In what is a regular feature in the English language media here, it has become quite fashionable to criticize the “foreigner unfriendly” rules in Korea. Whether it is about getting mobile phones, house for rent or credit cards, there have been numerous articles about the difficulties expats face. While I do agree that newcomers here do face many of the problems that are highlighted, I still think that some of them are exaggerated.
Take for instance this news article which refers to the difficulties foreigners living in Korea have obtaining international debit cards and local credit cards.
While some banks even tell customers that “new” Ministry of Finance regulations prevent them from issuing international debit cards to foreigners, there are no such rules, according to a ministry official.
Lee Cha-woong, an official at the ministry’s foreign currency department said, “There was no change of governmental laws or regulations on the issuance of an international debit card to foreigners.”
According to Lee, each local bank has different policies on issuing cards.
Some banks issue the debit card without any restriction on foreigners while others limit the amount of money a foreigner can withdraw with the card to 10,000 dollars on a given trip out of the country. Many banks simply won’t issue any debit card to foreigners.
The system can bewilder and enrage foreigners.
Hey, why single out Korea? All over the world, every bank is free to decide whom they give credit cards to based on their risk assessments. So naturally different banks will have different approaches to a request for a card from an expat. While one bank may feel an individual is a credit-risk, another may not. It happens everywhere. The reason why the bank officials would have mentioned some non-existing rule, is to get the expat off their backs.
The article further quotes a Korean American:
Sei Chong, a Korean-American living in Seoul, was unpleasantly surprised during a visit to the United States last September to find that she could no longer withdraw money from her Korean bank.
“I travel a lot overseas. I even withdrew money when I was in Afghanistan in March. But after I switched my old, tattered ATM card with a new one in September, I could not withdraw money at any bank in the States,” said Chong, who is an editor at a news agency.
Kookmin Bank told Chong she could not withdraw money outside the country with an ATM card because she is a foreigner. A Citibank officer said an international bank cannot give a foreigner an international debit card because it has to abide by local laws.
Then Chong visited SC First Bank and got the card she needed without a problem. “No one seems to know where this law came from,” said Chong. “I think it makes Korea a backward country.”
What a laugh. Being a journalist she should have known better and inquired with the concerned bank before taking the card. Different banks have different policies and one cannot say a country is “backward” based on this stupid experience. The lady may be backward for not doing enough due-diligence before subscribing to a card.
She should also have no issue with the $10,000 limit. She should have known better. Korea has the forex limit for reasons that are no secret. By the way, someone who wants to withdraw over $10,000 on an overseas trip should have taken the precaution and inquired first.
Also she should have known that KEB in association with Invest Korea introduced a “Expat” card almost two years ago. All it takes is a phonecall to get the process started. They request a maximum of two documents by fax and your card is in the post in a weeks time. I have had it for two years now and did not find any difficulty in using its overseas. They also advertise it all over the place, so all expats who have decent credit histories already know about it.
Don't blame the country for ones own stupidity.
10 comments:
sztupid article, who has time to check if their atms work overseas. its common knowledge that credit cards work overseas
I guess it does make sense to check every service that you are used to before using it again somewhere else, right?
I wonder if the plumbing in the next apartment over will work...mkaybe I should call the water company and find out if their toilet works just as mine does before I hang out with the people over there, and I might need to use their toilet.
It is erroneous to blame someone for a bank not providing the service it usually provides. Why should I, the customer, have to make sure my stuff is being handled when the company should be doing that already since it is in business with customers? That's just stupid. Oh, and maybe I should speak to every plant around me to ask if it will absorb my co2 and create oxygen before I try breathing air across the street.
Why on earth would you think it a trivial matter that foreigners have repeatedly been lied too and refused a basic service because banks are too lazy to bother with customer service? Why would you think it unimportant that people were uninformed of a major change and then left high and dry without any recourse to access their own money? And yes, banks do risk assessments to see if someone is good for credit, but "foreigner" is NOT a credible reason for refusal like defaulting on a loan or carrying other kinds of debt would be. That's prejudice, not "risk assessment"
Other people have already pointed out how ridiculous your suggestion about checking to see if all your cards that are supposed to work do still work, rather than assuming that of course they could stop for no reason with no notice, so I won't bother to beat a very dead horse.
Nobody was complaining about the $10,000 limit. No one has an issue with it except that banks are using it as a trumped up reason to deny service and access to an individual's own funds.
This famed KEB card that you claim is heavily advertised? I've never heard of it. Neither had any of the other expats I know. Either we all live in a bubble, or you do.
This was a great article, involving some good investigative work on why banks were trying to pull a fast one because they were too lazy to deal with people who used their services, invested their money, and might just need to be treated the same as other customers. The only one being stupid here and worthy of blame here is . . . well, Seoul Buffoon. Good job living up to your name.
This post of mine drew some unexpected attention from bloggers in Korea, which also led to a lot of name calling and bashing. Many even doubted my intelligence and comprehension skills....saying I do not know the difference between ATM card and credit card! Well, its a free world....All I can say is that people who accuse me of misunderstanding the article have misunderstood my post....and cherry picked the stuff they do not agree with.
I am aware that there are some expats who have complaints about the ATM restrictions and the excuses some banks have been making. But I have personally not faced it and neither have the numerous expats who I know. Maybe, we are talking of different expat groups here!
So thats why I said it an individuals banks right to decide... it happens everywhere even in the US.
What got me worked up was the fact that people tend to take a couple of personal experiences and start labeling Korea as "backward". The fact is that there have been tremendous improvements over the past couple of years...one cannot expect the country's systems to become "advanced" overnight...some problems remain to be ironed out, but that doesn't warrant calling this country and its policymakers names, or for that matter even degrading fellow bloggers. There is mature way of criticizing. As for the gentleman/lady who posted that they have not heard of KEB expat card...well I can only assume that I live in a different circle.....not everyone is eligible for the card.
the korean banking system for foreigners living in korea is adequate for domestic services. however, korea remains decades behind advanced countries and even advanced asian economies such as tokyo, hong kong and singapore in respect to professional and contemporary financial tools for both its domestic and foreign clients.
try getting a credit card, withdrawing your money overseas or even signing up for a cell phone in-country and you'll soon find out how undeveloped these areas are.
regarding the atm issue, let me give you one example of the problems this causes. when you come into korea for a consulting contract, you open a korean bank account to get paid. when you finish your consulting and leave the country, the korean company has oftentimes not paid the last fees yet. so, to collect the monies owed to you by the korean company, you actually need to come back into korea to pick up the money. this is what's known internationally as "korean efficiency".
I find it pretty ridiculous that you think the people who disagree with you or what you've written don't understand your article. Trust me, I understand, but maybe you should go back and read it again to make sure what you say is what you meant, because as it stands you really don't seem to get it. Nor can you determine between calling a system "backward" and a country, even though the distinction was clear in the original article. No cherry picking required.
Even you admit they are "excuses" that the bank is using to deny services legally available, basically out of laziness. And no, banks in the US do NOT deny credit cards, international atm cards, etc. to foreigners who open accounts with them. So, what about that makes it NOT sheer prejudice and laziness? Where do you really see the banks as in the moral or legal right for this?
Anon...thanks for your comment. Yes, you may be right.. I was not very clear in "what I meant and what I wrote".But no I do not agree that the comments made by the news editor in the original article made a distinction between a backward system and a backward country. It is very fashionable for expats here to deride the country and its citizens for the problems that they face. They forget that migrants in their own countries too face similar problems. EVEN the US. For your information, please check the following links:
http://www.bankrate.com/brm/news/cc/20001208a.asp
http://www.misa.ns.ca/documents/RecognitionofCreditHistoryforNewImmigrants.pdf
The articles might be a bit dated, but then...problems do exist. A little time spent googling, will throw up many more such recent bank/credit problems that migrants (white collar, as distinct from the migrant workers)face even in US and Canada. As expats here, we have to learn to take the problems in our stride and enjoy the stay. Happy Lunar New Year !
Hey Buffoon, don't be surprised by the attacks. Don't know know that the only valid stance to take is that Korea is 'backwards', 'undeveloped' or 'prejudiced'? If you dare to hint that a few of the expats here need to devote a bit more time trying to find answers to their problems and a bit less time blaming Korea for everything that's wrong in their lives, you can expect the insults.
I certainly found out quite easily about the KEB expat card by... going around a few banks and asking if they had such a service. But note it's the banks who get slated for laziness by the expat whingers.
If I was a Korean bank, I certainly would think twice about giving credit to a lot of the expats I come across. Some people need to take a good look in the mirror.
Anyway, nice blog!
Anon...its good to know that there are expats here who took my post in the right spirit. Unfortunately, there are not many of them, since most were redirected to this post by the blog of an expat who believes in degrading fellow bloggers and applauding the din of his own cacophony!
You were saying?http://www.koreatimes.co.kr/www/news/special/2008/02/177_19237.html
http://www.koreatimes.co.kr/www/news/special/2008/02/177_19675.html
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