Open Days University, European Open Days University, European Commission Commission   

Title Regional Development Policies in Korea: Title Regional Development Policies in Korea: Recent Trends Recent Trends

Open Days University, European Open Days University, European Commission Commission   

Title Regional Development Policies in Korea: Title Regional Development Policies in Korea: Recent Trends Recent Trends

Presenter: Young-Chool Choi  

Professor, Department of Public Administration, and Director, Social Sciences Research Institute, Chungbuk

National University, KOREA;  President, Korea Association for Policy Analysis and Evaluation

I. Regional Development in Korea: Current Conditions and Problems

II. Government’s Policies for Addressing Regional Problems

III.The Government’s Regional Development Model

Contents

I. Regional Development in Korea: Current Conditions and Problems

1

Problem 1: Concentration of population on the capital region and consequent conflicts between capital and non-capital region  The population has been concentrated on capital region since 1960s 

4

Figure 1 Map of capital and non-capital region

Table 1 Proportion of the population in terms Table 1 Proportion of the population in terms of capital and non-capital region s (%) of capital and non-capital region s (%) Table 1 Proportion of the population in terms Table 1 Proportion of the population in terms of capital and non-capital region s (%) of capital and non-capital region s (%)

Category Nationwide Capital Region Proportion of capital

region (%)

Population/Housing

area(km2 )('07) 99720 11745 11.9

population(thousands)

('07) 49269 23963 48.6

housing supply rate(%)

(.06) 107.1 96.9  

Regional Economy

GRDP(billion, Korean

currency)('06) 851,789 406,303 47.7

manufacturing

factory('05) 117,205 67,079 57.2

bank deposit(billion,

Korean currency) 592,721 407,361 68.7

Function

University('06) 175 68 38.9

government

organisation('06) 403 344 85.4

hospital('05) 49,566 25,488 51.4

Population trend of capital and Population trend of capital and non-capital region non-capital region Population trend of capital and Population trend of capital and non-capital region non-capital region

Population proportion

Non-capital Region

capital Region

Source : Statistics Agency

year

Figure 2 Population trend

Regional Development in Korea: Current Conditions and Problems

1

Problem 2 : deepening of regional disparity Worsening of Gini Coefficient:The 2003 Gini Coefficient of Korea is 0.18, higher than the OECD average of 0.15.

 4

Figure 3 Gini Index of TL3 regional GDP per capita

Gini Index of GDP per capita and per cent of Gini Index of GDP per capita and per cent of population in regions with low GDP per capita, population in regions with low GDP per capita, 2005 (TLS) 2005 (TLS)

Gini Index of GDP per capita and per cent of Gini Index of GDP per capita and per cent of population in regions with low GDP per capita, population in regions with low GDP per capita, 2005 (TLS) 2005 (TLS)

Figure 4 Classification ofCountries according to Gini index of GDP per capita

Area Population GRDP GRDP Per Capita

Capital Region 247 3 9 213

East South Region 241 29 49 81

Daekyung Region 186 60 79 216

Honam Region 180 61 81 221

Chungcheong

Region 212 70 74 194

Kangwon Region 211 208 195 224

Jeju Region 311 294 290 232

Source: Regional Development Commission (2009) Note: Area is based on 2005, and GRDP on 2004

Source: Regional Development Commission (2009) Note: Area is based on 2005, and GRDP on 2004

Problem 3: Region’s lack of global competitivenessThere is a lack of competitiveness in the regions

Table 2 Comparison of domestic regions with OECD 324 regions (unit: rank)

1Problem 4: failing to respond to regionalisation and decentralisation (global mega-trend)

There has been a maintaining of outdated local government areas and structures (two-tier structures). In addition, overlapping and ineffective projects for balanced regional development have been undertaken. Also, many projects are similar in nature and overlap functionally, causing inefficiency.

 

4

Examples of projects implemented Examples of projects implemented since 1970s are as follows: since 1970s are as follows: Examples of projects implemented Examples of projects implemented since 1970s are as follows: since 1970s are as follows:

1970s 1980s 1990s 2000s 2010s

New Community Development Movement(1971)

Island Comprehensive Development Project (1988)

Small-sized Town Project (1972)

Isolated and Insulated Area Development Project (1990)

Settlement Infrastructure Expansion Project (1990)

Countryside Village Project (1991)

Mountain Village Development Project (1994)

Fishing Village Project (1994)

Development Promotion Area Project (1995)

Area Specification Development Project (1997)

Culture and Toursim Resources Development Project (1999)

Fishing Village-experiencing Project (2002)

Traditional Theme-based Rural Development Project (2002)

Green Rural Village-Experiencing Project (2002)

Military Borderland Development Project (2003) Regional Specification

Development District Project (2004)

Specified Item Support Project (2004)

Hometown Industry Support Project (2004)

RIS Project for Rural and Mountainous Regions (2004)

New Vitalization Project for Rural Area (2004)

Village Comprehensive Development Project (2004)

Eliciting Urban Residents into Rural Area Project (2006)

Elementary Sphere of Life Development Project (2008)

Figure 5 Examples of projects implemented

II. Government’s Policies for II. Government’s Policies for Addressing Regional ProblemsAddressing Regional ProblemsII. Government’s Policies for II. Government’s Policies for Addressing Regional ProblemsAddressing Regional Problems

Policy 1: strengthening regional competitiveness by super regionalisation From 16 provincial development to 5+2 super regional development (present structure =16 Provinces, 230 Districts)

Figure 6 Classification by region

5+2 super regional development strategy

5+2 super regional development strategy

Figure 7 5+2 super regional development

Policy 2: Making an elementary sphere of life development plan and utilizing it to alleviate regional disparities

The lives of rural area residents should be improved by making an elementary sphere of life development plan (for health, education, transport, jobs, etc.) and supporting it

Figure 8 Map of 163 elementary spheres of life

Policy 3: devolving power to local government

Central government power should be devolved to local government. This involves:

-devolving functions of special purpose authorities into provincial government

-devolving local financial and administrative power into provincial and district government

  Development-related power should be

strengthened at local level

Categorical grants should be transformed into block grants <Before> Each department examines each detailed project, endorses it and allows

local government to implement it (Figure 8, left)

<After> A responsible, integrated department examines projects at group level, and gives discretion power to local government. Hence, local government can undertake its resource use planning and implement this on its own (Figure 8, right).

<After> A responsible, integrated department examines projects at group level, and gives discretion power to local government. Hence, local government can undertake its resource use planning and implement this on its own (Figure 8, right).

2 8 30 20 8 5 30 14

Dept A Dept B Dept EDept DDept C

district

117

district

Dept A

Figure 10 Comparison of before and after grant system

<Before>

• Categorical Grant-Based System • Block Grant-Based System

<After>

Unit: Billion

Policy 4: relocating departmental bodies to non-capital region

Nine departmental bodies out of 16 are to be relocated to a region. Around 10,000 civil servants are to be relocated. Therefore, the capital city, Seoul, and Sejong City, a newly created administrative complex city, are to be twin ‘polar’ regions , with a view to lessening regional disparities.

Sejong City

134km

Figure 11 Location of the new administrative complex city

Twin polar regions strategy

Policy 5: developing regions strategically by making the most of a region's characteristics

Diverse mega projects (e.g. high-tech health care complex, international science business belt projects) are to be undertaken at regional level . Also, new growth-driving industry are to be created by associating each region with its neighboring region in terms of resource use and linkage effect .

Policy 5: Developing regions strategically by making the most of region's characteristics

Diverse mega projects (ex: high-tech health care complex, international science business belt projects) to be made at regional level

  New growth-driving industry to be created

by associating each region with its neighboring region in terms of resource use and linkage effect

Policy 6: making the most of growth potential

The Principle of Relative Advantage Strategy is to be operated. Also, there is to be a strategy for maximizing the whole growth potential of the nation

III. The Government’s Regional III. The Government’s Regional Development Model Development Model III. The Government’s Regional III. The Government’s Regional Development Model Development Model

East Sea Energy Tourism BeitBeit

Military Borderline

Capital City RegionCapital City RegionKangeon RegionKangeon Region

Daekyung Daekyung RegionRegionDaekyung Daekyung RegionRegion

Chungcheong Chungcheong RegionRegion

East Soutn RegionEast Soutn RegionHonam RegionHonam Region

South Sea BeitSouth Sea Beit

Jeiu RegionJeiu Region

West Sea New lndustry West Sea New lndustry BeitBeit

Figure 12 The regional development model