Korean Job Discussion Forums

luv2dance79 · Joined: 01 Jun 2007 Location: Suwon

I'm having an all out battle with my hagwon about their contribution to the pension plan. Apparently, they are registered as an individual private business and not a workplace. Therefore, they are not required to pay into my pension. I believe that they are getting away with this because they are using "freelance" employees rather than full-time teachers. After speaking to the pension office I found out a freelancer is someone who only works 15 hours a week...Yet, the eight teachers at the school are working full-time.

They are refusing to pay the 4.5% and are telling me the pension plan is optional. If it is optional, then why is the pension office requiring me to pay in each month? Something's up. They have told me it's not fair to the other teachers that I receive close to an extra 100,000 won a month, but have kindly (sarcasm) offered to give me 50,000 a month toward my pension...something that they DON'T have to do.

Has anyone else run into this problem where their school is listed as a private business and is exempt from paying the pension? Even the pension office is telling me that they are not required to pay because of their status. I was told by my boss that a workplace requires so much paperwork and they are not going to change their business for me. I'm about ready to break my contract.

cbclark4 · Joined: 20 Aug 2006 Location: Masan

Labor Board, Pension Office, Tax Office and Immigration should all be made aware of the situation.

See the Ianinilsan thread.

This school is riping you off, there are plenty of jobs aroud where you will not get ripped off. Consider a public school job.

Call Chris Gelkin at the Herald.
I think his username here is KHReporter.
Give him the details.

cbc

pocariboy73 · Joined: 23 Jan 2003

Young FRANKenstein

ttompatz · Joined: 05 Sep 2005 Location: Kwangju, South Korea

shifdog · Joined: 20 Jul 2006

I have been interviewing for jobs this month, and I asked two different schools if they offered medical and pension. The FT's at one school said they were not receiving medical and pension.

The director at another school said they would not pay me pension if I was to sign with them. This school was also offering medical through Samsung.

I refused both of these jobs. But its amazing how many schools are not offering what is required by law. Both of these schools had more than a few FT's working there. FT's who allow themselves to be screwed by the schools make it harder for everyone.

luv2dance79 · Joined: 01 Jun 2007 Location: Suwon

Here is what my recruiter is telling me......

First, I again mention you about the school�s business registration status.

His school is registered as an individual private academy lately so all Korean teachers� tax and salary were changed to register as a freelancer because the size of GnB school is not enough to be registered as a corporate school, before you come to Korea�

That�s why the pension office doesn�t request him to pay the pension of you and others. To be a corporate school, there should be more than 4~5 foreign teachers and their incoming suppose to be more than 30 million won per month. I�m not sure it�s true or not. I heard this from another school director who also does the individual private academy.. Anyway, that�s why it�s not necessary for GnB to pay for the pension.

I contacted to the main pension office in Jamsil area to find out the way. All people who are employed as a freelancer or a full time employer but most employees of private company or academy do not pay the pension because their incoming monthly salary is not regularly. For foreigners, of course, they send the letter of individual pension registration application but they know that only North Americans get it back and others don�t get it back. Which means, North Americans know they can get the pension back so they keep the way because it seems like legal because the pension plan is a part of government business.

What I just found out is, it�s not seriously necessary to pay the pension by yourself, if the school is not registered as a corporate school. In my opinion, whenever they get money from foreigners as the pension, the pension office keeps the money to get interest from their pension until foreigners get it back from the pension office. As you can guess, simply, they push people to pay pension to get interest from their money.. Even thought you don�t pay the pension to pension office (or Government), there is no problem with you because the pension plan is welfare of Koreans for their future life but you are not a Korean, just a temporary register in Korea. That�s why most of NZ, Australia, UK, Ireland and S.A people don�t pay pension if they work at private institute because it can be chosen by his/herself with their employer�s agreement. For sure that, they can�t get it back so they have no reason to pay it, it just is wasting money for them.. But if they work at public school, of course they have to pay for it. That�s the unfair thing for them but it�s the political business anyway..

To get the point, as the School part, yes, it�s legal for them that they are not necessary to pay the pension of employees because of the school business registration status. And for you, even though you got the letter from the pension office, it�s okay not to pay for pension if you don�t want, because they have no right to deduct the pension from your salary automatically as public schools or corporate schools.

ttompatz · Joined: 05 Sep 2005 Location: Kwangju, South Korea

luv2dance79 · Joined: 01 Jun 2007 Location: Suwon

Well, I double checked with my boss tonight to ask "Am I an individually insured person?" The response was of course, "yes." Here is what the nps website says about that.....

(2) Individually Insured Persons
Individually Insured Persons should pay all their contribution and report thing regarding by themselves. Individually Insured Persons are those subject to the general coverage criteria, and they are neither Workplace based Insured Persons nor Voluntarily Insured Persons. Those falling under the category of Individually Insured Persons are as follows;

- The self-employed
- Non-income earners aged 27 or older
- Non-income earners under 27 who have paid one or more month contribution
- Others who fall under the category of Individually Insured Persons .

HA...self-employed...I don't fu**ing think so...unless I'm calling the shots from here on out. Oh yes, s**t's about to go down....I will be leaving this hagwon hell hole...Attention to all...Don't let these bast**ds get away with this sh*t!!

Thanks to all who are responding to this matter!! I really appreciate the advice and support.

ttompatz · Joined: 05 Sep 2005 Location: Kwangju, South Korea

Young FRANKenstein · Posted: Tue Jun 12, 2007 5:43 am Post subject:

luv2dance79 · Joined: 01 Jun 2007 Location: Suwon

I've already talked to the pension office and they said they can't make him pay because his business is registered as private. I do have health insurance and am required to pay pension, but am not getting any help. I've talked to one of the Korean teachers and she told me that the teachers are not paying pension. I was told the laws have just recently changed and instead of paying pension they are only taxed 3%

Also, I found this interesting...The same Korean teacher told me that the boss opted out of pension plans because when he contributed pension towards foreign teachers and they didn't finish their contracts, he was out the money. I know this is all a bunch of bull**it and am gettting jerked around.

I'm just going to break my contract...at this point, it seems like my only option.