Multicultural Food Street in Ansan, Gyeonggi Province. (image: Ansan City Office)
SEOUL, April 30 (Korea Bizwire) — Defying some claims that an increase in the number of foreign residents can have a negative impact on government finances, a recent study showed that such growth is not a big burden at all.
A 1 percent increase in the number of foreigners in a municipal district turned out to lead to a 0.22 percent decline in the district’s per-capita fiscal spending, according to a report by the Migration Research & Training Center.
The report established and analyzed panel data for the past 10 years (2008 to 2017) using the regional finance statistics yearbooks of the nation’s 226 municipal governments and foreigner resident data compiled by the Ministry of the Interior and Safety.
The study revealed that an increase in the number of immigrant residents led to a decrease in re-distribution policy-related fiscal spending, including the areas of social welfare, public health and education, while spending related to regional and national land development policies and general public administration increased.
“The decline in re-distribution policy-related fiscal spending indicates that immigrants’ access to public social services lags behind that of local residents,” said Kim Do-won, the deputy research fellow who wrote the report.
“In particular, most foreign residents are alienated from public social welfare benefits.”
Lina Jang (linajang@koreabizwire.com)
