The Bank of Korea: "Remote Work Expansion Continues Post-COVID... Suburban Migration Effects Also Increase"

[Asia Economy Reporter Eunbyeol Kim] The work-from-home trend, which gained momentum due to the spread of the novel coronavirus infection (COVID-19), is expected to continue even after the COVID-19 crisis, and the expansion of remote work is also analyzed to increase the incentive for relocating to areas with more affordable housing costs.

On the 13th, the Research Department of the Bank of Korea stated in "The Expansion of Work-from-Home Due to the COVID-19 Crisis: Issues and Evaluation" that "even after the crisis subsides, just as online shopping in consumption and remote meetings in corporate activities increase, work-from-home is expected to grow as a trend despite possible temporary adjustments."

Earlier, the Korea Employers Federation surveyed large companies in September and found that 53% anticipated an expansion of work-from-home in the future. Similarly, the Federal Reserve Bank of Atlanta in the U.S. predicted that the proportion of employees working from home, which was about 5.5% last year, would rise sharply to 16.6% after COVID-19.

Along with this, the Bank of Korea evaluated that "the expansion of work-from-home reduces the necessity of job-residence proximity (jikju-geunjeop), thereby increasing employees' incentives to relocate to areas with more affordable housing costs," and identified the spread of satellite offices as a factor promoting residential dispersion. Companies are expanding hub offices so that employees can commute to offices located 10 to 20 minutes from their homes, which in turn encourages employees to move to suburban areas.

However, the Bank of Korea predicted that "since the main reason employees reside in metropolitan areas is not job-residence proximity, the impact of increased demand for suburban relocation due to the expansion of work-from-home will be limited." This is because when reasons for wanting to live in Seoul are surveyed, convenience facilities and children's education are prioritized over proximity to the workplace.

Going forward, corporate work-from-home forms are expected to take a hybrid approach rather than full-time remote work. This approach flexibly utilizes remote work, existing offices, and satellite offices to seek the optimal work arrangement according to the characteristics of each company.

Meanwhile, the Bank of Korea stated that it is currently difficult to definitively say whether work-from-home increases productivity. While savings on commuting, improved work concentration, increased autonomy, and reduced corporate costs are factors that enhance productivity, the additional time and effort required for management and supervision can lead to decreased productivity.

The Bank of Korea advised, "In the future, during the establishment of work-from-home, a culture that values performance over office working hours will gradually take root," and added, "For work-from-home to have positive effects such as improving productivity, it needs to be selectively implemented according to the adaptation period and the characteristics of the work and individuals."

This content was produced with the assistance of AI translation services.