This study provides a detailed analysis of the space economics of the Seoul-Gyeonggi region of Korea, including demographic and industrial patterns, so as to provide useful information for policymakers in deciding how to promote economic growth in the region.
The rapid industrialization and economic growth of Korea has led to the extreme concentration of the population and economic activities in Seoul and the surrounding towns of Gyeonggi-do. This abrupt growth of the Seoul-Gyeonggi region has reestablished the region as the nation’s capital in both economic and non-economic activities. However, the concentration of population and industrial facilities in the region has also caused a variety of problems, including housing shortages, serious traffic congestion, and environmental pollution.
We need to find a new and unique method or theoretical framework for analyzing the local economy of this region, particularly taking into account the process and outcome of the region’s rapid industrialization and urbanization. By comparing the pace of industrialization in this region to similar events in other countries, such as the United States and Japan, we can gain a better understanding of the region’s economic growth.
Of the three countries, Korea was the latest to start industrialization, in the 1950s, while Japan and the United States experienced their first waves of industrialization in the 1920s and the 1860s, respectively. The progress of industrialization finally entered its stable phase in Korea only in 1973, as the nation’s economy grew at a rate of 47 percent a year. By the 1980s, Korea will count itself among the most advanced and industrialized economies in the world. Manufacturing accounts for 87 percent of all economic output in Japan and over 90 percent of all economic output in the United States today. Whereas it took Japan and the United States 40 years and 90 years, respectively, for industrialization to reach its present status, it took Korea barely two decades for industrialization to reach the current level of maturity.
The Seoul-Gyeonggi region, with its large population, not only possesses an economy of a significant scale in itself, but also exerts influence on Korea’s national economy as a whole. As the center of Korean politics, culture, diplomacy, military power, and economy, the region serves as both the political and economic capital of the country. The sizable economy of the region provides a favorable environment for market and business activities, attracting increasing volumes of productive and distributive transactions. The region also serves as a gateway for imported concepts, technologies, and goods to the rest of Korea, and has becoming a cradle of nationwide innovation and progress.
Despite its influence, the Seoul-Gyeonggi region covers only six percent of the national territory, yet is home to 63 percent of the total national population, and due to this imbalance is experiencing a number of social issues.
In order for policymakers to mitigate the trend of demographic and economic concentration in the Seoul-Gyeonggi region while also ensuring the continued growth of the region’s economy, they need first to begin to analyze the region as a single integrated economic unit. Once evaluated, they should apply that perspective to urban planning and the design and layout of various facilities for business and other purposes. The goal is to retain the productive and creative output of individual economic actors without letting them become offset by inefficiencies and externalities. Moreover, the new urban and space designs in the region should promote greater efficiency and creativity for businesses at both local and national levels.
Policymakers need to systematically adopt the latest updates and progress in the space economics analysis and incorporate them effectively into their economic plans and policymaking.
한국 수도권의 공간경제분석(An analysis of the space economics of the Seoul-Gyeonggi region)
|Series Title; No||연구보고서 / 제75-16권|
|Subject Country||South Korea(Asia and Pacific)|
|Subject||Territorial Development < National Land Development|
|Holding||KDI; KDI School|