[HOAM Foreign Law Column] Housing Issues: Substandard Apartments & Illegal Deductions

For many foreign instructors, housing is part of the employment package. While this can be convenient, it often creates a messy legal dynamic where your boss is also your landlord. If your housing is substandard or if the hagwon is making illegal deductions from your salary for rent and utilities, you must know your rights to prevent being exploited.

1. The Right to 'Habitable Housing'

Under Korean law, an employer providing housing must ensure the residence is safe, clean, and has basic functional facilities (heating, water, electricity). If you are forced to live in a room with severe mold, broken plumbing, or no heating, your employer is in Breach of Contract. You have the right to demand repairs or, in severe cases, terminate your employment and seek damages.

2. Illegal Rent Deductions

Many hagwon owners unilaterally deduct 'Gwallibi' (management fees) or 'Rent' from an instructor's salary without clear documentation.

• The Rule: Any deduction from your salary must be agreed upon in writing and must not fall below the minimum wage threshold.
• The Scam: Some owners charge instructors double the actual management fee to pocket the difference. Always demand to see the original utility bills from the building management office.

3. The 'Housing Deposit' Trap

Some hagwons ask for a 'housing deposit' (often 500,000 to 1 million KRW) to be deducted from your first few paychecks to cover potential damages. While legal if agreed upon, the hagwon MUST return this full amount when you leave, minus any proven damages. They cannot keep it for 'cleaning fees' unless specified in the contract.

4. Eviction Threats as Intimidation

A common tactic to keep instructors from quitting is the threat of immediate eviction. Legally, even if you quit or are fired, the landlord (hagwon) must follow proper eviction procedures. They cannot throw your belongings on the street or change the door lock without a court order.

5. Why Hoam Law Firm?

Housing disputes in a hagwon setting are complex because they involve both labor law and rental law. Hoam Law Firm helps you untangle these issues. We verify if your rent deductions are legal, document substandard living conditions to support a contract termination, and prevent hagwon owners from using your home as a tool of intimidation.

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