Korean Job Discussion Forums

[Cat Lover]

Hi, I was told New Zealand citizens cannot claim our Korean pension and tax refund when we finish our contracts like Americans and Canadians. Because there is no such agreement signed between Korea government and New Zealand government. Is it true???
So we are actually losing money when the employers deduct the 50% contributions to pension from our salaries???
Does anybody have the certain answers for those questions??
Thanks for help!

[glimmer]

In regard to the pension, my understanding is that nothing has changed since the previous thread on this topic - New Zealand teachers must legally have pension payments deducted but cannot claim these payments back at the end of their contracts. (Unlike Australia which has negotiated a pension agreement with Korea that's due to take effect in July 2008.)

See also the NZ Embassy in Korea's web page about pension.

I have no idea about income tax refunds, and would be happy to be updated or corrected on this point.

[Cheonmunka]

You should be able to claim any refund of Korean tax if you are a NZ non resident for tax purposes.

[kiwiana]

Dear Kiwi friend,

I recommend that you file for a tax refund every year. Your boss is obliged to help you with this. I received a healthy little payment not long back.

As for the question about the pension... New Zealanders on the public pension scheme (Gookmin Yeongeum) are unable to get a lump sum refund when they finish in Korea (or when they finish their contract upon presentation of their return ticket). This law has to do with the current bi-lateral agreement between our two beloved countries. The key point being that Koreans who work in NZ are not entitled to any sort of refund of the money that they contribute to NZ's �pension scheme�. So, the argument here is that Koreans slaving away in NZ are contributing to your pension fund back in NZ; making your retirement fund more and more attractive for your eventual return to the Land of the Long White Cloud. Of course, this doesn't help us kiwi's who want to make use of all our cash NOW when we are not old and wrinkled.

There is a loophole, however; New Zealanders on a private pension scheme (Sahak Yeongeum) are entitled to a full refund of their fund upon completion. I work at a uni and am very pleased to be on this scheme. If you work at a hagwon I don't think you are entitled to join this scheme, however, it may be worth looking into.

Best