Two friends and I visited two of our other friends teaching in South Korea back in April. While in Seoul, we stayed at the Blu Guest House in the neighborhood of Hongdae, Seoul. The hostel and Jay, the guy who owns and runs it, were awesome. Comfortable beds, a nice lounge area, Wifi, and free toast in the morning. It’s 18 KRW per night in the eight person dorm, which is fairly affordable (South Korea is not that cheap).
The location is great – it’s about a 5-10 minute walk to Hongik University and the night life in the area is amazing.
If I had to give a suggestion to make the place better – I’d say they should get a few big comfortably couches to make the lounge downstairs more comfortable to sit in. Currently, the chairs are plastic and not conducive to sitting for extended periods of time.
Blue Guest House: website here