Foreign Talent Influx Projected to Deliver ₩361 Trillion Economic Impact (Image supported by ChatGPT)
SEOUL, Aug. 14 (Korea Bizwire) — South Korea could see its economy expand by the equivalent of 6% of GDP if the number of foreign residents increased by one million, according to a new study by the Korea Chamber of Commerce and Industry (KCCI) and a research team led by Professor Kim Deok-pa of Korea University.
The report, released Wednesday, analyzed foreign resident data from 2012 to 2023 across 17 provinces and cities, finding that a 1% increase in registered foreign residents relative to the working-age population correlates with a 0.11% rise in per capita GRDP.
Applying this to 2023 figures, an influx of one million foreign residents would generate an estimated ₩145 trillion ($108 billion) in economic benefits.
With Korea’s registered foreign resident population currently at 1.35 million, the study projects that reaching five million could yield a cumulative economic impact of ₩361 trillion. (Image courtesy of Korea Chamber of Commerce and Industry (KCCI))
With Korea’s registered foreign resident population currently at 1.35 million, the study projects that reaching five million could yield a cumulative economic impact of ₩361 trillion.
The report stressed that attracting skilled professionals—rather than simply increasing headcount—would maximize gains by boosting productivity, industrial competitiveness, and economic sophistication.
To achieve this, the authors recommend creating “foreign resident-specialized cities” with visa incentives, tax breaks, and education and healthcare infrastructure; securing global semiconductor fabs to anchor high-tech clusters; and adopting a “train abroad, place domestically” approach to cultivate talent from friendly nations such as Vietnam and Indonesia.
“In the AI era, the global race for talent is intensifying,” said Lee Jong-myeong, head of KCCI’s Industry Innovation Headquarters. “Korea must urgently establish policy frameworks to build globally competitive urban hubs where foreign talent can quickly integrate and drive growth.”
M. H. Lee (mhlee@koreabizwire.com)
