Hagwon Contract Red Flags: A 30-Point Review Checklist for Foreign Teachers (2026)

Most hagwon contracts in Korea are straightforward. The teaching hours, salary, and benefits described in the offer letter end up in the contract without surprises. This guide is not a reason to distrust your employer. It is the contract review you wish someone had sat down to do with you before you signed.

Use this checklist to identify gaps and ambiguities before you start. Most issues are easy to fix before signing. They are much harder to fix afterward.

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Before you open the contract

Three things to confirm before you read a single clause.

1. Verify the hagwon's registration

Hagwons (학원, private institutes) must be registered with the local Metropolitan or Provincial Office of Education under the Private Institute Act (학원의 설립·운영 및 과외교습에 관한 법률, commonly called 학원법). Ask your employer for the registration certificate (학원등록증, hagwon deungrokjeung) before you sign anything.

Working at an unregistered location is an immigration violation, not just an employment dispute. Your E-2 visa is tied to a registered entity.

2. Confirm who is signing the contract

Your employment contract and your E-2 visa sponsor must be the same registered entity. Some recruiters issue contracts in their own name rather than in the hagwon's name. Confirm the legal name on the contract matches the registration certificate.

3. Search community resources, with caveats

Dave's ESL Cafe and r/teachinginkorea maintain community blacklists of problematic employers. Check them. Note that Korean defamation law (사실적시 명예훼손, sasil jeoksi myeongye hueson) applies even to truthful negative statements, so reviews can disappear under legal pressure. Absence from a blacklist is not a clean bill of health. Use these resources as a first filter only.

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The 30-point contract checklist

Work through each section before you sign. Mark any item that is missing or unclear as a question to raise with your employer.

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Section A: Identity of the contract

1. Is the contract bilingual, or is there a certified Korean translation?

MOEL publishes a bilingual standard employment contract (표준근로계약서, pyojun geulloyeok gyeyakjeo) at law.go.kr. Ask for it, or ask for a certified translation of the Korean contract. The Korean version controls legally in any dispute, so you need to understand exactly what you are signing.

2. Do the contract start and end dates match your employment start date?

They must align for E-2 visa purposes. A contract that begins with an unpaid "training" or "orientation" period before your official start date is a red flag. Time spent doing any work counts as working time under the LSA and must be compensated.

3. What are the terms of the probationary period (수습기간, suseupgigan)?

LSA Article 35 references a three-month benchmark for the probationary period. There is no hard statutory maximum, but MOEL treats extensions beyond three months with scrutiny. Annual leave and severance eligibility begin from your first day, not from the end of probation. A contract that says otherwise is incorrect.

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Section B: Pay

4. Is the gross monthly salary stated in Korean won?

Confirm whether the figure is gross or net of withholding tax (원천징수, woncheon jingsu). Gross is standard. If the contract states a net figure, you need to calculate what your total compensation actually is.

5. Is the payment date specified?

LSA Article 43 requires wages to be paid on a regular, fixed date. "Around the end of the month" or "within the first week of the following month" is not sufficient. The exact date must be stated.

6. Is overtime pay calculated and stated?

LSA Article 56 requires 150% of ordinary wages for any hours beyond 40 per week or 8 per day. Many hagwon contracts are silent on overtime. This leaves you with no documented basis for a claim if overtime hours occur.

7. Are all salary deductions itemized?

Any deduction from your salary, whether for housing, health insurance, pension, or tax withholding, must be itemized. LSA Article 43 prohibits arbitrary deductions. A contract that simply states a net figure without listing deductions is insufficient.

8. Is the housing arrangement explicitly described?

If the employer provides housing, the contract should state: whether the accommodation is single-occupancy, who pays utilities, the monetary value assigned to the housing benefit, and what happens to the housing if the contract ends early. Watch for contracts that list a high gross salary that includes housing value, then provide shared accommodation. Your cash-in-hand is lower than the headline figure suggests.

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Section C: Hours

9. Are teaching hours per week stated?

The industry norm for E-2 teaching positions is 20 to 30 teaching hours per week. This figure circulates widely in the teaching community. Note: a specific statutory cap of 30 teaching hours per week for E-2 holders was not confirmed in primary government sources. The LSA's 52-hour weekly maximum (40 regular hours plus up to 12 overtime hours) is what actually applies under Korean law.

10. Are office hours and non-teaching hours stated separately?

"Teaching hours" and total "working hours" (근무시간, geunmushigan) are different. A contract may say "30 teaching hours" but require you on-site from 13:00 to 21:00 Monday to Friday, which is 40 on-site hours before you add teaching prep, parent calls, or staff meetings. Total working time must not exceed 52 hours per week without overtime pay.

Hours math. If your contract says 30 teaching hours per week and also requires you on-site from 13:00 to 21:00 Monday to Friday, that is 40 hours of on-site time. Any teaching prep, parent consultations, or staff meetings push you into overtime territory, which must be paid at 150% of ordinary wages under LSA Article 56.

11. Is unpaid training absent from the contract?

Contracts should not include unpaid orientation or training weeks. Any time you spend doing work-related tasks counts as working time under the LSA. If the contract mentions a training period, confirm in writing that it will be fully compensated at your contracted rate.

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Section D: Leave

12. Are annual leave days and scheduling procedures stated?

After one full year of employment (at 80% or above attendance), you are entitled to 15 days of annual paid leave (연차유급휴가, yeoncha yugu hyuga) under LSA Article 60. In your first year, you accrue one day per month. Maximum accrual is 25 days. The contract should state the number of days and explain how leave requests are submitted and approved.

The annual leave scheduling trap. Many hagwons assign leave only during school break periods. LSA Article 60(5) gives the worker the right to choose the timing of annual leave; the employer can change the timing only when granting it as requested would cause significant disruption to business operations. A blanket contractual restriction limiting leave to employer-designated periods is not legally enforceable. Requiring you to find or pay your own substitute teacher is also illegal under both LSA and immigration rules.

13. Is annual leave conditioned on hiring a substitute?

Some hagwons require teachers to find and fund their own substitute. This practice is illegal under LSA provisions on leave and violates immigration rules. If this requirement appears in the contract, it must be removed before you sign.

14. Is sick leave addressed?

Korea has no statutory paid sick leave under the LSA. Unpaid sick leave with a medical certificate is the legal baseline. Some contracts allow deduction of sick days from annual leave, which is a separate entitlement. Know the policy before you sign.

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Section E: Benefits and social insurance

15. Is health insurance enrollment stated?

National Health Insurance (건강보험, geongang boheom) enrollment is mandatory for E-2 employees. The current contribution rate is 7.19% of monthly wages (as of 2026, verify at nhis.or.kr), split equally between employer and employee. Your contract should confirm enrollment and specify which portion you pay.

100% NHI on the employee is always illegal. The 7.19% NHI contribution must be split 50/50. Any contract requiring you to pay the full 7.19% violates NHIS rules. See the Four Always-Illegal Clauses section below.

16. Is national pension enrollment and country-specific treatment stated?

Korea has bilateral social security agreements with 35-plus countries. Most are full totalization agreements (the US, Canada, Australia, New Zealand, Ireland, and others) that allow contribution periods in both countries to be combined for pension eligibility, and most also allow a lump-sum refund when you leave Korea. The Korea-UK agreement is contributions-only: UK citizens avoid paying into both systems simultaneously but cannot combine periods for pension entitlement. Confirm your country's specific terms at nps.or.kr before your first paycheck.

Pension: your country matters. Korea has bilateral social security agreements with 35-plus countries. Full totalization agreements (US, Canada, Australia, New Zealand, Ireland, and others) let you combine contribution periods for pension eligibility. The Korea-UK agreement is contributions-only: it prevents double-paying but does not combine periods. Check your country's specific terms at nps.or.kr.

17. Is the severance pay clause present and correctly structured?

Severance pay (퇴직금, toejikgeum) is a statutory entitlement under the Guarantee of Workers' Retirement Benefits Act (GWRBA) Article 8, with payment timing set by LSA Article 36. LSA Article 34 directs the retirement-allowance system to the GWRBA; the substantive rules live in the GWRBA itself. After one full year of continuous employment, you are owed 30 days' average wages per year of service, paid within 14 days of separation. Your contract must include this clause. It must not condition severance on "good standing," reduce the amount below the statutory formula, or omit it entirely.

The severance trap. Some hagwon contracts include a clause stating: "Severance pay is included in your monthly salary." This is illegal. Severance is a separate statutory payment owed at termination, calculated on the basis of your last three months' average wages. It cannot be pre-paid through monthly salary unless the employer has established a certified retirement pension plan (퇴직연금, toejik yeongeeum) registered with MOEL. If your contract contains this clause, cross it out, initial the change, and get the employer to countersign, or do not sign.

18. Are flight reimbursement terms explicit?

Round-trip airfare reimbursement is industry-standard for E-2 positions but is not legally mandated. The contract should specify: which flight legs are covered (arrival only, or both arrival and return), any monetary cap, whether the employer purchases the ticket or reimburses you, and what happens to reimbursement if you leave before the contract ends.

19. Are any end-of-contract bonus terms written down?

A one-month completion bonus at the end of a contract is common in the industry but is not legally required. If it was discussed during your offer, confirm it is in the contract. Verbal promises about bonuses are difficult to enforce.

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Section F: Termination and exit

20. Is the employer termination notice period specified?

LSA Article 26 requires employers to give 30 days' written advance notice before terminating an employee who has worked for more than three months. If the employer cannot provide 30 days' notice, they must pay 30 days' ordinary wages instead. Failure to comply is a criminal offense: up to two years' imprisonment or a 20 million won fine (as of 2026, verify at KLRI elaw.klri.re.kr).

21. Is the employee resignation notice period specified?

The LSA does not mandate a specific employee resignation notice period. Most hagwon contracts set 30 to 60 days. If the notice period is longer than that, check whether it is paired with a penalty clause for resigning early.

22. Are early termination penalty clauses reviewed?

Early termination penalty clauses (위약금, wiyakgeum) appear in many hagwon contracts. They are often unenforceable. Key questions: Is the penalty amount specified? Is it proportionate to actual harm the employer would suffer? Was separate consideration paid for you to accept this restriction? Unspecified or grossly disproportionate penalties are routinely declined by Korean courts. If the clause is present, note it and consider seeking advice from MOEL's free legal service before signing.

23. Is the housing-on-termination policy stated?

If the employer provides housing, the contract should state how many days' notice you will receive to vacate if employment ends, who covers moving costs, and whether the terms differ between employer-initiated termination and employee resignation.

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Section G: Visa-specific clauses

24. Is E-2 visa sponsorship continuity described?

The contract should explain what your employer will do at mid-contract visa renewal: who handles the paperwork, who pays renewal fees, and what the process is. Early termination of employment triggers the 15-day clock for you to report a new employer or change status.

25. Does the contract prohibit passport or ARC retention?

Your contract must not require you to surrender your passport, Alien Registration Card (외국인등록증, oegugin deungrokjeung), or any other identity document to your employer. This is explicitly prohibited under the Immigration Control Act (출입국관리법, chulipguk gwanlibeop). A clause requiring document surrender is void. The employer faces criminal penalties for requesting or retaining documents.

Passport hold is a crime. An employer who requests, collects, or retains your passport, ARC, or any other identity document commits an offense under the Immigration Control Act, including requests framed as "keeping it safe" at the school office. Report immediately to MOEL (1350) or the local immigration office (1345).

26. Does the contract restrict you to a single classroom or campus without immigration approval?

Your E-2 visa specifies your registered workplace. Working at any other location, including a second campus run by the same company, is an immigration violation unless that location has been added to your visa. Multiple campuses must be registered with immigration and reported within 15 days of your beginning work there.

27. Does any non-compete clause meet the three-part test?

Non-compete clauses are enforceable under Korean law only if: (a) a legitimate business interest exists, (b) separate compensation was paid for accepting the restriction, and (c) the scope is reasonable, generally up to one year and a defined geographic area. Without separate consideration, Korean courts routinely decline enforcement.

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Section H: Verification and completeness

28. Is a bilingual version available, or is a certified translation provided?

If you cannot read Korean, you must have a translation before signing. MOEL's standard bilingual contract is available at law.go.kr. If your employer refuses to provide a Korean-language version or a certified translation, do not sign.

29. Do you have a signed copy of the final contract?

You are entitled to a copy of your signed employment contract. Keep it. Store payslips, timesheets, and all written communications with your employer. If a dispute arises, documentation is your primary asset.

30. Have you independently confirmed the employer's registration against the contract name?

The name on your contract must match the name on the hagwon registration certificate (학원등록증). Check both documents side by side before you sign. Discrepancies between the entity listed on your contract and the entity sponsoring your E-2 visa create immigration and legal complications.

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Four clauses that are always illegal

These provisions appear in some hagwon contracts. They are not gray areas. Each is a clear violation of Korean law. Do not accept them as a negotiating compromise.

1. Severance included in monthly salary

A clause stating that severance pay is "embedded in" or "included in" your monthly wage is illegal. Severance is a statutory entitlement owed at termination, calculated on average wages from the last three months of employment. It cannot be pre-paid through salary unless the employer operates a government-registered retirement pension plan (퇴직연금). Statutory basis: GWRBA Article 8 (severance amount), LSA Article 36 (14-day payment deadline).

2. Employer retention of passport or identity documents

Any contractual or verbal requirement to surrender your passport, ARC, or other identity document to your employer is prohibited under the Immigration Control Act. The clause is void and the employer faces criminal penalties. This applies to requests framed as storage or safekeeping.

3. Unpaid training or orientation periods

Any time you spend doing work-related tasks before or during your contract, including orientation sessions, curriculum review, classroom setup, or trial lessons, counts as working time under the LSA and must be compensated at your contracted rate.

4. Employee pays 100% of National Health Insurance contribution

The 7.19% NHI contribution (as of 2026) is split equally between employer and employee, 3.595% each. A contract requiring you to pay the full 7.19%, whether framed as a salary deduction or a benefit enrollment term, violates NHIS rules. Statutory basis: National Health Insurance Act.

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What your contract must contain in writing

LSA Article 17 requires employers to provide a written document specifying at minimum:

• Wages: the components, calculation method, payment method, and payment date
• Agreed working hours
• Holidays
• Annual paid leave entitlements

These four items must be in writing. A verbal agreement on any of them is legally insufficient. If your contract is silent on any of these four points, ask for them to be added before you sign.

MOEL publishes a bilingual standard employment contract (표준근로계약서) designed for foreign language teachers. Download it from law.go.kr. If your employer resists using a standard contract, that resistance itself is worth noting.

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Visa consequences of contract violations

The 15-day clock

When your E-2 employment ends for any reason, a 15-day countdown begins. You must report a new employer or apply for a status change within those 15 days. From January 2026, workplace change reporting is done online via HiKorea (hikorea.go.kr) using the Integrated Application Form. Failure to report within 15 days is an immigration violation (as of 2026, verify reporting procedures at hikorea.go.kr).

Working at an unregistered location

Your E-2 visa authorizes you to work at the specific registered location listed on your visa. Teaching at any additional campus, corporate office, or community center requires that location to be added to your visa before you begin. Both you and your employer must notify immigration. This is not an HR matter that can be resolved later. It is an immigration violation that can affect visa renewals and future applications.

The Letter of Release

The Letter of Release (LOR) is an administrative practice, not a statutory requirement. You need one only if you leave a position before your contract expires. If your contract concluded naturally at the end of its term, you do not need an LOR: provide documentation that employment concluded on schedule.

If you leave mid-contract due to documented employer fault such as unpaid wages, illegal contract terms, or harassment, and your employer refuses to issue an LOR, that refusal can be addressed through MOEL. A documented finding of employer fault can substitute for an LOR in immigration proceedings. Report the underlying dispute to MOEL first, then contact the Korea Immigration Service (1345) to explain the situation.

How the LOR actually works. The LOR is not a legal document you are owed on demand. Its purpose is to confirm to immigration that you left a position without unresolved contractual obligations. If you leave mid-contract for documented employer fault, report to MOEL first, then contact immigration at 1345. Employer fault on record can substitute for the LOR.

D-10 status

If you leave an E-2 position and need time to find a new teaching role, you may apply to change status to D-10 (구직비자, gujik bija, job seeker visa). This requires a valid reason for leaving your prior position, documentation, and meeting financial requirements. Confirm current D-10 eligibility requirements with the Korea Immigration Service at 1345.

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When things go wrong

If a contract violation has already occurred, here is the escalation path. Work through it in order.

Step 1: Document everything

Before you do anything else, gather: your signed contract, all payslips, any timesheets or attendance records you have, and all written communications with your employer via KakaoTalk, email, or SMS. Written records are the foundation of any claim.

Step 2: Raise the issue with your employer in writing

Send a KakaoTalk message or email describing the specific issue and ask for a written response within five business days. Keep a copy. Korean labor offices take note of whether you attempted direct resolution first.

Step 3: Call MOEL 1350

The Ministry of Employment and Labor (고용노동부, goyong nodongbu) operates a multilingual hotline at 1350. Press 5 for the multilingual menu, then press 7 for English. International callers: +82-2-1544-1350. Calling this number does not trigger immigration consequences. Advisors can tell you whether a violation has occurred and what your options are.

Step 4: File a petition with your local labor office

Submit a formal complaint at the local 지방고용노동청 (jibang goyong nodong cheong, regional labor office). Online submissions: minwon.moel.go.kr. In person: bring your contract, payslips, and all documentation. Investigations typically take 30 to 60 days. You can file while still employed at the hagwon.

Step 5: For hagwon-specific violations, file with the local education office

The 교육청 (gyoyukcheng, Metropolitan or Provincial Office of Education) has jurisdiction over hagwon license violations, including operating without registration, employing teachers without proper credentials, and systematic labor violations. It can issue corrective orders, impose fines, and suspend or revoke a hagwon's license.

Step 6: Seek free legal advice

Seoul Global Center provides free legal consultations in English and other languages on weekdays from 14:00 to 17:00. Seoul Global Migrant Centers operate in six districts across Seoul and provide similar support.

MOEL 1350 legal advisors can guide you on wage claims, severance disputes, and termination notices at no cost.

Wage claims have a three-year statute of limitations from the date the wage was due (LSA Article 49). Severance claims have a three-year statute of limitations from the date of separation. Do not wait.

Step 7: Immigration issues

For anything touching your visa status, contact the Korea Immigration Service at 1345 (inside Korea) or +82-1345 (international). The center supports 20-plus languages on weekdays from 09:00 to 22:00. Describe the situation clearly: what happened, what visa status you currently hold, and what you are trying to do next.

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A note on chain hagwons, independent hagwons, and EPIK

Large hagwon chains (such as YBM, Pagoda, CDI/ChungDahm, Avalon, SLP, Wonderland, and Creverse) typically use standardized contracts with documented payroll systems. Violations still occur, but the paper trail is more consistent and recourse tends to be clearer.

Independent hagwons show greater variance. Smaller operations may draft contracts without legal review, or use informal arrangements that make documentation harder. Review their contracts with particular care.

EPIK (English Program in Korea) and provincial equivalents (GEPIK in Gyeonggi) operate under a separate standardized framework managed by the Ministry of Education. The contract structure, benefits, and grievance procedures for EPIK positions are different from those in private hagwons and are outside the scope of this guide.

Corporate academies at large Korean companies (Samsung, SK, LG, and similar) typically offer higher compensation and are often on E-7 visas rather than E-2. The same LSA provisions apply.

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FAQ

Can my hagwon deduct housing costs from my salary without putting it in the contract? No. LSA Article 43 prohibits arbitrary wage deductions. Any housing deduction must be itemized in your employment contract before you sign. A verbal agreement or a deduction added after signing is not legal.

I worked 11 months and the hagwon let me go. Am I owed severance? Severance requires one full year of continuous employment (365 days). At 11 months, no severance is legally owed. However, if you can show the employer terminated your contract specifically to avoid the one-year threshold, a court may find unfair dismissal. Document everything and consult a labor advisor.

My contract has a six-month non-compete clause. Will a Korean court enforce it? Only if three conditions are met: a legitimate business interest exists, separate compensation was paid for accepting the restriction, and the scope is reasonable (generally up to one year and a defined geographic area). Without separate consideration, Korean courts routinely decline to enforce non-compete clauses.

My employer says I can only take annual leave during school holiday periods. Is that legal? Not as an absolute restriction. LSA Article 60(5) gives you the right to request leave at the time of your choosing. Employers can adjust leave timing only when granting your requested time would cause significant disruption to business operations. A blanket contract clause restricting all leave to school-break periods is not legally enforceable.

What happens to my E-2 visa if I leave before my contract ends? Your E-2 is tied to your employer. Both you and your employer must notify immigration. You have 15 days to report a new employer or apply for a status change (for example, D-10). An employer cannot legally withhold a Letter of Release when documented employer fault caused your departure.

My contract says the Korean version controls. Is the English version I signed legally binding? The Korean-language version of a bilingual contract typically controls in Korean courts. Korean labor law applies regardless of what the contract says about applicable law. The Labor Standards Act and the Guarantee of Workers' Retirement Benefits Act apply to all employment habitually performed in Korea.

My hagwon wants me to teach at a company office two days a week in addition to the hagwon location. What are the visa implications? Working at any unregistered location is an immigration violation. Your employer must add the location through immigration and you must report the addition within 15 days of beginning work at the new site. Do not start teaching there until immigration approves the addition.

I am a Vietnamese national teaching Vietnamese on an E-2 visa. Do the same rules apply to me? Yes. All E-2 holders, regardless of nationality or the language they teach, receive the same LSA protections. The main variable by nationality is pension: check your country's totalization agreement status at nps.or.kr.

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Last verified: April 2026. Wage rates, NHI contribution percentages, and immigration reporting procedures change annually. Verify current figures at moel.go.kr, nhis.or.kr, nps.or.kr, and hikorea.go.kr before acting on specific numbers. The 30-teaching-hour-per-week figure cited in this guide reflects industry norm, not a confirmed statutory E-2 cap. The LSA 52-hour weekly maximum is the applicable legal ceiling.