"These days goshiwons are no longer places where only test-takers live. At the goshiwons I run in Sadan and Gangnam in Seoul, foreigners make up 30% to 50% of all residents. In college areas with strong demand from international students, the foreigner ratio rises to 70% to 80%."
Wi Seong-hun, head of CreativeWe and director of the goshiwon "Sadangsari," recently told ChosunBiz, "More foreigners are choosing goshiwons because of the low deposit, monthly rent that includes utilities, and short contract terms."
Once a space for students preparing for the bar exam or civil service exams, the goshiwon is becoming a low-cost single-person residence sought by foreign workers, international students, and young people looking to save on housing costs.
After leaving a major company, Wi acquired his first goshiwon about three years ago in Sadan, Seoul. He now operates goshiwons with 30 rooms each in Sadan and Gangnam. The Sadan location centers on mini rooms that use shared bathrooms and a shared kitchen, while the Gangnam location is configured as studio-type rooms. The usual vacancy rate is 5% to 10%.
He not only runs goshiwons but also provides startup consulting and holds seminars. He has helped more than 30 people start businesses so far. On the YouTube channel "Sadangsari" and the Instagram "Sadangsari Toon," he introduces stories about running goshiwons and the personal finance of a dual-income couple.
Wi said, "In Seoul, it is getting harder for the private sector to newly supply sleeping space for 300,000 to 400,000 won a month including utilities," adding, "Goshiwons still serve as one pillar of low-cost single-person housing in Seoul." The following is a Q&A with Wi.
─ Why did you leave a major company and jump into the goshiwon business?
"My wife and I worked at the same company. After having a child, we wondered if it was right for both of us to keep working. We both took parental leave and studied personal finance and business. To resign, we needed a stable cash flow.
While reviewing everything from online businesses to space rental, I learned about goshiwons. I judged that although initial capital is needed, if you maintain occupancy you can predict revenue to some extent."
─ What did you change first after acquiring the goshiwon?
"It was an old goshiwon more than 20 years old. We redid the entire interior and hired a professional company for cleaning. We installed digital door locks and set up a system that allows operations even without the director residing on-site.
In a goshiwon, cleaning, facility maintenance, and handling complaints are more important than flashy interiors. Because residents live there every day, basic management determines the occupancy rate and satisfaction."
─ What is the scale of the business and the revenue?
"It is difficult to disclose specific sales and net profit. However, each goshiwon generates monthly operating profit roughly equivalent to an average office worker's monthly salary.
To start a goshiwon in Seoul, you need around 250 million won including the deposit and key money, and about 200 million won in the Gyeonggi area. As a rough guide, I check whether monthly operating profit of around 2 million won per 100 million won invested is possible, but actual revenue varies by location, rent, and vacancy rate."
─ What sets a revenue-generating goshiwon apart?
"Location is the most important factor. That doesn't mean it has to be right in front of a subway station or on a main road. Long-term residents sometimes prefer a quiet environment inside an alley.
Cleaning and facility maintenance also matter. From a founder's standpoint, you need to scrutinize the rent paid to the building owner. Compare it with nearby commercial rents to see if it's appropriate and check how much it could rise at contract renewal."
─ Who mainly lives in goshiwons these days?
"In the past, they had a strong image as shelters for vulnerable housing groups such as test-takers, day laborers, and basic livelihood recipients. There is still such demand, but the most noticeable recent increase is foreigners.
At the Sadan and Gangnam goshiwons, foreigners account for 30% to 50% of all residents. In college districts, more goshiwons are being run with a focus on international students."
─ Any foreign residents who left a strong impression?
"At the Sadan goshiwon, a young Vietnamese man working at a logistics center in the Seoul metropolitan area lived there. He took a commuter bus from near Sadan Station early in the morning to get to work. The room is small, just enough for a bed, but with monthly rent in the 300,000-won range, he said it was good for cutting living costs and saving.
At the Gangnam goshiwon, there was a Thai student who came to learn Korean out of interest in Korean culture. The student attended a university language institute and chose a goshiwon because of the high housing costs in central Seoul. The student was satisfied with the convenient transportation and the ability to save on expense."
─ Why do foreigners choose goshiwons over studios or officetels?
"Because the deposit burden is small and the contract period can be set flexibly. Many places don't charge separate utilities beyond monthly rent. For foreigners new to Korea who don't know how long their job will last, tying up a lump sum in a studio lease is burdensome.
There are also cases where foreigners already settled in Korea introduce goshiwons to newly arriving friends or family. A referral network is forming, with people finding rooms on their behalf or helping with airport transfers."
─ Has your operating method changed as the number of foreigners increased?
"Use of the shared kitchen has grown, and there are times when existing residents complain of discomfort due to differences in living culture, such as the smell of spices. Adjusting different lifestyles has also become part of the operator's job.
I view the goshiwon market in three stages. First is the test-taker space represented by the Sillim-dong bar exam village. Second is the space for day laborers, older adults, and vulnerable housing groups. Now we are in the third stage, where foreigners and young people trying to save on housing costs move in together."
─ What do goshiwons in the 300,000- to 400,000-won range mean in Seoul's single-person housing market?
"The essence of the goshiwon business is saving on housing costs. It is difficult to newly create single-person housing in Seoul and charge 300,000 to 400,000 won in room fees. That's because construction and labor costs have risen sharply.
Old goshiwons have outdated facilities, but the very fact that they can offer rooms for 300,000 to 400,000 won a month including utilities is a competitive edge. For people who must minimize housing costs, they remain an option."
─ How do redevelopment projects and stricter facility standards affect the market?
"Seoul has steady demand for single-person housing, but it is hard to newly supply inexpensive rooms. On top of higher material and labor costs, when creating a new goshiwon you must meet standards for windows, corridors, fire safety, and more. If construction costs rise, it is also hard to set low room fees.
I think demand for 300,000- to 400,000-won goshiwons will hold up the worse the economy gets. Even if you cut expenditure, you still need a place to sleep."
─ What are your goals going forward?
"If you set up a goshiwon well, you can personally handle inquiries and collections while systematizing cleaning and facility maintenance through outside companies.
It is hard to keep increasing sales at a goshiwon, and you also need initial expense in the form of key money. So, based on a stable offline business, I plan to grow startup consulting, seminars, and content businesses.
Some people think of the goshiwon as home, while others come to save on housing costs for a while to achieve their goals. I hope the time spent at Sadangsari remains a good memory for the residents."