Korean Job Discussion Forums

[OBwannabe]

Before taking my first steps into the ROK nearly 10 years ago I did my research and found blogs, recruiter websites, etc .... claiming that one could save $20,000/yr by teaching English in Korea. I don't doubt that was once true with some sacrifice, but I contend that it is an impossibility (aside from very special circumstances) in 2015. Yet, all you have to do is a quick google search on "how much money can you save in Korea" and you'll see current pages stating the same thing. To be fair, some sites have lowered the amount to $17,000, but is this really achievable?
I say that $10,000 is achievable under normal circumstances, but it would be tough. Especially if you have any student debt to pay. Take my situation as an example.

I only make 2.2mil/mth, but that is hardly unusual these days. I get an average housing allowance, but it covers my rent and all of my utilities, including internet. I choose to live in a crappy apartment with roommates in order to save money. I'm also fed a great lunch at work each day which I estimate to come out to approx 100k/mth. So once you take my living and lunch situations I should have it pretty good, right? Well, could be worse, but not so great. I assume better than most at my pay grade, which is a sad statement.

This is how I tabulate my living expenses:

Rent/Utilities approx 350k. Housing allowance (386k after taxes)
Phone- 30k
Transportation- 75k
$$ sent home- $550k
Clothes/Savings/major necessities -200k
Gym- 72k
Food -350k(probably more, but I'm fed lunch at work)
Haircut- 15k
Total = 1642
Total net remuneration (approx) 2mil+386k= 2386000/mth
So, 2386000-1642= 744k/mth

Now if all of that went to savings it would be pretty terrific. 744x12=8,928,000. Plus between 4 and 4.5 million in severance and pension. So a potential grand total of 13,428,000 won/yr. Still nowhere near 20 million. And keep in mind that I have no utilities to pay. Some months my housing allowance will even cover my cell phone and more! And, as I mentioned, I eat for free once a day during the work week.
I haven't mentioned entertainment yet have I? Coffee, beers, eating out, dates, baseball games, trips, etc. At the end of each month I'm lucky if I have anything at all left of the 744k, and that's with sacrifices! I try to stay in one weekend a month just to stretch my entertainment budget. Yes, I do like to drink and that's where the majority of it goes I reckon. But I don't go out 4 nights a week and I stick to the cheap Korean swill. And my monthly entertainment budget could easily be 300k less if I wasn't fed and didn't happen to live in such a cheap apartment. God, that's a scary thought!

Admittedly, I am, and always have been, terrible with money...but I'm really trying to get a grasp on it.

All I expect to save is my severance and what I send home each month. Unfortunately most of that goes to debt. But if I had no debt my approx annual savings would be 11k top end.

I often see people asking if it is financially worth it to come to Korea after graduation. I'd say it's possibly worth it, but then again if you are young and can live at your parents place for a few years while working for less than a desirable wage....you'd probably be better off doing that. Making $14/hr and living in mom's basement will certainly allow your savings to grow faster than if you moved to Korea to work for the average going wage.

Of course, if you get stuck into some private lessons, or manage to get one of those after school positions that allow you to add a cushy kindy gig to your visa, then yeah....it will help your saving grow substantially. But the majority of us work one job and private lessons are much harder to come by these days...and are illegal.

Of course, money isn't everything. Living in a new country/culture has it's own invaluable rewards that should not be overlooked.

[SeoulNate]

To be fair, the 550k you send home a month is also 'savings' in my book, even if it is going to pay off student loans and such.

Also, isnt 2.2 after 10 years really low?

[OBwannabe]

[Yaya]

Korea's ESL industry is in decline (as is the overall economy) but well, I guess it depends on the individual. The private tutoring market, to my knowledge, has taken a hit, too, as many expats would make good money off that, but perhaps no longer.

If you want to save money, Vietnam seems to be a good bet.

[edwardcatflap]

10 years ago the average hagwan/public school job paid around 2 million a month, so I don't know where they got that 20k dollars figure from. The standard figure was always about 10k maybe moving up to 15 for hardline tight wads. There have always been plenty of people around saying they make and therefore save a lot more than the average but I assume we're talking about bog standard figures.

[PRagic]

Probably because, as the OP notes, people used to pad their income easily with privates, writing, recording, or what not. In the 90s, it wasn't uncommon for a hagwon teacher to pull in a min of 600-900 a month on the side, often much more. Salaries were lower, but there were fewer foreigners here and the pay was higher on the side.

[Weigookin74]

A 2.1 mil salary with deductions and basic living costs living semi frugal, might let you send home 1.2 mil. Being less frugal and having a good time might let you send home 900,000 won.

Let's say 1.1 just for the sake of arguement, XE says that's about 925 dollars.

925 x 12 months = 11100.

One year severance is one months salary minus some taxes and maybe some year end taxes taken off the final pay. (As we more than likely seem to owe more at the end of the year than we did before.) Also, if you're cashing out you're pension which I'm not sure how much.

Let's say 4 million won minus 500,000 won? Year end tax settlement and also some taxes taken off these?

According to XE,

3,500,000.00 KRW = 2,949.415 USD

11,100 plus 2,949 = 14,049.

US dollar is crashing more than before and will be lower a year from now. So, maybe you'll end up with $13,000 then.

Also, if you take a trip in Asia or have an expensive visit to a room salon or some other weird experience, etc - you can take that off your savings! If you spend money on some other things like a fancy gym membership and drink too many expensive martinis, or entertain girls in Gangnam, that will also come off the total.

I'm guessing if you like the finer things in life, you'll only end up with 2 or 3 grand. Of course this assumes no student loan payments or credit card debts. So, maybe, I should just round it all off and say, you'll have about $10,000 left over by next year if you're doing a year in Korea.

Of course, if you're here for multiple years not paying into your country's home pension plan, you might want to not cash out your pension here as getting something is better than getting nothing when you're old. Though some English teachers seem to be able to incomprehend life events beyond the next 5 minutes.

[wooden nickels]

[wooden nickels]

My opinion is that 2.2 is a considerably low salary for anyone who is in their 3rd year or more in Korea.

I have a friend here who is in his 5th year, E2, on:
4th year at same small school
2.8
Less than 30 45-minute classes per week
school furnished 2 bedroom apartment (not a Villa)
all benefits
all legal

note- he has opted out of airfare for .2 salary increase

note- summer and winter camps; pay varies depending on students enrolled. 2.0-4.0 possible additional pay each year

[OBwannabe]

[Fallacy]

[mike in brasil]

So much fuzzy math.....

And now the won/dollar is gonna tank and make it all worse.

[wooden nickels]

[Fallacy]

Admit at least that you spent more than 50/month while dating your wife-to-be, and thereafter, the both of you swore a fealty to frugality. If not, then does your wife have any like-minded friends who would be interested in me? I would DEVOTEDLY LOVE such a woman. I am skeptical that such exist. You may have found The One. Needle in a haystack.

[wooden nickels]