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  • lshaugh
  • Adventurer

    • 37

    • December 18, 2013, 12:56:51 am
    • Canada
Pension Refund
« on: January 16, 2015, 07:35:14 am »
hey all,

So I am completing an EPIK contract in a few weeks, and will be starting a new hagwon job that doesn't pay into the pension system.

So am I entitled to collect the pension refund from my current job, or must I wait until I leave Korea for good? (even though I will be no longer paying into pension at my new job)

Cheers.


  • Porksta
  • Veteran

    • 117

    • October 08, 2011, 09:31:27 pm
Re: Pension Refund
« Reply #1 on: January 16, 2015, 08:01:34 am »
You cannot get your pension unless you show a ticket out of the country.  Although I wouldn't even go to the pension office because then they will sign you up for pension and health care because it is required.


  • Mezoti97
  • The Legend

    • 2675

    • April 14, 2011, 03:02:50 pm
    • South Korea
Re: Pension Refund
« Reply #2 on: January 16, 2015, 08:03:31 am »
It's my understanding that you need to have a one-way plane ticket out of Korea (doesn't matter where/what country, as long as it's a one-way plane ticket leaving out of Korea) in order to receive your pension, so you'll have to wait until you actually leave Korea for good, in order to claim it (theoretically, it can be a one-way plane ticket to some random country, and then later, if you want to come back to Korea, you can return to Korea on a separate one-way flight itinerary -- I've known people who have done that before and collected their pension that way).


  • lshaugh
  • Adventurer

    • 37

    • December 18, 2013, 12:56:51 am
    • Canada
Re: Pension Refund
« Reply #3 on: January 16, 2015, 08:08:39 am »
Alright, seems pretty clear. I suppose it will collect interest as well? Is it uncommon to hear of hagwons not participating in the national pension system? As Porksta said, I thought it was a mandated system.


  • robvandan
  • Veteran

    • 173

    • June 17, 2011, 05:54:23 am
    • Seoul, Korea.
Re: Pension Refund
« Reply #4 on: January 16, 2015, 08:15:59 am »
If the hagwon is not participating in the pension system, more than likely they are not participating in providing you the proper healthcare, and will probably also tax you at the independent contractor rate 3.3%, despite this all being illegal. So I would make sure you get what you are legally entitled to before starting to work for said hagwon, as they may also try and stiff you out of pay, severance and so on.
"Difference is, I walked out a winner. That's my key to success."


  • lshaugh
  • Adventurer

    • 37

    • December 18, 2013, 12:56:51 am
    • Canada
Re: Pension Refund
« Reply #5 on: January 16, 2015, 08:22:12 am »
Well I was recommended by a friend, who assures me it's a rather reputable hagwon, and I have read the contract, and health care is covered.

Just to be absolutely clear on this, I am not jeopardizing losing the pension refund I am entitled to by collecting it a year from now, am I? I was told by a friend that that is possible (although I am not sure how said friend came to this conclusion).


  • Porksta
  • Veteran

    • 117

    • October 08, 2011, 09:31:27 pm
Re: Pension Refund
« Reply #6 on: January 16, 2015, 08:23:42 am »
Make sure the health care is NHIC and not a private one.


  • Mezoti97
  • The Legend

    • 2675

    • April 14, 2011, 03:02:50 pm
    • South Korea
Re: Pension Refund
« Reply #7 on: January 16, 2015, 08:28:09 am »
Just to be absolutely clear on this, I am not jeopardizing losing the pension refund I am entitled to by collecting it a year from now, am I? I was told by a friend that that is possible (although I am not sure how said friend came to this conclusion).

If you'd really like to make sure, you can call the pension office (they have someone there who speaks English who can help answer your questions about collecting your pension). If you search on this site, you can find the pension phone number (sorry, don't have it on hand right now).


  • lshaugh
  • Adventurer

    • 37

    • December 18, 2013, 12:56:51 am
    • Canada
Re: Pension Refund
« Reply #8 on: January 16, 2015, 08:46:20 am »
If I am no paying into the NPS, how much less tax would I theoretically pay?


  • Korea13
  • Super Waygook

    • 494

    • May 29, 2013, 08:36:18 am
    • korea
Re: Pension Refund
« Reply #9 on: January 16, 2015, 08:52:56 am »
Look like your Hagwon is putting you down on as a Independent Contractor and not an employee.

If you are an E-2 Visa holder, you are an employee and have to pay (by law) Pension and health care.

The exception is if your hagwon is really small 2-5 people or you are from a country that allow you to opts out of the pension scheme.

Why would you not want to pay into pension as it double the money you will get back (if you are from a country that allows you to claim it)


  • lshaugh
  • Adventurer

    • 37

    • December 18, 2013, 12:56:51 am
    • Canada
Re: Pension Refund
« Reply #10 on: January 16, 2015, 08:56:19 am »
What do you man by "doubles the money I will get back"? I'm sorry, I am completely new to attempting to understand this pension refund business.


  • Redondo
  • Expert Waygook

    • 642

    • October 14, 2012, 05:28:11 am
    • toronto
Re: Pension Refund
« Reply #11 on: January 16, 2015, 09:07:13 am »
You dont even have to have a one way ticket. Just dont show them the return ticket.


  • Porksta
  • Veteran

    • 117

    • October 08, 2011, 09:31:27 pm
Re: Pension Refund
« Reply #12 on: January 16, 2015, 09:28:04 am »
What do you man by "doubles the money I will get back"? I'm sorry, I am completely new to attempting to understand this pension refund business.

Whatever is taken out of your salary is matched by your employer.  So if $100 is taken out of your paycheck every month for pension, then your boss is putting in $100 as well.


Re: Pension Refund
« Reply #13 on: January 16, 2015, 02:54:16 pm »
OP what is your visa?  As others have stated if you are an E2 then you almost always HAVE to be claimed as an employee and not a private contractor, if you are claimed as a private contractor it is illegal and both you and your school can get in trouble for it if it's found out.  You really want to pay into the pension too, your contributions are matched by your employer, I pay 110,000 a month into my pension fund which is matched by my employer so that every month 220,000 is put into my pension fund.  When I leave Korea I get to withdraw all of that money, so for 1 year it's 2,640,000 that I get back when I leave.