Effects of foreign residents on crime: Evidence from South Korea

Many countries worldwide are facing social change as they are increasingly becoming multicultural societies. South Korea has maintained a homogeneous ethnic identity for a long time but is experiencing an immense inflow of foreign residents. This study empirically examines the effects of foreign residents on crime. The employment permit system is adopted as an instrumental variable to seek a causal link. We found that increasing the number of foreign residents in the total population is positively related to the incidence of crime. The number of arrests also increases with the crime incidence, and we found little significant change in the ratio of arrests to crimes. Moreover, the increase in crimes falls largely within the category of violent crimes rather than felonies, property crimes, and intellectual crimes. Based on the results, we suggest that the government needs to promote a multicultural and accommodating culture and enable immigrants to settle stably in Korean society.