Park Su-Ah, a 25-year-old accounts manager in South Korea, dreams of having her own place where she can have a taste of independence. However, due to the country’s skyrocketing real estate prices, she is unable to afford to leave her parents’ home. Like many of her peers, Park is trapped in a generation of millennials and Gen Z who are unable to move out due to the high cost of living.
In 2022, the average cost of buying a 1,174-square-foot apartment in Park’s city was 789.36 million Korean won ($606,570). With a monthly salary of 2.2 million won ($1,690), Park knows she needs to double her current salary before she can afford to rent an apartment with her sister. Despite her desire for independence, Park acknowledges the benefits of living with her family. She enjoys spending time with her loved ones and appreciates the financial savings that come with sharing expenses.
Park’s mother cooks their meals every day, and they have a routine of eating breakfast and dinner together as a family. They also divide household chores among themselves, with Park taking on tasks like washing dishes and cleaning the bathrooms. The house they live in is comfortable, with three bedrooms and two bathrooms, shared among the four of them. The convenience of living in Goyang-si, with its shopping malls, schools, and hospitals, outweighs the challenge of Park’s daily commute to Seoul for work.
However, there are downsides to living with her parents at her age. Park feels restricted in inviting friends over or spending nights out without facing questions from her parents. She longs for independence and wants to move out to live her own life. But, the complicated rental system in South Korea, known as “jeonse,” poses an obstacle. Under this system, tenants pay a large lump-sum deposit instead of monthly rent, which can amount to 80% of an apartment’s sale price. Saving up for such a deposit is a challenge for Park, especially considering the high housing prices in the country.
Park used to contribute to household expenses, but her parents now encourage her to save money for her future. She only pays for her own personal expenses and occasionally treats her family to movies or concerts. Instead of moving out alone, Park’s more attainable goal is to move out with her younger sister. They hope to rent an apartment with at least two bedrooms next year. To afford the rent comfortably, Park estimates that she will need to earn at least twice her current salary.
Park’s situation reflects the struggles faced by many millennials and Gen Z in South Korea who are unable to afford their own homes and are forced to live with their parents. As the real estate market continues to rise, the dream of independence remains out of reach for many young adults in the country.
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