This paper analyzes poverty and depression in cities and rural areas in Korea. The authors used the Korea Welfare Panel Study for cross-sectional and panel analysis. Also, we employed basic statistics and regression (poission and multinominal logistic) analysis. We found differences in poverty and depression between cities and rural areas. First, there was a positive relation between poverty and depression in cities and rural areas. Second, there were differences between the two areas. For instance, poverty rates were higher in rural areas than in cities, while depression rates were higher in cities than in rural areas. By sex and age, poverty and depression rates were higher for women and older people than in men and younger people. The implication is that cities and rural areas need different policy measures which reflect their different characteristics.