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An Assessment of the Effect of the Relocation of Public Institutions to Local Innovation Cities on Regional Growth

Cho Gyumin 1,  Dongwook Sohn 1

1연세대학교

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ABSTRACT

Various problems have been raised in Seoul metropolitan area due to the overpopulation. To resolve the imbalanced regional growth problem, Korean government initiated the innovative city project in 2010s. Although 153 public institutions have been relocated to the innovative cities by 2019, the gap between Seoul metropolitan area and the local provinces has increased, and the population of the Seoul metropolitan area exceeded that of the whole other regions in 2019. In this study, we analyzed the effects of the public institutes relocation to the innovative cities on the regional growth using three indicators (the number of registered population, local taxes and the number of employees). The analysis showed that the population concentration to Seoul metropolitan area has been steadily weakened for the last decade, but there was a lack of evidence on whether that was because of the innovative cities or not. Local tax indicators show that innovative cities had a highest contribution to the regional tax growth rate. Employment indicators also showed that there is a significant contribution of innovative cities to the growth of employment in the local provinces. Finally, it is suggested that the growth rate of individual cities and their contribution to regional growth should be measured together to make more balanced assessment of their performance.

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