Sending/Transferring Money Home (FAQ)

[turningsteel]

So I am nearing the end of my contract and my school is going transfer me my severance etc.  as I am using vacation to leave before my end date. I have a remittance account with NH and really just want to leave it open when I leave and give them that account number. No fees and it is easier. From what I have read no one seems to have had any issues with keeping a bank account open...but I am still nervous. Especially since I plan on visiting Korea next year a couple times. Will this create any issues? Also my CT is very over protective and when I sort of mentioned this she said no, you will not have a bank account because you will close it. But I don't want to haha.

Is it better to just close my accounts and have them do a one time transfer at the bank which is riskier and has fees? Has anyone ever had issues leaving accounts open and returning as a tourist or the bank not processing the transfer etc?

You have NH One? Just have them put the money in your NH One Acct. and it'll get zapped straight into your account in you home country. Don't close the account. Especially if you're going to be coming back to Korea within the next few years.

[chelly90]

So I am nearing the end of my contract and my school is going transfer me my severance etc.  as I am using vacation to leave before my end date. I have a remittance account with NH and really just want to leave it open when I leave and give them that account number. No fees and it is easier. From what I have read no one seems to have had any issues with keeping a bank account open...but I am still nervous. Especially since I plan on visiting Korea next year a couple times. Will this create any issues? Also my CT is very over protective and when I sort of mentioned this she said no, you will not have a bank account because you will close it. But I don't want to haha.

Is it better to just close my accounts and have them do a one time transfer at the bank which is riskier and has fees? Has anyone ever had issues leaving accounts open and returning as a tourist or the bank not processing the transfer etc?

You have NH One? Just have them put the money in your NH One Acct. and it'll get zapped straight into your account in you home country. Don't close the account. Especially if you're going to be coming back to Korea within the next few years.

I'm guessing it is an NH One account...It is an account the automatically transfers the money to my US account which sounds like the exact same thing. But ok Thanks I thought leaving it open would be the best option I just was paranoid about it messing with me entering as a tourist later on or something. I don't plan on moving back to Korea just visiting from where I will be living (China). I will just give that info to my school for them to transfer me my money after I leave. Thanks

[Pecan]

You can leave your bank account open after you leave Korea. It will automatically close after 4-5 years of no bank activity in your account.

Yeah, I learned that lesson the hard way.  Granted, it was only 200,000+ KRW, but still.

I went to the bank, and they told me that account number didn't exist, and I was like her is my ID and bank book... Where is my money?

Kind of criminal, if you ask me, but I didn't know the policy two decades ago.

[eleven11punk]

I have a similar question....I'm leaving Korea soon as well. I'd rather have my school put my severance/flight money and all that in my korean bank account (citibank) so I can have less transfer fees and wait for a good exchange rate.

Anyone have experience still using the internet banking to transfer money back home after they leave Korea? I just want to make sure it'll still work after I've given up my ARC and all that.

I have the same question.

Long story short, I have a citibank korea account and my wife has an NH korea account (no joint accounts are allowed apparently). I have internet banking with both of them and typically transfer NH korea to Citi bank korea, then take our combined sum and transfer online to Citibank US.

It's not a remittance account but I make the transfers online as I please with no fee.

Our severance and other crap will be transferred to NH and Citibank korea respectively after we leave Korea.

The question: Has anyone had luck accessing NH and Citibank korea websites while abroad in the US?
It works fine here, but ya know, it's always something that doesn't work....(and no, I don't have an international credit card with the banks and no, not getting into that story)

[gideonvasquez]

The question: Has anyone had luck accessing NH and Citibank korea websites while abroad in the US?
It works fine here, but ya know, it's always something that doesn't work....(and no, I don't have an international credit card with the banks and no, not getting into that story)

I used NH's website in February in the U.S. to check my balance and send some money to my Hana exchange account. It worked but I heard some people had trouble doing more complex things overseas like resetting a password which can require in-person interaction.

[eleven11punk]

Great! Well i wont need to change anything....just transfer. Ill prob just leave a usb here with a friend that has a banking cert on it just in case.

[margaretagnes]

Looking for some help with transferring money back to the US. I use Daegu bank here in Korea and the rates seem quite high to send money back through them. I plan to send large amounts back home ($5,000+) so I am looking for a low % and/or if possible one flat rate to pay for the transfer or wire.

Please let me know!!

Thanks!!!!

[gavinmoore]

Alright I'm really just trying to reach the 5 post count so I can message, but I figured I'd add my two cents to this thread since I've been reaearching this topic the last few months...

So, more than half of the posts on threads like these about transferring money will recommend you go through some sort of remittance method through a bank. They have a variety of fees and conveniences.
 The best one seems to be Citi's Global Transfer option which is apparently very fast and doesnt have any fees upfront. (Btw, always remember to use a VPN when opening an account back in the States.) All in all, banks are best for sending money back multiple times a year which might be necessary for paying off student loans, etc.

That being said...the downfall of these methods, and really anytime you deal with profit-seeking corporations such as banks, is that they always charge extra, even though its not transparent. They way they get you in this case is by having a spread of 2-3% off of the current market exchange rate. Therefore, exchanging $10,000 worth of won will end up costing you a hidden $200-300. They won't tell you this spread; the most they will allow is the exchange rate they use which is again somewhere between 2-3% off the market rate.

Alternatives I've looked into are:

1.Finding a money changer with a near market rate and...
          a) taking the money with you back home (note that you can carry over $10,000 with you on the flight,  but be sure to declare it. I haven't extensively researched this but I've read a few places online saying you won't be charged or taxed for doing this.) I would do this, but I plan on backpacking for a few months before I return home.
          b) Use a money transfer service like Western Union/Moneygram. (At the time of this writing Transferwise isn't accepting won.) Online estimates for Moneygram, the alleged cheaper option, have quoted me at around $300 which is just as bad as banks.

2.Using Bitcoin. So I actually tried this method at first and it was a hassle, mainly the setting up of an account for a bitcoin exchange back in the States. It essentially involves opening an account in Korea- korbit.co.kr (easy, intuitive) and then an account back in the US. There are a number of options here. I tried Gemini and Coinbase (again, can't stress VPN usage enough). Then you buy BTC on Korbit, transfer it to a wallet attached to your US account, sell the BTC and then transfer it to your account stateside.
Minimal fees (altogether around $3 if I recall correctly) for the entire transfer process, start to finish. Kind of a hassle to set up, but a fairly quick transfer process (~45min) and you traded at a market rate, right? WRONG. Korean BTC actually trades at a premium to other BTC exhanges so it cost more won to buy it leaving you screwed over with another bad rate of exchange. Anywhere from a 10-30% premium, in fact. Yea, I was not too happy when I found this out after having went through with a $500 test run.
This does, however, mean arbitrage opportunities are available for BTC in Korea. You would be buying the cheaper BTC on your US exchange and transferring it to Korbit. But that's a whole 'nother topic.

3. Paypal
Haven't looked into this much, but it doesn't seem very promising, as fees and a non-market exhange rate are apparently present. It involves opening a Korean paypal account and associating it with your Korean bank.

4. Cashier's Checks
I'm interested in the claims made by waygook user "Pecan" regarding cashiers checks as a method of exchange. He/she seems to sware by it in this thread (pages 12-14) but doesn't give details about the specific rate of exchange offered. I would also like to confirm that these cashier's checks are not considered foreign instruments, as they are issued by Korean banks, even though they are issued in USD (as most US banks won't allow foreign money instruments). At the moment, Pecan seems to be muted, likely from his/her inflammatory responses earlier in this thread. I will do my best to update you all on anything I learn from our private messaging conversation.

Good luck to you all!

TL;DR
Banks charge absurd hidden spreads when you exchange money with them even if their upfront fees are minimal/nonexistent.
Your best alternative if you are leaving Korea and withdrawing all of your earnings is to find a money changer in Seoul  (Myeongdong, Itaewon, Namdaemun) with a near-market exchange rate and take the physical notes with you back home.

[teacher1988]

@Pecan, I'm also interested in the preferred rates you're talking about via cashier's check. As you haven't given any hard numbers, it's difficult to compare the two.
I know the numbers fluctuate but can't you give an approximation? For example I do Shinhan and they have an 18k fee for remmitance, 50-70% "discount" from their quoted rates, which are usually about 1% spread, so 0.5-0.3% spread after applying discounts, and a receiving fee for wiring.

At the current xe.com rate of 1121.79:
(A): The completely no fees rate is $10,000 * 1121.79 =  11,217,900원

Shinhan would cost:
11,308,900원 @ 0.5% spread; 91,000원 more than (A)
11,297,666원 @ 0.4% spread; 79,766원 more than (A)
11,286,431원 @ 0.3% spread; 68,531원 more than (A)
This assumes 18k remittance fee, and $15 receiving fee.

Cashier's check would cost:
11,340,079 @ 1% spread; 122,179원 more than (A)
11,328,861 @ 0.9% spread; 110,961원 more than (A)
11,317,643 @ 0.8% spread; 99,743원 more than (A)
11,306,425 @ 0.7% spread; 88,525원 more than (A)
11,295,207 @ 0.6% spread; 77,307원 more than (A)
11,283,990 @ 0.5% spread; 66,089원 more than (A)
This assumes 10k fee for the check, and no receiving fees.

We can see that the check method is without a doubt the best, assuming 0.5% spread. But as you haven't given us any info on the preferred spread, it's hard to judge. If it's 0.8% or worse, then clearly Shinhan, even at the initial 0.5% is better. If it's 0.7%, we're starting to see benefits.

[pohangster]

TL;DR
Banks charge absurd hidden spreads when you exchange money with them even if their upfront fees are minimal/nonexistent.
Your best alternative if you are leaving Korea and withdrawing all of your earnings is to find a money changer in Seoul  (Myeongdong, Itaewon, Namdaemun) with a near-market exchange rate and take the physical notes with you back home.

I don't think think withdrawing all your cash and finding a money changer is going to be the best method.  I highly doubt you will find someone willing to exchange your cash at the market rate or even near it, although I haven't looked into this so if you find someone be sure to let us know!  Exchanging currency is a service and no firm has an incentive to provide the service for free.  The "hidden exchange fee" you speak of isn't really that hidden.  You can see the rates for buying cash, selling cash, receiving remittances, and sending remittances on any of the bank websites or on a big screen at the bank.  The market rate will be between the rates for buying and selling.  So it's pretty clear that you're not going to get the market rate.  The rate for sending remittances is always better than the rate for buying cash.  I'm guessing this will be true for money changers other than banks but I have no proof of this.  The best we can really do is minimize other remittance fees such as wire transfer fees, and intermediary bank fees which is why I use Citibank, because there aren't any.  I don't think the percentage you pay for an exchange fee is as high as you said.  For example, as of today Citibank's rate for sending a remittance is 1,136.00 and for receiving a remittance it's 1,113.80.  Their market rate or what's considered the mid-market rate would be the midpoint of these 2 values which is 1,124.9, slightly off of xe.com's rate of 1,120.77.  (1,136.00-1,124.9)/1,124.9 = .00987 which means you pay 0.987% in exchange fees.  I'll do the same calculation with KEB.  (1,131.90-1,121)/1,121 = .00972 = 0.972%  Here KEB's market rate is 1,121, very close to xe.com.  So the exchange fee you pay when you send a remittance through a bank is actually closer to 1% and I would doubt if you'll find a better rate than this through a money changer.  Today KEB gives you the better rate for sending money but the rates fluctuate.  Other days Citi bank has the better rate.

As for the cashier's check method, I still doubt if Pecan gets anywhere near the market rate.  I would guess it's the same as the remittance rate or even the exchange rate for cash.  Unless someone can confirm otherwise I wouldn't recommend this method.  Plus, you have to go to the bank!  Pecan said he gets a "preferred rate" but couldn't you get this for sending remittances too?  If he specified where his rate is relative to the market rate and the remittance rate that would be nice.   

[teacher1988]

@pohangster, I've used the money exchangers several times before. Myeongdong area tends to have the best rates and they're usually hovering around 1%; 0.9x% at best. So you are correct. That and not everyone feels comfortable carrying $10k+ in cash on their persons.

[pohangster]

@teacher1988, that's interesting about the discounts on the exchange spread.  Have you gotten this discount on a remittance before and can anyone get it?  It would be interesting to know what the remittance rate was at the time and what your discount rate was.  Clearly, even at a 0.5% spread, it's going to be a better deal than Citibank. 

[teacher1988]

Yes, anyone is eligible. Just open a remittance account at Shinhan. The discount schedule goes as follows:
1-3 times / year = 50% discount (0.5% spread)
4-6 times / year = 60% discount (0.4% spread)
7+ times / year = 70% discount (0.3% spread)

You'll get the 50% discount on the first remittance, not after. The numbers are approximate but every time I've done it, Shinhan's quoted rate is hovering around 1% of xe.com's, so I'd say it's safe to assume around 1% for quoted, then apply the discounts.

It's probably unfeasable for anyone to get the 0.3% rate without paying too much in the regular remittance/receiving fees, but 0.4% is possible.

[JNM]

I tried to get a cashier cheque (using the written Korean words provided in this thread) at KEB (Banpo branch) this week, and they told me they only do them in KRW.  KEB does have Canadian branches, so I was surprised by this.

Has anyone else had success getting a CAD cheque?

[thunderlips]

I tried to get a cashier cheque (using the written Korean words provided in this thread) at KEB (Banpo branch) this week, and they told me they only do them in KRW.  KEB does have Canadian branches, so I was surprised by this.

Has anyone else had success getting a CAD cheque?

At the very least they can write the amount to USD then your bank will exchange it to CAD. It may take a bit more time though to go through. Call KEBHANA head office as they most certainly can write cashiers checks in other currencies. Maybe go to your bank and call the office together.   1599-6111  ext 8 (?)

The checks are written on Bank of New York bank checks for USD. I am not sure about CAD.

4. Cashier's Checks
I'm interested in the claims made by waygook user "Pecan" regarding cashiers checks as a method of exchange. He/she seems to sware by it in this thread (pages 12-14) but doesn't give details about the specific rate of exchange offered. I would also like to confirm that these cashier's checks are not considered foreign instruments, as they are issued by Korean banks, even though they are issued in USD (as most US banks won't allow foreign money instruments). At the moment, Pecan seems to be muted, likely from his/her inflammatory responses earlier in this thread. I will do my best to update you all on anything I learn from our private messaging conversation.

I am not defending Pecan, but I have done this numerous times. In fact I will be doing it again next week. Rate of exchange is the same as any remittance.

[gavinmoore]

I'm really pleased at how this thread conversation is turning towards from posting actual rates than just neglecting them. I definitely seem to have been mistaken in the assumption that all banks charge between 2-3% spread.
As far as my stance on money changers, I have read on other threads of people finding people that change at the market rate, with the assumption that the changers stockpile large amounts of cash for more favorable rates later as they fluctuate. I personally have no experience doing it, though.
At a 0.5% spread, I'm now definitely considering Shinhan bank as an alternative. Thanks to @teacher1988 and @pohangster for their detailed input.

[emilyqws]

If you send money to or from the US, there's a money transfer website called sodatransfer that offers a low transfer fee. What they do is they collect a lump sum from their users and transfer them in one go, that's why you get to save so much on transfer fee. Compared to the conventional money transfer method thru banks, transferring thru them is way cheaper. Check out their Facebook page https://www.facebook.com/sodatransfer/. the reviews are apparently really good. my transfer was complete within a day.
the only thing is they only do korea-us and us-korea for now.
Website is www.sodatransfer.com

[petehsiung]

Has anyone been successful with having their severance, pension, exit allowance , what not all sent to their easy one remittance account? How did it work out?  Even though we would be receiving them at different timing.

I have given my school/POE my easy one remittance account to have my severance, pension, exit allowance and last salary sent. And I'm hoping it would work out.

[atb1994]

I just used the ATM to make an overseas remittance to my bank in America. The money is gone from my Korean account, but I'm worried since it's Chuseok that I won't have access to it in my American account until the banks reopen a week from now, which is bad news for my student loan payments.

Has anyone successfully made a transfer during Chuseok before, or am I out of luck?

[slycordinator]

The wire will only be performed on the Korean end when the Korean bank is open. During a holiday in which the bank is closed, it wouldn't happen.