Foreigners need not apply (for a loan)

(UPDATE:  Two commenters has given pretty strong anecdotal evidence that foreigners can get loans.  Perhaps my denial out of hand is just the policy of Kookmin Bank or maybe even the loan officer.)

I just moved into a new place.  How I got into this particular new place is a source of some irritation.

Our original plan was to just pay 전세 (key money) and skip the monthly rent or do 월세 (deposit and monthly rent) on a nice place.  The problem is that I am planning on starting work towards my doctorate this winter and the school I contacted recommended that I keep at least 10,000,000 liquid for visa purposes.  That left me a bit short of what I need.  So I decided to go to my bank and look into getting a loan.

When my wife and I went up to the loan officer and asked about it.  He politely informed us that foreigners can't get loans.  He was so confident in that assertion he didn't even have to consult anyone.  Because my wife isn't working (baby due in January) she couldn't get a loan either.

I know that Korea is for Koreans and that a country's institutions should serve the needs of its citizens first.  However, I'm still a little irritated that I can get a loan from my bank; a bank that I have been with for five years, a bank that has been skimming a little off the top of my remittance payments to the States all that time, a bank in which I have more money deposited than I wanted to borrow.

So we are now in a dumpy little place for the next year.  I shouldn't complain since this will save us a few million won in the long run.  But that 'foreigners need not apply for a loan' rule is bothersome.

Comments

[Nathan B.]

It's not true that foreigners can't get loans. My former landlord, who is a foreigner, got a loan. With that loan, he purchased three residences, which he then rented out to other foreigners.

[Scott-in-Japan]

What bank are you with?

[Nomad]

Andy,

That's not true. Quite a few of my friends who are contractors and who are married to Koreans got loans from a Korean bank to buy their apartments. Maybe it's different buying property that the bank can take from you if you don't make the payments vs. asking for a personal loan (I suspect that may be the issue here).

[jtb-in-texas]

if you're in Seoul, there are 8 CitiBank locations...

[Christian]

I found myself in the same situation as you: married to a unemployed Korean citizen, being a foreigner, having an account at Kookmin and willing to get a loan to move into a nicer appartment.

Total failure. I even tried 7 other banks, including CitiBank. the denial was based solely on me being a foreigner, disregarding my income. dda made some comments while ago at the Marmot's Hole and I followed up. I was even told at Kookmin that I was a `credit risk' because I could run "back" to my country, despite having a comfortable salary (as assistant professor) and residing here.

Same problem for having a VISA card, since it must be a credit card too in Korea...

Finally, I solved the problem of the credit card at KEB, which started a programme aimed at attracting foreigners. I closed my accounts at Kookmin, have them told that they were a bunch of racists etc.

For the appartment, this problem led us to buy an appartment: this kind of loan is absolutely no problem since the bank can seize your property after 3 months without paying...

Good night and good luck...

[kushibo]

if you're in Seoul, there are 8 CitiBank locations...

Just now saw this. Citibank was the one always telling me I could NOT get a loan. It was KB and Shinhan (and a few others) that were willing to lend me money.