Korean Job Discussion Forums

[GoldMember]

Don't intend to be alarmist, but this is a very serious question.
Consider the following facts.
1. Banks themselves, borrow by issueing securities on the international money markets. These securities are effectively never paid off. Once they mature, the banks issue new promissory notes to pay off the old promissory notes. A huge amount of these notes is due to mature soon. The Korean banks can't issue new notes to pay for the old ones as no one wants them. There is a strong chance they may default.
2. Banks have borrowed, billions via the Yen carry trade. The yen has recently been rising strongly, causing losses on those carry trades, forcing banks to either pay back their Yen denominated loans, or take a loss.
3. Deposits in banks are at record lows, due to smart Korean investors, investing in stable and safe investments such as Chinese and Indian stocks, often with borrowed money.
4. Poor lending practices and lack of transperancy. A bank that has 4% of its loan portfolio non performing is considered a very badly run bank. During the IMF crisis a Korean bank was found to have 80%!! of its loans non performing.
5. The Korean government can't bail out the banks, their up to their arm pits in debt, and sitting on a huge portfolo of non performing loans from the IMF days.
6. Banks are struggling to come up with foreign currency DESPITE the Bank of Korea, supposedly holding huge exchange reserves.
The Bank of Korea itself has huge debts, and it's so called foreign exchange reserves are in the form of non liquid, and rapidly depreciating, treasuries, and worthless collatorized mortgages.

My wife would get phonecalls DAILY offering her loans, those calls have recently mysteriously dried up.

Better to hit the bank now and get your cash, before there's a huge queue out side the front door.

Don't think these dudes learnt anything about sensible financial practices, from the IMF experience.

[tomwaits]

I'd say a Korean bank is to have your pay deposited and use ATM. Any savings go home.

I wouls guess pretty safe though.

[shaunew]

I was researching this same topic. All the signs led to another financial crisis. You said it very well. I would like to add with the large chaebols running the country the way they did preIMF, they were forced to change their accounting practices but have gone back to the same way.(to hide slush money better). One more thing Korea has done backwards and IMF told them not to do is keep the banking system open to foreigners. If you don't believe me then go to your local bank and ask the nice teller for an International bank card and see what your response will be.

IMF laid out a long term "game plan" to follow. But surprise Korea is the way it was before 1997. I believe this with a real estate burst and the forex markets not in Korea's favor. As Goldmember mention above will create a huge mess. If you can stick it out and take advantage of the situation you will walk away a millionaire, while the Koreans will be jumping into the Han river again.

I guess Koreans have never learn from their past mistakes. This is a global economy now, you can no longer be the hermit and still export all of your goods. You have to bend the world won't. But I'm afraid they will break before they will even think of bending to adjust to foreigners.

[ernie]

this is a little bit of an aside, but i'm wondering if other people have had this experience, and also to warn others of another retarded thing "everyone in korea does"

i asked my school about my internet bill, and the folks at my school said that the company will withdraw the money directly from my account... here is the conversation:

me: "how can they do that without my account #?"
them: "we gave it to them when they installed your line"
me: "YOU gave them MY bank account number?!!!!"
them: "yes, that's what we do here... they can't take any money out of your account with that number anyway"
me: "so why did they need it?"
them: "um... you're right, but you just have to trust them that they won't steal your money, that's what everyone does here"

WHAT?! so can they or can't they take money out of my account with my account number? is it legal for my school to give other people my account number? who else can take my money now? i was adamant about NOT texting the school admin my account number, so i figured that they would understand that this kind of behaviour is a SERIOUS risk!

be careful: people in korea generally have ZERO understanding about how insecure things like cell phones and email are and are extremely naive re: the trustworthiness of companies!

[prairieboy]

change accounts

[Captain Corea]

[GoldMember]

Any proof?
Just read the Korean English language press.
Of course they do not anaylze the situation further, and lack the ability, or refuse to see the writing on the wall.
In addition check out Brendan Carr's Korea Law Blog, in it he mentions a number of builders are going to the wall.
Remember in Korea because of the el crapolla legal system it is very difficult to recover unsecured debts.

[exit86]

Hey ernie, can I have your bank account number too?
You gotta just trust me--even though you have no idea who I am
or all the things I am planning to purchase if you or your
employer hands over those digits.
Come on old sport, what do ya say ??????

[huck]

[ernie]

"Hey ernie, can I have your bank account number too?
You gotta just trust me--even though you have no idea who I am
or all the things I am planning to purchase if you or your
employer hands over those digits.
Come on old sport, what do ya say ??????"

hahaha this is probably all the internet company ever has to say to most koreans for them to give up the goods!

i gave the account number to my EMPLOYER so they could pay me! i never gave it to anyone but them! so does anyone know whether someone with my account number can withdraw money from my account? this is a heads up to everyone whose employer uses direct deposit, i.e. 99% of everyone on this board!

huck: ID theft and fraud are RAMPANT in this country, and i wonder about the probability of a foreigner winning a legal battle in this situation... yes, many companies DO rip off their customers, health clubs in canada being the prime example!

[Captain Corea]

[marmotkorea]

[Drew345]

Anyone know if Korean Bank accounts are insured? Like in America a bank account is FDIC insured up to $100,000. Even in Thailand the accounts are insured by the government, so this isn't just a USA thing.
I actually wouldn't mind holding more Korean won since the dollar seems to be loosing pace on the rest of the world about 5-10 % a year.

[Original]

Yes, Korean banks are insured.

[Ya-ta Boy]