The Cost of Living for Students on Scholarships in Korea

Korea is a country with a considerably high standard of living. That is why many young people from all over the world aspire to come and experience life here. In addition, the world-renowned standard of education makes it an attractive destination for international students, too. To support their ambitions, there are various organizations that provide sponsorship in the form of scholarship grants. However, the fine print on many of them forbids holders from engaging in work activities, which is a rather disappointing limitation. That is why many foreign students in Korea have difficulties managing their budget at least during the first two semesters of their stay. In this article, we will examine the cost of living for students on scholarships in Korea and give a few tips on how to cut some essential costs when living on this kind of budget.

Average Monthly Allowance

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As discussed above, there are numerous scholarship opportunities that support international students in Korea. If you are planning on applying for one, the most important thing you need to confirm is whether or not the grant you are considering provides a monthly allowance. That’s right: some scholarships cover only the tuition fee of the holders, so it is crucial not to be confused when planning your budget and future trip. With that out of the way, some of the most common types of scholarships that cover the living costs in addition to tuition fees are direct sponsorship from certain universities, the Korean Government Scholarship Program, and  POSCO TJ Park Foundation. The amount of the allowance can also vary depending on the level of TOPIK (Test of Proficiency in Korean) of the holder, as it is the case of KGSP. To increase your chances of receiving sustainable funding, our guide to TOPIK in Korea will help you ace the test. That being said, based on the aforementioned three grants, it can be estimated that the average monthly allowance for international students is between KRW 750,000 - KRW 1,000,000. While this is certainly a generous amount of money, a common mistake many students make is to refer to it based on the economic standard of their home country. More often than not, this results in the inability to prepare a realistic budget and consequent frustration by the living conditions they have to settle for. To prevent that, let’s see how much of the cost of living for a foreign student in Seoul fits into a scholarship grant of KRW 1,000,000.

Accommodation

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Housing in Korea is one of the first things you need to research prior to coming to Korea as an international student. If you are in dire need of financial support, you should prioritize living in a university dormitory. Each university has its own pricing and their payment plans vary as well. Therefore, if your scholarship allows you to choose from a number of universities, their dormitory pricing should be a must for you to inquire about. For example, the Academy of Korean Studies in Gyeonggi-do has one of the cheapest accommodation options that cost merely KRW 550,000 per semester, which is less than a KRW 100,000 a month! While this type of deals is not impossible to find, they are usually available on remote campuses outside of Seoul, which, on the other hand, will increase your transportation expenses.

Dormitories in Seoul usually accept monthly payments only and it is possible for the fee to be deducted directly from your scholarship, e.g. you will receive a reduced amount of money but your housing will be secured. The average cost of most dorms in Seoul is between KRW 300,000 - KRW 400,000 per month and some places may require a symbolic deposit which will be refunded upon moving out. Besides living on campus, other affordable and contract-free options you may opt for are goshiwons which are available for as cheap as KRW 250,000 per month but lack personal (or any) space. To continue with our budget calculation, let’s assume that you are living in a standard dormitory in Seoul, the monthly rent of which is KRW 400,000. That leaves us about KRW 500,000 more to spend during the month.

Necessities

The biggest advantage of living in a dormitory or a goshiwon is that, unlike other accommodations, you don’t need to pay utility fees, so we are not going to calculate those in our budget. There are other necessities that come hand in hand with student life in Korea. First of all, insurance is mandatory for international students in most educational institutions here. There are two types of services you can resort to: those of a private agency or the national insurance plan. In private companies, you may pay the sum for a whole year or semester at once, and preferential pricing for international students usually amounts to KRW 150,000 a year, depending on age and gender. However, starting from 2021, all expats in Korea are required to subscribe to the national insurance system, so holders of D-2 class visas will have to pay around KRW 60,000 per month. 

Other necessities include getting a cell phone in Korea. The cheapest service you can use is prepaid membership, which means that you can charge at least KRW 5,000 initially and recharge by visiting a store whenever you use it all up. To be fair, this plan is actually more costly than an actual subscription because KRW 5,000 is not going to last you too long. Realistically, you will be spending around KRW 15,000 per month but still suffer some of the limitations of the prepaid installment such as restricted access to public transportation Wi-Fi. On the other hand, cheap postpaid plans can save you money and time. An example of a cheap monthly subscription that may be available at your local telecommunications center is KRW 8,800 and you can end your contract as soon as three months after the first installment without any additional obligations. So, after deducting the monthly cost of the national insurance and the cheapest phone subscription, we are left with KRW 430,000 remaining.

Transportation

Public transportation in Korea is quite efficient and less costly in comparison to taxis and private vehicles. Nevertheless, if the country where you are originally coming from has some special discounts for students, do not expect the same here. In terms of pricing, university students are listed as adults almost everywhere in Korea and that includes public transportation, too. That can be especially inconvenient in case you have to commute between Seoul and Gyeonggi-do on a regular basis. Even when living on campus, you still might have to take a shuttle bus to make it to class on big campuses. Besides that, it is likely that you will have to deal with some administrative issues once in a while such as visits to the bank or to the immigration office. 

The charge for a one-way ride in Seoul is originally KRW 1,500 but you can save money with the Seoul Subway Commuter Card. There are other discounts if you buy a transportation card but, generally, transportation fees should not be underestimated when planning your budget. Connecting your debit card with the transportation system is convenient since money is withdrawn automatically each month. On the other hand, similarly to prepaid phone plans, you can charge a transportation card with a certain amount of money, keeping better track of your finances. Assuming that you go out only 15 days per month, your expenses will be around KRW 50,000. That leaves us with KRW 380,000 more on our hands. 

Food

Unlike the aforementioned expenses, food is much more subjective and, therefore, its approximate cost is difficult to calculate. Similarly to accommodation, your cheapest alternative is to eat on campus. All universities have cafeterias where the average price per meal is around KRW 4,000. Moreover, these meal plans are often included in the pricing of some dormitories, so technically you are paying regardless if you eat there or not. While some might as well take advantage of that, students with dietary restrictions such as Muslims and vegetarians are put in an unfair position. If you have special food preferences, subscribing to a school cafeteria is a huge financial loss.

Luckily, Korean food is affordable in other places too, so eating out in Korea is totally possible as a student. An average meal in Korean restaurants costs around KRW 7,000, so dining out is no big deal even on a daily basis. Actually, unlike many other countries, groceries are so expensive in Korea, so cooking for one is the costliest thing you can do. In addition, any non-Korean food is considered exotic and is extremely overpriced. To compare, for treating yourself with some pasta, you will be charged KRW 15,000 - almost double the price of Korean noodles. Coffee shops also fall on the pricier side because anything else besides Americano costs around KRW 5,000 which is equal to a meal serving. Considering how much money we have on our budget, you should try to spend no more than KRW 12,000 per day for food to make it through the month. Therefore, it is evident that a monthly allowance of KRW 1,000,000 is enough to cover the most basic expenses of a foreign student in Korea. However, for anything other than that, you should probably consider obtaining a part-time job permit.