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  • opine411
  • Waygookin

    • 12

    • January 19, 2011, 11:41:37 pm
    • Seoul
Stealing Pension Perhaps?
« on: June 01, 2011, 10:27:47 am »
Has anyone experienced a hagwon owner that deducts pension monthly but doesn't pay it in to the Pension Office?

I have been eligible for pension since December 2010. My current balance is 200,000 won. I have 94,000 won deducted each month.

I brought it to my owner's attention 2 months ago and it hasn't been resolved. The pension office answers my questions but has done no intervention with my school.

PLEASE if you've experienced this I would love your advice...



Re: Stealing Pension Perhaps?
« Reply #1 on: June 01, 2011, 10:31:55 am »
Please let me know your monthly income, I will give you exact figures.  94,000 KRW a month is quite high for pension contribution.


  • Koradian
  • Fanatical Supporter!

    • 443

    • October 08, 2010, 10:29:15 am
    • South Korea
Re: Stealing Pension Perhaps?
« Reply #2 on: June 01, 2011, 10:32:20 am »
Same thing happened to me. Showed up to the pension office and ased for a statement of my account... no money!

I ended up taking that hogwon to the labour board. It was a stressful experience, but I got every cent out of the A-hole!


  • Koradian
  • Fanatical Supporter!

    • 443

    • October 08, 2010, 10:29:15 am
    • South Korea
Re: Stealing Pension Perhaps?
« Reply #3 on: June 01, 2011, 10:34:19 am »
Please let me know your monthly income, I will give you exact figures.  94,000 KRW a month is quite high for pension contribution.

Quite high? I'm currently paying 126,000 a month into pension. 4.5% of your monthly salary, looking at the booklet from the pension office as I type.


  • Koreak
  • Super Waygook

    • 405

    • November 13, 2010, 08:15:43 am
    • South Korea
Re: Stealing Pension Perhaps?
« Reply #4 on: June 01, 2011, 10:40:37 am »
I am not sure on the specifics or what if it is illegal to do it.  But I have worked in a hagwon before that just paid into my pension in a lump sum towards the end of my contract.  Like I said not sure if it is legal or not, nor do I know if interest is supposed to accumulate on it.  But that might be what the hawgon owner is going to do... or the owner in question is a cheap dirt bag.

Hope everything is resolved.


  • opine411
  • Waygookin

    • 12

    • January 19, 2011, 11:41:37 pm
    • Seoul
Re: Stealing Pension Perhaps?
« Reply #5 on: June 01, 2011, 10:43:36 am »
Thanks guys...

My salary is 2.1. They intentionally reported my salary as 1.2 and I caught them. They called the pension office and changed it but, they haven't made a contribution since. I have contacted former teachers and it happened to them too. They didn't check on their pension account while they were employed by the school AND they never felt it was important to fight for their money afterward. So, the trend has continued.

Did you start by filing a complaint with the labor board online? Were you dealing with the labor board while you were still employed by the hagwon?

Again...so thankful for the replies!


  • Yu_Bumsuk
  • The Legend

    • 2341

    • March 03, 2011, 02:10:36 pm
    • Hicksville, ROK
Re: Stealing Pension Perhaps?
« Reply #6 on: June 01, 2011, 10:46:39 am »
One common practice is for owners to pocket pension deductions and, if an employee finishes a contract and isn't too clueless not to ask for it, just give a lump sum out of their own pockets. If the employee runs, then it's 5% less they've had to pay them.


  • opine411
  • Waygookin

    • 12

    • January 19, 2011, 11:41:37 pm
    • Seoul
Re: Stealing Pension Perhaps?
« Reply #7 on: June 01, 2011, 12:16:12 pm »
Ok I guess I haven't explained how horrid the owners here are. I originally posted this because I am certain I will have almost nothing in my pension account at the end of my contract. I will work my entire year contract. I am not going to run away from this.

 As I mentioned before, I contacted other teachers who worked the full year and they were severely disappointed when they went to claim their pension. (They we also not paid severence. They didn't get their refundable 700,000won deposit, and their last paycheck was half of their salary.) One teacher checked his pension account 10 months in and he only had 400,000 won.

Also, the bills that my school deducts from my checks haven't been paid in 4 months. It's obvious the school is barely hanging on financially. I think their hope is that I'll run...but I'm not going to. This continues to happen to foreigners who work here because no one speaks up. I just want the millions of won I stand to lose.

I hope that makes the situation a little more clear...it's my fault for not explaining this upfront.

So...the advice I need is how to keep this from happening to me. I have followed this closely and have made a good contact at the pension office. He's nice and answers my questions but all he suggests is, "Talk to your employer." I only have 3 months left in my contract and I want to get more aggressive now. I was just hoping someone could point me in the right direction. If you're a veteran here maybe you know of some other resources I wouldn't know about?

You guys have been great to take time out of your day to respond. Thanks so much!


  • bjinglee
  • Expert Waygook

    • 545

    • March 10, 2011, 10:29:48 pm
    • South Korea
Re: Stealing Pension Perhaps?
« Reply #8 on: June 01, 2011, 12:20:08 pm »
Please let me know your monthly income, I will give you exact figures.  94,000 KRW a month is quite high for pension contribution.
I'm with EPIK, and they take out 90,000 a month so that seems right to me.


  • Koradian
  • Fanatical Supporter!

    • 443

    • October 08, 2010, 10:29:15 am
    • South Korea
Re: Stealing Pension Perhaps?
« Reply #9 on: June 01, 2011, 12:23:08 pm »
It sounds about right. I'm not sure were Daejon gets his info from, but has misinformed us on other financial issues as well. No offence Daejon!


  • Koreak
  • Super Waygook

    • 405

    • November 13, 2010, 08:15:43 am
    • South Korea
Re: Stealing Pension Perhaps?
« Reply #10 on: June 01, 2011, 12:27:31 pm »
If the hagwon doesn't pay your pension, at the end of your contract you can go to the pension office and pay a lump sum of your half of the matched pension, and they will immediately go after the owner for their half.


Re: Stealing Pension Perhaps?
« Reply #11 on: June 01, 2011, 12:38:13 pm »
I just hope this doesnt happen to immigrants in my country.

I went back and forth between my boss and the pension office.  He claimed he had paid, they claimed he hadnt.  The pension office rep who spoke English was pretty shocked to see me in the office so many times.  She called my school, and after that they were really scared.  I just wanted my money, so I settled with my boss for the appropriate amount in cash.  Probably saved him lots of money.  But he wanted a letter from me saying there was 'no problem' between us regarding pension.  I promised to give him that letter the day I left, but i didn't.  He was also screwing around with taxes and screwed up my tax return, it should've been much bigger than it was, but I had to leave Korea so I couldnt deal with it.

So I spent maybe 10 hours ferrying between my job and the pension office to get my 1,000 dollars.  Not bad money.  It was owed to me, anyhow.  Don't give in.  Get your money.  You earned it.

There are multiple pension offices in most cities, try going to a different one if you can't find someone that will help you.  Good luck


  • Ectofuego
  • Featured Contributor

    • 920

    • November 02, 2010, 09:21:10 am
    • Mars
Re: Stealing Pension Perhaps?
« Reply #12 on: June 01, 2011, 12:39:34 pm »
the employer is also supoosed to match your contribution.  If he is not paying the pension and you need to get a lawyer and resolve this soon.
I'm Jason and I approve this message!


Re: Stealing Pension Perhaps?
« Reply #13 on: June 01, 2011, 12:41:50 pm »
Please let me know your monthly income, I will give you exact figures.  94,000 KRW a month is quite high for pension contribution.

Hi Daejeon,

You seem pretty knowledgeable about this from your post above. Please help me out if you can. I might be getting things confused here. I am getting 90,000 deducted monthly for my pension. I am a public school teacher and have tried to turn in my certificate of residency to prevent any tax deductions from my paycheck. My school called the pension office and were told that I would still have to wait till the end of my contract to collect my full pension and am not able to prevent it being deducted monthly although I have my residency certificate from the U.S. Is the residency certificate not supposed to be used for this? If so, what is it used form? I'm so confused.

Thanks!


  • LiPo
  • Veteran

    • 78

    • April 15, 2010, 01:20:23 pm
    • Busan, South Korea
Re: Stealing Pension Perhaps?
« Reply #14 on: June 01, 2011, 12:46:51 pm »
Please let me know your monthly income, I will give you exact figures.  94,000 KRW a month is quite high for pension contribution.

Hi Daejeon,

You seem pretty knowledgeable about this from your post above. Please help me out if you can. I might be getting things confused here. I am getting 90,000 deducted monthly for my pension. I am a public school teacher and have tried to turn in my certificate of residency to prevent any tax deductions from my paycheck. My school called the pension office and were told that I would still have to wait till the end of my contract to collect my full pension and am not able to prevent it being deducted monthly although I have my residency certificate from the U.S. Is the residency certificate not supposed to be used for this? If so, what is it used form? I'm so confused.

Thanks!

Pension is taken out whether you want it to or not.  The residency certificate is to exempt you from paying takes in Korea.  Think of the pension as sort of a social security type thing.  In the US, we don't have a choice in the matter when it comes to paying into it.  However, we will be lucky enough to receive a pension refund at the end of our time in Korea.


Re: Stealing Pension Perhaps?
« Reply #15 on: June 01, 2011, 06:19:01 pm »
I have been working at a hagwon (kindergarten) since mid-March so have received two months' pay.  I noticed I got the full (gross) monthly salary stated in my contract, ie with no deductions.  Yesterday, my principal appeared with a form about pension contributions.  She doesn't speak English so the explanation I got was via another (inexperienced) teacher. 

Basically, she said I should be paying 10-15% of my monthly salary for pension.  I already knew I'd have to pay a pension (not sure about the amount though) and won't get it back, as I'm from the UK.  No problem from my perspective...but.. .

She then said the principal thought this was too much and useless for me, so she already told them I only work eight hours per week (as opposed to the 28 I actually work) in order to make me exempt from the pension payments.  They are both aware this is illegal.  It wasn't presented to me as an option but as a final outcome so I don't know if I should try to raise the issue again.  What do you think I should do about this?

She also said I will, from now on, pay income tax at 3.3%.  Again, no problem and I knew I should be paying tax, but is this amount correct?  Are there other deductions I should be paying?  Are any unpaid taxes etc likely to be taken from my pay cheque as a lump sum at some point in the future?

I have read through a number of previous threads but can't find the info I need.  I would appreciate any advice you can offer.


Re: Stealing Pension Perhaps?
« Reply #16 on: June 01, 2011, 06:38:55 pm »
9% pension contribution (4.5 * 2) is the minimum contribution until it is revised in 2013.  This is electable, so if you will not get it back, pay the minimum. You have to contribute, there is no opting out.

As for tax, I don't know how many time I need to tell people this. It is NOT 3.3 or any such %.  It is 15% of your adjusted income!!!


Re: Stealing Pension Perhaps?
« Reply #17 on: June 01, 2011, 07:04:48 pm »
Get tf out of there ASAP.  I know you sai you want to to work till the end and you think you can do al this research and armed with that things will go your way when they invitably tr and screw you out of pension, severance, deposit and flight liek you said they did other teachers.

You MIGHT o day get what's owed you throuh the labor courts but be warned it could take 6 months to years. 

Better get your next salary and then get out.  Do a MR, come back on fresh tourist visa and get a differetn job.  You are setting yourself up fr a world of dissapointment, I know I've been there and the labor office still hasn't come through. My claim was in 2003....