Howdy do-dee to all of my folks that work in Korea!
I was speaking with a friend of mine the other day, and he asked me a few questions as it relates to his pension and taxes. He was unaware that when you transfer schools, and if you remain in Korea, that the monies that were being taken from your check on a monthly basis, with the exception of taxes, go into a separate nest egg so to speak. Kind of like a 401-K, or retirement account.
The overall good thing about this is, is that the longer you stay in Korea, that nest-egg of an account accumulates, thus leaving you with at substantial amount of "ching." Now these monies can only be withdrawn from this account upon getting ready to retire your sojourn of leave from Korea, permanently. If you decide however to remain employed in Korea, the account stays active, until like I said, you decide to leave, and make application for your funds. Even if you transfer schools, the monies will still be there.
Please also note that in the event you change schools, some employers may operate on a governmental pension system, or on a private system. It just depends on your institution. Most schools in Seoul, and the outskirts of Korea, operate on the governmental pension system. However, their are a few that don't. Nonetheless, you will still be making monthly contributions into these accounts. Asking questions on how, and where your money goes-is and should always be in your best interest.
Know that each province is different, and has different stipulations as to how to go about application for your monies. The best thing to do is to seek instruction form your employer; they should be able to help navigate you to the proper "-gu" or provincial office, as it relates to your pension funds. If this does not help, always ask someone that is leaving the school; transitioning their way back to their country of origin. Also, by contacting your recruitng agency may sometimes help, as well as taking a look at the various message boards, and or the Korean immigration websites for expats-foreigners.
As far as filing for taxes in Korea is concerned, every unique citizens country has their own individual set of stipulations. Normally, the employer will do this for you; however, I have heard of some individuals that have done this process themselves. If you are one that is from Canada, you have to file taxes if you have resided in Korea for 2-3 years. This was told to me by a friend of mine who was recently audited by the Canadian IRS. Nonetheless, please feel free to double check me on this, as the immigration, and laws in Korea are frequently changing, and to be quite honest, changes daily as far as foreigners-as we are so called, are concerned. Overall, I just pray that I remain in good grace with Uncle Sam!
The way in which you apply for pension monies are as follows (this situation is only applicable to those under the public governmental pension system) and what was told to me by my previous employer: Once you purchase your airline ticket to go home, you then pay a visit to the "-gu" office, and make application for your pension monies. This ticket is supposed to be a one way ticket, back to your originating hometown. I have heard in some instances through friends who wanted to vacation in other countries for a while, prior to making their way to their home country, that their application for funds was approved, despite the fact of their itennary not being a one-way ticket. I am assuming that this just depends on the particular officer, that is reviewing your request. Like I said, the rules are constantly changing.
Some people have said, well, I want my money, and I am just going to buy a one way ticket home, and then when I get home, I will purchase me a ticket to return to Korea.....well, that is between you, and the strategy of plan that you have came up with. Although, I have heard of this incident being successful. But I for one, would not give it a try, when I'm gone, I'm just gone!
When making application for pension monies through the private pension system everything for the most part is handled in-house through your institution, or school. At times you can even take a look see of how much money is being nested, and what your return would be at the end of your stay. This can be done by simply visiting with your schools administration official in the payroll department, or whomever you had to see to take a copy of your ARC, and or banking information. Thus advising them of your non-return to renew a contract with them for the following year, and your plans for leaving the country at the end of your contractual year. Note of interest, please tell your boss first!
These monies will be transferred to the bank that you have on file with your school and or institution. Sometimes, the school may ask you if there is an account to which you would want your monies transferred, however I have heard that this 9-times out of 10, needs to be a Korean bank account. You then say, well how and the heck am I gonna get my money. The ahh-hah, is setting up an account that allows you to withdraw you money in your homeland, from a Korean bank account. The monies do not appear from what I have heard immediately, it does take some time, but know that they are and will be submitted. The longest I have heard for monies to be transferred, is 2-3 months. In some dyer circumstances, I have know people to have been able to get all of their monies on the spot. It just depends on your situation.
Many banks now have this feature, KEB Woori, Shinhan, are many banks that have branches abroad, and the capability to withdraw funds overseas. So if you don't have one of these banks look into getting one of them in the near future. They are also excellent resources for when you travel, and go to your homeland for vacation; especially if payday falls on the day that you are traveling, and the time difference in your homeland is behind....Once you land, it is a good feeling to know that the money is and can be easily accessed. Despite the fees, sigh!
Lastly, I hope that I was of some assistance to you. Please feel free to add comment to this blog entry, and provide other readers with updates, and information, as it relates to this topic. We are our own wealth base of information. ~ Annio!
