Reglonal Development

Thanks to the relocation of public agencies to local areas, the Seoul Metropolitan area will achieve qualitative development instead of quantitative development while the local areas changing itself as a place with talented workforces and booming economy.

Contribute to Stabilized Population in the Capital Region

Over concentration in the capital city will be decentralized achieving a stabilized population in the city due to the movement of people who work in the relocated public agencies.

The concentration ratio of the central administrative agencies in the capital region will decrease from 85% to 35% when the relocation project goes into effect.

Before and After of Implementing the Relocation Project

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※ The concentration ratio of the central administrative agencies in the capital region will decrease from 85% to 35% when the re-location project goes inte effect

Enhance Innovation Capacity of Local Areas

Relocation of research and educational training institutions to localities will complement the research function of local universities enabling to establish a regional innovative system based upon industry, academia and research institution collaboration.

Induce Qualitative Advancement of Education in Local Areas

Increase the number of graduates from local universities who are employed in the relocated public agencies and thereby contribute to the advancement of educational quality of universities, research and educational institutions.

Increase Local Tax Revenue and Facilitate Local Economy

  • Tax revenues of local areas will increase thanks to the relocation project and thereby contribute to the expansion of local finance.
    • Local taxes paid by 175 public agencies that are going to be transferred to local areas amount to 226.8 billion won during 2002 ~ 2004. (Annual Average of 75.6 billion won)
  • Contribute to region’s industry development and specialization by linking with region-specific industry.
  • Expects to facilitate relocation of head offices of enterprises in the capital region to local areas.
    • Research on Problems of Relocating Head Offices of Enterprises to Localities
      (Korea Research Institute for Human Settlements, 2000)
    • Concentration ratio of the central administrative agencies in the capital region: 49.35%
      Concentration ratio of various kinds of information in the capital region: 28.8%

Korea Research Institute for Human Settlements (2004년)

  • Expects to create about 133,000 jobs when 32,000 staffs of 180 public agencies move to local areas.
    (including jobs of relevant industries)
  • Effects on production inducement and value added inducement are expected be about 9.3 trillion won
    and 4 trillion won respectively per year.