1. Territorial Development Strategies in Korea
Jeong-Sik Lee
(Professor, Anyang University)

2. < Land Use Pattern >
- Total area:        
- Agricultural:      
- Forestry:          
- Residential:         
- Industrial:            
- Public Utilities:     
- Streams:           
- Others:            
99,828 ㎢(100.0%)
20,924 ㎢( 21.0%)
64,546 ㎢( 64.7%)
2,659 ㎢(  2.7%)
703 ㎢(  0.7%)
3,143 ㎢(  3.1%)
2,839 ㎢(  2.8%)
5,013 ㎢(  5.0%)
* Paddy field:  11,945 ㎢  (2008)
  Dry field:    7,852 ㎢  (2008)
_____________________________
               19,797 ㎢           
* No. of farming households: 1,212 thousand(7.7% of the nation's total households)          
* Average farming area per rural household: 1.65 ha          
* Area for urban uses = Residential + Public Utilities + Industrial area = 6,505 ㎢
(6.5% of the nation's total land area)          
- Japan: 7.1%, Taiwan: 5.9%, Great Britain: 13.0%          

3. < Population Trend of Korea >
(Unit: 1,000 persons)
1970
1980
1990
2000
2005
‘70~2005
Total Pop.
31,435
37,407
43,390
45,985
47,278
(1.17%)
Pop. density
320
378
438
462
494
Urban Pop.
15,652
24,876
32,792
40,605
44,316
(2.97%)
Urbanization
ratio(%)
49.8
66.4
75.3
88.3
90.2
* Urban area is defined as cities and towns with a population of 20,000 persons and more.          
* North Korea
 - Population: 27,000 thousand persons
 - Area: 122,100 ㎢
* Most densely populated countries :     1st: Bangladesh (954 persons/㎢)
   2nd: Taiwan    (590 persons/㎢)
   3rd: S. Korea   (494 persons/㎢)
   4th: Puerto Rico (413 persons/㎢)
   5th: Netherlands (380 persons/㎢)   

4. < Population of Large Cities >
(Unit: 1,000 persons)
1980
1990
2000
2005
1980~2005
Seoul
8,364
(22.3%)
10,628
(24.4%)
9,895
(21.5%)
9,796
[20.7%]
0.63%
Busan
3,160
3,798
3,663
3,519
0.43
Daegu
1,605
2,229
2,481
2,462
1.71
Incheon
1,084
1,818
2,475
2,526
3.38
Gwangju
728
1,145
1,353
1,417
2.66
Daejeon
652
1,062
1,368
1,442
3.17
Ulsan
418
682
1,014
1,047
3.67
Total
16,011
21,362
22,249
22,210
1.31
ratio of the nation's total Pop.
42.8%
49.2%
48.4%
47.0% -

5. < Ratio of Socio-economic Dominance of the Capital Region (2005) >
(Unit: %)
Indicator
Seoul
Incheon
Gyeonggi
Provice
Total
Area
0.6
0.3
10.8
11.7
Population
20.7
5.3
22.0
48.0
GRDP
22.8
4.6
19.9
47.3
Employment in professional/technical
30.2
5.0
25.0
60.2
FDI (in-bound, 2001)
34.0
4.0
11.6
49.6
Headquarter of  top 100 enterprises*
80.0 -
95.0
No. of  venture establishment
35.5
28.6
68.7
Central government authorities
57.1
1.8
83.9
Bank deposits
49.7
3.5
14.6
67.8
Bank loans
42.8
19.3
66.7
R & D spending (public & private)
23.2
2.9
37.9
64.0
No. of college students
24.0
2.1
12.0
38.1
*Data for Incheon and Gyeonggi Province were not available.

6. < Administrative System of Korea >
Metropolitan
Province
Special Self-governing
Province (Jeju)
(8)
(28)
(712)
(114)
(5)
(31)
(7)
(452)
(80)
* Total Town: 211, Total Myon: 1,205

7. I. Taking-off for Industrialization in the 1960s
○ The Military government which came to power in May 1961 after coup placed heavy
emphasis on the export-oriented industrialization primarily because of its desire
to earn foreign exchange, and to substitute import.
○ The government thus designated a special industrial estate in Ulsan in 1962,
and the construction of oil refinery was started in 1963.
   
   - This industrial estate is regarded as a stepping-stone of industrial development
in Korea.
○ Major industrial development in the 1960s occurred mainly in Seoul-Incheon axis and,
to a less extent, in the southeastern coastal area because of relatively accumulated
infrastructure and human capital.

8. II. Infrastructure and Manufacturing Expansion in the 1970s
○ In 1971, the First Territorial Development Plan( ) was established to further
promote national economic growth and regional development as well.
○ In order to achieve such development goals, the implementation scheme was mainly
based on the so-called growth pole-oriented policy. In other words, the principle
of economic efficiency has prevailed against equity since the early 1970s.
○ The first plan gave high priority to establish large-scale industrial complexes,
and expand transportation and communication networks as well as water resources.
○ Despite such far reaching achievements in infrastructure and Mfg expansion
in the 1970s, rapid urbanization and industrialization had resulted in over-concentration
of population and economic activities in large metropolitan areas, specifically, Seoul and
the Capital Region.

9. III. Multi-centered Spatial Structure Reorganization in the 1980s(I)
○ The Second Territorial Development Plan( ) placed heavy emphasis on controlling
the growth of the Capital Region by building up the multi-centered spatial structure.
○ The concept of growth centers and Regional Economic Clusters was thus introduced
as counter-magnets or relief poles against Seoul as well as the Capital Region.
○ However, such government's strenuous efforts have not been successful, as expected.
○ Nonetheless, the achievements of territorial development from the 1970s to date can
not be disregarded.

10. III. Multi-centered Spatial Structure Reorganization in the 1980s(II)
○ For example, the first achievement could be the expansion of industrial estates and output.
- Industrial area: 102㎢ (1971) → 795㎢ (2008)
Heavy industrial estates on the southeastern coastal belt:
Pohang, Ulsan, Onsan, Changwon, Masan, Geoje, Gwangyang, Yeocheon, etc.
West coastal industrial estates: Incheon, Daesan, Gunjang, Daebul, etc.
- Inland local industrial estates: provincial capitals and other medium-sized cities
○ The second contribution was to expand transportation network across the country.
- Freeway: 655km(1971) → 3,447km(2008)
National highway pavement: 31%(1971) → 100%(2008)
Subway(Seoul/Busan/Daegu/Incheon/ Daejeon / Gwangju): 25km(1981) → 835.5km(2008)
* Seoul: 565.3km, Busan: 89.5km, Daegu: 53.9km, Incheon: 60.5km, Daejeon: 20.5km,
Gwangju: 10.2km
Electrified railways: 443km(1981) → 1,126.7km(2008)
- High-speed railways: Seoul-Busan(418.7km), Seoul-Gwangju/Mokpo

11. III. Multi-centered Spatial Structure Reorganization in the 1980s(III)
Port handling capacity: 18.8million ton(1971) → million ton(2008)
  * Busan/Gwangyang two-port system, Incheon, Pyeongtaek, Gunsan, Masan, Yeosu, Mokpo,
Pohang, Ulsan, etc.
- Airport: International airport - Incheon, Gimpo, Busan, Jeju, Cheongju
           Domestic airport: Incheon, Gimpo, Gimhae, Jeju, Pohang, Ulsan, Jinju, Gangneung,
Yeosu, etc.(16 airports)
- Passengers carried by air: international; 398 thousand (1970) → 62,790 thousand(2008) domestic; 44,480 thousand (2008)
○ The third one was to develop water resources for municipal water supply, agricultural and industrial water uses.
- Multi-purpose dams(15 dams): 350 million ㎥ (1971) → 12.6 billion ㎥ (2008)
Total water supply capacity: 240 million ㎥ (1971) → 10.8 billion ㎥ (2008)
Electricity generated: 2,360 GWh/year(2008)
Flood control capacity: 2.2 billion ㎥ (2008)

12. III. Multi-centered Spatial Structure Reorganization in the 1980s(IV)
○ The fourth one was to improve the quality of life.
- Piped water supply ratio: 36%(1971) → 92.1%(2008)
Sewage treatment plants: 43(1993) → 357(2008)
Sewage treatment capacity: 6,370 thousand ton/day(1993)
→ 23,946 thousand ton/day(2008)
No. of dwellings: 4.4 million units(1971) → 12.5 million  units(2005)
  * Almost 45% of the nation's total households does not have their own houses.
Korea has suffered from serious housing shortages in the last 30 years.
Such shortages were, to a great extent, worsened by the skyrocketing of land prices,
particularly in Seoul and its suburbs.
Land and housing speculation has been one of the serious political and socio-economic
issues during the late 1980s and early 1990s.
  * Annual average increase rate of land value: 16.2% (1980s), as opposed to 8% of
economic growth rate

13. III. Multi-centered Spatial Structure Reorganization in the 1980s(V)
○ In order to overcome such housing shortages, the Korean government started to
develop 5 new towns in the suburb of Seoul in 1989 just after 1988 Seoul Summer
Olympiad.
- Bundang, Ilsan, Pyeongchon, Sanbon, Jungdong
  * Development period:
  * Total area: 50.1 ㎢
  * Total population planned: 1,180 thousand persons
  * Current population: more than 2 million persons
○ The fast development of new towns around Seoul was mainly attributed to providing
mass housing units in order to stabilize the soaring of housing cost.
- That is why mostly high-rise apartments were built in new towns.
○ The fifth achievement was to enact a number of laws for efficient land resources
management.
- Urban Planning Law
- Local Industrial Development Law
- National Land Management Law
- Environmental Conservation Law
- National Park Law, etc.

14. III. Multi-centered Spatial Structure Reorganization in the 1980s(VI)
○ Like this, Korea's enormous expansion of GNP and exports has been a shining example
among developing countries as well as industrialized countries.
- Per capita GNI(Gross National Income): $155(1960) -> $1,599(1980) -> $5,887(1990)
-> $10,890(2000) -> $19,231(2008)
- Nominal GDP: $ billion(2008) -> 15th ranking out of 186 countries
○ Less impressive, however, has been Korea's ability to share the benefits of
development, especially among regions.
- Gini Coefficient: 0.306(1980) -> 0.295(1990) -> 0.319(2001) -> 0.325(2008)
○ Regional disparities, particularly between the Capital Region and the rest of the country,
have likely accelerated in many respects.

15. IV. More Balanced and Integrated Regional Development in the 1990s(I)
○ The Third Territorial Development Plan( ) has four basic goals.
- (i)  to form decentralized spatial structure
(ii) to establish productive and resource-conserving land use system
(iii) to improve social welfare and environmental quality
- (iv) to set up physical basis in preparation for national unification
○ The Korean government gave also high priority to the decentralization from the Capital Region in the third plan.

16. IV. More Balanced and Integrated Regional Development in the 1990s(II)
○ Since the early 1970s, the Korean government has employed a wide spectrum of
decentralization policy instruments.
- Construction of local industrial estates
Designation of greenbelt around Seoul and major urban areas(3,938.7 ㎢)
Introduction of residence tax
Collection of development fees for large-scale office and commercial buildings in Seoul
* Collected fee: $115.2 million(2005) -> $141.6 million(2008)
Restriction of Mfg factories and universities
- Relocation of secondary public offices, etc.
○ Nonetheless, the spatial structure of human settlements in Korea has not yet been
successfully reshaped as expected.

17. V. Self-reliant Localization in the Early 21st Century(I)
○ Since the inception of the President Roh's administration in February 2003, the
government has given much higher priority to balanced regional development by
introducing a new conceptual framework such as regional governance, regional
innovation system, partnerships between relevant actors, industrial clusters, fostering
of local universities, etc.
○ Such attempts are intended to reinforce the basis for self-reliant localization, and
mainly rooted in the Fourth Territorial Development Plan( ). However, the
Fourth Plan was slightly modified for the period of
○ Government's such pledge was further realized by promulgating the Special Law on
Balanced National Development in January 2004.
○ This is the first legislation dealing with more balanced regional development in an
integrated way ever enacted in Korea.

18. V. Self-reliant Localization in the Early 21st Century(II)
○ With respect to Regional Innovation System(RIS), the Korean government places the
emphasis on the boosting of regional innovative capabilities by means of consolidating
R&D, technological innovations, venture spin-offs and entrepreneurship, institutional
reform, and cultural activities.
○ To do this, the local universities are expected to play a vital role as the catalyst of R&D,
and regional planning and development.
○ With respect to the reform of institutional framework, a single and permanent
organization, the Presidential Committee on Balanced National Development was
established in April 2004, in accordance with the special law.
○ The Committee is supposed to coordinate policies and prepare strategic decisions on
balanced regional development. The Committee is under direct control of and
responsive to the President.

19. V. Self-reliant Localization in the Early 21st Century(III)
○ The special law also authorizes the central government to create the Special Account
on Balanced National Development, amounting to approximately US$4billion.
○ This special account is mainly intended to support both regional innovation and
regional development projects based on their priority and nature of each region.
○ In particular, the central government designated 70 small cities and rural
counties (out of 234 cities and counties) as lagging regions based on the level of
regional development in August 2005.
○ Each lagging region is currently undertaking their own development projects provided
with the financial grant of US$2 - 3 million per annum.
○ Such development projects are primarily focused on the processing and marketing
of each region's endowed resources such as manufacturing of cosmetics, beer and
wine extracted from white lotus in Muan County, South Jeolla Province.

20. VI. Construction of New Administrative Town
○ The government promulgated the Special Law on the Construction of New
Administrative Town in March 2005 in order to relocate central government ministries
and relevant agencies to the central part of South Korea.
Location: Gongju-Yeongi region in South Chungcheong Province
- Area: approximately 70㎢
- Planned population: 300,000∼500,000 persons
- Construction period: 2007∼2014
Ministries and agencies to be relocated: 66 organizations
(Office of Prime Minister, Ministry of Strategy and Finance, Ministry of Education, Science and Technology, Ministry of Agriculture, Forestry, Fishery and Food, Ministry of Land, Transport and Maritime Affairs, Korea Development Institute, Korea Research Institute for Human Settlements, etc.)

21. VII. Relocation of Public Agencies
○ In addition to the new administrative town, the government also announced the
relocation of 176 public corporations (out of 346) from the Capital Region to 12
provinces and metropolitan cities based on the Special Law on Balanced National
Development in July 2005.
- Period of relocation: 2007∼2012
- No. of employees to be relocated: 31,949 persons
In order to accommodate such corporations, each province and metropolitan
government is recommended to develop a new town or new town in town.

22. VIII. Construction of Business Town(I)
○ The central government designated the so-called 6 self-sufficient business towns
in order to promote business activities and thereby strengthen the national
competitiveness in July and August 2005, based on the Special Law on the Development
of Business Town enacted in December 2004.
Muan County, South Jeolla Province(40㎢): bio-industry-oriented manufacturing and
trade(Namwha Industry Co., etc.)
Wonju City, Gangwon Province(3.3㎢): medical engineering-oriented     R&D, venture
business(Lotte Construction & Engineering Co., etc.)
Chungju City, North Chungcheong Province(7.0㎢): IT-oriented R&D, bio-engineering
industries(Isu Chemical Co., etc.)
Muju County, North Jeolla Province(8.2㎢): golf and ski-oriented      tourism and leisure
facilities(Daehan Electronics Co., etc.)

23. VIII. Construction of Business Town(II)
Taean County, South Chungcheong Province(15.8㎢): Golf courses and other
recreational facilities(Hyundai Construction &  Engineering Co., etc.)
Haenam and Youngam Counties, South Jeolla Province(33.3㎢): Golf, Hotel and Casino,
and other recreational facilities(Korea Federation of Industries, Korea Tourism
Corporation, etc.)
○ In a sense, the companies to be located in such towns are both developers and
consumers by constructing manufacturing and office buildings as well as housing,
educational and medical facilities for employees, and other necessary urban services.
○ In order to implement such scheme, the central and local  governments are
going to provide various incentives including infrastructure construction such as road,
water supply, electricity and heating, one-stop services for administrative approval,
the  assistance for investment fund raising, and the reduction of  corporate and income
taxes and various local taxes as well.

24. IX. Region-wide Economic Zone(I)
○ The incumbent MB government announced a new regional development strategy
based on the concept of region-wide economic zone, which consists of a few
existing metropolitan cities and provinces in July 2008.
○ In accordance with such scheme, South Korea is divided into 5 zones and 2 special
zones, called 5+2 region-wide economic zones.
- 5 zones: the Capital Zone, Chungcheong Zone, Honam Zone, Daegyeong Zone and
Dongnam Zone
- 2 special zones: Gangwon Zone and Jeju Zone
○ In order to promote regional development of each zone, the central government
is going to establish an action program focusing on developing growth centers,
region-wide infrastructure facilities, strategic industrial clusters, and pioneer or
leading projects in each zone.
○ In particular, regional governance system is strongly recommended to induce
mutual cooperation among local governments concerned to implement such
development projects successfully.

25. IX. Region-wide Economic Zone(II)
○ The government announced 30 major leading projects to vitalize region-wide
economic zones. For instance, the second ring road in the Capital Zone, freeway
for logistics in Chungcheong Zone, Saemangeum project in Honam Zone, East Coast
Freeway in Daegyeong Zone, the international airport in Dongnam Zone, a double-
track electrified railway in Gangwon Zone, and cruise port in Jeju Zone.
○ Strategic industries to be promoted in each zone are also proposed as follows;
- Capital Zone: knowledge-based service industries including finances, business, and
logistics
Chungcheong Zone: medical-bio industry, semiconductor/display industry
Honam Zone: new renewable energy, optics-related industry
Daegyeong Zone: energy, mobile communication industry
Dongnam Zone: transport machinery, fusion parts/material industry
Gangwon Zone: medical engineering, tourism industry
Jeju Zone: mineral water industry, tourism/leisure industry