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Differentiated economic zones to lead national development in South Korea
Differentiated economic zones to lead national development in South Korea
Seven regional economic zones, Seashore in the Southeast Zone, and Songdo Technopark in the Seoul Metropolitan Zone.
With the aims of developing leading industries, a high-end workforce and social infrastructures for different regions in the country, the government is carrying out the so-called "5+2 regional development plan."
"Five plus two" refers to five larger economic zones and two other special economic zones, which the government designated in 2009 for region-specific economic and industrial development. The special plan will be pursued for five years until 2013, when the government expects there will be greater regional independence and quality of life of their people. One hundred trillion won of government funds have been allotted for the project.
Unlike the traditional national development schemes that have centered around seven cities (Seoul, Incheon, Daegu, Daejeon, Gwangju, Busan and Ulsan) and nine provinces (Gyeonggi, Gangwon, Jeju, and South and North Chungcheong, Gyeongsang and Jeolla Provinces), the new plan will proceed based on seven regional economic zones, which are segmented according to each area's industrial characteristics.
The population of the two special zones, Gangwon and Jeju, is less than 5 million and those of the five other zones are over that number.
Seoul Metropolitan Zone is armed with an advanced IT workforce in Seoul, high-end manufacturing technology in the surrounding Gyeonggi Province and the logistics capacity of the western port city of Incheon. Over 90 percent of the top 100 South Korean companies' headquarters are located in this zone. Therefore, it will be developed to be the global business hub of the Northeast Asian region, which is expected to account for a third of global GDP in the future.
Chungcheong Zone, south of the Metropolitan Zone, is not only close to the capital city, but is also located in the middle of the west coast, with Dangjin Port and Cheongju International Airport making for easy access to China and further west. This zone, having within it Daeduk Science Town, the South Korean Advanced Institute of Science and Technology (KAIST), and Osong Bio-Health Science Technopolis (OBST), will be developed as the center for national IT and bio industries.
Honam Zone, normally known among non-South Koreans as the Jeolla Provinces, is below Chungcheong Zone and on the southwestern end of the South Korean Peninsula. This region enjoys the largest amount of sunshine in the country, making it a great candidate to set up solar power plants. A grand wind power plant complex linking the counties of Sinan, Yeonggwang and Boseong will be built by 2012. With other promising businesses including the manufacture of electric cars, the Honam Zone is emerging as the eco-friendly business center of the nation.
The southernmost zone of Jeju hopes to become one of the best free international cities in Asia. The self-governing province, which was designated as Jeju Free International City in 2002, possesses a variety of cultural assets including the UNESCO World Heritage volcanic island itself and lava tubes. It also strives to become an international education city concluding MOUs with foreign schools, such as Saint Albans High School in Washington, D.C., St. George School in Newport, Rhode Island and Canada's Branksome Hall and the United Kingdom's North London Collegiate School to invite their branches to set up on the island.
Southeast Zone, encompassing Busan and Ulsan in South Gyeongsang Province, will become a logistics center in the Asia-Pacific region. The zone also has Busan's international business and financial centers, Ulsan's car and shipbuilding businesses and many other centers for robotics, marine plant construction, and medical industries.
Daegu-Gyeongsang Zone, in the middle of the east coast of the Peninsula, is engaged in the development of green energy and IT fusion businesses. If the development proceeds as well as planned, over 4,500 new jobs will be created while the zone's total exports will amount to US$1 billion by the year's end, according to the government.
Lastly, Gangwon Zone in the northeast of the country includes the cities of Chuncheon, Wonju and Gangneung. This zone is home to over 100 pharmaceuticals companies and 28 medical appliance manufacturers, and is also famous for its many mountain resorts in PyeongChang and Taebaek. The City of PyeongChang is devoting its energies to the development of winter sports infrastructure in its attempt to host the 2018 Winter Olympics.
