Coming to Live in Korea
Moving to Korea
A 1999 arrival who moved from the U.S. to the Osan Air Base area kept a record of his expenses and provided the information to the Retiree Activities Office. If you're thinking of Moving to Korea, check out this man's experience. Although the information is more than five years old, the basic experience remains the same. Prices, of course, are different. And dealing with the Korean bureaucracy may be a less trying experience compared with this retiree's experience as Korea embraces "Globalization" and improves attitudes in dealing with foreigners.
Housing
Living in Seoul can be expensive, particularly if you want to live with Western-style standards and amenities. Down payments in the tens of thousands of dollars, with monthly rent of $1,000 or more is not uncommon for the better places. The civilian housing allowance for the Seoul area is currently in the vicinity of $30,000.
Update 1/5/04: Two commercial real estate sites might help you get an idea of current prices in the Yongsan area. They are http://www.usfk.net and http://www.nicerent.com. These appear to be related, and don't forget that the one identified as usfk.net is a commercial site in no way affiliated with United States Forces Korea.
In other areas, housing costs are less expensive. However, unique requirements could result in a high initial outlay. For example, in Taegu the landlords often expect the rent to be paid in advance for the coming year.
Foreigners are able to buy property in their own name. However, they are expensive, particularly in Seoul, other cities, and locations near U.S. military installations since the reduction and relocation of U.S. forces within Korea has been announced. If you sell the house within three years of purchase, any profit made is taken in the form of taxes and you get only what you paid for the house. Beyond three years, the tax on profit will range from 10% to 30%, depending on the amount of profit.
Utility costs are generally higher than in the U.S.
Jobs in Korea
There are a variety of jobs available working for the U.S. government as an employee or contractor, working for a private U.S. company doing commercial business in Korea, working as a teacher of English at one of the many universities or institutes, and many more.
If you are considering working for the U.S. government, you can check the civilian personnel information for the Air Force and the Army regarding jobs in Korea. Be aware there is a difference in benefits between being hired from the U.S. and being hired locally. Also, the Status of Forces Agreement (SOFA) contains a restriction on hiring if a person is "ordinarily resident." This has been defined by the command Staff Judge Advocate as having lived in Korea without SOFA status for one year and one day. Other definitions of "ordinarily resident" may also be cited, depending on location and agency.
If you are considering working for a contractor, it's best if you have the job arranged before traveling to Korea. This status will affect the benefits you receive, such as housing allowance and cost of living allowance, and may determine your eligibility for return transportation as part of the contract or company benefit.
2-18-07 If you are considering a job as a teacher, or other employment with a Korean firm, you should check the link to the U.S State Department brochure on "Teaching English in Korea" for some precautions provided by the U.S. Embassy Seoul, American Citizen Services, on job scams.
Medical and Dental
1-02-03 Please see Health Matters at the left for the latest information on medical and dental care for retirees in Korea.
Banking Services
Two types of banking service are available at military installations in Korea. The Community Bank is a banking system run under a Department of Defense contract with NationsBank. It is available only to personnel authorized privileges under the SOFA. The USA Federal Credit Union is available to any military ID card holder. Both offer savings and checking accounts, and offer access to funds via ATMs at military installations throughout Korea.
Owning a Car
SOFA status provides the benefit of bringing a car into Korea without having to pay taxes on it. This applies to shipping your own car (either on orders or at your own expense), purchasing a new car from AAFES New Car Sales or from a Korean car dealer, or purchasing a used car from an individual. Without SOFA status, you pay taxes on the purchase (if it has not previously been paid) and a road tax for annual operation. Insurance is available locally, and you may also be able to obtain coverage from a limited number of U.S.-based insurers, USAA being one example. Normally, only one vehicle per family is eligible for SOFA vehicle registration.
Non-SOFA vehicles require a decal for installation access, and only one decal per family is authorized. Recent changes in the vehicle registration process has greatly simplified and speeded up the procedure. Retiree non-SOFA vehicles and SOFA vehicles now are virtually indistinguishable, since both have only a safety inspection decal and installation tab.
Gas is available from Exchange service stations at most military installations. The prices are somewhat higher than in the U.S., but considerably cheaper than buying gas on the economy in Korea.
Car repairs are available both on-base/post and on the economy. However, the availability of car parts for older non-Korean vehicles could be troublesome. If you plan on bringing a non-Korean car to Korea, it should be a recent model, or else you should have a guaranteed source of parts before shipping it. Otherwise, consider waiting and buying a Korean car when you get here.
Ration Control
Military retirees and widows of military (active duty and retirees) are eligible to receive a permanent Ration Control Plate (RCP) for the purchase of duty-free goods if they can show proof of permanent residence in the Republic of Korea (ROK). United States Forces Korea, J1-Data Management (USFK/J1-DM) requires the following documents, including evidence of permanent residence:
- Retirement Order (initial application only)
- Photocopy of ID card
- Proof of extended residence in the ROK, including:
- Passport with any valid visa with an expiration date not less than 90 days from the date of application, OR
- Long-term lease (expiring not less than 90 days from the date of application), OR
- Korean citizenship (copy of ROK ID card), OR
- Proof of house ownership in sponsor’s or spouse’s name, OR
- Proof of employment in the ROK (copy of contract with a firm in the ROK, with termination date not less than 90 days from the date of application), OR
- Other proof of extended residence properly documented and approved by J1-DM.
The RCP expiration will be determined by the expiration date of the offered proof, or two years, whichever is shorter. For the current authorizations and restrictions under Ration Control, see Privileges in the navigation column at the left.
