Korea looks to balance its development

Relocation of public agencies, innovative cities lure people to the provinces

The following is the last in a series of articles on Sejong City, a new multifunctional administrative city that was launched on July 1, and other “innovative cities.” ― Ed.


Public agencies are moving out of Seoul and its surrounding Gyeonggi Province to so-called “innovative cities” and other less crowded regions throughout the nation.

The term innovative city refers to “future-oriented” towns in South Korea “established as a hub for regional growth backed by the relocation project,” according to the Public Agencies Relocation Office under the Ministry of Land, Transport and Maritime Affairs.

In step with the establishment of Sejong City, the government aims to lessen concentration in the capital and achieve geographically balanced development in the nation by moving public agencies in other regions.

“The relocation of public agencies outside the capital region will promote region-specific development and facilitate regional economic development combined with the construction of innovative cities,” the office stated on its website. 

Relocation of public agencies

A total of 147 public agencies will move out of Seoul and move into either Sejong City, innovative cities or other regions. Among those, 121 agencies need new buildings and the rest will rent, according to the Public Agency Relocation Office.

For the 121 agencies in need of new buildings, 74 facilities are under construction and nine are already completed, including Korea Institute for Special Education in Asan, South Chungcheong Province; Korea Food and Drug Administration and four of its affiliates in Osong, North Chungcheong Province; Customs Border Control Training Center in Cheonan, South Chungcheong Province; and Korea Radioactive Waste Management Corporation in Gyeongju, North Gyeongsang Province. The rest will start construction within the year.

The Public Agency Relocation Office expects that the concentration ratio of the central administrative agencies in the capital region will decrease from 85 percent to 35 percent when the relocation project goes into effect. Tax revenues of local areas are also expected to increase thanks to the relocation project, and will thereby contribute to the expansion of local finance.

To deal with expected backlash about having to leave the capital, the government has prepared measures such as covering losses that occur when disposing of or purchasing office buildings and supporting moving expenses for employees, as well as providing long-term housing loans with low interest rates.

Innovative cities

The “innovative cities” are livening up as public agencies move in. A total of 113 public agencies will settle in the cities including Busan, Daegu, Gwangju, Ulsan and others in Gangwon Province, North Chungcheong Province, North Jeolla Province, North Gyeongsang Province, South Chungcheong Province and Jeju Island ― according to the plan.

Starting in Gangwon Province in March, the Ministry of Land, Transport and Maritime Affairs began a touring recruiting drive. More than 1,500 locals in Gangwon participated in a session on hiring 923 employees for the eight public agencies that will move to the region.

Each innovative city is based on a theme.

Busan, for example, will be the hub for maritime affairs and fisheries by hosting related agencies like Korea Institute of Ocean Science and Technology. It will also become a central city for the film industry, taking into account its already acclaimed Busan International Film Festival, by having film and game-related agencies like Korea Film Council.

Based on its abundant natural resources, Gangwon Province will host a tourism, health and resource development cluster. Tourism-related agencies like Korea Tourism Organization will also move to the region where the PyongChang Winter Olympics will be held in 2018.

Gwangju-Naju, where Korea Electric Power Corp. will relocate, and South Jeolla Province, which will host IT Industry Function Group, will become hubs of high-tech futuristic industries. North Chungcheong Province, where Techno Valley developed in the 1970s, will also focus on the IT industry. South Chungcheong Province, where Sejong City is located, will become the nation’s administrative center with 46 public agencies, and Jeju will develop as a free international city leading international exchanges and educational training. Agencies like Korea Foundation will move to the island.

The innovative cities are expected to house some 20,000 to 50,000 residents gradually by 2020 when the cities move into a second stage, complete with relocation of industries, academia and research institutions.

Korea Land and Housing Corporation and other regional corporations have been laying the ground work for the innovative cities and about 80 percent of the sites are cleared, according to the Public Agency Relocation Office. About 70 to 80 percent of the basic infrastructure such as water facilities has been completed as well, funded by the government.

Corporate cities

The plan to transform some cities and regions into corporate cities has been pushed to revitalize provincial economies by drawing investment from companies.

Local governments in host cities have promised to offer cheaper land and tax incentives to companies that make an investment in their regions.

A total six cities and regions were selected as corporate cities. But Muju in North Jeolla Province decided to withdraw from the plan. In Muan, South Jeolla Province, construction has been suspended due to lack of investment. The other selected corporate cities are Chungju in North Chungcheong Province, Wonju in Gangwon Province, Taean in South Chungcheong Province and Yeongam-Haenam in South Jeolla Province.

By Park Min-young  (claire@heraldcorp.com)