Classact
10-29-2007, 01:15 PM
Thought I’d introduce you folks to some differences that Koreans use in finance to save money and see if you could possibly apply the same or similar methods to save money and cut the government and financial institutions out of a lot of your hard earned money.
The first is Key Money
Jeongsei, literally means money in full, sometimes called key money. The tenant gives the landlord key money amounting to 25% - 70% of the value of the property. No monthly rents are paid. At the end of the tenancy agreement, usually two years, the landlord returns the key money without interest and the tenant must move out unconditionally. Deductions can be made from the key money for repairs and damages. If the landlord is unable to return the key money, the tenant can stay until the money is returned.
http://www.globalpropertyguide.com/country.php?id=102&cat=6
I used this system to rent a home in Korea with a one year contract that the landlord gladly renewed every year, we gave him W2 million or 2 million Won and paid no rent on a two bedroom home for almost five years. At the end of our assignment he returned our 2 million won that by then was worth more than it was when we gave it to him.
Another way my Korean wife would save money was to make loans with friends… Kind of like a “closed lottery” if she or one of her friends needed lets say $1,000 to buy a new car with a trade in then she and say nine girlfriends would get together and give the “need-er” the $1,000.00 by each person (including the need-er) contributing $100.00… then the other nine would draw straws or lottery with numbers 1-9 to determine who would get the next and sequence to the last $1,000… if one of the friends was on a tight budget then someone who had a high number that could deal with it would exchange a high number for a low number so no one had a reason not to pay all the ten months. Sometimes multiple lotteries would be going on at the same time as needs arose. I thought it was such a great way to borrow money while not leaving a pile of money on some milk skinned bankers box.
The first is Key Money
Jeongsei, literally means money in full, sometimes called key money. The tenant gives the landlord key money amounting to 25% - 70% of the value of the property. No monthly rents are paid. At the end of the tenancy agreement, usually two years, the landlord returns the key money without interest and the tenant must move out unconditionally. Deductions can be made from the key money for repairs and damages. If the landlord is unable to return the key money, the tenant can stay until the money is returned.
http://www.globalpropertyguide.com/country.php?id=102&cat=6
I used this system to rent a home in Korea with a one year contract that the landlord gladly renewed every year, we gave him W2 million or 2 million Won and paid no rent on a two bedroom home for almost five years. At the end of our assignment he returned our 2 million won that by then was worth more than it was when we gave it to him.
Another way my Korean wife would save money was to make loans with friends… Kind of like a “closed lottery” if she or one of her friends needed lets say $1,000 to buy a new car with a trade in then she and say nine girlfriends would get together and give the “need-er” the $1,000.00 by each person (including the need-er) contributing $100.00… then the other nine would draw straws or lottery with numbers 1-9 to determine who would get the next and sequence to the last $1,000… if one of the friends was on a tight budget then someone who had a high number that could deal with it would exchange a high number for a low number so no one had a reason not to pay all the ten months. Sometimes multiple lotteries would be going on at the same time as needs arose. I thought it was such a great way to borrow money while not leaving a pile of money on some milk skinned bankers box.