After Lunar New Year (Seollal) holidays end, many Koreans check their bank balance and sigh. Sebaetdon (New Year's money), gifts, travel costs, and holiday food ingredients — the average Korean household spends 500,000 to 800,000 won during Seollal. But action matters more than worry. Now is the perfect time to reset your 2026 household budget.
This guide walks you through reviewing your Seollal spending and building a systematic budget plan for the rest of the year.
📑 Table of Contents
1. Reviewing Your Seollal Spending
First, tally up exactly how much you spent this Seollal by category. The table below shows average 2026 Seollal spending based on Korea Consumer Agency data.
| Expense Category | Single Person | Family (2+) |
|---|---|---|
| Sebaetdon & pocket money | 100K~150K won | 200K~400K won |
| Travel/transportation | 50K~100K won | 100K~250K won |
| Food & ingredients | 50K~80K won | 150K~300K won |
| Gifts for parents | 100K~200K won | 150K~300K won |
| Total | 300K~530K won | 600K~1.25M won |
💡 Spending Review Tip
Check both your credit card statements and banking app history. Cash spending is easy to forget, so try to recall and note it down. This review process itself is the first step toward improving your spending habits.
2. The 50-30-20 Rule, Korean Style
The 50-30-20 budget rule, originally from the US, divides your after-tax income into three categories. Here is how to adapt it for Korean living costs:
Rent/mortgage, utilities, transportation, groceries, insurance, phone bills. Since housing costs are high in Korea, Seoul residents may allow up to 55%.
Dining out, cafes, shopping, hobbies, travel, subscriptions. In Korea, work dinners (hoesik) and occasion gifts (gyeongjosa) also fall here.
Emergency fund, savings accounts, pension savings, investments, debt repayment. Even with lower income, aim for at least 10%.
3. Fixed vs Variable Expenses
The key to budget management is clearly distinguishing fixed and variable expenses. Fixed costs stay roughly the same each month, while variable costs fluctuate.
💡 Cut Fixed Costs First!
Reducing fixed costs once is far more effective than constantly trying to save on variable expenses. Switching to a budget phone carrier saves 30,000~50,000 won monthly, or 360,000~600,000 won per year. Eliminating redundant insurance can save hundreds of thousands more annually.
4. Emergency Fund Strategy
To prepare for unexpected events (job loss, illness, car repairs), you should have at least 3 to 6 months of living expenses saved as an emergency fund.
Aim for monthly expenses x 3 (minimum) to 6 months (recommended). If your monthly costs are 2M won, your target is 6~12M won.
Keep your emergency fund separate from daily spending. A CMA or high-yield parking account works well. Tip: do not link a debit card to make withdrawals harder.
Saving 200K~300K won monthly gives you 2.4~3.6M won in a year. Add bonuses and tax refunds when they come in.
Only use the emergency fund for genuine emergencies. Travel and sale shopping do not count. Replenish it as quickly as possible after use.
5. Automating Savings with Auto-Transfer
The biggest reason people fail at saving is the mindset of "I will save whatever is left." Flip the order: save first when income arrives, then live on the rest.
01 Set up auto-transfers the day after payday
- ✓ Emergency fund: 200K~300K won/month
- ✓ Savings account: 300K~500K won/month
- ✓ Pension/IRP: 500K~750K won/month (up to 9M won/year)
- ✓ Investment account: surplus funds
02 Build a multi-account system
- ✓ Salary account: Receives income, auto-transfer hub
- ✓ Living expenses: Fixed + variable costs (link debit card)
- ✓ Emergency account: CMA or parking account
- ✓ Savings/Investment: Deposits, pension, brokerage
Wrap-Up: 2026 Monthly Action Roadmap
| Month | Action Items |
|---|---|
| Feb | Review Seollal spending, build budget plan, set up auto-transfers |
| Mar | Audit fixed costs (insurance, phone), open emergency account |
| Apr~Jun | Track budget execution, analyze variable spending, adjust |
| Jul | First-half review, adjust second-half budget |
| Dec | Year-end tax prep, annual budget review, plan for 2027 |
Budgeting does not have to be overwhelming. Just setting up one auto-transfer today is a great start. Use CalKit's financial calculators to set specific savings goals and budgets tailored to your situation.