Sticker shock for expats

A survey released yesterday by Mercer Human Resources Consulting ranks Seoul as the fifth most expensive city in the world for expatriate living.  Seoul is up two spots from last year, and it now ranks fifth behind Tokyo, Osaka, London, and Moscow.  Asuncion, Paraguay remains the cheapest city in the world for expats.  Each year, Mercer publishes this ranking in order to give companies an indication of how much to pay their expatriate employees.  While most local residents manage to live in Seoul on a limited budget, expatriates who want to maintain a comfortable lifestyle in Seoul have to adjust to sticker shock.  It may not be as expensive as Tokyo or London, but then again, one would not expect Seoul to be more expensive than New York City or Paris.

It is still a bit of a mystery to me how Koreans can afford to live in Seoul.  When the average Korean earns about $12,500 (U.S.) annually, one wonders how Koreans can afford to live in Seoul at all (one in every four Korean lives in Greater Seoul).  Granted, Koreans can buy cheaper goods at local markets, rather than shopping at upscale department stores.  Plus, they often live at home with their parents until they can afford to rent their own place, and when they do rent or buy, they typically buy in areas far from downtown such as in Incheon City.  Although the cost of living in Korea is much cheaper for Americans who are stationed at local U.S. military bases because the military subsidizes goods purchased on base, prices on the local economy are significantly higher.  For example, prices at the three Costco warehouses in Seoul are far higher than in the U.S.  I think I would find it hard to make ends meet if I lived in Seoul making $12,500 a year.

The fact that 1 U.S. dollar equals approximately 1,000 won also hides the true cost of an item.  For example, when one pays 16,000 won for a lunch with one 10,000 won bill, a 5,000 won bill, and a 1,000 won bill, one does not automatically calculate the true cost of the meal they just purchased.  In the U.S., I commonly made my own lunch or paid a few dollars for lunch at a cafeteria.  Now, I routinely spend $6-$16 per day having lunch with colleagues.  Food and housing costs seem to make up the highest percentage of a typical Korean’s budget.  Apartments can cost well over $1,000,000 (U.S.) in some areas of town, especially in Jongno-gu (central district), Yongsan-gu (just south of downtown), and Gangnam-gu (the area south of the river).  Dining and entertainment is usually a large portion of one’s budget, because meeting with friends and coworkers for food and drink is a very common activity in Seoul. 

Dinner and a subway ride

I went out solo tonight for a rare night alone.  I met up with a fellow UW MBA alumnus tonight near Gangnam Station for dinner at Platinum Micro Brewery, a local brew pub.  It’s been awhile since we’ve seen each other.  I chose the place based on an online recommendation.  I wanted to find a place that brews its own beer, and Platinum turned out to be a winner.  I’m not too fond of Korea’s three major macro brews, OB, Hite, and Cass, but Platinum’s beer is outstanding.  The brew pub offers an all-you-can-eat buffet and all-you-can-drink beer from 6 p.m. to 8:30 p.m. each weeknight (yes, the beer tap shuts off at 8:30 p.m.  No sneaking extra pints).  The Western-style cuisine was delicious, and the beer was great.  I tried a cream stout and a sweet Belgian-style weiss bier.  Platinum does as good a job crafting beers as any brew pub microbrew I’ve tasted.  The place seems to be very popular with the college-age crowd.  Two others were supposed to join us tonight, but they had other commitments.  Still, my friend and I had a good time catching up.  The area near Gangnam Station was filled with activity, despite the fact that I visited it on a Tuesday night.  People there dressed up in suits and beautiful dresses, indicating that it is a slightly upscale part of town, albeit not as trendy as Myeongdong.

I went from work to Gangnam Station by subway.  I noticed a couple of oddities in the Seoul subway.  For one, peddlers love to hock their wares on subway trains.  Tonight a gentleman stopped next to me in the middle of the train car and began crying out about how good his product was to the passengers.  I think it was an exercise accessory, but I’m not sure.  In the past on the subway I’ve seen vendors sell key chain flashlights.  Based on the vendor’s claim, his product is the best on the market and could be purchased for a limited time on the subway for only 5,000 won (about $5).  I also noticed that many subway passengers play video games on their cell phones.  Korea is on the cutting edge of cellular technology, although I have yet to see it for myself (I have an old, cheap cell phone).  The screens are small, but on the subway simple strategy games seem to be a great way to break the monotony of the ride.  As usual, I did not see a single foreigner riding the subway.  It seems that foreigners living in Seoul may be too dependent on other means of transportation.

An intriguing day

The mood in downtown Seoul today was a bit more animated than usual as Japanese Prime Minister Junichiro Koizumi met with Korean President Roh Moo-hyun at the Blue House, Korea’s presidential residence.  The two leaders met to address issues that have recently hurt Korean and Japanese relations.  These include the Dokdos, a pair of islands claimed by both Korea and Japan, and Koizumi’s visits to the Yakusuni Shrine in Japan, viewed by many Koreans as a symbol of Japan’s imperialistic past.  The meeting today created quite a buzz downtown.  Many more policemen than usual patrolled the streets in riot gear, and far more military buses were parked along Sejong-no, the main north-south arterial in downtown Seoul.  I did not see many protesters in the streets today.  It seems that the City of Seoul overestimated the number of protesters who might take to the street to protest Koizumi’s visit.  Traffic was also heavier than usual as a result of the activity on the streets today.

I met an interesting visitor at work today.  Bruce Williams is an American nationally syndicated talk show host and columnist.  A veteran of the Korean War, he was in town to look for a college he protected during the war.  He couldn’t remember much about the school.  My Korean colleagues and I did some sleuthing and found the school he sought.  It took us awhile, and he left before we could tell him about the school.  However, I will contact him tomorrow and let him know.  I’ve seen a few Korean celebrities stop by at work, but this is the first American personality I’ve met here.  I can’t say that I know him well, but he sounds vaguely familiar.  He said that he was on one of the AM stations I used to listen to in Seattle.  He might just say a few kind words about me on his show because I helped him out.  No matter what, it’s a nice change from the kinds of American cases I’ve seen lately.  He’s also the most famous American I’ve met here since I met Henry Kissinger a couple months ago.  That’s pretty elite company.