Helpful Resources for Making it Big in Korea
Cost of Living Calculations
I was wondering if you might have some advice for me. I may have an
opportunity to return to Korea for LG Electronics. In
your experience what resources can you recommend,
or calculators to use, that would give me realistic cost of living
change factors to consider when in salary and living arrangement discussions. Thank
you for your valuable input. Stacy H.
opportunity to return to Korea for LG Electronics. In
your experience what resources can you recommend,
or calculators to use, that would give me realistic cost of living
change factors to consider when in salary and living arrangement discussions. Thank
you for your valuable input. Stacy H.
Replies to This Discussion | 이 토론에 대한 답글들
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Permalink Reply by Steven S. Bammel on -
The cost of living really depends greatly on where you live in Korea and how much you're willing to eat like a Korean.
If you're going to work for LG Electronics, will you be in Yoido? Are they providing a place to live? If so, then you've got a big headache off your mind. If not, here are some thoughts:
As for apartment key deposit, if you want a decent place and want to do it the Korean way with monthly rent too, then US$10-20K up-front is the BARE MINIMUM in Seoul. You'd then pay monthly rent and management fees of several hundred dollars. The way Koreans generally rent is to put down up to $100-200K cash for a small place in Seoul and then not have any monthly rent due.
The alternative to a lot of money up front is one of those service apartments for foreigners, but those get expensive fast. If you can get out of Seoul, you could get yourself an “officetel” for less or even a multi-family apartment. But the rent even on my office way out in Ansan, which is a little dingy, is about a $5,000 deposit and then $200/month rent + $150/month or so for management/electricity charges. I’ve got a bathroom and kitchenette in the room and it’s built for people to live in if they want.
As for food, if you insist on eating mostly Western food, I guess you should count on spending about double what you do back home. In fact, click here for a link to a photo I took a couple days ago of some food I bought for lunches. It shows what $73 will get you.
Other than that, you'll be required to get on the national health insurance plan, but it's not all that expensive; probably something like $40-50/month. And public transport helps with transportation costs.
My data's a bit skewed by living outside the city with a family (our big expense is hakwons for the kids!), but I hope this can give you some ideas. Maybe some other members will be able to improve on the information I've shared here.
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Permalink Reply by Steven S. Bammel on
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Here's a few more numbers another member here at KBC just sent me. They assume a pretty high standard of living with a two-bedroom apartment in the Gangnam area.
Rent - 3,000,000
Maid - 200,000
Cable - 40,000
Groceries - 300,000
Hair - 50,000
Phone (home line) - 15,000
Mobile phone - 50,000
Internet - 30,000
Restaurants - 450,000
Subway/buses - 110,000
Taxis - 170,000
Utilities - 300,000
Entertainment- 230,000
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Permalink Reply by Erik Cornelius on -
Here's the basic info on Seoul from Xpatulator: http://www.xpatulator.com/outside.cfm?lid=111
Really the amount you need will depend on your standard of living and how much you go out. For my most recent salary negotiations I used Washington, DC as a benchmark. It seems that on balance, prices are similar between the two cities.
If you have school aged kids who will be coming with you, also factor that into the equation. This is not just because of the additional cost of a three or four bedroom apartment over a two bedroom place. It's because there's not enough spaces in the international schools intended for western kids. The tuition at these schools is also quite high, around KRW 20,000,000 per year.
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Permalink Reply by james s on -
hi Stacey,
location will be a primary factor when considering the cost of living, currently i live near Mokdong (one of the richest areas in seoul) and my apartment is 700000w a month, i live alone, its like an office tel (2 floors small kitchen private bathroom). Gas is about 20000w a month, electricity is relatively cheap, as its not privatised in korea, so that comes in at about 40000w a month. there are extra apartment maintenance cost of around 120000w a month (water included). that pays for the useless security guard, who does nothing, and the staff who work on the 8th floor who also do nothing, when my korean gets better i will certainly contest this. internet and contract phone (good internet, basic phone contract) are 60000w a month. Then theres food. i like to eat healthily, korean food isnt that healty with the inflow of fast food from the west, but the food is relatively cheap. i value health so i spent about 100000w a week on food, but you can live on half that as restaurants are cheap and such. i dont know what currency your converting from so ill calculate it in won for you
rent: 700000w
phone+ internet: 60000w
(good) food: 100000w
apartment maintenance + water: 120000w
electricity: 40000w
gas: 20000w
Total = 1,040,000w per month
if your in a cheaper area you can obviously save alot on rent, hope that cleared some things up
james
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Permalink Reply by Stacy Allen Hantelman on -
Housing has been mentioned as a part of the relocation package, but to what extent is not yet determined. The position would be at the LG Pyoung taek facility just outside Osan. The ride from Youngdeunpo to Osan on Line 1 is about 1hr and 15 min. Thank you all for your great tips!! Keep 'em coming!!
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Permalink Reply by Blair A on -
When I first came back to Korea in 08, I was going from Osan to Yoido for the first month and it would take less than 1hr 15 min. If you take the 급행(express train) it would be about 40 min subway time.
Also if living in Osan is an option the housing costs will drop considerably.
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Permalink Reply by Erik Cornelius on
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If you're working in Pyeongtaek rather than Yoido, by all means look for an apartment close to work. Yoido is overpriced, inconvenient, boring and sometimes the center of loud political rallies. Go live where the commute is short, the air is clean and the prices are lower.
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Permalink Reply by William Sisson on -
I agree with Eric on housing. In fact for the same amount of monthly rent paid for a small apartment in Seoul you can live in a house closer to work. Steve gave a good run down on cost of living expenses. Agree with him on most of the cost. LG generally has a great expat package but as with all companies they want to have you here for as little as possible. Stick by your guns and hold out for great housing. You might even consider coming over here first and stay in a hotel before you settle on housing.
Get in touch when you arrive.
Cheers, William
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Permalink Reply by Austin Davidsen on -
Hello All,
This seems like the right place to add my own question.. I taught in English in Korea for a few years, before returning to the states for grad school. Now that I am close to graduation, I am considering a return to Korea - but not to the ESL community.
I am in discussions with a small Korean consulting and research firm about joining their team... to do some research, but also some international marketing as they expand abroad. The office is in Gangnam.
Salary hasn't been discussed yet, but I am trying to prepare for that eventuality. I have a good feeling for what my skills are worth as an English teacher, and I know what it costs to live in Korea, but I have no idea what to expect for this job. I dug up a ministry of labor list on average salaries for various titles, but there's no differentiation for age, education, or experience, and it certainly doesn't say what an expat can expect.
Some professors and friends have suggested that I should offer based on what I could earn for a similar job in the US. But without more information, I don't know a) if a US salary would be too wildly different from the Korean salary, or b) if it is even fair to negotiate on that principle....
Can anyone offer some insight?
Thank you!
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Permalink Reply by Steven S. Bammel on
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Hard to say.
Ultimately, you should ask for what you can get. I think linking your discussion to a US salary is only useful indirectly; same for what it costs to live in Korea.
If you're dealing with a small Korean company, you should not expect them to load their offer up with much advance cash. If you're lucky, they won't try to make it all commission-based. This slightly-cynical view is based on a good bit of experience in Korea.
These are just a couple guidelines to go on; I'm not really in a position to suggest numbers. Good luck though and I'd love to find out how it turns out!
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Permalink Reply by Austin Davidsen on
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Interesting. Thanks for your input Steven...
I'm still at a loss for even ball parking an offer. I am more worried about pricing myself out of the market, than undervaluing my skills. One profesor recommended saying something like "I believe this job description and my skills would be valued at X, but I am willing to entertain all serious offers."
How does that strike you?
Thanks again, and I'll be sure to keep you posted. I look forward to getting involved with the KBC should I find myself back in Seoul!
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Permalink Reply by Steven S. Bammel on
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I've been surprised how little a lot of expats are making sometimes.
If you really want to get back to Korea and recognize how thin the market is, as well as what "small Korean companies" like to pay, why don't you suggest a base price near the range of an English teacher and then get your upside from performance bonuses?
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