Korean Job Discussion Forums

[jhuntingtonus]

Go to KEB (Korean Exchange Bank) and get an Easy-One Foreign Currency Remittance Account. Bring your passport, green card, regular Korean account bankbook, overseas bank name and street address, overseas 9-digit (may vary from country to country, or not??) bank routing number, and overseas account number. After opening the account (which at the downtown Jeonju branch I did completely in English with no problems), you will be asked if you want to transfer money - tell them the amount in won. Various people will get various fees (breakdown follows), but the money will be wired from your Korean account to your overseas account, within 24 hours if done in the middle of the week.

Here is the breakdown of what I paid. I asked for 5 million won to be transferred to an American account. The amount actually withdrawn was 5,001,300, the difference being what looked like an ATM-sort of fee (though the transaction was done at a desk). KEB subtracted 18,500 for their service charge, leaving 4,981,500, which was converted to US dollars at a rate of 1,129.40 per $1 - the Yahoo Currency exchange rate was 1,114.50, so that represented a fee of 65,719 won, or $58.97. The amount of US$20 disappeared along the way (a wire-system fee?), and my receiving bank took a $10 charge, meaning $4,380.75 was deposited.

In all, from the pure exchange rate there was a gap of 118,954 won, or $106.73, between the amounts withdrawn and deposited. Still, it was only about 2.4% of the total, and worked out to an effective exchange rate of 1,141.65, not shabby when you consider all the convenience. Smaller transactions would fare worse on a percentage basis, of course, and larger ones better.

The limit for "foreign worker's income remittance" is US$10,000 per transaction and $50,000 per year. You can also initiate these transactions from ATMs, but I didn't ask how. The remittance account, of course, never retains any money - it is only used for these transfers.

You can judge how well it would work for you, but to me it sure seems better than stuffing a money belt (after paying conversion charges anyway), buying one or more money orders, mailing them, hoping they arrive, waiting for delivery, waiting for clearance.

[The Gipkik]

Why not just use the KEB website and transfer money that way? The exchange rate is better. They only charge you 8,000 Won. You will still lose $20 at the other end: KEB overseas branch takes $10 and your bank takes $10. So in total, it's less than $28 lost. It's faster too.

[Solarian]

Favoriting this in my browser, very nice write up.

[egrog1717]

OR...

Get yourself set up with an overseas remittance account with KB* and use an ATM to send your money home... And pay a 5k fee (plus what your bank at home charges) instead of 18,500!... :S

Same paperwork involved, same documents required... Hell of a lot cheaper

[pkang0202]

KEB uses an intermediary when depositing money into a US Bank account.

For example, I bank with Bank of America and I have free incoming International Wire Transfers for being a good BoA customer for many years.

However, when I send money via KEB, the money goes from KEB to JP Morgan to BoA account. So, according to BoA, it is an incoming domestic wire transfer from JP Morgan to BoA.

So, I'm not sending money home via KEB anymore. I know Woori Bank deposits the money directly into my US bank account and doesn't use a middle man.

[davai!]

why not mail yourself Travelers' Checks? There are no fees, other than the cost of the envelope and stamp. Waiting time 1 week.

It looks like you paid 106 bucks for this transfer. If you do this 3 times a year it becomes 318 bucks.

But you're right. Your way is much better than sending it, for free.

[Solarian]

I'd personally never feel comfortable mailing money. I don't care how free it is, there's always the possibility of losing all of it. $106 for peace of mind is chump change.

[dazzed]

Aren't traveler's checks insured?

[pichon]

No never mail any valuable documents like traveller checks

[flakfizer]

[Hyeon Een]

[jhuntingtonus]

There's no way around exchanging the money, so over half of the $106 can't be avoided.

[machinoman]

[English Matt]

[wormholes101]

As far as my experience goes, TCs don't usually have as good an exchange rate as cash does. What you gain on transfer fees may be lost on the TC exchange rate.