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Korean Job Discussion Forums
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Bryan
Joined: 29 Oct 2007
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 Posted: Thu Feb 21, 2008 11:48 pm Post subject: Some investment in Korea questions |
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Can a foreigner purchase international equities in Korea? For example, a normal Index ETF not offered by the specific Korean bank as a mutual fund.
Is it better to just invest through a brokerage back home, even considering huge wire transfer fees? Consider a $35 transfer fee for each $2000 sent. That's nearly a 2% guaranteed initial loss that you will have to overcome. Do you have to pay withholding tax as well?
What is the capital gains tax rate on property in Korea, and on equities invested through a Korean bank? |
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Juregen
Joined: 30 May 2006
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| Posted: Fri Feb 22, 2008 12:12 am Post subject: |
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| Call your bank. |
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Bryan
Joined: 29 Oct 2007
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| Posted: Fri Feb 22, 2008 2:27 am Post subject: |
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| Juregen wrote: |
| Call your bank. |
Useless.
What bank? A Korean or foreign one? It's hard to get an account back home if you're a non-resident. Additionally, my posts related to both foreign and Korean brokerages.
Does anyone here invest? What do you use, a foreign brokerage or a Korean one?
I highly doubt there are so many people saving 10k+ per year and then just letting it deflate, or people who invest into everything but securities. I would have imagined you're all investing. |
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PRagic
Joined: 24 Feb 2006
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| Posted: Fri Feb 22, 2008 2:50 am Post subject: |
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| Set everything up on your next trip back to your hometown. You can wire the money directly into your account and do with it what you will. |
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BRawk
Joined: 14 Oct 2007
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| Posted: Fri Feb 22, 2008 8:12 am Post subject: |
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I, too, have been asking these questions. Everyone I have spoken with that invests in non-korean securities has done so through a non-korean brokerage.
Some people do invest in the Korean market through thier Korean banks. I have heard that there are no capital gains taxes for foreigners in Korea, but I can't confirm this.
Personally, I am uncomfortable with Korean securities, and I can't invest through brokerages in my home country of Canada because it could jeopardize my expat status. So I have started investing with Zecco. I have to wire the money, which hurts, so I try to do it in larger incraments than 2,000,000. Zecco seems good for me though. I'm pretty passive, and there are 10 free trades a month, so I basically don't pay them anything. |
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Bryan
Joined: 29 Oct 2007
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| Posted: Fri Feb 22, 2008 11:42 am Post subject: |
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| BRawk wrote: |
I, too, have been asking these questions. Everyone I have spoken with that invests in non-korean securities has done so through a non-korean brokerage.
Some people do invest in the Korean market through thier Korean banks. I have heard that there are no capital gains taxes for foreigners in Korea, but I can't confirm this.
Personally, I am uncomfortable with Korean securities, and I can't invest through brokerages in my home country of Canada because it could jeopardize my expat status. So I have started investing with Zecco. I have to wire the money, which hurts, so I try to do it in larger incraments than 2,000,000. Zecco seems good for me though. I'm pretty passive, and there are 10 free trades a month, so I basically don't pay them anything. |
Are you sure that simply having investments through a Canadian bank would make you a resident again?
I've heard of people that have property investments in Canada who live abroad and are still considered non-residents.
I am a Canadian too by the way. And yeah, I'm a passive investor and the thing I try to reduce most is the fees/costs associated with investing. That's why I don't like the idea of wiring money.
So the people investing through their Korean banks only invest in the Koraen market? There must be some regulations like those that exist in Canada--ie you can only buy an international ETF if a Canadian company supplies it to you, and then they did it with rediculous MER's.
Thanks for the info. |
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Bryan
Joined: 29 Oct 2007
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| Posted: Fri Feb 22, 2008 11:44 am Post subject: |
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| PRagic wrote: |
| Set everything up on your next trip back to your hometown. You can wire the money directly into your account and do with it what you will. |
Point of the thread was to try and avoid a guaranteed 2% initial loss. |
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PRagic
Joined: 24 Feb 2006
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| Posted: Fri Feb 22, 2008 5:34 pm Post subject: |
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| Ah, a Canadian. Take a trip to Hong Kong and set up an account there. There are other 'off shore' places where you can set up investment accounts, too, if you want to look around. HK is a great place to visit, and the banking is made easy there. |
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PRagic
Joined: 24 Feb 2006
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| Posted: Fri Feb 22, 2008 5:39 pm Post subject: |
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You can also:
1) Simply wire more money back, thus reducing the '2%' initial loss
2) Just use a bank draft transfer, which costs around 5 bucks. Mail it!
The important thing is that you invest, right? If you absolutely HAVE to get 2 grand into a stock ASAP, and you KNOW IT, then you should be an active trader! Think over the long term. Get your money to your investment house or bank the cheapest way you can, and work from there. Yes, most people ARE doing that. |
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BRawk
Joined: 14 Oct 2007
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| Posted: Sat Feb 23, 2008 8:18 am Post subject: |
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| Bryan wrote: |
| BRawk wrote: |
I, too, have been asking these questions. Everyone I have spoken with that invests in non-korean securities has done so through a non-korean brokerage.
Some people do invest in the Korean market through thier Korean banks. I have heard that there are no capital gains taxes for foreigners in Korea, but I can't confirm this.
Personally, I am uncomfortable with Korean securities, and I can't invest through brokerages in my home country of Canada because it could jeopardize my expat status. So I have started investing with Zecco. I have to wire the money, which hurts, so I try to do it in larger incraments than 2,000,000. Zecco seems good for me though. I'm pretty passive, and there are 10 free trades a month, so I basically don't pay them anything. |
Are you sure that simply having investments through a Canadian bank would make you a resident again?
I've heard of people that have property investments in Canada who live abroad and are still considered non-residents.
I am a Canadian too by the way. And yeah, I'm a passive investor and the thing I try to reduce most is the fees/costs associated with investing. That's why I don't like the idea of wiring money.
So the people investing through their Korean banks only invest in the Koraen market? There must be some regulations like those that exist in Canada--ie you can only buy an international ETF if a Canadian company supplies it to you, and then they did it with rediculous MER's.
Thanks for the info. |
No, I'm not sure it will jeopardize your expat status. I just filled out the forms however, and one of the questions was about Canadian investments. I'd love to know for sure.
But hiding something outside and away from Rev Canada seems like a good idea. |
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Nexus11
Joined: 29 Nov 2006
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| Posted: Sat Jun 14, 2008 6:27 am Post subject: |
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| Bryan wrote: |
Are you sure that simply having investments through a Canadian bank would make you a resident again? |
Maybe yes, maybe no. Revenue Canada doesn't have a definitive rule to follow. If they think you intend on returning to Canada, they consider you a resident. If not, you aren't. Some of the factors they consider are things like:
- do you have a driver's license?
- do you own a car?
- do you have a bank account or investment account?
- are you a member of any canadian clubs, unions, or organizations
- do you have personal belongings in Canada?
- do you return to Canada frequently? What is the nature of your visits?
- do you have health or auto insurance?
There are others too which I can't remember off the top of my head. However, no single one is a dealbreaker. They look at the big picture to determine whether or not you intend on coming back.
I imagine simply having an active bank account to pay your student loans from and a box of old tshirts in your parents' basement is fine. However, opening an RRSP account for retirement would probably be a big strike against you. |
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