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Globalization and regional policies in Korea

Globalization and regional policies in Korea. The 2 nd Goldkronach Forum on the Relevance of Globalization to Region and Local Development in Oberfranken November 20-21 2008. Dr. Sangjun Lee Korea Research Institute for Human Settlements. Contents. Ⅰ. Issues and Concerns in Regional

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Globalization and regional policies in Korea

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  1. Globalizationand regional policies in Korea The 2nd Goldkronach Forum on the Relevance of Globalization to Region and Local Development in Oberfranken November 20-21 2008 Dr. Sangjun Lee Korea Research Institute for Human Settlements

  2. Contents Ⅰ.Issues and Concerns in Regional Development in Korea Ⅱ. Territorial Plan and Regional policies in Korea Ⅲ. Globalization and international cooperation in regional development Ⅳ. Some implications

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

  4. Korea in Brief Territory: 99,678 sq km (2006) Population:48,498,000(2006)  per Capita GNI: US$20,045 (2007) • Production: Services, 57.2 %; Mining and manufacturing, 28.2 %; Construction, 9.1 %; Agriculture, forestry and fishing, 3.2 %; Electricity, gas and water supply, 2.3 %(2006) 2

  5. Korea is strong in 13 core industries which take 80% of exports. • IT/ Electronics • Wireless Communication Equipments • Computer/ Computer Equipments • Semiconductors(the best) • Household Electronic Appliances • Machinery & Heavy Industries • Machinery • Steel(the best) • Shipbuilding(the best) • Automotive • Automobile(No. 5) • Autoparts • Textile/Chemicals/Plastics • Petrochemicals • Plastics • Textile • Tire 3

  6. Population Growth ■ Korea's population 48.5 million in 2006; 54.5 per cent larger than 1970 <The Population Growth: 1970 to 2006>  Source:  National Statistical Office, Each year, Population and Housing Census

  7. Urbanization and SMA (Seoul Metropolitan Area) <The Changes in Residential Population by Region>    (Unit: 000, %) Source:  E. Mills and B. Song (1979). p. 8 and National Statistical Office, every 5 year Population  and Housing Census Note: *) Urban area are the places where more than 50,000 inhabitants live. * The total area of Korea is 99,678㎢, of which about 6.5%(606㎢) is Seoul and about 11.8% (11,699㎢) is SMA.

  8. Gyeonggi - Do Gangwon - Do Seoul Incheon Chungcheongbuk - Do ( Chungbuk ) Chungcheongnam - Do ( Chungnam ) Gyeongsangbuk - Do Daejeon ( Gyeongbuk ) Daegu Jeollabuk - Do ( Jeonbuk ) Ulsan Gyeongsangnam - Do ( Gyeongnam ) Gwangju Busan Jeollanam - Do ( Jeonnam ) N N 0 10 30 0 10 30 50 50 100( 100( km) km) Jeju - do Provincial administration Seven Economic Regions Nine Administrative Regions Gang-Won Seoul-MA Chung-Cheong Dae-Gyung Dong-Nam Ho-Nam Je-Ju 6

  9. Regional Disparities inKorea Source:  National Statistical Office

  10. Urbanization and SMA (Seoul Metropolitan Area) ■ Migration has also influenced housing demand. - People have been migrating from backward rural villages to advanced urban areas since 1960 shortly after when the first economic development plan was initiated by late president Park Chung-Hee ■ the main reason of migration - To find jobs ■ the reasons of migration in SMA - New manufacturing activities was located in the major metropolitan areas, especially in Seoul Metropolitan Area which includes Seoul, Inchon, and Gyeonggi Province ■ The result of concentration in SMA, 11.8 per cent of Korea’s total land area just under 100,000 sq km2 - 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. 8

  11. New Town Development in Seoul Metropolitan Area <5 New Towns in SMA> Total Bundang Ilsan Pyongchon Sanbon Jungdong Area(ha) 5,013.6 1,963.9 1,573.6 510.6 420.3 545.2 Planned population (10,000 persons) 116.8 39 27.6 16.8 16.8 16.6 Population density / ha 231 197 174 327 396 301 Planned housing units(1,000units) 292 (281) 97.6 (94.6) 69.0 (63.1) 42.0 (41.4) 42.0 (41.4) 41.4 (40.5) Floor ratio - 184 169 204 205 225 Construction period - ‘89. 8 ～ ‘96.12 ‘90. 3 ～ ‘95.12 ‘89. 8 ～ ‘95.12 ‘89. 8～ ‘95. 1 ‘90. 2 ～ ‘96. 1 Developer - KLC KLC KLC KNHC Bucheon city KNHC KLC

  12. A Case of New Town Development: Bundang ■ Bundang <Before> <After> <Master plan>

  13. Issues and Concerns in Regional Development

  14. Major issues • Spatial disparities resulting from overconcentration of the Capital region(SeoulMetropolitan Area) • Limited national competitiveness due to low efficiency(high logistic and labor cost) • Degradation of environment and quality of life • Social conflicts surrounding territorial policies(especially between SMA and other regions) 12

  15. Consequences of Globalization on Regional Development in Korea • Competition between regions for attracting new investments, especially FDI • Widening the gab between winners and losers in regional development • Winners=Some regions where have nice infrastructure and human capacity(Seoul Metropolitan Area;SMA) with deregulation • Losers=Regions, specialized with agriculture and have bad accessibility 13

  16. Concentration of the Seoul Metropolitan Area 11.8% Area 47.6% Population 56.4% Mfg. firms Major universities 65.0% R&D institutions 70.0% Government agencies 85.0% 100 Largest corporations 91.0% 14

  17. Major concerns • Need for a new paradigm of territorial management in the era of globalization • Decentralization policies opens new windows of opportunities for local regions • Increasing concerns for sustainable environment and higher quality of life • Importance of social cohesion and conflict resolution regarding territorial issues 15

  18. II . Territorial plan and Regional Policies in Korea

  19. History of the Territorial plan in Korea The 1st plan (1972-1981) Construction of growth centers Restriction of the Capital region The 2nd plan (1982-1991) The 3rd plan (1992-1999) Promotion of local regions The 4th plan (2000-2020) Integration of national territory Main Emphasis 17

  20. Background of the 4th plan Regional policies became more important than ever for:  Balanced national development and  National competitiveness • Nature of the national territorial plan  According to framework act on national territory: It is a comprehensive plan indicating a long-term development direction of national territory Formulate a new national territorial plan toward 2020 18

  21. Characteristics of the new plan Future and Openness Considering internal and international changes in circumstances includingglobalization Efficient Use of Existing Facilities Balancing construction and maintenance of infrastructure Sustainability and Humanism Emphasizing environment and people’s welfare 19

  22. Major strategies of regional development • Forming new (+Hexagonal) territorial structure • Promoting regional competitiveness • Managing national territory toward Northeast Asia • Building networks of infrastructure • Creating livable city and housing • Sustaining environment and resources 20

  23. Strategy 1 : Forming new (+Hexagonal) territorial structure 21

  24. Geoeconomic potential of Korean peninsula Russia Continent Vladivostok Beijing Pan-East Sea Region Pyongyang Central Asia China Europe Seoul Tokyo Japan Busan Mokpo Osaka Pan-Yellow Sea Region Shanghai China & Southeast Asia Pan-Pacific Ocean Taipei Hong Kong 22

  25. Consequences of Globalization and economic regionalization of Northeast Asia • The emergence of mega-regions, especially along the east cost of China • The formation of transborder regions across the seas together with the rise of maritime Asia 23

  26. Basic directions • Building open territorial structure to serve as “strategic gateway” in Northeast Asia • Organizing networked territorial structure for balanced regional development Promoting “ + Hexagonal” territorial structure with threecoastal axes and six economic regions 24

  27. Northeast Asia Pacific Ocean China, SE Asia USA, Japan Yellow Sea East Sea Eurasia Russia “π + Hexagonal” territorial structure in the era of globalization 25

  28. Strategy 2 : Promoting regional competitiveness 26

  29. Self-sustained development of regions • Relocating central government’s agencies away from the Capital region • Developing innovate cities to accommodate the public agencies from the Capital region • Establishing regional innovation system and industrial clusters in provincial regions • Promoting regional strategic industries and restructuring of industrial complexes 27

  30. Specialized development of regions • Systematic management of the Capital region to enhance international competitiveness • Promoting major provincial cities and small and medium cities with higher-order functions • Developing specialized clusters and institutional support to revitalize less developed regions • Developing infrastructure for tourism and cultural industries 28

  31. Government New growth area Research Gangwon(13) Gyongbuk(13) Industry Adjacent City Chungbuk(12) Daegu(12) University Jeonbuk(13) Ulsan(11) Adjacent City High-speed railway Gwangju(18) Busan(12) Airport Inn. City Jeju(9) Gyongnam(12) Port High-way ■ Innovative city - Relocating public organization - Industry, Research, Administration cluster <Concept of Innovative City > 5. 29

  32. III .Globalization and international cooperation in regional development

  33. Strategies of central government: 1. Managing national territory toward Northeast Asia 31

  34. Cooperation with Northeast Asia • Developing financial, business and logistics hubs for economic exchange • Establishing Northeast Asia Development Community for infrastructure development and connection • Promoting trade and exchange among regions of Northeast Asian countries 32

  35. Building Global Network by Rail Major Port Major Airport Express Railway Trunk Railway RUSSIA Khabarovsk TMR TSR MONGOLIA TMGR Harbin Vladivostok Shenyang Dalian Beijing KOREA Tianjin JAPAN Seoul Qingdao TCR Tokyo Pusan Gwangyang Lianyungang Osaka Fukuoka CHINA Shanghai Taipei Hong Kong Kaohsiung 33

  36. Building Global Network by Highway Asia Highway Network 34

  37. Building EnergyNetwork by Natural Gas 35

  38. International logistics and business, new industrial clusters West Coastal Axis South Coastal Axis International logistics and industrial restructuring East Coastal Axis North-South exchanges and tourism National Strategies: Functions of coastal axes for International cooperation 36

  39. Establish cross-border cooperation agency and working groups Lay out and discuss cooperation programs Establish operation funds by membership fee, central government support, etc. Search for financing methods for cooperation projects (ODA, project financing, the third sector) National Strategies: Institutionalization of Cross-Border Cooperation: across the border 37

  40. Strategies of central government: 2. Developing Free Economic Zones for introducing FDI 38

  41. Background of building Free Economic Zones in Korea • Because of the globalization of the world’s economy, there is an urgent need to build a business hub to host international industries • The presence of major economic blocs (such as the EU, ASEAN, NAFTA, FTA), the extension multinational enterprises, and severe competition among regions/cities There are currently three such zones situated in Incheon, Busan/Jinhae and Gwangyang 39

  42. Mission of Free Economic Zones • to foster an efficient business environment with attractive incentives • to establish new logistics hub of Northeast Asia Incheon FEZ • to facilitate easier interaction of the neighboring industries Busan/Jinhae FEZ Gwangyang FEZ 40

  43. The Inchoen Free Economic Zone Songdo International City: a Mecca for international business and high-tech industry Yeongjong Island: a hub of international logistics, tourism and leisure Cheongna: global entertainment and theme park 41

  44. Strategies of local government: Introducing FDI through local initiative -Gyungsangbuk-do and cooperation with other local governments 42

  45. Gyeongsangbuk-do Population: 2.7 mil. Land: 19026.06 km2 Density: 3556.37 (People/km2) 43

  46. Regional Status Source:  National Statistical Office

  47. Regional Issues of Gyeongsangbuk-do • Decreasing & aging population Spatial Structure • Insufficient living infrastructure • Lack of private investments 45

  48. Strategies of Gyeongsangbuk-do • Building new Free Economic Zones based on R&D • Building new international Airport • Strengthening inter-local and international cooperation based on mutual benefits • Fostering Eco-tourism in inland regions 46

  49. New Initiatives of Local Governments: Building Cooperation Network with neighboring local governments City-Province Governor Committee on East Coastal Circle Area Gangwon, Gyungsangbuk-do, Ulsan Aim Increase the relationship and set cooperation system for joint development on Eastern Coastal area Launch 2004 Content • 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 47 14

  50. III .Some Implications

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