad

Dan The Chainsawman · Joined: 05 May 2005

Hmm... tell you what dude I will ask for you at the Seoul Investors meeting this weekend. Stay tuned!

HapKi · Joined: 10 Dec 2004 Location: TALL BUILDING-SEOUL

It is true that overseas American citizens are exempt from paying US federal income tax on up to $80,000, but as I understand it, that DOES NOT pertain to income you are generating in the States (mutual funds, property, etc.)

For example, I have several mutual funds back home that are generating income. I am not exempt from taxes on those just because my residency is Korea. As a side note, all Americans are still required to file an income tax return, even though they live in Korea.

Concerning "a little money on the side to play around with," I would recommend waiting till you come back to Korea. With an ARC card, you can sign up at a Korean brokerage house and have at it.

A very recent article in the Herald Tribune, "Even after rally, the Kospi may be cheap," cited Morgan Stanley as recommending, "investors buy shares of technology companies like LG.Philips LCD and Samsung Electronics...also picked lenders like Kookmin Bank and Shinhan Finacial Group...and retailers including Hyundai Department Store and CJ Home Shopping."

The Kospi was Asia's best performer last year, and signs say that comsumer spending and exports will continue to be strong in 2006.

endofthewor1d · Joined: 01 Apr 2003 Location: the end of the wor1d.

laogaiguk, thank you for the happy birthday wishes. it has indeed been a happy birthday.

dan, thank you in advance for forwarding my questions. let me know if you find out anything different or in addition to what hapki has given me.

HapKi · Joined: 10 Dec 2004 Location: TALL BUILDING-SEOUL

First, a quick clarification. Paying taxes on mutual funds you might have in the States is only when you sell them. You only generate income when you sell them, so only holding on to them year after year, and putting in extra cash when you have it, you don't pay tax on that. Only when you sell.

To try and answer some of your questions. BTW- I am not an expert on this, as some others may be. My mom's a financial planner, which is where I learned a lot, as well as jumping in here in Korea.

JZer · Joined: 13 Jan 2005 Location: South Korea

HapKi, Can you maintain a Korean brokerage even if you move to another country? Or would you have to sell when you no longer have an ARC card?

HapKi · Joined: 10 Dec 2004 Location: TALL BUILDING-SEOUL

Once I set up my account, they ceased being interested in my ARC. I may have had to show it to them to prove who I am, as a form of ID, but thats it. Certainly not to prove that I currently have a job. The two go hand in hand, though, I realize that.

I've been told that if we left Korea, nothing would change as far as keeping my account. I suppose just changing my ARC ID to an American passport number or something. I don't know for sure. Like I said, I was given a program to allow me to do everything at my home computer (that I've never used). Unitl now, I've gone in and done my buys/sells face to face. You could call in your orders, as well, though I've never done that, either.

If you're interested in the program to do trading at home, make sure the brokerage house (and branch you use) has an English version for you.

Owning shares of Samsung Electric and others, I was given invitations to shareholders meetings, though I can't think of a more boring way to spend the afternoon. Also, dividends are given out occasionally, which are deposited into your account.

Son Deureo! · Joined: 30 Apr 2003

That sounds pretty good, but will you be able to cash out from outside of Korea?

JongnoGuru · Joined: 25 May 2004 Location: peeing on your doorstep

HapKi · Joined: 10 Dec 2004 Location: TALL BUILDING-SEOUL

I've bookmarked this site for up-to-the-minute Korean stock prices.
http://bestez.com/english/

Click Market, and then on the left side, Company. With the magnifying glass you can search for the Korean stock you want.