Korean Job Discussion Forums

[manlyboy]

So the Australian and Korean governments do not have a reciprocral agreement regarding pension funds, and consequently we all have to throw money down the proverbial toilet every month.
Can anybody tell me why such an agreement does not exist? Bureaucrats have been making lame excuses and pointing the finger at the other side of the fence for years now. I smell a rat. Someone, somewhere is deliberately ignoring the issue. Who? Why? And what can be done about it?

[Len8]

I tried calling calling Canberra and was told they were aware of the issue, and that they had recieved many calls about it. I have been here a while now, but couldn't somebody who is more in touch with what's going on back there lobby through his or her MP to push the issue.

Embassies are pretty useless, but a call might get some information about what to do.

[just because]

It just has never been ratified by both governments, maybe because the Australian government is worried about Koreans moving over there and just living off the social service network(I could imagine it happening) hence the reluctance to sign the agreement.

Whenever I get a new contract i always make sure they leave the pension part out and the employer is usually pretty happy about this.

[manlyboy]

[just because]

[manlyboy]

I'm no lawyer, but check this out:

[trevorcollins]

Yeah any money paid into the pension is essentially a pay cut.
It would probably cause me to not take that job or ask for a big fat pay rise to compensate me for the pension $.

[Cherry Ripe]

I emailed the Embassy earlier this year and, when they finally got back to me (which is a another issue) they sent me a standard cut'n'paste message stating what you have just said. Oddly, I have heard that we (Aussies) have ratified our part of the agreement whereas the Koreans haven't??
Yes, why pay into a pension you may never see. How do you claim it? Do you have to return to Korea when you're 65, try and locate the appropriate office, ...and what about the paperwork for the pension fund? Have you been keeping records? The whole deal is so vague.

[diablo3]

Do you really want a pension fund from Korean hagwons while working as a teacher? Many of those hagwon owners only think about saving money and talking it from you.

As you know in Australia, regulation prevents you from touching the money until you are 60 (or 65, maybe increasing to 70 and then 75), even if a simple term deposit earns you more money. At least in Australia, the company contributes 50% towards your pension fund.

I think if a pension fund did really exist in Korea, it would most likely be at our own expense. Contractual arrangements with Korean hagwons (and possibly other companies) will ensure this in my view.

Also, imagine having Australian pension fund rules in Korea, the rules are stupid enough in Australia where nowadays you cannot even touch your own contribution contributed after 1999 (unless you are in serious hardship for a number of months), and that is limited anyway (to about $10000/year). (woopie do)

We only get severance pay (if we are teachers), but the money is free in our hands to use straight away if we so wish. You can save it yourself, and do a better job than some of those Australian financial companies who take out a fee to feed themselves, even if they made a loss.

Consider severence pay as your fee free pension.

[fidel]

Sorry to diverge from the aussie discussion however consider this....

[sadsac]

As an Australian, you do not have to contribute to any pension fund in Korea. If you are then you are just throwing money away. We do not have a reciprocal agreement and therefore are not required to contribute.

[manlyboy]

[sadsac]

My understanding from my tax agent is that I am not required to pay into any pension fund in Korea and have not done so in my four years here. Koreans working in Australia do pay into the compulsory superannuation scheme, but the system is different than the pension fund here. I never asked him for the details. I would advise your school that payment into the pension fund is not mandatory for you.

[prairieboy]

Unfortunately, your tax advisor does not know the Korean law in this respect. Why don't you call the National Pension office and ask them directly about Australians and the requirement to pay into the Pension scheme in Korea.

You can call toll free 1355.

Only those who are exempted due to age, physical disability or presidential decree are not required to pay into the pension scheme. I read through the forms I received from the NPC and no where did it say there was an exemption based on nationality.

In short, check with the NPC or you may find yourself in a bad situation.

Cheers and good luck to you.

[sadsac]

Well, I'm not particularly worried, come February 13th, my wife and I are out of here for a while. Looking forward to the break.