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Re: Seoul SAT/TOEFL/test-prep hagwons
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braindrops



Joined: 13 Sep 2011

PostPosted: Tue Dec 25, 2012 6:02 pm    Post subject: Re: Seoul SAT/TOEFL/test-prep hagwons Reply with quote

Hi everyone,

I haven't posted in a while...I just wanted to get some advice. I'm finishing up my tour of duty in Daejeon and I want to move back to Seoul and get a job as a test-prep teacher. I have experience and improved Korean skills. I was wondering how to optimize my job search, so if there are people out there who have knowledge of the market/current circumstances, that would be awesome! I'm a bit out of the loop...

Specifically, I would like to know the following:

1) What has the Seoul market been like in the past year?
2) Which neighborhoods should I be looking in?
3) If the peak seasons are summer and winter vacations, what do test-prep teachers do in the non-intensive seasons?
4) How much can one reasonably expect to make if working in Seoul as a test-prep teacher? Precise numbers would be appreciated, but roundabout figures are also good...and how much do typical test-prep classes cost an individual student?
5) Does the typical test-prep teacher work on a per-hour basis, on commission, or on a full-year type contract? I have heard from a hagwon owner friend in Daejeon that the top test-prep teachers in Gangnam simply get a cut of the profits--up to 75-80% of the total fee.
6) Is it advantageous to be bilingual, or is it preferred that only English be used in class? I am not sure what the expectations are...

Of course, I have other questions, but those are just some off the top of my head. I just need a change. The market in Daejeon is quite small, and while I was lucky, the work was a total grind: long, taxing hours and high-stress environment. The boss was a maniac who made you bleed for the money. I feel like I would be better served getting that kind of treatment in Seoul, where I presume the market is more open and accommodating.

I'd love to hear your thoughts. Thanks everyone~
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fustiancorduroy



Joined: 12 Jan 2007

PostPosted: Thu Dec 27, 2012 7:56 am    Post subject: Reply with quote

...

Last edited by fustiancorduroy on Sat Feb 21, 2015 7:43 am; edited 1 time in total
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edwardcatflap



Joined: 22 Mar 2009

PostPosted: Fri Dec 28, 2012 4:05 am    Post subject: Reply with quote

Quote:
For superstar teachers, more than 20 million won a month is possible.


So do you think they also pay just 3.3% income tax?
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fustiancorduroy



Joined: 12 Jan 2007

PostPosted: Fri Dec 28, 2012 5:54 am    Post subject: Reply with quote

...

Last edited by fustiancorduroy on Sat Feb 21, 2015 7:44 am; edited 1 time in total
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edwardcatflap



Joined: 22 Mar 2009

PostPosted: Fri Dec 28, 2012 7:00 am    Post subject: Reply with quote

According to you, all independent contractors pay income tax at 3.3%

[/quote]As an independent contractor, my tax rate is 3.3 percent. If you or anybody else has a link to a Korean government website saying that I have to pay more than this amount because of my salary, then please do share it. I mean, everybody I've known who works as an independent contractor at many different employers pays 3.3 percent in tax. Always. Isn't this the primary reason to work as an independent contractor? You miss out on being provided health insurance and pension, but you get taxed at a lower rate[quote]

So if they are independent contractors they must be paying a maximum of 3.3% income tax on their salary of 20 million a month, regardless of who their accountant is. No?
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ttompatz



Joined: 05 Sep 2005
Location: Kwangju, South Korea

PostPosted: Fri Dec 28, 2012 7:09 am    Post subject: Reply with quote

NO.

Taxes are on a progressive scale (from 0-15%) based on income and peak at 15% of net taxable income.

3.3% is the withholding rate for independent contractors who are paid a salary by an employer. The contractor is responsible for remittance of taxes above that level. Failure to pay your taxes is a criminal offense and subject (depending on your political connections) to lengthy prison terms.

.
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fustiancorduroy



Joined: 12 Jan 2007

PostPosted: Fri Dec 28, 2012 8:20 am    Post subject: Reply with quote

ttompatz wrote:
NO.

Taxes are on a progressive scale (from 0-15%) based on income and peak at 15% of net taxable income.

3.3% is the withholding rate for independent contractors who are paid a salary by an employer. The contractor is responsible for remittance of taxes above that level. Failure to pay your taxes is a criminal offense and subject (depending on your political connections) to lengthy prison terms.

.


I don't doubt that, ttompatz. And as I wrote to Edward, I don't know how much tax people who make 20 million won a month pay. But I know there are ways to reduce the amount of tax you have to pay, and that is by filing your taxes professionally. The same is true of my home country, America. Even if you are supposed to owe, say, 15 percent in taxes, you can end up paying less by hiring an accountant who knows the tax code well and can get you additional deductions and so forth.

Edward is just hung up on the fact that, as far as he is concerned, I am committing some sort of tax fraud or tax evasion. That is not the case. I file my taxes properly, reporting my full income. If I filed my taxes without an accountant, I would undoubtedly have to pay more taxes at the end of each year. But I don't do that, so I don't need to pay more, and in fact, often get a refund. My situation is not unique. In fact, if you want to reduce the amount of taxes you pay each year, Edward, I can send you the contact information for my accountant. It sounds like you need help filing your taxes.
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edwardcatflap



Joined: 22 Mar 2009

PostPosted: Fri Dec 28, 2012 9:47 am    Post subject: Reply with quote

Quote:
I don't doubt that, ttompatz


You obviously do doubt that as before you said all independent contractors pay a maximum of 3.3% income tax. Are you now saying that some independent contractors pay more than 3.3%?

As I mentioned previously I work for an employer so it would be illegal for me to file my taxes an an independent contractor through an accountant.
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fustiancorduroy



Joined: 12 Jan 2007

PostPosted: Fri Dec 28, 2012 5:35 pm    Post subject: Reply with quote

edwardcatflap wrote:
Quote:
I don't doubt that, ttompatz


You obviously do doubt that as before you said all independent contractors pay a maximum of 3.3% income tax. Are you now saying that some independent contractors pay more than 3.3%?

As I mentioned previously I work for an employer so it would be illegal for me to file my taxes an an independent contractor through an accountant.


I realized that 3.3 percent is simply the withholding rate and that it is possible for independent contractors to be taxed more than 3.3 percent. So what I said before was wrong, I admit. Still, independent contractor or not, workers can reduce the amount of taxes they pay by filing through an accountant. That's why tax return services are so popular here and in the US. Edward, you, too, can pay less taxes by filing with an accountant. It doesn't matter that you're not an independent contractor. A professional accountant can still help you get more deductions from your taxable income, thus reducing your tax burden and allowing you to get a tax return rather than pay the full amount of taxes someone at your income normally pays. Surely the UK must have a system similar to this?

In any case, the OP's initial post was not about taxes, so I'm going to refrain from going off topic any further.
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braindrops



Joined: 13 Sep 2011

PostPosted: Tue Jan 01, 2013 7:46 pm    Post subject: Reply with quote

So 240 hours in a month but if you are bottom of the barrel, 10 million? And superstars average 20 million a month? ...

So it is possible to earn 240 mil in a single year? As a teacher?

I just want to be clear here.

I wonder how many teachers actually make 100 mil plus just from teaching...and if thats just from one place or if they are hustling multiple gigs.

Only in korea...right?
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FMPJ



Joined: 03 Jun 2008

PostPosted: Wed Jan 02, 2013 1:51 am    Post subject: Reply with quote

braindrops wrote:
So it is possible to earn 240 mil in a single year? As a teacher?


Yep, and more. Not easy, not common, not available to just anyone, but it definitely happens.
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fustiancorduroy



Joined: 12 Jan 2007

PostPosted: Wed Jan 02, 2013 5:46 am    Post subject: Reply with quote

braindrops wrote:
So 240 hours in a month but if you are bottom of the barrel, 10 million? And superstars average 20 million a month? ...

So it is possible to earn 240 mil in a single year? As a teacher?

I just want to be clear here.

I wonder how many teachers actually make 100 mil plus just from teaching...and if thats just from one place or if they are hustling multiple gigs.

Only in korea...right?


I'm not quite sure where you get the 240 hours a month figure from. You can work that much, but only during intensives, and that would equate to about 3 to 4 months of the year. 10 million a month from a single job wouldn't be bottom of the barrel, at least not for most folks, lol. That would be higher end -- probably the top five percent of test-prep teachers -- as I mentioned in my post. And yes, as FMPJ wrote, there are teachers who make 240 million won a year, just as teachers, working at one place. Granted, their single job keeps them VERY busy, but there are certainly people earning that much or more. I would say the absolute maximum would be 400 million won a year for a teacher. As for how many teachers earn that much money, I would hazard to guess that there are no more than two or three dozen on the entire peninsula, but that's only my guess.
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FMPJ



Joined: 03 Jun 2008

PostPosted: Wed Jan 02, 2013 8:58 pm    Post subject: Reply with quote

fustiancorduroy wrote:
As for how many teachers earn that much money, I would hazard to guess that there are no more than two or three dozen on the entire peninsula, but that's only my guess.


That's probably a pretty decent estimate. Four or five (that I know of) exceed 400 million/year, though, for sure, but almost all of them have ownership stakes or operate totally independently with minimal overhead. Almost none of these people, btw, are ethnically non-Korean.
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pawtrax



Joined: 13 Oct 2014
Location: USA

PostPosted: Mon Nov 03, 2014 3:55 pm    Post subject: Reply with quote

Hey guys.

I recently completed my Master's of Arts in Teaching at the Harvard Graduate School of Education. My Bachelor's Degree (received from Columbia University) is in English Literature, and I have TESOL Certification. However, despite these credentials, I have no teaching experience- with the exception of a student-teacher program I completed during the course of my Master's degree.

So what teaching jobs will I be able to get? I'd like to have a job in or very close to Seoul. I have about 25,000 USD, and I have a car already; but it's a gas guzzler. Any expenses that need to be taken care of will be handled by my parents (e.g., shipping my car to Seoul, extra money, etc.) but once I'm in Korea, I'm on my own. I have my criminal background check as well.
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PRagic



Joined: 24 Feb 2006

PostPosted: Mon Nov 03, 2014 8:58 pm    Post subject: Reply with quote

Leave the car behind. Seriously. Odds are you won't need one if you work in a city here, and you can buy a beater for less than it'd cost to ship your junker over. And if you have 25K, you have enough; cut the apron strings now.

You could try for a position with an international school if you have a license from a US state. In most cases, those tend to be 'real' primary and secondary teaching jobs, and the experience would benefit your CV should you choose to return to the US and teach. Some people teach abroad for the duration of their careers at these schools. Some of the schools are better than others, but, hey, when isn't this the case. You can find a list of international schools in Korea on-line.

Also, as you've already completed your undergrad and grad at Ivy institutions, are you planning on pursuing a doctorate? If so, then proper experience is a big plus. I have a LOT of friends in education back in the US, many in teaching, but also several working as principals and vice or full superintendants, along with a few in educational consulting. One of my cousins is an education prof at a big college of education. All have said that nothing is worse than having to take education courses from someone who has never actually been an educator!

With the Columbia and Harvard names on your CV, you stand a decent shot at scoring a university ESL teaching job from the US. Mind you, this will be a visiting instructor position, not a tenure track or visiting assistant prof. position (despite the title they may actually stick on your lapel). For those, you need the Ph.D./EdD. Get a list of K universities and scope out their job boards during the hiring seasons. Positions start 3 March and 1 September, so hiring takes place a few months before these dates. Not all univerrsity jobs were created equal, so do your due diligence. Shoot for schools with decent pay and conditions in Seoul. You can always move to a better position once you get at least a year of experience under your belt.

Odds are you could teach test prep, but as you have no teaching experience, that might be a tough slog. And, again, the experience won't count for much professionally as you build your career.

Have you looked into teaching in the US at the university level? Many programs want MA in TESOL or a related field (e.g. AL), but you never know.

At any rate, you have options. Start peppering the market with your CV and see what happens. Recruiters as a rule suck, but if you're out of options and thinking of going with a hagwon or public school, they can prove to be an expedient resource.
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