Korean Job Discussion Forums

bbonthec · Joined: 07 Nov 2007

Just got this from my new employer. Has anybody seen this before? Is this right?

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The National Tax Service has announced a new law regarding bank accounts. Everyone has to visit their bank and change their bank account status.

The new bank account status is called a �Business Account� 사업용게좌.

* What is "Business Account 사업용게좌" law
- (This space left blank in the email I received....)

* Effective Group for "Business Account 사업용게좌"
- People who's in Education Industry

* How to open "Business Account 사업용게좌"
1) Visit your bank and they'll change your account as "Business Account 사업용게좌".
It'll appear on your bankbook 사업용게좌
2) You can change status for your current account
or open a new account as "Business Account 사업용게좌"

* What you need to bring to bank
- ARC and passport

* Deadline
- December 31st, 2007

* Penalty
1) If didn't change status : 0.5% from Salary
2) If didn't use account : 0.5% from Salary

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Now, I am aware of the new restrictions new foreigner account holders are facing. However, I have been in Korea for a few years now, and have had my bank accounts for a few years as well. No offense to the nubes or anything, but it would be entirely unfair if I and others in my situation had to face the same restrictions.

Has anybody else received similar orders? Is this an NTS law, or something my new school is doing? Does anybody know how this will affect us? This all has me very worried, especially the salary penalties for non-compliance.

Typhoon · Joined: 29 May 2007 Location: Daejeon

It sounds strange to me. The NTS is punishing people by deducting from their salary and not standard fines. This seems to be overstepping their bounds a little bit doesn't it??

Unposter · Joined: 04 Jun 2006

I have no idea what your boss is talking about so take this for whatever it is worth but it sounds like he is trying to declare you an "independent contractor" so he can save money on taxes.

I would beware this situation.

bbonthec · Joined: 07 Nov 2007

regicide · Joined: 01 Sep 2006 Location: United States

bbonthec · Joined: 07 Nov 2007

quilter · Joined: 11 Feb 2006

I phoned NTS today (397-1440) and they said they had never heard of this.

bbonthec · Joined: 07 Nov 2007

marmotkorea · Joined: 12 Nov 2007

That looks like a scam to me.

bbonthec · Joined: 07 Nov 2007

I just called the NTS. He confirmed there was no law change. This is weird....

rhinocharge64 · Joined: 20 Sep 2006

No, it's another example of a corrupt hogwon boss!!

bbonthec · Joined: 07 Nov 2007

Well, the folks at the NTS office said that it probably has something to do with the employer changing their account type, and the teachers have to change our account types to match. At least, that's what I understood when he was trying to explain to me....

Typhoon · Joined: 29 May 2007 Location: Daejeon

So that means it is the independent contractor scam. Congrats...you too can work at a school that is trying to screw you over with higher taxes for you and no pension, all so the school can save money!!!

bbonthec · Joined: 07 Nov 2007

mindmetoo · Joined: 02 Feb 2004

He's going to deduct half a percentage from your salary? $10 a month? Holy nickel and dime. Maybe he's an idiot and doesn't understand math and means 5%. All 'n' all I go with the others who say he's probably trying to make it appear like you're not an employee but a self employed individual. And I'm darn sure E2 visa are not granted to self employed.