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GEPIK Security Deposit
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winterfall



Joined: 21 May 2009

PostPosted: Mon Jul 05, 2010 5:59 pm    Post subject: GEPIK Security Deposit Reply with quote

I was looking at the GEPIK contract and it says you must

"1. Employee shall be responsible for and protect Employer from any liability or damages arising from or in relation to any negligent, faulty, or illegal activity during the Term of Employment.Therefore, Employee shall agree in written form to provide 300,000 KRW per month to school administration office every month for the first 3 months of employment until it amounts to a total of 900,000 KRW.

2. Employee who has their own housing arrangement and married couples who are both employed by GPOE shall also be required to provide the deposit to school respectively"

Is this enforced? It doesn't make any sense to give the school close to a million won if you DON'T NEED their housing. Especially since there's no chance the school won't find a reason to not give you your money back.
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fugitive chicken



Joined: 20 Apr 2010
Location: Bucheon

PostPosted: Mon Jul 05, 2010 7:02 pm    Post subject: Reply with quote

The answer is YES, it is enforced. However, there is no reason for them NOT to give it back unless you are involved in illegal dealings. But if they don't give it back you have the GEPIK higher-ups to help you get it. Public schools are under the watchful eye of the Korean government and when they don't obey the contract, you have someone to contact if this happens.
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Kaypea



Joined: 09 Oct 2008

PostPosted: Mon Jul 05, 2010 7:05 pm    Post subject: Reply with quote

Slightly OT, but does anybody know what happens with that deposit when you re-sign? Does it just roll over into the next year?

It's weird that they still want it if you rent your own house, but I heard that the deposit is to cover all sorts of stuff, like if you leave Korea and leave unpaid bills of any sort.
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winterfall



Joined: 21 May 2009

PostPosted: Mon Jul 05, 2010 7:07 pm    Post subject: Reply with quote

Kaypea wrote:
Slightly OT, but does anybody know what happens with that deposit when you re-sign? Does it just roll over into the next year?

It's weird that they still want it if you rent your own house, but I heard that the deposit is to cover all sorts of stuff, like if you leave Korea and leave unpaid bills of any sort.


See but that's the part that doesn't make any sense. If you leave unpaid bills, why would the school foot the bill if you weren't in their housing? They didn't pay the key money and they didn't co-sign the renting agreement. So they're not obligated to do any of that, especially if they don't have to sponsor your visa.

If this was a pure housing deposit, I'd understand. But its not
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techno_the_cat



Joined: 30 Aug 2006

PostPosted: Mon Jul 05, 2010 7:20 pm    Post subject: Reply with quote

Yes it is enforced, but not all schools choose to take the full 900 000 won. My friend's old school only took 400 000 when he started. When I re-signed my school gave me the 900 000 back...And then asked for it back a few days later.
The whole thing is a bit of a ploy to keep you from running. But they are pretty steadfast about giving it back to you when you're done.
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louiloui



Joined: 14 Oct 2008

PostPosted: Mon Jul 05, 2010 7:40 pm    Post subject: Reply with quote

There's not much you can do here. Pay the money and think of it as forced savings. If it's public school you'll get the money back. As other posters have pointed out it is to pay recruiter fees and/or unpaid bills if you decide to run.

Sometimes there is a separate 300,000 housing deposit that teachers with their own apartment don't have to pay, but this depends on your contract or area. The reason they mention teachers with their own housing here is to make it clear that they are still responsible for the 900,000 deposit regardless of their housing situation.
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ttompatz



Joined: 05 Sep 2005
Location: Kwangju, South Korea

PostPosted: Mon Jul 05, 2010 7:40 pm    Post subject: Reply with quote

winterfall wrote:
Kaypea wrote:
Slightly OT, but does anybody know what happens with that deposit when you re-sign? Does it just roll over into the next year?

It's weird that they still want it if you rent your own house, but I heard that the deposit is to cover all sorts of stuff, like if you leave Korea and leave unpaid bills of any sort.


See but that's the part that doesn't make any sense. If you leave unpaid bills, why would the school foot the bill if you weren't in their housing? They didn't pay the key money and they didn't co-sign the renting agreement. So they're not obligated to do any of that, especially if they don't have to sponsor your visa.

If this was a pure housing deposit, I'd understand. But its not


Because they are LEGALLY RESPONSIBLE for you as YOUR SPONSOR in the country.

The deposit is a liability deposit for any number of things (like you hit a kid and break his arm) and not just a security deposit for your house and utility bills.

.
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winterfall



Joined: 21 May 2009

PostPosted: Mon Jul 05, 2010 8:00 pm    Post subject: Reply with quote

ttompatz wrote:
winterfall wrote:
Kaypea wrote:
Slightly OT, but does anybody know what happens with that deposit when you re-sign? Does it just roll over into the next year?

It's weird that they still want it if you rent your own house, but I heard that the deposit is to cover all sorts of stuff, like if you leave Korea and leave unpaid bills of any sort.


See but that's the part that doesn't make any sense. If you leave unpaid bills, why would the school foot the bill if you weren't in their housing? They didn't pay the key money and they didn't co-sign the renting agreement. So they're not obligated to do any of that, especially if they don't have to sponsor your visa.

If this was a pure housing deposit, I'd understand. But its not


Because they are LEGALLY RESPONSIBLE for you as YOUR SPONSOR in the country.

The deposit is a liability deposit for any number of things (like you hit a kid and break his arm) and not just a security deposit for your house and utility bills.

.


ttompatz thanks for that overly aggressive reply. But if you read the whole post. I said "Especially if they don't have to sponsor your visa."

I'm an F-Class. Place of employment and visa sponsors are different
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ttompatz



Joined: 05 Sep 2005
Location: Kwangju, South Korea

PostPosted: Mon Jul 05, 2010 8:26 pm    Post subject: Reply with quote

ttompatz wrote:
The deposit is a liability deposit for any number of things (like you hit a kid and break his arm) and not just a security deposit for your house and utility bills.

.


Yup... and equally aggressive to NOT read the WHOLE post but respond only to 1 sentence out of context in an aggressive manner.

So if you break little minsu's arm when you grab him or give little mina a concussion when you give her that little love-tap for misbehaving they are liable and hence YOUR need to have a liability deposit to cover them for YOUR potential misdeeds.

I didn't write the government policy nor did I create the "blood money" mentality that exists here but at the end of the day, that is the original reason behind it.

And nowhere in your post did you indicate that you were on an "F" visa (or did I miss it with my dimming vision in my old age?).

.
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southernman



Joined: 15 Jan 2010
Location: On the mainland again

PostPosted: Tue Jul 06, 2010 4:00 pm    Post subject: Reply with quote

I agree with the OP, it does sound like overkill.

Also it could be seen that even after the recruiting, that entails letter writing, form filling, phone calls and a phone interview plus references and as they did in my case a call to my Hagwon director for his opinions.

That they are still unsure of the character of the applicants that they have chosen.

Also EPIK doesn't require this outlay of money, the differences between the various Education boards is quite marked and strange
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Otherside



Joined: 06 Sep 2007

PostPosted: Wed Jul 07, 2010 4:46 pm    Post subject: Reply with quote

OP, it's a generic clause in the contract which is enforced.

For the vast majority of teachers who are sponsored by school and/or live in the school housing it makes a lot of sense.

You are the exception to the norm, but without knowing the EXACT details of your relationship with the school, the deposit also provides some insurance against runners and allows the school to recoup some of the costs (airfare/recruiting etc) that it spent on hiring you.

I know from personal experience that the deposit is returned after the contract is completed. My deposit was returned a month after leaving my job as the school needed to deduct the final month's bills, and the numbers matched up.

Friends of mine have left mid-contract (with giving the required 2 months notice) and have received their deposits back. Those who have left without the required 2 months notice, did not have their deposits returned.
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jcd



Joined: 13 Mar 2012

PostPosted: Wed Jul 02, 2014 11:31 pm    Post subject: Reply with quote

Is it illegal for the school to take the 300k deposit out of your salary every month. I was told I have to send it to my school's bank account, and that it is illegal. It's kind of a pain to have to send it to them.
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nicwr2002



Joined: 17 Aug 2011

PostPosted: Thu Jul 03, 2014 2:15 am    Post subject: Reply with quote

I thought this topic was brought up before, but about hagwons withholding money and making you pay a deposit. It was said that it was illegal for them to do that. So, it isn't illegal for a public school to do it?
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beentheredonethat777



Joined: 27 Jul 2013
Location: AsiaHaven

PostPosted: Thu Jul 03, 2014 3:19 am    Post subject: Reply with quote

Quote:
jcd wrote:
Is it illegal for the school to take the 300k deposit out of your salary every month. I was told I have to send it to my school's bank account, and that it is illegal. It's kind of a pain to have to send it to them.

NO, it is not illegal.

Yes, they will give it back to you at the end of the year.

Each public school handles this in different ways. Some ask you to deposit 300,000 Korean won into their account by a certain date, some say bring it to the accountant office, others just deduct it from your pay for the first three months. They are just as unsure about what do with it as you are.
Some schools return it on the last day of work, others return it 10 days later. That is also legal.

If you re-sign for another year. It starts a new contract and they take the money out all over again and hold it. At least that is what my public school did.

Even the married teachers who OWNED their homes in the countryside had to pay the deposit. Of course this doesn't make sense. One teacher asked them if they were going to come to her house to see if her son had drawn on the wall with a crayon or broken his toys. It was kind of over the top questioning, but they responded," Sorry its the law. We have to set aside the deposit." And it was so.

Only do this is it is a public school. NEVER EVER give a deposit or cash of any amount to any HOGWAN for any reason.
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alongway



Joined: 02 Jan 2012

PostPosted: Thu Jul 03, 2014 3:36 am    Post subject: Reply with quote

Quote:
allows the school to recoup some of the costs (airfare/recruiting etc) that it spent on hiring you.


They're required to give the deposit back. It's a deposit. How can it let them recoup anything?

Quote:
Article 20 (Prohibition of Predetermination of Nonobservance)
No employer shall enter into a contract by which a penalty
or indemnity for possible damages incurred from breach of a
labor contract is predetermined.


and

Quote:
Article 22 (Prohibition of Compulsory Saving)
(1) No employer shall enter into a contract with a worker,
in addition to a labor contract, which stipulates compulsory
savings or the management of savings.

It's very interesting what the labour board considers to be a "savings program". I wonder if anyone has ever bothered to ask them about this clause in the contract.

The fact that they make a point of saying they're requesting it for people who provide their own houses etc, and likely not from Koreans makes this seem rather discriminatory.
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