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Fallacy
Joined: 29 Jun 2015
Location: ex-ROK
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 Posted: Sat Aug 29, 2015 4:23 pm Post subject: RE: Why the market is flooded |
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It is time to put much of the financial speculation to rest. Here are the latest figures released by the ROK government for 2Q 2015 regarding household incomes and expenditures:
1st quintile 2nd quintile 3rd quintile 4th quintile 5th quintile
Number of household members
2.44 persons 3.06 persons 3.29 persons 3.48 persons 3.62 persons
Age of household head
59.5 years 49.7 years 46.9 years 47.1 years 48.3 years
Monthly employee income (Amount and % Change +/- yoy)
654,600 (+12.6) 1,743,700 (0.0) 2,571,100 (+3.3) 3,629,400 (0.0) 5,446,500 (+1.6)
Monthly consumption expenditure
1,274.8 (+1.5) 1,997.5 (+2.6) 2,491.0 (+1.5) 2,930.5 (+4.0) 3,776.4 (-3.4)
With this latest data, perhaps now discussion of local wages and costs can be properly aligned in comparison with the surrounding neighbors, and answers to the question of "Why the market is flooded?" can be concluded more accurately. Carry on. |
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edwardcatflap
Joined: 22 Mar 2009
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| Posted: Sat Aug 29, 2015 4:48 pm Post subject: |
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BA: $57,252 = 67,559,363.82 won = 5.63 million per month
MA: $68,952 = 81,365,773.32 won = 6.8 million per month
Taking into account benefits (such as retirement money):
BA: $76,145 = 89,853,765.07 won = 7.49 million per month
MA: $91,706 = 108,216,290 won = 9.96 million per month
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So what are these US benefits that add an extra 3 mil won a month to one's salary? |
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Fallacy
Joined: 29 Jun 2015
Location: ex-ROK
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| Posted: Sat Aug 29, 2015 5:04 pm Post subject: |
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| edwardcatflap wrote: |
| So what are these US benefits that add an extra 3 mil won a month to one's salary? |
This exactly. I second edwardcatflap.
Additionally, those will not be net figures, which will overinflate the values. For example, in the US, the benefit of health insurance can lift the gross income amount by $1000 USD or more per month, whereas in the ROK, that benefit might only inflate the gross by a $150 USD exchange adjusted equivalent. In that case, a gross monthly US salary of $5000 USD vs. ROK salary of $3500 USD ends up net $4000 vs. $3350 after subtracting just the cost of health insurance benefits. Thus, any figures not fully detailed in explanation can become potentially misleading. |
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GENO123
Joined: 28 Jan 2010
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| Posted: Sat Aug 29, 2015 7:00 pm Post subject: |
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| Koreans probably earn more than official government figures. There is so much hidden money and some employees get benefits like the use of a company credit card. |
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edwardcatflap
Joined: 22 Mar 2009
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| Posted: Sat Aug 29, 2015 7:33 pm Post subject: |
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| GENO123 wrote: |
| Koreans probably earn more than official government figures. There is so much hidden money and some employees get benefits like the use of a company credit card. |
Oh I see, so Koreans probably earn more than their official salaries and EFL teachers exaggerate it by 30%
Fits in very nicely with your theory about wage disparity. |
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World Traveler
Joined: 29 May 2009
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| Posted: Sat Aug 29, 2015 7:58 pm Post subject: |
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| edwardcatflap wrote: |
| So what are these US benefits that add an extra 3 mil won a month to one's salary? |
Employee benefits in the United States might include relocation assistance; medical, prescription, vision and dental plans; health and dependent care flexible spending accounts; retirement benefit plans (pension, 401(k), 403(b)); group-term life and long term care insurance plans; legal assistance plans; adoption assistance; child care benefits; transportation benefits; and possibly other miscellaneous employee discounts (e.g., movies and theme park tickets, wellness programs, discounted shopping, hotels and resorts, and so on). Companies provide benefits that go beyond a base salary figure for a number of reasons: To raise productivity and lower turnover by raising employee satisfaction and corporate loyalty, take advantage of deductions, credits in the tax code.
Check out Google yourself, if you're interested, TheUrbanMyth.
According to the Bureau of Labor Statistics, in September of 2013 the average employee benefits package comprised 31 percent of the total compensation package
Not only that, but the more professional the job/ the more highly educated the workers, the better the benefits.
For example, when teachers in the United States retire (in their mid 50s), they get roughly 50K a year for the rest of their life. That's well over a million dollars. They also get to keep having health insurance coverage for the rest of their life for them and their spouse. That's quite a lot of compensation. |
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World Traveler
Joined: 29 May 2009
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| Posted: Sat Aug 29, 2015 8:04 pm Post subject: |
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| Fallacy wrote: |
| those will not be net figures, which will overinflate the values. |
For those with coverage, the U.S. health care system is superior to the Korean one, especially for major ailments.
In Korea, the national health insurance covers the majority of the cost of minor issues, but only the minority of the cost of major issues. (In this case, the patient must pay 60% of total treatment cost and other expenses.) |
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Fallacy
Joined: 29 Jun 2015
Location: ex-ROK
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| Posted: Sat Aug 29, 2015 8:20 pm Post subject: |
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| The discussion was in regards to disparity as measured in quantitative (financial) terms, but now the terms are being shifted to qualitative measures. Deductions from salary for benefits vs. presumptions from value for benefits. Does this answer the OP's question about "Why the market is flooded?" Is it that the ROK is flooded because salaries are quantitatively lower and benefits qualitatively inferior? If so, then problem solved. Opened and closed by the OP, the thread is at an end. If not, then discussion continues. |
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World Traveler
Joined: 29 May 2009
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| Posted: Sat Aug 29, 2015 8:25 pm Post subject: |
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| With ESL teaching, the money is all given upfront (rather than set aside for retirement), so it appears to be more (and Western salaries appear to be less) than they really. Something to consider when making a comparison. |
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edwardcatflap
Joined: 22 Mar 2009
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| Posted: Sat Aug 29, 2015 8:25 pm Post subject: |
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| World Traveler wrote: |
| edwardcatflap wrote: |
| So what are these US benefits that add an extra 3 mil won a month to one's salary? |
Employee benefits in the United States might include relocation assistance; medical, prescription, vision and dental plans; health and dependent care flexible spending accounts; retirement benefit plans (pension, 401(k), 403(b)); group-term life and long term care insurance plans; legal assistance plans; adoption assistance; child care benefits; transportation benefits; and possibly other miscellaneous employee discounts (e.g., movies and theme park tickets, wellness programs, discounted shopping, hotels and resorts, and so on). Companies provide benefits that go beyond a base salary figure for a number of reasons: To raise productivity and lower turnover by raising employee satisfaction and corporate loyalty, take advantage of deductions, credits in the tax code.
Check out Google yourself, if you're interested, TheUrbanMyth.
According to the Bureau of Labor Statistics, in September of 2013 the average employee benefits package comprised 31 percent of the total compensation package
Not only that, but the more professional the job/ the more highly educated the workers, the better the benefits.
For example, when teachers in the United States retire (in their mid 50s), they get roughly 50K a year for the rest of their life. That's well over a million dollars. They also get to keep having health insurance coverage for the rest of their life for them and their spouse. That's quite a lot of compensation. |
OK so the main thing is full medical insurance and pension contribution, which I got in my last job. The medical insurance when they calculate the 31% would be based on what the private individual would have to pay not the discounted rate the company pays. Of course if you live in a country where medical care is free at the point of contact you wouldn't need this benefit. A lot of that other stuff is just perks. E.g. the last place I worked in often had free tickets for operas and other cultural stuff which i never went to. But I guess I could add up the price I would have to pay to see every single opera they had free tickets for and add the figure to my salary when people ask me how much I earned. If I was a bit of a dick. |
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Fallacy
Joined: 29 Jun 2015
Location: ex-ROK
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| Posted: Sat Aug 29, 2015 8:30 pm Post subject: |
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| World Traveler wrote: |
| For example, when teachers in the United States retire (in their mid 50s), they get roughly 50K a year for the rest of their life. That's well over a million dollars. They also get to keep having health insurance coverage for the rest of their life for them and their spouse. |
Incorrect. Every one of the 50 states offers different packages. This sweeping generalization is misinformation. Furthermore, several states which currently offer teachers retirement packages resembling the one described above are in the political process of scaling back or removing them entirely. |
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Fallacy
Joined: 29 Jun 2015
Location: ex-ROK
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| Posted: Sat Aug 29, 2015 8:32 pm Post subject: |
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| World Traveler wrote: |
| According to the Bureau of Labor Statistics, in September of 2013 the average employee benefits package comprised 31 percent of the total compensation package |
This. Much better evidence in support of argument. |
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Fallacy
Joined: 29 Jun 2015
Location: ex-ROK
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| Posted: Sat Aug 29, 2015 8:34 pm Post subject: |
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| World Traveler wrote: |
| With ESL teaching, the money is all given upfront (rather than set aside for retirement), so it appears to be more (and Western salaries appear to be less) than they really. Something to consider when making a comparison. |
Incomprehensible. These sweeping generalizations again! |
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World Traveler
Joined: 29 May 2009
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| Posted: Sat Aug 29, 2015 8:34 pm Post subject: |
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| edwardcatflap wrote: |
| The medical insurance when they calculate the 31% would be based on what the private individual would have to pay not the discounted rate the company pays. |
I think that's not the case.
"Wages and salaries account for 69.6 percent of employee expense. The remaining 30.4 percent comes from benefits. That means that a little less than one third of your employee expenses are benefits such as health insurance, and these costs should be factored in when you are considering adding employees." |
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GENO123
Joined: 28 Jan 2010
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| Posted: Sat Aug 29, 2015 8:46 pm Post subject: |
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| edwardcatflap wrote: |
| GENO123 wrote: |
| Koreans probably earn more than official government figures. There is so much hidden money and some employees get benefits like the use of a company credit card. |
Oh I see, so Koreans probably earn more than their official salaries and EFL teachers exaggerate it by 30%
Fits in very nicely with your theory about wage disparity. |
ever heard about company credit cards? or pay in cash? I am curious do you think the street cart ajumas report all their income?
Korea is much more expensive and Koreans are richer than people say.
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| A guy recently went to South Korea and didn’t have much luck with women until him and his buddies put down $1,100 for bottle service at the club. |
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| Currently as of October 2012, the most happening night club is Octagon in Nonhyundong. Again, status is king here. I went twice this past trip: the first time I ran regular dance and bar game and got probably an 80% blowout rate, a few numbers, and one tiny makeout before the girl got pulled away by her friends to some other dude’s table. The next night, I swallowed my pride and bought a table with a couple of other guys. At 1.2 million won ($1100 tax/tip included) split four ways, it was roughly the same as an LA club (infinitely cheaper than Vegas though)… After opening girls on the dance floor, I’d say at least 50% came upstairs with us after finding out we had a table. |
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| This man had to spend $275 just not to get blown out. How about day game? |
http://www.returnofkings.com/248/the-case-is-building-against-south-korean-women
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Anyway you said I was a prophet of doom- are you sure you just ought to have not said prophet?
http://forums.eslcafe.com/korea/viewtopic.php?t=234312&postdays=0&postorder=asc&start=0
Teachers on this board have heard so much hogwon propaganda they believe it because the alternative would be impossible to accept.
At any rate you are not in esl anymore so I don't know how you know anything whatsoever about current conditions .
Last edited by GENO123 on Sat Aug 29, 2015 9:39 pm; edited 1 time in total |
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