Economic Analysis of the 6th Industrialization Policy in Rural Areas: Case of South Korea

Abstract

This study analyzes the performance of Korea’s Sixth Industrialization Policy in rural areas and provides policy implications. Utilizing input-output tables from the Bank of Korea and applying a Computable General Equilibrium (CGE) model, various policy scenarios were simulated. The results indicate that increases in labor demand and government consumption expenditure significantly impact both primary and tertiary sectors. A comparative analysis of different industrial linkage types—primary only, primary-secondary, primary-tertiary, and full three-sector integration—reveals that injecting subsidies or capital into the primary sector alone yields limited economic effects. In contrast, linkages involving secondary and/or tertiary sectors generate greater policy impacts. These findings highlight the need to shift from primary-sector-focused support toward multidimensional strategies that promote cross-sectoral linkages. Future rural policies should be designed to foster integrated value chains rather than relying solely on direct support for agriculture.