GlobalizationGlobalization and regional policies and regional policies in Koreain Korea

GlobalizationGlobalization and regional policies and regional policies in Koreain Korea

Dr. Sangjun LeeKorea Research Institute for Human Settlements

The 2nd Goldkronach Forum on the Relevance of Globalization to Region and Local Development in Oberfranken

November 20-21 2008

ContentsContents

ⅠⅠ. . Issues and Concerns in RegionalIssues and Concerns in Regional Development in KoreaDevelopment in KoreaⅠⅠ. . Issues and Concerns in RegionalIssues and Concerns in Regional Development in KoreaDevelopment in Korea

ⅡⅡ. . Territorial Plan and Regional policies Territorial Plan and Regional policies in Koreain KoreaⅡⅡ. . Territorial Plan and Regional policies Territorial Plan and Regional policies in Koreain Korea

ⅢⅢ. . Globalization and international Globalization and international cooperation in regional development cooperation in regional development ⅢⅢ. . Globalization and international Globalization and international cooperation in regional development cooperation in regional development

ⅣⅣ. . Some implications Some implications ⅣⅣ. . Some implications Some implications

I . I . Issues and Concerns in Regional Issues and Concerns in Regional Development in Korea Development in Korea

Territory: 99,678 sq km (2006)Territory: 99,678 sq km (2006) Territory: 99,678 sq km (2006)Territory: 99,678 sq km (2006)

Population:48,498,000(2006) Population:48,498,000(2006)       Population:48,498,000(2006) Population:48,498,000(2006)      

per Capita GNI: US$20,045 (2007)per Capita GNI: US$20,045 (2007)per Capita GNI: US$20,045 (2007)per Capita GNI: US$20,045 (2007)

Production: Production: Services, 57.2 %; Services, 57.2 %; Mining and manufacturing, 28.2 Mining and manufacturing, 28.2 %; %; Construction, 9.1 %; Construction, 9.1 %; Agriculture, forestry and fishing, Agriculture, forestry and fishing, 3.2 %; 3.2 %; Electricity, gas and water supply, Electricity, gas and water supply, 2.3 %(2006)2.3 %(2006)

Production: Production: Services, 57.2 %; Services, 57.2 %; Mining and manufacturing, 28.2 Mining and manufacturing, 28.2 %; %; Construction, 9.1 %; Construction, 9.1 %; Agriculture, forestry and fishing, Agriculture, forestry and fishing, 3.2 %; 3.2 %; Electricity, gas and water supply, Electricity, gas and water supply, 2.3 %(2006)2.3 %(2006)

Korea in BriefKorea in BriefKorea in BriefKorea in Brief

22

Korea is strong in 13 core industries Korea is strong in 13 core industries

which take 80% of exports.which take 80% of exports.

– AutomotiveAutomotive•Automobile(No. 5)Automobile(No. 5)•AutopartsAutoparts

– Textile/Chemicals/PlasticsTextile/Chemicals/Plastics•PetrochemicalsPetrochemicals•PlasticsPlastics•TextileTextile•TireTire

– IT/ ElectronicsIT/ Electronics•Wireless Communication EquipmentsWireless Communication Equipments•Computer/ Computer EquipmentsComputer/ Computer Equipments•Semiconductors(the best)Semiconductors(the best)•Household Electronic AppliancesHousehold Electronic Appliances

– Machinery & Heavy IndustriesMachinery & Heavy Industries•MachineryMachinery•Steel(the best)Steel(the best)•Shipbuilding(the best)Shipbuilding(the best)

33

44

Population GrowthPopulation Growth

■■    Korea's population 48.5 million in 2006; 54.5 per cent Korea's population 48.5 million in 2006; 54.5 per cent

larger than 1970larger than 1970

■■    Korea's population 48.5 million in 2006; 54.5 per cent Korea's population 48.5 million in 2006; 54.5 per cent

larger than 1970larger than 1970

1970 1975 1980 1985 1990 1995 2000 2006

population (000) 31,435 34,679 37,407 40,420 43,390 44,554 45,985 48,498

average rate of population growth

2.06 1.57 1.56 1.43 0.53 0.63 0.5

Source:  National Statistical Office, Each year, Population and Housing Census Source:  National Statistical Office, Each year, Population and Housing Census

<The Population Growth: 1970 to 2006> <The Population Growth: 1970 to 2006> 

55

Urbanization and SMA Urbanization and SMA (Seoul Metropolitan Area)(Seoul Metropolitan Area)

1960 1970 1980 1990 1995 2000 2005

Total 24,989

(100.0)

30,852

(100.0)

37,407

(100.0)

43,411

(100.0)

44,609

(100.0)

46,136

(100.0)

47,279

(100.0)

Urban area*) 6,997

(28.0)

12,685

(41.1)

21,401

(57.2)

32,308

(74.4)

35,036

(78.5)

36,755

(79.7)

38,515

(81.5)

Seoul 2,445

(9.7)

5,536

(17.9)

8,364

(22.4)

10,627

(24.4)

10,231

(22.9)

9,891

(21.4)

9,820

(20.8)

SMA 5,198

(20.8)

8,731

(28.3)

13,279

(35.5)

18,583

(42.8)

20,189

(45.3)

21,346

(46.3)

22,767

(48.2)

<The Changes in Residential Population by Region> <The Changes in Residential Population by Region>           (Unit: 000, %)   (Unit: 000, %)

Source:  E. Mills and B. Song (1979). p. 8 and National Statistical Office, every 5 year Population  and Source:  E. Mills and B. Song (1979). p. 8 and National Statistical Office, every 5 year Population  and Housing Census Housing Census

Note: *) Urban area are the places where more than 50,000 inhabitants live. Note: *) Urban area are the places where more than 50,000 inhabitants live.

* The total area of Korea is 99,678* The total area of Korea is 99,678 ㎢㎢ , of which about 6.5%(606, of which about 6.5%(606 ㎢㎢ ) is Seoul and) is Seoul and about 11.8% (11,699about 11.8% (11,699 ㎢㎢ ) is SMA. ) is SMA.

Provincial administrationProvincial administration Provincial administrationProvincial administration

66

Seven Economic RegionsSeven Economic Regions

NN

0 10 30 50 100(km)0 10 30 50 100(km)

Gangwon- DoGyeonggi- Do

IncheonSeoul

Daejeon

Chungcheongnam- Do(Chungnam)

Chungcheongbuk- Do(Chungbuk)

Jeollabuk- Do(Jeonbuk)

Jeollanam- Do(Jeonnam)

Gwangju Busan

Jeju- do

Gyeongsangnam- Do(Gyeongnam)

Ulsan

Daegu

Gyeongsangbuk- Do(Gyeongbuk)

Gang-WonGang-Won

Dong-NamDong-Nam

Chung-CheongChung-Cheong

Ho-NamHo-Nam

Dae-GyungDae-Gyung

Seoul-MASeoul-MA

Je-JuJe-Ju

Nine Administrative Nine Administrative RegionsRegions

77

Regional Disparities inRegional Disparities in KoreaKorea

Source:  National Statistical OfficeSource:  National Statistical Office

Economic 

Regions

Population

(2006, mill.)

Land

( ㎢ )

GRDP

(%)

Seoul

Metropolitan

Area

23.6

(49%)

11,730

(12%)48

Chung-Cheong

(middle)

4.9

(10%)

16,572

(17%)11

Ho-nam

(southwest)

5.1

(10%)

20,629

(21%)10

Dae-Gyung

(middle-east)

5.2

(11%)

19,910

(20%)10

Dong-Nam

(southeast)

7.8

(16%)

12,342

(12%)17

Gang_Won

(east)

1.5

(3%)

16,613

(17%)3

Jeju

(Island)

0.5

(1%)

1,848

(2%)1

Total 48.5 99,644 888 billion USD

■ ■ Migration has also influenced housing demand.Migration has also influenced housing demand. - People have been migrating from backward rural villages to advanced- People have been migrating from backward rural villages to advanced

urban areas since 1960 shortly after when the first economic urban areas since 1960 shortly after when the first economic

development plan was initiated by late president Park Chung-Heedevelopment plan was initiated by late president Park Chung-Hee

■ ■ the main reason of migration the main reason of migration - To find jobs - To find jobs

■ ■ the reasons of migration in SMAthe reasons of migration in SMA - New manufacturing activities was located in the major metropolitan- New manufacturing activities was located in the major metropolitan

areas, especially in Seoul Metropolitan Area which includes Seoul, areas, especially in Seoul Metropolitan Area which includes Seoul,

Inchon, and Gyeonggi ProvinceInchon, and Gyeonggi Province

■ ■ The result of concentration in SMA, 11.8 per cent of KoreaThe result of concentration in SMA, 11.8 per cent of Korea ’’s s

total land area just under 100,000 sq kmtotal land area just under 100,000 sq km22

- In 1960, 20.8 per cent of the nation's population lived in the SMA, - In 1960, 20.8 per cent of the nation's population lived in the SMA,

but by 2006 this figure had increased to 49 per cent. but by 2006 this figure had increased to 49 per cent.   

■ ■ Migration has also influenced housing demand.Migration has also influenced housing demand. - People have been migrating from backward rural villages to advanced- People have been migrating from backward rural villages to advanced

urban areas since 1960 shortly after when the first economic urban areas since 1960 shortly after when the first economic

development plan was initiated by late president Park Chung-Heedevelopment plan was initiated by late president Park Chung-Hee

■ ■ the main reason of migration the main reason of migration - To find jobs - To find jobs

■ ■ the reasons of migration in SMAthe reasons of migration in SMA - New manufacturing activities was located in the major metropolitan- New manufacturing activities was located in the major metropolitan

areas, especially in Seoul Metropolitan Area which includes Seoul, areas, especially in Seoul Metropolitan Area which includes Seoul,

Inchon, and Gyeonggi ProvinceInchon, and Gyeonggi Province

■ ■ The result of concentration in SMA, 11.8 per cent of KoreaThe result of concentration in SMA, 11.8 per cent of Korea ’’s s

total land area just under 100,000 sq kmtotal land area just under 100,000 sq km22

- In 1960, 20.8 per cent of the nation's population lived in the SMA, - In 1960, 20.8 per cent of the nation's population lived in the SMA,

but by 2006 this figure had increased to 49 per cent. but by 2006 this figure had increased to 49 per cent.   

Urbanization and SMA Urbanization and SMA (Seoul Metropolitan Area)(Seoul Metropolitan Area)

88

99

New Town Development in Seoul Metropolitan AreaNew Town Development in Seoul Metropolitan Area

Bucheon Bucheon citycity

KNHCKNHCKLCKLC

Bucheon Bucheon citycity

KNHCKNHCKLCKLC

‘‘90. 2 90. 2 ～～‘‘96. 196. 1

‘‘90. 2 90. 2 ～～‘‘96. 196. 1

225225225225

KNHCKNHCKNHCKNHCKLCKLCKLCKLCKLCKLCKLCKLCKLCKLCKLCKLC----DeveloperDeveloperDeveloperDeveloper

‘‘89. 889. 8 ～～‘‘95. 195. 1

‘‘89. 889. 8 ～～‘‘95. 195. 1

‘‘89. 8 89. 8 ～～‘‘95.1295.12

‘‘89. 8 89. 8 ～～‘‘95.1295.12

‘‘90. 3 90. 3 ～～

‘‘95.1295.12

‘‘90. 3 90. 3 ～～

‘‘95.1295.12

‘‘89. 8 89. 8 ～～‘‘96.1296.12

‘‘89. 8 89. 8 ～～‘‘96.1296.12----

Construction Construction periodperiod

Construction Construction periodperiod

205205205205204204204204169169169169184184184184----Floor ratioFloor ratioFloor ratioFloor ratio

41.441.4(40.5)(40.5)41.441.4

(40.5)(40.5)42.042.0

(41.4)(41.4)42.042.0

(41.4)(41.4)42.042.0

(41.4)(41.4)42.042.0

(41.4)(41.4)69.069.0

(63.1)(63.1)69.069.0

(63.1)(63.1)97.697.6

(94.6)(94.6)97.697.6

(94.6)(94.6)292292

(281)(281)292292

(281)(281)Planned housing Planned housing units(1,000units)units(1,000units)Planned housing Planned housing units(1,000units)units(1,000units)

301301301301396396396396327327327327174174174174197197197197231231231231Population Population density / hadensity / haPopulation Population density / hadensity / ha

16.616.616.616.616.816.816.816.816.816.816.816.827.627.627.627.639393939116.8116.8116.8116.8Planned Planned

populationpopulation(10,000 persons)(10,000 persons)

Planned Planned populationpopulation

(10,000 persons)(10,000 persons)

545.2545.2545.2545.2420.3420.3420.3420.3510.6510.6510.6510.61,573.61,573.61,573.61,573.61,963.91,963.91,963.91,963.95,013.65,013.65,013.65,013.6Area(ha)Area(ha)Area(ha)Area(ha)

JungdongJungdongJungdongJungdongSanbonSanbonSanbonSanbonPyongchoPyongchonn

PyongchoPyongchonnIlsanIlsanIlsanIlsanBundangBundangBundangBundangTotalTotalTotalTotal

<5 New Towns in SMA><5 New Towns in SMA>

1010

■ ■ BundangBundang

<Before><Before> <After><After>

<Master plan><Master plan>

A Case of New Town Development: BundangA Case of New Town Development: Bundang

Issues and Concerns in Issues and Concerns in Regional DevelopmentRegional DevelopmentIssues and Concerns in Issues and Concerns in Regional DevelopmentRegional Development

Spatial disparities resulting from overconcentrationSpatial disparities resulting from overconcentration

of the Capital region(Seoulof the Capital region(Seoul Metropolitan Area)Metropolitan Area)

Spatial disparities resulting from overconcentrationSpatial disparities resulting from overconcentration

of the Capital region(Seoulof the Capital region(Seoul Metropolitan Area)Metropolitan Area)

Major issuesMajor issues

Limited national competitiveness due to Limited national competitiveness due to

low efficiency(high logistic and labor cost)low efficiency(high logistic and labor cost)

Limited national competitiveness due to Limited national competitiveness due to

low efficiency(high logistic and labor cost)low efficiency(high logistic and labor cost)

Degradation of environment and quality of lifeDegradation of environment and quality of life Degradation of environment and quality of lifeDegradation of environment and quality of life

Social conflicts surrounding territorial Social conflicts surrounding territorial

policies(especially between SMA and other regions)policies(especially between SMA and other regions)

Social conflicts surrounding territorial Social conflicts surrounding territorial

policies(especially between SMA and other regions)policies(especially between SMA and other regions)

1212

Competition between regions for attracting new Competition between regions for attracting new

investments, especially FDIinvestments, especially FDI

Competition between regions for attracting new Competition between regions for attracting new

investments, especially FDIinvestments, especially FDI

Winners=Some regions where have nice Winners=Some regions where have nice

infrastructure and human capacity(Seoul infrastructure and human capacity(Seoul

Metropolitan Area;SMA) with deregulationMetropolitan Area;SMA) with deregulation

Winners=Some regions where have nice Winners=Some regions where have nice

infrastructure and human capacity(Seoul infrastructure and human capacity(Seoul

Metropolitan Area;SMA) with deregulationMetropolitan Area;SMA) with deregulation

Widening the gab between winners and losers in Widening the gab between winners and losers in

regional developmentregional development

Widening the gab between winners and losers in Widening the gab between winners and losers in

regional developmentregional development

Losers=Regions, specialized with agriculture and Losers=Regions, specialized with agriculture and

have bad accessibilityhave bad accessibility

Losers=Regions, specialized with agriculture and Losers=Regions, specialized with agriculture and

have bad accessibilityhave bad accessibility

Consequences of Globalization on Regional Consequences of Globalization on Regional Development in KoreaDevelopment in Korea

1313

Concentration of the Seoul Metropolitan Concentration of the Seoul Metropolitan

AreaArea11.8%11.8%AreaArea

47.6%47.6%PopulationPopulation

56.4%56.4%Mfg. firmsMfg. firms

65.0%65.0%Major universitiesMajor universities

70.0%70.0%R&D institutionsR&D institutions

85.0%85.0%Government agenciesGovernment agencies

91.0%91.0%100 Largest corporations100 Largest corporations

1414

Need for a new paradigm of territorial managementNeed for a new paradigm of territorial management

in the era of globalizationin the era of globalization

Need for a new paradigm of territorial managementNeed for a new paradigm of territorial management

in the era of globalizationin the era of globalization

Major concernsMajor concerns

Decentralization policies opens new windows ofDecentralization policies opens new windows of

opportunities for local regionsopportunities for local regions

Decentralization policies opens new windows ofDecentralization policies opens new windows of

opportunities for local regionsopportunities for local regions

Increasing concerns for sustainable environment Increasing concerns for sustainable environment

and higher quality of lifeand higher quality of life

Increasing concerns for sustainable environment Increasing concerns for sustainable environment

and higher quality of lifeand higher quality of life

Importance of social cohesion and conflictImportance of social cohesion and conflict

resolution regarding territorial issuesresolution regarding territorial issues

Importance of social cohesion and conflictImportance of social cohesion and conflict

resolution regarding territorial issuesresolution regarding territorial issues

1515

II . II . Territorial plan and Regional Territorial plan and Regional Policies in Korea Policies in Korea

History of the Territorial plan in KoreaHistory of the Territorial plan in Korea

Construction of growth centers Construction of growth centers

The 1The 1stst plan plan (1972-1981)(1972-1981)

The 1The 1stst plan plan (1972-1981)(1972-1981)

Restriction of the CapitalregionRestriction of the Capitalregion

The 2The 2ndnd plan plan (1982-1991)(1982-1991)

The 2The 2ndnd plan plan (1982-1991)(1982-1991)

Promotion of local regionsPromotion of local regions The 3The 3rdrd plan plan (1992-1999)(1992-1999)

The 3The 3rdrd plan plan (1992-1999)(1992-1999)

Main EmphasisMain EmphasisMain EmphasisMain Emphasis

Integration of national territoryIntegration of national territory The 4The 4thth plan plan (2000-2020)(2000-2020)

The 4The 4thth plan plan (2000-2020)(2000-2020)

1717

Regional policies became more important than everRegional policies became more important than ever

for:for: Balanced national development andBalanced national development and National competitivenessNational competitiveness

Nature of the national territorial planNature of the national territorial plan According to According to framework act on national territoryframework act on national territory: : It is aIt is a comprehensive plan indicating a long-term development direction of national territory

Regional policies became more important than everRegional policies became more important than ever

for:for: Balanced national development andBalanced national development and National competitivenessNational competitiveness

Nature of the national territorial planNature of the national territorial plan According to According to framework act on national territoryframework act on national territory: : It is aIt is a comprehensive plan indicating a long-term development direction of national territory

Background of theBackground of the 4 4thth plan plan

Formulate a new national territorial planFormulate a new national territorial plantoward 2020toward 2020

Formulate a new national territorial planFormulate a new national territorial plantoward 2020toward 2020

1818

Characteristics of the new planCharacteristics of the new plan

Future and Future and OpennessOpenness

Future and Future and OpennessOpenness

Considering internal and international Considering internal and international

changes in circumstances includingchanges in circumstances including

globalizationglobalization

Considering internal and international Considering internal and international

changes in circumstances includingchanges in circumstances including

globalizationglobalization

Efficient Use of Efficient Use of Existing FacilitiesExisting FacilitiesEfficient Use of Efficient Use of

Existing FacilitiesExisting FacilitiesBalancing construction and Balancing construction and maintenance of infrastructuremaintenance of infrastructureBalancing construction and Balancing construction and maintenance of infrastructuremaintenance of infrastructure

Sustainability and Sustainability and HumanismHumanism

Sustainability and Sustainability and HumanismHumanism

Emphasizing environment Emphasizing environment

and people’s welfareand people’s welfare

Emphasizing environment Emphasizing environment

and people’s welfareand people’s welfare

1919

Promoting regional competitivenessPromoting regional competitiveness Promoting regional competitivenessPromoting regional competitiveness

Managing national territory toward Northeast AsiaManaging national territory toward Northeast Asia Managing national territory toward Northeast AsiaManaging national territory toward Northeast Asia

Building networks of infrastructureBuilding networks of infrastructure Building networks of infrastructureBuilding networks of infrastructure

Creating livable city and housingCreating livable city and housing Creating livable city and housingCreating livable city and housing

Sustaining environment and resourcesSustaining environment and resources Sustaining environment and resourcesSustaining environment and resources

Major strategies of regional developmentMajor strategies of regional development

Forming new (Forming new (+Hexagonal) territorial structure+Hexagonal) territorial structure Forming new (Forming new (+Hexagonal) territorial structure+Hexagonal) territorial structure

2020

Strategy 1Strategy 1 : : Forming new Forming new ((+Hexagonal) +Hexagonal)

territorial structureterritorial structureStrategy 1Strategy 1 : : Forming new Forming new ((+Hexagonal) +Hexagonal)

territorial structureterritorial structure

2121

Seoul

Busan

Shanghai

Tokyo

Osaka

Vladivostok

Hong Kong

Beijing

Taipei

Pan-East SeaRegion

China &Southeast Asia

Mokpo

Central AsiaChina

Europe

RussiaContinent

Pan-Yellow SeaRegion

Japan

Pan-Pacific Ocean

Geoeconomic potential of Geoeconomic potential of Korean peninsulaKorean peninsula

Geoeconomic potential of Geoeconomic potential of Korean peninsulaKorean peninsula

Pyongyang

2222

The emergence of The emergence of

mega-regions, mega-regions,

especially along the especially along the

east cost of Chinaeast cost of China

The emergence of The emergence of

mega-regions, mega-regions,

especially along the especially along the

east cost of Chinaeast cost of China

The formation of The formation of

transborder regions transborder regions

across the seas across the seas

together with the rise together with the rise

of maritime Asiaof maritime Asia

The formation of The formation of

transborder regions transborder regions

across the seas across the seas

together with the rise together with the rise

of maritime Asiaof maritime Asia

Consequences of Globalization and economic Consequences of Globalization and economic regionalization of Northeast Asia regionalization of Northeast Asia

2323

Basic directionsBasic directions

Promoting “Promoting “ + Hexagonal” territorial structure with + Hexagonal” territorial structure with

threethree coastal axes and six economic regionscoastal axes and six economic regions

Promoting “Promoting “ + Hexagonal” territorial structure with + Hexagonal” territorial structure with

threethree coastal axes and six economic regionscoastal axes and six economic regions

Building open territorial structure to serve asBuilding open territorial structure to serve as

“ “strategic gateway” in Northeast Asia strategic gateway” in Northeast Asia

Organizing networked territorial structure forOrganizing networked territorial structure for balanced regional developmentbalanced regional development

Building open territorial structure to serve asBuilding open territorial structure to serve as

“ “strategic gateway” in Northeast Asia strategic gateway” in Northeast Asia

Organizing networked territorial structure forOrganizing networked territorial structure for balanced regional developmentbalanced regional development

2424

Pacific OceanPacific Ocean

East SeaEast Sea

Yellow SeaYellow Sea

Northeast AsiaNortheast Asia

USA, Japan

China, SE Asia

RussiaEurasia

““π + π + Hexagonal” territorial structureHexagonal” territorial structurein the era of globalization in the era of globalization

2525

Strategy 2 : Strategy 2 : Promoting regional Promoting regional competitivenesscompetitiveness

Strategy 2 : Strategy 2 : Promoting regional Promoting regional competitivenesscompetitiveness

2626

Self-sustained development of regionsSelf-sustained development of regions

Establishing Establishing regional innovation systemregional innovation system and and

industrial clusters in provincial regionsindustrial clusters in provincial regions

Establishing Establishing regional innovation systemregional innovation system and and

industrial clusters in provincial regionsindustrial clusters in provincial regions

Promoting regional strategic industries andPromoting regional strategic industries and

restructuring of industrial complexesrestructuring of industrial complexes

Promoting regional strategic industries andPromoting regional strategic industries and

restructuring of industrial complexesrestructuring of industrial complexes

Relocating central government’s agencies awayRelocating central government’s agencies away

from the Capital regionfrom the Capital region

Relocating central government’s agencies awayRelocating central government’s agencies away

from the Capital regionfrom the Capital region

Developing Developing innovate citiesinnovate cities to accommodate to accommodate

the public agencies from the Capital regionthe public agencies from the Capital region

Developing Developing innovate citiesinnovate cities to accommodate to accommodate

the public agencies from the Capital regionthe public agencies from the Capital region

2727

Specialized development of regionsSpecialized development of regions

Developing specialized clusters and institutionalDeveloping specialized clusters and institutional

support to revitalize less developed regionssupport to revitalize less developed regions

Developing specialized clusters and institutionalDeveloping specialized clusters and institutional

support to revitalize less developed regionssupport to revitalize less developed regions

Systematic management of the Capital region toSystematic management of the Capital region to

enhance international competitivenessenhance international competitiveness

Systematic management of the Capital region toSystematic management of the Capital region to

enhance international competitivenessenhance international competitiveness

Promoting major provincial cities and small and Promoting major provincial cities and small and

medium cities with higher-order functionsmedium cities with higher-order functions

Promoting major provincial cities and small and Promoting major provincial cities and small and

medium cities with higher-order functionsmedium cities with higher-order functions

Developing infrastructure for tourism and culturalDeveloping infrastructure for tourism and cultural

industriesindustries

Developing infrastructure for tourism and culturalDeveloping infrastructure for tourism and cultural

industriesindustries

2828

5.5.<Concept of Innovative City ><Concept of Innovative City >

GovernmentGovernmentGovernmentGovernment

UniversityUniversityUniversityUniversity

IndustryIndustryIndustryIndustry

ResearchResearchResearchResearch

High-speed railwayHigh-speed railway

AirportAirport

PortPort

Inn. CityInn. City

High-wayHigh-way

Adjacent CityAdjacent City

Adjacent CityAdjacent City

New growth areaNew growth area

■ ■ Innovative city Innovative city - Relocating public organization - Relocating public organization

- Industry, Research, Administration cluster - Industry, Research, Administration cluster

■ ■ Innovative city Innovative city - Relocating public organization - Relocating public organization

- Industry, Research, Administration cluster - Industry, Research, Administration cluster

Gangwon(13)Gangwon(13)Gangwon(13)Gangwon(13) Gyongbuk(13)Gyongbuk(13)Gyongbuk(13)Gyongbuk(13)

Daegu(12)Daegu(12)Daegu(12)Daegu(12)

Ulsan(11)Ulsan(11)Ulsan(11)Ulsan(11)

Busan(12)Busan(12)Busan(12)Busan(12)

Gyongnam(12)Gyongnam(12)Gyongnam(12)Gyongnam(12)Jeju(9)Jeju(9)Jeju(9)Jeju(9)

Gwangju(18)Gwangju(18)Gwangju(18)Gwangju(18)

Jeonbuk(13)Jeonbuk(13)Jeonbuk(13)Jeonbuk(13)

Chungbuk(12)Chungbuk(12)Chungbuk(12)Chungbuk(12)

2929

IIII II . . Globalization and international Globalization and international cooperation in regional developmentcooperation in regional development

Strategies of central government: Strategies of central government: 1. Managing national territory toward 1. Managing national territory toward

Northeast AsiaNortheast Asia

Strategies of central government: Strategies of central government: 1. Managing national territory toward 1. Managing national territory toward

Northeast AsiaNortheast Asia

3131

Cooperation with Northeast AsiaCooperation with Northeast Asia

Establishing Establishing Northeast Asia Development CommunityNortheast Asia Development Community

for infrastructure development and connectionfor infrastructure development and connection

Establishing Establishing Northeast Asia Development CommunityNortheast Asia Development Community

for infrastructure development and connectionfor infrastructure development and connection

Promoting trade and exchange among regionsPromoting trade and exchange among regions

of Northeast Asian countriesof Northeast Asian countries

Promoting trade and exchange among regionsPromoting trade and exchange among regions

of Northeast Asian countriesof Northeast Asian countries

Developing financial, business and logistics hubsDeveloping financial, business and logistics hubs

for economic exchangefor economic exchange

Developing financial, business and logistics hubsDeveloping financial, business and logistics hubs

for economic exchangefor economic exchange

3232

Building Global Network by RailBuilding Global Network by Rail

BeijingBeijing

ShenyangShenyang

SeoulSeoul

PusanPusan

FukuokaFukuokaOsakaOsaka

TokyoTokyo

ShanghaiShanghai

Hong KongHong Kong

TaipeiTaipei

KaohsiungKaohsiung

GwangyangGwangyang

DalianDalianTianjinTianjin

QingdaoQingdao

LianyungangLianyungang

HarbinHarbin

VladivostokVladivostok

KhabarovsKhabarovskkTSRTSRTMRTMRTMGRTMGR

TCRTCR

Major PortMajor Port

Major AirportMajor Airport

Express RailwayExpress RailwayTrunk RailwayTrunk Railway

CHINACHINA

MONGOLIAMONGOLIA

KOREAKOREAJAPANJAPAN

RUSSIARUSSIA

3333

Building Global Network by HighwayBuilding Global Network by Highway

3434

Asia Highway NetworkAsia Highway Network

Building EnergyBuilding Energy Network by Natural GasNetwork by Natural Gas

3535

South Coastal South Coastal AxisAxis

South Coastal South Coastal AxisAxis

International logistics and industrial International logistics and industrial restructuringrestructuringInternational logistics and industrial International logistics and industrial restructuringrestructuring

East Coastal East Coastal AxisAxis

East Coastal East Coastal AxisAxis North-South exchanges and tourismNorth-South exchanges and tourismNorth-South exchanges and tourismNorth-South exchanges and tourism

West CoastalWest CoastalAxisAxis

West CoastalWest CoastalAxisAxis

International logistics and business, International logistics and business, new industrial clustersnew industrial clustersInternational logistics and business, International logistics and business, new industrial clustersnew industrial clusters

National Strategies: Functions of coastal axes National Strategies: Functions of coastal axes for International cooperation for International cooperation

3636

National Strategies: National Strategies: Institutionalization of Institutionalization of Cross-Border Cooperation: across the borderCross-Border Cooperation: across the border

Establish cross-border cooperation agency and Establish cross-border cooperation agency and working groups working groups

Lay out and discuss cooperation programsLay out and discuss cooperation programs

Establish operation funds by membership fee, Establish operation funds by membership fee, central government support, etc. central government support, etc.

Search for financing methods for cooperation Search for financing methods for cooperation projects (ODA, project financing, the third projects (ODA, project financing, the third sector)sector)

3737

Strategies of central government: Strategies of central government: 2. Developing Free Economic Zones for 2. Developing Free Economic Zones for

introducing FDI introducing FDI

Strategies of central government: Strategies of central government: 2. Developing Free Economic Zones for 2. Developing Free Economic Zones for

introducing FDI introducing FDI

3838

Background of building Background of building Free Economic Zones Free Economic Zones in Koreain Korea

The presence of major economic blocs (such as the EU, The presence of major economic blocs (such as the EU,

ASEAN, NAFTA, FTA), the extension multinational enterprises, ASEAN, NAFTA, FTA), the extension multinational enterprises,

and severe competition among regions/citiesand severe competition among regions/cities

The presence of major economic blocs (such as the EU, The presence of major economic blocs (such as the EU,

ASEAN, NAFTA, FTA), the extension multinational enterprises, ASEAN, NAFTA, FTA), the extension multinational enterprises,

and severe competition among regions/citiesand severe competition among regions/cities

Because of the globalization of the world’s economy, there is Because of the globalization of the world’s economy, there is

an urgent an urgent need to build a business hubneed to build a business hub to host international to host international

industriesindustries

Because of the globalization of the world’s economy, there is Because of the globalization of the world’s economy, there is

an urgent an urgent need to build a business hubneed to build a business hub to host international to host international

industriesindustries

There are currently three such zones situated in Incheon, Busan/Jinhae There are currently three such zones situated in Incheon, Busan/Jinhae and Gwangyang and Gwangyang

3939

to establish new logistics hub of to establish new logistics hub of

Northeast Asia Northeast Asia

to establish new logistics hub of to establish new logistics hub of

Northeast Asia Northeast Asia

to foster an efficient business to foster an efficient business

environment with attractive environment with attractive

incentives incentives       

to foster an efficient business to foster an efficient business

environment with attractive environment with attractive

incentives incentives       

Mission of Free Economic ZonesMission of Free Economic Zones

to facilitate easier interaction of to facilitate easier interaction of

the neighboring industries the neighboring industries

to facilitate easier interaction of to facilitate easier interaction of

the neighboring industries the neighboring industries

4040

Incheon Incheon FEZFEZ

Busan/JinhaeBusan/Jinhae FEZFEZ

GwangyangGwangyang FEZ FEZ

Songdo International City: a Mecca for international business and high-tech Songdo International City: a Mecca for international business and high-tech industry industry Yeongjong Island: a hub of international logistics, tourism and leisure Yeongjong Island: a hub of international logistics, tourism and leisure

Cheongna: global entertainment and theme parkCheongna: global entertainment and theme park  

Songdo International City: a Mecca for international business and high-tech Songdo International City: a Mecca for international business and high-tech industry industry Yeongjong Island: a hub of international logistics, tourism and leisure Yeongjong Island: a hub of international logistics, tourism and leisure

Cheongna: global entertainment and theme parkCheongna: global entertainment and theme park  

The Inchoen Free Economic ZoneThe Inchoen Free Economic Zone

4141

Strategies of local government:Strategies of local government:Introducing FDI through local initiativeIntroducing FDI through local initiative-- Gyungsangbuk-do and cooperation with Gyungsangbuk-do and cooperation with

other local governments other local governments

Strategies of local government:Strategies of local government:Introducing FDI through local initiativeIntroducing FDI through local initiative-- Gyungsangbuk-do and cooperation with Gyungsangbuk-do and cooperation with

other local governments other local governments

4242

Population: 2.7 mil.Population: 2.7 mil.Land: 19026.06 km2Land: 19026.06 km2Density: 3556.37 (People/kmDensity: 3556.37 (People/km22))

Population: 2.7 mil.Population: 2.7 mil.Land: 19026.06 km2Land: 19026.06 km2Density: 3556.37 (People/kmDensity: 3556.37 (People/km22))

Gyeongsangbuk-do Gyeongsangbuk-do

4343

4444

Regional StatusRegional Status

Source:  National Statistical OfficeSource:  National Statistical Office

Economic 

Regions

Population

(2006, mill.)

Land

( ㎢ )

GRDP

(%)

Seoul

Metropolitan

Region

23.6

(49%)

11,730

(12%)48

Chung-chung

(middle)

4.9

(10%)

16,572

(17%)11

Ho-nam

(southwest)

5.1

(10%)

20,629

(21%)10

Dae-Gyung

(middle-east)

5.2

(11%)

19,910

(20%)10

Dong-Nam

(southeast)

7.8

(16%)

12,342

(12%)17

Gangwon

(east)

1.5

(3%)

16,613

(17%)3

Jeju

(Island)

0.5

(1%)

1,848

(2%)1

Total 48.5 99,644 888 billion USD

Decreasing & aging population Decreasing & aging population Decreasing & aging population Decreasing & aging population

Lack of private investmentsLack of private investments Lack of private investmentsLack of private investments

Insufficient living infrastructureInsufficient living infrastructure Insufficient living infrastructureInsufficient living infrastructure

Regional Issues of Regional Issues of Gyeongsangbuk-doGyeongsangbuk-do

4545

Spatial StructureSpatial Structure

Building new Free Economic Zones based on Building new Free Economic Zones based on

R&DR&D

Building new Free Economic Zones based on Building new Free Economic Zones based on

R&DR&D

Building new international AirportBuilding new international Airport Building new international AirportBuilding new international Airport

Fostering Eco-tourism in inland regionsFostering Eco-tourism in inland regions Fostering Eco-tourism in inland regionsFostering Eco-tourism in inland regions

Strengthening inter-local and international Strengthening inter-local and international

cooperation based on mutual benefitscooperation based on mutual benefits

Strengthening inter-local and international Strengthening inter-local and international

cooperation based on mutual benefitscooperation based on mutual benefits

Strategies of Strategies of Gyeongsangbuk-doGyeongsangbuk-do

4646

City-Province Governor Committee on East Coastal Circle

Gangwon, Gyungsangbuk-do, UlsanArea

- Establishing joint development segmentation of 'Peace sea vision' by joint-study of 3 cities and province's `development

research institution, - Built development and planning committee for Eastern

coastal area - Efficient usage of 'Eastern Coastal area tourism

export council' - Compose marine  business council on Eastern coastal area

Content

Increase the relationship and set cooperation system for joint development on Eastern Coastal area

Aim

2004Launch

14

New Initiatives of Local Governments: Building New Initiatives of Local Governments: Building Cooperation Network with neighboring local Cooperation Network with neighboring local governmentsgovernments

4747

IIII II . . Some Implications Some Implications

Enhancing local Images Enhancing local Images Enhancing local Images Enhancing local Images

Improving business environmentImproving business environment Improving business environmentImproving business environment

Building human capacities in local levelBuilding human capacities in local level Building human capacities in local levelBuilding human capacities in local level

Improving living environmentImproving living environment Improving living environmentImproving living environment

General Issues of Regional Development in the General Issues of Regional Development in the era of globalizationera of globalization

4949

Enhancing Competitiveness of regions Enhancing Competitiveness of regions

through central and local governmentsthrough central and local governments

Enhancing Competitiveness of regions Enhancing Competitiveness of regions

through central and local governmentsthrough central and local governments

- cooperation for oversee advertising - cooperation for oversee advertising - cooperation for oversee advertising - cooperation for oversee advertising

- administrative support through special acts- administrative support through special acts - administrative support through special acts- administrative support through special acts

- financial support for some selected regions- financial support for some selected regions - financial support for some selected regions- financial support for some selected regions

Some policy measures of Regional Development Some policy measures of Regional Development in the era of globalizationin the era of globalization

5050

Enhancing Competitiveness of regions through Enhancing Competitiveness of regions through

international cooperationinternational cooperation

Enhancing Competitiveness of regions through Enhancing Competitiveness of regions through

international cooperationinternational cooperation

- building “Cooperation Agreements” with regions in - building “Cooperation Agreements” with regions in

foreign countries foreign countries

- building “Cooperation Agreements” with regions in - building “Cooperation Agreements” with regions in

foreign countries foreign countries

- Actors of “Cooperation Agreements”: private - Actors of “Cooperation Agreements”: private

investments firms, banks, local governmentsinvestments firms, banks, local governments

- Actors of “Cooperation Agreements”: private - Actors of “Cooperation Agreements”: private

investments firms, banks, local governmentsinvestments firms, banks, local governments

- giving priority of financial support of central - giving priority of financial support of central

governments to regions where have “Cooperation governments to regions where have “Cooperation

Agreements” Agreements”

- giving priority of financial support of central - giving priority of financial support of central

governments to regions where have “Cooperation governments to regions where have “Cooperation

Agreements” Agreements”

Some policy measures of Regional Development Some policy measures of Regional Development in the era of globalizationin the era of globalization

5151

Thank youThank youThank youThank you