"Outstanding Fiscal and Economic Effects"... Intensifying Competition to Attract Immigration Office

Asan, Cheonan, Jeonnam Province, Gyeongbuk Province, and Others Compete to Host

As the Ministry of Justice accelerates the establishment of the Immigration and Immigration Control Agency (Immigration Agency), one of Minister Han Dong-hoon's key projects, several local governments across the country are competing fiercely to attract the agency.

According to the legal and administrative authorities on the 20th, as of this day, Asan and Cheonan cities in Chungnam Province, Jeonnam Province, Gyeongbuk Province, Gimpo and Ansan cities in Gyeonggi Province, and Incheon City have officially announced their intention to host the Immigration Agency. Among them, Ansan City’s Mayor Lee Min-geun met Minister Han at the Gwacheon Government Complex last month on the 27th and submitted a proposal to attract the Immigration Agency. Asan and Cheonan cities proposed the area around KTX Cheonan-Asan Station, while Gyeongbuk Province put forward Andong City as the optimal location for the Immigration Agency. Gimpo City, which was the first to launch its bid, emphasized its proximity?within about 30 minutes?to major domestic gateways such as Incheon-Gimpo International Airport and Gyeongin Port.

On the 27th of last month, Ansan Mayor Min-geun Lee met with Minister of Justice Han Dong-hoon at the Gwacheon Government Complex to deliver a proposal for attracting the Immigration Office. Photo by Ansan City

The local governments entering the competition unanimously promote their regions as "the places most in need of the Immigration Agency," citing factors such as being at risk of local extinction and having a high proportion of foreign residents. However, legal and business circles focus more on the potential impact the Immigration Agency could have on local finances and the economy as the reason why local governments are so determined to attract it. While overcoming the crisis of local extinction is a critical task, it is analyzed that local governments are more focused on the expected economic benefits of the Immigration Agency, such as increasing the local workforce and economically active population to revitalize the economy.

The expected benefits of attracting the Immigration Agency are also confirmed in various data. Since the initial discussions on establishing the Immigration Agency during the Kim Dae-jung (1998?2003) and Roh Moo-hyun (2003?2008) administrations, related research has been actively conducted, accumulating a wealth of data. Most of these studies tend to present positive rather than negative forecasts. These materials likely contributed to local governments’ eagerness to compete for hosting the agency.

In March, the Korea Institute of Public Finance predicted in its report titled "The Impact of Foreign Immigrant Inflow on Public Finance" (Tax and Public Finance Brief) that "the inflow of foreign immigrants will have significant ripple effects across various sectors of our society," and argued that "a control tower (such as the Immigration Agency) is required to systematically establish and manage policies." Based on various formulas assessing the situation when foreigners enter, it predicted that there would be almost no negative phenomena such as a decrease in local government revenue or an increase in expenditures. It also analyzed that metropolitan governments would see clearer increases in revenue and expenditures due to population growth and regional economic revitalization compared to basic local governments.

Related figures also seem to have captured the attention of local governments. Gyeongbuk Province estimated that establishing the Immigration Agency in the region would create about 3,000 jobs and generate an economic effect of 3 trillion won annually. Incheon City analyzed that after the Ministry of Foreign Affairs’ affiliated agency, the Overseas Korean Agency, opened in Yeonsu District last June, the region experienced an annual production inducement of 96.8 billion won, a value-added inducement of 58.7 billion won, and the creation of about 1,100 jobs.

Meanwhile, the Ministry of Justice is preparing detailed plans for the establishment of the Immigration Agency and is consulting with the National Assembly and related ministries. For now, the Ministry of Justice is known to have drafted a plan to organize the Immigration Agency with one first deputy commissioner, one commissioner, and four bureaus. The agency will have a commissioner and a deputy commissioner, under whom the Planning and Coordination Officer, Immigration Policy Bureau, Immigration Safety Bureau, Visa and Stay Bureau, and Nationality Integration Bureau will operate. The ministry is considering dispatching staff from immigration-related departments of various ministries, similar to the Overseas Korean Agency.