Korean Job Discussion Forums

[Crois]

My flatmate had a phone call today from our boss saying that she has to go to the bank with her and open a bank account. I say she doesnt have to do it but she feels as though she has to otherwise they will fire her or make her life hell. Our boss is weird to the female teachers.

Well she goes and they open an account in my flatmates name and the boss keeps the details. Apparently it's so the elementary school can pay the fees or the parents to pay the hogwon for our lessons.

The situation is that we work at our hogwon and also at other elementary schools because our hogwon had a contract with the elementary that we can work in the classrooms. I work 3 lessons in one school, 3 in another and 1 in another. I also work at my hogwon.

I'm am wondering why the Hogwon would need my flatmate to open an account. They are a bit vague about it to us but i am going to ask more questions tomorrow.

Does anyone have any suggestiong what they are doing or what I should do?

[posco's trumpet]

I don't understand why the parents might need the bank account information (unless they want to slip her something directly on the side). The elementary school may need the information, but if they do, your co-worker may want to make sure everything's on the up-and-up with your local immigration bureau (regarding working at more than one location).

[Crois]

Yeah i think what the school does it that we just use the classrooms at the schools rather than the kids come to the hogwon. SO it seems.

[Seon-bee]

They're saving money on taxes. By having tuition fees directly deposited into your co-workers account the school won't have to report as much revenue. Everyone does it. It's just that owners generally ask close friends--not employees to do this kind of dirty work.

Do it and then change your PIN!

[prosodic]

I think Seon-bee is probably right, but the way the hagwon owner is doing it is strange. Your flatmate wouldn't have to open a new account and the hagwon owner doesn't need all the details. Anybody can add money to any account as long as they know the name of the bank and the account number.

I would ask the hagwon owner how this arrangement will affect your flatmate's reported earned income. The issue here isn't just taxation. This arrangement will probably shelter income from taxation for your flatmate as well as the hagwon owner. But what about the pension plan? If it's unreported, then the hagwon won't be contributing an extra 4.5% of that income to the pension plan. And how might it affect severance? Severance is based on the average of the last three months salary, but it would be hard to get the Ministry of Labor's help if the hagwon owner chose not to include the unreported income in that calculation. And what if currency exchange laws change? There used to be a law that a foreigner's right to exchange won for dollars was limited to the amount of legally earned income. Such a law could be reinstated.

[different]

Here's a link to a similar topic.

http://www.eslcafe.com/forums/korea/viewtopic.php?t=22669

I didn't end up taking the job.

Is your employer KES? That is the company/recruiter that offered me the job.

By the way, your E-2 visa is tied to one location. Unless your hogwan got permission from Immigration for you to work at all of those locations, it is illegal for you to work anywhere other than the location that is written in your contract (I think).

[hellofaniceguy]

To the Op, your friend is none to bright is she?! And she teaches?!
No reason in the world is vaild for opening an account and giving the info to the school owner:
quote: "Well she goes and they open an account in my flatmates name and the boss keeps the details. Apparently it's so the elementary school can pay the fees or the parents to pay the hogwon for our lessons."
Sounds like someone is trying to cheat someone out of something and your friend will lose.

[Crois]

Well you see whe already has her own bank account. But they wanted to and have now opened an account in her name. She signed the forms and all.

I'm going to try and ask more questions about it today.

[lush72]

Yes- this account will be hers in name only. The cruel hogwon master needs a shill to open an account so it does not look like he is earning income. This happened to a good friend of mine who allowed the cruel hogwon master to use him this way, then pulled a runner after he went to the bank and closed his account!

The take? 9 million won.

[PatrickSiheung]

I agree with Lush. The hagwon owner is using your friend. Of course he can't use his own name in case he gets caught. He is evading taxes by doing this. He doesn't want his name attached to that income at all.

If there should be any trouble, the money is in her name, not his.

Your friend should be fine though. I seriously doubt any tax agency is going to suspect a foreigner of evading taxes. They likely assume we don't know any better.

Personally I wouldn't like to be used in this way though. If my boss was a dick to me, I would likely report him after he had some money in there. Doesn't sound like he's going to stop if you ask him nicely.

[Crois]

I have a female boss

[Gollum]

Does anyone else besides me feel that this person is putting themselves at an extraordinary risk? And for what?

#1: Unless it's OK'd by immigration (and it doesn't sound like it is), you are working ILLEGALLY. If it is legal, it will be marked in writing on the back of your E-2 visa card. If you have any direct questions on what is and is not legal, I have EXACT knowledge direct from the windows of immigrations.

#2: The boss is obviously attempting to avoid taxes. Also, if someone rats and anyone gets busted, YOU will be at fault because the money all goes in YOUR name. The boss could deny all responsibility, or blame it all on you if the situation gets hot.

I'd confront the boss and say you won't allow the two above things any more. Close out the account, and say you will only work for one hagwon in one location, because otherwise it's ILLEGAL to do so.

If they don't go for that, or throw threats at you then immediately:

#3: Open a different bank account at another bank. Put YOUR money in that. Then go directly to immigrations and inform them of what's going on with the 2 schools thing. Tell them you don't understand why your director is doing it, and you heard it might be illegal, and you don't want to do anything illegal. Bring a Korean friend -- they probably don't know much English (depends on who you get). Go ahead and mention the bank account thing too.

#4: Contact the labor board about the situation -- in its entirety. From 2 work locations to the bank account thing.

Expect to lose your job, so be looking in the meantime.

They trade-off.... you won't get kicked out of Korea or be screwed over by this boss.

[Crois]

Yeah but i only have two months left on my contract. But is it legal for the hogwon to hire out the classrooms from the school and get us to teach their?

[Gollum]

[PEIGUY]