S u m m a r ie s
of Research Reports 2001
KRIHS
Summaries of KRIHS Research Reports 2001
Copyright 2002 ⓒ Korea Research Institute for Human Settlements All Rights Reserved.
Printed and bound in the Republic of Korea First Published September 2002
Catalogingin-Publication Data
Summaries of KRIHS Research Reports 2001 /
edited by the Korea Research Institute for Human Settlements - Anyang : Korean Research Institute for Human Settlements, 2002 p. 26cm.
includes indices
ISBN 89-8182-194-1
Published by the Korea Research Institute for Human Settlements,
1591-6 Gwanyang-dong, Dongan-gu, Anyang-si, Gyeonggi-do, 431-712, Korea Tel. +82-31-380-0114 Fax. +82-31-380-0470
http://www.krihs.re.kr
Note
The 108 summaries of research reports listed in this book in categorized into 11 research areas as follows;
Categories No. of
summaries
1 National Planning and Development 10
2 Environment and Resources Planning 13
3 Regional Planning and Analysis 12
4 Urban Planning and Design 13
5 Land Research 12
6 Housing Research 9
7 SOC 12
8 Construction Economics Research 8
9 GIS 10
10 Private Infrastructure Investment 3
11 Northeast Asia Research 6
Titles of research reports are listed in alphabetical order and bibliographical information and details of research participants are also listed for each research report.
Contents
1. National Planning and Development
1.1 Comparison of Regional Economies and Policies to Promote Regional Economic Development∙15
1.2 Comprehensive Development Plan for Ganghwa County∙17
1.3 Evaluation and Improvement Measures for the Strategic Projects for Balanced Regional Development∙19
1.4 Implementation Model of the Intergovernmental Agreement System for Regional Development∙21
1.5 Improvement Measures for the National Territorial Survey∙23
1.6 Regional Development Support System for Balanced National Development:
Policy Agenda and Future Directions∙26
1.7 A Study on Free Trade Zones as New Open Territorial Poles for the Glocalization Era∙30
1.8 A Study on Indicators for the Selection of Development Promotion Areas∙32
1.9 A Study on the Enactment of the Basic Law for National Territorial Development(Tentative Name)∙37
1.10 Vision 2011 and Strategies for Balanced Regional Development∙38
2. Environment and Resources Planning
2.1 2021 Jeju City Master Plan∙43
2.2 The Anyang River Restoration Project∙46
2.3 GIS Applications for Natural Resources Conservation in the Jeju Island∙49 2.4 A New Deal for Large-scale Public Construction Projects in Korea:
Guidance to Pre-Environmental Appraisal(Pre-EA)∙50 2.5 Restoration and Improvement of the Mankyung River∙52
2.6 Strategies for Environment-Friendly National Territorial Development∙54 2.7 Strategies for the Efficient Management of the Grand Baekdu
Mountains(Baekdudaegan)∙57
2.8 The Study of the Designated Tourist Site Development System in Korea∙60 2.9 A Study on the Establishment of Models & Criteria for Sustainable Coastal
Management∙62
2.10 A Study on the Feasibility of Private Participation in the Water Resource Sector∙64
2.11 A Study on Water Resources Management to Solve the Water Stress∙66 2.12 A Study to Enhance the Accuracy of the Economic Feasibility Analysis of
Water Control Plan∙67
2.13 Water Demand Analysis for Rational Water Resources Policies∙69
3. Regional Planning and Analysis
3.1 Development of Regional Input-Output Analysis Model(Ⅰ)∙73
3.2 Effectiveness of Development Charges on Large Buildings in the Capital Region∙75
3.3 Establishment of Lowest Price Bidding System in Public Construction Projects∙76
3.4 Future Directions Toward the Capital Region Control∙78
3.5 Impact Analysis Techniques for Regional Development Projects and their Applications∙80
3.6 Industrial Agglomerations and Regional Clusters in an Information Era∙83 3.7 IT Industry and Regional Restructuring: A Case of Textile Industry in
Daegu, Korea∙87
3.8 Master Plan and Feasibility Study for the Development of Naepo Cultural Special Area∙90
3.9 Measures to Boost the Construction Industry in Local Areas∙93
3.10 Model Technopark Project and Building the Regional Innovation System in Korea∙95
3.11 The Second-Stage Regulatory Reform Proposal Informatization in Construction Area∙98
3.12 Socio-Economic Effects of Concentration in the Capital Region of Korea∙99
4. Urban Planning and Design
4.1 Concept and Application of Special District Plan∙103
4.2 Density Control and Urban Growth Management System∙105 4.3 Directions of Building Urban Planning Information System∙108 4.4 Improvement Measures of Industrial Location Controls in the Capital
Region∙110
4.5 Industrial Estate Plan in Goyang City∙111 4.6 Master Plan for Gyoha District in Paju City∙113 4.7 Operational Measures of Detailed District Planning∙115 4.8 Quality of Life in Cities∙116
4.9 Readjustment of Urban Design Guidelines for Jungdong New Town in Bucheon∙118
4.10 The Reshaping Built-up Residential Areas for the Improvement of Urban Environment∙121
4.11 Spatial Restructuring of Industrial Zone in Large Metropolitan Areas∙124 4.12 Strategies to Establish City Identity in an Era of Localization∙126
4.13 Structural Analysis of Urban Development Cost∙130
5. Land Research
5.1 Conceptual Analysis and Practical Implementation of Development Permit System∙135
5.2 Directions to Building a Sustainable Territorial Development System∙137 5.3 Directions of Land Policy in an Era of Information in the 21st
Century∙138
5.4 Environmental Conservation and Management of Land(A Handbook of Legislation Pertaining to National Land, Volume 6)∙140
5.5 Land Suitability Assessment System for the Effective Management of National Land Resources∙141
5.6 Making New Street Addresses in Daejeon Metropolis∙144
5.7 New Policy Directions to the Land Use Zoning with the Reform of the National Land Use System∙146
5.8 A Study on the Application and Effect of the Street Address Building Numbers∙148
5.9 A Study on the China's Land Policy After the Reform∙151
5.10 A Study on the Comprehensive Plan of the Northwest Yongin Area∙152 5.11 A Study on the Establishment of Cost-sharing Criteria for Road
Improvement Works to Facilitate Development Projects∙156
5.12 A Study on the Introduction of Development Impact Fee System for Public Facilities in New Land-Use System∙158
6. Housing Research
6.1 Application of Financial Engineering Method to Real Estate∙163 6.2 Diagnosis on the Housing Culture and Policy Implications∙165 6.3 Housing Policy for Low-Income Households∙167
6.4 The Issues and Policies on Housing Rehabilitation∙168
6.5 Minimum Housing Standard, Tenant's Ability to Pay Rents and Rent Subsidy∙170
6.6 Real Estate Finance in Korea: Market Analysis and Institutional Promotions∙172
6.7 A Study on the Integration of the Korea Land Corporation and the Korea National Housing Corporation∙174
6.8 Urban Squatter Policies: The Cases of Korea and U.K.∙176 6.9 VAR Model in Forecasting Land and Housing Markets∙179
7. SOC
7.1 Comprehensive Development Plan(Phase 2) for Logistics Centers∙183 7.2 Comprehensive Transportation Planning for Five Metropolitan Areas∙185 7.3 Development and Application of an Evaluation Model for Infrastructure
Investment(Phase 2)∙188
7.4 The Development of Models for Real Time Traffic Information Analysis∙190
7.5 Facilitation of the Efficient Utilization of Public Facilities through Road Facility Improvement(The First Year Report)∙192
7.6 Measures for the Development of the Logistics Industry in the Era of Digital Economy∙194
7.7 National ITS Standardization Program Phase 3∙195
7.8 Pre-Feasibility Study on the Expansion of Three National Highway Sections∙198
7.9 Specifications to Define Road Sections on National Roads∙201 7.10 A Study on the Application and Development of the National ITS
Architecture∙202
7.11 A Study on the Integrated Management of Logistics Facilities∙205 7.12 A Study on the Travel Behavior of the Aged∙206
8. Construction Economics Research
8.1 Measures to Improve the Production System in the Construction Industry∙211
8.2 The Restructuring Strategy for the Construction Supervising Industry∙213 8.3 Strategies for Enhancing Productivity by Adopting Information Technology
in the Construction Industry∙215
8.4 Structural Changes of and Outlooks for the Construction Industry∙216 8.5 A Study on the Integration of Construction Industrial Databases∙218 8.6 A Study on the LCC Application for the Systematic Safety Management of
Infrastructure and Public Facilities∙220
8.7 A Study on the Management of Construction Projects∙221 8.8 A Study on the Performance Guarantee∙224
9. GIS
9.1 Cyber Territory Construction in an Digital Age∙227
9.2 Development of a Nationwide Geographic Information Dissemination Network∙232
9.3 Land Use Interpretation Using the High Resolution Satellite Imagery of Kaeseong, North Korea∙234
9.4 Strategies for the Promotion of Geographic Information System Industries∙238
9.5 A Study of Making Computerized Underground Facility Maps∙240
9.6 A Study on Spread Construction for Land Management Information Systems 2000∙242
9.7 A Study on the Application of KOMPSAT-2 Imagery∙247
9.8 A Study on the Development of a Reusable Application Design for Underground Facilities Management∙248
9.9 The Study on the Efficiency Evaluation of GIS Project and its Application∙250
9.10 A Study on the Establishment of a Mine GIS Master Plan & the Development of a Pilot System∙252
10. Private Infrastructure Investment
10.1 Rate of Return of PPI Projects∙259
10.2 A Study on Improvement Measures of Government Support System for PPI Projects∙262
10.3 A Study on the Estimation of Operating and Management Cost in PPI projects: with a Focus on Maintenance Cost∙265
11. Northeast Asia Research
11.1 Building a New Foundation for Inter-Korean Economic Cooperation∙271 11.2 Building Infrastructure for the Facilitation of Economic Cooperation in
Northeast Asia in the 21st Century: Focusing on Land Transport Linkages between Korea and China∙276
11.3 Special Zone Development Strategies in North Korea's West Coast Areas for Inter-Korea Economic Cooperation∙280
11.4 Strategies and Measures for Building a Localized Network of Free Zones in the Yellow Sea Sub-Region∙282
11.5 A Study on Measures for Military Installation Protection Areas and Individual Military Installations(Gangwondo / Gyeonggido)∙286
11.6 Urban Development in Transition Economies and its Implications for North Korea∙289
Appendix
Title index∙293
Korean Title Index∙299 Author Index∙304
1 National Planning
and
Development
1 .1
Comparison of Regional Economies and Policies to Promote Regional Economic Development
지방경제 실태와 활성화 방안(RR 2001-6)
Yang-Ho Park, Hye-Chul Yoon, Moon-Won Lee, and Chang-Hyun Kim October 2001․407 pages․Korean
Economic imbalance between regions has been one of the key issues in Korea.
Especially it is so after the foreign exchange and economic crisis that occurred at the end of 1997. Above all things, the socioeconomic disparity between the capital region and the rest of the country is the most serious problem in inter-regional imbalance. The study aims at investigating and analyzing the actual status of regional economy and suggesting appropriate policies and programs to promote regional economic development. This study is composed of three parts: the general comparison of regional economies, the comparison of economic structures by sector, and policy suggestions.
Major findings from the general comparison of regional economies are as follows.
First, the gap of gross economic capacity between the capital region and provincial regions has been increasing since the 1997 financial crisis. It is principally because of the concentration of high income opportunities, financial activities, and sound financing, etc.
in the capital region. The gross economic capacity (GEC) is the analytic tool that represents each region's levels in terms of production, employment, banking service, public finance, export, etc.
Second, the GEC of Chungcheong province, which includes Daejeon metropolis, Chungcheongbuk-do, and Chungcheongnam-do adjacent to the capital region, has been increasing, whereas those of Yeongnam region and Honam region in the southern part of the country have been decreasing since the 1997 financial crisis. Likewise, the GECs of metropolitan cities has fallen as service industries such as banking and distribution shrank. On the contrary, the GECs of cities and counties have been growing due to the increase in manufacturing production and export.
Third, the pace of economic recovery varies with region. In this study, regional economic recovery index (RERI) is used as an analytic tool to compare the economic status between the 2000's and 1997 in terms of manufacturing production, unemployment, bill exchanges, construction, and sales into account. According to the results of RERI analysis, the RERI of the capital region is higher than that of the provincial regions. In the provincial regions the RERI of Chungcheong region is highest compared with other regions'. The results of the GEC and RERI analysis show that the Seoul metropolitan area plays a very important role in the Korean economy and thus the economic subordination of the provincial regions to the Seoul metropolitan region is becoming serious. It can be derived from the above analyses that the Seoul metropolitan region exerts economic influences to the Chungcheong region.
Major findings from the comparisons of economic structures by sector are as follows.
First, many local financial institutions, which are small-scale and in a weak position, went bankrupt in the course of the structural reforms of financial sector. It resulted in the economic recession in the provincial regions. Second, the more industries of high growth potential the region has, the higher growth level and growth potential it has.
Most provincial regions have not established industries that will be an engine to lead their economies, especially provincial metropolitan cities. Third, as for the distribution sector, the entry of large-sized modern department stores and discount stores took over local traditional markets, thus shrinking locally-rooted distribution activities. Fourth, the economic recession increases unemployment in the provincial regions. Very limited job opportunities for college and university graduates in the provincial regions are one of serious socioeconomic issues that remain to be solved. The study suggests short-term and long-term policy implications to boost the economies of provincial regions.
Short-term strategies and programs are: to increase the proportion of credit allocation to provincial regions; to introduce a quota system to distribute government funds to small and medium-sized enterprises; to preferentially invest government funds and budget into local economic development projects; to allocate part of budget for public enterprises privatization for local economic development projects; to develop a program to revive local construction industries; to build local employment networks to link firms to
universities; to invest the profits of large-sized discount stores to pool a fund for modernizing local distribution systems; etc.
Long-term policies suggested in this study are: the improvement of local banking systems through the modernization of credit-generating mechanism and the development of new financing techniques; the enhancement of local industrial competitiveness through the formation of strategic industrial complex and its linkage with regional innovation system; the modernization of local distribution industry through restructuring of traditional markets, and the construction of multi-regional distribution and logistics networks; the formation of local employment system linking firms to universities for high-quality human resources to settle down in provincial regions; the decentralization of head offices and central government departments; the nurturing of strategic centers for international businesses; etc. The study suggests that two systems should be established to smoothly implement the policies and programs mentioned above: one is the building of regional statistical systems which will include data about GRDP (gross regional domestic product), income level of primary self-governing bodies, etc., and another is a unified institutional system which will support these policies and programs by providing one stop service for legal and financial matters.
1 .2
Comprehensive Development Plan for Ganghwa County
강화 종합발전계획
Ki-Chul Oum and Sung-Soo Hwang January 2001․829 pages․Korean
1. The background of the plan
The Ganghwa County, which is the third largest island in Korea, belongs to the Incheon Metropolis and has a population of 67,000 and an area of 410.7km2. It has been
designated as one of the seven cultural districts in Korea according to "The Fourth Comprehensive National Territorial Plan (2000-2020)." As Ganghwa is directly facing the northern borderline of the country, it has been lagging behind other regions in economic terms for the last few decades. Recently, however, its historical heritage and natural tourism resources such as mud flat are receiving nationwide attention in the anticipation of tourism development. Several plans have been formulated for the development of Ganghwa such as "Incheon Urban Master Plan", "Incheon 2020 Dream", "Ganghwa Long-term Comprehensive Development Plan(1995-2004) & (1999-2010)' and 'The Sustainable Development Plan for Ganghwa County." Nonetheless, there has been no effort to consolidate these plans. In this context, the plan seeks ways for consolidate the existing plans and for achieving economic and cultural development in the region.
2. The characteristics of the plan
The plan is a master plan that provides guidelines for regional development with due reference to regulations and laws. It covers the whole Ganghwa Island consisting of one town and twelve villages with a 20-year span from 2001 to 2020.
3. The main contents of the plan
The plan touches upon the following areas:
1) Spatial structure of Ganghwa and its characteristics 2) Potentials of the cultural resources in Ganghwa county 3) Historical and cultural resources
4) Blueprint of Ganghwa in the 21th century
5) Restructuring of a spatial system and a master plan for Ganghwa county 6) Complementing infrastructures
7) Zoning for development and conservation 8) Administrative and financing plan
4. Investment projects
The plan also proposes 278 investment projects worthy of 9,293.5 billion won as
follows:
1) Culture and tourist section: 80 projects (1,635.8 billion won) 2) Living environment section: 76 projects (418.4 billion won) 3) Economy and industry section: 44 projects (719 billion won)
4) Education and social welfare section: 42 projects (1,979.4 billion won) 5) Social Overhead Capital: 36 projects (4,540.8 billion won)
1 .3
Evaluation and Improvement Measures for the Strategic Projects for Balanced Regional Development
국토균형발전을 위한 전략사업의 추진평가와 개선방안(RR 2001-5)
Yang-Ho Park, Jong-Chul Choi, Chang-Hyun Kim, and Jin-Hong Yang December 2001․275 pages․Korean
Although lots of plans were made and implemented to achieve balanced regional development in Korea as evidenced in the Comprehensive National Territorial Plan and the Area-wide Development Plan, no study has been carried out to diagnose their effects in comprehensive and systemic manner and to refer to them for future regional development projects. In this context, this study is aiming at evaluating the major strategic projects that started in the 1990's in anticipation for balanced regional development, drawing causal factors from the result of evaluation, and suggesting policy recommendations. This study consists of three parts: model building, case study, and policy implication.
In the model-building part, an analytical model is devised to derive causal factors from case studies. The model (named IRRE model) is composed of four factors; internal factor(I), relation factor(R), resource factor(R), and external factor(E). Then many elements
are assembled into each factor. The internal factor includes the details of a project, leadership of major actors and concerned central/local governments, project locations, and so forth. The relation factor includes the degree of conflicts among concerned authorities and interested parties/persons, prompt conflict resolution, etc. The resource factor includes financial affairs and incentives for the private sector. The external factor includes geographical features, SOC, political and economic affairs, etc.
In the case study part, the implementation processes of major projects for balanced regional development are analyzed according to the above-mentioned model. And then factors responsible for the success or failure of the projects are analyzed, which can be summarized as follows: first, the demand estimation is the most important among the internal factors.; second, the key element in the relation factors is the coordination and conflict management among main actors and authorities.; third, the allotment and the assistance of the central government budget is important among the resources factors.;
fourth, the key element is the enthusiasm for project expressed by local residents, merchants, industrialists, etc. as for the external factors.; and fifth, the four factors derived from the IRRE model play a different role according to the project stages such as the initial stage, site-construction stage, operation stage, and settlement stage. In the initial stage that entails lots of difficulties, the internal/relation/external factors are considered more important, while in the site-construction stage the resource factor and in the operation stage the resource/external factors.
The result of the study suggests four policy recommendations as follows: first, problems arise from the separation of planning and implementation and neglecting feasibility study.; second, institutional devices are lacking to systematically evaluate the implementation states and refer to the result of evaluation for future projects.; third, the processes of survey, permission and decision making for plans should be carried out more carefully.; and fourth, the haphazard manner in preparing an institutional system should be corrected. Also suggested in the study are the introduction of an evaluation system for project feasibility; stable financing; the introduction of reconciliation system for concerned parties; empowering local governments in project implementation; regular evaluation and reporting on strategic projects; the introduction of the contract system
among main actors participating in the projects; the introduction of project recall system;
etc.
1 .4
Implementation Model of the Intergovernmental Agreement System for Regional Development
지역발전협약제도 실천모형 정립 방안 Yang-Ho Park and Won-Sup Lee December 2001․400 pages․Korean
This study is aiming at developing implementation model of the intergovernmental agreement system for regional development which is adopted in the 4th National Territorial Comprehensive Plan (2000-2020). The study suggests detailed measures for the implementation of the intergovernmental agreement system. The study consists of three major parts. The first part examines the actual conditions of intergovernmental relationships in public project investments. The second part investigates the experiences of foreign countries, especially exemplifying France that has successfully employed the intergovernmental cooperation system since the early 1980s. The third part elaborates on the details of each stage from the preparation of guidelines to the assessment of the system to examine the possibility of adopting the intergovernmental agreement system to the Korean context.
The intergovernmental fiscal cooperation system established between the central and local governments lacks the mechanism to deal with regional development matters, especially in depressed regions. Excessively segmented divisions and restricted grants-in-aid from the central government are major obstacles that prevent local governments from promote strategic projects for regional development. Other problems include the inability to reflect regional characteristics such as economic and financial
conditions for the redistribution of financial resources, the lack of standards for the share of public expenses between central and local governments, and the dominance of the central government.
Taking into account the local autonomy system of Korea, an implementation model of the intergovernmental agreement system fit to the Korean situation is established. The model consisted of a series of key elements, including the scope and contents of proposed projects, the duration of the agreement, the share of expenses, the negotiation and deliberation of the proposal, signing, budgeting, and evaluation.
The study claims the adoption of the intergovernmental agreement system for those projects that contribute to enhancing regional competitiveness, expanding SOC and developing regional resources, specifically those concerned with roads, industries, technology innovation centers, tourism and culture, river basin management, and urban housing redevelopment. The study emphasizes on taking a gradual approach to prevent potential side effects of the new system. For example, it is better to select small-scale projects rather than bigger ones to avoid or minimize possible problems that may arise from the lack of experience. In sum, the system needs to be implemented at full length after the accumulation of enough experiences for an extended period of time. The intergovernmental agreement constitutes the joint planning and the share of project investment between the central government and concerned local governments. The agreement will be signed by the secretary of a responsible department of the central government and the mayor or governor of a local government.
Fiscal and legal arrangements are essential elements for the successful introduction of the intergovernmental agreement system to Korea. A system to associate agreed projects to the annual budget both at the central and local governments should be established.
The Continuous Budget System for multiple year projects such as the establishment of transportation networks can be employed to secure a budget for the new intergovernmental agreement system. Separate and independent fiscal resources such as funds or special accounts for the regional development agreement system also needs to be considered. The share of project investment should be flexibly decided considering the level of regional development and financial difficulties of local governments. The
baseline of the budget sharing is 50 to 50 between the central government and local government but the share of the central government can be increased up to 70 percents for depressed regions and decreased to 30 percents for affluent regions.
The intergovernmental agreement system should be evaluated on a yearly basis both by a responsible department of the central government and local governments based on the guidelines prepared and supplied by the former. The national parliament will do the final review of the evaluation presented by the authorized department of the central government. The intergovernmental agreement system needs a legal basis to be introduced and implemented in Korea. The revision of the existing balanced regional development law or the enactment of the intergovernmental agreement system for regional development should be considered.
The intergovernmental agreement system is expected to bring several benefits. The relationship between the central and local governments will transform to interdependent partnership. Public investment will be more efficient as overlaps in investment are avoided and strategic projects are promoted. In addition, a collaborative regional development mechanism can be established while promoting the national and regional interests in harmony.
1 .5
Improvement Measures for the National Territorial Survey
국토조사 개선방안 연구
Hye-Chul Yoon, Yang-Ho Park, and Eun-Jung Cheon October 2001․157 pages․Korean
The study was intended to cope with the rapid economic and social changes that Korea has been undergoing recently. Comprehensive bibliographies of the national land survey have been published based on the "The National Territorial Comprehensive
Planning Law" enacted in 1967. However, they did not establish information on the national territory in systemic and comprehensive manner and so could not be utilized as basic data to prevent irrational land uses such as reckless development. In this context, the need to build data of national land surveys in systemic manner to facilitate policy making and planning for the national territory has been raised.
The study mainly focuses on ways to build data on the national territory into databases and utilize them for the development of policy indicators. The objectives of the study are: 1) to propose items of the national territory survey and policy indicators necessary for the establishment of plans and policy making; 2) to seek convenient ways to use data of national territory surveys; and 3) to propose measures for institutional improvements to help the continuous collection and accumulation of data of the national territory. Toward these ends, the study touches upon the meanings, current status and problems of the national territory survey, foreign cases, the establishment of survey items, the analysis of data collection methods, survey items for national territorial policy making, database building and their utilization, and measures for institutional improvements for national territory survey.
Chapter 1 defines the scope of the study to basic data on the national territory that are used in the establishment of spatial plans and policy making. The study carried out literature surveys to collect data on the national territory and foreign case studies for theoretical verification.
Chapter 2 examines the definition, current situation and problems of national territory survey, improvements to be made and foreign cases. The national territory survey is carried out by the central government or local governments for the use, development and management of the national territory. It surveys natural and cultural situations and collected data are used as basic data for the establishment of spatial plans. The national territory survey is divided into general survey, land classification survey and resources survey according to the "The National Territorial Comprehensive Planning Law" and planned survey is carried out when it is necessary for administrative purposes. The U.S., England and Japan emphasize the importance of the systemized information on the national territory and carry out national territory surveys.
Chapter 3 defines and classifies survey items to analyze the characteristics of each survey item and its utilization. They include numerical values, measurements, symbols, marks and indices that help better understand the complicated spatial structures of the national territory and evaluate the current and future conditions. Survey items are selected among 420 survey items used in the 4th Comprehensive National Territorial Plan. Selected survey items are once again verified to see if they can be used for policy indicators for the national territory.
Chapter 4 deals with the types of the selection of policy indicators, the selection of policy indicators, and the utilization of policy indicators. The study examined four types of the selection of policy indicators such as fixed quantity type, measuring type, mixed type and others. The criteria of the selection of policy indicators for the national territory include pleasantness, economy, balance, foundation, openness and the environment in terms of policy objectives, and competitiveness, balance, the environment, regional characteristics and welfare in terms of policy utilization. Indicators for each criterion are selected and the cases of their utilizations are examined.
Chapter 5 conceives measures to systemize survey items for the enhancement of the utilization of survey data through database building, and examines the publication and management of data and institutional improvements. For the collection and systemization of survey data, it is necessary to check the excessiveness and deficiency of survey items and adjust data collection systems to save the management cost. It is also necessary to open the data controlled by local governments to the public to avoid duplicated data creation, and secure consistency and accuracy. For the management of indicators, it is necessary to make a comprehensive list (data dictionary) to make it possible to save, browse, and renew data. It will enhance the objectiveness, continuity, reliability and availability of data. It should be a basic principle to open data on the national territory and publish a national survey document every 5 years based on the national territory survey. To carry out the national territory survey like this, institutional improvements through legal adjustment have to be made.
In conclusion, the national territory survey is an important means to achieve the policy objectives for the national territory and can be used for the adjustment of
infrastructure and the enhancement of the quality of life. In a short term, it can be used as basic data to facilitate sustainable development and build information infrastructure on sound national territorial policies. For this, departments of the central government should cooperate with one another for data sharing and system building for the sharing of data. Efforts on the computerization and standardization of information should be continued and in particular, programs to foster specialists should be developed.
1 .6
Regional Development Support System for Balanced National Development: Policy Agenda and Future Directions
지역발전을 위한 지원실태와 정책과제(RR 2001-58)
Ji-Chung Yang
October 2001․225 pages․Korean
The national economy of a country is an aggregation of regional economies which vary widely in the degree of integration among them. And the disparity in regional economies gives rise to social and political problems. Korea also has many problems concerned with regional disparities in terms of regional income, job opportunities, and so on. Especially the capital region is a center of economic activities, government operations, and international activities, which causes various side effects in positive and negative ways.
In order to achieve regional growth and balanced development, various policies should be adopted. Local governments other than those in the Seoul capital region tend to demand to depress economic activities in the capital region and are opposed to the relaxation of controls. However, in the perspective of competitiveness and globalization, making the Seoul capital region as a competitive global region is another national issue in Korea.
In the first chapter, the overall research scheme including the purpose of study, research method, research scope, and research limitation are introduced. The current regional development policy and projects are analyzed.
The second chapter, "Previous Research and Theoretical Background," examines previous studies on regional development theories, regional disparity, and other core regional development related theories. Local financial expenditures, especially investment expenditures, seem to be the most important element to promote regional economic growth. Factors that can lure industries into a specific area can be external factors such as the provision of SOC facilities and cultural setting. It is also necessary for the government to grant financial support such as central government subsidy, transferred funds of districts and others to improve the business environment. Also, regional development can be expedited if small enterprises, venture companies, and others attract foreign direct investment. In such processes, regional development is promoted with the maximization of gross regional domestic product and the enhancement of quality of life.
Government support can be classified into spatial and non-spatial supports: the former can be subdivided into nationwide support and support for specific regions, while the latter can be subdivided into support for overall industries and support for specific industries. The support for overall industries can produce different results according to the industrial structure of each region. The study explains the result of a literature survey and theoretical development. Market failure justifies government interventions and regulations. As well known, examples of market failure are external diseconomies of air and water pollution, public goods, and so on. The existence of such imperfections is generally believed to provide grounds for government's subsidies, government regulations, etc,. The concept and source of regional disparity, regional development and growth as well as regional productivity are reviewed. And the process of how the region can acquire regional competitiveness, and the regionalization of special industry investment are reviewed.
In the third chapter, "Types of Support and Analysis of the General Conditions for Regional Development," support systems for regional growth and balanced development are classified, which include finance, tax, investment program and development
strategies. In addition, government policies for regional development were categorized into budget support, tax benefit support, financing support, and support for developmental policy in regard to investment, and the conditions of each category as well as its characteristics were analyzed and summarized as follows:
First, budget support for districts includes central government grants, transfers from local funds, local grants, realty management, and special accounts for regional balance.
The financial support for the year 2000 is approximately 20 trillion won: 8.3 trillion won from local grants, 8.2 trillion won from federal grants, 3.6 trillion won from local transfers, and 200 million won from realty management and special accounts for regional balance. Out of the above, the transfer from local funds have the greatest effect on regional balance and the strongest spatial character and also showed the greatest effect on financial security. The initial idea behind the transfer from local funds was to equalize the average local administrative infrastructure service but it was distributed to non-metropolitan areas and eventually contributed to the development of regional balance. It can be analyzed that despite the weak elasticity, if local grants or transfers from local funds increase, overall regional production increases. On the other hand, federal grants may have much more elasticity, but allows the possibility for areas with high production levels to receive less grants and thereby having a negative effect.
Second, tax reduction induces regional development granting indirect support through the classification of metropolitan and non-metropolitan areas brought favorable effect to localities enjoying benefit from the growth restrictions on metropolitan areas. It can be said that the majority of policies was indirect measures to restrict the growth of metropolitan areas. The tax support for small to medium enterprises should be differentiated by metropolitan and non-metropolitan areas or big cities and non urban areas and provided to new venture businesses and converted small enterprises. As tax support to foreign direct investments, the government implements tax reduction policies and designates special foreign investment regions in order to induce more foreigners to invest in Korea. Also, to accelerate the decentralization of core functions to local areas, tax support is provided to promote the relocation of companies.
Third, financial support programs to small-to-medium-sized venture enterprises
include financial support to small and medium sized venture companies, financial support to small and medium sized companies by competent agencies, and financial suppor for relocation. For the analysis of financial support programs for small to medium venture enterprises, the study streamlines the basic principles in the provision of financial support and examined the actual status at the Department of Small and Medium Enterprises, Ministry of Industrial Resources, and the Ministry of Information Communication and projects carried out by the Ministry of Information Communication.
Fourth, the types of support by development policy and investment support type are the industrial development support for regional development by the central government and support through development policy. The need to support industries with growth potentials such as Information Technology (IT), Biotechnology (BT), Nanotechnology (NT), Environmental Technology (ET), Cultural Technology (CT), etc., through regional development in specific regions, and the expansion of Bio Clusters were examined.
In the fourth chapter, "Actual Support Conditions Analysis of Small to Medium Sized Firms and Venture Businesses for Regional Development," the study emphasized the need to grant various financial and tax supports to medium-sized firms and venture companies for their importance for the vitality of regional economy. Especially, the need to encourage the relocation of companies was discussed to curb the concentration in the capital region. Through a survey for policy evaluation and future policy development, the study came to the conclusion that the present support systems for regional growth and balanced development were not effective policy tools. This is mainly because of the lack of financial resource mobilization and complexity of related policies. In this chapter, support to small and medium-sized venture companies was analyzed in depth. Financial support, federal funding, products purchasing and educational opportunities are discussed as means to support small and medium-sized firms, whereas financing, asset support, tax break, relocation support, start-up business support and management support for venture companies. Support for small and medium-sized firms as well as the concentration of venture firms was systematically analyzed by category. According to the result of the analysis, these support plans were found unconducive to the relocation of venture firms to local areas in spite of the fact that they are effective in enhancing
competitiveness. A majority of venture companies is engaged in information and communication industries, and the result of an empirical study showed that the relocation of small and medium sized firms can be an effective method to achieve the regional balance.
In the fifth chapter, future policy directions are summarized together with various strategies. For regional development, suggested are the establishment of support system, the achievement of regional equality, the building of an implementation system for plans, win-win strategies for the capital region and local areas, and the fostering of small to medium firms and venture companies. The study is aiming at analyzing the present systems to support regional growth and balanced development. It also presents the result of survey of government officials, professors, and researchers in the appendix.
1 .7
A Study on Free Trade Zones as
New Open Territorial Poles for the Glocalization Era
세방화시대의 신개방국토거점 육성방안:
통합국토축 형성을 위한 자유무역지구를 중심으로(RR 2001-4)
Won-Sup Lee, Cheol-Soon Chang, and Yang-Ho Park November 2001․198 pages․Korean
The study aims to present a conceptual framework and specific measures to develop a series of Free Trade Zones (FTZs) as new open territorial poles in the era of glocalization in the 21st century.
The basic concept of the Free Trade Zone used in this study was provided by the 4th Comprehensive National Territorial Plan (2000∼2020). The Plan suggests developing a series of FTZs along the coastal regions of Korea as a means to build an open and integrated territorial axis.
The first chapter presents reasons for the needs to develop FTZs in Korea; to provide international investment posts; to develop Korea as a Northeast Asia logistics center, to promote balanced interregional development, and to maintain the integrity of government policies.
The second chapter defines the concept of FTZs as a means to build new open territorial axes for the preparation of the glocalization era. The FTZs are the places in which free international business activities are guaranteed by government regulations and laws. One of the most important purposes to develop FTZs is to attract foreign direct investment and to create jobs and incomes in high technology industries. In addition, economic and spatial theories related to FTZs are reviewed.
The third chapter presents a comparative analysis of FTZs both in Korea and foreign countries: laws and policies pertaining to the Free Trade Areas and the Free Tariff Areas in Korea are examined and compared, and foreign countries' policies in China, Malaysia and Taiwan are also reviewed.
It implicates that the highly efficient policy, the maximization of the policy efficiency, the unification of government policy, and deregulation and administrative support are important conditions for the success of FTZs.
The fourth chapter discusses essential elements required for FTZs and suggests four types of FTZs appropriate for Korea: comprehensive type, logistics type, particular type, and special type. Each type of FTZs is deployed by function and at the same time linked to one another organically to form a FTZ network.
The fifth chapter discusses the appropriate locations of FTZs in Korea. About forty cities located on the six territorial axes specified in the 4th Comprehensive National Territorial Plan are considered candidate sites for FTZs. A mathematical model is employed to assess potentials of these cities.
In addition to the model based on the comparative assessment of seven locational factors, spatial policy perspectives are incorporated to the process of selecting potential locations of FTZs. The study suggests twelve locations for FTZs, consisting of three existing ones and nine new ones.
The sixth chapter proposes policy measures to promote FTZs. Emphasis is placed on
the international competitiveness in terms of incentives to foreign investors such as tax exemptions, deregulation, one-stop administrative services, and infrastructure provisions.
Another important policy agenda is to integrate these separated but similar laws into a single law to govern various types of FTZs.
The last chapter is the summary and conclusions of the study. The study emphasizes the importance of FTZs as a means to attract international capitals and to achieve balanced territorial development. The location of FTZs needs to be adjusted to the government's industrial and spatial policies.
1 .8
A Study on Indicators for the Selection of Development Promotion Areas
개발촉진지구 선정지표 개선에 관한 연구 Tae-Sung Seo and Chul-Soon Chang
January 2001․3 vols.(Main Report 113 pages, Summary Report 40 pages, Data Book 117 pages)․Korean
It is true that the rapid growth of the Korean economy has started from urban areas for the last 30 years but rural areas were usually excluded not only from the growth process but also from partaking of the benefits. The more serious problem is that the disparity between urban areas and rural areas has been so aggravated that it gives rise to regional conflicts and further works as a major factor impeding the social integration.
Recognizing that regionally imbalanced development should be mitigated to achieve balanced development throughout the country, the government institutionalized the system for specific area development. The system bore good fruits in the preparation of industrial estates and the development of national land resource. But due to the dominance of the central government's role in the operation of the system, the
participation of local governments and residents was insufficient and at the same, the chance for private developers to participate in development projects was also restricted.
In order to overcome these shortcomings, the government enacted the "Balanced Regional Development and Support for Local Small and Medium Enterprises Act" in January 1994.
The new act is considered to remedy existing problems by enabling to develop potentials of rural areas and inducing the autonomous participation of the private sector.
The purpose of the study is 1) to select indicators to decide lagging cities and counties to be subject to the new act 2) to propose measures to operate the system and 3) to propose improvements in the system. The study consists of introduction, 4 main chapters and conclusions and policy recommendations.
Chapter 1, "The Background and Purposes of the Study," explains the background, purposes, and directions of the study.
Chapter 2, "Existing Institutions for Lagging Areas," presents a general picture of existing institutions and systems in connection with the development of lagging areas, and prospects institutional changes.
Chapter 3, "The Designation of Development Promotion Areas: Current Status and Problems," deals with the institutionalized designation of development promotion areas.
Following the first-year designation and development approval in 1996, the fifth-year designation and development approval for 2000 has been completed and now development projects are underway according to plans prepared for designated areas. It means that the implementation of development projects has been decided even for all the lagging city and county areas that had been selected to be developed over 5 years but excluded from a separate planning. Therefore, it is necessary to set new selection methods to decide the level of support for lagging city and county areas.
Chapter 4, "Improvement to the Selection of Indicators for the Designation of Development Promotion Areas," provides and examines alternative indicators. It is important to define the meaning of "lagging areas" distinctively before designating lagging areas. The study defines "lagging areas" in terms of competitiveness and selected indicators on the assumption that competitiveness comes from growth potential, the quality of life and the level of a regional economy.
In this context, the study analyzes income level by means of car owning rate, public health and social welfare by means of the number of doctors and aging index, and land use potential rather than population and industrial composition, infrastructure, and financial status of local governments. For the selection of indicators, 44 regional development indicators were built into a database and among them, 30 indicators were selected first. Among the selected 30 indicators, 23 indicators were selected based on how well it tells about a lagging area. Finally, 8 indicators were selected by the criteria of representation, comparative objectiveness, sustainability, improvement potential and national decentralization. They are the increase rate of population, the ratio of population engaged in the manufacturing industry, road rate, financial self-reliance, the number of registered cars, the number of doctors, aging index, and the rate of urban land use. The first 4 items are conventional.
Two alternatives were established for the selection of lagging areas: one is to select lagging areas when they have 2 or more indicators falling into the bottom 20%, 25% or 30% (Alternative A) and the other is to select lagging areas when one or both of the increase rate of population and financial self-reliance fall behind in addition to one of the remaining 6 indicators (Alternative B). According to these alternative selection methods, the number of cities and counties falling into these categories ranges from 47 to 78, accounting for 32.9-56.9% of the national land. These cities and counties were evaluated again in terms of similarity to existing selected areas in size, the equality between cities and provinces and the diversity of indicators. Based on the result of this evaluation, the study proposed two alternatives for the final consideration; one is to select those areas that have 3 or more indicators falling into the bottom 30% among the areas selected by Alternative A (66 areas in total, accounting for 47.1% of the national land) (Final consideration A) and the other is to select those areas that fall into the bottom 30% among the areas selected by Alternative B (62 areas in total, accounting for 42% of the national land) (Final consideration B). The study again evaluated them based on foreign cases, the suitability of the application of indicators, etc. and proposed the Final consideration B as the most appropriate alternative.
Chapter 5, "Institutional Improvements to the Designation of Development Promotion
Areas," proposes measures to improve the institutionalized designation of development promotion areas. The study proposes measures to link the designation of development promotion areas to various regional development systems, to activate development activities, to promote various projects efficiently in accordance with regional characteristics and to secure financial sources and benefits. In order to link the designation of development promotion areas to regional development systems, the study recommends targeting the enhancement of regional competitiveness as the objective of the designation of development promotion areas and differentiate the size and kind of projects and supporting projects from other areas.
In addition, it is proposed to simplify the categories of areas into lagging areas, special areas and private investment promotion areas to be linked to national territorial plans. In addition, the responsibilities of the Ministry of Construction and Transportation for development projects should be transferred to other government departments and for this, the formation of tentatively called "Development Promotion Areas Support Commission" is proposed.
For the activation of development activities, plan period should be extended from currently 5 years to 10 years and it is intended to make public investments first in selected areas and then naturally attract private investments. In particular, it is proposed to establish plans centering on public projects rather than private investments for the selected areas. In order to give a diversity to the kinds of projects to take advantage of regional characteristics, a system should be introduced to select and evaluate diverse projects including software projects. Awarding excellent firms and the operation of a publicity office seem also necessary. The study proposed the establishment of regional development fund, special account for transportation facilities and utilization of a certain proportion of tax money allocated to local governments for the security of financial sources and benefits.
Chapter 6, "Conclusions and Policy Recommendations," consists of summary, conclusions and policy recommendations. The study proposes policy recommendations as follows: 1) Indicators used by advanced countries should be adopted. These indicators should reflect concerned areas the best and enable to forecast the impact of development
projects.; 2) Development plans should be systematized. The current regional development plans according to the "Balanced Regional Development Act" enable metropolitan development plans and development promotion areas planning. As these two plans distinguish developed areas from lagging areas, it is not possible to establish plans for intermediate areas between developed areas and lagging areas.
To solve this problem, the study introduced the institutionalization of specific area development to link these areas to development projects.; 3) large-scale development projects should be avoided. If lagging areas are developed by outsiders without the participation of residents living there, it is just renting a development site from the standpoint of residents. Therefore, it is necessary to promote small-scale projects continuously to produce the effect of job creation.; 4) It is necessary to change the viewpoints of evaluating lagging areas. In the past, lagging areas were evaluated comparatively. But in the future, they will be evaluated not in quantitative terms but in qualitative terms. Therefore, such items as the quality of life, accessibility to information, the natural environment, landscape, the capabilities and willingness to development of a region to promote development projects will be evaluated other than relative comparisons of income, accessibility, education, medical service, etc.; and 5) lagging areas cannot be vitalized in a short period of time. It takes at least 5 years to complete regional development projects such as tourists sites, road construction, and renovation of living environment and therefore it is necessary to make continuous investments for more than 10 years.
1 .9
A Study on the Enactment of the Basic Law for National Territorial Development(Tentative Name)
｢국토기본법(가칭)｣ 제정을 위한 기초연구
Yang-Ho Park, Sung-Jae Choo, Beum-Sik Min, Hye-Chul Yoon, Chang-Hyun Kim, Chai Moon, and In-Sook Jung
March 2001․2 vols.(Main Report 436 pages, Data Book 471 pages)․Korean
The National Territorial Comprehensive Planning Law is the supreme law that rules various subordinate plans and policies pertaining to national territorial development in Korea. Enacted in 1963, it has limitations to properly cope with ever-changing socio-economic circumstances. Therefore, it is necessary to enact a new comprehensive law that will guide subordinate plans and regulations for national territorial development. In this context, the study analyzes existing legal systems pertaining to national territorial development to conceive a new basic law that will comprehensively deal with national territorial development in Korea.
The study has four objectives: 1) to establish a set of principles of national territorial development and management in the 21st century; 2) to suggest policy measures for the efficient linkage and effective execution of various territorial development plans; 3) to develop policy tools to enhance the effectiveness of national territorial development plans; and 4) to prepare a draft bill for the enactment of a new law.
Composed of eleven chapters, the study investigates existing planning systems and policies for national territorial development and diagnoses problems in them, especially in the processes of planning, implementation, and assessment. Then measures to rectify problems are suggested. The study also proposes policy tools for various national territorial development plans along with policy measures to deal with financial and administrative matters so as to enhance the effective performance of national territorial development plans. The draft bill this study has made will be a good orientation for the government to enact a new law.
1 .1 0
Vision 2011 and Strategies for Balanced Regional Development
국토균형발전 중장기 비전 연구(RR 2001-57) Yang-Ho Park and Chang-Hyun Kim
October 2001․156 pages․Korean
Despite the continued efforts to curb the concentration in the Seoul Metropolitan area, socioeconomic disparity among regions has not lessened but even widened, especially since the 1997 financial crisis. It is pointed out that it is because the government's policies and programs for balanced regional development are oriented to regulatory measures and hardwares such as the limitation of factory building in the Seoul Metropolitan area, building industrial complexes to boost a local economy, etc. Other than these, it is also necessary to formulate policies and programs to support the establishment of firms in local areas, to enhance productivity and promote self-sustaining economic growth in local areas.
This study aims at suggesting national visions and strategies for the "Vision 2011 Project" that is to achieve a balanced regional development. The "Vision 2011 Project" is a long-range plan to be carried out over a period from 2002 to 2011.
In order to achieve the goal, the study sets four sub-goals as follows: 1) decentralization of population and socioeconomic activities in the Seoul Metropolitan Area; 2) decentralization of government organizations and authorities; 3) specialization of regional characteristics; and 4) interregional cooperation and integration.
In addition, the study provides concrete strategies to achieve these sub-goals as follows: 1) each region should be specialized in a specific industry in which it has comparative advantages.; 2) the education system should be reformed in order to train human resources to meet the needs of a specific regional industry.; 3) the functions of the Seoul Metropolitan area should be decentralized appropriately to local areas in order to rationalize its urban land use and to enhance its competitiveness to the international
