[The Editors' Verdict] Meoksanism: The High Cost of Living in Korea

Concerns Over the Cost of Living
A Close Look at Australia's 50-Cent Public Transit Fare
Why Seoul Ranks Among the World's Most Expensive Cities
The Growing Burden of Everyday Expenses in South Korea
Calls for Effective Policies to Ease Living Costs

Public transportation fares for buses, trams, ferries, trains, etc., are only 50 cents (about 450 KRW) per one-way trip.

The Queensland government in Australia, which includes Brisbane and the Gold Coast, has implemented a new public transportation fare of 50 cents starting from the 5th of this month. The state government, which has set public transportation fares at a level close to 'free,' explained that the policy aims to alleviate road congestion through increased public transit use, significantly reduce living expenses, and ease inflationary pressures.

An office worker commuting four times a week from the Gold Coast to Brisbane, who previously paid AUD 11.46 per one-way trip and AUD 91.68 per week, now only needs to pay AUD 4 per week under the new fare system. The amount saved over six months reaches AUD 2,104 (about 1.89 million KRW). This is a groundbreaking price stabilization measure introduced by Queensland, where one-way bus fares typically range around 2,000 to 3,000 KRW.

Compared to the Climate Companion Card, which requires riding the subway or bus more than 44 times a month to break even on a fixed fare of 65,000 KRW and has so far provided an average monthly transportation cost saving of about 30,000 KRW per user, this is just an enviable story of public transportation fare policy from a distant country.

Of course, since each country and station has different financial conditions and budget situations, and the interests of the public and private sectors are intricately intertwined, it is impossible to evaluate livelihood policies by the same standard. It is not a matter of simply saying, "Australia can do it, so why can't we?" Nevertheless, the reason why Australia's 50-cent public transportation fare draws attention is due to the reality in South Korea, where dissatisfaction with the cost of living is rising.

In South Korea, the costs of clothing, food, and housing?the basic necessities of life?are about 1.5 times higher than the average of the Organisation for Economic Co-operation and Development (OECD). This means that essential daily living activities, not expenses for enhancing quality of life or leisure, incur significant costs. Especially, the cost of living in Seoul, where infrastructure and population are concentrated, ranks among the highest worldwide.

According to Mercer’s 2023 Cost of Living Survey, Seoul ranks 16th out of 227 cities globally in terms of living expenses. Cities like London (17th), Dubai (18th), Tokyo (19th), and Washington (23rd) rank lower than Seoul. Although public utility fees such as electricity, gas, and water are low, which brings the overall price level closer to the advanced countries’ average, many households find it hard to feel this due to record-breaking heatwaves and tropical nights resulting in huge electricity bills.

Even with abnormal weather conditions that make summer life impossible without air conditioning, the progressive electricity rate system applied to residential electricity bills forces households to bear massive electricity charges if they want to use air conditioning and sleep comfortably at night. Monthly household communication costs approaching 130,000 KRW and double-digit annual increases in fruit and vegetable prices also add to the burden of living expenses. These burdens are not a one-time issue solvable by temporary subsidies but a recurring reality that weighs heavily on ordinary citizens every year.

In South Korea, where the cost of living has become a top policy priority, a new term "Meoksanism" (meaning prioritizing food and living expenses) has been coined and even used in politics, reflecting heightened sensitivity to living costs. It is no wonder that the “Special Act on Livelihood Recovery Support Payments,” which provides 250,000 KRW to every citizen, has been proposed. We hope that unnecessary political conflicts will not waste time needed to find efficient ways to stabilize prices and support livelihoods.