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  • Choman10
  • Waygookin

    • 13

    • November 04, 2010, 12:44:51 pm
    • South Korea
Company wants to pay directly to US bank account
« on: September 08, 2016, 05:13:18 pm »
I work for a non-educational Korean company but on paper it's based in the US.  They sell products on Amazon and are part of a larger company here in Korea, and they want to send my salary from their US bank to my US bank, even though I work in Seoul.  Reason is that on paper the company is USA, but at the same time they don't have any US employees receiving a US salary (I'm the only US citizen). 

They said that they would give me a little bit more after talking with their accountant and figuring out the exchange rates and stuff.  I'm a little uneasy about this for both financial and legal reasons, and I'm pretty sure I'll say no, but also I would like to know about any upside to this for people are who money savy (which I am not).


  • Pecan
  • The Legend

    • 3769

    • December 27, 2010, 09:14:44 am
    • Seoul
Re: Company wants to pay directly to US bank account
« Reply #1 on: September 08, 2016, 05:55:38 pm »
This isn't good news for the most part.

By paying you in the US, they can avoid having to contribute to your pension and your severance fund, as well as not having to provide medical insurance, nor pay their half of your income tax.

You will now be saddled with having to pay US income tax and won't be able to claim the income tax exemption.

They ONLY way this situation could possibly benefit you would be if your salary were fixed in KRW to be calculated each month and the Korean currency made massive gains on the US dollar throughout your contract year.

For example, take 5,000,000 per month fixed income, if the KRW gained throughout the year, your USD deposit would be more US dollars each month.

1st month: 5,000,000 = $4,000
2nd month: 5,000,000 = $5,000
3rd month: 5,000,000 = $6,000
Etc.


  • JNM
  • The Legend

    • 3938

    • January 19, 2015, 10:16:48 am
    • Seoul, South Korea
Re: Company wants to pay directly to US bank account
« Reply #2 on: September 08, 2016, 09:05:38 pm »
I agree with what Pecan said, but if you could predict exchange rates with any reliability you wouldn't have to work.

:)


  • Pecan
  • The Legend

    • 3769

    • December 27, 2010, 09:14:44 am
    • Seoul
Re: Company wants to pay directly to US bank account
« Reply #3 on: September 08, 2016, 09:31:40 pm »
Don't misunderstand.

I wasn't making any predictions.

I was simply trying to emphasize the point that what the OP is getting wrangled into is a bad deal.