[Yanolja Research Insights] Vol.21 Regional Economic Impact of Tourism in South Korea

Local Economies Face Growing Disparities

Population and economic activity are increasingly concentrated in the Seoul metropolitan area, now home to over half the country’s population.
Non-metropolitan regions are experiencing faster population decline and economic stagnation, particularly in traditional manufacturing sectors.
The gap in economic output (GRDP) between metropolitan and non-metropolitan areas has widened significantly in recent years.

Tourism as a Game-Changer for Regional Growth

Tourism uniquely boosts the local "living population" by attracting visitors, stimulating consumer spending, and invigorating service industries.
Success stories, such as Yangyang County’s transformation into a surfing hotspot, demonstrate tourism’s ability to:

Double tourist numbers within four years
Induce over KRW 317.8 billion in local production and create more than 3,300 jobs (2023 figures)

International examples like Spain’s Bilbao show how cultural attractions can drive urban regeneration and economic growth.

Measurable Economic Benefits

Analysis across South Korea’s regions shows that a 1% increase in tourist numbers leads to:

0.11% rise in regional economic output (GRDP)
0.15% increase in service sector businesses
0.11% growth in service sector employment

These effects are especially pronounced in smaller provinces, where tourism plays a larger economic role.

Policy Support and Innovative Initiatives

The government is prioritizing regional tourism as a catalyst for balanced development, with new laws and financial incentives supporting local initiatives.
The Digital Tourism Resident Card, now active in 40 regions, encourages longer stays and direct contributions to local economies.
Fiscal policies are being revised to reward local governments for attracting more tourists.

What Drives Tourism Success?

Tourism is more than just an industry—it’s a strategic growth engine for regions seeking new vitality.

So what really sets successful regions apart? Is it just about having beautiful beaches and attractions, or is there something more? The answer may surprise you—and it could change how we think about the future of regional development in South Korea.

Curious about the secret behind regions that have not only recovered but surpassed pre-pandemic tourism levels? Discover the key factor that’s making all the difference—visit our official website for the full story.

Yanolja Research Insights Vol.21

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