Korean Job Discussion Forums

[justin moffatt]

This month alone, I have had FOUR contracted companies take turns screwing me over for money owed. Some are contracted via my company, while others I was employed as an independent contractor. Two companies I have already posted previously. The remaining two, I cannot disclose yet (for legal reasons), and they have refused to pay for cancelled consultation sessions (without any notice). As a result of my requests to be paid accordingly, these two companies have contacted other companies (affiliated and non-affiliated) in which I had existing contracts with or are in current negotiations with, and slandered me! In other words, I have lost contracts because I requested to be paid for money owed!

It seems the stereotypical Korean vindictiveness seems prevalent in business as well. I am having serious second thoughts in continuing to do business here, and to start detering other foreign investors from doing so as well.

[Yu_Bum_suk]

Koreans would rather continue achieving moderately successful economic growth through an average 59-hour work week than have to put up with such unsavoury things as the rule of law and treating foreigners as equals.

[Countrygirl]

I'm surprised that you're surprised. Why don't you sue the offending companies for slander?

[Whistleblower]

Business in Korea = Shooting yourself in the foot

[Juregen]

In Korea "Show me the Money: actually means something.

Do not provide services if not paid up front. Especially if you are a foreigner.

[crescent]

I don't think this is a 'foreigner' based screw job.
Both my Korean boss and my Korean girlfriend tell me the same kinds of stories about people not paying them.
My girlfriend is a jewelry designer/importer/marketer, and she gets stiffed on contracts all the time.
My boss has to put up with trying to get money from students who quit for fictitious reasons, and claim they don't have to pay. Some just don't pay for a few months and then quit.

It's regular.

[Paji eh Wong]

The only way I do business in Korea is to get paid up front.

Just for conversation's sake, why do your clients know about each other?

[PRagic]

What visa are you on? Is your company a legal, tax paying entity?

You can take them to small claims court without a liar..uh, lawyer.

You can report them to the tax office.

You can find out if they employ foreigners illegally and then report them to immigration.

[justin moffatt]

PRAGIC:

F2 Visa. Registered legal paying entity for over 2 years.

Small claims is the best option (my lawyer recommended this today).

Tax office and Ministry of Immigration is getting my report early next week (have evidence of tax evasion and illegal employees working there).


Some companies have "alliances" with other companies (as does mine). Word of mouth referals (both negative and positive) are HUGE in Korea (everywhere really).

Pretty difficult to have companies "pay up front". Most businesses do not work this way. Unless of course, you are doing privates . . .

My lawyer suggested have an ironclad contract for all forms of employment either via my company or as independent contractor. However, many companies would just find another service provider who doesn't have specific "demands" (as reasonable as they may be). Ohhhh the dilemma. . . .

[Privateer]

From the stories I've heard, this is not about screwing over the foreigner so much as about screwing over whoever is vulnerable - which happens to include small time foreigners. I mean, this kind of thing happens to Koreans all the time. That's why they need a network and alliances with influential people, because otherwise you go under.

[PRagic]

Also, since you have your own company, it's a good idea to carry around a receipt book/log. Have the company you're doing work for, be it an outsourcer or individual company, sign off on a receipt for your services. This will give you iron clad proof and get you through small claims faster.

Also, sometimes you have to cut and run early. If you've worked a few hours and a company isn't paying, stop work and pester them. When their client calls and asks where you are, simply tell them that you haven't been paid. In some cases, the big companies are stiffing the consulting company, which in turn stiffs you.

Rule #1 in Korea...the bigger the company, the slower you get paid. Keep careful records.

[justin moffatt]

Thanks PRAGIC. Great advice as usual.

Ironically, the company actually had a record log which I signed and the class leader also signed. The only problem it is in my supplement book in their conference room. Figuring out some ways to get it back.

[justin moffatt]

The headaches continue.

Just started a contract with a major Korean company through a contracted agency. I have dealt with the agency before and realized going in, that they tend to make a mess of things.

The agency agreement was 5 office hours daily with 2-3 being actual contact hours with clients (maximum). My contract was the usual standard vague "we can fire you anytime" but "you have to give us 2 weeks notice" garbage.

Not surprisingly, the contracted agency STILL (after 3 weeks) cannot explain what exact services the company wants. They even claimed that the trainees have stated that I "don't know what I am doing", when I have given the standard intro sessions (with great responses from trainees). Furthermore, the company is also asking for additional favours claiming that the contracted agency stated that I "would do anything they want during the 5 office hours". Moreover, the Korean company has me working out of a storage room!

I lost it over the phone with the contracted agency, and expressed my dismay with the HR manager of the contracted company. I also wrote an e-mail expressing my concerns and clear expectations for my responsibilities and requirements. I am seriously considering walking away from this contract, but a) am worried about my reputation in the business community (which is VERY SMALL in Seoul) b) worried about not getting paid c) financial crisis has forced many companies to cut back on consultancy and training programs (hence fewer contracts in Jan 2009). What to do . . .