JANUARY 2017
MARKETWATCH Information from Cartus on Relocation and International Assignment Trends and Practices.
EMERGING MARKETS: SOUTH KOREA
This issue of Market Watch discusses the The Republic of Korea in Brief specific topics associated with working and • Capital: Seoul living in the Republic of Korea—better known as • Other Significant Cities: Busan, Daegu South Korea. Among these topics are housing, • Official Language: Korean schooling, transportation, medical services, • Government: Constitutional republic with unitary president security, shopping, language and cultural issues. • Population: 50,219,669 • Major Industrial Products: Semiconductors, automobiles, ships, Traditionally, South Korea has not been a frequent assignment consumer electronics, mobile telecommunications, equipment, destination but its popularity has increased in the last few years. steel, and chemicals. Although a language barrier can exist, many international assignees • Currency: South Korean won (W) (KRW) have found Korean people to be open, warm, and friendly. • Time Zone: Korea Standard Time (UTC+9) Expats to South Korea find a country with an elevated standard of living at a reasonable price level. The cities are modern, with HOUSING services and support for expats improving over the last 10 years. Most assignees to South Korea are surprised and pleased by the Some costs, such as food and housing, may prove more expensive quality, selection, and availability of housing in the country. Housing than an assignee’s home country, but these expenses can be offset is readily available both in the capital, Seoul, and throughout the by lower transportation costs. country. Not surprisingly, the larger Korean cities offer more housing selection than the smaller cities and rural areas. Key Challenge Areas Information from Cartus’ Destination Services Provider on the There are a number of residential areas in Seoul; and where expats ground in South Korea points to several key areas of importance choose to live depends on where they work or where their children for assignees: are schooled. Three types of housing are primarily available in the capital: Housing Schooling • Villas: Usually low-rise structures (three to five stories) of newer construction with modern interiors; this housing often includes Transportation balconies and private gardens. Shopping • Luxury high-rises: Similar to villas in style, but involve high-rise Language structures (20 or more storeys) with enclosed balconies; these Cultural Issues offerings can include fitness centers and playgrounds for children. • Free-standing homes: Tend to be older and not as attractive as newer housing; there are fewer homes available for rental since many owners are building villas where free-standing homes previously stood. When this type of housing can be obtained, however, more space is available usually with a garden. Properties are usually not furnished. It is possible to negotiate a furnished dwelling for an increased rental fee. Typically, housing includes major appliances—refrigerator, washer/dryer, and air conditioning.
CARTUS | MARKET WATCH: SOUTH KOREA / JANUARY 2017 | PAGE 1 OF 3 JANUARY 2017
MARKETWATCH Information from Cartus on Relocation and International Assignment Trends and Practices.
EMERGING MARKETS: SOUTH KOREA
Assignees can access the Internet to see what kind of housing is The following presents an international school cost estimate available in South Korea; however, the information available can for Seoul: often be incorrect or out-of-date. This is especially true regarding rental fees. Item Cost Application Fee US$300 (non-refundable) per child The following presents a property rental estimate for Seoul: Registration fee KRW 550,000 per child (non-refundable one-time Low Range Mid Range HIgh Range fee) One bedroom KRW 1.5-2 million KRW 2-2.5 N/A Capital fee KRW 5,000,000 per child (non-refundable one-time (very rare) million fee) Two Bedrooms KRW 2.5-3.5 million KRW 4–5 KRW 5-6 Tuition KRW 18,370,000 + US$7,060 million million Three Bedrooms KRW 3-4 million KRW 5-6 KRW 7-9 Information correct as of January 2017 million million • Based on 2017 costs. Information correct as of January 2017 • Assuming the child is seven years old, holding foreign citizenship, and Assuming: holding a dependent visa. • All rentals are unfurnished, net rental per month. • Excludes school bus transportation, books, uniforms, and laboratory • The housing is in expatriate community high-rise apartment complexes. equipment. • The rental fee excludes utilities, club membership, parking, commissions, and government registration duty. Program Advice • It is essential to plan early to secure a place at an international Program Advice school. The assignee and family should take time to research • Given that internet information about rentals can be out- the schools available and the admission criteria, submitting of-date, we advise that assignees use this type of search for applications to preferred schools as soon as possible. information purposes only. • We recommend that where possible families secure schooling • Coordinating school acceptance and housing selection is a before housing to minimize the journey time between home difficult balancing act. Whilst ideally we would recommend and school. that for families with school age children, a school place is secured before housing selection. This is not always possible TRANSPORTATION and families may need to consider the possibility of making a Travel throughout South Korea is made easy through a network housing decision without the benefit of confirmed enrolment of expressways and highways, air travel options, a rail system at their primary school of choice. that includes high-speed rail, and express bus services. In Seoul • Whilst the availability of housing is generally good, we do and other large cities such as Busan and Daegu, transportation suggest that assignees act quickly when they see a home they options include an excellent public transportation network, which like to ensure they are successful in securing it. includes subways, buses, and taxis. Some expat challenges may present themselves due to language considerations in taxis and SCHOOLING on buses. The subway system however is signed in English and has an English website. Road signage is in both English and A number of options exist in South Korea for educating Korean, and for main roads, in Chinese as well. expatriate children. There is, however, limited space in the preferred schools, which means that assignees should carefully Many expats—especially those from North America—choose to research what schools meet their needs and what availability drive themselves rather than use public transportation. This is an exists. Expats should also apply early to these schools to ensure easy transition, since South Korea uses left-hand drive. that their children are eligible for entry when needed. There is a very good selection of international schools in Seoul, MEDICAL SERVICES including English, Chinese, Japanese, French, and German schools. Several provide pre-kindergarten through high school Medical services in South Korea are considered to be very good. programs. For the upper grades, many schools offer advanced In fact, the country is increasingly recognized as an important placement and International Baccalaureate programs. medical tourism destination. Modern hospitals can be found in all major cities, including a number of international clinics that cater to the expat community.
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MARKETWATCH Information from Cartus on Relocation and International Assignment Trends and Practices.
EMERGING MARKETS: SOUTH KOREA
SECURITY in the democratic process and freedom of choice. There is Day-to-day security is rarely a concern in South Korea. Although also emphasis on the importance of the group as opposed to crime does exist in Seoul and the larger cities, it remains less the individual. This is demonstrated in the workplace by an than one would expect for a large metropolitan city. Almost all employee’s obedience and loyalty to their employer. Social housing includes a security system, and in some cases, security interactions are regulated by formalities, which focus on courtesy guards. This, however, is typically provided more as a precaution and proper behavior towards one another. rather than a necessity.
SHOPPING Doing Business in South Korea In South Korea, expats can find almost everything they would • Many professionals in South Korea have studied in the west, so need or want to buy; however, rarely are all items available in a are well versed in western ways, although in the workplace they single store, as is found in much of the world. Shopping options will revert to traditional approaches. include: • Impatience and raising your voice is frowned upon in South • Mega markets that provide a wide variety of household goods Korea, as is showing too much emotion. and food items, with the products being safe and fresh. • Formality is expected and before attending initial meetings, • Recognizable chain stores (such as Costco) that provide an assignees should make sure they are comfortable with local excellent selection of products—often reassuring to expats in rituals, for example the process of business card exchanges. South Korea. • Specialty food markets selling items from around the world • As in wider society, the workplace has a rigid hierarchy, with those with status and older generations commanding LANGUAGE respect. However, middle management (especially in larger organisations) have quite a lot of power, so assignees should The country’s official language is Korean, spoken by the vast treat all colleagues with the same degree of respect to avoid majority of the population. Korean has its own 24-character offending anyone. Hangul alphabet, although script commonly used is a mixture of Hangul and Chinese characters. Assignees should be mindful • Business relationships are as important as the business itself, that Korean is a very precise language, with one misheard with third party introductions and referrals very helpful in syllable completely changing the meaning of a sentence. Due setting a trusting climate. to western influences, younger generations and the business • Like many other Asian nationalities, Koreans believe that community typically understand English, Chinese and Japanese. contracts are a starting point rather than the final stage. Program Advice • Koreans have a sense of humor closer to that of Westerners • Although younger generations do have understanding of than some other Asian cultures. Humor is important in bonding, English, Chinese and Japanese, we advise assignees and their although the assignee should wait until a relationship has been families relocating to South Korea learn some spoken Korean established before using humor in the workplace. which is appreciated by locals. Cartus thanks our Destination Service Provider The Delaney CULTURAL ISSUES Agency for the information provided for this issue of Market With their complex history, South Korean people are proud of Watch. In addition we thank Country Navigator powered by their country’s progressive achievements and culture. People TMA World – www.tmaworld.com for their contribution to the are patient, industrious and traditional and believe very strongly Language and Cultural Issues sections.
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©2017 Cartus Corporation. All Rights Reserved. Cartus and the Cartus logo are registered trademarks of Cartus Corporation. Sources: The Delaney Agency and Country Navigator powered by TMA World – www.tmaworld.com. The information provided in this MarketWatch publication is provided in good faith but is not intended to provide specific advice or take the place of wither written law or regulations. Conditions in many emerging markets change quickly, so Cartus does not guarantee the accuracy or endorse any of the views or opinions given by third parties and accepts no liability for the data and information included within.
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