February 16, 2019, 03:01:49 PM


Author Topic: Sending/Transferring Money Home (FAQ)  (Read 191330 times)

Online slycordinator

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Re: Sending/Transferring Money Home (FAQ)
« Reply #320 on: January 11, 2018, 07:09:43 AM »
Hey, I transferred money on Sunday. Any guesses as to when it'll appear in Canada?

Thanks y'all!
A wire transfer started on Sunday in Korea would not be performed by the Korean bank until Monday Korean time. And it would not be finished until your Canadian bank opens up on Monday which would probably be Tuesday in Korea.

And a wire that you start on Saturday or Friday after your bank closes will have the same exact thing. Probably even if you sent the wire on Monday Korean time.

Online JNM

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Re: Sending/Transferring Money Home (FAQ)
« Reply #321 on: January 11, 2018, 07:13:05 AM »
Hey, I transferred money on Sunday. Any guesses as to when it'll appear in Canada?

Thanks y'all!
A wire transfer started on Sunday in Korea would not be performed by the Korean bank until Monday Korean time. And it would not be finished until your Canadian bank opens up on Monday which would probably be Tuesday in Korea.

And a wire that you start on Saturday or Friday after your bank closes will have the same exact thing. Probably even if you sent the wire on Monday Korean time.
Also, if the banks do not communicate directly, they send it through an intermediary.  I have had long delays because of holidays in intermediary countries that i was not aware of until it finally hit my bank and the teller could see that it came via a third country.

PS: The intermediary also takes a fee, and this is less than transparent.

Offline stormoverparis

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Re: Sending/Transferring Money Home (FAQ)
« Reply #322 on: November 28, 2018, 01:52:04 PM »
I already have an NH bank. Can I make a citibank? What things would I need? Just my ARC and passport?

Online JNM

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Re: Sending/Transferring Money Home (FAQ)
« Reply #323 on: November 28, 2018, 07:19:14 PM »
I already have an NH bank. Can I make a citibank? What things would I need? Just my ARC and passport?

Yes, you can have an account at another bank, but you can only have one bank specified for foreign exchange.

Offline sh9wntm

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Re: Sending/Transferring Money Home (FAQ)
« Reply #324 on: January 01, 2019, 08:29:36 PM »
In 2017, I'm not sure why we are still having this conversation, as this matter was settled years ago.

Broken record here, as I've repeatedly posted about how to be able to avoid these fees, get the best rates, and have your money available immediately for those remitting funds from the Republic of Korea to the United States.

Purchase a  "송금수표", which translates as a "remittance check" , but is actually a bank check, sometimes referred to as a cashier's check.

A bank check is guaranteed by the bank, meaning the funds are available, compared to the uncertainty of a personal check that could be NSF, so there is "zero" risk to the receiving bank/financial institution.

The fee to purchase/receive a "bank check" (송금수표) is a flat rate of 10,000, plus you receive the benefit of the "preferred rate" of exchange (better than you will get with any other form of transfer/exchange).

The only "catch" to benefiting from all of the above is you will need to be banking with a bank that has joined the 21st century.  Meaning, one that allows free "mobile deposits" and has high deposit minimums ($10,000).

USAA is one example.

They say a fool and his money soon depart, so if you transfer any other way, you get what you deserve.

You are welcome for the public service announcement ;)

JNM is dead wrong regarding fees, as banks make money on manipulating the rates of exchange depending on your exchange method, as in cash, T/C, wire, etc., as well as, the fees taken out by the "Clearing House Network".

I tried this yesterday while scouting for good advice on waygook. Thank you Pecan for trailblazing this. Transferring money from Korea either seems to be a pain in the ass or a rip off.
This is absolutely the best way to send money home. So much so that my request shocked the bank lady and she quickly tried to talk me down from it and tried to convince me to do KEB EasyOne instead. I stayed the course for the cashiers check/ money order, and she conceded that itís a good deal.

With A conventional remittance, I would of paid roughly $50 dollars in bank fees on a $10,000 remittance. With the cashiers check, I only paid 13,000 won for the check. Thatís the only expense. AND the part most people miss is they mark up the rates on remittances. I got a 4000 won discount on the exchange rate (per $1000) because a money order uses a US bank to negotiate a more competitive rate. So on $10000 I saved an extra 40,000 won.

So all things considered, a cashiers check/ money order saved me about $75 on my $10000 remittance. The only thing is your home bank must have online depositing (via internet).

Offline teacher1988

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Re: Sending/Transferring Money Home (FAQ)
« Reply #325 on: January 01, 2019, 09:23:24 PM »
Hi sh9wntm, would you mind sharing a break down of exactly how much KRW left your Korean bank account (fees for checks, etc. included) and how much USD entered your US bank account so we can see the actual exchange rates?
Also, please share the date you processed the order so we can compare to the market rates on that day.

I've tried asking Pecan for a clear break down on fees and rates so that we could compare to the Shinhan remittance which I broke down in this post, but he never delivered with any hard numbers so we couldn't compare :-(

If you're getting a 4000 won discount per $1000; and we assume the usual ~1% spread, then that looks like a ~36% discount on the spread at today's rate of $1 - 1112 won. In other words, you paid ~0.64% spread instead of the usual 1%.


So for a $10,000 transfer at today's rate of 1112, it would have cost you in KRW:
Call this Scenario A: No fees scenario (impossible)
$10,000 * 1112 = 11,120,000

Scenario B: Cashier's Check method
$10,000 * (1112 * 1.0064) = 11,191,168 won
Cashier's check = 13,000 won
Total: 11,204,168 won
Total paid above A: 84,168 won (0.76%)

With Shinhan's method which I mentioned, they offer 50%, 60%, and 70% discount on the spread depending on how many transfers you make per year.

Scenario C: Shinhan method at 50% discount (spread of 0.5%):
$10,000 * (1112 * 1.005) = 11,175,600 won
Edit: Intermediary fee = $15 * (1112 * 1.005) = 16,763 won
Remittance fee (for $10,000) = 18,000 won
Total: 11,193,600 won Edit: 11,210,363
Total paid above A: 73,600 won (0.66%) Edit: 90,363 won (0.81%)

Looks like Shinhan still ekes out a little more benefit, though not by much. If one transfers > 3 times per year though, looks like Shinhan's will still offer the best prices for transferring money.
Edit: Looks like Cashier's check method wins out at Shinhan's 0.5% spread! Shinhan will probably see more benefits at 0.4% spread, but that requires >3 transfers per year.

Of course, all this assumes that the Cashier's check is offering the same spread of ~1% like all the other banks, and is offering a 36% discount on the spread.

It's hard to compare without any hard numbers though so please share if you could.

Edit: I forgot to add $15 to Shinhan method (intermediary bank fees; this varies but that's what I've been getting charged as of late)
« Last Edit: January 01, 2019, 09:32:42 PM by teacher1988 »

Offline teacher1988

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Re: Sending/Transferring Money Home (FAQ)
« Reply #326 on: January 01, 2019, 09:36:04 PM »
Could we get one of the mods to edit the OP to reflect the most current info on where to find the best fees for transferring money?

Offline sh9wntm

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Re: Sending/Transferring Money Home (FAQ)
« Reply #327 on: January 02, 2019, 07:35:56 AM »
Hi sh9wntm, would you mind sharing a break down of exactly how much KRW left your Korean bank account (fees for checks, etc. included) and how much USD entered your US bank account so we can see the actual exchange rates?
Also, please share the date you processed the order so we can compare to the market rates on that day.

I've tried asking Pecan for a clear break down on fees and rates so that we could compare to the Shinhan remittance which I broke down in this post, but he never delivered with any hard numbers so we couldn't compare :-(

If you're getting a 4000 won discount per $1000; and we assume the usual ~1% spread, then that looks like a ~36% discount on the spread at today's rate of $1 - 1112 won. In other words, you paid ~0.64% spread instead of the usual 1%.


So for a $10,000 transfer at today's rate of 1112, it would have cost you in KRW:
Call this Scenario A: No fees scenario (impossible)
$10,000 * 1112 = 11,120,000

Scenario B: Cashier's Check method
$10,000 * (1112 * 1.0064) = 11,191,168 won
Cashier's check = 13,000 won
Total: 11,204,168 won
Total paid above A: 84,168 won (0.76%)

With Shinhan's method which I mentioned, they offer 50%, 60%, and 70% discount on the spread depending on how many transfers you make per year.

Scenario C: Shinhan method at 50% discount (spread of 0.5%):
$10,000 * (1112 * 1.005) = 11,175,600 won
Edit: Intermediary fee = $15 * (1112 * 1.005) = 16,763 won
Remittance fee (for $10,000) = 18,000 won
Total: 11,193,600 won Edit: 11,210,363
Total paid above A: 73,600 won (0.66%) Edit: 90,363 won (0.81%)

Looks like Shinhan still ekes out a little more benefit, though not by much. If one transfers > 3 times per year though, looks like Shinhan's will still offer the best prices for transferring money.
Edit: Looks like Cashier's check method wins out at Shinhan's 0.5% spread! Shinhan will probably see more benefits at 0.4% spread, but that requires >3 transfers per year.

Of course, all this assumes that the Cashier's check is offering the same spread of ~1% like all the other banks, and is offering a 36% discount on the spread.

It's hard to compare without any hard numbers though so please share if you could.

Edit: I forgot to add $15 to Shinhan method (intermediary bank fees; this varies but that's what I've been getting charged as of late)

The rate went down further after I transferred the other day, so I think itís at 1113 won right now (which is great). The spread at KEB was 11 points on 1115. That means they were buying USD at 1109.5 and selling at 1120.5. My rate was 1117.6. So a 2900 won discount instead of the 4000 I thought.

On $10000 thatís a 29000 won discount. Then assuming bank fees of $50 total, the check alone saved 40000 won.
So yah, still a 70000 won total discount.

total payment of about 11,190,000 won. It sounds like Shinhan has a good rate though. KEB EasyOne is such a trap. Besides English services, I don't understand how they are promulgated as the best.
« Last Edit: January 02, 2019, 08:00:54 AM by sh9wntm »

Offline teacher1988

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Re: Sending/Transferring Money Home (FAQ)
« Reply #328 on: January 02, 2019, 09:19:52 AM »
Actually 1117.6 at market rate of 1113 makes it a 0.41% spread, meaning it outright beats out Shinhan's spread (at 1-3 transfers) AND beats Shinhan's fees. Even at 1120.5, the rate was not my expected 1%, but 0.67%, which is a great start already.

Looks like we've found a clear winner! Too bad all this is is moot for me since my home bank doesn't accept online deposits T.T