Korean Job Discussion Forums

Flummoxed Lummox · Joined: 20 Jun 2007

I am brand new to this board. Any help would be greatly appreciated.

I've been offered a contract with the Elite English School in Daegu. The trouble is I can't find any information on them. I have no idea if they are a reputable hagwon or not. Of course, my recruiter at UBC says they are, but I'm wise enough to know recruiters say what you want to hear.

According to the recruiter, they have two schools already in Daegu and are opening a new one (which is where I will work if I take the job).

The contract they emailed me has some concerns:

1. It states the income tax is 5%. Everywhere I've read says it should be ~2.36% based on my salary. Are they trying to rip me off or is there a valid reason for stating it is 5%?

2. There is no mention of pension payments by the school or deductions from my salary mentioned in the contract. I understand it is the law that 4.5% is supposed to be paid by me and a matching amount paid by the school. Is that correct? Should this be in the contract?

3. The contract states that the cost of medical insurance will be split half by me and half by the institute. But there is no amount specified. Should I ask them ahead of time to specify the exact amount in the contract before signing?

I would really appreciate any feedback about the Elite English School in Daegu, UBC recruiting, or concerns about the contract. My main concern is knowing if the school is reputable or not. Thanks.

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

icicle · Joined: 09 Feb 2007 Location: Gyeonggi do Korea

rhinocharge64 · Joined: 20 Sep 2006

Head for the exit door o.p. Too many risks involved, and there is no need to take risks. Yes, it could be a bed of roses, but only with hindsight will you know. Keep walking, and look elsewhere.

frankhenry · Joined: 13 Mar 2007

Keep walking! Fast!

Flummoxed Lummox · Joined: 20 Jun 2007

Wow. Thanks everyone for the responses. It is appreciated.

I asked my recruiter about the taxes. She wrote back and said it depends on the size of the schools. According to her, a big franchise school is 5%. Of course, if the school is a big franchise one, why can't I find anything about them on the internet??? Not to mention that everything I've read says 5% is too much.

She also indicated the pension withholding is "optional." I personally would rather have the $$ each month (my 1/2 at least) rather than at the end of the contract. But if they are required to withhold it (as the links I've read say), then it concerns me they would not be following the law.

On a positive note, I was able to speak with one of the teachers from another branch (not the one I would be at). He did have good things to say about the school and the owner. However, he was at the school at the time, so I realize he may have been under pressure not to be completely candid.

T-dot · Joined: 16 May 2004 Location: bundang

the eye · Joined: 29 Jan 2004

Elite is opening a new branch in jisan dong, right next to two of the most highly reputed hogwans in the city.

Big gamble.
But, if you want to take a recruiters word as truth....
Laughing

icicle · Joined: 09 Feb 2007 Location: Gyeonggi do Korea

[quote="Flummoxed Lummox"]Wow. Thanks everyone for the responses. It is appreciated.

I asked my recruiter about the taxes. She wrote back and said it depends on the size of the schools. According to her, a big franchise school is 5%. Of course, if the school is a big franchise one, why can't I find anything about them on the internet??? Not to mention that everything I've read says 5% is too much.

She also indicated the pension withholding is "optional." I personally would rather have the $$ each month (my 1/2 at least) rather than at the end of the contract. But if they are required to withhold it (as the links I've read say), then it concerns me they would not be following the law.

quote]

The tax payable on income earned by teachers at the schools does defintiely not vary depending on the size of the school ... so this is at the best a misunderstanding of the law and at the worst deliberate fraud in attempting to steal money from you.

Pension withholding is also not optional ... and if you are caught ... you and your employer would both have to pay back what you should have paid .... the same applies to the Korean Medical insurance ... And I think I can remember reading somewhere that paying one raises flags on the other being due to be paid as well ...
The pension is also not just money withheld from your pay, your employer also pays an equal amount - effectively doubling your money ... so not paying it is actually taking money away from you ...

If you doubt what we are saying go and have a look at the English language versions of the appropriate Korean websites ... The recruiter is definitely not telling you the truth on both the taxes and the pension ... perhaps you should consider whether you can trust them on anything else that they have said ... I would seriously have my doubts if I was you ...

At least be careful about what you are letting yourself in for ... so at least you know what to expect ... and know that as well as the employer you would be breaking the law if you did not pay the pension and the medical.

Icicle

Flummoxed Lummox · Joined: 20 Jun 2007

Thanks for all the feedback. I turned the offer down. Just too many red flags. I've never been to South Korea, so I will proceed cautiously. I really do want to come. But I don't want to end up in hagwon hell for a year.

yingwenlaoshi · Joined: 12 Feb 2007 Location: ... location, location!

Taxes shouldn't even be mentioned in a contract. That's just silly. The fact that they even include it in the contract in most cases proves they're crooks. And yes, 5% is way too high.

Pension, health and taxes should be mentioned before you sign on, but have no place in a contract. They're givens. Things you don't have to sign for. That's why it's good to be informed and know where to check what you're entitled to.