Simulation of Asset Formation for a 30s Engineer Moving to South Korea in 10 Years

Simulation of Asset Formation for a 30s Engineer Aiming to Move to KR

This article is the result of a MoveWorth simulation for a hypothetical model case. It does not pertain to any real person or case. What will happen to the assets of a 30s engineer aiming for asset formation if they move to Korea (KR)? In this article, we explore the possibilities based on simulation results.

Persona Setting: Income and Family Structure

In this model case, a 30s single engineer is featured. His goal is asset formation, and he has chosen Korea as his destination. His annual income in Japan is 9,500,000 yen, and in the destination, it will be 100,000,000 won in local currency (equivalent to 11,000,000 yen). The local annual income is based on the industry-specific reference values of this simulator (foreign professional standards), and rent, living expenses, and tax rates use the country-specific preset values of this simulator.

Comparison of Monthly Cash Flow in Japan and KR

The monthly income in Japan (before tax) is 791,667 yen, with a tax amount of 237,500 yen. The monthly income after tax is 554,167 yen, with rent at 80,000 yen and living expenses at 120,000 yen. As a result, the monthly savings are 360,250 yen. These figures are simple monthly values of the input annual income, and the monthly savings are values at the start of the first year of the simulation (reflecting a 2% salary increase rate and inflation rate).

On the other hand, the monthly income in KR (before tax) is 8,333,333 won in local currency (equivalent to 916,667 yen), with a tax amount of 2,333,333 won in local currency (equivalent to 256,667 yen). The monthly income after tax is equivalent to 660,000 yen, with rent at 88,000 yen and living expenses also at 88,000 yen. As a result, the monthly savings are 4,480,000 won in local currency (equivalent to 492,800 yen).

Asset Trends in 5 and 10 Years

In 5 years, if continuing to live in Japan, the assets will be 28,507,899 yen, but if moving to KR, they will be 37,654,192 yen, with a difference of 9,146,293 yen. In 10 years, continuing in Japan will result in 63,242,209 yen, while moving to KR will result in 85,060,449 yen, with a difference of 21,818,240 yen.

Impact of Tax Rates, Living Expenses, and Exchange Rates

The tax rate in Japan is set at 30%, while in KR it is slightly lower at 28%. The inflation rate is the same at 2.5% for both. The exchange rate is set at 1 won = 0.11 yen. These factors have a significant impact on asset formation.

Please note that this simulation does not include overseas medical insurance, private medical insurance premiums, private pensions, defined contribution pension premiums, temporary return costs, children's education costs (such as international schools), and visa acquisition and renewal costs. Considering these, the actual net assets may be less than the simulation values.

Try It with Your Conditions

Based on the simulation results introduced in this article, try the MoveWorth simulation with your own conditions. For more details, please visit: Try with Your Conditions