Korean Job Discussion Forums

huntjuliehunt · Joined: 18 Oct 2006

I've exchanged my money twice. On the day of the exchange, I go to Universal Currency Converter, which is supposed to be accurate as of the minute. But both times, Shinsa bank took about 30,000-50,000 more Won than it said on the computer. Are they supposed to keep money when you make an exchange? What do you do if the up to the minute internet site says you get more than what they're telling you the exchange rate is?

ttompatz · Joined: 05 Sep 2005 Location: Kwangju, South Korea

thegadfly · Joined: 01 Feb 2003

Did you simply exchange money, or did you convert won to your home currency and wire the money home?

At the banks I have been to, the buying won rate is a bit under the market rate, and the selling won is a bit above the market rate (er, I think I have that right -- it might be the other way around). What I mean is, if the exchange is 1000 won to the US dollar (for me), and I am using US dollars to buy won, I might get 975-ish won to the dollar...maybe 985...but if I am using won to buy dollars, I may pay 1025 won for a dollar...maybe 1015...and that difference is the bank's cut.

I have noticed that wire transfers and cash exchanges have a higher margin -- 20-30 won difference per dollar - but buying traveler's cheques has a lower margin -- about 10-20 won per dollar. The wire transfer fee can be anything for 5000 won to 35000 won (in my experience), and then an additional fee at the destination bank. My bank here does not charge anything for the cheques, so I just get traveler's cheques and mail them like a normal check to pay my bills...I need to allow 14 days to get to Visa or SallieMae in the US, but everyone takes traveler's cheques.

Peter Jackson · Joined: 23 Apr 2006

The universal currency converter gives the mid-market rate. No exhange ever takes place at this number. Any bank that did would be losing money.

huntjuliehunt · Joined: 18 Oct 2006

Well that is kind of embarrassing. I complained at Shinsa the second time and put up a fight, and they ended up giving me the amount of money that the universal currency converter showed. I just thought I was being scammed.

So can you make this easy on me. Unless there is a way to pay my credit cards directly in this city, then I need to get money into my bank at home. What do I do to save the most money? And should I wait until my next pay day on November 15th to send two months' worth, or will I not save money by doing that?

Thanks.

kat2 · Joined: 25 Oct 2005 Location: Busan, South Korea

You will save money if yo ucan wait (assuming the fx rate stays the same of course). The bank here will charge you a fee (usually about 20,000) to send te money out. Your bank at home may also charge a fee for recieving a wire. Mine charges 10. So when my husband and I wire money, instead of doing 2 wires from each account, we just do one big one every few months.

spliff · Joined: 19 Jan 2004 Location: Khon Kaen, Thailand

bellum99 · Joined: 23 Jan 2003 Location: don't need to know

[quote="spliff"]

huntjuliehunt · Joined: 18 Oct 2006

Can you please explain why my being Canadian has anything to do with it? I'm not angry.. I just don't get the joke?

wylies99 · Joined: 13 May 2006 Location: I'm one cool cat!

The difference is what a bank charges to exchange money.

I'll bet A LOT of "others" are confused about this, too. These would be the "others" who didn't FEEL like going to college or those who slept through Finance 101.

Beej · Joined: 05 Mar 2005 Location: Eungam Loop

sadsac · Joined: 22 Dec 2003 Location: Gwangwang

The exchange rate can make a considerable difference on the worth of your money. I always ask what the rate is before I send money home. My wife and I will just leave it in the bank if its a lousy rate and send it home when its better. Smile

Return Jones · Posted: Fri Oct 20, 2006 5:31 pm Post subject:

Just check your bank's website before going in to change money. I'm not sure about Shinhan, but KEB has their rates updated in realtime on their site.