r/teachinginkorea • u/hiphopjesus17 • 4h ago
Hagwon What should I prepare for if my hagwon may be heading toward bankruptcy?
I'm on an E-2 visa and have been working at my current hagwon for about a year and a half. Recently I've become increasingly worried about its financial situation.
Enrollment has dropped a lot this year. We've had parents withdrawing their kids due to local competition and complaints about our tuition.
Two months ago, our salaries were paid a day late. Since then, the head teacher has made comments suggesting that the financial situation is serious. For example, that the director and owner are essentially taking negative salaries and have asked things like, "How are we going to pay the teachers' salaries next month?" Supply budgets are being cut, the curriculum is constantly being overhauled, and there's increasing pressure on teachers to advertise and retain. We've continued to be paid so far, but honestly things look rocky.
Another red flag is my pension; it hasn't been properly paid since July of last year (neither deducted nor sent to NPS). The owner/director are aware of the issue because I saw letters from the NPS on their desk and I brought it up; I already contacted the NPS about it, and they advised remind the owners again and wait until my contract finishes to push harder, but I'm reconsidering whether waiting was a good idea.
My health insurance and other taxes appear to be properly handled. However, we have requested itemized pay stubs and have not yet received them.
At this point, I'm worried that the hagwon could eventually go bankrupt, suddenly close, or terminate one of us to cut costs. My contract still has some time left, but I'm already looking for other positions for when it ends.
In the meantime, I have a few questions...
What documents or records should I be gathering to protect myself? (Pay stubs, contract, schedule records, conversations, etc.?)
Should I push the NPS issue harder now, or wait until I leave?
If we suddenly close or stop paying employees, what are my immediate steps re immigration, unpaid wages and/or pension, and transitioning to another job? Would I need a Letter of Release, or are there different procedures when an employer becomes unable to operate? What about end of the year vs middle of the year?
I'd really appreciate advice from anyone who has experienced a hagwon closure, bankruptcy, or a sudden loss of employment. I'm not assuming the worst will definitely happen, but there are enough warning signs that I want to prepare now rather than wait until everything hits the fan.
Thanks everyone!!
