"\"Annual Tourism Revenue of 1.8 Trillion Won Expected with 청 Opening\"... 전경련 Supports Yoon's Backing"

Hankyung Research Institute, Report on 'Economic Effects of Moving the Presidential Office to Yongsan'
"Expected 16.7 Million Domestic and International Tourists"
GDP Increase Estimated at 1.2 to 3.3 Trillion Won

[Image source=Yonhap News]

[Asia Economy Reporter Jin-ho Kim] The Korea Economic Research Institute (KERI), affiliated with the Federation of Korean Industries (FKI), predicted that if the Blue House relocates to Yongsan, it would generate approximately 1.8 trillion KRW in tourism revenue annually. This figure is about 10 times higher than the 200 billion KRW estimated earlier by the Korea Tourism Research Institute under the Ministry of Culture, Sports and Tourism. In particular, the report analyzed that the increase in gross domestic product (GDP) due to the rise in social capital would range from about 1.2 trillion KRW to 3.3 trillion KRW.

KERI released a report titled "Economic Impact Analysis of the Presidential Office Relocation to the Yongsan Ministry of National Defense Building" on the 30th. The report was commissioned by KERI to Professor Hyun-seok Kim of Pusan National University.

The report estimated that fully opening the Blue House to the public would generate tourism revenue of 1.8 trillion KRW annually. This assumption is based on the expectation that the effect of attracting domestic and international tourists would reach the level of visitors after the restoration of Cheonggyecheon in Seoul. The report analyzed that the full opening of the Blue House could attract 16.19 million domestic tourists and 510,000 foreign tourists annually. Of the 1.8 trillion KRW, tourism revenue from domestic and foreign tourists was estimated to be about 900 billion KRW each.

Regarding the estimation of tourism revenue effects, Professor Kim explained, "The net increase effect from fully opening the Blue House was estimated by using the annual number of visitors to Cheonggyecheon (17.4 million) as a baseline and subtracting the existing annual visitors to the Blue House (690,000)." He highly valued the Blue House’s special value as a place with beautiful scenery and where former presidents have worked. He also assessed that the full opening would have a significant tourism demand effect by opening hiking trails through Gyeongbokgung Palace, the Blue House, and Bukaksan Mountain. In particular, if tourism products connecting the Blue House and the Yongsan government office are developed, foreign tourists’ demand would be high as they could see places where current and former presidents have worked all at once.

Additionally, the report estimated that the economic effect from increased institutional trust among citizens due to the relocation of the presidential office, which would promote activities of economic agents, would amount to between 1.2 trillion KRW and 3.3 trillion KRW based on 2020 GDP.

Social capital is defined as tangible and intangible capital that promotes cooperation within the community, such as trust in national policies and institutions. The report argued that an increase in social capital leads to enhanced government trust, which in turn garners public support for policy implementation, improves policy effectiveness, and promotes information exchange, thereby contributing to economic growth. Specifically, it analyzed that if the new Yoon Suk-yeol administration relocates the presidential office to Yongsan and expands communication between the government and the public, it would activate mutual information exchange and create an opportunity to increase institutional trust, thereby enhancing the efficiency of government policies.

Professor Kim stated, "The relocation of the presidential office should be viewed not as a cost but as an investment," and added, "I hope it will serve as an opportunity to improve national efficiency and enhance public welfare in the long term."

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