South Asia Region UKP March 20, 2012 Sri Lanka

Strategies and Issues on the National Territory and Urban Development in Korea2012

Dong-Ju Kim(djukim@krihs.re.kr)

Korea Research Institute for Human Settlements (KRIHS)

Overview

1. Overview1) Geography of Korea

- Area (South Korea): 100,214Km2 (Mountains: 65% of the entire land) - Population: 49 million (population density: 488 person/km2)3

1. Overview

4

1. OverviewIn 2012, Korea is11th exporter 12th importer

From recipient country

to donor country

5

1. Overview2) Economic Growth Trend of Korea (1960-2010)20,759 Per Capita (US$) GNI 16,291 11,432 G20Member

10,000

6 Ten-Year-Comprehensive National Territorial Plans 6 Five-Year-EconomicDevelopment PlansLiberation from Japanese Colonial Rule

7,355Financial Crisis OECD Member (1995)

5,000

1,000(1977) 871962

100(1964)1970 1980

671945 1953

1990

1998 2005

2010

Source: KDI 2005 Updated

6

1. Overview3) Changes in Socio-Economic Structure of Korea (1960-2010)1960 (A) Area()

2010 (B) 100,214 48,875 20,759 4,664 90.9 101.9

Ratio (B/A) 1.02 1.9 262.8 4220 2.5 1.3 3.9 1,3367

98,431 24,989 79

Population (thousand persons)

Per Capita Income (US$)Export (100 million $) Urbanization Ratio (%) Housing Supply Ratio (%) Road Length (thousand ) Industrial Estates ()Source: Korea National Statistical Office

0.335.9 79.5 27.2

105.51,336

0.0

Economic & National Territorial Development Strategies

1. Key Development Strategies (1960s-80s)1) Adopt strategic policies for economic and territorial development - Economic developmentInput-driven and export-led development strategy

- Territorial developmentprovide infrastructure for economic growth and rearrange spatial structure

2) Coordinate both economic policy and territorial policy- Establish the 5 year Economic Development Plan and the 10 year National Territorial Development Plan

Economic Development

Territorial Development9

2. Economic Development Strategy1) Input-driven & Export-led Development (1960s-1970s)Take-off from the Ashes (1960s) - overcome lack of resources and small domestic marketPoor Resources

Abundant Labor

Poor Industrial Base

?Input-driven & Export-led Development

High Level of Education

Weak Infrastructure

Motivated

Source: KDI 2005 Updated

10

2. Economic Development Strategy< Concept of Input-driven & Export-led Development Strategy >Foreign Capital Inducement (Economic Aids External Debt)

Economic Growth

SManufacturing Processing Capital Good Imports Raw Material Imports Foreign Technology Imports

SExport Promotion

Financial Support Tax Incentives

GovernmentExport Promotion by the President

Technology Development

Well-educated & Cheap Labor force Source: KDI 2005 Updated

11

2. Economic Development Strategy2) Promote strategic industries with economic growth1960s 1960 s Development Development Stage Stage Export Commodity Profile 1970s 1970 s 1980s 1980 s 1990s 1990 s

2000s

Factor-DrivenStage Factor-Driven Stage

Investment-Driven Stage Investment-Driven StageInnovation-DrivenStage

Light industryWig Textile

Heavy & Chemical industryAutomobile Semiconductor

Semiconductor, Mobile Phone, DTV, Display, Automobile, etc.79.8%

HCI Product

50%

14.1% 6.1%

Light Industry ProductAgricultural Product12

1960Source:KDI 2005 revised

1970

1980

1990

2000

2010

2. Economic Development Strategy3) Develop Industrial complexes and promote clusters< National Industrial Complexes >< Strategic industries by region >

For industrial & regional competitiveness, strategic industries are fostered by region (eg. Bio-medicine, IT, machinery renewable energy)< Industrial agglomeration to cluster >Creative Human Resource Admin. & Business Support

Funding (production)

Industry

ClusterR&D

University(R&D)

Trust

Networking13

3. Territorial Development Strategy1) Growth Pole Strategy (1960s-90s)Promote selected strategic regions with growth potentials

Expect spill-over from the growth poles to other regions

growth poles: metropolitan cities, large industrial estates

Provide infrastructures for the growth poles (highways, ports)< Spill-over/ trickling-down from core to periphery regions >

Periphery

Core

Periphery

1

2

314

3. Territorial Development Strategy2) Revitalization of Rural Areas (1960s-)Saemaul Undong (1972) (New Community Movement) promote a modern, comfortable,(1+2) and convenient rural community (1) (1+3) Agriculture + Primary Industry Agriculture + Strategies Processing Tourism (Agriculture) - Invest productive infrastructure (farming machinery, etc) - Increase incomes from agriculture (3) (2) - Improve living environments Tertiary Secondary (road, house, water, etc) (Processing) (Service) - Education and training (1+2+3) Agriculture + Processing + Tourism15

Fusion of Agro-based industries (2000)

3. Territorial Development Strategy3) Provision of Infrastructure with economic growth7X9 National Arterial Road (1998)To meet increasing transport demand and balanced development Kyungbu Expressway (1970) High Speed Rail (2004)

(1970s~)

Seoul Incheon

Daejeon

Daegu

Ulsan

Busan New Port (2000)

Inchon International Airport (2001)

Gwangju

Busan

In Use Under Const Under Planning Long Term Motorway

16

3. Territorial Development Strategy4) Decentralized and balanced national territorial

development (1980s-2000s)

Area-Wide Development

develop major cities and surrounding areas, industrial complexes and hinterlands (1994~)

Balanced National Development

Five-year balanced national development plan(2004) Special Act for Balanced National development (2004) Relocate national administrations and public agencies away from the capital17

3. Territorial Development Strategy5) Maga Regions for Development Efficiency (2008~)Regroup 7 metropolitan cities & 9 provinces into 7 mega regions Overcome the limitation of administrative boundaries Inter-regional cooperation and collaborative development

7 Mega Regions

Gangwon Capital RegionChungchung Region

Region

Daekyung Region

Dongnam

Industry

Honam

Region

Province

Metro. city

Human ResourceInfrastructure

Region

Jeju RegionSource: Presidential Committee on Regional Development 18

3. Territorial Development Strategy6) Paradigm Shift of Territorial Development Policy in Korea 1960s-1980s (Industrialization) Growth pole development (selected areas) Multiple growth poles development Balanced national development with regional competitiveness Territorial development for low-carbon green growth19

1990s (localization)2000s (Globalization) 2010s (Green Growth)

3. Territorial Development Strategy7) Establish the CNTP (Comprehensive National Territorial Plan) Set the directions and strategies for the national territory (1972-) - KRIHS prepare the CNTP with the central and local governments - Establish the CNTP by law and declared by the president of Korea< Characteristics of the CNTP > < 4th CNTP(2000-2020) >

Supreme plan Long term planComprehensive

Takes precedence over other territorial plans Directions for the 10 year territorial development Includes lnfrastructure, housing, land, water, etc20

plan

III

Strategies for Urban Development

1. Rapid Urbanization with Industrialization With the industrialization, rural to urban migration rapidly increased (urbanization ratio 1960 : 39.1% 2010 : 90.9%) Urban development and management become to national agenda - housing, infrastructure, public services < Trend of Urbanization Ratio in Korea >88.3% 79.6% 68.7% 50.1% 39.1% 23.5% 90.9%

1950

1960

1970

1980

1990

2000

201022

2. Legal System for Urban Development Legal system for new development Urban Planning Act (1962) Land Readjustment Act (1966)_for land provision and housing supply Housing Construction Promotion Act (1972) Residential Site Development Promotion Act (1980) Urban Development Act (2000)

Legal system for re-development Housing Improvement Promotion Act (1973) Urban Redevelopment Act (1976) Urban Poor's Residential Environment Improving Act (1989) Urban and Residential Environment Improving Act (2002) Urban Regeneration Promotion Act (2006)23

3. Various Types of Cities at Strategic Locations Industrial Estate Type (1970s~) UlsanAutomobile, Ship-Building

PohangSteel (POSCO)

ChangwonMachinery

Free Trade Type: Masan (Electronics)

Science Park Type: Daeduk (R&D)

Seoul

Daeduk

Gumi

Pohang

Ulsan Changwon Masan24

4. Green Belt PolicyDesignate Green Belt(Development Restriction Area), 1971~ - To prevent urban sprawl and preserve the natural environment around the city - Total Area: 5,397km2 (5.4% of national land)Seoul

Ulsan

Gwangju

Busan

25

5. New Town in Town DevelopmentDevelop new towns within the city(mini city) for housing supply with supporting functions

Mokdong, Seoul

Gaepo, Seoul

Goduk, Seoul

Period: 1983-1989 Area: 4.3 km2 Population: 120 ,000 Household: 26,600

Seoul

26

6. New Town DevelopmentConstruct new towns at the suburban of Metropolitan Cities for housing supply 5 New towns in Seoul Metropolitan Area for 2 million housing< New Towns in Seoul Metropolitan Area (89-93) >

Seoul

27

7. Livable City ProgramNew ParadigmImprove the Quality of Place & Quality of Life Induce creative talents, investment, job creation Economic vitality Sociocultural development

StrategiesGreen space (park, forest, etc) Environment, landscape, landmark Culture (e.g. culturenomics of Seoul) Knowledge-based industries International activities, Business HQs28

Recent Issues on Urban Development

1. Changes and Outlook of the Korean CityPopulation decrease and the advent of the aged societyPopulation(10 thousand) 4,996 4,933 4,701 4,922 4,237 3,814 3,224 24.1 15.7 Ratio of the aged (%) 10.8 7.2 5.1 3.1 3.8 70 80 90 00 10 20 30

Emergence of environment , energy, and resource crisisGreenhouse Gas Emissions(year 2000=100)

170 142 154

120 100

2000 2005 2010 2015 2020Source: Korea Meteorological Administration

Advanced transportation and IT tech. change urban life - affect living patterns and and territorial development

Transfer of urban planning authority to local governments

- Citizens actively participatein and affect urban policies in the new governance system30

2. Quality-based Urban Development

Quantity-based Urban Facilities Supply- meet the increasing needs of urban services (housing, roads, water supply)

Quality-based Urban Development- human capitals, quality of life - Ubiquitous-city, Smart city - Green City

Triumph of the City (Edward Glaeser) How Our Greatest Invention Makes Us

Richer, Smarter, Greener, Healthier, and Happier31

3. Urban Regeneration for VitalityUrban Stream Restoration(Cheonggycheon, Seoul)

Street Regeneration (Daegu City) Industrial Estate Regeneration (Guro, Seoul) Seaport Regeneration (Busan)32

4. Smart City for Convenient Urban Life

IT-based.- Government services - Transportation - Communication - Education - Health care - Public Safety - Energy & Utilities

33

5. Green City for Sustainable Growth Climate change and reduction of greenhouse gasbecome to the global & local agenda

Establish Urban Planning Guidelines forLow-Carbon Green Growth (2010)standard, evaluation, predictions and countermeasures for low-carbon green growth to urban planning

Economic & Territorial Development

Green Growth

Environment

Green industry as a new growth engine R&D in Green Technology Green New Deal projects

Reduce pollution through carbon abatement Improve the quality of life Green life style

34

5. Green City: the Case of Seoul Energy Consumption: Home & commercial, transportation accounted for 86% important to urban and transportation planning GHG Reduction Goals : reduce 40% in 2030 against 1990 emission level

Public Use 4.7% (758) Industry Use 9.7% (1,551)(1,000 tons)

70,000 60,000 50,000 40,000Total Emission Reduction Goal Volume Reduced

59,275

47,416 40%

50,1209,816

52,75017,188 30,825

Transportation Home & Commerce

55.2% (8,829)

30.4% (4,870)

30,000 20,000 10,0000 40,304 35,562 28,450

(TOE)

1990

2015

2020

203035

5. Green City: the Case of SeoulStrategies for Green Growth : Seoul CityUrban Structure & Land usePublic Transportation oriented urban structure Transit-oriented compact development Wind paths Green space expansion

Household Heating energy

circulation Eco-friendly construction Transform lifestyle

Sustainable Seoul for Green Growth

Commerce Limit the areas of

business use Introduction of ecofriendly construction Introduction of smart grid

Transportation Facilitate public

Energy From fossil fuel to natural energy

Industry Transform the structure

transportation Improve efficiency of vehicle Urban structure for walkers and bicycle riders

Provides renewable energy Collective energy consumption

Transform energy source Foster new businesses36

6. Inclusive City for Shared Growth Provide the minimum level of public services to all of the society Transportation system for equity Guarantee transportation rights to socially vulnerable citizens - Provide public transport to low level of access areas - Support transport fares for elderly Affordable housing for low-incomer Establish the housing safety net for low-income people - low-cost public rental housing, long term(5, 50 year) rental housing - loan for rental deposit money, housing voucher, etc. Seoul

Women Friendly City

Women friendly urban planning, residential areas, transportation - urban environment for working women and childcare - safety for women (pedestrian roads, street lighting)

37

7. Network City for Mutual Growth Overcome administrative boundary and promote networking

among cities City-region type development with neighboring cities : eg. mega regions, metropolitan regions

38

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Global Collaboration for our Urban Future

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