Korean Job Discussion Forums

stretchio · Joined: 14 Mar 2007

hi,
sorry, I'm sure this ques has been asked a few times before, but i cant find a direct answer. I just recieved my first pay cheque, and I have lost a chunk in both tax and pension. As I'm a Uk citizen, I dont even get my pension back. Is it compulsory that I pay both these fees? I feel like I'm getting shortchanged abit!
Thanks

OculisOrbis · Joined: 17 Jul 2006

Yes, you have to pay them unless your country has an agreement with korea makes you eligible for the two year tax exemption. As far as I know, Canadians are the only ones that are not eligible for the 2-year tax free status. However, even in that case you still need to pay into pension. You dont lose your pension being a UK citizen, you can get it transferred to your UK pension fund when you leave - you just cant get the lump sum refund like some other countries.

schwa · Joined: 18 Jan 2003 Location: Yap

I'm presently looking into whether UK passport holders can in fact get their Korean pension contributions rolled over into their British pension scheme. Evidence suggests not. Got proof otherwise? If so, what do they need to do?

OculisOrbis · Joined: 17 Jul 2006

well, that is quite a surprising amount of indisputable evidence you presented. You got me convinced, too bad for you not getting your pension credited back home......

For other Brits, call the pension office line and get the details. Dial 1355 and then 7 for english.

"Pension status for citizens of the U.K.
Unlike the US and Canada, Korea and the UK have only agreed to a 'contribution only' convention, at this time. What this means to UK citizens working in Korea, is that your Korean pension contributions can be added to your accruing pension credits in the UK, of which you can begin to receive when you retire in that country."

http://wiki.galbijim.com/Korean_pension_plan#Pension_status_for_citizens_of_the_U.K.

schwa · Joined: 18 Jan 2003 Location: Yap

I was aware of Galbijim's take on this but question whether its correct. Heres the National Pension Service link with all the details of the agreement & I see no mention of transferring pension contributions. http://www.npc.or.kr/jsppage/english/main.jsp

Anyone with firsthand experience?

Alaskaman · Joined: 22 Sep 2009 Location: Bundang-Gu, South Korea

Americans can get the 2 year tax break as well. As long as you work at a public school or university. Hagwons don't count as an "accredited institution". There is a document that you can fill out and the taxes will not be taken from your pay.

OculisOrbis · Joined: 17 Jul 2006

It would probably better to contact someone from the UK pension office and ask what they require to have the credit applied from korea. It's more likely that you will get a clear and accurate answer from them regarding the process and necessary paperwork to initiate the transfer.