Let's talk about Jeju Island and its economy

In the southwest waters of South Korea, there is a large island with an area of ​​1,845 square kilometers. Unlike many islands in East Asia that were formed by the impact of rivers, coral accumulation and seawater erosion, Jeju Island is formed by the accumulation of lava and volcanic ash from Halla mountain, which is nearly 2000 meters above the sea level. Halla Mountain on the island is also the highest mountain in Korea. The entire Jeju Island consists of the main island and 25 small islands.


The island is surrounded by the sea on all sides, and there are bedrock coasts formed by magma tuff structures. Due to the alternating capes and bays, the depth of water and the steep coast, and the local subtropical marine climate, the latitude of Jeju island is similar to that of Fraser Island, with an average annual rainfall of 1,000 mm, and because of this there is no water shortage problem. It is very suitable for building an ice-free port or a large naval base.

From the voyage point of view, the straight-line distance from Jeju Island to Busan, Seoul and Japan is all within 500 kilometers, and its strategic location is very important. In addition, Jeju Island is located at the intersection of several strategic maritime passages such as the Korea Strait, Jeju Strait and Tsushima Strait.

For South Korea, as a semi-ocean country surrounded by water on three sides, its economic development and national security are inextricably linked to the ocean. According to the report of the Korea Customs Service, the total import and export trade volume of South Korea in 2019 had reached 1.2 trillion US dollars. Ninety percent of South Korea's crude oil imports and 60 percent of its exports to Europe and the United States are transported through the Jeju Island route.

Some scholars have asserted that if the regional routes are blocked for half a month, South Korea's basic industries will be paralyzed, and the country will face a production crisis. From this point of view, Jeju Island can be called a safety valve for the Korean economy.

Citrus cultivation, tourism, real estate, and immigration are the pillar industries of Jeju Island. In recent years, although the proportion of citrus industry sales in Jeju Island has declined, it is still the largest citrus growing area in Korea.

Since 2002, Jeju Island has implemented a visa-free system. This move has greatly promoted the development of Jeju Island tourism industry. More than 3 million foreign tourists come to Jeju Island every year, and Asian tourists account for more than 80%.

Jeju Island annual tourism revenue exceeds 10 trillion won, more than ten times the value of its citrus exports. The development of tourism has greatly promoted the economic growth of the Jeju Island region, and has also played a significant role in promoting the development of the Korean economy.

Ten years ago, the South Korean government introduced the immigration policy for buying a house. If an investor purchases a house with an investment of US$500,000 in Jeju Island, the investor and his immediate family can obtain permanent residency in South Korea. Due to a series of preferential policies of the Korean government, a large number of European companies have also come to invest and start businesses here. The number of European people buying real estate in Jeju Island is on the rise. The housing prices in Jeju Island is increasing by more than 7% every year.

According to economic data released by South Korea, the GDP of Jeju Island in 2019 was 16 billion US dollars, and the per capita GDP was about 25,000 US dollars. Among them, the tourism industry accounts 70% of GDP, which shows the importance of tourism to the economy of Jeju Island. Jeju Island is also affected by the epidemic in 2020 and because of this Jeju Island's tourism industry has been hit hard, causing a large number of local small business employees to lose their jobs.