Busan, once a dynamic port city with aspirations of becoming a “Global Hub City” and a magnet for young talent, is facing a critical moment. Despite city officials’ ambitious plans to transform Busan into a globally competitive urban center, the reality on the ground tells a story of departure rather than attraction. Young people, who are vital to the city’s future, are leaving in unprecedented numbers, drawn to other regions, particularly the Seoul metropolitan area, in search of better opportunities, stable careers, and a higher quality of life. Meanwhile, Busan has become increasingly reliant on tourism and low-wage service jobs, a trend that jeopardizes its long-term economic resilience.
The question is urgent: Can Busan create an environment that genuinely supports young people’s needs, or will it continue to lose its best and brightest to regions with better job prospects, more progressive workplaces, and more vibrant cultural scenes? Busan must not only examine its shortcomings but also enact bold reforms to retain and attract young talent if it hopes to sustain itself as a true global hub.
The Sobering Reality of Youth Outmigration
It’s a wake-up call for Busan to recognize that a “global hub” status requires more than just attractions for tourists; it demands meaningful investments in industries that offer stable, high-paying jobs, a vibrant cultural scene, and an adaptable, youth-friendly workplace culture.
Recent data paints a bleak picture of Busan’s current trajectory as it struggles to retain its younger population. Over the past decade, Busan has witnessed the fastest decline in its youth demographic among South Korea’s major metropolitan areas. According to a report by the Korea Employment Information Service, the percentage of residents aged 15 to 29 in Busan dropped from 6.69% in 2014 to 5.95% in 2023. This sharp drop, mirrored in nearby regions such as Ulsan and Gyeongnam, signals a growing sentiment among young people that Busan’s job market, lifestyle offerings, and career prospects are inadequate compared to what they could find elsewhere, particularly in the capital region.
It’s not just a numbers game. Survey data reveals that many of Busan’s young residents would actually prefer to stay in their hometown if they had access to stable, well-paying jobs and appealing lifestyle options. Instead, they are presented with an economy dominated by low-wage service roles tied to tourism and seasonal events. Additionally, those who want to establish themselves through entrepreneurship face a hyper-competitive environment in sectors like food and retail, where business failures have become increasingly common. This forces many young people to look to Seoul and other metropolitan areas, where a dynamic economy driven by technology, finance, and the creative sectors offers more promising and sustainable career paths.
The appeal of Seoul, and the broader capital region, extends beyond just job opportunities. Young professionals are increasingly attracted to workplaces that emphasize flexibility, work-life balance, and a collaborative culture—all factors that are in high demand but limited in Busan. Seoul’s growth industries and innovative work environments offer more than just a paycheck; they provide career development, opportunities for advancement, and a quality of life that Busan has not yet managed to replicate. In contrast, many Busan-based companies still adhere to traditional workplace structures, characterized by rigid hierarchies and conservative management practices, which tend to alienate young talent seeking a more dynamic and participatory workplace culture.
The challenges of living in Busan extend beyond the job market as well. The cost of living, including housing prices, has risen in recent years without a corresponding increase in income levels, making it harder for young people to afford a comfortable lifestyle. While Seoul is also known for its high living costs, it offers better public transportation, more diverse housing options, and a richer selection of cultural, educational, and social amenities, which enhance the overall quality of life. For young people considering where to build their futures, the choice becomes clear.
Additionally, the rapid increase in self-employment in Busan, often seen as an alternative to traditional employment, underscores the lack of stable jobs. From 2018 to 2023, self-employment in Busan rose by 23%, the highest increase among South Korea’s metropolitan areas. This surge reflects limited salaried job options and, unfortunately, leads many into a saturated and precarious market, particularly in the food and retail sectors. The financial instability associated with self-employment in these oversaturated markets has led to a significant rise in business closures, with over 2,000 restaurants in Busan shutting down this year—a 75% increase from the previous year. This bleak environment creates a feedback loop of economic instability, dissuading young people from building their futures in Busan.
Busan’s inability to provide stable, appealing career paths raises serious concerns about the city’s vision of itself as a “global hub.” Attracting young, talented residents is a cornerstone of any major city’s economic vitality and cultural vibrancy. With each young professional who leaves, Busan loses not only a part of its workforce but also potential innovation, creativity, and community engagement. If this trend continues, the city’s long-term economic prospects and cultural richness could be severely compromised, transforming Busan from a bustling port city into a place where tourism and low-wage service roles dominate, with limited pathways for career-oriented individuals.
To retain its youth and secure its future, Busan must urgently rethink its approach. Focusing on tourism and seasonal events may bring in visitors, but it does little to create the stable, growth-oriented economy that young residents need. It’s a wake-up call for Busan to recognize that a “global hub” status requires more than just attractions for tourists; it demands meaningful investments in industries that offer stable, high-paying jobs, a vibrant cultural scene, and an adaptable, youth-friendly workplace culture. Otherwise, Busan risks becoming a place young people fondly remember but choose to leave behind.
Tourism-Centric Growth and the Low-Wage Trap
This year’s Busan Fireworks Festival drew over a million spectators, filling the city with lights and cheers. Yet, beneath the brilliance of the fireworks lies a sobering reality for the young people of Busan.
At the core of Busan’s current economic strategy is a heavy reliance on tourism and large-scale events. While initiatives like the annual Busan Fireworks Festival, the Busan International Film Festival, and Haeundae beach tourism draw millions of visitors and provide a temporary economic boost, these events contribute little to the sustainable, long-term economic stability that young professionals need. Most jobs generated by tourism are seasonal and low-wage, offering limited opportunities for career growth or financial security. Young people in Busan find that while tourism creates jobs, they are rarely the stable, well-paying, and fulfilling positions that are crucial for retaining a skilled workforce and supporting a viable future.
This tourism-centered approach creates an appealing facade, attracting millions of tourists who gather to enjoy the dazzling display of fireworks over the Busan skyline. This year’s Busan Fireworks Festival drew over a million spectators, filling the city with lights and cheers. Yet, beneath the brilliance of the fireworks lies a sobering reality for the young people of Busan. These bright displays, while spectacular, cast long shadows over the everyday struggles of local residents who grapple with an economy that increasingly feels hollow. Young professionals see the vibrant scenes that attract tourists, but for them, the city’s reliance on events and temporary boosts cannot replace the stable career paths and opportunities they seek.
While the festival and other tourist attractions give Busan a momentary sense of grandeur, they do little to foster a sustainable economy that young residents can depend on. The tourism and service sectors—though profitable in the short term—trap the city in a cycle of low-wage, low-security jobs that fail to address the needs of young people who want meaningful careers and a future in their hometown. These jobs, often tied to seasonal demands, do not provide the financial security or professional growth that would keep young talent invested in the city. Instead, they highlight the gap between the bustling, lively scenes seen by tourists and the economic instability experienced by residents behind the scenes.
Busan is not alone in its struggle to balance tourism with economic sustainability. Cities like Barcelona and Amsterdam, which also face the challenge of managing tourism, have taken significant steps to diversify their economies and prioritize high-quality employment options. By investing in sectors such as technology, education, and environmental industries, these cities are fostering year-round employment and creating stable, skilled jobs that are less vulnerable to the seasonal fluctuations of tourism. In contrast, Busan’s heavy focus on tourism, without significant investment in diversified industries, threatens to turn the city into a transient playground rather than a place where young people can envision a stable, fulfilling life.
Another consequence of Busan’s tourism-centered model is the “low-wage trap.” Many young people who wish to stay in Busan find themselves limited to lower-paying service jobs or are forced into the highly competitive self-employment market. This economic landscape discourages young residents from settling down and building a future in the city, as they feel pushed into positions that fail to align with their skills, education, or aspirations. For recent graduates and young professionals, the lack of high-wage, stable careers in fields like technology, finance, or the creative industries underscores the perception that Busan cannot provide the support needed to achieve long-term success.
Moreover, Busan’s emphasis on tourism-driven growth has impacted the local housing market. The rising demand for short-term accommodations has pushed up housing prices, making it harder for residents to find affordable long-term housing. This trend forces many young people to look for housing elsewhere, as they cannot compete with the costs associated with a market geared towards tourists. Additionally, infrastructure resources are often prioritized for tourist-heavy areas, creating a sense of imbalance where resident needs feel secondary to the demands of visitors.
Without a strategic shift toward sectors that attract skilled workers, such as technology, marine research, environmental sciences, and creative industries, Busan risks becoming a fleeting attraction for tourists rather than a city where young people can envision meaningful careers. The city’s overreliance on tourism leaves its “global hub” aspirations as little more than a slogan—an empty promise overshadowed by the glitz of fireworks that mask the economic fragility beneath.
For Busan to truly evolve into a global hub that retains its youth and attracts talent, it must take decisive action to diversify its economy. This means fostering industries with strong growth potential that can offer attractive career paths, stable wages, and professional development. By investing in emerging fields and creating sustainable job opportunities, Busan can build a foundation that truly supports its residents, making it a place where young people not only want to stay but can thrive.
The path to becoming a global hub requires Busan to offer more than fleeting moments of brilliance. A sustainable economy rooted in diverse industries, quality employment opportunities, and a high standard of living will retain young residents and draw in global talent, investors, and businesses. If Busan fails to act, however, it risks becoming a city of short-term attractions and missed potential, where young people continue to look elsewhere to build their futures. The city must look beyond the spectacle of fireworks and embrace a vision for a vibrant, inclusive, and resilient future—one that is rooted in a solid economic foundation that goes beyond tourism.
Self-Employment Surge and the Perils of Over-Saturation
Faced with limited job opportunities, more and more people in Busan are turning to self-employment, but this shift comes at a cost. Between 2018 and 2023, the number of self-employed individuals in Busan grew by a staggering 23%, the highest increase among South Korea’s metropolitan areas. While this rise might seem like a sign of entrepreneurial spirit, the reality is far more complex and troubling. For many, self-employment is not a choice but a necessity, a last resort in a city where stable, salaried jobs are scarce. The rapid increase in self-employment reflects an economic landscape where traditional career opportunities are lacking, forcing residents into precarious, competitive markets that offer little security or support.
The surge in self-employment has led to severe over-saturation, particularly in the food and retail sectors, where small businesses compete fiercely for survival. Restaurants, cafés, and small shops line the streets of Busan, but with so many vying for limited consumer attention, the competition has become brutal. This year alone, more than 2,000 restaurants have closed in Busan—a 75% increase from the previous year—illustrating the harsh realities faced by many small business owners. These closures are not isolated incidents; they reveal an unsustainable economic pattern where only a fraction of businesses can survive the fierce competition, while many others struggle to break even before eventually closing their doors.
As a result, vacant storefronts and empty commercial spaces are becoming more common in Busan’s neighborhoods, standing as stark reminders of the city’s struggling economy. Streets that once bustled with small businesses are increasingly lined with empty shops, creating a feeling of desolation that contrasts sharply with Busan’s aspirations to become a thriving, vibrant city. This phenomenon signals not only economic instability but also a deeper, structural issue within the city’s economy, where job scarcity drives people into oversaturated markets that cannot support long-term growth.
Busan’s self-employment surge highlights a precarious cycle: as more people turn to self-employment out of necessity, the competition within limited sectors intensifies, making it harder for any individual business to succeed. This leads to higher failure rates, which in turn create a disheartening environment for both current and aspiring entrepreneurs. For many, the dream of self-employment quickly becomes a financial trap, with high overhead costs, minimal profits, and relentless competition. As businesses close, their owners face personal financial losses and debt, further diminishing the city’s economic resilience.
Moreover, the rise in self-employment has contributed to a weakening of Busan’s wage structure. Since many individuals rely on self-employment in low-margin sectors, average income levels for self-employed workers often fall below that of salaried positions, even when adjusted for expenses. As a result, many self-employed individuals in Busan are unable to achieve the financial stability or upward mobility they might have found in a traditional job market. This undercuts the quality of life for many residents, who find themselves working longer hours with less income security, health benefits, or retirement plans compared to salaried workers.
The implications extend beyond the economy to the social fabric of the city. As businesses close and storefronts sit vacant, Busan loses elements of its local character and community charm. What was once a network of local enterprises contributing to the unique identity of neighborhoods becomes a collection of empty spaces, each one a visible testament to the economic hardships faced by residents. This also has a psychological impact on the community, fostering feelings of instability and insecurity among residents who see their surroundings transform into commercial graveyards.
If left unchecked, the cycle of self-employment saturation, business failure, and economic instability will severely undermine Busan’s potential for growth. The city’s reliance on self-employment as a substitute for traditional jobs is unsustainable and risks turning neighborhoods into transient business zones rather than stable, thriving communities. To truly become a sustainable, prosperous city, Busan must address the root causes of job scarcity and create an economic environment where people do not feel compelled to turn to self-employment as a last resort.
Breaking out of this cycle will require a multipronged approach. Busan must work to diversify its job market, creating stable, salaried positions in industries such as technology, maritime research, and green energy. This would provide meaningful alternatives to self-employment, reducing over-saturation and helping to establish a more balanced economy. Additionally, support programs tailored to small businesses—such as access to affordable financing, training in financial management, and resources for marketing and customer acquisition—could improve survival rates among self-employed individuals, contributing to a healthier, more stable small business ecosystem.
For Busan to fulfill its vision as a global hub, it must provide an economic foundation that supports both small businesses and salaried workers, fostering a balanced ecosystem where entrepreneurship is a choice rather than a necessity. By creating a city where stable jobs and small businesses can coexist sustainably, Busan can ensure that it remains a vibrant and attractive place for current residents and future generations alike.
The Broader Impact on Busan’s Economy and Social Fabric
The exodus of young people and the rise of precarious, unstable employment are not merely economic challenges; they strike at the very heart of Busan’s social and cultural identity. A dynamic youth population is essential to any city’s vibrancy, bringing fresh ideas, cultural innovation, and community engagement. Young people are the driving force behind creative industries, nightlife, tech innovation, and progressive social movements—all elements that make a city lively, attractive, and competitive. However, as Busan’s youth population dwindles, the city risks losing this essential source of vitality, creating a cultural void that impacts the lives of all residents and weakens the city’s appeal for future generations.
When young people leave, they take with them not only their economic potential but also their cultural contributions. Cafés, art galleries, music venues, and start-up spaces are among the first to suffer in a city where young creatives and entrepreneurs are absent. Over time, the diversity of social and cultural activities that make a city vibrant gives way to a more stagnant, homogenous environment. For Busan, the departure of its youth population is like a slow drain on the energy and creativity that should define a global city. This erosion of cultural richness and community engagement makes the city less appealing to new residents, which, in turn, accelerates the cycle of outmigration.
The social consequences of this shift are profound. With fewer young people to fuel change, Busan’s neighborhoods may grow quieter and more isolated. The connections and networks that young people often build—through schools, start-ups, and social gatherings—are crucial for creating a strong sense of community and civic identity. As these networks weaken, the community becomes fragmented, and the loss of social cohesion further diminishes the city’s attractiveness for both current and potential residents. A thriving city needs spaces where different generations interact, where ideas are exchanged, and where cultural activities can flourish, but with the departure of its young people, Busan faces a future where these spaces and interactions are less vibrant and less frequent.
An aging population, meanwhile, places a growing strain on public resources. As the demographic shifts toward an older age profile, the demand for healthcare services, senior housing, and social support increases. This puts pressure on Busan’s already limited resources, requiring a reallocation of funds that might otherwise go toward youth programs, educational initiatives, or infrastructure improvements. Busan’s budget will need to prioritize senior care and health services, which could limit investments in areas that could foster growth and attract younger residents. This shift not only impacts the city’s economic potential but also narrows its social priorities, making it harder to implement policies that could make Busan an appealing place for young people to stay or return.
The decline in the youth population and the subsequent aging of the community also threaten Busan’s workforce sustainability. With fewer young professionals entering the job market, industries that rely on a steady influx of skilled labor will face challenges in recruitment and retention. This can slow down local business growth, innovation, and competitiveness, impacting both local enterprises and larger corporations that might otherwise consider expanding in Busan. When businesses struggle to find talent, they are more likely to relocate or downsize, further weakening the city’s economy and reducing job opportunities. The compounding effect of an aging population, a shrinking workforce, and limited economic diversity may lead to a self-reinforcing cycle of economic stagnation and social decline.
Cities around the world have faced similar dilemmas, particularly in regions experiencing rapid aging or rural depopulation. Many have responded by adopting youth-centered policies designed to attract and retain younger residents. Examples include tax incentives for young homeowners, subsidies for creative entrepreneurs, or investments in high-growth industries like technology and green energy. These policies aim to make cities more livable and appealing to younger generations by providing both economic opportunities and lifestyle amenities. For Busan, adopting such inclusive policies could be a way to reverse its current trajectory and create a more balanced, sustainable future.
However, if Busan fails to take bold, youth-centered action, it risks falling into a downward spiral where population decline and economic stagnation feed each other in a vicious cycle. Without the fresh perspectives, workforce contributions, and cultural engagement that young people bring, Busan’s “global hub” ambitions may become increasingly unrealistic. The city could become a place where the energy of youth and the innovation of new ideas are merely memories, replaced by the challenges of an aging population and an economy that struggles to keep up with modern demands.
The path forward for Busan requires a reevaluation of its priorities. To foster a vibrant, inclusive city, Busan must develop policies that support young people’s aspirations, from stable job opportunities to affordable housing, cultural resources, and public spaces where communities can connect and thrive. In doing so, Busan can create a foundation that not only retains its youth but also attracts new talent, enriching the city both economically and socially. The question remains: will Busan seize this opportunity to reimagine itself as a city of the future, or will it continue to lose its brightest minds and face a future of stagnation?
Potential Future Scenarios for Busan
Best-Case Scenario
If Busan makes a concerted effort to address its structural economic challenges, the city could transform into a genuine global hub capable of retaining its young talent and fostering sustainable growth. Achieving this best-case scenario would require bold policy shifts, particularly in job creation within high-potential industries like technology, marine research, and environmental innovation. By focusing on these sectors, Busan could leverage its geographical strengths as a coastal city while also catering to the evolving interests and aspirations of young professionals seeking both career development and societal impact.
This shift would need to be accompanied by significant investments in affordable housing and infrastructure, making it feasible for young people to live comfortably while pursuing meaningful careers. Affordable housing options in accessible locations would provide a strong incentive for young professionals to settle in the city long-term. Additionally, enhancing cultural infrastructure—such as arts venues, music festivals, co-working spaces, and public parks—would help create a dynamic urban environment where residents not only work but also enjoy a rich quality of life.
Through a coordinated approach that combines economic diversification with lifestyle improvements, Busan could position itself as a viable alternative to Seoul. A city that offers ample job opportunities in growth-oriented sectors, affordable living conditions, and a high quality of life would naturally attract young professionals, creating a self-sustaining cycle of growth and innovation. This, in turn, would foster a vibrant local economy, boost local consumption, and drive sustained investment in the region. In this best-case scenario, Busan would not only retain its youth but also attract global talent and investment, solidifying its position as a globally competitive city.
Worst-Case Scenario
Without proactive intervention, however, Busan faces a far grimmer future. The current overreliance on tourism and the continued growth of low-wage jobs could accelerate the exodus of young people, leaving an aging population to support an economy that is ill-prepared for the challenges of the future. This worst-case scenario would result in stagnant local consumption, as fewer working-age residents means reduced demand for housing, retail, and cultural services. With young professionals leaving for better opportunities, Busan’s economic dynamism would further decline, leading to a visible reduction in commercial activity and vitality across the city.
As the youth population dwindles, empty storefronts and vacant commercial spaces would become increasingly common, creating an environment that feels less vibrant and more economically distressed. This decline in local businesses and community engagement would have a cascading effect on the city’s economy, eroding both its revenue base and its appeal as a place to live and work. With fewer taxpayers and shrinking economic activity, the burden on public services would grow, especially as the remaining population continues to age. In this worst-case scenario, Busan’s global hub aspirations would remain out of reach, leaving the city facing a future defined by population decline, economic stagnation, and social isolation.
The failure to create a diversified, resilient economy would also mean missed opportunities to establish Busan as a leader in sectors like technology, green energy, and marine research—industries that could otherwise align with Busan’s natural strengths and geographic advantages. As other cities move forward with investments in these high-growth sectors, Busan would find itself falling further behind, becoming increasingly reliant on tourism-driven income that is both seasonal and unpredictable. Ultimately, without intervention, Busan could risk becoming a transient stopover for tourists rather than a place where young people envision their long-term futures.
Youth-Centered Vision for Busan
To ensure a prosperous future, Busan must actively pursue a vision that centers on the needs and aspirations of young people. A future-focused, youth-friendly Busan would prioritize job diversity and economic stability by investing in high-demand sectors, offering a variety of career paths that align with the skills and goals of its young residents. Sectors like technology, environmental sciences, and creative industries offer the potential for long-term, stable employment that aligns with the career ambitions of young professionals. By building a workforce that thrives in these areas, Busan could lay the groundwork for a diversified, sustainable economy that is not overly reliant on any single industry.
Additionally, affordable and attractive housing solutions are essential to creating a livable city where young professionals can envision their futures. Affordable housing projects tailored to young residents, located near public transport hubs, would make it easier for young people to stay in Busan and build lives there. Housing policy should focus not only on affordability but also on accessibility and community-building, creating neighborhoods that offer social connection and a sense of belonging.
Investing in social infrastructure—such as co-working spaces, community centers, parks, and cultural venues—would further enhance Busan’s appeal to young residents. Social spaces where people can connect, collaborate, and innovate are vital for fostering a community where young people feel engaged and valued. By nurturing a rich cultural and social landscape, Busan can attract young talent who seek both professional and personal growth, making the city an attractive place for individuals looking to balance work with a high quality of life.
Realizing this youth-centered vision for Busan will require substantial investments, careful urban planning, and an unwavering commitment to creating a city that truly supports the aspirations of its young residents. The payoff, however, could be transformative. By building an economy rooted in diversified industries and creating a welcoming environment for young professionals, Busan can pave the way for a thriving, resilient future. If Busan embraces this vision, it will not only retain its youth but also position itself as a global hub that draws talent from across the country and beyond—becoming a city where young people from all over see a bright and promising future.
Building a Resilient Future for Busan
Busan’s current trajectory highlights a pressing need for structural economic reforms that go beyond temporary tourism boosts and low-wage job creation. While festivals, events, and tourism attractions bring a vibrant energy to the city, they do not replace the stable, high-quality career opportunities that young residents need to build meaningful lives. To truly become the “Global Hub City” it envisions, Busan must move away from its overreliance on transient, tourism-based income and toward a diversified economy that supports young talent in sustainable ways.
The foundation of Busan’s future success lies in creating a youth-friendly environment that prioritizes economic stability, career growth, and quality of life. By investing in high-growth sectors such as technology, environmental innovation, and marine research, the city can establish career paths that align with the aspirations of young professionals. This strategy must also include affordable housing options, accessible public spaces, and social infrastructure that fosters a sense of community and belonging. Through these changes, Busan can transform itself into a city where young people want to stay and thrive.
Without intervention, Busan risks sliding further into economic stagnation and population decline. The current outflow of young people and rising number of vacant storefronts serve as warning signs of deeper, systemic issues within the city’s economic structure. An aging population, shrinking tax base, and limited job diversity could lead Busan down a path of diminishing growth, making it increasingly difficult to achieve the vibrant, inclusive city it aims to be. Taking decisive action now is essential to reversing these trends and preventing further decline.
To become a true global hub, Busan must prioritize resilience and adaptability. This means creating a diversified economy that is less vulnerable to seasonal fluctuations and economic downturns, with policies that support both established industries and emerging sectors. By fostering an environment where young professionals can envision stable, fulfilling careers and by enhancing cultural and social amenities, Busan can elevate itself as a leading city not only in South Korea but on the global stage.
Busan stands at a critical crossroads: it can continue on its current path, risking further outmigration and economic instability, or it can make bold changes to realize its vision of a global, youth-centered city. The choice requires commitment, foresight, and substantial investment in the people who will shape Busan’s future—its young residents. With a focused effort to build an inclusive, sustainable economy, Busan has the potential to not only retain its brightest minds but also attract new talent from across the nation and beyond, fulfilling its dream of becoming a resilient, globally recognized city.
By acting decisively and embracing a future built on sustainable growth, Busan can transform from a city with ambitious plans to one that truly delivers on its promises, becoming a place where people of all ages find opportunity, community, and a future they can believe in.
