fixed term deposit safety in Korean banks here??

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wolfcreek
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fixed term deposit safety in Korean banks here??

Post by wolfcreek »

Anyone know if the Korean banks here in Cambodia (WB, Shinhan, etc) guarantee money placed in their fixed term deposit accounts?
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Re: fixed term deposit safety in Korean banks here??

Post by TWY »

South Korea has KDIC which is similar to the FDIC. I don't know much about it though.

AT one point in time they insured deposits up to 50 million won (about 50K I think) and I recall that they didn't include credit unions for some reason.

I would doubt that any insurance would be extended to deposits held overseas in foreign subsidiaries. For example I know KDIC and FDIC signed a MOU many years ago - I assume to cooperate when it came to foreign subsidiaries. But nothing like that would exist here in Cambodia.

Your best bet is to simply ask at the bank.
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Kammekor
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Re: fixed term deposit safety in Korean banks here??

Post by Kammekor »

wolfcreek wrote: Sun Feb 21, 2021 1:41 pm Anyone know if the Korean banks here in Cambodia (WB, Shinhan, etc) guarantee money placed in their fixed term deposit accounts?
None. Cambodian law is applicable, not Korean law.
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Re: fixed term deposit safety in Korean banks here??

Post by samrong01 »

No bank anywhere guarantees the deposits in their subsidiaries whether Korean or not. Some countries (not Cambodia) have a deposit guarantee scheme where the government (or sometimes a bank consortium) guarantees deposits usually up to a limit. If I recall correctly in the USA it applies up to $100,000. On the other hand if a reputable foreign bank owns a bank in Cambodia it may give you a degree of confidence in that bank. Nevertheless they are all exposed to the same risks here so you take more or less the same chance at any bank. Asking at the bank unfortunately does not help as the staff do not know anything.
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Re: fixed term deposit safety in Korean banks here??

Post by joya_ch »

what interest they are paying'
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atst
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Re: fixed term deposit safety in Korean banks here??

Post by atst »

If I recall correctly the last financial crisis in Greece anything over $100k in the banks was confiscated by the bank's, bad luck
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Re: fixed term deposit safety in Korean banks here??

Post by AndyKK »

I would say most of us would like an assurance that if we deposited money in an account, and more so over a fixed term, that if something happened to go wrong our monies would be safe and returned to us in full, or at least the 75% that maybe garranteed by active overseas banks.
But really who knows, I have had plenty of troubles of late with my own countries bank, with added difficulties to sort. So how would I be expected to sort a foreign bank based here operating under Cambodian law, and not altogether that of its own.
Always "hope" but never "expect".
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Kammekor
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Re: fixed term deposit safety in Korean banks here??

Post by Kammekor »

atst wrote: Tue Feb 23, 2021 3:55 pm If I recall correctly the last financial crisis in Greece anything over $100k in the banks was confiscated by the bank's, bad luck
it was Cyprus, and it wasn't confiscated by the banks but by their creditors. After all about 45% of all deposits over 100k were used to pay off the banks' debts.
Last edited by Kammekor on Tue Feb 23, 2021 4:03 pm, edited 1 time in total.
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AndyKK
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Re: fixed term deposit safety in Korean banks here??

Post by AndyKK »

joya_ch wrote: Tue Feb 23, 2021 3:40 pm what interest they are paying'
What tax are you paying
Always "hope" but never "expect".
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Kammekor
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Re: fixed term deposit safety in Korean banks here??

Post by Kammekor »

AndyKK wrote: Tue Feb 23, 2021 4:00 pm I would say most of us would like an assurance that if we deposited money in an account, and more so over a fixed term, that if something happened to go wrong our monies would be safe and returned to us in full, or at least the 75% that maybe garranteed by active overseas banks.
But really who knows, I have had plenty of troubles of late with my own countries bank, with added difficulties to sort. So how would I be expected to sort a foreign bank based here operating under Cambodian law, and not altogether that of its own.
We would like an assurance like that, but as per Cambodian law there is no assurance like that in Cambodia. If a bank, either (partly) foreign owned or not, goes bankrupt you run the risk of losing all the money you have deposited with them.
When things turn bad the Cambodian National Bank will simply block all accounts of that bank / MFI and only after all creditors have been paid what is left over will be returned to the owners whom deposited money. That process takes years, so when in Cambodia longer term make sure you have access to money in another way than through your Cambodian bank account - just in case.
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