Yi Whan-woo is a Korea Times journalist primarily covering finance. He writes in-depth articles on macroeconomy and financial markets and previously covered sports, politics, diplomacy and inter-Korean affairs, among others. Feel free to contact him at yistory@koreatimes.co.kr.
High rental costs push young adults into substandard housing
A goshiwon room in Seoul is seen in this undated photo. The room has no windows, and residents share bathroom and kitchen facilities. Yonhap
By Yi Whan-woo
Kim, a 31-year-old office worker in Seoul, says she recently moved into a goshiwon near her workplace because she could not keep up with rising studio apartment rents.
Goshiwon are dormitory-style accommodations often used by students or low-wage workers who need minimal living space at low cost. They often have shared kitchen and bathroom facilities, rooms are small, and some lack basic amenities such as windows.
Kim lived in a goshiwon when she first moved to the capital from her hometown of Gumi, North Gyeongsang Province, in 2017, but later moved to an officetel, a kind of studio or one-room apartment.
“I know that goshiwon are far less convenient than officetel, but I really could not keep up with the growing monthly rent for such accommodations,” Kim said.
“Going back to a goshiwon was the only option I had,” she added.
Kim represents a growing number of Korean young adults increasingly pushed into substandard housing in the Seoul metropolitan area, according to data jointly compiled by the Ministry of Land, Infrastructure and Transport and the ministry-funded Korea Research Institute for Human Settlements (KRIHS).
Data showed that in 2024, 5.3 percent of households headed by people aged 19 to 34 lived in accommodations not legally classified as housing, such as goshiwons, shipping container housing and other unregulated buildings. That was more than double the 2.2 percent recorded among households overall.
The figure was also the highest since 2017, when it reached 5.4 percent. Although the rate dipped to 3.4 percent in 2018 and 3.2 percent in 2020, the share of young adults in substandard housing climbed to 4.9 percent in 2022 and 5.3 percent last year.
“This trend coincides with a continued influx of young Koreans into Seoul and the greater capital area, like Ms. Kim, and rising costs for their preferred housing options,” said Kang Mi-na, a senior researcher at KRIHS.
A Ministry of Data and Statistics survey from 2024 showed that 53.9 percent of the country’s population aged 19 to 34 lived in Seoul, Incheon or Gyeonggi Province, a slight increase from 52.3 percent in 2018.
Compounding the issue, last week saw jeonse rentals rise in price for the 40th consecutive week, making one of the most preferred rental options increasingly scarce, according to the land ministry. Jeonse is a unique home rental system where tenants pay a large lump-sum deposit in lieu of monthly rent.
With jeonse housing becoming less available and more costly, many young adults have shifted to rental contracts that require monthly payments.
In November, Seoul’s officetel monthly rent price index increased by 0.21 percent from the previous month, marking the largest monthly rise since statistics were first compiled in 2018.