Tourists walk through a street in the Myeong-dong shopping district of central Seoul, Jan. 31. Yonhap

Attracting workers from abroad is playing a key role in Korea's economic growth, with the number of foreign residents expected to surpass 3 million within the next five years. However, government expenditures for these groups are also anticipated to rise, according to a report released on Friday.

A 1 percent increase in the foreign resident population leads to a 1.33 percent rise in gross regional domestic product in the agriculture and fisheries sector, a 0.88 percent increase in mining and manufacturing and a 0.36 percent growth in the service industry, according to a report by the Migration Research and Training Centre (MRTC).

The MRTC is a nongovernmental organization established in 2009 through an agreement between the Korean government and the United Nations agency International Organization for Migration.

The Yearbook of Korea Immigration Statistics shows that foreigners made up 4.9 percent of Korea's population as of 2023. This share had been steady at 4.9 percent in 2019 but fell to 3.9 percent in 2020 and 3.8 percent in 2021, largely due to the impact of the COVID-19 pandemic. With the pandemic shifting to an endemic phase, however, the proportion of foreign residents began to rise again, reaching 4.4 percent in 2022.

If this trend persists, the number of foreign residents in Korea is expected to exceed 3 million by 2030. As of December 2023, the Ministry of Justice reported that the foreign resident population had already surpassed 2.65 million.

As the foreign population in Korea continues to grow, their economic influence is becoming more pronounced. With income levels on the rise, foreign workers are playing an increasingly active role in domestic consumption, further shaping the country's economic landscape.

According to Shinhan Card, the total amount of card spending by foreign residents in Korea increased by 65 percent over the past five years. In 2019, the total amount of card spending by foreign residents was 34.1 trillion won ($23.5 billion), but in 2023, it increased to 56.2 trillion won. The average annual card spending per foreign resident also increased from 3.91 million won to 5.15 million won during the same period. This is equivalent to 73 percent of the average annual card spending per Korean.

This trend is interpreted as a result of the expanding range of jobs that foreign workers are taking on. While many were initially employed in menial tasks such as restaurant assistants and building management, they are now increasingly entering fields with higher incomes.

Meanwhile, the government's expenditures related to the increase of the foreign population are also expected to grow. The budget allocated for foreigner and immigration policies shows an increase from 286.5 billion won for 176 projects in 2020 to 350.8 billion won in 2023.