Seoulites Pay Dearly for Their High Living Standard

People in Seoul earn a bit more than other Koreans but also have a lot more debts. According to a study by Statistics Korea and other agencies released Monday, the average annual salary of Seoul residents is W43.49 million (US$1=W1,157), 17.5 percent higher than in other parts of the country, because most major business conglomerates, which offer the highest-paying jobs, are headquartered in the capital.

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But the study also shows that people in Seoul shoulder as much debt as they earn. Their average debt load was W48.48 million, almost double the average of W24.33 million borrowed by people in the provinces.

There were few signs suggesting any improvement in living conditions in Seoul. Salaries outside the capital rose 7.9 percent on average this year, but in Seoul only 4.5 percent. Meanwhile Seoul citizens' debt load rose 15.7 percent over the past year, as against 9.4 percent in the rest of the country.

The main reason for soaring debt in Seoul is the high cost of housing. There was no huge gap between the average of W7.19 million borrowed by Seoul citizens to cover living expenses and the W5.39 million elsewhere. But when it came to mortgages, Seoul citizens borrowed W39.93 million on average, twice as much as the W17.96 million outside the capital.

There is little chance that the situation will improve soon. Seoul residents saw their debt load rise 15.7 percent last year, more than triple the increase in incomes (4.5 percent). One bank staffer said, "It looks like Seoul people suffer tougher financial conditions".