What a 2.3 Million Won Hagwon Contract Actually Pays Over 12 Months
A 2.3 million won hagwon salary usually lands as roughly 2.0 to 2.05 million won a month after standard deductions, plus one month's severance pay and a pension contribution refund (for most non-US nationalities) once you finish a full year.
Park English2026-09-233 min read
Every teacher we've placed reads the number on the contract, does the exchange-rate math in their head, and assumes that's what shows up in the bank. It isn't. Four things come out before you see a won, and one thing gets added back later if you finish the year.
Here's roughly what happens to a 2,300,000 won monthly salary, which is a common starting figure for a hagwon teacher in 2024:
| Deduction | Typical rate | Approx. amount |
|---|---|---|
| National Pension | 4.5% | ~103,500 won |
| Health insurance + long-term care | ~3.9% combined | ~90,000 won |
| Employment insurance | 0.9% | ~20,700 won |
| Income tax + local tax | varies widely | 0 to ~60,000 won |
That leaves most teachers somewhere between 2,000,000 and 2,050,000 won landing in the account each month. The income tax line is the one that swings hardest. Teachers from a handful of countries with a tax treaty with Korea can claim an exemption on teaching income for a limited period, which can push that line close to zero. Teachers without a treaty exemption pay standard withholding, which is small at this salary level but not nothing. Confirm which category you're in with your school's accountant or the local tax office — it genuinely varies by nationality and isn't something your director can just decide for you.
Severance. If you complete one full year on a continuous contract, Korean labor law entitles you to severance pay equal to roughly one month's average wage, paid within 14 days of your last working day. This is separate from your monthly salary and doesn't show up until the contract ends. If your contract is split into back-to-back short terms rather than one continuous year, ask directly whether that counts — this is one of the details worth getting in writing before you sign, not after.
Pension refund. Here's the part that surprises people. The 4.5% you pay into the National Pension Service every month isn't gone. When you leave Korea for good, most nationalities can apply for a lump-sum refund of their own contributions (not the employer's matching share). Citizens of a few countries, including the US, are covered instead by a totalization agreement, which handles pension contributions differently and generally does not allow the same lump-sum refund. Check your specific situation with the NPS before you count on that money.
Health insurance. Your school enrolls you in the National Health Insurance Service, split roughly evenly between you and the employer. It's real coverage, usable at any clinic with the NHIS card, and it's one of the better parts of the deal — but claims for anything unusual, like ongoing physio or specialist referrals, are worth asking a Korean-speaking friend or your school to help translate at least once so you understand the process.
Housing. Most hagwon contracts either provide an apartment or pay a monthly housing allowance instead. Neither shows up as taxable salary in quite the same way, and which one leaves you further ahead depends on the city and the apartment on offer — not something we can generalize in a table.
So the honest version: the contract number is a starting point, not a promise. Ask your school for a sample payslip before you sign, and check it against your first real one in your first month.