Korean Job Discussion Forums

[elliemk]

How can a very large hagwon get away without paying taxes, medical insurance and pension? I know the smaller ones can, but how can the bigger ones do it? Inquiring minds want to know.

[Homer]

Just like many large businesses the world over get away with not paying all or most of their taxes ellie: tax-evasion, fiscal umbrellas, tax exemptions (often granted through lobbying and influence) and other nifty financial tricks....

Don't tell me you never heard about this?

[elliemk]

Of course I heard of this. But I thought the larger schools had to abide by the law. Else how can they find and keep good teachers?

[Homer]

Ellie,

How can large corporations that evade taxes back home find and keep their top employees and top talent?

Sadly, one things seldom has anything to do with the other.

[elliemk]

Yes, you're right, Homer. I just thought I would pose the question.

[wylies99]

A corrupt government that cares little about enforcing its own laws. That's how they get away with it.

[skconqueror]

[Homer]

sk..


I am not excusing anything. I am explaining how they do it.

Whats your explanation?

Wylies99 also has an excellent point. The government plays a large role in large company tax evasion or exemptions. Here, larger companies lobby very effectively with the government. The government is also more vulnerable to backroom deals or at the very least has a lower fear of being expose for it.

I remember a few years ago the chairman of a major Japanese company securing a multi-billion dollar subsidy for his company from the government. He did so by offering the sitting minister of finance an expensive golf club membership and other "gifts".

This does not excuse such pond scum behavior...but it does explain how it happens.

Home, the deal is very similar with certain companies, if you are canadian..ever hear of Steamships...the Paul Martin Company?

Its called lobbying...look it up sometimes sk.

Most large conglomerates magically manage to avoid paying all the taxes they should...but yes you are right sk..it is a Korea unique phenomenon.

I strongly suggest you look up the words explain and excuse and try very hard to understand the difference between the two. That will be your homework for the up coming weekend. If you get it right, I will give you a nice gold star.

[mtnhiker]

see the "yep, your hagwon can get out of paying your pension" thread.

[Zaria32]

Ellie this is an answer based on speculation:

Bribes of the won kind
Lobbying with the "important" folks
Lots of soju and dinners out
And most of all, two different sets of books, and one of them lowballs everything...in some cases to reduce taxes, in others to simply protect them in case the "fix" fails

When a teacher goes after one of these big chains, the teacher sometimes wins, and the chain has to pay pension or whatever. The amazing thing is that it only effects THAT teacher...there's no follow through. See speculation, above, about why that's probably true.

The smaller guys can't do this

[georgewallas]

I think that they get away with it because the foreigners that show up here are either ignoran of their rights, or give up in the face of language difficulties - Korea is far worse than Thailand in that respect - I never had to hand gesture to order food in Thailand - but they have a web site and a phone translator for every department and issue.
Hogwan's, big, and small, get away with things because the information is not out there for it to stop.

I was being denied a pension - I got on the NPS site, made the calls, etc. He got on the phone and stupidly yelled at the same guy that came over and fined him - I got my pension dues.
I am being screwed out of OT, and other monies - went to the LB...
I was being screwed out of taxes ... I just wish I will be around for the anal probe these folks will give him.

You see, Justice is about restoring harmony to things. Hogwan owners, just like businesses in the west thrive on ignorance, and people's willingness to take it.

[yingwenlaoshi]

I'm not all that positive, buy my friend told me that lobbying is illegal in Korea.

Thought you would have known that, Homer.

Plus, really. Come on. These hagwons are deducting taxes from our pays and not forwarding the money to the tax office. How can they get away with that? That's not commonplace back home.

Korea is corrupt. And you're raising your kids here.

Aren't you proud?

[the eye]

When it comes to Korea, i'd say there's a bigger chance that non-payment is a result of mismanagement in the tax agency.

Do you all have to pay an apartment tax?
I do. I have it in writing from the tax office.

Who did you guys lobby, in order to get out of this?

[Thunndarr]

[yingwenlaoshi]