Seoul was the 16th most expensive city for international employees last year, according to a report by global consulting firm Mercer. Regarding overall quality of life, Seoul ranked 81st out of 241 cities.
Based on a survey of expatriates around the world, the annual Mercer Cost of Living Ranking revealed that the cost of living in Seoul was more expensive than London and Tokyo, which ranked 17th and 19th, respectively. The comprehensive cost of living in Seoul, including housing, transportation, food, and clothing, has risen steeply over the years, surpassing that of many global cities worldwide. Notably, Tokyo ranked third, and Seoul was 11th on the list in 2020, but the depreciation of the yen combined with Seoul’s relative price hikes has positioned Seoul above Tokyo in the short span of three years.
Hong Kong topped the list as the most expensive city, followed by Singapore. “Two of the most expensive cities for international assignees to live in were located in Asia,” Mercer said. Four cities in the top ten ranking were in Switzerland. New York ranked sixth, followed by Copenhagen in ninth place. Lost Angeles (11th), Shanghai (12th) and Beijing (13th) followed suit.
At 16th place, Seoul is now one of the most expensive cities, considering that cities ranked higher on the list, such as Hongkong, Singapore, New York, and Copenhagen, have always been notorious for high living costs. Seoul surpasses Tokyo (19th), London (17th), Dubai (18th), Boston (21st), Chicago (24th), Vienna (25th), Helsinki (34th), and Paris (35th) in terms of living expenses.
The significant increase in Seoul’s cost of living can be partly attributed to price hikes in daily essentials such as butter, one of the most common purchases among expatriates. Butter prices in Seoul surged 26% last year, higher than the global average price rise of 23.8%. This specific example underscores the broader trend of rising living costs in the city.
Mercer also released a quality of life index that assesses cities based on the living conditions for expatriate employees and their families stationed abroad. Seoul ranked 81st out of 241 cities. Mercer explains that the ranking considers various factors, including the cost of consumer goods, economic conditions, housing stability, access to healthcare, the political and social climate, public services and transportation, recreation, social and cultural amenities, and the natural environment.
“Cost is not the only factor that influences how attractive a location is to employees and corporations: an equally important factor is the overall quality of life that a city offers,” Mercer stated.
