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cubanlord

Joined: 08 Jul 2005 Location: In Japan!
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Posted: Mon Feb 08, 2010 4:56 am Post subject: F-class visa holders, your time is up!!!! |
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http://www.koreatimes.co.kr/www/news/nation/2010/02/117_60502.html
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Currently, foreigners violating the Immigration Law are subject to deportation. However, education and tax authorities see that legalizing private tutoring by foreigners could be a solution to the problem.
The Ministry of Education, Science and Technology, which deals with foreigners holding F-series visas, are authorized to arrest illegal tutors but the heaviest punishment is a fine.
Kim Chul-woon, director of the Private Institute Monitoring Team at the ministry, said, "It is hard to control the mushrooming illegal private tutoring, so it would be better for immigration offices to allow foreigners to tutor privately and impose taxes on that income."
The National Tax Service also supports the idea of opening the tutoring market to foreigners and making them pay taxes on the money they make. |
What is everyone's thought on this? For one, the high rates charged by foreigners would greatly decrease due to the sheer amount of people signing up for it. Say goodbye to the 50,000 an hour rates and up. Second, it makes it legal. For only 3.3% off of say 40 or 50,000 an hour, that's a small price to pay to make it legal. However, don't forget that the overall tax rate may increase thereby causing the 3.3% to increase to a MUCH higher percentage. |
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bassexpander
Joined: 13 Sep 2007 Location: Someplace you'd rather be.
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Posted: Mon Feb 08, 2010 4:58 am Post subject: |
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Won't happen, simply for the fact that it would really hurt hagwons AND the money would be subject to leaving the country.
On another note, few F-2's I know of actually do much private teaching. They all make their bread from company jobs and second jobs. An F-2 learns pretty quick that there isn't a lot of money in doing a one-hour private, traveling 1 hour to the next, then finding it's been canceled, etc. One can spend half of their evening traveling for just a few hours teaching.
Smart F-2's go for long blocks of time at another school, for example. Or they have their own business (many of which do so legally).
Changing this law wouldn't make a difference to F-2's. It would hurt E-2's far more.
Last edited by bassexpander on Mon Feb 08, 2010 5:03 am; edited 1 time in total |
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Captain Marlow

Joined: 23 Apr 2008 Location: darkness
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Posted: Mon Feb 08, 2010 5:02 am Post subject: |
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will the hagwon lobbyists let this go through? probably not... why should parents pay a hagwon when they can get one-on-one privates for their children from the comfort of their own home? and if the tutoring prices per hour do go down, that's just more incentive for parents to yank their children out of hagwons and enroll a tutor's help...
just my first thought... |
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bassexpander
Joined: 13 Sep 2007 Location: Someplace you'd rather be.
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Posted: Mon Feb 08, 2010 5:06 am Post subject: |
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Yep. Gov't could care less about the hagwons, but they REALLY care about letting money leave the country. If you think banking laws are tight now... wait until 6 months after such a thing goes through. |
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tzechuk

Joined: 20 Dec 2004
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Posted: Mon Feb 08, 2010 5:19 am Post subject: |
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I really, really doubt the hourly rate would go down even if they legalise private tutoring because everyone knows what the going rate is.
Of course, this is not taking into account demand and supply... but in case you haven't noticed, the demand and supply law doesn't really apply in Korea..
Also, I highly doubt that the government is going to allow foreigners to only do private tutoring - this will become freelance - and no country that-I-know-of allows non-citizens to freelance. How would they issue a work visa? On what justification? Would they create a *freelance* category?
Furthermore, even if you do charge a much lower rate, there are still plenty of people who cannot afford it. Lest we forget, a lot of the times hagwons are used as a babysitting service. You pay 150,000 a month, 5 days a week, an hour a day. That's 7,500 won an hour per day. A private tutor, how ever low, will NOT charge a measly sum of 7,500 an hour.
Competition is healthy, and if it does go through, it may just increase the quality of education... on the other hand, I don't think Koreans know the meaning of quality.... |
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Troglodyte

Joined: 06 Dec 2009
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Posted: Mon Feb 08, 2010 5:44 am Post subject: |
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It wouldn't be something extraordinary for them to create a "freelance" visa. There are a lot of countries in Europe that issue young people (i.e. in their 20s) work-travel visas. Depending on the country and bilateral agreements, the visas are anywhere from 3 months to 2 years.
I don't think we'll see that anytime soon in Korea, and I doubt many teachers would go for it. It's so easy for travellers here to pick up a few classes for a couple months in Seoul or Busan and then move on to somewhere else in Asia. For the paperwork necessary to get such a visa I doubt most people would apply.
If immigration let E2s teach freelance on top of their regular work, without additional permission from the employer or immigration, then I think that a lot of people would go for it. How many of them would declare taxes on their additional income is another story. Either way, a lot of illegal teaching happens and the majority of it is by E2s. From the number of travellers that I've met (people just passing through) I doubt they comprise a large percentage of the illegal teaching by NETs. Legalising the freelance work by E2 holders would not decrease the money going out of the country (let face it, we don't represent a large part of the Korea economy anyway). What it would do is allow honest people to pay taxes on their freelance work. I don't think taxes would increase either. They is no real reason for it to do so. |
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nautilus

Joined: 26 Nov 2005 Location: Je jump, Tu jump, oui jump!
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Posted: Mon Feb 08, 2010 6:10 am Post subject: |
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bassexpander wrote: |
Won't happen, simply for the fact that it would really hurt hagwons AND the money would be subject to leaving the country. |
The money will get earned and leave the country anyway. Immigration raids have not even dented the whole privates industry here and they know they haven't a hope of doing so.
If they tax it then they're getting more money back than if not...so I can see it happening. |
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robot

Joined: 07 Mar 2006
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Posted: Mon Feb 08, 2010 6:37 am Post subject: |
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bassexpander wrote: |
On another note, few F-2's I know of actually do much private teaching. They all make their bread from company jobs and second jobs. An F-2 learns pretty quick that there isn't a lot of money in doing a one-hour private, traveling 1 hour to the next, then finding it's been canceled, etc. One can spend half of their evening traveling for just a few hours teaching.
Smart F-2's go for long blocks of time at another school, for example. Or they have their own business (many of which do so legally).
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Bang-on. |
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SanchoPanza
Joined: 10 Jan 2010 Location: London
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Posted: Mon Feb 08, 2010 2:57 pm Post subject: |
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robot wrote: |
bassexpander wrote: |
On another note, few F-2's I know of actually do much private teaching. They all make their bread from company jobs and second jobs. An F-2 learns pretty quick that there isn't a lot of money in doing a one-hour private, traveling 1 hour to the next, then finding it's been canceled, etc. One can spend half of their evening traveling for just a few hours teaching.
Smart F-2's go for long blocks of time at another school, for example. Or they have their own business (many of which do so legally).
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Bang-on. |
Bang-off.
In my experience it is the exact opposite. ALL of my F-2 friends
teach privates exclusively. Many of them advertise in the apartment
buildings near their homes. They can get 4-5 privates per night with no
more than 5-10 minutes walking time between classes. Travel is for suckers.
Working for Koreans is for suckers. Working for middlemen
is for suckers. |
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bassexpander
Joined: 13 Sep 2007 Location: Someplace you'd rather be.
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Posted: Mon Feb 08, 2010 3:07 pm Post subject: |
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SanchoPanza wrote: |
robot wrote: |
bassexpander wrote: |
On another note, few F-2's I know of actually do much private teaching. They all make their bread from company jobs and second jobs. An F-2 learns pretty quick that there isn't a lot of money in doing a one-hour private, traveling 1 hour to the next, then finding it's been canceled, etc. One can spend half of their evening traveling for just a few hours teaching.
Smart F-2's go for long blocks of time at another school, for example. Or they have their own business (many of which do so legally).
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Bang-on. |
Bang-off.
In my experience it is the exact opposite. ALL of my F-2 friends
teach privates exclusively. Many of them advertise in the apartment
buildings near their homes. They can get 4-5 privates per night with no
more than 5-10 minutes walking time between classes. Travel is for suckers.
Working for Koreans is for suckers. Working for middlemen
is for suckers. |
I don't know anyone on the AFEK (F-2) board who does this exclusively. Not saying it doesn't happen, but most F-2's know that privates are generally an unreliable source of income and not usually worth the effort unless blockable in the right area. F-2's have families, and need jobs they can count on to provide bank consistently. Privates often cancel, or can be somewhat seasonal. Then there are legal issues and chances of being caught/dobbed-in these days.
I'm guessing your "friends" probably don't look the part enough to get hired at the lucrative company gigs, or perhaps even with the right schools sans recruiter. Not calling the individual unattractive, mind you -- perhaps just not what fits the somewhat racist Korean mindset.
And who said anything about having to work for a middleman? You're talking like an E-2 who has no experience as an F-2. |
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big_fella1
Joined: 08 Dec 2005
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Posted: Mon Feb 08, 2010 3:44 pm Post subject: Re: F-class visa holders, your time is up!!!! |
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cubanlord wrote: |
What is everyone's thought on this? For one, the high rates charged by foreigners would greatly decrease due to the sheer amount of people signing up for it. Say goodbye to the 50,000 an hour rates and up. Second, it makes it legal. For only 3.3% off of say 40 or 50,000 an hour, that's a small price to pay to make it legal. However, don't forget that the overall tax rate may increase thereby causing the 3.3% to increase to a MUCH higher percentage. |
Cuban I'm not sure where to begin. Firstly the high rate or 40, or 50,000 an hour. This is not high! English is sold between w90,000 and w120,000 per hour. It's the reason many F visa holders don't do home tutoring, it doesn't pay enough. Now many bad recruiters (is scum sucking vampires against the T.O.S. as vampires may be upset) pocket most of this whilst not providing a curriculum for the teacher to teach.
And would people learn 3.3% is not tax It is a withholding amount to meet your tax liabilities. Now that we have lost our 30% exemption this may not cover the tax for some F visa holders and we will need to pay extra tax in May. Further Pension and National Health insurance need to be paid on these sums meaning a further 13.21% needs to be deducted (9% pension and 4.21% health).
Finally look at the author Kang Shin-who, and read the article. This has a quote from one civil servant, that it would be a good idea. It's not a law or even the makings of one, he doesn't even appear to have a source at the NTS. |
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Pinished
Joined: 08 Dec 2009
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Posted: Mon Feb 08, 2010 4:17 pm Post subject: |
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Troglodyte wrote: |
It wouldn't be something extraordinary for them to create a "freelance" visa. If immigration let E2s teach freelance on top of their regular work, without additional permission from the employer or immigration, then I think that a lot of people would go for it. How many of them would declare taxes on their additional income is another story. Either way, a lot of illegal teaching happens and the majority of it is by E2s. |
E-2's already work "Freelance." This isn't necessarily done with their knowledge but it happens when they work a second job like at an after-school program. The after-school program or public school doesn't file their taxes as is the law for Korean employers. The tax authorities don't care about classifying E-2 visa holders as "Freelancers" and neither does the Labor Ministry. You'd think the tax authorities would care being that nobody is paying taxes on much $$$ earned. Immigration on the other hand says E-2's can't be "Freelancers," but who are they to tell the tax authorities what's up? |
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Mr. Pink

Joined: 21 Oct 2003 Location: China
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Posted: Mon Feb 08, 2010 4:59 pm Post subject: |
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The title of this thread is pretty sensational. Has someone been reading too many Korean newspaper articles?
I have to agree with the other F-visa posters: doing exclusively private tutoring is not a secure way to bring in the bank.
Having a decent day job and doing some at night or having two day jobs is what most F-visa people I know do.
Also, the amounts might go down, but for experienced teachers, I think they can demand what they want. Clients can take it or leave it. |
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BoholDiver
Joined: 03 Oct 2009 Location: Canada
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Posted: Mon Feb 08, 2010 5:18 pm Post subject: |
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In my experience, the best way to make money (other than opening your own place) is to secure a full time job with short hours and relatively good pay. Then fill in the remaining hours with blocked privates. |
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pkang0202

Joined: 09 Mar 2007
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Posted: Mon Feb 08, 2010 5:29 pm Post subject: |
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Private tutoring isn't the cash cow people think it is. If you have the time, the connections, and the energy then it can be lucrative. The number of Koreans willing to throw down 50,000w an hour for private tutoring is far and few. |
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