The Impact of Creative Industry on Korean Local Economy

<p>As Creative Industry (CI) has been recognized as a new leading industry for 21 century, Korean local governments also have been investing in the development of CI. Most of empirical works on the economic impact of CI were conducted in global or national scale of economy. There is no empirical study that provides a comparison of local economic impact between regions. To fill in this gap, this study aims to analyze local economic impacts of CI in each of 16 metropolitan cities and regions in South Korea, using the 2005 Inter-Regional Input Output Model. Creative Industry was categorized into four industries: Publication & Cultural Services, Business Services, Broadcasting, and Communication. The result is as follows. First, the local production spillover effect of CI, which remains in a region, was greater than that of manufacturing and service industries. Secondly, the local income effect of CI was greater than that of manufacturing industry, but smaller than that of service industry. Industry with the highest local income effect was Business services and Communication follows. Thirdly, all CI except for Publication & Cultural Services showed lower local economic impact than other service industry. Finally, there was little difference in the local spillover effect of production and income by regions, but that of employment showed a big gap by regions.