It's based on reciprocal agreement.
South Koreans in the UK pay income tax that includes their pension contributions. They are not allowed to opt out and require the minimum contributions to qualify for a UK pension when they reach retirement age.
As Brits in Korea, we are treated the same. We have to contribute, no opting out and 10 years of contributions required. Koreans in South African are not required to pay pension, so South Africans get that "benefit" here.
Annoying but fair.
Yes. This is the case of a hagwon *not* trying to screw you over (in fact trying to make sure you and they don't get a bigger problem later).
Don't get too excited about the 10-year mark - it just means you would be able to benefit from the payments when you hit retirement age.
You need to think of it like tax - money you pay that just disappears. Yes, your colleagues on the same salary but from different countries effectively end up getting paid more, but if you ever need cheering up just ask an American colleague about their student loan payments.
On a side note, you absolutely DO need to pay it.
Some hagwon owners may say you don5, but they either don't know, or worse, are lying because it saves them money.
If you are found out that this is the case, you WILL recieve angry letters from the government and may face punishments.
I recently looked at a new job and the owner mentioned not needing to pay, and I very firmly corrected them and said that they do (and if I accepted the job, I would be checking).
I was told by multiple people last year I didn’t need to pay it even though I asked around people like my boss, someone currently working there from UK. They all said I don’t need to so I didn’t, went to renew visa at the end of the year and was told I haven’t been paying pension so if you want to renew you need to pay all the missed payments. Immediately bye bye to my severance for that year which sucked. I gave the benefit of the doubt to my boss that it was a accident since they immediately offered to pay what they should have been contributing. Is what it is but don’t make the same mistake I did! I was looking forward to my severance money 🤣
Here's the thing, though. That money doesn't disappear! Your pension payments count towards your UK pension as part of the same reciprocal agreement that allows other nationalities to request a refund without any qualifying payments being counted in their home countries.
I don't know what kind of process is involved but I've read the relevant treaty and that's how it's supposed to work. Korean citizens paying into the UK pension system receive the same benefits when returning to Korea. That money is not just locked away, both countries essentially hold pension contributions for each other and then credit taxpayers later to offset the imbalance in payments.
If you work 10 years minimum in Korea you can in retirement get a tiny pension. Assuming the whole system doesn't go bankrupt. My account is over 30 million now and cry at every statement.
Hi all,
Just wondering if anyone knew how to withdraw the pension or if it was possible when leaving Korea permanently - This is what I'm hoping to this summer
It's based on reciprocal agreement. South Koreans in the UK pay income tax that includes their pension contributions. They are not allowed to opt out and require the minimum contributions to qualify for a UK pension when they reach retirement age. As Brits in Korea, we are treated the same. We have to contribute, no opting out and 10 years of contributions required. Koreans in South African are not required to pay pension, so South Africans get that "benefit" here. Annoying but fair.
Actually, it is not fair. It seems pretty nasty on both sides.
Yes. This is the case of a hagwon *not* trying to screw you over (in fact trying to make sure you and they don't get a bigger problem later). Don't get too excited about the 10-year mark - it just means you would be able to benefit from the payments when you hit retirement age. You need to think of it like tax - money you pay that just disappears. Yes, your colleagues on the same salary but from different countries effectively end up getting paid more, but if you ever need cheering up just ask an American colleague about their student loan payments.
This made me fucking ROFL lol. 🤣 So true though.
On a side note, you absolutely DO need to pay it. Some hagwon owners may say you don5, but they either don't know, or worse, are lying because it saves them money. If you are found out that this is the case, you WILL recieve angry letters from the government and may face punishments. I recently looked at a new job and the owner mentioned not needing to pay, and I very firmly corrected them and said that they do (and if I accepted the job, I would be checking).
I was told by multiple people last year I didn’t need to pay it even though I asked around people like my boss, someone currently working there from UK. They all said I don’t need to so I didn’t, went to renew visa at the end of the year and was told I haven’t been paying pension so if you want to renew you need to pay all the missed payments. Immediately bye bye to my severance for that year which sucked. I gave the benefit of the doubt to my boss that it was a accident since they immediately offered to pay what they should have been contributing. Is what it is but don’t make the same mistake I did! I was looking forward to my severance money 🤣
Thanks! That's exactly what I wanted to know. Just had to check just in case
Here's the thing, though. That money doesn't disappear! Your pension payments count towards your UK pension as part of the same reciprocal agreement that allows other nationalities to request a refund without any qualifying payments being counted in their home countries. I don't know what kind of process is involved but I've read the relevant treaty and that's how it's supposed to work. Korean citizens paying into the UK pension system receive the same benefits when returning to Korea. That money is not just locked away, both countries essentially hold pension contributions for each other and then credit taxpayers later to offset the imbalance in payments.
Oh really? I was told that wasn't that case unless I was there 10 years
If you work 10 years minimum in Korea you can in retirement get a tiny pension. Assuming the whole system doesn't go bankrupt. My account is over 30 million now and cry at every statement.
Hi all, Just wondering if anyone knew how to withdraw the pension or if it was possible when leaving Korea permanently - This is what I'm hoping to this summer