Korean Job Discussion Forums

[Allthechildrenareinsane]

From the Busan Ilbo, via Gusts of Popular Feeling:

"Corrupt hagwons, foreign instructor's income tax, pension embezzled"

■Where did the tax paid every month go?

After receiving an E-2 (conversation instruction) visa, New Zealander A (33, female) entered into a 1 year employment contract with a language hagwon in Gimhae and taught English. A was aware that, on the pretext of paying her income tax for her, every month the hagwon deducted 50,000 from her monthly salary.

However, when she prepared to return home at the end of her contract, she received notice from the tax office that not a penny of income tax had been paid during the last year. The hagwon owner had intentionally not submitted A's income tax return to the tax office and kept the money she had paid. Her return home blocked, A's friend quickly lent her money to pay the 600,000 won in unpaid taxes so she could board a plane to New Zealand.

Contractually specified severance pay, airfare denied
ATEK, "Guarantee of rights" legislative petition movement

■ Stolen pension and severance pay

B (34), and American, had his pension and severance pay stolen. B worked as an English instructor at another hagwon in Busan, but after a year when he inquired at the National Pension Service, he learned the truth that the hagwon had not paid a penny of his monthly pension payment for 12 months. The hagwon had deliberately not submitted anything to the service. In addition, the hagwon did not provide B with the severance pay or airfare stipulated in the contract.

Recently the Association of Teachers of English in Korea (ATEK) has drawn attention with its campaign to petition for legislation which will have the information of foreigners who have entered the country on E-2 visas automatically registered with the National Tax Service, the National Pension Service, and the National Health Insurance Corporation. This strategy is due to the common practice of hagwons not giving foreign instructors what is rightfully owed to them.

In fact, according to the Busan Foundation for International Activities, during the first half of this year they have received over 20 complaints from foreigners in the Busan area victimized by corrupt hagwons.

By type, cases in which hagwons do not pay the pension contributions and health insurance premiums that they should split with the instructor and which result in the instructor not receiving medical benefits or returning home empty-handed often occur.

As well, there are many examples of hagwons deliberately not reporting income or not paying the severance pay or airfare stipulated in the contract. Hagwons abuse the fact that though foreign instructors can lodge complaints against them, because they are returning home and are pressed for time, they have no choice but to finally relinquish their rights, ATEK revealed.

ATEK's position is that for the sake of foreign instructor's rights there is a need for the immigration office to establish a legal system in which the personal and employment information of foreigners with E-2 visas is transmitted to the National Tax Service, the National Pension Service, and the National Health Insurance Corporation in order to automatically register those paying pension contributions and health insurance premiums.

ATEK spokesperson Gregory Dolezal stressed that, "Due to the tax evasion, the harm done by hagwons not reporting foreign teachers' income ultimately affects Koreans." "To also improve Korea's national image, legislation to hold corrupt hagwons in check is absolutely necessary."

(Source: http://populargusts.blogspot.com/2011/07/busan-ilbo-corrupt-hagwons-taking.html )

[ThingsComeAround]

Where are the apologists when stories like this break?

[Ramen]

[Allthechildrenareinsane]

[sojusucks]

[murmanjake]

[ChrisLamp]

I work for a Hagwan. I have been here 9 months and I have never paid into a pension. No pension plan was ever mentioned to me in my recruitment period, contract or since. I've had health insurance (50/50) and tax (3.3% I think) deducted. I had, up until now, been under the impression that pensions were only GPIC/EPIC employees.

I have however been promised severance pay and I expect that my boss will pay (he has been above board about all financial matters so far) So am I owed money on top of my severance? How much? Can I expect this money when I leave? What should I do?

[marsavalanche]

[ontheway]

[Ramen]

[TheUrbanMyth]

[ChrisLamp]

I am an employee and I have health insurance through National Health Insurance.

Is there a chance if I go though with this pension thing that he could turn nasty and fire me? Could he refuse to pay and I could be left with less? If I have in fact been paying too much tax how can I rectify that situation? This sounds like two giant fights that I'd rather not have (because they could make the next three months a living hell) Are you guys saying that I'm probably owed about w400 000 on taxes and 1 000 000 on pension? thats alot of money but it's less than my severance which I dont want to lose. Is this a big gamble or a sure thing?

[ThingsComeAround]

[Allthechildrenareinsane]

[meangradin]