Experts argue that one of the problems with the local economy is that too much money leaves the island and is sent elsewhere in the country. Here’s Mike Laidman to explain.
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It was 72.7 billion won that flowed from Jeju Province to other parts of Korea in 2016, from both personal and business sources.

Among the nation’s collection of 16 provinces and special cities, 9 regions are losing their income to others. The largest outflow of capital is to Seoul and (경기) Gyeonggi Province. -----------C.G-------------------------

Local banks see much the same story when savings and loans are compared.

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The amount of savings is gradually decreasing, while the amount of loans is seeing a much sharper increase.

Last year, the total amount of loans exceeded the total amount of savings at local banks.
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This means that money isn’t circulating throughout Jeju, but is instead flowing out to the mainland.

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Money flows to businesses headquartered in Seoul

Experts discovered that money earned on the island flows mainly to big supermarkets and hotels headquartered in Seoul.

Also of note is that a considerable amount of money goes to other regions through big construction companies.

Experts are pointing out that this money outflow is accelerating as an increasing number of local consumers spend money at big shopping malls on the mainland.

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‘More spending needed at local businesses’

Specialists say that spending at local businesses must be boosted. For this to be accomplished, businesses that expand to Jeju must be registered at the tax authority here.

INTERVIEW
Kim Dong-uk / Professor, Jeju National University
Taxes raised from corporations registered here can be reinvested locally, leading to a cycle of earning and spending within Jeju.
<인터뷰 : 김동욱/제주대학교 교수>
"여기에 주소지를 둔 본점의 형태로 운영해서 여러 세금 등이 제주지역에 재투자되는 이런 선순환을 가져야 하고요."

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Local currency usage proposed

Some have proposed the use of a local currency, like vouchers to combat the problem.

But despite some of the island’s economy-boosting policies, money just doesn’t want to stay in Jeju.

[Reporter] Mike Laidman
[Camera] Kim Seung-cheol

Moving forward, the province can look at providing more support to local corporations in the long term while it takes time to restructure local industry.

Mike Laidman, KCTV