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Economy

Seoul more expensive than Tokyo for expats due to high real estate costs

The high cost of rent for office spaces and housing, as well as tuition fees for international schools, undermine Seoul's attractiveness

By Nov 20, 2022 (Gmt+09:00)

2 Min read

Lotte Tower in Jamsil, one of Seoul's landmarks 
Lotte Tower in Jamsil, one of Seoul's landmarks 


TOKYO — The monthly rent of a commercial building in Seoul has surpassed that of Tokyo for the first time.

The rent for an office building in the business district of Toranomon in the Minato ward of Tokyo is 6,655 yen ($47.41) per square meter, according to a recently released report by the Japan External Trade Organization (JETRO). 

The figure for an office building in the heart of the Jongro district of Seoul is 64,000 won ($47.76) per square meter. 

But when using the exchange rate of Sept. 1 when JETRO was conducting the research, the rent in Tokyo was slightly more expensive. 

The rent in Fukuoka, Japan stands at $36.60 per square meter. The island of Kyushu is grooming the city as the manufacturing hub of cutting-edge technology by hosting a Taiwan Semiconductor Manufacturing Co. (TSMC) plant and an image sensor plant for Sony Group Corp. 

It is also more expensive to send employees to Seoul than to Tokyo or Fukuoka. 

The rent for typical expatriate housing in Seoul costs on average $1,747, more than $400 than the rent in Tokyo and around $988 more than in Fukuoka. 

International schools, at around $50,000 per year in Seoul, are nearly double the cost of such schools in Tokyo. 

The average monthly salary for a regular employee in the semiconductor sector in Seoul was $1,960, compared to $1,933 in Tokyo. 

The standard of living, which global companies consider heavily when determining where to set up their regional headquarters, was also lower for Seoul than for Tokyo. 

According to the New York-based Global Finance magazine’s World’s Best Cities to Live in 2022, Tokyo ranked first place, followed by London. 

Seoul ranked eighth place, trailing behind Paris but coming in above Berlin. 

Dongdaemun Design Plaza (DDP) at night 
Dongdaemun Design Plaza (DDP) at night 


Japan’s Mori Memorial Foundation's Institute for Urban Strategies ranked Tokyo in third place and Seoul in eighth on its Global Power City Index.

The indices indicate the surging housing prices in Seoul are taking a hit on its attractiveness when compared to other metropolises. 

“Taking into consideration that both countries’ tax rates are about the same, Korea’s competitive advantages in cost of living are in electricity, water and gas bills,” an investment specialist said. 

Write to Yeong-Hyo Jeong at hugh@hankyung.com
Jee Abbey Lee edited this article.
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