Korean Job Discussion Forums

britrck8 · Joined: 20 May 2008

Hey, I just took a job with EduBest. They offer key money towards housing, but just informed me that you have to make monthly payments (I believe the term was "interest") on this key money: 30,000/month if you take 2 mill. and up to 80,000 if you take 5 mill.

Never heard of this before. Yes, I realize it is bullshit, but what I'm more concerned with is if anyone who works for EduBest does the same thing. Anyone out there working for EduBest can offer me their experiences?

Return Jones · Posted: Wed Jun 25, 2008 7:25 pm Post subject:

This is the first I've heard of such a thing in 7 years here. I would run and hide from any company insisting on this - even if they were offering me the moon otherwise. If you haven't actually signed, run away and don't look back.

Nexus11 · Joined: 29 Nov 2006

If they are nitpicking you for $30 a month now, just imagine how nitpicky they will be after they have your signature.

Tobias · Joined: 02 Jun 2008

When one pays key money in Korea, it is invested by the landlord.... well, supposedly this is true. The interest on this sum is the 'rent'. Perhaps this landlord isn't investing or maybe is a bit greedy and wants something above and beyond the normal return.

Let me see if I understand your post correctly here: You can actually be offered 5 million a month in salary at this job? If true, paying 80K is pittance. I'd take it for sure if I were qualified.

prairieboy · Joined: 14 Sep 2003 Location: The batcave.

You can find jobs with key money included (they get it back when the rental contract expires) or straight housing.

Why pay them to borrow money they are guaranteed to get back. They are trying to stick you with the cost and make money off of you in the process.

Walk away. Keep looking.

Cheers

gmat · Joined: 29 Jan 2003

Tying up key money is an opportunity cost for anyone, landlords included. They are trying to recoup their opportunity cost (and profit) by essentially charging you interest at around 18 to 20 percent.

I think this is quite high, but if you can't get key money from other sources then you need to decide if it is unreasonable or not.

Join Me · Joined: 14 Jan 2008

KoreanAmbition · Joined: 03 Feb 2008

I agree with gmat.

Essentially, your job DOES NOT include housing.

The company is acting as a BANK and allowing you the OPPORTUNITY to BORROW money from them if you require it.

Some jobs offer really high salaries and no housing. Other jobs offer housing but the wage is probably a bit lower. If your new job will pay you a LOT of money then it is worth it to not get housing. Hence, someone might take the job.

If you would take this job without housing included, then I say take the job.

There are others on this message board that don't have housing included and they make good money and enjoy their situations. But as most will tell you, Seoul is expensive for housing, and you might need key money. If you need key money, you can either front the money yourself, or borrow from this very nice company. LOL

Anyways, if you don't need key money, and if you are making a really good salary, then consider the job.

If not, as others have said, move along. This company might be trying to find people with no choices in Seoul and when you get there you have no choice but to spend your pay cheque on rent, spend your pay cheque on interest for key money, and who knows how much money you have left in the end.

Good luck