[Exclusive] High Exchange Rates Hit Foreign Ministry Overseas Mission Housing Costs, Up for Second Straight Year

Employee Housing Rent Costs Rise as Exchange Rate Jumps
Annual Spending Projected to Exceed Budget by 6 Billion Won
Overseas and Special-Area Duty Allowances Also Continue to Rise

The won-dollar exchange rate has exceeded 1,500 won per dollar this year, continuing the high-exchange-rate trend that began last year. As a result, operating costs for the Ministry of Foreign Affairs’ overseas missions have also risen sharply.

According to figures on expenditures for overseas mission support and personnel costs that the Ministry of Foreign Affairs submitted to the National Assembly’s Foreign Affairs and Unification Committee on Oct. 26, spending on staff housing rent in just the first three quarters of this year nearly matched last year’s full-year total of about 88.7 billion won. Spending through the end of this year is projected to rise 8.96% from last year. Following a 9.20% increase last year, spending is expected to continue rising by around 9% this year.

For the personnel cost items of overseas service allowances and hardship-post allowances, spending from January to August this year stood at about 61.3 billion won and 6.6 billion won, respectively, equivalent to more than 70% of their full-year totals last year. Child education allowances totaled about 13.3 billion won, or 65% of last year’s full-year spending. The ministry expects annual spending on all three items to exceed last year’s figures. Last year, overseas service allowances and hardship-post allowances increased by 9% and 8%, respectively.

If projected spending becomes reality, the budget could be exceeded. This year’s budget for staff housing rent is about 90.6 billion won, 6 billion won short of projected spending. The ministry said the overall personnel cost budget of 312.3 billion won is not expected to fall short of expenditures. However, the exchange rate used when the budget was set was 1,380 won per dollar, while this year’s rate climbed to the high 1,550-won range in June.

A Ministry of Foreign Affairs official said, "If the total personnel cost budget itself falls short for unavoidable reasons, such as an exchange rate increase, its size could be adjusted after consultations with the Ministry of Planning and Budget."

This content was produced with the assistance of AI translation services.