'Scared to Go to University in Seoul'... Ten Million Won Tuition and 600,000 Won Monthly Rent [Chosun Price Chronicles]

⑨Double Burden for University Students
Tuition Fees High and Monthly Rent Also Rising Sharply
Youth Chased by Debt Due to Overdue Loan Interest

"Between tuition and monthly rent... it's tight to live alone in Seoul." Yerin Kim (23), a university student living alone in Anam-dong, Seongbuk-gu, Seoul, recently said that monthly rents near universities have risen sharply. The price range for a newly built one-room apartment she checked before the semester started was a deposit of 30 million KRW with monthly rent around 900,000 to 1,000,000 KRW. Kim said, "Even nearby real estate agents call it 'crazy rent' and are shocked by how much it has increased," adding, "I gave up on new buildings and looked for other places, but to find a place similar to one that had a 10 million KRW deposit and 500,000 KRW monthly rent in 2020, now you have to pay at least 700,000 KRW." With large sums going toward tuition and the steep rise in rent, it has become practically impossible for students from other regions to attend university in Seoul without parental support.

[Image source=Yonhap News]

In 2023, the average university tuition fee is 6.65 million KRW, and for private universities, it is 7.32 million KRW, but the average tuition fee for 42 universities located in Seoul exceeds 7.44 million KRW. According to data published on the 15th by the University Information Disclosure System, among universities located in Seoul, the highest annual average tuition fee is at Catholic University (Second Campus) at 9,297,700 KRW. This is followed by Yonsei University at 9,203,800 KRW, Chugye University for the Arts at 8,815,800 KRW, Ewha Womans University at 8,742,200 KRW, Hanyang University at 8,556,900 KRW, Sungkyunkwan University at 8,448,600 KRW, Hongik University at 8,397,100 KRW, Korea University at 8,335,400 KRW, Konkuk University at 8,322,300 KRW, and Sookmyung Women's University at 8,137,800 KRW. Nationwide, Eulji University has the highest tuition at 10,414,000 KRW, followed by Catholic University (Second Campus) and Yonsei University.

The government introduced the "half-price tuition" policy in 2012, aiming to reduce students' actual tuition burden by half and has been suppressing tuition increases. If tuition is raised, universities may lose eligibility for Type II National Scholarships (university-linked support) or be excluded from government financial support, so universities have maintained a freeze policy reluctantly. However, this year, the "tuition freeze policy" is being challenged. 17% of private universities nationwide have raised tuition fees, citing financial difficulties and the need to improve educational services. According to the Korea Council of Private University Presidents, out of 151 four-year private universities nationwide, 26 (17.2%) raised tuition, and among them, 34.6% (9 universities) increased tuition up to the legal maximum limit (5.64%).

University students chased by debt... Government and local governments expand youth support

[Image source=Yonhap News]

The problem is that with high inflation, monthly rent and maintenance fees have risen, increasing the housing burden on university students. The average monthly rent near major universities in Seoul approaches 600,000 KRW. According to Station3, the operator of the real estate information platform Dabang, in January, the average monthly rent for a one-room apartment (exclusive area under 33㎡) near major universities in Seoul with a 10 million KRW deposit was 574,000 KRW, and the average maintenance fee was 72,000 KRW. Compared to a year ago, monthly rent rose 11.6%, and maintenance fees increased 19.3%.

The number of young people struggling with debt is also increasing. The amount of student loans and unpaid arrears that young people living in Seoul must repay is on the rise. According to the National Tax Statistics Portal, as of 2022, the amount of student loans owed by Seoul youth is 22.3 billion KRW, and unpaid arrears amount to 15.2 billion KRW. In 2021, these figures were 17.5 billion KRW and 12.5 billion KRW, and in 2020, 14.5 billion KRW and 10.7 billion KRW, respectively. It is common for credit card use to be suspended due to failure to repay student loans on time. Among all credit delinquents in Seoul (1,706 people), 77% (1,314 people) failed to repay student loans on time.

As university students' hardships grow, the government and local governments are expanding youth welfare. The government announced plans to expand the scope of national scholarships to reduce university students' tuition burdens. Additionally, the number of work-study scholarships for low-income students who combine study and work will be significantly increased. In Seoul, the city supports interest on student loans for university and graduate students. The city will invest 3.86 billion KRW, an increase of about 200 million KRW from the previous year, to support loan interest for 35,000 students (18,000 in the first half and 17,000 in the second half), which is 2,515 more than last year.