Gov`t seeks to reduce biz concentration in Seoul

It was pointed out that economic concentration in the Seoul metropolitan area is accelerating, thus causing a problem in national competitiveness in the long term.

Lee Kun-Chul, head of the research team at Kwangju Chonnam Development Institute (KCDI), made such a remark at a symposium for balanced development of land, which was organized by the consultative body among mayors and governors in Kyongsang and Cholla provinces. He noted that concentration of the metropolitan of population, manufacturing firms and administrative services is at a serious level.

Lee said that the population of the metropolitan area, which occupies 11 percent of the national land, accounts for 45.9 percent of the nation`s entire population. It is far greater when compared with 32.2 percent in Tokyo, 31.2 percent in London and 18.9 percent in Paris. He added that the proportion would rise to 51 percent by the year 2011.

For the balanced development of the land, Lee indicated that the central government needs to hand over the local administration and finance to local autonomous bodies, each region needs to foster their respective industries of specialization, and the central government has to share administrative, social and economic activities with local governments to facilitate decentralization.

Lim Jung-Duk, president of the Pusan Development Institute, contended that it is required to allocate a quota in each region for various state examinations while introducing a system of regional licensing by allowing local governments to issue various licenses required for economic activities in a way to correct the question of structural regional imbalance.

Koo Ja-Ryong bonhong@donga.com