What Americans Living in South Korea Need to Know in 2025

As of 2025, South Korea has become an increasingly popular destination for Americans seeking new experiences abroad. With a vibrant culture, advanced infrastructure, and a growing expat community, it’s essential for Americans living in South Korea to understand key aspects of life in this dynamic country. This guide covers crucial information on demographics, taxation, healthcare, and more to help you navigate your life in South Korea.

By understanding these key aspects, Americans living in South Korea can navigate their new environment more effectively and enjoy a fulfilling expat experience.

Americans living in South Korea: Visa types

Navigating the visa process is a crucial step for Americans seeking permanent residency in South Korea. Below are key visa types that can lead to permanent residency, each tailored to different circumstances.

F-5-1 General Permanent Resident Visa

Who it’s for: Foreign nationals who have resided in South Korea for an extended period on specific visas.

Overview: This visa grants permanent residency to individuals who have lived in South Korea for at least five consecutive years under eligible visa categories.

Requirements:

• Continuous residence in South Korea for a minimum of five years.
• Demonstrated financial stability and good conduct.
• Basic proficiency in the Korean language and understanding of Korean culture.

F-5-2 Spousal Permanent Resident Visa

Who it’s for: Foreign nationals married to South Korean citizens.

Overview: This visa allows spouses of South Korean citizens to obtain permanent residency, facilitating family unity.

Requirements:

• Legally married to a South Korean citizen.
• Proof of a genuine and stable marriage, typically requiring at least two years of marriage.
• Basic knowledge of the Korean language and culture.

F-5-5 High-Value Investor Visa

Who it’s for: Foreign investors who have made significant financial contributions to the South Korean economy.

Overview: This visa is designed for individuals who invest substantial capital and create employment opportunities for South Korean citizens.

Requirements:

• Investment of at least USD 500,000 in a South Korean business.
• Employment of at least five South Korean nationals for a minimum of six months.
• Compliance with the Foreign Investment Promotion Act.

F-5-9 High-Tech Ph.D. Holder Visa

Who it’s for: Individuals holding a Ph.D. in a high-tech industry and employed by a South Korean company.

Overview: This visa aims to attract highly skilled professionals in advanced technological fields to contribute to South Korea’s innovation landscape.

Requirements:

• Ph.D. degree in a high-tech industry.
• Employment with a South Korean company in a relevant field.
• Proof of income meeting a specified threshold.

F-5-16 Point-Based Permanent Resident Visa

Who it’s for: Holders of the F-2-7 visa who have resided in South Korea for a specified period.

Overview: This visa offers a pathway to permanent residency for individuals who have accumulated sufficient points based on factors like education, income, and integration into Korean society.

Requirements:

• Residence in South Korea for at least three years under the F-2-7 visa.
• Accumulation of required points through criteria such as education level, income, and Korean language proficiency.
• Completion of the Korean Immigration and Integration Program (KIIP) or passing the permanent residency exam.

Understanding these visa options can help you determine the most suitable path toward permanent residency in South Korea. It’s advisable to consult with immigration professionals or legal experts to navigate the application process effectively.

How to apply for a South Korean visa as a U.S. citizen

Securing a South Korean visa as a U.S. citizen involves several clear steps. Here’s how you can get started:

1. Choose the right visa type

Identify which permanent residency pathway best fits your situation (such as F-5-1, F-5-2, F-5-5, F-5-9, or F-5-16).

2. Gather required documents

Prepare the essential paperwork, which usually includes:

• A valid U.S. passport
• Completed visa application form
• Proof of eligibility for your chosen visa (like marriage certificates, investment records, or employment contracts)
• Financial statements
• Criminal background checks
• Medical exam results (if requested)
• Evidence of Korean language proficiency

3. Submit your application

File your application at the Korean embassy or consulate in the United States, or at the immigration office in South Korea if you’re already there.

4. Attend an interview (if required)

You may be asked to attend an interview or provide additional documents during the review process.

5. Wait for a decision

Processing times can vary but often take several months. Track your application status online or through the consulate.

6. Finalize your residency

Once approved, follow the instructions to collect your visa and register your residency in South Korea.

Healthcare options for Americans living in South Korea

Navigating healthcare as an American living in South Korea can feel daunting, but the country’s system is modern and accessible—once you know your options.

How the South Korean healthcare system works

South Korea operates a universal healthcare system, called the National Health Insurance (NHI). Here’s how it functions:

• Mandatory coverage: Most residents, including expats with long-term visas, are required to enroll in NHI.
• Public and private mix: While NHI is government-managed, both public and private hospitals and clinics deliver care.
• Co-payments: Patients typically pay a portion of costs at the point of service, with the rest covered by insurance.
• Wide network: Quality care is widely available, especially in urban centers.

Healthcare options for Americans living in South Korea

As an American expat, you typically have these choices:

• National Health Insurance (NHI): Once you register your residency, you can enroll in the NHI program. Premiums are based on income or property value.
• Employer-provided insurance: If you’re working for a Korean company, your employer often enrolls you and covers part of your premium.
• Private insurance: Some expats choose international or local private health insurance for greater flexibility or to cover services not included in NHI.
• Pay-as-you-go: Out-of-pocket payment is possible, but costs can add up, especially for major treatments.

Pros and cons to healthcare for American expats living in South Korea

Pros

• High-quality care: Facilities are modern and well-equipped, with many English-speaking providers in major cities.
• Affordable compared to the U.S.: Routine care and most medications are generally less expensive.
• Comprehensive coverage: NHI includes most essential treatments, preventive care, and some dental services.

Cons

• Language barriers: Not all providers speak English, particularly outside large cities.
• Upfront payments: You may need to pay first and claim reimbursement, especially at private clinics.
• Cultural differences: Approaches to treatment and patient interaction can differ from U.S. norms, which sometimes requires adjustment.

Weighing these factors will help you choose the best healthcare path for your needs while living in South Korea.

Cost of living for American expats in South Korea

Understanding the cost of living is key when planning your move to South Korea. While many Americans find that daily expenses can be lower than in the U.S., your experience will depend on where you live and your lifestyle choices. Here’s how some core expenses stack up:

Expense	South Korea (Seoul, avg.)	United States (NYC, avg.)	Notes/Considerations
Groceries	$300–$450/month	$500–$800/month	Imported goods (cheese, cereal) are pricier in Korea
Housing (1BR apt, city center)	$800–$1,200/month	$2,500–$3,500/month	Housing is much more affordable outside Seoul
Public transport	$50–$80/month	$127/month	Subways and buses are efficient and widespread in Korea
Phone plan	$25–$40/month	$50–$80/month	Local SIMs are widely available; international plans cost more

Currency converted to U.S. dollars for easy comparison. Local costs may vary by city and personal preference.

Pros for American expats

• Lower housing costs: In most Korean cities, rent is significantly less than in major U.S. cities, freeing up your budget for travel or savings.
• Affordable public transport: Seoul’s subway and bus system is not just reliable, it’s a bargain compared to most American cities.
• Everyday services: Eating out, haircuts, and even healthcare often cost less than back home.

Cons for American expats

• Imported goods are pricey: Craving U.S. brands? Be ready to pay extra for imported foods or specialty items.
• Upfront housing deposits: Korea’s “jeonse” system means large deposits (sometimes 10–20x monthly rent) are common, though monthly rent options are increasing.
• Smaller living spaces: Apartments, especially in urban areas, are compact compared to typical U.S. standards.
• Language and adaptation: Navigating contracts, bills, or shopping for unfamiliar products can take time and patience.

While adjusting to a new cost structure can be challenging, many expats find that their money goes further in South Korea—especially if you’re flexible and open to local products and experiences.

Where do American expats tend to live in South Korea?

• Seoul: Most American expats gravitate toward Seoul, especially neighborhoods like Itaewon, Hannam-dong, and Gangnam. These areas offer international schools, English-friendly services, and a lively expat social scene.
• Busan: South Korea’s second-largest city is popular for its beaches, relaxed atmosphere, and growing international community—ideal if you want a coastal lifestyle with big-city amenities.
• Daegu: Known for its friendly vibe and slightly slower pace, Daegu attracts teachers and families looking for a more affordable, less hectic urban experience.
• Gyeonggi Province: Surrounding Seoul, cities like Suwon, Bundang, and Ilsan offer a balance of quieter suburban life with easy access to the capital, making them attractive to expats seeking more space or a family-friendly environment.

Tax implications for Americans living in South Korea

Living in South Korea can be an amazing adventure—vibrant cities, incredible food, and a fascinating blend of ancient and modern culture. But when it comes to taxes, the rules for Americans living abroad can feel overwhelming. Let’s break down what you need to know to stay compliant, avoid surprises, and make the most of your expat experience.

American expats’ tax obligations

Staying compliant isn’t just about ticking boxes—it’s about protecting your finances, your peace of mind, and your future. Here’s what you need to know:

Filing U.S. tax returns

Even if you haven’t set foot in the U.S. all year, you’re still required to file a U.S. federal tax return if your worldwide income exceeds the IRS filing threshold. This includes your salary in Korea, investments, and even rental income.

• Deadline: Typically April 15, but you get an automatic extension to June 15 if you’re living abroad. You can request an additional extension to October 15 if needed.
• State taxes: Some states (like California or New Mexico) may still consider you a resident. Check your home state’s rules.

Korean taxes

As a resident in South Korea, you’re generally subject to Korean income tax on your worldwide income. Here’s what to expect:

• Registration: You’ll need an Alien Registration Card if you’re staying over 90 days.
• Tax rates: Korea uses a progressive tax system, with rates ranging from 6% to 45%.
• Filing: Most employees have taxes withheld, but if you’re self-employed or have multiple income sources, you may need to file a return in May for the previous year.

Foreign Earned Income Exclusion (FEIE)

The Foreign Earned Income Exclusion lets you exclude up to $130,000 (for tax year 2025) of foreign earned income from your U.S. taxes—hugely helpful for Americans living in Korea.

• Requirements: You must meet either the Bona Fide Residence Test (live in Korea for a full calendar year) or the Physical Presence Test (be outside the U.S. for at least 330 days in a 12-month period).
• What counts: Salary, wages, and certain allowances. Investment or rental income doesn’t qualify.
• How to claim: File IRS Form 2555 with your return.

Foreign Tax Credit (FTC)

If you pay Korean income taxes, you can usually claim a dollar-for-dollar credit against your U.S. tax bill using the Foreign Tax Credit—preventing double taxation.

• How it works: Claim the FTC using IRS Form 1116.
• Best for: Those earning above the FEIE limit or with income not eligible for the exclusion.
• Limitations: You can’t use the same income for both the FEIE and the FTC—choose the method that gives you the best benefit.

Tax treaty

The United States and South Korea have a tax treaty, but it doesn’t exempt you from filing or paying U.S. taxes on most kinds of income. However, it can help clarify issues like:

• Pensions and social security: Determining which country taxes your retirement income.
• Double taxation: Preventing you from being taxed twice on the same income.
• Residency conflicts: Helping define where you’re considered a tax resident if both countries claim you.

Tax treaties are complex. We always recommend reviewing your specific situation with a CPA familiar with both U.S. and Korean rules.

Reporting foreign bank accounts

If you have more than $10,000 (combined total) in foreign financial accounts at any point during the year, you must file an FBAR (FinCEN Form 114).

• Who needs to file: Nearly all expats with local Korean bank accounts, investment accounts, or even employer-provided accounts.
• Deadline: April 15 (with an automatic extension to October 15).
• Penalties: Failure to file can result in hefty fines, so don’t overlook this step.

Social security

U.S. expats working for Korean employers may find their social security situation confusing. Here’s how it plays out:

• U.S. social security: If you work for a U.S. company or as a contractor, you may need to pay into the U.S. system via self-employment tax.
• Korean social security (National Pension): Most expats working in Korea contribute to the Korean National Pension system, with contributions shared by you and your employer.
• Totalization agreement: The U.S. and Korea have an agreement to avoid double social security taxation. Generally, if you’ll be in Korea for less than five years, you may be able to continue paying into U.S. social security instead.

Ask your employer or consult a CPA to determine where you should be contributing and how it affects your retirement planning. Navigating taxes as an American in South Korea can seem daunting, but you don’t have to go it alone. With the right information—and a trusted partner like us—you can focus on your life abroad, not paperwork.

Frequently Asked Questions