In recognition of the need for a new direction in the currently implemented policies to address the growing concentration and enormity of the city due to economic development, this study aims to examine the concentration phenomenon and the changes that took place in the policies for the capital area, analyze their impacts and propose feasible directions for future policies.
The country’s decentralization as a result of the local self-governing system will make the transition towards a new national paradigm possible, one that expects regions to compete with each other and non-capital areas to discover the driving force of economic development. Furthermore, capital will be able to move freely, increasing the interdependence of countries and speeding up their opening. This however, is expected to bring conflict between the capital and non-capital areas, also raising the need for a reassessment of the policies towards the capital area with the relative advantage. The concentration of the capital area is a remnant of the transportation and economic development schemes carried out during the Japanese occupation. Seoul has rapidly developed over the remnants as an administrative center and a gigantic demand market with easy access to information
At present, half of the Korean population is concentrated in the capital area and the numbers still show a rapid increase. Asides from the heavy density, the capital area holds about half of the economy-related agencies, while three-fifths of the financial loans take place within the area.
In an aim to conduct readjustment systematically and achieve a balanced development, policies for the capital area were organized since the Capital Region Readjustment Planning Act passed in 1982. The policy, which aimed to break up the population and spread it around the non-capital areas through higher ratios of industrial location policies with physical regulations and opportunity costs, seemed to be effective on the surface. But it instead led to an imbalanced development among regions within the capital area, thus bringing no effects.
The ineffective policies and systems in the capital area, currently set to control the concentration of the area, is no longer able to back up the economy’s development. Considering the global trend in locating industries according to function and the transition to locally-governing systems that emphasize the effects of industry-clusters, the currently centralized and regulation-oriented management system and policy of the capital area need to be revised.
Problems of the capital area need to be resolved by the local governments while existing policies need a new paradigm that can utilize the competitiveness of the capital area and achieve the growth potentials of the non-capital areas at the same time. Problems of the large major cities need to be addressed with transportation, housing and social policies. In addition, an overcrowding cost should be imposed on sales facilities that induce overcrowding, a specific number must be set to control factories that induce population increase and pollution according to regions, and repetitive regulations should be readjusted. Furthermore, the Capital Region Readjustment Planning Act needs to be regularly repealed, an effective space economy must be built based on the opinions and rights of the residents and the role of the central and local governments should be reaffirmed, thereby establishing a new policy for the capital area.
수도권 정책의 평가와 기본방향(Evaluation of policies for the Seoul capital area and modification of its direction)
[서울] : 한국개발연구원
|Series Title; No||연구보고서 / 98-04|
|Subject Country||South Korea(Asia and Pacific)|
|Subject||Territorial Development < National Land Development|
|Holding||KDI; KDI School|