business expenses in korea

8/15/2019 Business Expenses in Korea

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Business Expenses in Korea

Corporate Establishment &Operating Costs plus Daily Living Expenses


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. Expenses for the Establishment of a Company 4

. Employment Costs 9

. Logistics Expenses 12

. Public Utilities Charges 16

. Living Expenses 21

Contents


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. Expenses for the Establishment ofa Company

1. EXPENSES FOR ESTABLISHMENT OF A CORPORATION

1) Establishment of a Corporation in Large Metropolitan Areas

For persons wishing to establish a corporation in larger cities such as Seoul or other large

metropolitan areas with capital of 50 million won, the minimum amount under the Korean

Commercial Code, the mandatory expenses will be as follows: Registration tax, which is 3

times higher than that for smaller metropolitan areas. And, if the corporation is established

in Seoul, a public bond which is 0.1% of the capital must be paid.

Note: 1)Average Won-Dollar Exchange Rate of First Half, 2004 applied

2) Expenses for Establishing a Corporation outside the Metropolitan Areas

Note: 1)Average Won-Dollar Exchange Rate of First Half, 2004 applied

2. OFFICE RENT

As of the first half of 2004, office rent per pyeong (3.3 ), per month is 40,000~70,000

won in Seoul and 20,000~30,000 won in provincial cities. For example, for an office

building in Teheran-ro, Seoul, the deposit for the lease contract is 615,000 won per pyeong

and monthly rent is 60,000 won per pyeong. A jeonse deposit would be 396,000 won per

04 05

Registration Tax (1.2% of the Capital) 600,000 513

Education Tax (20% of the Registration Tax) 120,000 103

Certification of Establishment Fees(Notary's Office) 130,000 111

Search Fee for Company and Corporation Names 36,000 31

Stamp Duty 70,000 60

Public Bonds (for Seoul) 50,000 43

Public Fees for Applications 120,000 103

Fees for Authentication of Seal, Attested Copy of Register, plus submission 100,000 85

Fees for Legal Seals for Representative Director and Stockholders 50,000 43

Basic Consulting Fee to a Judicial Scrivener 190,000 162

Total 1,466,000 1,253

Expenses for the Establishment of a CorporationCapital (KRW 50 million)

won US$1)

Registration Tax (0.4 % of the Capital) 200,000 171

Education Tax ( 20% of the Registration Tax) 40,000 34

Fee for the Certification of Establishment (Notary's Office) 130,000 111

Search Fee for Company and Corporation Names 36,000 31

Stamp Duty 70,000 60

Public Fees for Applications 120,000 103

Fees for Authentication of Seal, Attested Copy of Register, plus submission 100,000 85

Fees for Legal Seals for Representative Director and Stockholders 50,000 43

Basic Consulting Fee to a Judicial Scrivener 190,000 162Total 936,000 800

Expenses for the Establishment of a CorporationCapital (KRW 50 Million)

won US$1)


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pyeong. Jeonse is a unique system, which is only found in Korea. With a jeonse contract, a

deposit equal to 50~70% of the market price of the property is paid. During the period of

the contract, no rent is paid and the leaseholder receives the full deposit at the end of the

contract period. The average maintenance fee for shared areas is around 23,000 won per

pyeong per month in Seoul.

Unit: won/pyeong

Note: Refer to the won-dollar exchange rate table at the end of chapter five

3. PLANT LOT EXPENSES

The prices of plant lots in major industrial complexes vary considerably, depending upon

the price of the land adjacent to them and complex policies affecting them. The costs range

from 70,000 won per per year in Daebul National Industrial Zone in Jeonman to

435,000 won per per year in Asan National Industrial Complex in Chungnam. The

average is about 100,000 won perper year. The cost for plant lots in the Industrial Zone

is 20~50% lower than for those in the Support Zone.

The following are exclusively for foreign companies and the lots are rented rather than

sold: Pyeongdong Foreign Industrial Complex in Gwangju, Daebul Foreign Industrial

Complex in Jeonnam, Ochang Foreign Industrial Complex in Chungbuk and Gumi

Foreign Industrial Complex.

Unit:1,000 won /

Source: Korea Digital Industrial Complex (www.esandan.net)


Jung-gu /Jongro

GangnamYeouido /

MapoOther

Busan Daegu Incheon Daejeon Gwangju UlsanSeoul

Gwangju

Gangwon

Chungnam

Chungbuk

Jeonbuk

Jeonnam

Gyeongnam

Gyeongbuk

Gwangju High-tech Science Industrial Complex 122 204(Research Lots: 90)

Pyeongdong Foreign-exclusive Industrial Complex Rent (40/year) -

Bukpyeong National Industrial Complex 81(Additional 10% of the land price for deposit for removal)

Poseung Area: 430~435Asan National Industrial Complex Godae Area: 328

Bugok Area: 338

Ochang Foreign-exclusive Industrial Complex Rent: 1.3 / year

Gunjang National Industrial Complex 336

Gumi National Industrial Complex 118

Anjeong National Industrial Complex 120

Gumi Foreign-exclusive Industrial Complex Rent (1.1/year) + Deposit for Rental

Region Complex Name Industrial Facility Zone Support Facility Zone

70,414 60,031 43,964 37,915 27,397 19,813 23,921 17,894 19,001 20,817

Daebul National Industrial Complex 70 127

Daebul Foreign-exclusive Industrial ComplexRent: 0.3 / year

Deposit for Rental: 0.3

Jinsa Foreign-exclusive Industrial Complex107 183

Rent: 1 / year


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4. TAXES

1) Income Taxes

Corporate Income Tax

The taxable income under the Corporate Income Tax Act (CITA) is as follows:

Net income in accordance with financial accounting standards

+ additional amounts of earnings for tax purposes

additional amounts of loss for tax purposes

+ donations in excess of the maximum deductible amount

tax loss carried forward

non-taxable incomes

deductible incomes

= taxable income

The corporate income tax rates effective as of 2004 and 2005 are as follows:


Any foreign-invested company eligible for tax relief is eligible for corporate income tax relief

as follows:

First, if the business is an industrial support service, high-tech or any of those businesses

designated for the foreign investment zone, it is exempt from 100% of the corporate

income tax until 2004 and this is then reduced to 50% for 3 years thereafter. If tax relief is

applied for in 2005, the company is fully exempt from corporate income tax for the first 5

years and this is reduced to 50% for a subsequent 2 years. For example, the amount of

corporate income tax relief granted for income generated by a business recognized as

high-tech that starts operation in 2005 is computed as follows:

Unit: won


Second, any foreign-invested company occupying free trade zones, free economic zones

and the Jeju Investment Promotion Zone and any foreign developer in the free economic

zones and the Jeju Investment Promotion Zone are eligible for 100% corporate income tax

exemption for the first 3 years and a 50% reduction for 2 years thereafter.

06 07

100 million won or less 15% of the taxable income 13% of the taxable income

100 million won or more 15 million won + 27% of the amount 13 million won+ 25% of the amount

in excess of 100 million won in excess of 100 million won

Taxable amount 2004 2005

2005 100 million 13 million 13 million (100%) 13 million

2006 200 million 13 million + 25 million 38 million (100%) 51 million





2011 700 million 13 million + 150 million 81.5 million (50%) 465.5 million

YearTaxable Amount of Corporate

Amount of ReliefCumulative

Amount Income Tax Totals of Relief


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Meanwhile, with respect to the dividends paid to foreign investors by any foreign-invested

company engaged in a line of business eligible for tax relief, the income tax on the

dividends generated during any relief period is either exempted or reduced at the same rate

as the corporate income tax relief. In other words, during any period in which the

corporate income tax is fully exempted, the personal income tax on dividends is fully

exempted as well. Likewise, during any period in which the corporate income tax isreduced by 50%, the personal income tax on dividends is also reduced by 50%.

Further, where any advanced technologies essential to strengthen the international

competitiveness of a domestic industry are imported by contract, the corporate and

personal income taxes imposed on the payments for the technologies paid to the foreign

individual, corporation or economic cooperative body are fully exempt for five years from

the date of the first payment scheduled under the contract.

Personal Income Tax

4 Progressive personal income tax rates are applicable. Personal income taxes are imposed

comprehensively on income from interest, dividends, real estate, business and earnings,but separately on severance benefits and capital gains.


Similar to corporate income tax relief, personal income tax relief is available for

employees of the eligible foreign-invested companies. In addition, certain foreign

specialists who begin employment before December 31, 2006, are eligible for full

exemption from personal income tax for their first 5 years in Korea. Furthermore, the

income of a foreign specialist is tax exempt if s/he provides services in Korea for a Korean

national under a technology transfer contract under the Foreign Investment Promotion Act

(FIPA).

2) Taxes on Real Estate

Any foreign-invested company eligible for income tax relief is also eligible for tax relief

with respect to property tax, acquisition tax, comprehensive land tax and registration tax

imposed on real estate.

Acquisition and Registration Taxes

The taxes imposed when a property is purchased include acquisition tax (2% of the

purchase price), registration tax (3% of the purchase price) and value added tax (10% of

the purchase price of the building, deductible or refundable for businesses) as well as other

10 million won or less 9% of the taxable income

Over 10 million won 900 thousand won + 18% of the amount in excess of 10 million won

Over 40 million won 6.3 million won + 27% of the amount in excess of 40 million won

Over 80 million won 17.1 million won + 36% of the amount in excess of 80 million won

Taxable Income Tax Rates


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taxes such as special taxes for rural development (10% of the acquisition tax) and local

education tax (20% of the registration tax). The abovementioned taxes also increase,

depending on whether the property is located in a congestion restricted zone or not. In

addition, a housing bond must be purchased (exempted or reduced for registered foreign-

invested companies in proportion to the ratio of foreign investment).

< Taxes imposed on purchase of 100 million won building > Unit: won


Taxes on Purchasing PropertyProperty tax (0.3% to 7% of the price of the building), comprehensive land tax (0.2% to

5% of the price of the land), local education tax (20% of the property tax and

comprehensive land tax) and a special tax for rural development (10% or 15% of the

comprehensive land tax) are levied when a property is purchased. Where a non-urban

factory building is constructed or expanded within the Metropolitan Congestion Control

Region, the property tax is five times as much (0.3%5= 1.5%).

Taxes on Sale of Property

Value-added tax (10% of the sale price of the building) is levied at all times together with

capital gains tax (9% to 36%) and resident tax (10% of the capital gains tax) for

individuals, or corporate income tax (15% and 27%, or 13% and 25% starting from 2005)

and resident tax (10% of the corporate income tax) for corporations.

3) Taxes on Import of Capital Goods

Customs duty, special excise tax and value-added tax are exempted on capital goods

brought in by a foreign-invested company as a means of outbound or domestic payment

and contributed by a foreign investor, or the capital goods brought in by a foreign-invested

company as a contribution to capital.

08 09

Acquisition tax 2% of the purchase price 2,000,000 6,000,000 Full exemption

Special tax for10% of the acquisition tax 200,000 600,000 -

rural development

Value added tax 10% of the purchase price Deductible Deductible Deductible

Registration tax 3% of the purchase price 3,000,000 9,000,000 Full exemption

Education tax 20% of the registration tax 600,000 1,800,000 -

Total 5,800,000 17,400,000 800,000/2,400,000

Tax Tax RateOutside Congestion Congestion

ReliefRestricted Zones Restricted Zone

- Industrial support service business- High-tech business

- Designated business in foreign investment zones

100% for - Occupant of free trade zone

Customs duty 3 years - Occupant of free economic zone

- Foreign-invested developer in free economic zones and the

Jeju Investment Promotion Zone

- Occupant of Jeju Advanced Science & Technology Complex,

Jeju Investment Promotion Zone or Jeju Free Trade Zone

Special excise100% for

- Industrial support service business

tax and value3 years

- High-tech business

added tax - Designated business in foreign investment zones

Tax Relief Requirements


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. Employment Costs

1. WAGES

The average monthly wages for factory workers, office workers and other workers are

as follows:

Source: Mining and Manufacturing Statistics Report of 2003, National Statistics Office


Line of Business Factory Office and Other

Unit: won

Meat, fruit, vegetable, fat and oil processing 965,371 1,488,634

Dairy and ice cream manufacturing 1,861,967 2,057,879

Processed grain products, starch and feed manufacturing 1,665,807 2,113,892

Miscellaneous food manufacturing 1,329,807 1,782,701

Beverage manufacturing 1,861,690 2,057,783

Spinning 1,252,731 1,673,163

Fabric and weaving 1,319,168 1,750,546

Knitting and crocheting 1,276,098 1,776,107

Dyeing and textile processing 1,395,007 1,705,227

Other textile product manufacturing 1,239,837 1,642,948

Garment manufacture 1,050,573 1,747,389

Fur processing and fur product manufacturing 1,386,455 1,906,178

Leather garment manufacturing 1,515,044 1,979,654

Bags, purses and other leather article manufacturing 1,264,923 1,840,833

Shoe manufacturing 1,078,100 1,658,146

Sawmill and lumber processing 1,269,197 1,408,655

Wood, cork and carved product manufacturing 1,345,334 1,520,494

Pulp, paper and cardboard manufacturing 2,334,080 2,456,156

Corrugated cardboard, paper containers and other paper product manufacturing 1,422,210 1,721,057

Publishing 2,018,942 1,790,010Printing and other related business 1,512,350 1,580,958

Reproduction of recorded materials 1,554,984 1,923,370

Refined petroleum product manufacturing 3,938,941 2,722,173

Basic chemical manufacturing 2,650,136 2,655,308

Pharmaceutical manufacturing 1,852,401 2,208,922

Other chemical manufacturing 1,699,111 2,036,512

Synthetic fiber manufacturing 2,703,751 2,766,125

Rubber product manufacturing 1,660,279 1,773,280

Plastic product manufacturing 1,402,431 1,697,323

Glass and glass product manufacturing 1,927,213 2,419,244

Ceramic manufacturing 1,280,897 2,288,541

Cement, lime, plaster and cement, lime and plaster product manufacturing 1,793,090 1,836,790


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Source: Mining and Manufacturing Statistics Report of 2003, National Statistics Office


10 11

Other non-metal mineral product manufacturing 1,549,180 1,716,251

Basic iron and steel manufacturing 2,394,756 2,185,922

Basic precious and non ferrous metal manufacturing 1,893,490 2,117,436

Metal casting 1,661,223 1,836,768

Structural metal products, tanks and steam generator manufacturing 1,695,768 1,983,238Other fabricated metal product manufacturing and metal treatment 1,460,467 1,650,130

General purpose machinery manufacturing 1,646,042 1,900,875

Machine tool manufacturing 1,750,863 1,987,930

Other special purpose machinery manufacturing 1,731,967 1,892,281

Weapons and ammunition manufacturing 1,416,667 1,351,852

Other home appliance manufacturing 1,660,643 2,233,923

Computer and office equipment manufacturing 1,766,184 2,583,148

Electric motor, generator and transformer manufacturing 1,444,689 1,907,291

Power distribution and electric control device manufacturing 1,500,672 1,810,933

Insulated wire and cable manufacturing 1,652,745 2,047,792

Storage battery and primary battery manufacturing 2,070,056 1,995,922

Light bulb and lighting equipment manufacturing 1,274,601 1,596,119

Other electrical equipment manufacturing 1,288,159 1,719,155

Semiconductor and other electronic component manufacturing 1,891,618 2,526,208

Telecommunication devices and broadcasting equipment manufacturing 1,569,859 2,037,426

Broadcasting receiver and other AV device manufacturing 1,389,915 2,019,975

Medical device manufacturing 1,272,577 1,652,737

Measuring, testing, navigation and other precision instrument manufacturing 1,488,856 1,718,628

Spectacle, camera and other optical device manufacturing 1,228,256 1,563,993

Clock and clock part manufacturing 1,407,889 1,680,571

Automobile engine and automobile manufacturing 2,743,072 3,007,059

Automobile body and trailer manufacturing 1,582,018 1,803,163

Automobile part manufacturing 1,683,306 1,871,372

Shipbuilding 2,760,994 2,342,244

Railway equipment manufacturing 2,372,320 2,192,442

Aircraft, spacecraft and parts manufacture 2,976,257 2,823,219

Other transport equipment manufacturing 1,433,096 2,003,426

Furniture manufacturing 1,312,772 1,529,414

Line of Business Factory Office and Other

Unit: won


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2. MANDATORY SEVERANCE PAY

Mandatory severance pay is a benefit guaranteed at all times by law and must be no less

than the average wage for 30 days for each consecutive year of service. If the employment

period is less than one year, the computation is as follows:

severance pay = average wage30 days(number of days of consecutive service 365)

The average wage is calculated by averaging the amount paid over the three months prior

to the date of resignation or retirement, divided by the total number of days in the three

months. If the severance pay calculated in accordance with company regulations is below

the mandatory severance payment, the difference must be paid. In addition, any transfers

made to the national pension fund in advance, from the severance pay, should be deducted

from the final severance payment.

If employment commenced on Feb. 1, 1995 and the date of resignation or retirement was

May 15, 2002, and the average wage was KRW 55,000, the length of service is 7 years, 3

months and 15 days + 1 day. In this case:

7 years55,000 won30 days = 11,550,000 won

3 months55,000 won30 days / 12 months = 412,500 won

16 days55,000 won30 days / 365 days =72,329 wonTherefore, the total amount of severance pay is 12,034,829 won

3. INSURANCE PREMIUMS

Any premiseswith one full-timeemployee ormore



Any corporation, pro-fessional businessestablishment and soleproprietor employingone full-time employeeor more, and anygeneral businessestablishment or soleproprietor employingfive full-timeemployees or more

0.45% of thetotal wage

-2.105% of thestandardmonthlyremuneration

7.055%

0.7% to 1.3% ofthe totalwage

0.4% to31.7% of thetotal wage

2.105% of thestandardmonthlyremuneration

7.705%~39.605%

1.15% to 1.75%

of the totalwage

0.4% to 31.7%

of the totalwage

4.21% of thestandardmonthlyremuneration

14.76%~46.66%

Annually; lumpsum in advanceor4installments

Annually; lumpsum in advanceor4installments

On the 10th ofeach month

Mandatory

applicable

premises

Total

premiums

Payment

EmploymentInsurance

National HealthInsurance

National PensionScheme

TotalWorkmens

CompensationInsurance

Paid by the

employee

Paid by the

employer

Premium 4.5% of the standard

monthlyremuneration

9% of the standardmonthlyremuneration

On the 10th ofeach month

4.5% of the standardmonthlyremuneration


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. Logistics Expenses

1. LAND TRANSPORTATION

1) By Rail

Source: Office of Korea National Railroad


2) By Road

Source: Seoul Freight Forwarders Associatio

Note: Autonomic Fare System since Jan. 1, 1998 (Transportation costs differ depending on the company since Jan. 1, 1998)

Refer to the won-dollar exchange rate table at the end of chapter five

12 13

Less than10 900 1,200 1,600 1,900

15 1,200 1,600 2,100 2,350

20 1,500 1,950 2,500 2,750

25 1,800 2,300 2,850 3,200

30 2,100 2,650 3,200 3,600

35 2,400 3,000 3,600 4,000

40 2,750 3,300 4,000 4,450

45 3,050 3,700 4,350 4,850

50 3,350 4,000 4,750 5,250

55 3,650 4,350 5,100 5,700

60 3,950 4,700 5,500 6,100

65 4,300 5,050 5,850 6,500

70 4,600 5,400 6,250 6,900

75 4,900 5,750 6,600 7,350

80 5,200 6,100 7,000 7,750

85 5,500 6,450 7,350 8,200

90 5,800 6,800 7,750 8,600

95 6,100 7,100 8,100 9,000

100 6,400 7,450 8,500 9,400

Quantity Up to 200km Up to 300km Up to 400km Over 401km

Up to

2 Tons

Up to

5 Tons

Up to

7 Tons

Up to

10 Tons

Up to

12 Tons

every 0.5ton

over 12 TonsDistance

Unit: won

Unit: won

Up to 10km 26,130 38,550 50,380 70,430 80,990 1,920

Up to 30km 43,060 63,210 81,840 108,340 122,040 2,870

Up to 50km 56,400 82,010 106,430 140,350 157,700 3,720

Up to 70km 62,380 92,070 122,150 159,040 178,060 4,120

Up to 100km 70,800 106,500 142,740 182,850 203,900 4,840

Up to 200km 108,310 145,580 185,160 236,280 266,150 6,310

Up to 350km 148,920 196,170 240,790 295,300 330,470 7,880

Up to 460km 180,520 237,830 287,510 350,020 389,500 9,320

Up to 510km 193,150 254,510 306,210 373,850 413,100 9,890

every 50km over 510km 9,920 15,420 18,020 20,930 22,190 540


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3) Containers

< Freight Tariffs for Containers (Return) >

Source: Korea International Trade Association


2. SEA TRANSPORTATION

Source: Coastal Shipping Tariffs, Hanjin Transportation Co., Ltd.

Note: V.A.T. not included


Incheon - Seoul 176,000 158,000

Incheon - Busan 898,000 808,000

Incheon - Daegu 616,000 554,000

Incheon - Gwangju 629,000 566,000

Incheon - Cheonan 363,000 328,000

Incheon - Daejeon 492,000 443,000

Incheon - Chuncheon 439,000 395,000

Busan - Seoul 863,000 777,000

Busan - Daegu 393,000 354,000

Busan - Gwangju 537,000 483,000

Busan - Daejeon 548,000 493,000

Busan - Cheonan 616,000 537,000

Busan - Chuncheon 1,004,000 904,000

40FT 20FT

Busan Incheon20 FT 249,000

Container CY/ CY40 FT 298,000

Incheon Busan20 FT 196,000


BusanGwangyang 20 FT 125,000 Container CY/ CY40 FT 185,000

Gwangyang Busan20 FT 125,000


Gwangyang Incheon20 FT 190,000


IncheonGwangyang20 FT 170,000


Routes Size Tariff

Unit: won

Unit: won


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Source: Logispia (www.logispia.net): KL-Nets portal site specializing in logistics

Note: The above tariffs are approximations only. Because tariffs vary according to shipping companies,type of freight and quantities

3. AIR TRANSPORTATION EXPENSES

Note: The above tariffs are approximations only. Tariffs vary according to airline companies,discount rates for specific items, and type of goods

14 15

New York 3,490 4,650

Los Angeles 1,995 2,515

Rotterdam 1,525 3,050

Hamburg 1,525 3,050Fukuoka 650 800

Kobe 550 700

Yokohama 550 700

Shanghai 250 450

Dalian 250 450

Hong Kong 250 550

Sydney 1,050 2,100

Singapore 600 1,200

Dubai 1,300 2,600

Destination 20FT 40FT

New York 49.4 4.5 4.15 4.0 4.0

San Francisco 49.4 3.8 3.5 3.4 3.3

London 64.9 7.6 6.6 6.1 5.1

Paris 64.9 7.6 6.6 6.1 5.1Frankfurt 64.9 7.6 6.6 6.1 5.1

Tokyo 29.0 1.4 - - -

Osaka 29.0 1.2 - - -

Shanghai 32.1 2.9 2.7 2.5 -

Sydney 52.0 6.7 6.2 5.3 -

Singapore 32.1 4.3 4.0 3.4 -

Dubai 64.9 7.9 - - -

Destination ~45 45+ 100+ 300+ 500+

Unit: US$/kg

Unit: US$


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4. SPECIAL DELIVERY TARIFFS

A special delivery service is classified as same day delivery and next day delivery.

Approximations are as follows:

Source: Express Business Headquarters, Hanjin Co., Ltd.

Note: 1)Outside Seoul means Seoul Metropolitan Area, including Bundang, Pyeongchon, Ilsan, Gwangmyeong, etc.


Source: Express Business Headquarter, Hanjin Co., Ltd.

Note: To islands: 4,500 won is added to the basic rate (Delivery service not available for Type D)

Areas: Seoul Metropolitan area, Chungcheong-do, Gangwon-do, Yeongnam, Honam and Jeju Island


In the above table, if the weight of a parcel is heavier than its size limit, the weight applies

for billing. Likewise, if size is bigger than its weight limit, size applies.

Weight 1kg or less 10kg or less 20kg or less 30kg or less 40kg or less

Size(length+width+height)

Within thesame area

To another area

Jeju Island

Light-weight Small parcels Medium parcels Large parcels Extra Large parcels

Type S Type A Type B Type C Type DClassification

Within Seoul 8,000 10,000

- Standard Freight (Weight: within 30kg, Size: The total of

length, width, and height of the box within 160cm)

12,000 - Same terms apply to cases for more than one items and

other extra charge for both same day delivery and next

day delivery

In the same area To another area Remarks

Unit: won

Outside Seoul

(Seoul Metro-

politan Area)1)

Unit: won

60cm or less 120cm or less 140cm or less 160cm or less 200cm or less

5,000 6,000 7,000 8,000 15,000

6,000 7,000 8,000 9,000 20,000

8,000 9,000 10,000 11,000 25,000


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. Public Utilities Charges

1. ELECTRICITY

1) Industrial Power Contracted for less than 300 kW

Source: KEPCO (Korea Electric Power Corporation, www.kepco.co.kr)

Note: High Voltage A: Standard Voltage Range between 3,300V and 66,000V / High Voltage B: Standard Voltage 154,000V

Option 1: Lower basic charge but higher consumption charge. Suitable for facilities using power for less than

200 hours per monthOption 2: Suitable for facilities using power for 200 hours to 500 hours per month


2) Industrial Power Contracted for between 300kW and 1,000 kW

Note: Midnight: 22:00-08:00, Daytime: 08:00-18:00, Evening: 18:00-22:00


16 17

Low Voltage Power 4,150 63.8 48.1 51.9

Option 1 4,400 63.5 48.0 51.4

Option 2 5,060 60.1 44.6 48.2

Option 1 4,060 62.6 47.2 50.6

Option 2 4,690 59.4 43.9 47.5

Basic ChargePower Consumption (won/kWh)

(won/kW)Classification

Midnight 32.5 32.5 32.5 32.5

Option1 4,400 Daytime 88.2 60.6 50.3 56.8

High Evening 60.5 50.3 60.6 68.1

Voltage A Midnight 29.2 29.2 29.2 29.2

Option2 5,070 Day time 84.9 57.2 47.0 53.4

Evening 57.2 47.0 57.2 64.8

Midnight 32.2 32.2 32.2 32.2

Option1 4,060 Day time 85.4 58.7 48.7 54.9

High Evening 58.7 48.7 58.7 65.9

Voltage B Midnight 28.9 28.9 28.9 28.9

Option2 4,690 Day time 82.1 55.5 45.5 51.8

Evening 55.5 45.5 55.5 62.6

Power Consumption (won/kWh)

Winter(October~March)

Summer

(July, August)

Time

Basic

Charge

(won/kW)

Spring, Autumn

April, May,September

June

Classification

Summer

(July, August)

Winter

(October~March)

Spring, Autumn

(April~June, September)

HighVoltage A

HighVoltage B

Unit: won

Unit: won


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3) Industrial Power Contracted for over 1,000 kW

Note: High Voltage C: Standard Voltage of 345,000V and above


Light 32.5 32.5 32.5

Option 1 4,400 Medium 69.2 50.8 58.6

High Maximum 118.6 69.2 81.3

Voltage A Light 29.1 29.1 29.1

Option 2 5,070 Medium 65.9 47.6 55.2

Maximum 115.2 65.9 7.9

Light 32.2 32.2 32.2

Option 1 4,060 Medium 68.8 50.5 58.2

Maximum 118.2 68.8 80.7

Light 29.8 29.8 29.8High

Option 2 4,500 Medium 67.2 48.6 56.2Voltage B

Maximum 117.9 67.2 79.3

Light 28.4 28.4 28.4

Option 3 4,990 Medium 64.5 46.6 54.1

Maximum 113.1 64.5 76.1

Light 31.8 31.8 31.8

Option 1 4,020 Medium 68.5 50.2 57.7

Maximum 117.6 68.5 80.3

HighLight 30.2 30.2 30.2

Voltage COption 2 4,590 Medium 68.4 49.5 57.1

Maximum 117.5 68.4 79.8

Light 28.0 28.0 28.0

Option 3 4,940 Medium 64.2 46.3 53.6

Maximum 112.5 64.2 75.7

Power Consumption (won/kWh)

Winter

(October~March)

Spring, Autumn(April~June,September)

Summer

(July, August)

Electrical Load

Time Zone

Basic Charge

(won/kW)Classification

Light 22:00~08:00 22:00~08:00

Medium08:00~10:00, 12:00~14:00 08:00~16:00

17:00~22:00 20:00~22:00

Maximum 10:00~12:00, 14:00~17:00 16:00~20:00

Load Spring, Summer, Autumn Winter

Unit: won


18/34

2. WATER RATES

Source: Statistics on 2002 Water Supply, Dec. 2003, Ministry of EnvironmentNote: Refer to the won-dollar exchange rate table at the end of chapter five

3. WASTE MANAGEMENT EXPENSES

< Unit Cost for Waste Management according to Categories >

Source: Ministry of Environment, www.me.go.kr


In addition, the unit cost for waste management for construction wastes is 23,000 won/ton

and for infectious waste is 773,000 won/ton

4. COMMUNICATION EXPENSES

1) Postage

Regular mail

Source: Ministry of Information and Communication


18 19

506 592 440.8 511.3 501.9 406.9 657.4 517.9

Seoul Busan Daegu Incheon Gwangju Daejeon Ulsan Provinces (Average)

Waste oils 271,000 Waste halogenated organic solvents 526,000

Waste non-alogenated 271,000 Waste synthetic resins and rubbers 271,000organic solvents

Wastes from paints, lacquers 305,000 Waste agrichemical, waste toxicsubstance, asbestos(dusts and fibers)

526,000

Waste acidic or297,000 Slag (designated waste) 146,000

basic solutions, Waste alkali

Other wastes from266,000

General wastes from business67,000

business premises for incineration premises for burial

Other wastes designated for burial 98,000residues resulting from

205,000the treatment of animal waxes

residues resulting from149,000 Waste lubricant oils 45,000

the treatment of vegetable waxes

Waste batteries 13,000 Waste drum 200

Glass waste 21,000 Waste cable 21,000

Sawdust out of 21,000 Waste pneumatic tires 65,000

Wood waste and scrap

Waste solid plastic container 32,000 Waste synthetic resin 31,000

Category of Wastes Category of Wastes

Up to 5g 160 240

Standard Over 5g up to 25g 190 280

Over 25g up to 50g 210 310

Non-StandardUp to 50g 280 420

every 50g thereafter 90 130

Size Weight Regular Post Express Post

Unit: won/

Unit: won/ton

Unit: won

Unit Price forWaste

Management

Unit Price forWaste

Management


19/34

Parcel Post



2) Telephone Charges

Wired TelephoneThe connection fee is 60,000 won, including V.A.T. and the basic monthly charge is 5,200

won, not including V.A.T.

-Regular Time Zone (08:00 21:00 weekdays & Saturdays): 39 won for every 180 seconds

-Discount Time Zone (Public Holidays and 21:00 ~ 24:00, 00:00 ~ 08:00 weekdays &

Saturdays) 39 won for every 258 seconds

Regular ParcelSame Zone 1,500 2,000 2,500 3,500 4,500

Different Zone 2,000 2,500 3,000 4,000 5,000

Express ParcelSame Zone 2,500 3,000 3,500 4,500 5,500

Different Zone 3,000 3,500 4,000 5,000 6,000

Destination 2kg 5kg 10kg 20kg 30kg

Separate10 items 50 items 100 items

Postage -or more or more or more

Post OfficesPayment

Subsequent 100 items 250 items 500 itemsPostage -

or more or more or morePayment

Separate

Postage 2~5 items 6~9 items 10~49 items

Collected from Payment

place of Subsequent10 items 50 items 100 items 500 itemsbusiness Postageor more or more or more or morePayment

Parcels received at 5% 10% 15% 20%

Value up to 1 million won 50% added to the basic postage

Insured Parcels up to 2 million won 80% added to the basic postage

up to 3 million won 100% added to the basic postage

Fragile Parcels Includes fragile, 50% added to the basic postage

chilled and frozen goods

Type of Parcel Additional Charge Remarks

Unit: won

Insured for 100,000

won and over

Parcels must be picked

up at point of origin

50 itemsor more


20/34

< Long Distance Calls >

Source: KT (tel.up2.co.kr)Note: Refer to the won-dollar exchange rate table at the end of chapter five

Internet Access

Source: KT (megapass.up2.co.kr)

Note: Megapass Lite


Mobile Phones

Different companies charge differently. The figures below are approximate for using a

mobile for more than 360 minutes per month.

Source: SK Telecom (www.speed011.co.kr)


5. GAS RATES

20 21

Monthly Fee 25,500 27,000 28,500 30,000 ADSL, VDSL etc.

Modem Rental per month 3,000 3,000 3,000 10,000 Free of charge after 3 years

Installation Fee 30,000 (At the time of connection), 10,000 (To transfer the connection)

3 year contract 2 year contract 1 year contractNo contract Remarks

(15% discount) (10% discount) (5% discount)

Seoul 477.01 458.03 414.41 259.54 365.99

Gyeonggido 483.27 464.73 420.67 270.16 380.92

Busan 533.42 470.82 425.75 317.98 389.62

Daegu 524.13 461.53 463.63 314.08 381.22

Changwon 525.22 462.77 411.18 312.22 423.63

Gwangju 515.06 477.61 438.79 311.38 388.04

Yeosu 561.59 494.99 494.19 301.87 416.73

Daejeon 523.92 478.04 461.32 303.74 389.95

Wonju 584.82 509.65 507.65 380.95 484.05

RegionHeating for General Use Air-conditioning Industrial

Business Use Business Use 1 Business Use 2 (May-September) Use

Premium 52,000 17 / 11 / 9 380 minutes of local calls

Premium Plus 55,000 17 / 11 / 9

380 minutes of local calls, 400KB of

data & 30 text messages per month

Billing System Basic Monthly Rate Call Charge Included in Basic Rate

Regular 39/180 seconds 14.5 won/10 seconds

Discount 39/200 seconds 13.1 won/10 seconds

Special Discount 39/258 seconds 10.2 won/10 seconds

Billing Time Zone Zone 1 (Billing Distance Within 30km) Zone 2 (Billing Distance Outside of 30km)

Unit: won

Unit: won

Unit: won

Unit: won/

Source: Korea City Gas Association (www.citygas.or.kr)



21/34

. Living Expenses

1. HOUSING

About 60% of foreigners in Korea live in Itaewon, Hannam-dong, and Dongbuichon-

dong, in Yongsan-gu, Seoul. These areas seem to be preferred because they are near the

city center and create a comfortable living environment. Quite a few high-ranking Korean

Government officials and foreign ambassadors also live in these areas. In Itaewon there

are apartments and villas as well as luxurious residences with gardens. It is also adjacent to

the Yongsan American Army base. Other residential areas for foreigners include

Seongbuk-dong, Pyeongchang-dong and Yeonhi-dong. Seongbuk-dong is very near

Mount Bukhan and has picturesque views and clear air. Pyeongchang-dong, is within

walking distance of Mount Bukhan and also boasts superb views and a convenient living

environment. Yeonhi-dong benefits from being near schools for foreign children, such as

Seoul Foreign School and the British and Chinese schools. Most foreigners seem to prefer

housing in the order of apartments, houses and villas.

1) Rents in the Seoul Area

Source: Real estate related websitesNote: In the case of monthly rent, sometimes a deposit is required or, alternatively, a deposit can be paid in order to decrease the

monthly rent


22 pyeong 3/1 16,000~17,000 150~195

31 pyeong 3/2 24,000~26,000 200~250Itaewon-dong

48 pyeong 4/2 38,000~40,000 300~350

53 pyeong 4/2 40,000~42,000 330~38025 pyeong 3/1 15,000~16,000 100~120

Ichon-dong 33 pyeong 3/2 23,000~26,000 170~200

40 pyeong 4/2 29,000~33,000 240~260

21 pyeong 2/1 11,500~15,000 120~130

28 pyeong 2/1 17,500~21,000 150~180Hannam-dong

33 pyeong 3/2 23,000~26,000 180~230

42 pyeong 3/2 28,000~35,000 250~300

25 pyeong 3/1 19,000~20,000 100~150

Samseong-dong 33 pyeong 3/1 28,000~30,000 170~200

44 pyeong 4/2 34,000~39,000 250~300

SizeNo. of (Jeonse)

Monthly RentBedrooms/Bathrooms Property Deposit

Unit: 10,000 won


22/34



22 23

38 pyeong 3/1 190

50 pyeong 3/2 320Itaewon-dong

80 pyeong 4/2 600

97 pyeong 4/2 90034 pyeong 3/2 230

41 pyeong 3/2 300Hannam-dong

62 pyeong 4/2 450

82 pyeong 4/2 800

43 pyeong 3/2 250

Seongbuk-dong 50 pyeong 3/2 450

85 pyeong 3/3 750

113 pyeong 4/3 1,200

39 pyeong 3/2 100Pyeongchang-dong

71 pyeong 4/2 600

108 pyeong 5/5 850

25 pyeong 3/1 100

Samseong-dong 50 pyeong 4/2 300

95 pyeong 5/2 600

Size No. of Bedrooms/Bathrooms Monthly Rent

Itaewon-dong 50 pyeong 4/2 500

103 pyeong 4/4 800

Hannam-dong93 pyeong 5/2 800

125 pyeong 7/3 900

Pyeongchang-dong70 pyeong 4/3 700

100 pyeong 4/3 1,100

Samseong-dong62 pyeong 5/1 400

140 pyeong 5/2 800

Yeonhi-dong60 pyeong 4/2 500

90 pyeong 5/4 800

Size No. of Bedrooms/Bathrooms Monthly Rent

Unit: 10,000 won

Unit: 10,000 won


23/34

2) Housing according to Region

Note: 1)In the Jeonse system, which is unique to Korea, the lessee pays the deposit amount (about 50%~70% of the market value ofthe property) in advance and then does not pay any rent. The deposit is fully refunded at the end of the contract period

2)The monthly rent plus deposit option is not necessarily parallel with market values.Refer to the won-dollar exchange rate table at the end of chapter five

Most rental properties also require a deposit. For example, the lessee of a 28 pyeong

apartment with 3 bedrooms and 1 bathroom pays an initial deposit of 50-60 million wonand then a monthly rent of 200,000~300,000 won. The deposit is fully refunded at the end

of the contract period.

2. HOTEL EXPENSES

In Seoul, a room in a 5-star hotel costs approximately 350,000 won per night. For first

class hotels (4-star) it is 140,000 won per night and for second class hotels (3-star) it is

usually less than 100,000 won.

28 3/1 8,000~9,000 20~30 (5,000~6,000)

Busan 48 4/3 10,000~14,000 50 (7,000)

60 5/3 11,000~15,000 70 (6,000)

Gwangju24 2/1 4,000~4,500 35 (1,500)

47 4/2 7,000~8,000 60 (3,000)

24 3/1 8,000~9,000 30~40 (2,500~4,000)

Daejeon 32 3/2 10,000~12,000 40~60 (3,000~7,000)

49 4/2 15,000~17,000 30~40 (9,000~10,000)

Jeonnam 24 3/1 20 (300)

Jeonbuk24 3/1 2,800~3,000 25 (1,000)

41 4/2 7,700~85,00 100 (1,000)

Gyeongbuk 28 3/2 5,000~5,600 45 (500)

Gyeongnam26 3/1 7,000~8,000 25 (4,500)

32 3/2 9,500~10,000 40 (5,000)

28 3/2 5,500~6,500 30~50 (1,000~3,000)

Gyeonggi 44 4/2 7,000~8,000 45~60 (3,000~4,000)

68 5/2 9,000~10,500 80~100 (1,000~2,000)

RegionSize No. of Jeonse Monthly Rent

(unit: pyeong) Bedrooms/Bathrooms (Deposit System)1) (Deposit Amount)2)

Unit: 10,000 won


24/34


3. BASIC EXPENSES

Source: First Quarter, 2004, Korea Price Information


Source: Websites for restaurants and the above brands


24 25

Coke 600 740

Orange Juice 1.5 2,110

Mineral Water 500 350

Beef (Tenderloin) 600g 40,000

Pork 600g 7,000

Chicken 1kg 3,500

Apple 1 3,500

Kerosene 1 718

Diesel Oil 1 853

Unleaded Gasoline 1 1,358

Cigarettes 1 packet (20) 1,500~2,000

Unit Price

Regular Restaurant Lunch 5,000~8,000

First Class Hotel restaurant Lunch (Buffet) 25,000~50,000

Regular Chinese Restaurants Jajangmyeon 3,500

Special Chinese Restaurants Lunch (Set Menu) 15,000~35,000

Regular Japanese Restaurants Hot Fish Stew 10,000

Special Japanese Restaurants Lunch (Set Menu) 15,000~35,000

Regular Korean Restaurants Rice & Side Dishes 5,000~8,000

Special Korean Restaurants Lunch (Set Menu) 25,000~50,000

Pizza Hut Family Size Pizza 24,900~28,900

Bar Budweiser 1 bottle 4,000~8,000

McDonalds Hamburger 1,000~3,600

Unit Price

COEX Inter-Continental 340,000 Academy House 80,000 Airport 93,000

Hyatt 370,000 Best Western New Seoul 160,000 Astoria 75,000

Hilton 340,000 Bugak Park 130,000 Boorim 78,000

JW Marriott 400,000 Centro 140,000 Brown 62,000

Lotte 360,000 Crown 146,410 Central 85,000

Renaissance 370,000 Hamilton 135,000 City Palace 90,000

Sheraton Walker Hill 360,000 Itae won 140,000 Dynasty 120,000

Shilla 360,000 Jongno Crown 143,000 Green Park 65,000

Premium Hotels First Class Hotels Second Class Hotels

Name Room Rate Name Room Rate Name Room Rate

Unit: won/night

Unit: won

Unit: won


25/34

4. MEDICAL EXPENSES

There are nine general hospitals and more than 10 private hospitals that run clinics for

foreigners in Korea.

Source: International Clinic, Severance Hospital


5. TUITION FOR FOREIGN SCHOOLS

There are more than 60 foreign schools in Korea, which provide education for the

American, British, Japanese, French, German and Chinese communities. Sixteen schools

are located in Seoul or nearby. Generally, students have to hold a foreign passport and, at

least one parent is interviewed by school staff. The following is a summary of the curricula

and tuition fees of some of the foreign schools in Seoul.

1) Seoul Foreign School

American Curriculum: Pre-School (Kindergarten), Elementary, Middle, and High School.

British Curriculum: Offers an education based on the National Curriculum of England and Wales.

*Homepage: www.sfs.or.kr

*Phone: 82-2-320-3100, Fax: 82-2-322-4105


Pre-school 5,900,000 won and US$2,700

Elementary School 10,900,000 won and US$5,200

Middle School 1,400,000 won and US$5,400

High School 14,750,000 won and US$6,000

British School 11,900,000 won and US$6,100

- Application Fee :

220,000 won or US$180

- Registration Fee:

440,000 won or US$365

- Annual School Bus Fee : 1,920,000 won or US$1,600

- High School Senior Fee : 204,000 won or US$170

- Early Exam Fee(per exam) : 60,000 won or US$50

- IB Fee-Junior Year : 660,000 won or US$550

- IB Fee-Senior Year : 1,320,000 won or US$1,100

Other Expenses

Admission Fees Tuition Fee

First medical examination 55,920

Second medical examination 51,140

734,000

674,000

624,000

Hospital room rates per day 580,000

354,000

276,000

Twin room 195,000

Treatment Fees

Unit: won

Single room

VIP room


26/34

2) Seoul International School

American Curriculum: Pre-School (Kindergarten), Elementary, Middle, and High School.

*Home page: www.sis-lhs.gyeonggi.kr

*Phone: 82-2-2233-4551, Fax: 82-31-759-5133Note: Refer to the won-dollar exchange rate table at the end of chapter five

3) Korea International School

American Curriculum: Offers Kindergarten, Elementary, Middle and High School.

*Home page: www.kis.or.kr*Phone: 82-2-561-0509, Fax: 82-2-576-0709Note: 1)Initial Registration Fee and Admission Testing Fee

2)One-way or half-year bus fare options are not available.


4) Lycee Francais de Seoul

French Curriculum: Offers Kindergarten, Elementary, Middle and High School.

*Home page : lyceeseoul.ifrance.com, www.lfseoul.org

*Phone: 82-2-535-1158, Fax: 82-2-593-5444


26 27

Pre-school 8,590,000 won and US$4,100

Elementary School 9,340,000 won and US$4,500Middle School 10,390,000 won and US$5,000


Admission Fee Tuition Fee

- Transportation Fare (Option) : US$1,500

- Semester Exam : 60,000 won

- A.P Exam Fee : 200,000 won

- High School Graduation Fee : 200,000 won

- Book DepositElementary School : 100,000 won

Middle School : 150,000 wonHigh School : 200,000 won

420,000 won (or US$350)

Other Expenses

Kindergarten 8,800,000 won and US$5,800

Elementary School 8,800,000 won and US$5,800

Middle School 9,900,000 won and US$6,500



- Bus Fare 1,850,000won2)

- Book Deposit Fee: 200,000 won

700,000 won1)

Other Expenses

Kindergarten 6,668,000

Elementary School 6,668,000Middle School 9,064,000

High School 9,804,000


- Annual School Bus Fare : 1,600,000 won

None

Other Expenses

Unit: won


27/34

5) Deutsche Schule Seoul

German Curriculum: Kindergarten and Elementary Schools

*Home page : www.dsseoul.org

*Phone: 82-2-792-0797, Fax : 82-2-797-1954


6) Japanese School

Japanese Curriculum: Kindergarten, Elementary School, Middle School

*Home page: http://sjshp.or.kr

*Phone: 82-2-574-0348, Fax: 82-2-572-6972


For non-members of Seoul-Japan Club (SJC), admission fee and tuition fee are higher than

shown in above table.

Kindergarten 200,000

Elementary School 160,000

Middle School 160,000


Other Expenses- Heating Expenses (November-February): 30,000 per month

- School Bus Fare: 105,000 per month

Kindergarten 110,000 5,500,000

Elementary SchoolMiddle School 700,000 12,000,000

High School


- Annual School Bus Fare : 2,500,000 won- Lunch meal allowance is additionally required

Other Expenses

Unit: won

Unit: won


28/34

6. TRANSPORTATION EXPENSES

1) Airfares

Domestic airfares in Korea are affected by both seasonal and competitive factors. For

comparison purposes, please see the table below. A departure tax of 5,000 won is levied on

all departures from Incheon International Airport and 4,000 won for domestic terminals.

Source: Public Utilities Charge, Korea Price Information

Note: Based on the Tariffs of Korean Air (KAL)


2) Railroad

The following is a schedule of Korean railroad fares:

28 29

Seoul / Incheon-Busan 62,400 66,500 69,900 82,400 86,500 89,900

Seoul / Incheon-Jeju 73,400 78,400 82,400 93,400 98,400 102,400

Jeju-Seoul / Incheon 82,300 103,300

Seoul / Incheon-Daegu 54,400 58,000 60,900 74,400 78,000 80,900

Seoul-Gwangju 54,900 58,500 61,400 74,900 78,500 81,400

Seoul-Ulsan 61,900 65,900 69,400 81,900 85,900 89,400

Seoul-Jinju / Sacheon 65,400 69,900 73,400 85,400 89,900 93,400

Seoul-Pohang 58,400 62,500 65,400 78,400 82,500 85,400

Seoul-Yangyang 51,400 55,000 57,900 71,400 75,000 77,900

Busan-Jeju 56,900 60,500 63,400 76,900 80,500 83,400

Busan-Yangyang 61,900 66,000 69,400 81,900 86,000 89,400

Gwangju-Jeju 49,900 53,500 56,400 69,900 73,500 76,400

Daegu-Jeju 62,400 66,900 70,400 82,400 86,900 90,400

Cheongju-Jeju 64,400 68,900 72,400 84,400 88,900 92,400

Ulsan-Jeju 61,400 65,400 68,900 81,400 85,400 88,900

Gunsan-Jeju 54,900 58,500 61,400 74,900 78,500 81,400

Seoul-Yeosu / Suncheon 62,900 67,400 70,900 - - -

Yeosu / Suncheon-Jeju 50,900 54,500 57,400 - - -

Jinju / Sacheon-Jeju 55,900 59,500 62,400 75,900 79,500 82,400

Wonju / Hoengseong-Jeju 74,800 80,400 84,300 94,800 100,400 104,300

Mokpo-Jeju 44,400 47,500 49,900 - - -

Economy Class Business Class

Route Discount Rate Normal Rate High Season Rate Discount Rate Normal Rate High Season Rate

(Mon ~Thurs) (Fri ~Sun) (Mon~Thurs) (Fri~Sun)

Seoul 10,600 10,600 11,400 19,700 34,900 39,700 43,500 45,000

Yongsan 10,600 11,100 19,400 34,600 39,400 43,200 44,700

Gwangmyeong 10,600 17,300 32,800 37,700 41,500 42,900

Cheonan,Asan 10,600 23,500 28,300 32,100 33,600

Daejeon 15,700 21,000 24,800 26,200

Dongdaegu 10,600 10,600 12,200

Milyang 10,600 10,600

Gupo 10,300

YongsanGwang Cheonan,

DaejeonDong-

Milyang Gupo Busan-myeong Asan daegu

Unit: Won

Source: April, 2004, Office of Korea National Railroad


Unit: won


29/34

Source: Office of Korea National Railroad


3) Express Buses

Domestic express bus fares vary according to destination and class of service.


4) Taxis (Seoul)


Seoul 19,800 23,700 27,000 30,800 35,500 36,900 41,400 36,600

Seodaejeon 10,600 10,600 13,200 18,600 20,000 24,400 19,700

Nonsan 10,600 10,600 14,200 15,900 20,500 15,500

Iksan 10,600 10,600 12,000 17,300 11,600

Jeongeup 10,600 10,600 12,800 10,600

Songjeongri 10,600 10,600 -

Naju 10,600 -

SeoNonsan Iksan

Jeon SongNaju Mokpo

Gwang-daejeon -geup -jeongri -ju

Pyeongtaek 4,700 Masan 24,400 Wonju 8,100 Nonsan 13,700

Cheonan 5,600 Changwon 24,700 Jecheon 10,500 Jeonju 15,400

Cheongju 8,200 Jinju 21,300 Gangreung 15,800 Gunsan 16,100

Daejeon 10,200 Sokcho 18,800 Namwon 19,100

Gimcheon 15,200 Gwangju 20,800

Daegu 19,400 Mokpo 24,000

Gyeongju 23,400 Suncheon 25,600

Ulsan 26,100 Yeosu 28,000

Busan 27,500

Gyeongbu Line Guma Line Yeongdong Line Honam Line

Unit: won

Unit: won

Ordinary Taxi 1,600 / 2km 100 / 168m 100 / 41sec

Deluxe Taxi 4,000 / 3km 200 / 205m 200 / 50sec

Van (Jumbo) Taxi 4,000 / 3Km 200 / 205m 200 / 50sec

Classification Basic Charge Charge by Distance Charge by Time

Unit: won


30/34

5) City Buses (Seoul)

Note: Bus Tariffs effective as of July, 2004


6) Subway Fares

There is a flat fare of 800 won for trips within the city zones that are less than 12 kms

long. For trips between 12 and 42 km, there is a surcharge of 100 won for every 6 km; and

for trips greater than 42 km, another 100 won is added for every 12 km.

Note: Tariffs as of July, 2004


7. CULTURAL EXPENSES

Movie tickets cost 7,000 won per showing. Drama, live performances and concerts vary

according to the event.

Source: Korean Culture & Arts Foundation


30 31

Main Line, Branch Line Ordinary Bus 800

Circular Bus, Village Bus 500

Major Main Line Bus 800~1,000

Wide Area Bus 1,400Limousine Bus (Airport Bus) 6,500~12,000

Classification Fare

1Incheon City Hall 1,200

Suwon 1,400

2Guro Industrial Complex 800

Gueui 800

3Yeonshinnae 800

Suseo 1,000

4Mia 800

Sadang 800

Line No. Names of Stations Fare

Ordinary 20,000

Age College Students 15,000

Teenagers 10,000

R seatLarge Theatre 30,000~50,000

Small Theatre 20,000

Seat S seatLarge Theatre 20,000~30,000

Small Theatre 15,000

A seatLarge Theatre

20,000Small Theatre

Special Events All Seats 10,000~20,000

Ticket Price

Unit: won

Unit: won

Unit: won

Classification


31/34

Green fees at Korean golf courses vary considerably and are determined by types of

membership, and regarding reciprocal privileges for guests. Often the number of holes

played will also affect the fee. Most clubs in the greater Seoul metropolitan, charge green

fees averaging:

Members: 25,000 won per person for both weekdays and weekends

Non-Members: Weekdays: 140,000 won per personWeekends: 180,000 won per person

Cart Rental: 80,000 won each

Caddie fee: 80,000 per caddie (tipping expected)

8. INTEREST RATES

1) Market Rates

Source: Bank of Korea

2) Loan Rates


Unit: won,%

6.1 6.23 5.48 5.32 4.82 4.31 4.41 4.64 4.54

7.0 7.01 6.29 5.93 5.39 5.31 5.59 5.44 5.07

Bonds 02.1Q 02.2Q 02.3Q 02.4Q 03.1Q 03.2Q 03.3Q 03.4Q May,2004

Kookmin Bank 0.5 million 7.75~8.49

Koram Bank 0.5 million 7.9~15

Korea Exchange Bank 0.3 million 8.0~11.5

Korea Industrial Bank 0.5 million 8.20~11.70

Hana Bank 0.5 million 8.50~11.90

Korea Citibank 0.5 million 8.90~17.00

Limit Rate

Unit: %

3 Year Maturity

Government Bond

3 Year MaturityCorporate Bond

December 2002 December 2003 November 2004

Basic Rate 1,200.40 1,197.80 1,047.90

< Won-dollar exchange rate over the last three years>


32/34

32 33

HEAD OFFICE

Seoul, KOREA

300-9, Yomgok-dong,

Seocho-gu, Seoul, Korea

Tel: (82-2) 3460-7543/7545

Fax: (82-2) 3460-7946/7

www.investkorea.org

NORTH AMERICA

New York, U.S.A

Tel: (1-212) 826-0900

Fax: (1-212) 888-4930

Los Angeles, U.S.A

Tel: (1-323) 954-9500

Fax: (1-323) 954-1707

Chicago, U.S.A

Tel: (1-312) 644-4323Fax: (1-312) 644-4879

Dallas, U.S.A

Tel: (1-972) 243-9300

Fax: (1-972) 243-9301

Washington D.C. , U.S.ATel: (1-202) 857-7919

Fax: (1-202) 857-7923

San Francisco, U.S.A

Tel: (1-650) 571-8483

Fax: (1-650) 571-8065

Atlanta, U.S.A

Tel: (1-770) 508-0808

Fax: (1-770) 508-0801

Miami, U.S.ATel: (1-305) 374-4648

Fax: (1-305) 375-9332

Detroit, U.S.A

Tel: (1-248) 355-4911

Fax: (1-248) 355-9002

Toronto, CANADA

Tel: (1-416) 368-3399

Fax: (1-416) 368-2893

Vancouver, CANADA

Tel: (1-604) 683-1820Fax: (1-604) 687-6249

EUROPE

Frankfurt, GERMANY

Tel: (49-69) 242-9920

Fax: (49-69) 25-3589

Berlin, GERMANYTel: (49-30) 2096-2637

Fax: (49-30) 2096-2635

Hamburg, GERMANY

Tel: (49-40) 23-2235/2638

Fax: (49-40) 23-3998

Munich, GERMANY

Tel: (49-89) 2424-2630

Fax: (49-89) 2424-2639

Paris, FRANCE

Tel: (33-1) 55-35-88-88Fax: (33-1) 55-35-88-89

London, U.K.

Tel: (44-20) 7491-8057

Fax: (44-20) 7491-7913

Brussels, BELGIUMTel: (32-2) 203-2142

Fax: (32-2) 203-0751

Milano, ITALY

Tel: (39-02) 795147, 795813

Fax: (39-02) 798235

Zurich, SWITZERLAND

Tel: (41-1) 202-1232

Fax: (41-1) 202-4318

Oslo, NORWAYTel: (47) 23 32 76 50/3

Fax: (47) 22 11 02 70

Stockholm, SWEDEN

Tel: (46-8) 30-80-90

Fax: (46-8) 30-61-90

Copenhagen, DENMARK

Tel: (45) 3312-6658

Fax: (45) 3332-6654

Amsterdam, NETHERLANDS

Tel: (31-20) 673-0555Fax: (31-20) 673-6918

Vienna, AUSTRIA

Tel: (43-1) 586-3876Fax: (43-1) 586-3979

Helsinki, FINLAND

Tel: (358-9) 638122

Fax: (358-9) 638611

ASIA & OCEANIA

Singapore

Tel: (65) 6221-3055

Fax: (65) 6223-5850

Sydney , AUSTRALIATel: (61-2) 9299-1790

Fax: (61-2) 9299-1792

Melbourne, AUSTRALIA

Tel: (61-3) 9699-3833Fax: (61-3) 9699-3811

JAPAN

Tokyo

Tel: (81-3) 3214-6951

Fax: (81-3) 3214-6950

Osaka

Tel: (81-6) 6262-3831

Fax: (81-6) 6262-4607

NagoyaTel: (81-52) 561-3936Fax: (81-52) 561-3945

Fukuoka

Tel: (81-92) 473-2005

Fax: (81-92) 473-2007

CHINA

Shanghai

Tel: (86-21) 6219-7592

Fax: (86-21) 6219-6015

Hong Kong

Tel: (85-2) 2545-9500

Fax: (85-2) 2815-0487

Taipei, TAIWAN

Tel: (886-2) 2725-2324Fax: (886-2) 2757-7240

The Invest KOREA global network is at your service


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