South Korean Couples Struggle with Household Finances Amidst Self-Employment Challenges

Many self-employed individuals in South Korea find themselves blurring the lines between business and personal finances, leading to household budget deficits. This is exemplified by a couple in Seoul who, despite owning a home, struggle to save due to high insurance premiums and a husband’s insistence on prioritizing business expenses.

The Case of Oh Min-hyuk and Han Mina

Oh Min-hyuk (51) and Han Mina (40) represent a growing number of South Korean couples facing financial strain. Min-hyuk, a small business owner running an online shopping mall, provides his wife, Mina, with 5 million won (approximately $3,700 USD as of March 22, 2026) per month for living expenses. Despite this seemingly substantial amount, the couple consistently operates at a deficit.

Detailed Breakdown of Monthly Expenses

The couple’s monthly expenses include:

• Utilities: 290,000 won
• Communication: 140,000 won
• Food & Groceries: 900,000 won
• Children’s School Fees: 350,000 won
• Mortgage: 510,000 won
• Fuel & Transportation: 310,000 won
• Insurance Premiums: 1,720,000 won
• Clothing: 240,000 won
• Couple’s Allowance: 500,000 won
• Children’s Allowance: 50,000 won
• Cultural/Recreational Expenses: 40,000 won

Totaling 5.05 million won in regular monthly expenses. They spend an average of 670,000 won per month on irregular expenses such as beauty treatments, holidays, vacations, and car maintenance, bringing their total monthly spending to 5.72 million won.

The Insurance Dilemma

The largest contributor to the couple’s financial woes is their high insurance premium of 1.72 million won per month. Mina recognizes the demand to reduce this expense to alleviate their financial burden and potentially pay down their mortgage (currently 44.5 million won remaining on a home valued at approximately 500 million won). However, Min-hyuk believes maintaining these policies is crucial for business networking and emergency preparedness, even suggesting adding dementia insurance for family members.

Initial Steps Towards Financial Improvement

After seeking financial counseling, the couple initially agreed to reduce their food and grocery expenses by 200,000 won per month by limiting restaurant meals and adopting a more structured grocery shopping approach. This brought their monthly deficit down to 520,000 won.

The Path Forward

Addressing the substantial insurance premiums remains the key to resolving the couple’s financial difficulties. The presence of “renewable insurance policies,” where premiums increase over time, further complicates the situation. Continued efforts to reduce expenses and reassess their insurance coverage will be crucial for achieving financial stability.

Seo Hyuk-no, Director of Korea Economic Education Institute Co., Ltd.