Budget advice for Seoul usually goes wrong in the same way: it recommends moving further from the centre. That saves money on paper and costs it in practice, because the subway is cheap but your days are not.

The better move is to stay central and change which central district you are in.

The short version: Hongdae for beds, Dongdaemun for rooms

Hongdae. A university district, which is why the budget supply is deep here.
Hongdae. A university district, which is why the budget supply is deep here.

Hongdae is a university area, so guesthouses and small hotels compete hard and prices reflect it. It is also on the AREX line, which means the airport is a direct train with no transfers — a real saving when the alternative is a taxi.

Dongdaemun is the quieter answer. It is a wholesale fashion district with late-night markets, two subway lines, and rates well under Myeongdong for the same travel times. Nobody recommends it because it is not charming, which is exactly why it is cheap.

Dongdaemun Design Plaza. The area around it is cheaper than its travel times suggest.
Dongdaemun Design Plaza. The area around it is cheaper than its travel times suggest.
Photo: Tristan Surtel · CC BY-SA 4.0 · source

Why moving further out is usually a false saving

Two extra changes, twice a day, for seven days is roughly a full day of your trip spent underground. Price that against the nightly saving before you book something forty minutes out. In most cases the cheaper central room wins.

Jongno is the compromise

Jongno. Cheaper than Myeongdong, walkable to the palaces.
Jongno. Cheaper than Myeongdong, walkable to the palaces.
Photo: by Tom@HK · CC BY 2.0 · source

Guesthouses and small hotels around Jongno and Ikseon-dong run below Myeongdong while keeping the palaces walkable. If you want a budget trip that still feels like a city break rather than a logistics exercise, this is the one.

What a cheap room in Seoul actually means

Jjimjilbang — the 24-hour bathhouses — are a legitimate way to absorb one night before an early flight. They are not accommodation for a week: you sleep on a mat in a shared room under the lights, and there is nowhere secure to leave luggage.

What is checked here and what is not

The district characteristics and subway coverage are stable and checked on the date above. Rates move constantly and seasonally — the comparisons here are about which districts are cheaper relative to each other, not about any specific price.