Korean Job Discussion Forums

Yesterday · Last edited by Yesterday on Mon Feb 04, 2008 8:32 am; edited 1 time in total

Ok - guys...

you know me..

I do stupid things sometimes...

Recently, I got a Samsung credit card..

It has a 5 million won limit...

I do NOT understand HOW they work...

with purchases - I get many discounts...

and what I purchase is just paid back (taken out of my account the following month)....

BUT - for those of you who have these cards and use them... and who may have taken "Cash advances" please tell me WHAT HAPPENS???

I was discussing it with my Korean-co-teacher - and she said the "Interest Rate" on "Cash Advances" is between 20%~30%)...

and she told me me NEVER to take a CASH ADVANCE...

SHE TOLD ME that the interest rate on "Cash advances" is 20%~30%...

but I do not understand is that worked out monthly - or yearly?

(because these "Korean credit cards have to be paid back each month)

does that mean - if I got a cash advance of 1 million - NEXT MONTH do I have to pay back 1.2~1.3 million won?

or is the 20%~30% (yearly) meaning 200.000won~300,000won / 12 months = 16,666~25,000won....

will I have to pay back 1.2~1.3 million won next month
or

is it divided by the 12 months and i only have to pay back -
1.016,666~1.025,000won... next month???

any advice will put my SOUL at ease...

I am worried after what my Korea-co-teacher told me...

.

if you know anything let me know

(trolls not invited to post)...

.

Corky · Joined: 06 Jan 2004

Think of it as an AMEX that gives you the opportunity to pay back over a few months if you request it at the time of purchase. Shop at E-Mart a lot, and Samsung.

Everything gets paid back at the end of the month unless you arrange it beforehand. There is no leeway.

Cash is charged interest from the point of withdrawl. You'll hardly even notice it. 20 bucks maybe.

Credit cards are evil however.

Yesterday · Posted: Mon Feb 04, 2008 8:34 am Post subject:

so if I took out 1 million in cash advances this month..

does that mean next month - I only have to pay back 1, 025,000won?

??

Corky · Joined: 06 Jan 2004

Taking out a million in cash means that you'll cut next month's salary in half, so I don't recommend doing it. But yeah, it won't cripple you to get a cash advance.

Yesterday · Posted: Mon Feb 04, 2008 9:52 am Post subject:

thanks for your help - but what I don't understand..

because my Korean-co-teacher is confusing...

will I have to pay back

1,250,000won

or
1,025,000won

??

(the second one I am quite happy with - but the way my Korean-co-teaher spoke today - it made me think she meant the first one)....

Col.Brandon · Joined: 09 Aug 2004 Location: Seoul

They have English speaking help desk staff. Why not just call them and get the info straight from the horse's mouth?

IlIlNine · Joined: 15 Jun 2005 Location: Gunpo, Gyonggi, SoKo

I thought the question was fairly simply stated - and yet nobody has even tried to answer it... I can practically feel the OPs frustration.

OP:
It's worked out yearly - don't worry. You're not going to be on the hook for 1.2 million won if you take the cash advance of 1 million.

Further, it depends on the date you withdraw the money, so you're only responsible for interest on the length of time between withdrawing it and paying it back - usually less than a month.

So yeah, you'll be on the hook for 20,000 give or take.

Korean hysteria with cash advances is similar to that of 500,000 won monthly rent. Also, they probably know someone (or they themselves) that have been burned by credit cards in the past. Still - you should listen to their advice because, well .. it IS a waste of money. Just wait 'till you get paid!

Pyongshin Sangja · Joined: 20 Apr 2003 Location: I love baby!

babtangee · Posted: Mon Feb 04, 2008 3:42 pm Post subject:

dr. love · Joined: 09 Oct 2007 Location: Seoul

The interest will be about 25 000 won for one month if you take out
1 000 000.

If you have any questions call their english help line at
02-2000-8438

Mr. Pink · Joined: 21 Oct 2003 Location: China

It amazes me no one suggested this:

Take a 100k cash advance and wait a month to see how much interest they will stick you for.

Simple huh?

Hollywoodaction · Joined: 02 Jul 2004

cunning_stunt · Joined: 16 Dec 2007

Sound financial advice would be only using your card to make bigger purchases which you pay off over 3 months or less . For Samsung for these you pay no interest as long as you pay it back in 3 months . But I used my card on a trip (because it's visa) and the interest for the cash advance was minimal . I think about 12 000 for 300 k . I get financial advice my my younger korean "adjumma" friends all the time that could be described as penny pinching . Total shock that I'd not walk the extra 300 metres to use my owns banks ATM to save a thousand won .

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

I use my Samsung card locally in town for food shopping and on the rare occasion me and my wife have spicy chicken out. Run up about 500,000 per mo and it all comes out a day after pay day w/ ZERO interest withheld. It's much easier than dealing w/ cash....pretty damn nice I say.

Kimchieluver · Joined: 02 Mar 2005