View Dai Billington's profile on KBC

September 1, 2011 - KBC Relay Interview"From British Embassy Trade Specialist to Financial Advisor to the International Community in Korea” Dai Billington Partner at Regency Asset Management Dai was interviewed by Dan Vroon. (Click here for Dan's relay interview.)

 

Dan: Well Dai, why don’t you start by telling us how long you’ve been in Korea.

Dai: I arrived here in June 2003.  It was the first day of the rainy season - not unlike the last few days here - so I did wonder what I had let myself in for at the time.  Thankfully, my opinion of Seoul has increased dramatically since that first gloomy evening.

As you know, I was working at the British Embassy then and indeed recall many an evening at the Embassy bar or other functions, with yourself and several of your other partners in Craftworks, during my time there.

Dan: Tell us what brought you to Korea.

Dai: As mentioned earlier, my background was with the UK government.  This brought me to Korea where I spent over 3 years as head of the trade section at the British Embassy.  It was a great job giving me a wonderful chance to travel around Korea and see many aspects of Korean life I could never have seen without the Embassy.  Plus of course, I was well placed to meet folks in the local and foreign business communities.  One thing I found from long term ex-pats was that very few were still doing what had brought them to Korea in the first place.  After a few years here, this got me to thinking "I like Korea and like the idea of staying here after the Embassy, rather than another posting elsewhere".  Several opportunities came up.  Indeed, I strongly considered starting a pub restaurant, much as you have yourself.  However, I had already started as a client with Regency Asset Management myself.  I liked what they were about and the products they used, so was pleased to accept when my now business partner, Mark Howarth, asked if I would join him. 

Dan: How does your unique background in the foreign service inform your decisions?

Dai: I'm not sure how my background is now informing my decisions.  In government, policy of the day is what you follow.  There is a lot of freedom for decision making within a framework but much also depended on fitting in with other Embassy activities and organisations both in the UK and in Korea.  Now in a one tier unit, decisions can only come from myself and Mark, which means that you get to reap rewards - or otherwise - based on the quality of those decisions. 

Where my background certainly helped is that for many years my jobs entailed a large amount of meeting and talking with people, whether in a position of advising on business development or diplomatic receptions.  Unless you are a natural "life and soul of the party", the more you meet and talk with new people, the more comfortable you become in new company.  This was probably the key resource I brought to my new position. 

Dan: What should foreigners know about investing from Korea overseas?

Dai: For many the term "investing" suggests fatcats speculating on the stock market.  Regency certainly has many well-to-do clients with substantial accounts, but for the most part, the companies we work with provide a vehicle for foreigners to start regular savings plans, much as many people would do back home with their post office, building society or such-like.  I think that it is extremely important that foreigners still consider their futures while working abroad, and find some way of ensuring their financial security in later life or retirement.  We offer one such way. 

Saving offshore provides no "get rich quick" schemes.  Just solid medium- to long-term returns with the added benefit of that growth being tax-free.  This, of course, can make a substantial difference to final returns.   

The most popular offshore financial jurisdictions for savings are the Isle of Man or the UK Channel Isles.  They have gained their status by providing their clients tax-free growth, plus the highest levels of investor protection in the world, with all accounts protected to 90% of their value, with no upper limit, in the unlikely event of the holding company collapsing.  Furthermore, these companies are all about saving - they don't lend money and they don't get themselves tied up with risky leveraged products such as derivatives and futures that brought so many banks down in recent years.  That is why we exclusively recommend companies in these areas. 

Dan: Is it legal to move one’s money out of Korea?

Dai: Certainly, it is perfectly legal for ex-pats to save offshore.  Indeed, to invest offshore with the tax free benefits that provides, only ex-pats are eligible to do so, as you cannot open an account if living in your home country.  I would add that US citizens are also eligible to save offshore, although they are required to declare any overseas accounts exceeding $10,000 to the IRS.  

Dan: What can you offer that a traditional bank cannot?

Dai: What we can offer is access to a wide range of savings opportunities to fit all walks of life, budgets and time frames.  People can take advantage of offshore savings to provide returns above what they could achieve at home, due to tax benefits, plus access to funds from the world's leading investment companies, that they thought were beyond their reach or too expensive. 

These savings can be for any purpose, including pensions, but unlike traditional pensions, you can still access cash before you retire if needed.  For Brits, we even provide the opportunity to (legitimately) move your company pension offshore, so that when you do retire, you can draw it down free of UK tax if living outside the UK and it does not die with you but is left for your dependents. 

We cannot - and never will try - to match all the wide-ranging services of a bank (please don't ask us to lend you anything).  Ours is a specialist niche where, as independents, we can offer the market leading products, chosen to suit the individual.  

Dan: What do you like most about what you are doing?

Dai: I feel comfortable in this position because I feel comfortable with the service we provide.  As initially (and still) a client of Regency I have confidence in the value of what we give people.  Ex-pats often work on contracts for a year or two before an extension or a new contract.  Unlike steady work at home, this frequently does not include provision for savings or a pension, so there is a real need for foreigners to make that provision themselves.  For many clients, until we met them, they had not seriously considered this need.  I know that without services such as ours, they would have far less future security, so it does feel good when you find something you know is right for a client.  

Equally satisfying is when existing clients recommend friends to us or come back, looking to add more savings to their accounts.  Much as when someone (like myself) comes back to Craftworks for more of the ribs and a pint of dark ale, you know you are doing something right if your customers want a second helping or pass around positive word-of-mouth reviews.    

Dan: Do you have any advice for someone thinking of leaving a salaried position for whatever their new start may be?

Dai: Again, the learning curve.  Start finding as much as you can about the industry in general and specifically what you are looking to do, preferably before leaving your current job.  You are not going to be productive until you have at least a competent level of knowledge, so prepare yourself in advance.

Also, whether you are opening up your own business, or going into a commission-based industry, cash is unlikely to pour in initially.  Before jumping on board you will need to have the means to feed and clothe yourself.  So I would recommend thinking hard about taking this route unless you are confident you can get through at least six months to a year on your savings, in addition to money you may need for your business.