Korean Job Discussion Forums

[pkang0202]

Interesting thing going on with KEB Bank.

They had some promotion where if you did an online survey you had a chance to win prizes.

Well, the prize winners were announced. 1st place was 1.5 million won. A few others won Ipad 2's.

However, if you want to collect your prize, you gotta pay 22% tax on it. So the people who won the Ipad 2 has to pay 169,000w to receive it.

The guy who won the 1.5 mil. has to pay 330,000w to collect his prize.

KEB's response:

"A gift tax is levied on the asset acquisition by gifts that are worth over 50,000 won; it includes a 20% income tax of the gift amount and a 2% residents� tax. In Korea, as in almost every other country, this tax is withheld before the gift is handed out"

See the KEB for Expats Facebook page for details:

https://www.facebook.com/KEBforExpats

[littlelisa]

Isn't this normal? I know this is the case in the US for things like game shows, etc.

[liveinkorea316]

Why would you pay the tax before you receive your prize money?

They send you the money then you would have days or months to pay the tax - it is between you and the tax department.

[highstreet]

things work differently around the world, who knew!

I really hope none of the winners are complaining.

[strange_brew]

I wouldn't even want to pay for the Ipad.

[Los Angeloser]

How did you learn about this? If it's only via Korean language then where is the reaching out to the foreign community? Is this to prepare us for the Hana bank acquisition? Are you a premium level customer? Why weren't premium level customers informed about such a prize? Maybe the banks are reaching out to the lower level/socialist crowd?

[Los Angeloser]

One of my students asked me what I get as a premium level KEB customer. I told him "nothing" since I'm a waygookin. NO LIE! If I were Korean I'm sure I could get a loan without giving the bank the amount of $ I want beforehand. What is the purpose of banks for waygookins anyway? I carry all my money with me or send it home to my bank account in my home country.

[Jane]

At one point I was a premium customer at Kookmin Bank. The only 'premium' service I got was that I as able to bank with a teller at a separate 'premium desk', which means I didn't have to wait in line for the regular tellers.

[Mr. BlackCat]

Actually, this is pretty standard in several countries most notably the US. When Oprah gave out all those cars a few years back the individuals had to pay the taxes on it (many complained). Game show winners have to pay tax and you're even supposed to claim your lottery and casino winnings. Not in Canada, though. Prizes are one thing, but if I have to pay 'income tax' on casino winnings I should be able to write off my losses. My flight to Vegas is a business expense!

[pkang0202]

Apparently, even a prize worth 50,000w is to be taxed.

I'm sure KEB doesn't ask their employees for 20% tax on those Hanwoo Beef gift sets they get for Chuseok.