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Laundering money through foreign teachers...

 
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PaperTiger



Joined: 31 May 2005
Location: Ulaanbataar

PostPosted: Mon Feb 12, 2007 5:12 am    Post subject: Laundering money through foreign teachers... Reply with quote

So I went for a job interview this evening.

On the surface the job is a public school gig through a middle-man, which provides teachers and curriculum to public schools. Their curriculum seems quite good, organized, well-planned, and quite fluent. Their materials seem pretty good.

Their contract however is full of stipulations and penalty clauses. If you're late, you get penalized. If you quit without notice, you get penalized. There are about six penalty clauses in all but the most interesting one proved to be the one that indicated that I should in NEVER EVER reveal how much the public school OR the private company were paying me. If I did, the would penalize me by taking a month's wages. They nonchalantly revealed that due to certain legal limitations, a publishing company is not allowed to have a direct financial relationship with a public school.

They indicated that "occasionally" the school might "overpay" me and that I would have to submit the "extra" funds to my employer (the middle-man/publishing company) and that I would keep the funds that I was entitled to according to my contract...all without a whisper of this to anyone.

Now...considering that I would only be paid 100,000 won over what the ordinary teacher in a legal arrangement would make, that amount seems like a trifle considering that the only people regularly punished for breaking the law are foreigners. It seems that if I knowingly or unknowingly break the law in Korea (such as overstaying my visa) I am still liable for any financial or legal penalties that may result from my actions. In fact, I wouldn't be terribly surprised if the foreigner is the only person who suffers from any consequences that might arise from such an arrangement.

My recruiter, his "friend", and two women who work at this company were all hard at work trying to convince my wife (a Korean), who they had cajoled into coming along to this interview that this job was a good choice and that she could just relay all the information to me later at a time when I would have no opportunity to ask questions. Then they indicated they would like an answer the next day, I heard them insist in Korean that it should be in the morning, but I told them I had other interviews. I'm beginning to think a simple, polite "no thank you" is in order with no additional comment or questions.

I've heard from others that this is not a new phenomena...anyone?
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poet13



Joined: 22 Jan 2006
Location: Just over there....throwing lemons.

PostPosted: Mon Feb 12, 2007 5:37 am    Post subject: Reply with quote

That's f0cked. The only person who pays the penalty is likely the foreigner.
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Missile Command Kid



Joined: 17 Jul 2006
Location: Daegu

PostPosted: Mon Feb 12, 2007 6:49 am    Post subject: Reply with quote

Forget it. Walk away. There are many opportunities here that don't have this whiff of illegality about them. It's absolutely not worth it, in my opinion, to add that kind of stress to your life.
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Return Jones



Joined: 06 Feb 2004
Location: I will see you in far-off places

PostPosted: Mon Feb 12, 2007 8:03 am    Post subject: Reply with quote

It's the double bank account deal. Against my better judgement and experience in Korea, I got into one of these arrangements. It's not as bad as you're imagining, but at the same time I can tell you firsthand that I wouldn't do it again. Looking back it turned out OK, but it wasn't worth the various bank account transfers, logistics, hassles, etc. This arangement is very common these days. Actually, I resented how the agency some months made more than one million won off of my hard work. Unfortunately the school system is often an old boys network and they insist on doing it this way. You'll find that the agency is a friend of the school principal or something like that. Everyone right up to the top levels of municipal governments knows this is going on. I doubt you'd get busted for anything, but I wouldn't bother either. They'll also try to entice you with an increased salary because there's plenty of funding for everyone to get a piece of the pie. Government waste at its best. Just find a decent job that'll pay you in the good old-fashioned direct way. Again from my experience, it's just not worth the hassle.
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Cheonmunka



Joined: 04 Jun 2004

PostPosted: Mon Feb 12, 2007 11:46 am    Post subject: Reply with quote

These agents arrange unregistered ghost 'companies.' They pay no corporate tax. They have nothing to do with any kind of registration. You will not find the company you work for in any telephone book or as a web site on the internet. They cannot give you official salary statements based on your real income, for tax purposes. If you setlle down in Korea with a family you will have to file tax returns based on the total tuition income that the program generated. Often more than five million won per month. The effects of working one year in that system has a financial affect on you two years later on. If you intend to stay in Korea a few years, or have children, stay away from these programs.
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JeJuJitsu



Joined: 11 Sep 2005
Location: McDonald's

PostPosted: Mon Feb 12, 2007 3:58 pm    Post subject: Reply with quote

Depends how much they "overpay," I might seek out a job like this only to pull a midnight runner as soon as I see the extra cash in my account (provided we're talking a good chunk of change).
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jmbran11



Joined: 19 Jan 2006
Location: U.S.

PostPosted: Mon Feb 12, 2007 7:25 pm    Post subject: Reply with quote

I assume that since your wife is Korean, your visa won't be attached to this company. Maybe you should do and then pocket the extra money (by immediately withdrawing or transferring it). If the company is illegal, how can they force you to pay it to them? Of course, you may do more damage to yourself in the long run.
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Return Jones



Joined: 06 Feb 2004
Location: I will see you in far-off places

PostPosted: Mon Feb 12, 2007 7:43 pm    Post subject: Reply with quote

Cheonmunka wrote:
These agents arrange unregistered ghost 'companies.' They pay no corporate tax. They have nothing to do with any kind of registration. You will not find the company you work for in any telephone book or as a web site on the internet. They cannot give you official salary statements based on your real income, for tax purposes. If you setlle down in Korea with a family you will have to file tax returns based on the total tuition income that the program generated. Often more than five million won per month. The effects of working one year in that system has a financial affect on you two years later on. If you intend to stay in Korea a few years, or have children, stay away from these programs.


Not always true. My agency has a website and a building. Corruption is not always corrupt in Korea. Razz
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Yu_Bum_suk



Joined: 25 Dec 2004

PostPosted: Mon Feb 12, 2007 7:50 pm    Post subject: Reply with quote

Have you tried reporting them to immigration?
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Young FRANKenstein



Joined: 02 Oct 2006
Location: Castle Frankenstein (that's FRONKensteen)

PostPosted: Tue Feb 13, 2007 1:16 am    Post subject: Re: Laundering money through foreign teachers... Reply with quote

PaperTiger wrote:
Their contract however is full of stipulations and penalty clauses.

Penalty clauses breach labor law. If they don't take those clauses out, I walk.
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Mashimaro



Joined: 31 Jan 2003
Location: location, location

PostPosted: Tue Feb 13, 2007 2:07 am    Post subject: Reply with quote

run away. you don't want to work for crooks.
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Cheonmunka



Joined: 04 Jun 2004

PostPosted: Tue Feb 13, 2007 2:46 am    Post subject: Reply with quote

Do they have business registration, Return?
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Wangja



Joined: 17 May 2004
Location: Seoul, Yongsan

PostPosted: Tue Feb 13, 2007 4:17 am    Post subject: Re: Laundering money through foreign teachers... Reply with quote

Young FRANKenstein wrote:
PaperTiger wrote:
Their contract however is full of stipulations and penalty clauses.

Penalty clauses breach labor law. If they don't take those clauses out, I walk.


If they're against the law, no need to take 'em out. The law overrides.

At most, just add a clause that says something like "If any part of this contract conflicts with the law of Korea that part shall be severable without effect on the other parts". A lawyer will give the correct weasly wording.
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Young FRANKenstein



Joined: 02 Oct 2006
Location: Castle Frankenstein (that's FRONKensteen)

PostPosted: Tue Feb 13, 2007 6:03 am    Post subject: Re: Laundering money through foreign teachers... Reply with quote

Wangja wrote:
If they're against the law, no need to take 'em out. The law overrides.

Yes, of course *I* know that, and *you* know that. However...

Quote:
At most, just add a clause that says something like "If any part of this contract conflicts with the law of Korea that part shall be severable without effect on the other parts". A lawyer will give the correct weasly wording.

...even with a clause like that, if the penalties are in the contract the Korean boss will follow them, lawful or not. Nothing you can do to stop him cause he'll just take it out of your next salary... and then you are forced to fight for it (going to labor and all that hassle it entails). Even though it states they have to follow the law, the stubborn and/or dishonest bosses will just point to the penalty clauses and say "See? It says you must be penalized".

Taking the penalties right out of the contract reduces the chance they will just penalize you because they think you did something that deserves penalizing. There is nothing in the contract for them to point at and say "See?"
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Mashimaro



Joined: 31 Jan 2003
Location: location, location

PostPosted: Tue Feb 13, 2007 4:15 pm    Post subject: Reply with quote

Geez all this talk of what to do with contracts with illegal clauses..
DON'T WORK FOR THAT SCHOOL that seems like the best option!
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