The Role of Enclave Economy in the Process of Immigrant Integration in Host Society: The Case of Ethnic Koreans from the Post-Soviet States in the Republic of Korea

Abstract

The collapse of the Soviet Union opened new paths for ethnic Koreans living in the new independent countries. As a result of political and socio-economic instability of the early post-Soviet era, forming sentiments led to migrations between the post-Soviet states, and, less often, to other destinations. On the other hand, globalization processes, as well as economic growth turned South Korea from one of the Asias donors of labor resources to a massive importer of foreign labor. The introduction of policies aimed at attracting overseas Koreans resulted in an increase in immigrant population, which, in turn, leads to widening of a spectrum of spheres in which immigrants are involved, including entrepreneurship. In the process of managing their own businesses immigrants use social networks, which can be observed in many countries, but the case of ethnic Koreans in the Republic of Korea is unique in a sense that the ethnic aspect here plays a very important role. The ethnicity of this particular group of immigrants is the same as one of the population of the host society. However, they are still separated from the majority due to several factors, such as cultural background, language, and socio-economic indicators. The purpose of this research is to analyze the impact of enclave economy in the process of immigrant integration using the example of ethnic firms owned by ethnic Koreans from the post-Soviet states and concentrated in Ansan and commercial districts in Dongdaemun (Seoul, South Korea). Using structural functionalism and the enclave economy theory, this study analyzes the implications of involvement into enclave economy through ethnic entrepreneurship and its impact on immigrant adaptation and integration and analysis of immigrants personal experiences through qualitative approach using in-depth biographical interviews with the actors involved. This study is expected to contribute to existing research on the process of immigrant integration and the role of ethnic entrepreneurship in this process. Immigrant integration is a complicated phenomenon which involves different factors that influence this process, and easing the process of adaptation for young overseas Koreans through employment and involvement into entrepreneurship might help both with improving demographic situation and boosting the economy of the state.