Relationship between Retirement Migration and Economic Development of Rural Communities in Korea

은퇴인구 유입과 지역경제 활성화와의 관련성 분석

Recently, there has been a gradual growth of retired in-migrants in high-amenity, rural areas in Korea. However, little has known about that the retirement migration is a blessing or a blight for a local economy in Korea. Therefore, in this study, we intend to explore the relationship between retirement migration and economic development of rural communities in Korea. For this purpose, we used the 1995 and 2000 census data and annual regional statistics for 138 counties in Korea. Based on the previous empirical studies, economic development was measured by 3 indicators such as GRDP (Gross Regional Domestic Product), job creation in the wholesale and retail sector, and the increase of local tax. Also, cross-tab, scatter plot, and correlation were analyzed using the SPSS Windows Program. The finding are as follows: First, from 1995 to 2000, nearly 11 percent of rural counties showed 10 percent and over increase of in-migration rate among retirees. Second, correlation statistics showed a close relationship between retirement in-migrant flows and economic resurgence. In particular, retirement in-migration rates were significantly tied to the job creation of the wholesale and retail sector (r=.19, p<.05) as well as car ownership rate (r=.58, p<.001) resulting in the increase of local tax. However, there was non-significantly positive correlation between retirement in-migrant flows and GRDP change (r=.13). Knowledge of these relationships will be important to policy-makers and for understanding the role that retirement in-migration play in stimulating economic growth of rural communities in Korea.