Economic Regions to Expedite Industrial Growth
By Do Je-hae
Staff Reporter
Since the onset of the Lee Myung-bak administration, Korea has joined a long list of countries, including Japan, England and France, in creating nationwide networks of multiple economic regions to fuel growth and global competitiveness of all provinces.
This month, the government will launch a special taskforce to expedite the so-called ``5+2 Economic Region'' initiative, currently underway in seven separate regions nationwide as the administration's signature project for balanced regional development.
Experts have explained that what separates the project from the measures of previous administrations is that it comes with district industrial goals per region, while making the best use of existing businesses, and cultural and historical merits.
Seven Pillars of National Growth
Opponents of the Lee administration have often criticized its seeming lack of interest in seeking balanced regional development compared with previous administrations. Lee's immediate predecessor Roh Moo-hyun had made regional growth a top priority of his office, spearheading monumental development initiatives in all corners of the country.
The Lee administration has continued to maintain that it is as devoted as the previous administration to balanced regional development, and confirmed the key industries to constitute the ``5+2 Economic Region'' network in May.
The Ministry of Knowledge and Economy projected that the interregional economic network will result in a $6-billion increase in exports in three years and create 20,000 new jobs.
To publicize the initiative to experts at home and abroad, the Presidential Committee on Regional Development will host a two-day international conference starting Wednesday at COEX, Seoul, to discuss the establishment of an economic zone network that best serves the interest of both the region as well as the nation as a whole.
The presidential advisory committee orchestrates overall regional development policy in Korea.
During the event, Prime Minister Han Seung-soo will be joined by Chairman Choi Sang-chul of the committee and other relevant experts from France and the United States in envisioning ways to ensure co-prosperity and competitiveness of all seven economic regions to be established as new pillars of national growth.
Interregional Networking
The 5+2 Economic Region is a comprehensive national strategy for further enhancing the global competitiveness of each economic region through the fostering of regional industries, human resources, science and technology, building and maintaining social overhead capital (SOC) and boosting tourism and cultural activities.
An economic region would include one major city, combined with neighboring mid-sized cities and towns, ultimately creating a ``Mega-City Region," with a population ranging from 5 million to 10 million and sharing a common industrial purpose through interregional networking and cooperation.
Korea has designated seven inter-regional economic zones, including five general types in the capital region (Seoul, Incheon and Gyeonggi Province); Chungcheong region (Daejeon and North and South Chungcheong Provinces); Honam region (Gwangju and North and South Jeolla Provinces); Dongnam region (Busan, Ulsan and South Gyeongsang Province); Daegyeong region (Daegu and North Gyeongsang Province).
In consideration of the relatively small population of Gangwon Province and the special administrative governing status of Jeju, they constitute the two special types of economic regions.
Capital and Daegyeong Region
Each of the seven economic regions will serve as a different industrial base. The capital region, comprised of Seoul, Incheon and Gyeonggi Province, will be focus on commerce, logistics and knowledge industries.
Local administrations of Seoul, Incheon and Gyeonggi Province created a secretariat to expedite interregional cooperation for creating one economic zone in the capital region last month.
All of the seven economic regions will establish similar secretariats this year, composed of mayors, governors, administrators and academic experts.
Centered on energy and mobile industries, the Daegyeong region, comprised of Daegu and North Gyeongsang Province, has been most forthcoming about the project. Officials from both areas have been talking about an economic integration since 2006, even before the current administration announced the 5+2 Economic Region initiative.
Last week, the Daegyeong region launched its own interregional secretariat in the Gyeongsan Technopolis, North Gyeongsang Province. ``In order for the Daegyeong region to compete on the global stage, it is imperative to seek interregional cooperation," an official with the provincial administration said.
The region will expand its highway infrastructure to provide new connections between Daegu and neighboring areas.
Dongnam and Chungcheong Regions
The country's largest port city of Busan will be combined with nearby Ulsan, a leading industrial city, and the rest of South Gyeongsang Province to form the Dongnam region in the southeastern part of the country.
The Dongnam region has been a tradition stronghold of electric power, iron and steel, gas and oil industries. As a combined economic region, the area will focus on transportation machinery and electronic parts and equipments. The region operates an ad-hoc committee to expand interregional economic synergy and develop more common projects.
During a regional investment fair held last Wednesday in Seoul, South Gyeongsang Province came in second after Incheon to secure the highest number of new investments.
``South Gyeongsang will make full use of its industrial strengths in attracting investment from corporations in the capital region and from overseas businesses," Governor Kim Tae-ho said.
Comprising Daejeon and North and South Chungcheong Provinces, the Chungcheong region will focus on bio-medical sciences and semiconductor and display manufacturing.
Honam, Gangwon and Jeju Regions
Gwangju and North and South Jeolla Provinces will constitute the Honam region. The Jeolla region is still a developing part of the country, but industrialization has been gaining pace in the region, particularly with the historic Saemangeum reclamation project.
The Honam region will specialize in producing new renewable energy sources, while Gangwon will focus on medical industries. The southern resort island of Jeju will develop the water industry and continue its focus on boosting tourism.
Overseas Examples
Meanwhile, it has become a trend in advanced countries to seek global competitiveness by integrating regional economies.
Japan has combined 47 localities into eight interregional economic regions, whereas Britain has designated nine economic regions from a pool of 42 counties.
France has been running a special delegation within the Ministry of Rural Areas and Land Management to implement its policies to foster its economic regions, with a special focus on biotechnology, IT and communication and aerospace technology. More than 9,000 corporations have participated in the project.