Korean Job Discussion Forums

[Drew345]

I am wire transfering in a rather large sum on money from America to buy an apartment (small). The bank does give better exchange rates for wire transfer than for walk-in cash exchange. But still, they will be making about $5,000 (in exchange rate profits) just by accepting my wire.
One option is that I can wire the money into a US dollar account here; then find a better rate here in the country. Anyone know where to get a really good rate when transfering amounts big enough for (cheap) apartments. Would prefer not to deal with anything on Itaewon, for security.
Thanks,
Drew

[fusionbarnone]

Wow! You wanna bring money here? Is this for the bond or an actual purchase? I was thinking of doing the same in order to lease a villa on the beach but decided out of it due to tying up so much money for no return. The thought of someone using 70k of my money to borrow 700k in mortgages on rising values beyond 9% per annum(read:made back 70 in 12 months in increased/free equity-to borrow again) didn't appeal because that's what I'd like to do for myself.

Over the last two weeks I've wired 250k to the states from another country (not Korea) and hadn't given this much thought apart from the problem that could arise getting the money(greater than 10k) out of the country again. I've had sent sums from Korea disappear only to re-emerge miraculously due to my home bank's inquiries.Would really like to know how people get around this one?

The sending bank will give you the current rate and calculate the sum for you. If the money is coming directly from your account (I use telephone contact to my accounts) and it shouldn't cost you more than $20 from the sending bank and probably another 20+ bucks from the recieving one. Do get the recieving banks SWIFT number. Most banks have online chat directly with a bank representative so you can get your answers/essential phone numbers online.

Don't know how you will lose 5k though? Last week I made 30k on exchange rates. Don't sweat it as rates go up and down all the time. Be nice to be so flush that huge profits are made at every half-cent, wouldn't it?

[fusionbarnone]

BTW: Change won through your sending bank. Is the won that volatile these days? Just havn't been paying attention to stuff in this country.

[mercury]

[Drew345]

The loss that I would like to avoid is in the "spread" between the buying and selling exchange rates; this is where the banks make the profit and the people exchanging take a loss.
For example, if the "real" exchange rate is 930 won, then the Bank will sell a dollar for 940 won, and if you give them a dollar they will give you 920 won. They make 20 won for each dollar passing through their hand and the two people exchanging each lose 10 won. This is a small price to pay for the service that the bank is providing.
But when large amounts are involved, $250,000, then this small "spread" between the buying and selling rates become large profits for the bank and large losses for the people exchanging. For $250,000, each person exchanging would loose $2500.00 and the bank profits by $5000.00.
So big businesses and people changing big amounts usually go to private money changers, money changers that only deal in big amounts and offer a small "spread". I know such exists in some other countries, but not sure where such "large cash money changers" exist in Korea.
Anyway, yes it is certainly true that rates fluxuate and go up and down, but there is always this "spread". It is this spread that I am hoping to reduce a bit and save me some money.
It would also be nice to find Koreans who want to buy some dollars, thus totally eliminating the bank.
Thanks,
Drew

[bnrockin]

So what are the best recommended transfer methods with sending money from the U.S. to Korea and vice-versa?

[europe2seoul]

You can negotiate exchange rate to your benefit in the bank when doing large transfers.

What you talking about won? It just droped to an all-time-low, so its super-cheap to buy US$.