Although it has been less than 30 years since the Act on the Promotion of the International Conference Industry was enacted, there are now as many as 18 exhibition and convention centers nationwide. Korea has even ranked first in the world in the number of international conferences hosted and continues to maintain world-class competitiveness. Its capabilities are recognized internationally, as evidenced by its role in managing overseas exhibition and convention centers in places like New Delhi, India, and Penang, Malaysia. These achievements are the result of the sweat and hard work of on-site experts who have pulled all-nighters in fierce bidding wars and spent years preparing to host a single event.
◇Treated as a “Tax-Guzzling Beast” Despite World-Class Competitiveness
Yet behind these achievements, a familiar pattern repeats itself. Every time a local government leader changes, the convention center is reduced to a “tax-guzzling behemoth,” and its operating deficits snowball. New leaders disparage their predecessors’ achievements, budgets are cut, and operations are scaled back. It is a recurring pattern: facilities that were the pride of the region just a few years ago become targets of criticism simply because the administration has changed.
The central government is no different. In next year’s proposed government budget, the Ministry of Culture, Sports and Tourism’s budget for supporting the MICE industry has been reduced from 17.3 billion won this year to 15.9 billion won. The response to an industry where foreign participants have increased by over 30% in a single year and the number of international conferences has doubled is a budget cut. It is surprising enough that the annual budget for fostering the MICE industry in a country competing for the top spot globally in hosting international conferences falls short of 20 billion won, but the decision to cut even that amount is a move that runs counter to the trends of the times. Whether at the local or central level, why is our administration so lacking in long-term vision?
Even a cursory look at the nature of the MICE industry reveals just how hasty this assessment is. This industry is not structured in such a way that the budget invested this year yields immediate results. Decisions to host major international conferences are often made eight or even ten years in advance. The effects of events held this year may not become apparent for two to three years, or as long as five years.
What deserves more attention than direct effects—such as venue revenue or the number of participants—are the indirect effects that gradually accumulate for the city and the industry. This is because the “trickle-down effect”—where thousands of international experts experience the city, return home, and talk about it—creates new opportunities. Evaluating value that cannot be captured on a single income statement solely based on that statement will never yield an accurate answer.
The answer becomes clear when you consider the difference between cities with convention centers and those without. What changes occurred in the region before and after the center was built? International academic conferences are held, hotels and restaurants fill up with guests, and local universities and businesses connect with the world. The name of a city, previously unknown abroad, begins to appear on the international stage.
◇We Must Focus on the Value Gained by the City Rather Than Immediate Deficits
What matters is not how much profit the center itself generated, but how many opportunities and how much value it brought to the city. This is why major cities around the world view convention centers as public infrastructure—like roads and airports—that underpin a city’s competitiveness.
It is counterproductive to keep harping on deficits and engaging in blame games over a center that has already been built. The question we must ask now is not “Why was it built?” but “How can we make better use of it?” We must discuss how to foster specialized trade shows linked to regional strategic industries, how to train and retain professionals skilled in attracting international events, and what institutional and financial foundations to establish for stable operations. Cutting budgets and shifting blame based solely on immediate financial figures—without understanding the characteristics and ripple effects of the industry—is unbecoming of a country with the world’s 10th-largest economy.
Moreover, the importance of the MICE industry is greater now than ever before. Artificial intelligence (AI) is completely transforming the business environment, and Generation Z—which has grown up in a digital world—is emerging as the driving force behind consumption and economic activity. In an era where anything can be connected through a screen, what has paradoxically become even more precious are the opportunities for people to meet face-to-face, build trust, and share experiences. The MICE industry is precisely the sector that designs these encounters and experiences and connects them to new business opportunities.
The resilience that allowed a country once reliant on aid to grow into a donor nation stemmed from a vision that looked far into the future rather than fixating on immediate profits and losses. The MICE industry needs that same vision. Restoring the budget cuts made during the National Assembly’s budget review process is the first step. This must be supported by medium- to long-term development strategies and policy consistency that remain steadfast even as administrations and local leaders change. It is time to find the answer to how we can turn the hard-won competitiveness we have built into an even greater national asset.
