By Chung Hyun-chae
Foreign workers had an economic effect of 74 trillion won ($6.4 billion) last year, research showed, Tuesday.
According to the Migration Research and Training Centre of the International Organization for Migration (IOM MRTC), foreign workers generated 54.6 trillion won ($48 billion) in production and 19.5 trillion won in consumer spending in 2016.
The report, titled "Economic Activities and Impacts of Migrants in Korea," analyzed foreign workers' economic activities and their impact on the national economy.
"There had been analysis on the economic impact of migration with little study on migrants' economic activities," IOM MRTC researcher Kang Dong-kwan said in the report.
The report estimated that the number of foreigners working here stood at about 991,000 and their total wages were worth 22.58 trillion won last year and consumption totaled 9.33 trillion won. The report showed the migrant workers sent the remaining 13 trillion won to their home countries.
"While foreigners replaced many Korean workers, which drove up the nation's unemployment, the inflow of foreign workers boosted production and consumption, thus raising the nation's GDP," Kang said.
Given that foreign workers are both producers and consumers, the report acknowledged their positive impact on the nation's economy.
"I found that foreign workers who are skillful or those from high-income countries contributed most to the national finance," Kang wrote.
The report expected foreign workers will generate 162 trillion won in 2026, more than double from last year.
"An analysis of the economic impact of migrants is significant for the drawing up of future migration policy," Kang said.
Established in 2009, the center has been committed to conducting migration-related surveys and research to improve migration policies.
"The paper aims to contribute to dealing with changes in global migration situations and overcoming domestic challenges including the low birth rate and the aging population," Kang added.
He called for further research on the social costs of foreign workers such as administrative and welfare costs for education and medical treatment.
Foreign workers had an economic effect of 74 trillion won ($6.4 billion) last year, research showed, Tuesday.
According to the Migration Research and Training Centre of the International Organization for Migration (IOM MRTC), foreign workers generated 54.6 trillion won ($48 billion) in production and 19.5 trillion won in consumer spending in 2016.
The report, titled "Economic Activities and Impacts of Migrants in Korea," analyzed foreign workers' economic activities and their impact on the national economy.
"There had been analysis on the economic impact of migration with little study on migrants' economic activities," IOM MRTC researcher Kang Dong-kwan said in the report.
The report estimated that the number of foreigners working here stood at about 991,000 and their total wages were worth 22.58 trillion won last year and consumption totaled 9.33 trillion won. The report showed the migrant workers sent the remaining 13 trillion won to their home countries.
"While foreigners replaced many Korean workers, which drove up the nation's unemployment, the inflow of foreign workers boosted production and consumption, thus raising the nation's GDP," Kang said.
Given that foreign workers are both producers and consumers, the report acknowledged their positive impact on the nation's economy.
"I found that foreign workers who are skillful or those from high-income countries contributed most to the national finance," Kang wrote.
The report expected foreign workers will generate 162 trillion won in 2026, more than double from last year.
"An analysis of the economic impact of migrants is significant for the drawing up of future migration policy," Kang said.
Established in 2009, the center has been committed to conducting migration-related surveys and research to improve migration policies.
"The paper aims to contribute to dealing with changes in global migration situations and overcoming domestic challenges including the low birth rate and the aging population," Kang added.
He called for further research on the social costs of foreign workers such as administrative and welfare costs for education and medical treatment.
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