I made this info graph to help people understand the work requirements to teach in Taiwan as of 2018. There have been many recent questions about what is needed to work and what the possibilities are. I hope this helps.
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As for the legality, both of teaching in kinder in English and without required credentials are not grey areas but illegal，even for locals.
As for public schools, someone with a degree but without a teacher licence can be hired as a substitute teacher for less than 1 yr, if the person doesnt need to get a work permit through the school.