It's all about the key money

I had lunch with a Korean coworker today.  We talked about life in Korea, and somehow the conversation migrated towards talking about housing and commuting in Seoul.  She lives with her family in northwest Seoul, works downtown, drops her child off at daycare in south central Seoul, while her husband commutes to work in southeast Seoul.  Unfortunately, her daily commute is long and complicated.  I asked her why she hasn’t move south to a more convenient location.  She answered that she rents an apartment in Seoul close to where her parents live.  Her parents take care of her son every morning before they drop him off at daycare.  Also, housing near the Han River is very expensive, making it cost prohibitive for them to relocate to that area.  It’s unfortunate that their housing options are limited.  Until they rent or buy elsewhere or change jobs, they will continue to have a long work commute via subway or bus.  Because parking is at a premium in Seoul, bus and subway are usually the best options for the typical Seoul commuter.

Korea’s housing sector functions somewhat differently than that of the U.S.  Many Koreans rent apartments.  Most renters pay a “key money” fee that grants them the right to live in a rental (exceptions include those who rent from other family members).  “Key money” is a very steep deposit renters must pay landlords up front before moving into a rental.  Renters can get their “key money” back after they move out of the property.  However, they receive no additional return for their deposit.  Consequently, Korean renters pay a lot of “key money” and have nothing to show for it once they get their “key money” back.  Koreans can buy their homes, but because they have to pay the entire cost up front, most Koreans do not buy homes until they are older.  They finance home purchases out of pocket, use funds provided by family members, or tap moderate lines of bank credit.  Few Koreans assume American-style mortgages.  Putting “5 per cent” down on a home is virtually impossible to do in Korea.  Those who cannot afford to buy or rent a home typically live with their parents until they marry or accrue enough “key money” to move out on their own.  Americans’ ability to buy a home with little money down gives them an opportunity to become independent at an earlier age and to start accruing equity early life.  While Americans saving very little and frequently have burdensome personal debt, many increase their net worth through home ownership.  In recent years, the U.S. housing market has boomed, and most U.S. home owners have benefited from substantial capital gains on their homes.  In Korea however, many Koreans wait until later in life to buy, and they miss out on early opportunities to purchase a home and build home equity.

Of students and eruptions

This afternoon I gave a presentation to college students at Chung-Ahn University in Seoul.  It’s the first presentation I’ve given in some time.  I thought I would be nervous, but I was not.  About 30 students showed up to learn more about studying in the U.S. and about steps they need to take to study there.  I used a PowerPoint presentation written in Korean as a guide (I frequently referred to notes in English).  The students seemed to enjoy the presentation, and I tried to liven it up a bit with some understated humor.  A colleague of mine joined me and did an excellent job translating my monologue into Korean.  The students were quiet throughout the presentation, and I had to coax them to ask questions at the end.  I’ve been told that silence is not typical during these types of gatherings.  Presenters are typically bombarded with questions.  Perhaps my presentation was so thorough that I answered all of their questions, or maybe they’re just introverted.  I doubt it.  I think they were shy.  After the presentation, some of the students came up to me with more specific questions, reinforced in my mind that they were interested in what I had to say.

 

I also spent time with one of the vice presidents at Chung-Ahn.  He received his Ph.D from the U.S. and had a fabulous grasp of English and the American education system.  I told him some of my impressions about the Korean educational system, including some I wrote about yesterday.  He clarified that Korean students do not have to necessarily change schools if they change majors.  However, changing majors is much more difficult to do in Korea than it is in the U.S.  He said that most Korean students go to the states to study English and then return to Korea to finish their degrees.  He appreciated that my colleague and I visited the school a community service to help Korean students learn more about study in the U.S.  He also pointed out that the university hosts many foreign students, and I told him that I was glad to hear that the university gave foreign students the opportunity to learn more about Korean culture.  Korean exchange programs are great outreach programs.

 

Today is the 25th anniversary of the initial eruption of Mt. St. Helens in Washington State.  I did not live in Washington at the time, but my dad was living there in anticipation of our eventual relocation there.  My family joined him in Washington State months after the blast occurred.  57 people lost their lives in the eruption, including Harry Truman, an elderly gentleman who had lived near the mountain for years and refused to leave despite repeated warnings.  The pre-eruption photos reveal what was once one of the most beautiful mountains in the U.S.  Mt. St. Helens even now looks quite barren and misshapen.  The area that surrounds it is still very devastated, although the vegetation has started growing again.  The remnant of what used to be gorgeous Spirit Lake at the base of the mountain is just a shadow of what it used to be.  My wife and I visited the mountain for the first time several years ago.  It’s quite humble standing before a mountain that has so obviously been scarred by a volcanic blast.  The mountain has recently started rumbling again, and its volcanic dome has begun to grow again.  It frequently lets off steam.  No one knows when it will erupt again.  It’s unlikely that it will have another devastating eruption like it did in 1980, but you never know.

The rule of four versus five

Asian students are among the most diligent, hardest-working students in the world.  They are generally driven to excel academically.  Those who go to the U.S. for education typically do very well because are disciplined and conditioned to excel.  In fact, a large portion of math and science students in U.S. universities migrated from Asia, particularly from China, India, and Korea.  In Korea, the drive for primary and secondary students to excel academically is especially acute.  Korean public education students work extremely hard.  Their primary goal is to perform well on college entrance exams in the hope of getting into their college of choice.  The chosen few who do particularly well are able to get into the elite Korean universities, including Seoul National University, Yonsei University, Ehwa Women’s University, and Korea University.  The Korean educational system is competitive to such an extent that Korean students often study up to 20 hours per day in order to stay ahead.  There’s an infamous saying in Korea known as "the rule of four versus five."  It states that students who sleep four hours per day will get into the college of their choice, while those who sleep five hours per day will not.  In addition to attending public schools, Korean students spend endless hours studying at private academies with professional tutors who grill them in a variety of subjects, particularly English.  Korean parents will spend thousands and thousands of dollars (millions of Korean won) to put their children through extracurricular training so that they can have an advantage when it comes to taking the college placement exam.

As an American, I find the Korean educational system both admirable and unsettling.  I really admire Korean students who work so hard to get ahead.  I also admire their parents’ dedication to putting their children through school, no matter how high the cost.  Korean parents are immensely supportive when it comes to making sure their children have the best educational and career opportunities.  At the same time, I am concerned about the unforgiving nature of the Korean educational system.  Articles like the one I recently read in the International Herald Tribune about student protests over the Korean educational system highlight just how unforgiving the Korean system can be.  Those who do not perform well face a far less certain future than those who do.  Their status in life, their career, the person they marry, and where they live are often determined by the outcome of a single exam.  Students can take the annual placement exam up to three times.  However, it is still very difficult for some students to succeed, even after testing multiple tries. 

Although the U.S. educational system is far from perfect, I believe it is preeminent in one critical aspect–it is much more inclusive, and it offers far more opportunities for academic and career success than does the Korean system.  Even some Koreans agree with me.  Those I have talked to acknowledge that the Korean system can be very harsh, and I meet many students who would prefer to pursue their education in the U.S.  This is only partly due to American academic curricula.  It is also because competitive pressure is much less intense in the U.S., and Korean students can take advantage of a wide range of academic and career opportunities in the U.S.  For example, they do not need to change schools in the U.S. if they change majors (they do in Korea).  They can attend school as non-traditional students if they are older or want to pursue unique educational interests.  There are far fewer non-traditional students in Korea.  A 55-year-old Korean grandmother would be hard-pressed to obtain her doctorate degree in Korea, whereas in the U.S. she can pursue her degree from any institution at any age, so long as she meets the entrance requirements.  The occasional story of the American octogenarian who earns his bachelor’s degree at a U.S. school is unheard of in Korea.

An American friend of mine is currently attending a master’s program at one of Korea’s top universities.  He sat in on a few courses before choosing his course schedule.  Two of his professors bluntly told him that he did not belong in their classes.  He did not conform to the norm, perhaps because he has a tenuous grasp of Korean.  He was finally able to find a niche for himself at that school and found a way to fit in.  He is one of the lucky ones, perhaps because he is a foreigner.  He would have been readily accepted by his teachers and peers if he had enrolled in a Korean language course.  However, because he chose to enroll in mainstream science courses, he met with resistance.  It’s an unfortunate reality of life in the Korean educational system.