Yoo Jung-in (pseudonym, 28), a physical therapist in Seoul, completed her education from elementary school to university in South Chungcheong province before moving to Seoul in March 2019 after graduation. She believed the metropolitan area would provide better opportunities and resources for those with physical therapy degrees. However, her five years in Seoul were characterized by lower-than-expected wages and high living expenses. Her initial monthly salary at her first job was only 1.8 million won, with more than a quarter of it going toward the monthly rent of a cramped 7-square-meter studio apartment in Gwanak-gu, Seoul. She struggled to save 300,000 to 400,000 won a month, likening the thought of paying housing prices to climbing steep stairs one step at a time.
As of 2022, 75% of the top 1000 companies in terms of domestic revenue were located in Seoul, Gyeonggi province, and Incheon, concentrating economic activity and job opportunities in the capital region. The Gross Regional Domestic Product (GRDP) of the capital region’s Gross Regional Domestic Product (GRDP) accounts for 52.5% of the national total, leading to approximately 600,000 young adults relocating from non-capital regions to Seoul over a decade.
Many newcomers, like Yoo, face low wages, poor welfare benefits, and burdensome housing costs, widening the gap among youths. Governments and local authorities have introduced various housing policies to support these youths, but they remain insufficient. The CHUN TAE-IL Foundation proposes a proactive supply of small housing units for low-income youths to help them establish themselves early. In the long run, the foundation suggests enhancing policies supporting youth employment in regional small and medium-sized enterprises.
Yoo landed a job at a hospital in Geumcheon-gu, Seoul, in 2019 but faced ongoing struggles with meager wages and high living costs. Her first job paid a monthly salary of 1.8 million won, with her and a colleague seeing around 100 patients daily during their eight-hour shifts. She hoped to earn more through performance-based bonuses, but they only amounted to 100,000 to 200,000 won monthly. Meanwhile, her monthly rent remained a hefty 500,000 won for her small studio apartment.
She searched for better-paying positions and even temporarily lived with relatives, paying 300,000 won per month in rent to save money. She also skimped on heating during winter. In the past five years, she moved residences three times.
Toward the end of last year, she moved to a different hospital, raising her salary to 34 million won annually. She then secured a 120 million won government loan with a 2% interest rate to afford a 157.5 million won security deposit for a 7-square-meter studio apartment. However, her relief was short-lived as she faced housing issues due to her landlord’s bankruptcy.
Theoretically, young adults could opt for regional small and medium-sized enterprises with relatively affordable housing options outside the capital. However, many choose not to because they lack corporate job opportunities. Additionally, these regions have fewer educational and training opportunities compared to Seoul. The allure of cultural experiences predominantly found in the capital is also strong for the curious youth.
Choi Jae-hee (pseudonym, 29), who works as a beautician in Mapo-gu, Seoul, shares a similar narrative. After graduating from a three-year university in beauty design in South Gyeongsang province, she moved to Seoul four years ago. Working 10 hours a day, five days a week, she earns a monthly income of 2.8 million won. Splitting a 3-bedroom, 18-square-meter apartment in Mapo-gu with two others, they each pay 1 million won for a 20 million won security deposit.
With determination, Choi can achieve her dreams. However, contemplating marriage and childcare poses a significant challenge due to the high cost of living. According to a domestic real estate platform Dabang, the average security deposit for a 2-3 bedroom apartment in Seoul was 236.9 million won last year. Even if she saves 2 million won each month, it would take her a decade to afford the full deposit. Thus, fulfilling personal aspirations may rely on serendipitous encounters like finding a spouse who already owns property.
In the face of the housing struggle, some young individuals ultimately relinquish their dreams and return to their hometowns. Han A-reum (pseudonym, 35), a graduate of a local national university, joined a small company near her hometown in 2015. However, disillusioned after a year and a half, she moved to Seoul in 2018, landing a job as a legal assistant at a patent office. Despite a similar salary of around 2 million won per month, she had little to spare while paying 450,000 won monthly rent for a studio apartment near her workplace. Reflecting on her past, she described it as a hand-to-mouth existence. Eventually, she returned home, finding solace in her parents’ house while working for a nearby small company. She said, “I still believe working in Seoul is better if it weren’t for the housing prices.”
