In 2022, the number of foreign students in South Korea reached 166,892, a doubling from a decade earlier, according to the Ministry of Education's Basic Education Statistics. [according to the Ministry of Education's Basic Education Statistics. The number has doubled more than in the past decade.]  With the increasing number of foreign students in South Korea, the commercial areas around universities have faced significant issues and challenges.

Expanding International Presence

Kyung Hee University (KHU) led South Korean universities with 4,302 international students in 2023, according to the Higher Education in Korea service. Following close behind are Yonsei University, Sungkyunkwan University(SKKU), Hanyang University, Korea University(KU), and Chung-ang University, each hosting over 3,000 international students. Over 30 institutions now have more than 1,000 international students, with 20 located in the Seoul metropolitan area. The substantial number of these students affects both educational and commercial operations, with over half concentrated in Seoul and its surrounding cities, amplifying their impact on the region. Park Sang-gu, the owner of Jun-ho’s Budaejjigae, near SKKU, acknowledges the importance of foreign students, "We cannot overlook the foreign students. Many restaurants and stores might not operate without foreign customers." It underscores the vital role that international students play in supporting local businesses.

Cultural Considerations in Commerce

Store owners near universities are navigating cultural nuances more than ever. The owner of Sunuri Gamjatan, a Korean restaurant across the KHU Global Campus, said, “We sometimes need to explain our menu more clearly. For instance, our dumplings are to be added to soup uncooked, but some customers expect them to be served cooked.”

Mr. Narayan, who runs a pair of Indian restaurants near KU, takes a proactive approach to ensure customer satisfaction, saying, "We inquire about any menu uncertainties and clarify details beforehand to prevent confusion. This preemptive effort ensures that our customers receive the best service depending on their needs."

Park shared another instance, "Some international students, unfamiliar with local customs, have brought food from other stores or combined it with our offerings." This highlights the necessity of both businesses and foreign customers to adapt to each other's practices. These examples highlight the ongoing adaptations needed to bridge cultural gaps in service. 

Workforce Adaptation

The changing customer base has also influenced hiring practices. The owner of Sunuri Gamjatan mentioned how their hiring practices have changed in response. "We naturally favor multilingual staff. Approximately 40% of our servers are fluent in both Korean and Chinese,” he added.

Mr. Narayan echoes this sentiment, noting the effectiveness of a diverse language skill set in managing a global clientele. He explains, “Our customers hail from across the globe, including the Americas and Europe. We have been able to have effective communication. My team and I can serve in multiple languages like English, Korean, and Hindi, allowing us to transcend language barriers.” This strategy leads his restaurant to be a welcoming space for an international crowd and shows the linguistic diversity of customer service is important. 

Meanwhile, employing international students in South Korea comes with particular constraints. Students on a visa must demonstrate a certain proficiency level in Korean and are limited to working no more than 25 hours per week. "We typically employ students for just a single day or short-term assignments. In cases where an employee does not meet the work requirements, we cannot include their wages in our regular payroll expenses. Instead, we compensate them with cash payments," explained Mr. Park. This approach helps businesses navigate the regulatory landscape while still utilizing the talents of international students.

Housing Challenges

The housing sector faces its own set of challenges with international students. Kang Gil-soon of Plus Real Estate Agency discusses the difficulties with lease agreements when students return home unexpectedly: “Tenants are obligated to make monthly payments. However, some may need to return to their countries unexpectedly, but the agreement requires payment until the contract ends, regardless of occupancy. I usually try to convince the renter to consider their situation.

Lee Min-gyu, a representative of the KU Real Estate Agency, acknowledges the challenges foreign tenants face when they move out, "I make an effort to assist them with the move-out process. They often are not familiar with it, such as the timeline for cleaning or getting rid of the items.”

The representative of the Real Estate Town Real Estate Agency near SKKU, Kim Seon-duk highlights that property owners are hesitant to rent to foreigners because of potential misunderstandings. He stated, “Unanticipated issues often happen because foreigners are unfamiliar with their legal commitments. For instance, they might need to move out of the house before the lease is terminated, but they are out of the country, although the stuff is still in the room. This is a scenario the owners often faced.”

As more foreigners have come to South Korea to study, the commercial area surrounding the universities is forced to face new situations, considerations, and challenges. It is essential for all stakeholders, including students and business owners, to foster an accommodating and inclusive environment. This adaptation will enhance the multicultural fabric of South Korean society.