Korean Job Discussion Forums

[kingplaya4]

Yeah, I know there was a thread about this awhile back, but doubt I could find it. Didn't notice this when I saw the thread, but prices on restaurant meals, and fruits (which are the only stuff I buy enough to notice) have gone up and pretty steeply too.

Any newbie that thinks they're going to save a million a month on a 2 million salary is kidding themselves if their school does the deductions and they like to do anything at all. Yes, I'm sure someone can come on here and say they're saving 1.4 a month on that salary because they cook rice in their crock pot as their dinner every night or whatever and they drink the soju out of the ajoshi's throwup that they encounter on the roadside, but for normal people, saving a million a month on the standard salary is not very feasible.

I hope new people refuse this as a starting salary. Personally, the least I'll accept next year is 2.3.

[Hyeon Een]

I'd be most interested in a thread specifying SPECIFIC price rises people have witnessed in the last year.

Off the top of my head I can't name any, probably because I don't keep track of specific grocery items in stores.

I've only been here a while but cigarettes went up 500 won (and I THINK they should have gone up another 500 by now from what I read in the Korea Times but maybe it didn't happen.. I'm SURE I read that they were meant to go up againin like mid 2005 or early 2006.. but it didn't happen.)

I have also heard that Kimbab prices have dropped. I heard it used to be like 1,500 or 1,200 a roll but a few years ago the 1,000 kimbab thing took hold and spread across the country.

I'm anticpating ALL pizza stores outside of Dominoes/Pizza Hut to drop their standard price to 5,000 won in the next year. Those new cheap-ass 4,900 stores must be killing their business.

Has anyone else noticed any other specific price rises/fallings in the last year or two? (Gas not included)

[Real Reality]

Seoul, Exorbitant City
Seoul is among the world's most expensive cities despite the fact that Korea only ranks 49th in terms of per capita income....
According to the 2006 Corporate Travel Index by Business Travel News of the U.S., a stay in Seoul cost US$567, the third most expensive among 100 cities after Monte Carlo and Paris....
Chosun Ilbo (January 25, 2007)
http://english.chosun.com/w21data/html/news/200701/200701250019.html

Seoul Second Most Expensive City
Seoul has become the second most expensive city in the world this year,... Mercer Human Resource Consulting looked at 144 cities around the world in March, measuring the comparative cost of more than 200 items, including housing, transportation and food.
By Lee Hyo-sik, Korea Times (June 26, 2006)
http://times.hankooki.com/lpage/200606/kt2006062617040268040.htm

Desperate Measures in South Korea
Suicide is the leading cause of death amongst South Koreans in their 20s and 30s and the number four cause overall....
South Korea is one of the most expensive countries in the world to live in. Property prices in the capital, Seoul, for example, have rocketed in recent years and competition for jobs is fierce.
By Tony Birtley, MWC NEWS (February 12, 2007)
http://mwcnews.net/content/view/12515/195/

Seoul Ranks Last in Happiness Index
Chosun Ilbo (January 19, 2007)
http://english.chosun.com/w21data/html/news/200701/200701190031.html

Gov't Ad Campaign Accused of Abasing Seoul City
"Seoul's living standards are the worst among the world's 30 major cities." This phrase is found on the new government advertisement in the subways that emphasizes the need for relocating the administrative capital.
Shin Hyung-jun, Digital Chosun (July 29, 2004)
http://english.chosun.com/w21data/html/news/200407/200407290037.html

[TiGrBaLm]

well I think there is some truth to your blurb

This place is on par with Japan in terms of prices, and in some cases prices are higher, take plane tickets for example

This "cheap" Korea myth needs to be put down

[Thunndarr]

People have this perception that prices are skyrocketing, but I haven't really seen any evidence of it. I think what people have noticed over the past few years is that the won has gained in strength vs. a lot of other currencies, so prices seem to be going up faster than they are.

Just a quick example. When I came here 5 years ago, a 600mL bottle of coke cost 1000 won. At that time, the exchange rate was 1300 won to the U.S. dollar, so I always mentally calculated the price to be like $0.70 or something, which I figured was pretty cheap.

Fast forward to today. That same bottle of coke has gone up to 1200 won , roughly 20% over 5 years, but the won has gone from 1300 to around 950. In terms of dollars, that same bottle of coke has gone from $0.70 to around $1.30.

Edit: I'm not trying to claim that Korea isn't overpriced. I find it to be overpriced on a great many things. I just don't think prices are going up as fast as some people may think.

[Gwangjuboy]

[mikekim]

bus/gas prices keep going up, but food and lodging seems to be stable.

[Yu_Bum_suk]

I recently spent six days in Seoul (I live in rural Kyeongnam) and I definitely noticed a huge difference in prices. For instance some PC-bangs cost three times as much, beer was often double, and simple restaurant meals were often a bit more. If one knew where to find cheap stuff it would still be possible to get by on very little, but one would have to be a lot more careful.

[Milwaukiedave]

I agree the cost of things are going up, but then again so are the prices in most places in the world. The price of fruits and vegetables have been going up a bit. On the other hand, I can't complain too much. Because of farmers with greenhouses, I can get strawberries year around.

[VanIslander]

[hari seldon]

[ajgeddes]

[Octavius Hite]

It is protectionism that keeps prices high especially for cars, rice and fruit/veggies, but once they sign that FTA with the US things should start to change. I can't wait!

[Return Jones]

Inflation is the biggest obstacle of the working person on his or her way to financial success. I'd like to have a friendly conversation about this, but first let me qualify a few things. I'm fairly versed on this area. Yes, I'm an English teacher, but I have a financial background. Unfortunately I got caught up in the stock market meltdown of the late 90s and found myself taking a break on a six-month contract at a YBM ECC in Korea in 2001. Fast-forward six years and I'm still here (but not at ECC!). I'm doing reasonably well financially with my savings, but I've found that it's not enough to gain ground in building much wealth. Inflation happens so silently and gradually that unless you're conscious of it, it will eat away at your money without you ever knowing. Wages will almost never keep pace with inflation because that's how your employer keeps ahead of the game. You need to invest your savings to get ahead yourself.

Someone asked for examples of inflation. Just look at this very board right now, Someone posted about high gas bills. This is inflation. Things like increased gas, transportation, and housing costs are, by their very nature, inflation. I would estimate that inflation here in Korea to be about 10% or higher. Government reports that inflation is 3% or so are inaccurate. Such reports are usually based on a narrow range of consumer goods prices. Here are a few off the top of my head examples that buck the notion that inflation is in the single digits:

Ground beef: Used to be 980won per 100 grams until about 2002. Now it's about 1680 per 100 grams. Almost double.

Chicken breast: Was about 2500 won per 500 gram pack a few years ago. Now it's about 4700 per 500 grams. Again almost double. I think at Costco if you buy a huge pack you can still get it reasonably, but still not as cheap as before.

Coke: Used to be about 900 won per 2 litre bottle. Now it's 1400 or more where I live.

Buses were 600 won per ride through 2002. Now they're 900 won.

Taxis were 1400 to start, now they're 1900 to start.

My gas bills used to be about 50,000 in the dead of winter. My last bill was 110,000 for similar usage.

Hogwan tuition was as low as 90,000 per month when I started. Now many places charge double or even more.

Housing was much cheaper, too. Cheonse (huge deposits with no monthly fee) was much more common. Nowadays wolse (monthly rent) is more common because interest rates are so low that landlords can't earn enough off of your money. They prefer the regular cash flow instead.

Those are some examples off the top of my head. In each of these cases one could probably point out reasons why the prices have gone up (ie transportation increases due to gas prices). Sure, you could, but those price hikes are still indicative of inflation. As the word turns, events happen and they result in price increases. This is inflation. You must be aware of it to stay ahead.

[VanIslander]