3 .6
The Study for Comprehensive Industrial Location Plan
산업입지 공급계획 수립을 위한 연구
Young-Chul Park, Chul-Soon Chang, Seung-Han Ryu, Byung-Il Yun, and Young-Sik Lim May 2002․2 vols.(Main Report 489 pages, Summary Report 50 pages)․Korean
This study is composed with three parts. The first part is basic research for the 2nd comprehensive industrial location plan (2002-2011) according to the "Industrial Location and Development Act". The second part handles the activation of "Urban High-tech Industrial Park" that has been newly introduced in these days. The third part is the policy alternatives for medium and long-term issues of the industrial location in Korea.
The first part includes the assesment of problems of industrial location policy, the analysis of trend and characteristics of industrial location, and the review of industrial location policies of foreign countries. And according to the above analysis, basic directions and major strategies were induced. On the basis of those basic directions and major strategies, the 2nd comprehensive industrial location plan was established.
The Korean industrial location policy for the past few decades has contributed to the economic growth and regional development, but there are some problems to solve. The industrial location policy has been changed with relation to industrial policy. In the future, the new factors of industrial location, such as technological innovation, growth of information society, increasement of medium and small sized companies, establishment of localization, globalization of economic activities, and renewal of industrial parks, will be appeared.
Technological innovation and the advance of information society will bring the high technology industries. These industries prefer to being located in urban areas that contain knowledge infrastructure such as information network, research institutes, high quality manpower and social capital. Change from high economic growth to low economic growth will be settled. The stabilized economic growth will lead to the change
from increase in quantity to increase in quality. The interaction between South and North Korea will increase, and North Korea may be a target for the investigation of industrial location.
Basic directions of the industrial location development are as follows.
First, for the demand-driven industrial infrastructure, the scale and location of new sites should be determined by the present and future needs of occupying enterprises.
The government should place an emphasis on the development of industrial locations for flexible manufacturing.
Secondly, according to the importance of knowledge-based industry, the government should create a fertile environment to attract such industries.
Thirdly, the government should identify regions experiencing high unemployment and economic decline and then should develop enterprise zones with appropriate support.
Fourthly, information networks should be established to promote exchange among organizations related to industrial policy.
The strategies for industrial location estates are as follows.
Firstly, in order to establish foundation for knowledge-based industries, specialized technology parks must be supplied sufficiently and a comprehensive policy for promoting the activity of high-tech industries should be provided.
Secondly, multi-function industrial estates, which can accommodate various and different industries, should be constructed.
Thirdly, FDI influences the national economy through the transfer and spread of technology, a positive international account, the increase of employment, the improvement of industrial structure and strength of economic power. In this context, in order to attract foreign capital, the government should construct strategic facilities such as free port zones and foreign investment zones as a foundation for new open economy.
Fourthly, the enlargement of partnership between South and North Korea will result in the change of pattern and condition of industrial location and will lead to the enlargement of industrial parks for domestic demand consumption. Industrial location
policy should consider the change significantly.
In the future, confronting international competitiveness, the government should encourage the development of major regional cities, so as to share the management and production functions presently concentrated in the Capital Region. At the same time, the role of metropolitan areas for supply of information, research, technology innovation and high quality manpower should be promoted. Next, industrial parks that are no longer competitive should be revamped with a focus on value added concepts. The government must construct a network of new industrial parks to attract and support new industries.
Finally, The environmental concern will be more important than ever before. The environment-friendly policy in construction of industrial parks must be considered.
In this context, the 2nd industrial location plan was built up.
The 2nd comprehensive industrial location plan considered the change of conditions of industrial location policy. During the 2nd plan period (2002-2011), the 102.3-111.6km2 of industrial land will be supplied. It means that 10.2-11.2km2 will be annually supplied.
The regional distribution of supply should consider balanced spatial development.
Therefore, the portion of the Capital Region would be decreased. As for the type of industrial location, the industrial land will be supplied focusing on industrial parks.
The industrial site for knowledge-based industries will be intensively supplied. The portion of industrial location for knowledge-based industries will take 55.5% of all of the supplied industrial lands. Therefore, the portion of industrial location for knowledge-based industries will be increased 25.8% to 30.4%.
On the other hand, in order to enhance executive functions of this plan, it is desirable to promote it as a comprehensive plan and establish a 5-year evaluation system and a linked supporting system. Some of the policy alternatives to reorganize industrial location policy were suggested as well.
In the 2nd part, the implementation of institutional system for urban high-tech industrial parks is suggested. It includes current situations and supporting systems of knowledge-based industries and characteristics of the institutional system and policies of knowledge-based industries of foreign countries. In the context of comprehensive considerations on the above results, basic directions and major strategies for activation of
knowledge-based industries were suggested.
The third part suggests medium to long-term issues for industrial location policy, for example, innovation of technology and industrial location, policy alternatives of industrial location policy for outbound FDI, policy directions for the development in foreign countries, the development strategies for environment-friendly industrial location, and industrial location policy for enlargement of connection of two Koreas.
