Cost of Living

Overview

**Income Tax**: Korea uses a progressive system: 6% (up to ₩14M), 15% (₩14–50M), 24% (₩50–88M), 35% (₩88–150M), 38% (₩150–300M), 40% (₩300–500M), 42% (₩500M–1B), 45% (above ₩1B). Local income tax (주민세) adds ~10% on top (i.e., 15% national rate → 16.5% effective). **F-1-D Digital Nomad Visa holders are tax residents and owe Korean income tax on their foreign income** once they exceed 183 days — factor this into financial planning. **Korea-US Tax Treaty**: Exists; US citizens may avoid full double taxation. Check with a Korean CPA (공인회계사) for your specific situation. **Banking**: Open a Korean bank account with your ARC. KEB Hana Bank and Woori Bank have dedicated Foreigner Banking Centers with English-speaking staff. Kakao Bank (app-only) is user-friendly but requires Korean language and existing ARC. **Daily Payments**: Korea is arguably the world's most cashless society. Kakao Pay, Naver Pay, Samsung Pay, and credit/debit cards work virtually everywhere — including street food stalls.