South Korea has a moderate cost of living with a Cost of Living Index (CPI) of 58.98, compared to NYC at 100. Groceries are relatively expensive (index: 75.90), while restaurant prices are more affordable (index: 35.09).

The housing market is very expensive, with a Property Price to Income Ratio of 24.12 years. The Rent Index is 16.38, indicating that rental costs are significantly lower than property purchase prices.

The Purchasing Power Index of 115.65 suggests good buying power for residents, indicating that average incomes provide a strong ability to purchase goods and services compared to NYC.

South Korea has a progressive income tax system with rates ranging from 6% to 45%, plus a 10% local inhabitant surtax. A flat tax rate of 19% (20.9% including local tax) is available for eligible foreign workers for a limited period. The standard Value-Added Tax (VAT) rate is 10%. Property taxes vary from 0.07% to 5% annually, with a Comprehensive Real Estate Holding Tax for high-value properties.

South Korea fosters a growing startup ecosystem with supportive government policies and regulatory reforms. However, new regulations, such as the AI Basic Act and platform regulations, are introducing compliance burdens for early-stage startups.

The country offers a comprehensive social security system, including universal healthcare through the National Health Insurance Service (NHIS), which is mandatory for foreigners residing over six months. The mandatory National Pension Scheme (NPS) provides old-age, disability, and survivor benefits. Employment Insurance (EI) offers unemployment benefits for eligible workers who involuntarily lose their jobs.

Deposits in South Korea are protected up to KRW 100,000,000 (approximately USD 68,000 as of May 2026) per depositor by the Korea Deposit Insurance Corporation (KDIC), effective September 1, 2025. The banking sector is highly stable, characterized by strong fundamentals, active regulation, and prudent oversight, as noted by Fitch Ratings.