IGES Project on Urban Environmental Management Agenda of the 3 rd Project Group Meeting Urbanization, Industrialization and Sustainable Development in Korea - The Case Study on Ulsan Metropolitan City Prepared by -Changsuk Kim ( Seoul City Univ., Ph. D ) -Hoiseung Jeong ( Korea Environment Insitute, Ph. D ) -Deokho Cho ( Univ., of Taegu, Ph. D ) –Dongkun Lee (Sangmyung Univ., Ph. D ) Dec. 2, 1999 This study is performing with the financial supports of the Institute of Global Environmental Strategies.

Ⅰ. Introduction Ⅱ. Urban Development and its Evaluation System Ⅲ. Urbanization and Environmental Problems in Korea Ⅳ. Case study Ⅰ : Ulsan- Metropolitan City Ⅴ. Case study Ⅱ : Ansan City Ⅵ. Urban Environment Management System in Korea VII. The Development Strategies for the Sustainable Urban Environments

I. Introduction 1.Background of This Research East-Asian Countries have experienced rapid economic growth, industrialization, and urbanization. They also created several environmental problems in local, national, and even global level. And then, the current economic growth policy reaches some limitations environmentally in sustaining an economic growth. Therefore, the goals of this research find a new paradigm for the sustainable development economically, socially, and environmentally in this area and suggests a new direction of economic development for the developing countries. Korea has influenced the economic growth of East Asia countries because she is one of the most successful countries in terms of the economic development. In another way she has been experiencing very serious environmental problems due to negative impacts of a rapid economic growth. She changed recently a growth strategy from an economic growth to a sustainable development in order to solve environmental problems. Therefore, Korean experiences will be helpful to solve environmental problems of other Asian countries.

2. Scope of This Research 1. This research covers the Korean economic growth policy in macro system and incentive structure. Based upon this policy, it notes Ulsan and Ansan industrialization process. The former has focused on the building of heavy- chemical industrial complexes by the central government in order to promote the national economy. Many inappropriate industrial facilities of the Capital Seoul City are relocated in the latter 2). It examines the urbanization process in national and local levels, it identifies a relationship between the economic growth and environmental pollution. It also contains the urban environmental problems in Ulsan and Ansan. This model will apply to the Ulsan and Ansan Case Study. 3). It develops the environmental indicators under the Driving Force- Pressure- State- Effect- Response Framework of the specific cities for applying to the developing countries. 4). It will develop the environmental indicators for elaborating the sustainable urban development model for the developing countries. 5). It finally will build a new model on the sustainable urban growth management for solving the environmental problems in East-Asian Cities. And it also suggests a new paradigm for the economic growth and environmental problem solving.

3. The Goal of This Research Based upon the above researches, it will develop a model of sustainable urban growth management policy for the East-Asian sustainable urban development policy. The Flow Chart of This Research The Korean Experiences on the Industrialization, Urbanization, and Environmental Policy -Nation Level -Local Level (Ulsan, Ansan) -Environmental Problems - Governance on the Environmental Issues Developing of the Environmental Indicator under the DPSER Framework -Driving Force -Pressure -State -Effect -Response The Case Study for the Building of A Sustainable Urban Growth Management Policy in Korea -Economic Development (Ulsan and Ansan) -Industrial Policy -Environmental Assessment Model Building of A New Sustainable Development Model in East-Asian Cities - Economic Growth - Industrial Policy -Governmental Policy -Citizen Participation -Environmental Management

Ⅱ. Urbanization ＆ Industrialization in Korea 1. National Land Use Circumstances in Korea The South Korea national land is ㎢. National land use is composed of forest (65.8 percent), agriculture (22.1 percent), industrial (4.1 percent), public sector (2.4), and other areas (7.15 percent). The urban areas have been increased dramatically, residential areas 2.9 times, public sector areas 2.8, and especially industrial sites have increased 34.6 times for the last 50 years. Figure 1. Korean Land Use Pattern

2. The Korean Economic Growth Policy In 1960s Korea was a desperate and poor country due to the Korean War and social unrest such as the student movement in 1960 and the military coup in However, Korea became a member of the Organization of the Economic Cooperation and Development (OECD) which its members are composed of the developed counties in The Korean national income as a whole grew at an average annual rate of 7.9 percent during the period from 1963 to 1995 (Kim and Hong, 1997). It comes from several different factors such as a strong government policy for economic development, highly skilled labor and low wage, individual's willingness to overcome poverty, and the "Can Do Spirit for Economic Growth." An authoritarian military government built the Economic Development Five Years Plan in This plan was directed by a strong and authoritarian government and lasted until the 1980s (see Table 1).

The Goal and Policy Issues of Economic Development Five Years Plan

Figure 2. The Change of Population and Urbanization Rate

(Figure 1). Economic Growth and Environmental Problems Resources Use Material Consumption Environmental Pressures Environmental Problem Cycle of Before ESSD Carbon cycle, Nitrogen cycle, Water cycle Environmental problem cycle of after ESSD GNP (time) Source: Velliga, Pier(1998), Industrial Transformation Research, p.2, Figure 2. Economic Growth and Resources (revised by an author).

Figure 7. Development Framework of DSPER Structure

2.Structure and Composition of the Model The relation between industrialization and environment depends on both national factors and region-specific factors. However their influence varies at the stage of the model. National Region Specific Driving Force ○ ○ Pressure △ ○ State ○ Effect △ ○ Response ○ ○ Strategic ○ ○

In general, "An indicator is a parameter, or a value derives from parameters, which points to/provides information about/describes describes the state of a phenomenon/environment/area with significance extending beyond that directly associated with a parameter value. Within the DPSER framework, five types of indicators can be noted:. Indicators of driving force describe parameters which people can influence on the environment under the framework between the human and nature. They contain the urban activities and utilization of resources by the people such as government leadership and policy factors. Indicators of pressure note parameters that are influenced by the indicators of driving force. They generally include the land use change and load on the environment.. State indicators indicate the “state” of sustainable development that contain the environmental status.. Effect indicators include the disease, desertification and extermination of bio-diversity due to the environmental problems.. Response indicators note policy options and other responses to the changes in the “state” of sustainable development. 4. Definition and functions of environmental indicators

Figure 8. The Framework of DSPER Structure

Components of environmental indicators in study areas

Ⅳ. DPSER Framework for the Ulsan Metropolitan City 1. General Circumstances of the Ulsan Metropolitan City UMC is one of the fastest industrialized cities within the country or in the world since 1962 when she became a city. She is a symbolic city of Korean development in terms of industrialization, urbanization, and even environmental problems. The Korean government nominated Ulsan as a special industrial area and established an industrial center by the 'Special Law of National Industry Site Development' (Corporation of Industry Site Development, 1987). Based upon this law, Ulsan National Industry Complex was constructed.. A city is a town where more than 50 thousand peoples live.

2. DPSER Framework of the Ulsan Metropolitan City for the Sustainable Development 2.1. Driving Force of the UMC UMC is one of the fastest industrialized cities within the country or in the world since 1962 when she became a city. She is a symbolic city of Korean development in terms of industrialization, urbanization, and even environmental problems. The Korean government nominated Ulsan as a special industrial area and established an industrial center by the 'Special Law of National Industry Site Development.' Based upon this law, Ulsan National Industry Complex was constructed. At the initial stage of industry complex development, its population and size were respectively 85 thousands and km 2. However, its population and size are separately 991 thousands and 1, km 2 in The number of population has increased about 12 times and urban size six times during 34 years The development process of UMC is lined up with the building process of industry complexes. The stages of development of industrial complex are as follows: The first stage ( ) focused on the building of an industry site and infrastructure such as port, road, and water provisions for the Ulsan Industry Site.

The Change of Population and Area of the UMC

The Number of Cars of in Korea (Unit: 1,000 Cars)

The Number of Cars of the UMC

The Growth of GNP, GDP and GNP per Capita in Korea

The second ( ) made an effort to construct the heavy chemical industrial complex. A refined oil industry along with chemical fertilizer industries was built in the water front areas such as Jangsengpo and Yeochun. In order to support these facilities, social overhead capital such as port, road, and steam power plant also was installed in this era. The third period ( ) was a leaping stage in the development of Ulsan industry. Ulsan's representative industries such as automobile and shipbuilding were constructed in Yumpo and Mipo industry complexes during this period. In the fourth stage ( ), agglomeration and scale effects of these industries was gradually generated and several industries such as iron, automobile, and lumber were located in order to enjoy these side effects. An industry belt was established in the fifth period ( ) because existing industry complexes were continuously grown in terms of productivity and scale, and new industry complexes like Unyang and Yongyun were built. And then Ulsan has grown the biggest heavy-chemical industry complex city in South Korea in terms of amount of products and scale. In another aspect, Ulsan has tried to reduce environmental problems through changing the structure of industrial base from petroleum chemical plants to automobile and shipbuilding plants, which are relatively a low pollution industry. Eventually, main industries gradually has changed from the petroleum chemical industry to the automobile and shipbuilding since 1987 (UMC, 1997). As a result, two national industrial complexes and several local industrial complexes were located in UMC as the Figure 1. The productivity is corresponded to 18.9 percent in that of nationwide manufacturers and 21.1 percent in amount of nationwide export customs (UMC, 1997). Finally, Ulsan was eventually grown to the symbol of Korean economic development

Figure 1. The Location of Ulsan Industry Complexes

Economic Status of Ulsan Metropolitan Area in 1996

. Source Industries of Environmental Pollution in The Environmental Pressure in UMC These explosive urbanization and industrialization however created several environmental problems such air quality, sewage water, soil, and river and ocean pollution in UMA. Especially, Ulsan's environmental problems are serious more than that of any other city because most manufacturing plants are pollution-related industries such as petroleum-chemical or automobile and shipbuilding industries. Source industries of environmental pollution are like Table 3. Source: This data is provided by the Department of Environmental Protection in UMC in 1998 ( ) is the number of source industry of two national industry complexes (Ulsan and Onsan)

Population Increase and Urbanization Rate in Korea and 7 Large Cities

Land Use Plan in 7 Large Cities( ㎢ )

Land Use by Land Category in the UMC

The GDP and Energy Use in Korea

Gas Consumption in the UMC

Industry, Agriculture and Industry Complexes (Unit:m 3, number, person)

. The Circumstance of Air Pollution in UMC 2.3 The Environmental States of the UMC Main pollutants of national complexes are air and poison pollution because major factories in these areas are petroleum chemical or heavy industries. More specifically, two major environmental problems in the UMC are air quality and water pollution. Water quality can be noted in Table 5. Water pollution exceeds the environmental criteria in most areas except coastal water. In other words, the UMC is experiencing serious water pollution. However, water quality has improved since the middle of the 1990s due to the same reasons which account for the improvement of air quality. Other environmental problems such as noise, soil, and poison also became better as the result of the effort of the local government and the public (UMC, 1997). In a broad sense, the environmental quality of the UMC has been improved but that of specific industrial complexes is still deteriorating. Source: Ulsan Commercial Chamber (1998), The Economic Status of Ulsan Metropolitan City in the Circumstances of Ulsan Commercial and Industrial Sites (p.2). 1). Each number is extracted from the Korean Census Survey on the Mining and Manufacturing Industry 2). 1 US dollars ($) = 900 Korean Won

Air Pollution (SO 2 ) by the Metropolitan City

Generation of Waste Water and Household Waste Water per Day

Table 5. The Circumstances of Water Pollution in the UMC

The Method of Waste Treatment in the 7 Large Cities (household + Industrial waste)

Environment Related Organization

. Investment on the Environment Issues and Financial Sources

Investment sections

IV. Lessons from the Korean and Ulsan Experiences. Everything in Korea has been changed dramatically except human species during the last 40 years. In a broad sense, Korea has become a better society. However, this rapid growth created a serious negative result. In other words, 'environmentally,' "Samcheunri Gumsu Gang San" is altered to a serious polluted country. More specifically, the environmental problem of Ulsan is very serious like the above descriptions even if she has played the role of engine to promote the Korean economic growth. The reasons can be summarized as follows: 1) In order to promote economic growth, the Korean government adopted the growth strategy of heavy-chemical industry that is a pollution-related manufacture. Ulsan is a symbolic city of economic growth and environmental problems. Ulsan's economic growth indicated the deterioration of urban environments. It was a trade-off relation. Therefore, the government should adopt the environment friendly industry to stop the trade-off relation of economic growth and environmental problems. It is a sustainable development strategy. 2) The second is that the central government did not consider the environmental impacts of heavy-chemical industrial complexes. However, if the environmental problems occur once, it is very difficult to cure them by their inherent nature. Actually, even though the central government has tried to cure the environmental problems since 1984, it became worse so far. Fortunately, the central government had continuously reforested in mountain areas since 1960s and succeeded in building a green national land except urban areas.

3) The third is the management of environmental problems. In terms of political structure, the local autonomy was not established until 1995 and environmental policies were controlled by the central government. It resulted in the inefficient correspondence on the local environmental problems. Until now, national industrial complexes are regulated by the central government and local complexes are controlled by the local one but both complexes are located within the UMC. Two different organizations involved in the management of Ulsan environmental problems and it caused several problems on the management of several industrial complexes. 4) The non-profit organization and citizens must participate in the improvement of environmental problems because it is impossible to do it without their helps. Many environmental organizations and citizens and even some factories recently involved in the improvement of environments in the central and local level. The public concerns on the environmental issues increased explosively because the environmental problems such as fresh water, air quality, bad smell and so on are directly related with the quality of their lives. In summary, in the beginning stage of economic development, Korea made a mistake that did not consider negative impacts of rapid economic growth which are environmental problems. As a result, she has paid a lot of costs to cure these problems and still is undergoing. Very recently, the central and local government, citizens' organizations and even plants begin to take into consideration on the environmental issues. As a result of these efforts, the direction of environmental problems changed from the deteriorating trend to the improving one (Department of Environment Protection of UMC, 1998).

VII. Concluding Remarks and Future Studies 1. building of sustainable urban growth management model (1). Economic growth policy (2). Urban amenity (3). Industry ecology and sustainable consumption (4). Role of organizations (government, social organizations, and citizens) (5). International comparisons of the environmental and economic growth policy (6). Governance on the environmental issues 2.. Applying the Modified Model to Case Study Cities.3. Finding Policy Implications

IV. Research Members Changsuk Kim (Seoul City Univ. Ph.D: Projector Leader: Hoiseung Jeong (Korea Environment Institute, Deokho Cho (Univ. of Kyongju, Ph.D: Dongkeun Lee (Sangmyung Univ. Ph.D: Project Manager) 8 Research assistants(2 assistants per professor)

V. Time Schedule of Study and Members' Roles