A Leap of 25 Spots in One Year... South Korea Ranks 7th Globally for Foreigners' Cost of Living Burden
According to the recently published "2025 Expat Insider Study,"
South Korea ranked 7th in the world for countries with the highest cost of living burden for foreigners.
This marks a dramatic jump of 25 places from last year, moving up from below the 40th position.
In particular, in the area of personal financial satisfaction,
South Korea was identified as one of the "biggest decliners," showing a steep drop in ranking.
Despite Stable Prices, Perceived Cost Burden Soars
According to a survey by InterNations,
the inflation rate in South Korea is relatively stable at around 2%.
However, the perceived cost of living burden among foreign residents
has increased significantly compared to the previous year.
The proportion of foreigners living in South Korea who were
satisfied with their personal financial situation dropped sharply from 70% to 38%,
which is well below the global average (54%).
Vietnam Remains the "Most Affordable Country" for Five Consecutive Years
On the other hand, the most affordable country for foreigners to live in
Vietnam has claimed the top spot for five consecutive years.
Eighty-nine percent of respondents expressed satisfaction with the cost of living,
and 87% said they felt their disposable income was sufficient.
Thanks to the low cost of living,
more than half of respondents have lived in Vietnam for over five years,
and 30% said they hope to settle permanently.
Other Southeast Asian Countries Also Rank High
Following Vietnam, Colombia (2nd) and Panama (3rd) ranked high among affordable countries.
Additionally, countries such as Thailand, Indonesia, the Philippines, and Malaysia
in Southeast Asia were also included in large numbers,
demonstrating that this region offers attractive cost-of-living conditions for foreigners.
The Most Expensive Country Is Canada... South Korea Follows Singapore
In this survey, Canada was found to be the most expensive country for foreigners in terms of cost of living.
The United Kingdom, Finland, Turkiye, Qatar, and Singapore followed in the rankings,
with South Korea ranking 7th, right after Singapore.
Australia and Norway were also classified as high-cost countries, following South Korea.
What These Numbers Tell Us
■ Although South Korea's inflation rate (2%) is stable, the perceived cost burden for foreigners has worsened dramatically compared to the previous year.
■ Multiple factors such as housing costs, taxes, and exchange rates have contributed to the increased cost-of-living burden.
■ In contrast, low-cost countries such as Vietnam, Colombia, and Panama are rapidly emerging as long-term residence and settlement destinations for foreigners.
■ South Korea is an expensive country with low satisfaction, and the gap in perceived cost of living between South Korea and Southeast Asian or South American countries is widening.
■ Is it time for South Korea to consider more foreigner-friendly policies?
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Edit Maeng Jiae mjiae@asiae.co.kr
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Reporter Choi Seungwoo loonytuna@asiae.co.kr
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