Korean Job Discussion Forums

heeheehee · Joined: 13 Oct 2006 Location: Canada

In the midst of some rumors that the South Korean Won may fall because of the North's actions, is it possible when discussing a contract to insert a clause that will cover your income in the event of a falling Won?

I'm thinking something that would maintain some kind of pairity with a more stable currency so that when time comes to convert all those saved Wons into Western currency a lesser-valued Won does not end up hurting the exchange.

Or is this really not all that important, since we're talking only very small changes?

Thanks!

kat2 · Joined: 25 Oct 2005 Location: Busan, South Korea

I doubt any hogwan owner would do this. I guess if you really want to try it, you could though.

Howver, I really don't think the won is going to all of a sudden take a big drop. Only if something really serious happens with NK and a falling won would be the least of my worries at that point.

ajgeddes · Joined: 28 Apr 2004 Location: Yongsan

I just don't understand why any hagwon owner would care about that. The value of the money doesn't really change within Korea. What if the Korean won gets really strong? Would you put something in your contract about getting a pay cut?

ChuckECheese · Joined: 20 Jul 2006

I don't see any hurt in asking and trying. Besides, hagwons do some stupid **** with our contracts anyway.

If they are really deseparate and you are about to re-sign with them, then you could ask. Who knows, you may actually get it.

Mod Edit: Edited for language.

mindmetoo · Joined: 02 Feb 2004

Hrm. Trading hagwon contracts in a futures based market?

taejonguy · Joined: 14 Jan 2003 Location: Daejeon, Korea

when I sign a new contract during the "IMF Crisis" I asked to be paid in US dollars. They didn't have any problem with this.

You never know unless you ask...

thegadfly · Joined: 01 Feb 2003

I think it would be easier to negotiate a contract in the currency of your preference than to add in a clause to protect you in the case of falling exchange rates, but that sword cuts both ways. I have a contract that pays me in US dollars (on payday, my salary is USD is multiplied by the exchange rate)...trouble is, I agreed (happily) to these terms back when the exchange was around 1200 won to the dollar...which means, the strong won HURT my earnings...significantly...I renegotiated when my contract expired.... It IS possible to get contracts specifying amounts in other currencies...just realize that things may shift, and you may wish you never bothered to change things in the first place.

Kimchieluver · Joined: 02 Mar 2005

The won will bounce back.

huffdaddy · Joined: 25 Nov 2005

Homer · Guest

SuperFly · Joined: 09 Jul 2003 Location: In the doghouse

Let's say there is a little skirmish, things quiet down after a bit...let's also say the won takes a dive during this time.

1. How long before it bounces back?

2. How long can most people afford to wait?

Your opinion matters, thanks in advance.

ChopChaeJoe · Joined: 05 Mar 2006 Location: Seoul

If the won takes a plunge, it's likely because we're being invaded. Your salary is the least of your worries.

just get some side lessons lined up, you tool.

Korea does have inflation though, despite a couple of earlier posts. I've seen it already.

Homer · Guest

wylies99 · Joined: 13 May 2006 Location: I'm one cool cat!

Ya-ta Boy · Joined: 16 Jan 2003 Location: Established in 1994

Following the financial crash in '97 some people arranged through contract negotiations to be paid in a currency other than Won. Of the few people who did this that I ran into, none said they had a problem arranging it.

I feel that it took about 8 years for the Won to recover its former position. The economy recovered much much faster, but the government wanted to maintain a weak Won for stimulation of exports. It really irked me.