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Business Expenses in Korea

Corporate Establishment &


Operating Costs plus Daily Living Expenses
Business Expenses in Korea
Contents
Ⅰ. Expenses for the Establishment of a Company 4

Ⅱ. Employment Costs 9

Ⅲ. Logistics Expenses 12

Ⅳ. Public Utilities Charges 16

Ⅴ. Living Expenses 21
Ⅰ. Expenses for the Establishment of
a Company
1. EXPENSES FOR ESTABLISHMENT OF A CORPORATION
1) Establishment of a Corporation in Large Metropolitan Areas
For persons wishing to establish a corporation in larger cities such as Seoul or other large
metropolitan areas with capital of 50 million won, the minimum amount under the Korean
Commercial Code, the mandatory expenses will be as follows: Registration tax, which is 3
times higher than that for smaller metropolitan areas. And, if the corporation is established
in Seoul, a public bond which is 0.1% of the capital must be paid.
Capital (KRW 50 million)
Expenses for the Establishment of a Corporation
won US$1)
Registration Tax (1.2% of the Capital) 600,000 513
Education Tax (20% of the Registration Tax) 120,000 103
Certification of Establishment Fees(Notary's Office) 130,000 111
Search Fee for Company and Corporation Names 36,000 31
Stamp Duty 70,000 60
Public Bonds (for Seoul) 50,000 43
Public Fees for Applications 120,000 103
Fees for Authentication of Seal, Attested Copy of Register, plus submission 100,000 85
Fees for Legal Seals for Representative Director and Stockholders 50,000 43
Basic Consulting Fee to a Judicial Scrivener 190,000 162
Total 1,466,000 1,253
Note: 1)Average Won-Dollar Exchange Rate of First Half, 2004 applied

2) Expenses for Establishing a Corporation outside the Metropolitan Areas


Capital (KRW 50 Million)
Expenses for the Establishment of a Corporation
won US$1)
Registration Tax (0.4 % of the Capital) 200,000 171
Education Tax ( 20% of the Registration Tax) 40,000 34
Fee for the Certification of Establishment (Notary's Office) 130,000 111
Search Fee for Company and Corporation Names 36,000 31
Stamp Duty 70,000 60
Public Fees for Applications 120,000 103
Fees for Authentication of Seal, Attested Copy of Register, plus submission 100,000 85
Fees for Legal Seals for Representative Director and Stockholders 50,000 43
Basic Consulting Fee to a Judicial Scrivener 190,000 162
Total 936,000 800
Note: 1)Average Won-Dollar Exchange Rate of First Half, 2004 applied

2. OFFICE RENT
As of the first half of 2004, office rent per pyeong (3.3 ㎡), per month is 40,000~70,000
won in Seoul and 20,000~30,000 won in provincial cities. For example, for an office
building in Teheran-ro, Seoul, the deposit for the lease contract is 615,000 won per pyeong
and monthly rent is 60,000 won per pyeong. A jeonse deposit would be 396,000 won per

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pyeong. Jeonse is a unique system, which is only found in Korea. With a jeonse contract, a
deposit equal to 50~70% of the market price of the property is paid. During the period of
the contract, no rent is paid and the leaseholder receives the full deposit at the end of the
contract period. The average maintenance fee for shared areas is around 23,000 won per
pyeong per month in Seoul.
<Average Monthly Rent in Major Areas, 1st Quarter, 2004> Unit: won/pyeong
Seoul
Jung-gu / Gangnam Yeouido / Busan Daegu Incheon Daejeon Gwangju Ulsan
Other
Jongro Mapo
70,414 60,031 43,964 37,915 27,397 19,813 23,921 17,894 19,001 20,817
Note: Refer to the won-dollar exchange rate table at the end of chapter five

3. PLANT LOT EXPENSES


The prices of plant lots in major industrial complexes vary considerably, depending upon
the price of the land adjacent to them and complex policies affecting them. The costs range
from 70,000 won per ㎡ per year in Daebul National Industrial Zone in Jeonman to
435,000 won per ㎡ per year in Asan National Industrial Complex in Chungnam. The
average is about 100,000 won per ㎡ per year. The cost for plant lots in the Industrial Zone
is 20~50% lower than for those in the Support Zone.

The following are exclusively for foreign companies and the lots are rented rather than
sold: Pyeongdong Foreign Industrial Complex in Gwangju, Daebul Foreign Industrial
Complex in Jeonnam, Ochang Foreign Industrial Complex in Chungbuk and Gumi
Foreign Industrial Complex.
Unit:1,000 won /㎡
Region Complex Name Industrial Facility Zone Support Facility Zone
Gwangju High-tech Science Industrial Complex 122 204
Gwangju (Research Lots: 90)
Pyeongdong Foreign-exclusive Industrial Complex Rent (40/year) -
Gangwon Bukpyeong National Industrial Complex 81
(Additional 10% of the land price for deposit for removal)
Poseung Area: 430~435
Chungnam Asan National Industrial Complex Godae Area: 328
Bugok Area: 338
Chungbuk Ochang Foreign-exclusive Industrial Complex Rent: 1.3 / year
Jeonbuk Gunjang National Industrial Complex 336
Daebul National Industrial Complex 70 127
Jeonnam Rent: 0.3 / year
Daebul Foreign-exclusive Industrial Complex Deposit for Rental: 0.3
107 183
Gyeongnam Jinsa Foreign-exclusive Industrial Complex Rent: 1 / year
Anjeong National Industrial Complex 120
Gumi National Industrial Complex 118
Gyeongbuk
Gumi Foreign-exclusive Industrial Complex Rent (1.1/year) + Deposit for Rental
Source: Korea Digital Industrial Complex (www.esandan.net)
Note: Refer to the won-dollar exchange rate table at the end of chapter five
4. TAXES
1) Income Taxes
▶Corporate Income Tax
The taxable income under the Corporate Income Tax Act (CITA) is as follows:

Net income in accordance with financial accounting standards


+ additional amounts of earnings for tax purposes
– additional amounts of loss for tax purposes
+ donations in excess of the maximum deductible amount
– tax loss carried forward
– non-taxable incomes
– deductible incomes
= taxable income
The corporate income tax rates effective as of 2004 and 2005 are as follows:
Taxable amount 2004 2005
100 million won or less 15% of the taxable income 13% of the taxable income
15 million won + 27% of the amount 13 million won+ 25% of the amount
100 million won or more
in excess of 100 million won in excess of 100 million won
Note: Refer to the won-dollar exchange rate table at the end of chapter five

Any foreign-invested company eligible for tax relief is eligible for corporate income tax relief
as follows:
First, if the business is an industrial support service, high-tech or any of those businesses
designated for the foreign investment zone, it is exempt from 100% of the corporate
income tax until 2004 and this is then reduced to 50% for 3 years thereafter. If tax relief is
applied for in 2005, the company is fully exempt from corporate income tax for the first 5
years and this is reduced to 50% for a subsequent 2 years. For example, the amount of
corporate income tax relief granted for income generated by a business recognized as
high-tech that starts operation in 2005 is computed as follows:
<Example of Corporate Income Tax Relief> Unit: won

Taxable Amount of Corporate Cumulative


Year Amount of Relief
Amount Income Tax Totals of Relief
2005 100 million 13 million 13 million (100%) 13 million
2006 200 million 13 million + 25 million 38 million (100%) 51 million
2007 300 million 13 million + 50 million 63 million (100%) 114 million
2008 400 million 13 million + 75 million 88 million (100%) 202 million
2009 500 million 13 million + 100 million 113 million (100%) 315 million
2010 600 million 13 million + 125 million 69 million (50%) 384 million
2011 700 million 13 million + 150 million 81.5 million (50%) 465.5 million
Note: Refer to the won-dollar exchange rate table at the end of chapter five

Second, any foreign-invested company occupying free trade zones, free economic zones
and the Jeju Investment Promotion Zone and any foreign developer in the free economic
zones and the Jeju Investment Promotion Zone are eligible for 100% corporate income tax
exemption for the first 3 years and a 50% reduction for 2 years thereafter.

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Meanwhile, with respect to the dividends paid to foreign investors by any foreign-invested
company engaged in a line of business eligible for tax relief, the income tax on the
dividends generated during any relief period is either exempted or reduced at the same rate
as the corporate income tax relief. In other words, during any period in which the
corporate income tax is fully exempted, the personal income tax on dividends is fully
exempted as well. Likewise, during any period in which the corporate income tax is
reduced by 50%, the personal income tax on dividends is also reduced by 50%.

Further, where any advanced technologies essential to strengthen the international


competitiveness of a domestic industry are imported by contract, the corporate and
personal income taxes imposed on the payments for the technologies paid to the foreign
individual, corporation or economic cooperative body are fully exempt for five years from
the date of the first payment scheduled under the contract.

▶Personal Income Tax


4 Progressive personal income tax rates are applicable. Personal income taxes are imposed
comprehensively on income from interest, dividends, real estate, business and earnings,
but separately on severance benefits and capital gains.

Taxable Income Tax Rates


10 million won or less 9% of the taxable income
Over 10 million won 900 thousand won + 18% of the amount in excess of 10 million won
Over 40 million won 6.3 million won + 27% of the amount in excess of 40 million won
Over 80 million won 17.1 million won + 36% of the amount in excess of 80 million won
Note: Refer to the won-dollar exchange rate table at the end of chapter five

Similar to corporate income tax relief, personal income tax relief is available for
employees of the eligible foreign-invested companies. In addition, certain foreign
specialists who begin employment before December 31, 2006, are eligible for full
exemption from personal income tax for their first 5 years in Korea. Furthermore, the
income of a foreign specialist is tax exempt if s/he provides services in Korea for a Korean
national under a technology transfer contract under the Foreign Investment Promotion Act
(FIPA).

2) Taxes on Real Estate


Any foreign-invested company eligible for income tax relief is also eligible for tax relief
with respect to property tax, acquisition tax, comprehensive land tax and registration tax
imposed on real estate.

▶Acquisition and Registration Taxes


The taxes imposed when a property is purchased include acquisition tax (2% of the
purchase price), registration tax (3% of the purchase price) and value added tax (10% of
the purchase price of the building, deductible or refundable for businesses) as well as other
taxes such as special taxes for rural development (10% of the acquisition tax) and local
education tax (20% of the registration tax). The abovementioned taxes also increase,
depending on whether the property is located in a congestion restricted zone or not. In
addition, a housing bond must be purchased (exempted or reduced for registered foreign-
invested companies in proportion to the ratio of foreign investment).
< Taxes imposed on purchase of 100 million won building > Unit: won

Outside Congestion Congestion


Tax Tax Rate Relief
Restricted Zones Restricted Zone
Acquisition tax 2% of the purchase price 2,000,000 6,000,000 Full exemption
Special tax for
10% of the acquisition tax 200,000 600,000 -
rural development
Value added tax 10% of the purchase price Deductible Deductible Deductible
Registration tax 3% of the purchase price 3,000,000 9,000,000 Full exemption
Education tax 20% of the registration tax 600,000 1,800,000 -
Total 5,800,000 17,400,000 800,000/ 2,400,000
Note: Refer to the won-dollar exchange rate table at the end of chapter five

▶Taxes on Purchasing Property


Property tax (0.3% to 7% of the price of the building), comprehensive land tax (0.2% to
5% of the price of the land), local education tax (20% of the property tax and
comprehensive land tax) and a special tax for rural development (10% or 15% of the
comprehensive land tax) are levied when a property is purchased. Where a non-urban
factory building is constructed or expanded within the Metropolitan Congestion Control
Region, the property tax is five times as much (0.3%×5= 1.5%).

▶Taxes on Sale of Property


Value-added tax (10% of the sale price of the building) is levied at all times together with
capital gains tax (9% to 36%) and resident tax (10% of the capital gains tax) for
individuals, or corporate income tax (15% and 27%, or 13% and 25% starting from 2005)
and resident tax (10% of the corporate income tax) for corporations.

3) Taxes on Import of Capital Goods


Customs duty, special excise tax and value-added tax are exempted on capital goods
brought in by a foreign-invested company as a means of outbound or domestic payment
and contributed by a foreign investor, or the capital goods brought in by a foreign-invested
company as a contribution to capital.

Tax Relief Requirements


- Industrial support service business
- High-tech business
- Designated business in foreign investment zones
100% for - Occupant of free trade zone
Customs duty 3 years - Occupant of free economic zone
- Foreign-invested developer in free economic zones and the
Jeju Investment Promotion Zone
- Occupant of Jeju Advanced Science & Technology Complex,
Jeju Investment Promotion Zone or Jeju Free Trade Zone

Special excise - Industrial support service business


100% for
tax and value - High-tech business
3 years
added tax - Designated business in foreign investment zones

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Ⅱ. Employment Costs
1. WAGES
The average monthly wages for factory workers, office workers and other workers are
as follows:
Unit: won

Line of Business Factory Office and Other

Meat, fruit, vegetable, fat and oil processing 965,371 1,488,634


Dairy and ice cream manufacturing 1,861,967 2,057,879
Processed grain products, starch and feed manufacturing 1,665,807 2,113,892
Miscellaneous food manufacturing 1,329,807 1,782,701
Beverage manufacturing 1,861,690 2,057,783
Spinning 1,252,731 1,673,163
Fabric and weaving 1,319,168 1,750,546
Knitting and crocheting 1,276,098 1,776,107
Dyeing and textile processing 1,395,007 1,705,227
Other textile product manufacturing 1,239,837 1,642,948
Garment manufacture 1,050,573 1,747,389
Fur processing and fur product manufacturing 1,386,455 1,906,178
Leather garment manufacturing 1,515,044 1,979,654
Bags, purses and other leather article manufacturing 1,264,923 1,840,833
Shoe manufacturing 1,078,100 1,658,146
Sawmill and lumber processing 1,269,197 1,408,655
Wood, cork and carved product manufacturing 1,345,334 1,520,494
Pulp, paper and cardboard manufacturing 2,334,080 2,456,156
Corrugated cardboard, paper containers and other paper product manufacturing 1,422,210 1,721,057
Publishing 2,018,942 1,790,010
Printing and other related business 1,512,350 1,580,958
Reproduction of recorded materials 1,554,984 1,923,370
Refined petroleum product manufacturing 3,938,941 2,722,173
Basic chemical manufacturing 2,650,136 2,655,308
Pharmaceutical manufacturing 1,852,401 2,208,922
Other chemical manufacturing 1,699,111 2,036,512
Synthetic fiber manufacturing 2,703,751 2,766,125
Rubber product manufacturing 1,660,279 1,773,280
Plastic product manufacturing 1,402,431 1,697,323
Glass and glass product manufacturing 1,927,213 2,419,244
Ceramic manufacturing 1,280,897 2,288,541
Cement, lime, plaster and cement, lime and plaster product manufacturing 1,793,090 1,836,790
Source: Mining and Manufacturing Statistics Report of 2003, National Statistics Office
Note: Refer to the won-dollar exchange rate table at the end of chapter five



Unit: won
Line of Business Factory Office and Other
Other non-metal mineral product manufacturing 1,549,180 1,716,251
Basic iron and steel manufacturing 2,394,756 2,185,922
Basic precious and non ferrous metal manufacturing 1,893,490 2,117,436
Metal casting 1,661,223 1,836,768
Structural metal products, tanks and steam generator manufacturing 1,695,768 1,983,238
Other fabricated metal product manufacturing and metal treatment 1,460,467 1,650,130
General purpose machinery manufacturing 1,646,042 1,900,875
Machine tool manufacturing 1,750,863 1,987,930
Other special purpose machinery manufacturing 1,731,967 1,892,281
Weapons and ammunition manufacturing 1,416,667 1,351,852
Other home appliance manufacturing 1,660,643 2,233,923
Computer and office equipment manufacturing 1,766,184 2,583,148
Electric motor, generator and transformer manufacturing 1,444,689 1,907,291
Power distribution and electric control device manufacturing 1,500,672 1,810,933
Insulated wire and cable manufacturing 1,652,745 2,047,792
Storage battery and primary battery manufacturing 2,070,056 1,995,922
Light bulb and lighting equipment manufacturing 1,274,601 1,596,119
Other electrical equipment manufacturing 1,288,159 1,719,155
Semiconductor and other electronic component manufacturing 1,891,618 2,526,208
Telecommunication devices and broadcasting equipment manufacturing 1,569,859 2,037,426
Broadcasting receiver and other AV device manufacturing 1,389,915 2,019,975
Medical device manufacturing 1,272,577 1,652,737
Measuring, testing, navigation and other precision instrument manufacturing 1,488,856 1,718,628
Spectacle, camera and other optical device manufacturing 1,228,256 1,563,993
Clock and clock part manufacturing 1,407,889 1,680,571
Automobile engine and automobile manufacturing 2,743,072 3,007,059
Automobile body and trailer manufacturing 1,582,018 1,803,163
Automobile part manufacturing 1,683,306 1,871,372
Shipbuilding 2,760,994 2,342,244
Railway equipment manufacturing 2,372,320 2,192,442
Aircraft, spacecraft and parts manufacture 2,976,257 2,823,219
Other transport equipment manufacturing 1,433,096 2,003,426
Furniture manufacturing 1,312,772 1,529,414

Source: Mining and Manufacturing Statistics Report of 2003, National Statistics Office
Note: Refer to the won-dollar exchange rate table at the end of chapter five

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2. MANDATORY SEVERANCE PAY
Mandatory severance pay is a benefit guaranteed at all times by law and must be no less
than the average wage for 30 days for each consecutive year of service. If the employment
period is less than one year, the computation is as follows:

severance pay = average wage×30 days×(number of days of consecutive service ÷ 365)

The average wage is calculated by averaging the amount paid over the three months prior
to the date of resignation or retirement, divided by the total number of days in the three
months. If the severance pay calculated in accordance with company regulations is below
the mandatory severance payment, the difference must be paid. In addition, any transfers
made to the national pension fund in advance, from the severance pay, should be deducted
from the final severance payment.

<Example>
If employment commenced on Feb. 1, 1995 and the date of resignation or retirement was
May 15, 2002, and the average wage was KRW 55,000, the length of service is 7 years, 3
months and 15 days + 1 day. In this case:
7 years×55,000 won×30 days = 11,550,000 won
3 months×55,000 won×30 days / 12 months = 412,500 won
16 days×55,000 won×30 days / 365 days =72,329 won
Therefore, the total amount of severance pay is 12,034,829 won

3. INSURANCE PREMIUMS
Employment Workmen’s National Health National Pension
Compensation Total
Insurance Insurance Insurance Scheme
Any corporation, pro-
fessional business
establishment and sole
Mandatory Any premises Any premises Any premises proprietor employing
applicable with one full-time with one full-time with one full-time one full-time employee
employee or or more, and any
premises employee or employee or general business
more more more establishment or sole
proprietor employing
five full-time
employees or more
2.105% of the
Paid by the 0.45% of the - standard 4.5% of the standard
monthly 7.055%
employee total wage monthly
Premium

remuneration remuneration
2.105% of the 4.5% of the standard
Paid by the 0.7% to 1.3% of 0.4% to
standard monthly 7.705%~
the total 31.7% of the
employer wage monthly remuneration 39.605%
total wage
remuneration
4.21% of the
Total 1.15% to 1.75% 0.4% to 31.7% standard 9% of the standard 14.76%~
premiums of the total of the total monthly monthly 46.66%
wage wage remuneration remuneration
Annually; lump Annually; lump
sum in advance sum in advance On the 10th of On the 10th of
Payment each month
or or each month
4installments 4installments
Ⅲ. Logistics Expenses
1. LAND TRANSPORTATION
1) By Rail

<Freight Tariff for Packages by Rail>


Unit: won
Quantity Up to 200km Up to 300km Up to 400km Over 401km
Less than10㎏ 900 1,200 1,600 1,900
15㎏ 1,200 1,600 2,100 2,350
20㎏ 1,500 1,950 2,500 2,750
25㎏ 1,800 2,300 2,850 3,200
30㎏ 2,100 2,650 3,200 3,600
35㎏ 2,400 3,000 3,600 4,000
40㎏ 2,750 3,300 4,000 4,450
45㎏ 3,050 3,700 4,350 4,850
50㎏ 3,350 4,000 4,750 5,250
55㎏ 3,650 4,350 5,100 5,700
60㎏ 3,950 4,700 5,500 6,100
65㎏ 4,300 5,050 5,850 6,500
70㎏ 4,600 5,400 6,250 6,900
75㎏ 4,900 5,750 6,600 7,350
80㎏ 5,200 6,100 7,000 7,750
85㎏ 5,500 6,450 7,350 8,200
90㎏ 5,800 6,800 7,750 8,600
95㎏ 6,100 7,100 8,100 9,000
100㎏ 6,400 7,450 8,500 9,400
Source: Office of Korea National Railroad
Note: Refer to the won-dollar exchange rate table at the end of chapter five

2) By Road

<Freight Tariff for General Trucking> Unit: won

Up to Up to Up to Up to Up to every 0.5ton
Distance
2 Tons 5 Tons 7 Tons 10 Tons 12 Tons over 12 Tons
Up to 10km 26,130 38,550 50,380 70,430 80,990 1,920
Up to 30km 43,060 63,210 81,840 108,340 122,040 2,870
Up to 50km 56,400 82,010 106,430 140,350 157,700 3,720
Up to 70km 62,380 92,070 122,150 159,040 178,060 4,120
Up to 100km 70,800 106,500 142,740 182,850 203,900 4,840
Up to 200km 108,310 145,580 185,160 236,280 266,150 6,310
Up to 350km 148,920 196,170 240,790 295,300 330,470 7,880
Up to 460km 180,520 237,830 287,510 350,020 389,500 9,320
Up to 510km 193,150 254,510 306,210 373,850 413,100 9,890
every 50km over 510km 9,920 15,420 18,020 20,930 22,190 540
Source: Seoul Freight Forwarders Associatio
Note: Autonomic Fare System since Jan. 1, 1998 (Transportation costs differ depending on the company since Jan. 1, 1998)
Refer to the won-dollar exchange rate table at the end of chapter five

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3) Containers
< Freight Tariffs for Containers (Return) > Unit: won
40FT 20FT
Incheon - Seoul 176,000 158,000
Incheon - Busan 898,000 808,000
Incheon - Daegu 616,000 554,000
Incheon - Gwangju 629,000 566,000
Incheon - Cheonan 363,000 328,000
Incheon - Daejeon 492,000 443,000
Incheon - Chuncheon 439,000 395,000
Busan - Seoul 863,000 777,000
Busan - Daegu 393,000 354,000
Busan - Gwangju 537,000 483,000
Busan - Daejeon 548,000 493,000
Busan - Cheonan 616,000 537,000
Busan - Chuncheon 1,004,000 904,000
Source: Korea International Trade Association
Note: Refer to the won-dollar exchange rate table at the end of chapter five

2. SEA TRANSPORTATION
<Domestic Coastal Transportation Tariffs> Unit: won
Routes Size Tariff
20 FT 249,000
Busan → Incheon Container CY/ CY
40 FT 298,000
20 FT 196,000
Incheon → Busan Container CY/ CY
40 FT 245,000
20 FT 125,000
Busan → Gwangyang Container CY/ CY
40 FT 185,000
20 FT 125,000
Gwangyang → Busan Container CY/ CY
40 FT 185,000
20 FT 190,000
Gwangyang → Incheon Container CY/ CY
40 FT 270,000
20 FT 170,000
Incheon → Gwangyang Container CY/ CY
40 FT 210,000
Source: Coastal Shipping Tariffs, Hanjin Transportation Co., Ltd.
Note: V.A.T. not included
Refer to the won-dollar exchange rate table at the end of chapter five
<Overseas Freight Tariffs (Departing from Busan)> Unit: US$
Destination 20FT 40FT
New York 3,490 4,650
Los Angeles 1,995 2,515
Rotterdam 1,525 3,050
Hamburg 1,525 3,050
Fukuoka 650 800
Kobe 550 700
Yokohama 550 700
Shanghai 250 450
Dalian 250 450
Hong Kong 250 550
Sydney 1,050 2,100
Singapore 600 1,200
Dubai 1,300 2,600
Source: Logispia (www.logispia.net): KL-Net’s portal site specializing in logistics
Note: The above tariffs are approximations only. Because tariffs vary according to shipping companies,
type of freight and quantities

3. AIR TRANSPORTATION EXPENSES


<Outbound Air Freight Tariffs (Departing from Incheon International Airport)> Unit: US$/kg
Destination ~45㎏ 45㎏+ 100㎏+ 300㎏+ 500㎏+

New York 49.4 4.5 4.15 4.0 4.0


San Francisco 49.4 3.8 3.5 3.4 3.3
London 64.9 7.6 6.6 6.1 5.1
Paris 64.9 7.6 6.6 6.1 5.1
Frankfurt 64.9 7.6 6.6 6.1 5.1
Tokyo 29.0 1.4 - - -
Osaka 29.0 1.2 - - -
Shanghai 32.1 2.9 2.7 2.5 -
Sydney 52.0 6.7 6.2 5.3 -
Singapore 32.1 4.3 4.0 3.4 -
Dubai 64.9 7.9 - - -
Note: The above tariffs are approximations only. Tariffs vary according to airline companies,
discount rates for specific items, and type of goods

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4. SPECIAL DELIVERY TARIFFS
A special delivery service is classified as same day delivery and next day delivery.
Approximations are as follows:

<Same Day Delivery Service> Unit: won


In the same area To another area Remarks
Within Seoul 8,000 10,000
- Standard Freight (Weight: within 30kg, Size: The total of
Outside Seoul length, width, and height of the box within 160cm)
(Seoul Metro- 12,000 - Same terms apply to cases for more than one items and
politan Area)1) other extra charge for both same day delivery and next
day delivery

Source: Express Business Headquarters, Hanjin Co., Ltd.


Note: 1)Outside Seoul means Seoul Metropolitan Area, including Bundang, Pyeongchon, Ilsan, Gwangmyeong, etc.
Refer to the won-dollar exchange rate table at the end of chapter five

<Next Day Delivery Service> Unit: won


Light-weight Small parcels Medium parcels Large parcels Extra Large parcels
Classification
Type S Type A Type B Type C Type D

Weight 1kg or less 10kg or less 20kg or less 30kg or less 40kg or less
Size
60cm or less 120cm or less 140cm or less 160cm or less 200cm or less
(length+width+height)
Within the
5,000 6,000 7,000 8,000 15,000
same area
To another area 6,000 7,000 8,000 9,000 20,000
Jeju Island 8,000 9,000 10,000 11,000 25,000
Source: Express Business Headquarter, Hanjin Co., Ltd.
Note: To islands: 4,500 won is added to the basic rate (Delivery service not available for Type D)
Areas: Seoul Metropolitan area, Chungcheong-do, Gangwon-do, Yeongnam, Honam and Jeju Island
Refer to the won-dollar exchange rate table at the end of chapter five

In the above table, if the weight of a parcel is heavier than its size limit, the weight applies
for billing. Likewise, if size is bigger than its weight limit, size applies.
Ⅳ. Public Utilities Charges
1. ELECTRICITY
1) Industrial Power Contracted for less than 300 kW
Unit: won
Power Consumption (won/kWh)
Basic Charge
Classification Summer Spring, Autumn Winter
(won/kW)
(July, August) (April~June, September) (October~March)

Low Voltage Power 4,150 63.8 48.1 51.9


Option 1 4,400 63.5 48.0 51.4
High
Voltage A Option 2 5,060 60.1 44.6 48.2
Option 1 4,060 62.6 47.2 50.6
High
Voltage B Option 2 4,690 59.4 43.9 47.5

Source: KEPCO (Korea Electric Power Corporation, www.kepco.co.kr)


Note: High Voltage A: Standard Voltage Range between 3,300V and 66,000V / High Voltage B: Standard Voltage 154,000V
Option 1: Lower basic charge but higher consumption charge. Suitable for facilities using power for less than
200 hours per month
Option 2: Suitable for facilities using power for 200 hours to 500 hours per month
Refer to the won-dollar exchange rate table at the end of chapter five

2) Industrial Power Contracted for between 300kW and 1,000 kW


Unit: won
Power Consumption (won/kWh)
Basic
Classification Charge Spring, Autumn
Time Summer Winter
(won/kW) (July, August) June April, May, (October~ March)
September
Midnight 32.5 32.5 32.5 32.5
Option1 4,400 Daytime 88.2 60.6 50.3 56.8
High Evening 60.5 50.3 60.6 68.1
Voltage A Midnight 29.2 29.2 29.2 29.2
Option2 5,070 Day time 84.9 57.2 47.0 53.4
Evening 57.2 47.0 57.2 64.8
Midnight 32.2 32.2 32.2 32.2
Option1 4,060 Day time 85.4 58.7 48.7 54.9
High Evening 58.7 48.7 58.7 65.9
Voltage B Midnight 28.9 28.9 28.9 28.9
Option2 4,690 Day time 82.1 55.5 45.5 51.8
Evening 55.5 45.5 55.5 62.6
Note: Midnight: 22:00-08:00, Daytime: 08:00-18:00, Evening: 18:00-22:00
Refer to the won-dollar exchange rate table at the end of chapter five

16 17
3) Industrial Power Contracted for over 1,000 kW
Unit: won
Power Consumption (won/kWh)
Basic Charge
Classification Electrical Load Summer Spring, Autumn Winter
(won/kW) (April~June,
Time Zone (July, August) September) (October~March)

Light 32.5 32.5 32.5


Option 1 4,400 Medium 69.2 50.8 58.6
High Maximum 118.6 69.2 81.3
Voltage A Light 29.1 29.1 29.1
Option 2 5,070 Medium 65.9 47.6 55.2
Maximum 115.2 65.9 7.9
Light 32.2 32.2 32.2
Option 1 4,060 Medium 68.8 50.5 58.2
Maximum 118.2 68.8 80.7
Light 29.8 29.8 29.8
High
Voltage B Option 2 4,500 Medium 67.2 48.6 56.2
Maximum 117.9 67.2 79.3
Light 28.4 28.4 28.4
Option 3 4,990 Medium 64.5 46.6 54.1
Maximum 113.1 64.5 76.1
Light 31.8 31.8 31.8
Option 1 4,020 Medium 68.5 50.2 57.7
Maximum 117.6 68.5 80.3
Light 30.2 30.2 30.2
High
Option 2 4,590 Medium 68.4 49.5 57.1
Voltage C
Maximum 117.5 68.4 79.8
Light 28.0 28.0 28.0
Option 3 4,940 Medium 64.2 46.3 53.6
Maximum 112.5 64.2 75.7

Note: High Voltage C: Standard Voltage of 345,000V and above


Refer to the won-dollar exchange rate table at the end of chapter five

<Reference: Time Zone and Electrical Load>


Load Spring, Summer, Autumn Winter
Light 22:00~08:00 22:00~08:00
08:00~10:00, 12:00~14:00 08:00~16:00
Medium
17:00~22:00 20:00~22:00
Maximum 10:00~12:00, 14:00~17:00 16:00~20:00
2. WATER RATES
<Water Rates by Region > Unit: won/㎥
Seoul Busan Daegu Incheon Gwangju Daejeon Ulsan Provinces (Average)
506 592 440.8 511.3 501.9 406.9 657.4 517.9
Source: Statistics on 2002 Water Supply, Dec. 2003, Ministry of Environment
Note: Refer to the won-dollar exchange rate table at the end of chapter five

3. WASTE MANAGEMENT EXPENSES

< Unit Cost for Waste Management according to Categories > Unit: won/ton
Unit Price for Unit Price for
Category of Wastes Waste
Management
Category of Wastes Waste
Management

Waste oils 271,000 Waste halogenated organic solvents 526,000


Waste non-alogenated 271,000 Waste synthetic resins and rubbers 271,000
organic solvents
Waste agrichemical, waste toxic
Wastes from paints, lacquers 305,000 526,000
substance, asbestos(dusts and fibers)
Waste acidic or
297,000 Slag (designated waste) 146,000
basic solutions, Waste alkali
Other wastes from General wastes from business
266,000 67,000
business premises for incineration premises for burial
residues resulting from
Other wastes designated for burial 98,000 205,000
the treatment of animal waxes
residues resulting from
149,000 Waste lubricant oils 45,000
the treatment of vegetable waxes
Waste batteries 13,000 Waste drum 200
Glass waste 21,000 Waste cable 21,000
Sawdust out of 21,000 Waste pneumatic tires 65,000
Wood waste and scrap
Waste solid plastic container 32,000 Waste synthetic resin 31,000
Source: Ministry of Environment, www.me.go.kr
Note: Refer to the won-dollar exchange rate table at the end of chapter five

In addition, the unit cost for waste management for construction wastes is 23,000 won/ton
and for infectious waste is 773,000 won/ton

4. COMMUNICATION EXPENSES

1) Postage
▶Regular mail Unit: won

Size Weight Regular Post Express Post


Up to 5g 160 240
Standard Over 5g up to 25g 190 280
Over 25g up to 50g 210 310
Up to 50g 280 420
Non-Standard
every 50g thereafter 90 130
Source: Ministry of Information and Communication
Note: Refer to the won-dollar exchange rate table at the end of chapter five

18 19
▶Parcel Post

<At Post Offices> Unit: won

Destination 2kg 5kg 10kg 20kg 30kg


Same Zone 1,500 2,000 2,500 3,500 4,500
Regular Parcel
Different Zone 2,000 2,500 3,000 4,000 5,000
Same Zone 2,500 3,000 3,500 4,500 5,500
Express Parcel
Different Zone 3,000 3,500 4,000 5,000 6,000
Note: Refer to the won-dollar exchange rate table at the end of chapter five

<Additional Charges>
Type of Parcel Additional Charge Remarks
Value up to 1 million won 50% added to the basic postage
Insured for 100,000
Insured Parcels up to 2 million won 80% added to the basic postage won and over
up to 3 million won 100% added to the basic postage

Includes fragile, Parcels must be picked


Fragile Parcels 50% added to the basic postage
chilled and frozen goods up at point of origin
Note: Refer to the won-dollar exchange rate table at the end of chapter five

<Discount Rates for Parcels>


Parcels received at 5% 10% 15% 20%

Separate 10 items 50 items 100 items


Postage - or more or more or more
Payment
Post Offices
Subsequent 100 items 250 items 500 items
Postage -
or more or more or more
Payment
Separate
50 items
Postage 2~5 items 6~9 items 10~49 items
or more
Collected from Payment
place of Subsequent
business Postage 10 items 50 items 100 items 500 items
Payment or more or more or more or more

2) Telephone Charges
▶Wired Telephone
The connection fee is 60,000 won, including V.A.T. and the basic monthly charge is 5,200
won, not including V.A.T.
<Local Calls>
-Regular Time Zone (08:00 21:00 weekdays & Saturdays): 39 won for every 180 seconds
-Discount Time Zone (Public Holidays and 21:00 ~ 24:00, 00:00 ~ 08:00 weekdays &
Saturdays) 39 won for every 258 seconds
< Long Distance Calls > Unit: won

Billing Time Zone Zone 1 (Billing Distance Within 30km) Zone 2 (Billing Distance Outside of 30km)
Regular 39/180 seconds 14.5 won/10 seconds
Discount 39/200 seconds 13.1 won/10 seconds
Special Discount 39/258 seconds 10.2 won/10 seconds
Source: KT (tel.up2.co.kr)
Note: Refer to the won-dollar exchange rate table at the end of chapter five

▶Internet Access

<High-speed Internet (Regular)> Unit: won

3 year contract 2 year contract 1 year contract


No contract Remarks
(15% discount) (10% discount) (5% discount)

Monthly Fee 25,500 27,000 28,500 30,000 ADSL, VDSL etc.


Modem Rental per month 3,000 3,000 3,000 10,000 Free of charge after 3 years
Installation Fee 30,000 (At the time of connection), 10,000 (To transfer the connection)
Source: KT (megapass.up2.co.kr)
Note: Megapass Lite
Refer to the won-dollar exchange rate table at the end of chapter five

▶Mobile Phones
Different companies charge differently. The figures below are approximate for using a
mobile for more than 360 minutes per month.
Unit: won
Billing System Basic Monthly Rate Call Charge Included in Basic Rate
Premium 52,000 17 / 11 / 9 380 minutes of local calls

380 minutes of local calls, 400KB of


Premium Plus 55,000 17 / 11 / 9
data & 30 text messages per month
Source: SK Telecom (www.speed011.co.kr)
Note: Refer to the won-dollar exchange rate table at the end of chapter five

5. GAS RATES
Unit: won/㎥

Heating for General Use Air-conditioning Industrial


Region
Business Use Business Use 1 Business Use 2 (May-September) Use
Seoul 477.01 458.03 414.41 259.54 365.99
Gyeonggido 483.27 464.73 420.67 270.16 380.92
Busan 533.42 470.82 425.75 317.98 389.62
Daegu 524.13 461.53 463.63 314.08 381.22
Changwon 525.22 462.77 411.18 312.22 423.63
Gwangju 515.06 477.61 438.79 311.38 388.04
Yeosu 561.59 494.99 494.19 301.87 416.73
Daejeon 523.92 478.04 461.32 303.74 389.95
Wonju 584.82 509.65 507.65 380.95 484.05
Source: Korea City Gas Association (www.citygas.or.kr)
Note: Refer to the won-dollar exchange rate table at the end of chapter five

20 21
Ⅴ. Living Expenses
1. HOUSING
About 60% of foreigners in Korea live in Itaewon, Hannam-dong, and Dongbuichon-
dong, in Yongsan-gu, Seoul. These areas seem to be preferred because they are near the
city center and create a comfortable living environment. Quite a few high-ranking Korean
Government officials and foreign ambassadors also live in these areas. In Itaewon there
are apartments and villas as well as luxurious residences with gardens. It is also adjacent to
the Yongsan American Army base. Other residential areas for foreigners include
Seongbuk-dong, Pyeongchang-dong and Yeonhi-dong. Seongbuk-dong is very near
Mount Bukhan and has picturesque views and clear air. Pyeongchang-dong, is within
walking distance of Mount Bukhan and also boasts superb views and a convenient living
environment. Yeonhi-dong benefits from being near schools for foreign children, such as
Seoul Foreign School and the British and Chinese schools. Most foreigners seem to prefer
housing in the order of apartments, houses and villas.

1) Rents in the Seoul Area

<Apartments> Unit: 10,000 won


No. of (Jeonse)
Size Monthly Rent
Bedrooms/Bathrooms Property Deposit

22 pyeong 3/1 16,000~17,000 150~195


31 pyeong 3/2 24,000~26,000 200~250
Itaewon-dong
48 pyeong 4/2 38,000~40,000 300~350
53 pyeong 4/2 40,000~42,000 330~380
25 pyeong 3/1 15,000~16,000 100~120
Ichon-dong 33 pyeong 3/2 23,000~26,000 170~200
40 pyeong 4/2 29,000~33,000 240~260
21 pyeong 2/1 11,500~15,000 120~130
28 pyeong 2/1 17,500~21,000 150~180
Hannam-dong
33 pyeong 3/2 23,000~26,000 180~230
42 pyeong 3/2 28,000~35,000 250~300
25 pyeong 3/1 19,000~20,000 100~150
Samseong-dong 33 pyeong 3/1 28,000~30,000 170~200
44 pyeong 4/2 34,000~39,000 250~300
Source: Real estate related websites
Note: In the case of monthly rent, sometimes a deposit is required or, alternatively, a deposit can be paid in order to decrease the
monthly rent
Refer to the won-dollar exchange rate table at the end of chapter five
<Villas> Unit: 10,000 won

Size No. of Bedrooms/Bathrooms Monthly Rent


38 pyeong 3/1 190
50 pyeong 3/2 320
Itaewon-dong
80 pyeong 4/2 600
97 pyeong 4/2 900
34 pyeong 3/2 230
41 pyeong 3/2 300
Hannam-dong
62 pyeong 4/2 450
82 pyeong 4/2 800
43 pyeong 3/2 250
Seongbuk-dong 50 pyeong 3/2 450
85 pyeong 3/3 750
113 pyeong 4/3 1,200
39 pyeong 3/2 100
Pyeongchang-dong
71 pyeong 4/2 600
108 pyeong 5/5 850
25 pyeong 3/1 100
Samseong-dong 50 pyeong 4/2 300
95 pyeong 5/2 600
Note: Refer to the won-dollar exchange rate table at the end of chapter five

<Houses > Unit: 10,000 won

Size No. of Bedrooms/Bathrooms Monthly Rent

50 pyeong 4/2 500


Itaewon-dong
103 pyeong 4/4 800
93 pyeong 5/2 800
Hannam-dong
125 pyeong 7/3 900
70 pyeong 4/3 700
Pyeongchang-dong
100 pyeong 4/3 1,100
62 pyeong 5/1 400
Samseong-dong
140 pyeong 5/2 800
60 pyeong 4/2 500
Yeonhi-dong
90 pyeong 5/4 800
Note: Refer to the won-dollar exchange rate table at the end of chapter five

22 23
2) Housing according to Region

<Apartments> Unit: 10,000 won

Size No. of Jeonse Monthly Rent


Region
(unit: pyeong) Bedrooms/Bathrooms (Deposit System)1) (Deposit Amount)2)
28 3/1 8,000~9,000 20~30 (5,000~6,000)
Busan 48 4/3 10,000~14,000 50 (7,000)
60 5/3 11,000~15,000 70 (6,000)
24 2/1 4,000~4,500 35 (1,500)
Gwangju
47 4/2 7,000~8,000 60 (3,000)
24 3/1 8,000~9,000 30~40 (2,500~4,000)
Daejeon 32 3/2 10,000~12,000 40~60 (3,000~7,000)
49 4/2 15,000~17,000 30~40 (9,000~10,000)
Jeonnam 24 3/1 20 (300)
24 3/1 2,800~3,000 25 (1,000)
Jeonbuk
41 4/2 7,700~85,00 100 (1,000)
Gyeongbuk 28 3/2 5,000~5,600 45 (500)
26 3/1 7,000~8,000 25 (4,500)
Gyeongnam
32 3/2 9,500~10,000 40 (5,000)
28 3/2 5,500~6,500 30~50 (1,000~3,000)
Gyeonggi 44 4/2 7,000~8,000 45~60 (3,000~4,000)
68 5/2 9,000~10,500 80~100 (1,000~2,000)
Note: 1)In the Jeonse system, which is unique to Korea, the lessee pays the deposit amount (about 50%~70% of the market value of
the property) in advance and then does not pay any rent. The deposit is fully refunded at the end of the contract period
2)The monthly rent plus deposit option is not necessarily parallel with market values.
Refer to the won-dollar exchange rate table at the end of chapter five

Most rental properties also require a deposit. For example, the lessee of a 28 pyeong
apartment with 3 bedrooms and 1 bathroom pays an initial deposit of 50-60 million won
and then a monthly rent of 200,000~300,000 won. The deposit is fully refunded at the end
of the contract period.

2. HOTEL EXPENSES
In Seoul, a room in a 5-star hotel costs approximately 350,000 won per night. For first
class hotels (4-star) it is 140,000 won per night and for second class hotels (3-star) it is
usually less than 100,000 won.
<Seoul> Unit: won/night

Premium Hotels First Class Hotels Second Class Hotels


Name Room Rate Name Room Rate Name Room Rate
COEX Inter-Continental 340,000 Academy House 80,000 Airport 93,000
Hyatt 370,000 Best Western New Seoul 160,000 Astoria 75,000
Hilton 340,000 Bugak Park 130,000 Boorim 78,000
JW Marriott 400,000 Centro 140,000 Brown 62,000
Lotte 360,000 Crown 146,410 Central 85,000
Renaissance 370,000 Hamilton 135,000 City Palace 90,000
Sheraton Walker Hill 360,000 Itae won 140,000 Dynasty 120,000
Shilla 360,000 Jongno Crown 143,000 Green Park 65,000
Note: Refer to the won-dollar exchange rate table at the end of chapter five

3. BASIC EXPENSES
<Cost of Basic Necessities> Unit: won
Unit Price
Coke 600㎖ 740
Orange Juice 1.5ℓ 2,110
Mineral Water 500㎖ 350
Beef (Tenderloin) 600g 40,000
Pork 600g 7,000
Chicken 1kg 3,500
Apple 1 3,500
Kerosene 1 718
Diesel Oil 1 853
Unleaded Gasoline 1 1,358
Cigarettes 1 packet (20) 1,500~2,000
Source: First Quarter, 2004, Korea Price Information
Note: Refer to the won-dollar exchange rate table at the end of chapter five

<Restaurant Expenses> Unit: won


Unit Price
Regular Restaurant Lunch 5,000~8,000
First Class Hotel restaurant Lunch (Buffet) 25,000~50,000
Regular Chinese Restaurants Jajangmyeon 3,500
Special Chinese Restaurants Lunch (Set Menu) 15,000~35,000
Regular Japanese Restaurants Hot Fish Stew 10,000
Special Japanese Restaurants Lunch (Set Menu) 15,000~35,000
Regular Korean Restaurants Rice & Side Dishes 5,000~8,000
Special Korean Restaurants Lunch (Set Menu) 25,000~50,000
Pizza Hut Family Size Pizza 24,900~28,900
Bar Budweiser 1 bottle 4,000~8,000
McDonalds Hamburger 1,000~3,600
Source: Websites for restaurants and the above brands
Note: Refer to the won-dollar exchange rate table at the end of chapter five

24 25
4. MEDICAL EXPENSES
There are nine general hospitals and more than 10 private hospitals that run clinics for
foreigners in Korea.
Unit: won
Treatment Fees
First medical examination 55,920
Second medical examination 51,140
734,000
VIP room 674,000
624,000
Hospital room rates per day 580,000
Single room 354,000
276,000
Twin room 195,000
Source: International Clinic, Severance Hospital
Note: Refer to the won-dollar exchange rate table at the end of chapter five

5. TUITION FOR FOREIGN SCHOOLS


There are more than 60 foreign schools in Korea, which provide education for the
American, British, Japanese, French, German and Chinese communities. Sixteen schools
are located in Seoul or nearby. Generally, students have to hold a foreign passport and, at
least one parent is interviewed by school staff. The following is a summary of the curricula
and tuition fees of some of the foreign schools in Seoul.

1) Seoul Foreign School


American Curriculum: Pre-School (Kindergarten), Elementary, Middle, and High School.
British Curriculum: Offers an education based on the National Curriculum of England and Wales.

Admission Fees Tuition Fee


Pre-school 5,900,000 won and US$2,700
- Application Fee :
Elementary School 10,900,000 won and US$5,200
220,000 won or US$180
Middle School 1,400,000 won and US$5,400
- Registration Fee:
High School 14,750,000 won and US$6,000
440,000 won or US$365
British School 11,900,000 won and US$6,100

- Annual School Bus Fee : 1,920,000 won or US$1,600


- High School Senior Fee : 204,000 won or US$170
Other Expenses - Early Exam Fee(per exam) : 60,000 won or US$50
- IB Fee-Junior Year : 660,000 won or US$550
- IB Fee-Senior Year : 1,320,000 won or US$1,100

*Homepage: www.sfs.or.kr
*Phone: 82-2-320-3100, Fax: 82-2-322-4105
Note: Refer to the won-dollar exchange rate table at the end of chapter five
2) Seoul International School
American Curriculum: Pre-School (Kindergarten), Elementary, Middle, and High School.

Admission Fee Tuition Fee


Pre-school 8,590,000 won and US$4,100
Elementary School 9,340,000 won and US$4,500
420,000 won (or US$350)
Middle School 10,390,000 won and US$5,000
High School 10,840,000 won and US$5,200
- Transportation Fare (Option) : US$1,500
- Semester Exam : 60,000 won
- A.P Exam Fee : 200,000 won
- High School Graduation Fee : 200,000 won
Other Expenses
- Book Deposit
·Elementary School : 100,000 won
·Middle School : 150,000 won
·High School : 200,000 won
*Home page: www.sis-lhs.gyeonggi.kr
*Phone: 82-2-2233-4551, Fax: 82-31-759-5133
Note: Refer to the won-dollar exchange rate table at the end of chapter five

3) Korea International School


American Curriculum: Offers Kindergarten, Elementary, Middle and High School.

Admission Fee Tuition Fee


Kindergarten 8,800,000 won and US$5,800
Elementary School 8,800,000 won and US$5,800
700,000 won1)
Middle School 9,900,000 won and US$6,500
High School 11,000,000 won and US$7,600
- Bus Fare 1,850,000won2)
Other Expenses
- Book Deposit Fee: 200,000 won

*Home page: www.kis.or.kr


*Phone: 82-2-561-0509, Fax: 82-2-576-0709
Note: 1)Initial Registration Fee and Admission Testing Fee
2)One-way or half-year bus fare options are not available.
Refer to the won-dollar exchange rate table at the end of chapter five

4) Lycee Francais de Seoul


French Curriculum: Offers Kindergarten, Elementary, Middle and High School.
Unit: won
Admission Fee Tuition Fee
Kindergarten 6,668,000
Elementary School 6,668,000
None
Middle School 9,064,000
High School 9,804,000
Other Expenses - Annual School Bus Fare : 1,600,000 won
*Home page : lyceeseoul.ifrance.com, www.lfseoul.org
*Phone: 82-2-535-1158, Fax: 82-2-593-5444
Note: Refer to the won-dollar exchange rate table at the end of chapter five

26 27
5) Deutsche Schule Seoul
German Curriculum: Kindergarten and Elementary Schools
Unit: won
Admission Fee Tuition Fee
Kindergarten 110,000 5,500,000
Elementary School
Middle School 700,000 12,000,000
High School

Other Expenses - Annual School Bus Fare : 2,500,000 won


- Lunch meal allowance is additionally required
*Home page : www.dsseoul.org
*Phone: 82-2-792-0797, Fax : 82-2-797-1954
Note: Refer to the won-dollar exchange rate table at the end of chapter five

6) Japanese School
Japanese Curriculum: Kindergarten, Elementary School, Middle School
Unit: won
Admission Fee Tuition Fee

Kindergarten 200,000

Elementary School 160,000

Middle School 160,000

- Heating Expenses (November-February): 30,000 per month


Other Expenses
- School Bus Fare: 105,000 per month
*Home page: http://sjshp.or.kr
*Phone: 82-2-574-0348, Fax: 82-2-572-6972
Note: Refer to the won-dollar exchange rate table at the end of chapter five

For non-members of Seoul-Japan Club (SJC), admission fee and tuition fee are higher than
shown in above table.
6. TRANSPORTATION EXPENSES

1) Airfares
Domestic airfares in Korea are affected by both seasonal and competitive factors. For
comparison purposes, please see the table below. A departure tax of 5,000 won is levied on
all departures from Incheon International Airport and 4,000 won for domestic terminals.

<Domestic Airfares > Unit: won


Economy Class Business Class
Route Discount Rate Normal Rate High Season Rate Discount Rate Normal Rate High Season Rate
(Mon ~Thurs) (Fri ~Sun) (Mon~Thurs) (Fri~Sun)

Seoul / Incheon-Busan 62,400 66,500 69,900 82,400 86,500 89,900


Seoul / Incheon-Jeju 73,400 78,400 82,400 93,400 98,400 102,400
Jeju-Seoul / Incheon 82,300 103,300
Seoul / Incheon-Daegu 54,400 58,000 60,900 74,400 78,000 80,900
Seoul-Gwangju 54,900 58,500 61,400 74,900 78,500 81,400
Seoul-Ulsan 61,900 65,900 69,400 81,900 85,900 89,400
Seoul-Jinju / Sacheon 65,400 69,900 73,400 85,400 89,900 93,400
Seoul-Pohang 58,400 62,500 65,400 78,400 82,500 85,400
Seoul-Yangyang 51,400 55,000 57,900 71,400 75,000 77,900
Busan-Jeju 56,900 60,500 63,400 76,900 80,500 83,400
Busan-Yangyang 61,900 66,000 69,400 81,900 86,000 89,400
Gwangju-Jeju 49,900 53,500 56,400 69,900 73,500 76,400
Daegu-Jeju 62,400 66,900 70,400 82,400 86,900 90,400
Cheongju-Jeju 64,400 68,900 72,400 84,400 88,900 92,400
Ulsan-Jeju 61,400 65,400 68,900 81,400 85,400 88,900
Gunsan-Jeju 54,900 58,500 61,400 74,900 78,500 81,400
Seoul-Yeosu / Suncheon 62,900 67,400 70,900 - - -
Yeosu / Suncheon-Jeju 50,900 54,500 57,400 - - -
Jinju / Sacheon-Jeju 55,900 59,500 62,400 75,900 79,500 82,400
Wonju / Hoengseong-Jeju 74,800 80,400 84,300 94,800 100,400 104,300
Mokpo-Jeju 44,400 47,500 49,900 - - -

Source: Public Utilities Charge, Korea Price Information


Note: Based on the Tariffs of Korean Air (KAL)
Refer to the won-dollar exchange rate table at the end of chapter five

2) Railroad
The following is a schedule of Korean railroad fares:
<Passenger Fare for KTX (high-speed express) Seoul-Busan Line> Unit: Won
Gwang Cheonan, Dong-
Yongsan -myeong Daejeon Milyang Gupo Busan
Asan daegu
Seoul 10,600 10,600 11,400 19,700 34,900 39,700 43,500 45,000
Yongsan 10,600 11,100 19,400 34,600 39,400 43,200 44,700
Gwangmyeong 10,600 17,300 32,800 37,700 41,500 42,900
Cheonan,Asan 10,600 23,500 28,300 32,100 33,600
Daejeon 15,700 21,000 24,800 26,200
Dongdaegu 10,600 10,600 12,200
Milyang 10,600 10,600
Gupo 10,300
Source: April, 2004, Office of Korea National Railroad
Note: Refer to the won-dollar exchange rate table at the end of chapter five

28 29
<Passenger Fare for KTX Honam Line> Unit: won
Seo Jeon Song Gwang
Nonsan Iksan Naju Mokpo
-daejeon -geup -jeongri -ju

Seoul 19,800 23,700 27,000 30,800 35,500 36,900 41,400 36,600


Seodaejeon 10,600 10,600 13,200 18,600 20,000 24,400 19,700
Nonsan 10,600 10,600 14,200 15,900 20,500 15,500
Iksan 10,600 10,600 12,000 17,300 11,600
Jeongeup 10,600 10,600 12,800 10,600
Songjeongri 10,600 10,600 -
Naju 10,600 -

Source: Office of Korea National Railroad


Note: Refer to the won-dollar exchange rate table at the end of chapter five

3) Express Buses
Domestic express bus fares vary according to destination and class of service.
<Seoul Departures > Unit: won
Gyeongbu Line Guma Line Yeongdong Line Honam Line
Pyeongtaek 4,700 Masan 24,400 Wonju 8,100 Nonsan 13,700
Cheonan 5,600 Changwon 24,700 Jecheon 10,500 Jeonju 15,400
Cheongju 8,200 Jinju 21,300 Gangreung 15,800 Gunsan 16,100
Daejeon 10,200 Sokcho 18,800 Namwon 19,100
Gimcheon 15,200 Gwangju 20,800
Daegu 19,400 Mokpo 24,000
Gyeongju 23,400 Suncheon 25,600
Ulsan 26,100 Yeosu 28,000
Busan 27,500
Note: Refer to the won-dollar exchange rate table at the end of chapter five

4) Taxis (Seoul) Unit: won


Classification Basic Charge Charge by Distance Charge by Time
Ordinary Taxi 1,600 / 2km 100 / 168m 100 / 41sec
Deluxe Taxi 4,000 / 3km 200 / 205m 200 / 50sec
Van (Jumbo) Taxi 4,000 / 3Km 200 / 205m 200 / 50sec

Note: Refer to the won-dollar exchange rate table at the end of chapter five
5) City Buses (Seoul) Unit: won

Classification Fare
Main Line, Branch Line Ordinary Bus 800
Circular Bus, Village Bus 500
Major Main Line Bus 800~1,000
Wide Area Bus 1,400
Limousine Bus (Airport Bus) 6,500~12,000
Note: Bus Tariffs effective as of July, 2004
Refer to the won-dollar exchange rate table at the end of chapter five

6) Subway Fares
There is a flat fare of 800 won for trips within the city zones that are less than 12 kms
long. For trips between 12 and 42 km, there is a surcharge of 100 won for every 6 km; and
for trips greater than 42 km, another 100 won is added for every 12 km.

<Subway Fares for Major Subway Stations> Unit: won

Line No. Names of Stations Fare


Incheon City Hall 1,200
1
Suwon 1,400
Guro Industrial Complex 800
2
Gueui 800
Yeonshinnae 800
3
Suseo 1,000
Mia 800
4
Sadang 800
Note: Tariffs as of July, 2004
Refer to the won-dollar exchange rate table at the end of chapter five

7. CULTURAL EXPENSES
Movie tickets cost 7,000 won per showing. Drama, live performances and concerts vary
according to the event.
<Ticket Prices for Live Shows> Unit: won
Classification Ticket Price
Ordinary 20,000
Age College Students 15,000
Teenagers 10,000
Large Theatre 30,000~50,000
R seat
Small Theatre 20,000
Large Theatre 20,000~30,000
Seat S seat
Small Theatre 15,000
Large Theatre
A seat 20,000
Small Theatre
Special Events All Seats 10,000~20,000
Source: Korean Culture & Arts Foundation
Note: Refer to the won-dollar exchange rate table at the end of chapter five

30 31
Green fees at Korean golf courses vary considerably and are determined by types of
membership, and regarding reciprocal privileges for guests. Often the number of holes
played will also affect the fee. Most clubs in the greater Seoul metropolitan, charge green
fees averaging:
·Members: 25,000 won per person for both weekdays and weekends
·Non-Members: Weekdays: 140,000 won per person
Weekends: 180,000 won per person
·Cart Rental: 80,000 won each
·Caddie fee: 80,000 per caddie (tipping expected)

8. INTEREST RATES
1) Market Rates Unit: %
Bonds 02.1Q 02.2Q 02.3Q 02.4Q 03.1Q 03.2Q 03.3Q 03.4Q May,2004
3 Year Maturity
Government Bond 6.1 6.23 5.48 5.32 4.82 4.31 4.41 4.64 4.54

3 Year Maturity
Corporate Bond 7.0 7.01 6.29 5.93 5.39 5.31 5.59 5.44 5.07

Source: Bank of Korea

2) Loan Rates
<Credit Loan Rates by Different Banks>
Unit: won,%
Limit Rate
Kookmin Bank 0.5 million 7.75~8.49
Koram Bank 0.5 million 7.9~15
Korea Exchange Bank 0.3 million 8.0~11.5
Korea Industrial Bank 0.5 million 8.20~11.70
Hana Bank 0.5 million 8.50~11.90
Korea Citibank 0.5 million 8.90~17.00

Note: Refer to the won-dollar exchange rate table at the end of chapter five

< Won-dollar exchange rate over the last three years>


December 2002 December 2003 November 2004
Basic Rate 1,200.40 1,197.80 1,047.90
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■ JAPAN
Tel: (1-972) 243-9300 Tel: (44-20) 7491-8057
Fax: (1-972) 243-9301 Fax: (44-20) 7491-7913
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Fukuoka
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■ CHINA

Detroit, U.S.A Stockholm, SWEDEN Shanghai


Tel: (1-248) 355-4911 Tel: (46-8) 30-80-90 Tel: (86-21) 6219-7592
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Toronto, CANADA Copenhagen, DENMARK Hong Kong


Tel: (1-416) 368-3399 Tel: (45) 3312-6658 Tel: (85-2) 2545-9500
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Vancouver, CANADA Amsterdam, NETHERLANDS Taipei, TAIWAN


Tel: (1-604) 683-1820 Tel: (31-20) 673-0555 Tel: (886-2) 2725-2324
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32 33
Business Expenses in Korea
Corporate Establishment &
Operating Costs plus Daily Living Expenses
www.investkorea.org

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December 2004