Korean Job Discussion Forums

[aka Dave]

I work at a small, private Univ., and today had my weekly lunch with the head of my dept. and a couple other faculty. They generally stick up for me, negotiating stuff with the bureaucrats who run the school.

I mention that the won had tanked, and mentioned how much of my savings it had eaten. The first thing my boss said was on the next contract I'd get a raise (which would start in February, though that's vacation time). That was nice, but I was kind of expecting that.

However, they also mentioned the possibility of being paid in dollars. They're really cool, and took a strategic approach - "First we get the raise for him from the administration, then we can see about the dollar thing. We don't want to push too fast."

Anyway, I had never mentioned it, and it seems to me highly unlikely. Is it even thinkable to get paid in dollars? I think they were perhaps just trying to assure me, I have no idea. But it struck me as a longshot.

[jadarite]

My dad loaned me money last year, and I wanted to pay him back in February (didn't actually do it until last week, lol). So, I asked to have my pay sent to my bank account in the states. They had no problem with it.

However, think about the pros and cons of doing this now. Is it really better to send home money now?

Is the school willing to pay a decent exchange (1,000 won to at least a dollar)? Or will they only pay 75 cents (current exchange rate)?

[bassexpander]

Why do I get the feeling that anyone getting paid in dollars by a hagwon would soon find their director cheating around it and trying to pay in won instead?

[Kimchieluver]

I don't even know if it is legal for a Korean institution such as a company, university, public school or hogwan to pay in any other currency but the won. Maybe if they had a parent foreign company, but if it 100 % Korean, I don't know if it is legal.

[broken76]

Interesting topic but it's pretty much currency speculation. If you're in a situation where you need to spend most of your money home on a monthly basis getting in dollars would be better. But if you're keeping most of your money here in Korea won would be better.
Remember currency always fluctuates, right now the Korean won is artificially being screwed by speculation, it'll take some time but it will even out again. Both the US and Korean government want to keep things as close to 1000 won per dollar since it works both the import and export market the best.
I seriously doubt the school would be willing to use a past exchange rate when calculating your salary since it would be pretty arbitrary. They can either use the rate at the time of signing or use the rate on paydays. Either way the bank doing the exchange actually gets an added bonus since they get to change the school's won to dollars and back to won for you taking their fee both times.
As someone who has run a business I would be against it as well since doing your payroll would be a nightmare every month since the rate would always be in flux.

[sojourner1]

You can bet that if any non-American company pays in dollars it's based on exchange rate according to how much they are willing to pay in local currency.

If you notice you never see a job outside the USA paying a contracted set dollar amount is because they lose money and go over budget if their local currency tanks out. The job market does not quite work like financial market contracts where delivery at a set rate is guaranteed to occur. In June I was worth $2600 a month; now I'm worth $1840 a month, but the contract states 2.5 m Won a month which is delivered.

Jobs only pay in local currency unless you're in an international company that deals in dollars, pounds, and Euros.

I don't believe you'll get a school in Korea or the Ministry of Education to agree to paying you a set amount of US dollars regardless of the Korean won value.

[aka Dave]

I know it seems really strange. It's important to realize I wasn't the guy to bring it up. *They* floated the idea. I never talk about salary, compensation, etc. I let them figure that out, and I've done well adopting that approach (well, at least until the great won massacre of 2008).

To be honest, I was very surprised when they mentioned it and really didn't know what to make of it.

[ontheway]

So, to use round numbers, let's say:

Before you were making 2.5 million won at a 1000won/dollar exchange rate, or $2500.

Now, things look really bad. At a 1500 won/dollar rate you're only making 1,667 dollars/month currently. So, they agree to pay you in dollars and raise you to 3.0 million won and lock that in at the then 1500won/dollar exchange rate, or $2000.

They are guessing that the rate will fall back to 1000 won/dollar level, with you locked in at $2000, that's 2.0 million won for your salary. Nice savings for them.


No matter which currency you are contracted under, you are locked-in, and you are gambling on the future exchange rate.

[Ya-ta Boy]

[EricaSmile84]

My fiance recently did a talk at a Korean University and was paid in US Dollars.

[Juregen]

The question is quite simple.

Who will take the financial risk upon themselves.


1. The teacher: He is paid in local currencies

2. The Employer: Teacher is paid in Home country currencies

Financial risk swings both ways.