Korean Job Discussion Forums

Ilsanman · Joined: 15 Aug 2003 Location: Bucheon, Korea

I am considering getting one of those after school program jobs early next year. I know all about that tax scam they do with the bankbook.

I was wondering if anyone here got a job at one of these places that didn't do this tax scam. I guess that if and when I interview with them, they'll tell me about it. When I refuse to do it, they may just refuse me.

I know asking for a reputable company is a lot to ask, but if anyone can help me out, that'd be cool.

aphase · Joined: 27 Apr 2006

Actually yes, I've gotten a job with an after school program that doesn't do the double bank book scam. When I interviewed with them, I simply told them the honest truth that I knew what it was all about and that I didn't want to do it. I didn't want to be liable for their taxes later down the road. They were pretty understanding about it.

Not all companies are like that though. I've interviewed with several in the past that were always insistent on making another bank book and giving it to them. I just simply told them I wouldn't take the job.

DeLaRed · Joined: 16 Oct 2008

as a newbie can you tell me about this tax scam?Don`t want to get stung whilst applying for jobs in the near future.

Ilsanman · Joined: 15 Aug 2003 Location: Bucheon, Korea

They ask you to make a bankbook and give them the card and book, they use your account to funnel the money through.

Since it comes through on your name, the company can dodge taxes.

I may try that. Tell them straight out I won't do it, even if other teachers do. If they refuse me, it's their loss.

TheUrbanMyth · Joined: 28 Jan 2003 Location: Retired

saw6436 · Joined: 16 Jan 2003 Location: Daejeon, ROK

And don't forget that it's not just your money they are depositing in your account. Frequently it is the pay for all the teachers working through them. That adds up to a big ammount pretty quick.

Donald Frost · Joined: 20 Oct 2008

Young FRANKenstein

crazy_arcade · Joined: 05 Nov 2006

crazy_arcade · Joined: 05 Nov 2006

The after school tax scam is something that really gets on my nerves and I could go on and on about it!!!

It's really something that public schools need to educate themselves on (but many really couldn't care as long as they get their white face).
Teachers need to stop accepting the scam positions (GOOD ON YA OP!)
and the police really should be doing something about something so obvious.

Finally, the after school tax scam is partly where the rumors come from that foreigners get paid a ton of money for very little, easy work. Generally speaking....5 or 6 (sometimes more) million won is funneling through there in the teacher's name. I saw the books when I was scammed (4.5 years ago) and the pay rate was 90,000 per teaching hour....I was seeing....what....25 of that?

If you're being scammed, do all of us a favour, in your last month close down the account and clean it out. Legally, there's nothing that can be done since it's all in your name.

movybuf · Joined: 01 Jan 2007 Location: Mokdong

Doesn't the elementary school where you are working pay the taxes on your income?

I thought that technically an after-school program worker was employed (on paper) through the elementary school, but the pay was funneled off by the company running the program. For example, if the school is giving you 4 million a month, paying taxes on 4 million and then the company is paying you 2.5 million, the taxes were paid on the original 4 million. Am I wrong?

Cheonmunka · Joined: 04 Jun 2004

The tuition fees all go to you.
These programs get away with it as teachers don't usually stay so long. But, if you are in for the long term this will come back and bite your ass. Taxes are of course offset until the following tax year. So, problems can occur if you file a return. Some people have to file returns. Especially those with families. If you earn more than four or five million expect to pay a couple of million come tax time. Also, you won't get and can't claim any benefits for your kids like kindergarten fees subsidies stuff like that as you are in the higher earner bracket. And, unlike the agent, you can't hide the income.

hogwonguy1979 · Joined: 22 Dec 2003 Location: the racoon den

anybody remember Bill Kapoun, the guy who died in the fire and all fundraisers etc? He was employed in one of these after school tax scam programs.

that should waring enough to avoid these programs

Chet Wautlands · Joined: 11 Oct 2008

I've heard stories of bosses manipulating foreign teachers' bank accounts without a bank book or card by simply saying that they are doing it FOR the foreign teacher.

If at all possible, set up your bank account on your own. Never give your bank card, bank book, or any other banking documents to your boss.

This is for hagwons, of course.

Young FRANKenstein · Posted: Fri Dec 26, 2008 9:46 pm Post subject: