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Studies on Development Policies for Regional Industry

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초록

After Korean War, Korea focused on catching up with the world economy by concentrating on some target industries around the Capital Region and southern coastal cities. Thus, the regional disparity between Capital Region and non-Capital Regions increased drastically. At last, when Korea acquired full-fledged autonomy in 1994 in the Civilian government (1993-1998) and experienced the Asian financial crisis in 1997-1998,local governments were awakened to the notion of region-oriented development,especially for regional industrial development. The purposes of this paper are to introduce regional industrial development policies since 1998 and to suggest some recommendations in terms of how to adjust regional development for industrial policies in the future. In the introducing phase (Kim administration, 1998-2003), four provincial governments requested national funding to raise regional industries that are of strategic importance. At the same time, the central government recognized the need to nurture regional industries to overcome structural weaknesses. As a result, the Roh administration (2003-2008) gave a birth to a systematizing phase. As the ultimate regional policy objective, the balanced national development has been set and the Special Acts, Special Accounts, Committee, and National Plan have been established. Regional Industrial Promotion Project has been carried out very actively during this period. It had a good start albeit idealistic to a certain extent. Therefore, the current government has changed policy paradigm from balanced growth to regional competitiveness along with global paradigm shifts. In order to enhance regional competitiveness, regional development policies have been pursued in more efficient way. Leading Industry Nurturing Projects (LINPs) on Economic Region level,existed Regional Industrial Promotion Projects (RIPPs) on Province level, and Region Specific Industry Projects (RSIPs) on Local Area level have been implemented. Now, it is appropriate to review regional development policies including industrial policies since 1998 and to adjust them for the future sustainable regional development. Because LINPs and RIPPs will be terminated in next two years, the 2nd stage projects are on planning to reduce the redundancies in two projects. In addition, business support program would be reformed from subsiding technology development to building ecological business system. Finally some policy implications are provided in this paper,which is useful to establish the new regional industrial policies for both central and local government.

Abstract

After Korean War, Korea focused on catching up with the world economy by concentrating on some target industries around the Capital Region and southern coastal cities. Thus, the regional disparity between Capital Region and non-Capital Regions increased drastically. At last, when Korea acquired full-fledged autonomy in 1994 in the Civilian government (1993-1998) and experienced the Asian financial crisis in 1997-1998,local governments were awakened to the notion of region-oriented development,especially for regional industrial development. The purposes of this paper are to introduce regional industrial development policies since 1998 and to suggest some recommendations in terms of how to adjust regional development for industrial policies in the future. In the introducing phase (Kim administration, 1998-2003), four provincial governments requested national funding to raise regional industries that are of strategic importance. At the same time, the central government recognized the need to nurture regional industries to overcome structural weaknesses. As a result, the Roh administration (2003-2008) gave a birth to a systematizing phase. As the ultimate regional policy objective, the balanced national development has been set and the Special Acts, Special Accounts, Committee, and National Plan have been established. Regional Industrial Promotion Project has been carried out very actively during this period. It had a good start albeit idealistic to a certain extent. Therefore, the current government has changed policy paradigm from balanced growth to regional competitiveness along with global paradigm shifts. In order to enhance regional competitiveness, regional development policies have been pursued in more efficient way. Leading Industry Nurturing Projects (LINPs) on Economic Region level,existed Regional Industrial Promotion Projects (RIPPs) on Province level, and Region Specific Industry Projects (RSIPs) on Local Area level have been implemented. Now, it is appropriate to review regional development policies including industrial policies since 1998 and to adjust them for the future sustainable regional development. Because LINPs and RIPPs will be terminated in next two years, the 2nd stage projects are on planning to reduce the redundancies in two projects. In addition, business support program would be reformed from subsiding technology development to building ecological business system. Finally some policy implications are provided in this paper,which is useful to establish the new regional industrial policies for both central and local government.

참고문헌 (19)

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  6. Policy for Balanced National Development in Korea, "Kim, H", IER, KIET, ~ (2005)
  7. Migration Analysis and Policies of Advanced Human Resources in Korea, "Kim, D", KIET, ~, pp.Research Paper No.544 (2009)
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  9. Spatial Changes and Regional Development Policy in Korea, "Kim, Y", Chungnam Development Institute, ~ (2009)
  10. Evaluation and Tasks for Regional Industrial Policy in Korea, "Kim. Y", KIET, ~, pp.Research Paper No.527 (2007)
  11. Analysis and Evaluation of Regional Development Projects, "Lee, D", KRIHS, ~ (1998)
  12. Second Stage Plan of 4 Regional Industrial Promotion Projects, "Ministry of Commerce, Industry and Energy", ~ (2004)
  13. OECD, "Innovative Clusters: Drivers of National Innovation Systems" (2001), OECD
  14. Porter, M. E, "Location, Competition, and Economic Development: Local Clusters in a Global Economy", Economic Development Quarterly, 14(1), pp.15~34 (2000)
  15. Korea’s Regional Strategic Industry, "Presidential Committee on Balanced National Development", ~ (2004)
  16. Regional Development Policy Annual Report, "Presidential Committee on Balanced National Development", ~ (2008)
  17. 김영표, "The Korean Economy: Six decades of growth and development" (2010), KDI
  18. Seong, K, "Balanced National Development Policy of the Participatory Government", Balanced National Development Policy in Korea: Theory and Practice (2007), Presidential Committee on Balanced National Development
  19. Worldbank, "Reshaping Economic Geography" (2009), Worldbank

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