Poirot’s Deduction

 

 

©Jeski Social Campaign  /▲ A public service advertising represents the seriousness of the centralization of Seoul and the regional imbalance in Korea.
©Jeski Social Campaign  /▲ A public service advertising represents the seriousness of the centralization of Seoul and the regional imbalance in Korea.

 

 

[Intro]

If you randomly grab a high school student in Korea and ask, “Where is your target university?” 9 out of 10 would answer, “universities located in Seoul.” “In-Seoul universities” is a neologism that refers to major universities located in Seoul. This terminology of going to universities located in Seoul is no longer limited to universities. The concentration of the Seoul Capital Area, the metropolitan area of Seoul, Incheon, and Gyeonggi Province, is accelerating in various fields such as education, residence, and employment. Due to this acceleration, various problems such as saturation and population have arisen.

It is common for the capital city to become the center of the country. But in Korea, more than 50 percent of the population resides in the Seoul capital area. Even the populations of Greater London, the UK's metropolitan area, and Ile-de-France, the metropolitan area of France, which are considered to be heavily concentrated metropolitan areas in Europe, account for 13.4 percent and 18 percent of the country's total population, respectively. This shows that Korea's population density in the Seoul capital area is seriously high compared to the other metropolitan areas in the world. Due to extreme concentration in the Seoul capital area, in various fields of public services such as housing, transportation, environment, and culture, the Seoul capital area is facing the problem of overpopulation and the rural areas are facing the problem of depopulation. The Argus intends to analyze the background, phenomenon, and the causes of the extinction of rural areas and the centralization of the Seoul capital area based on opinions of experts.

 

[Body]


Background

© Heo Tae-seong, The Korea Herald / ▲ There are currently 19 new towns in Gyeonggi and Incehon, which are part of the Seoul capital area.
© Heo Tae-seong, The Korea Herald / ▲ There are currently 19 new towns in Gyeonggi and Incehon, which are part of the Seoul capital area.

 

As the old saying goes, “When people are born, send them to Seoul. As for the horses, send them to Jeju Island.” The preference for the Seoul capital area has existed since ancient times. Seoul has been the center of the politics, economy, and culture of Korea since becoming the capital of the Joseon Dynasty. From the 1960s to the 1990s, residents of rural areas who left their hometowns under government-led economic development flocked to the Seoul capital area which offered them more workplaces. Even after that, unlike the manufacturing-oriented regions, the service-oriented metropolitan area continued to drive economic development and urban development such as 1st phase new town development. After democratization in 1987, interest in local autonomy, decentralization, and balanced regional development was discussed and various policies were implemented. However, the phenomenon of centralization in the Seoul capital area continued. According to resident registration population statistics released by the Ministry of Public Administration and Security in 2020, the proportion of the population in the Seoul capital area, which was at 20.8 percent in 1960, soared to 35.5 percent in 1980 and 42.8 percent in 1990. In the rural areas, population outflowing to Seoul is still taking place today.

* 1st phase new town: A new town built near Seoul by the Roh Tae-woo government, which served from 1988 to 1993, to stabilize house prices and solve the housing shortage. Five new towns are included in the 1st phase: Bundang in Seongnam, Ilsan in Goyang, Sanbon in Gunpo, Jungdong in Bucheon, and Pyeongchon in Anyang, Gyeonggi Province.

 

 

Phenomenon

© Statistics Korea / ▲ For the first time in the history of South Korea, the population of the Seoul capital area has exceeded 50% of the country’s total population in 2020.
© Statistics Korea / ▲ For the first time in the history of South Korea, the population of the Seoul capital area has exceeded 50% of the country’s total population in 2020.

 

The decrease of population in rural areas due to the expansion of the Seoul capital area is a serious problem in that the declining rural areas become a black hole that sucks the government budget. Professor Ma Gang-rae of the Department of Urban Planning and Real Estate at Chung-Ang University said, "Small and medium-sized cities in non-metropolitan areas gradually decline as the population moves out, but as long as people live there, the government has no choice but to carry out the regeneration project, so it is putting more and more of the budget into it." When the population decreases, the efficiency of infrastructures such as sewage systems and cultural facilities also decreases. In addition, there is the problem that the social maintenance cost borne by individuals increases as the population using the facility decreases. Professor Ma explained, “The metropolitan area with a large population also requires a large budget to meet the demand for infrastructure. He added, “If this trend continues, by 2040, 30 percent of the basic local governments in Korea will reach bankruptcy.”

 

Despite such a large government budget, people in rural areas complain about the low level of social infrastructure compared to metropolitan areas. According to the “Land Monitoring Report 2020” published by the Ministry of Land, Infrastructure, and Transport, the average distance from residence to a general hospital in Seoul was 2.85 km, while Gyeongnam, a province in the Southern part of the Korean peninsula, was the furthest at 31.54 km. In addition, the proportion of the vulnerable population without a general hospital within a 15 km radius of their residence was only 0.01 percent in Seoul, but 37.5 percent in Gyeongnam. In the transportation field, the six routes of Korea Train Express (KTX), are mainly installed in consideration of connecting Seoul and the regions; so, the direct connection between rural areas is low. Moreover, private performance halls related to culture and art, special exhibitions or concerts of celebrities are also concentrated in the metropolitan area. “When I was in Busan, concerts of celebrities and artwork exhibitions were held only in Seoul, so there were many cases where I gave up watching,” said Nam Sang-jin, a student at Hankuk University of Foreign Studies Department of Spanish, who is from Busan, a city located in the southeast part of the Korean peninsula. Neologisms such as “The Republic of Seoul” are coined to satirically refer to the excessive concentration of infrastructure and capabilities in various fields such as economics, politics, society, and culture in the Seoul capital area.

©Ministry of Land / ▲ The graphic indicates the gap of average distance to reach the living facilitiesbetween rural and urban areas.
©Ministry of Land / ▲ The graphic indicates the gap of average distance to reach the living facilitiesbetween rural and urban areas.

 

Cause

1. Seoul-centered economic development and changing industrial structure

Korea's unprecedented expansion in the Seoul capital area, is the result of a state-led, input-oriented growth strategy. For the past 40 years, the Korean government has implemented economic policies centered on the Seoul capital area under the economic plans led by the government. The Seoul-centered economic policy of the Park Chung-hee government, which was in office from 1961 to 1979, led to high economic growth in a short period, but soon caused a huge cost burden and imbalanced development. The larger the economic scale of Seoul, the wider the gap between the Seoul capital area and the rural areas. Behind the rapid industrialization and the concentration of population in large cities, new social problems such as rural alienation, labor, and urban overpopulation emerged. However, successive administrations ignored these social problems and continued the economic policy centered on the Seoul capital area which resulted in the government not being able to balance the pace of development in the Seoul capital area and the rural areas. Due to the wage and job gap between Seoul and rural areas, many people are now leaving their hometowns in search of decent jobs.

©Gyeonggi Province / ▲ A number of new high tech industrial complex will be created in Gyeonggi Province, part of Seoul capital area.
©Gyeonggi Province / ▲ A number of new high tech industrial complex will be created in Gyeonggi Province, part of Seoul capital area.

 

The changing industrial structure is also contributing to the concentration of Seoul. Under government-led development, local cities developed the light, heavy and chemical industries, while the Seoul capital area developed centered on service and high-tech industries. In the past, industries such as steel and shipbuilding largely drove the Korean economy, and industrial cities located in Ulsan and Geoje grew together. However, many young people leave their hometowns and migrate to the Seoul capital area because of the diminishing economies in rural areas. For instance, the Pangyo Techno Valley, which is in the Seoul capital area, is leading the information and communication technology industry in Korea as a representative high-tech industrial complex near Seoul. According to the results of the 2021 1st and 2nd Pangyo Techno Valley General Survey Results announced by Gyeonggi Province, the sales of companies in Pangyo Techno Valley in 2020 were about 109.99 trillion won, which is higher than Hyundai Motor’s 103.9 trillion won in sales in the same year. The number of resident companies is 1,697 and the number of full-time workers is 71,967, which is more than the total population of Gwacheon-si, Gyeonggi-do at 69,910. With the success of Pangyo Techno Valley, Gyeonggi Province announced that it would promote additional new techno valleys in areas such as Gwanggyo, Yongin, Ilsan, Gwangmyeong, Siheung, Hanam, Dongtan, Gimpo, and Anyang. Knowledge-based industries with high added value, such as information and communication technology, are concentrated in the Seoul capital area, while manufacturing, where the value is decreasing day by day, is based in the rural areas. For instance, Hanjin Heavy Industries, a shipbuilder that once represented Busan, could not withstand the aftermath of the global recession and was at a loss. It sold its shipyard to a consortium* led by Dongbu Construction. The spread of the techno valley in the Seoul capital area and the decline of local cities, on the contrary, show that the job gap between the provinces and the metropolitan area is deepening due to the development of information and communication technology and changes in the industrial structure.

*Consortium: An association for a common purpose.

 

 

2. Concentration of various facilities in Seoul

The wide gap between the Seoul capital area and rural areas can be seen as the biggest cause of centralization, including educational institutes such as universities, workplaces, cultural spaces, transportation, and even food, clothing, shelter, and medical facilities. In fact, Seoul National University, Yonsei University, Korea University, and Hankuk University of Foreign Studies, so-called prestigious universities highly preferred by students, are concentrated in Seoul. In the past period of economic development, national universities based in regions with relatively low tuition fees and long traditions were also quite competitive. According to the education company Jongno Academy Haneul Education, in 2021, all nine national universities in regional areas recorded less than 100 percent enrollment rate for new students. In addition, among the 200 four-year universities nationwide, more than 30 universities with less than 100 students enrolled in the academic year of 2021, including Daegu University in Gyeongsan-si, Gyeongsangbuk-do, Wonkwang University in Iksan-si, Jeollabuk-do, Sangji University in Wonju-si, Gangwon-do, and Catholic Kwandong University in Gangneung-si, Gangwon-do. This shows the actual situation of students in rural areas and the disappearance of local universities due to the decrease in the school-age population and the preference for universities located in Seoul. In addition to this blind “in Seoul” phenomenon, local universities are in danger of disappearing due to population extinction caused by the low birth rate and aging population.

©Song Bong-keun, The Dong-a Ilbo / ▲ Members of labor union from local universities held a press conference in front of Busan City Hall to demand measures against the collapse of local universities.
©Song Bong-keun, The Dong-a Ilbo / ▲ Members of labor union from local universities held a press conference in front of Busan City Hall to demand measures against the collapse of local universities.

Regarding jobs, most companies have their headquarters located in Seoul, and mid-sized companies that were in some regional areas are also moving their headquarters to the Seoul capital area. Of the top 100 companies by market capitalization in 2022, 86 companies have their headquarters located in the Seoul capital area. There is a clear difference between the Seoul capital area and the rural areas not only related to the location of corporate headquarters, but also in the quantity and quality of jobs. According to Job Korea, Korea's representative job offer site, as of May 5, 2022, 124,883 jobs were found in Seoul, 82,365 jobs in Gyeonggi province, and 18,166 jobs in Incheon. There was a total of 154,414 job announcements in the Seoul capital area, a huge difference from 63,483 jobs in non-Seoul capital areas. There were no places with more than 10,000 job postings in non-Seoul metropolitan cities or provinces. Even if we simply compare the absolute number of jobs, we can confirm that the Seoul capital area has far more jobs than non-metropolitan areas.

As it is difficult to find a job in rural areas, many young people are moving to the Seoul capital area. Professor Kim Kyung-hoe of the Department of Education at Sungshin Women's University said, "The social and cultural infrastructure are all concentrated in Seoul, so most people want to live in Seoul. There are no fascinating jobs in rural areas,” he said. In conclusion, the problems of education and workplaces are exacerbating the expansion of the Seoul capital area.

 

 

3. Policy failures of government

The government recognized the problems of expansion in the Seoul capital area and implemented several policies starting from the 1970s to resolve them. The idea that local governments should be encouraged to promote investment and development by granting various benefits such as a regional quota system and a regional balanced selection system is being consistently pursued despite the successive changes of administration. The government has been promoting gradual improvement by implementing the “Relocation of 115 Public Institutions to Local Areas” and the “Construction of 10 Innovative Cities” projects, the construction of Sejong Special Self-Governing City, and the relocation of public institutions to non-Seoul capital areas. However, these government policies did not have much effect. According to an interview with Choi Jun-young, an expert at the law firm Yulchon, conducted by Sisa Journal, he said, “A city is not a simple sum of individual elements.” According to the Ministry of Land, Infrastructure and Transport, as of the end of June 2017, of the 33,212 employees of 115 public institutions relocated to 10 innovative cities nationwide, 12,567 or 37.8 percent moved without their families. The number of employees who moved to innovative cities with their families was 10,800, or 32.5 percent of the total. This means that 7 out of 10 families still live in other areas, such as the Seoul capital area. Some critics say that such a policy causes families to live apart and increases the economic burden. “I only see my father on weekends,” said Kim Gyu-gun, a student in the Department of Political Science and Diplomacy, Yonsei University, whose father works in an innovative city in a rural area. This reality shows that the innovative city policy is not fundamentally solving the centralization of the Seoul capital area. Regarding this, Professor Lee Min-won of the Department of Accounting and Taxation at Gwangju University said, "The expected regional dispersion effect will be realized when related private companies, major government institutions, and educational institutions move together rather than just moving public institutions."

 In some cases, government policies are inconsistent. A significant portion of the government's balanced development budget used to prevent local extinction and alleviate the phenomenon of expansion in the Seoul capital area has received substantial funding. Of the 3.3 trillion won construction cost of the New Ansan Line connecting Gojan New Town in Ansan and Yeouido in Seoul, 580 billion won has been invested in the balanced development budget so far. The balanced development budget for 69 projects related to the expansion of the metropolitan area's transportation network, such as the GTX construction and the expansion of the Shinbundang Line, amounted to 6.9 trillion won. This is 30 percent of the total 23.2 trillion won of the balanced development budget allocated to the transportation and logistics sectors. Apartment prices in areas where these lines pass have doubled in a year. The budget that should be used to prevent the expansion in the Seoul capital area has fueled the expansion in the Seoul metropolitan area.

Professor Kim Ho-kyun of the Department of Business Information at Myongji University said, “The development of new towns in the Seoul capital area is a policy that goes against the regional balanced development. Even the simple fact that new town development is an important factor in the concentration of the metropolitan area is not reflected in the current government policy or balanced development strategy. It doesn't seem to be taken into account." A more fundamental solution is needed to prevent centralization in the Seoul capital area and achieve balanced regional development.

 

 

[Conclusion]

In a cramped country with the third-highest population density, over half of the population lives on 11.8 percent of the country's land. Expansion in the Seoul capital area is a time bomb that undermines Korea's competitiveness, along with social chaos caused by skyrocketing housing prices, transportation problems, air pollution, and population density. However, now that the population of the Seoul capital area has become the majority of the entire population of Korea, politicians who have no choice but to be conscious of votes are not actively speaking out to save the rural areas. The centralized structure in the capital area can be effective on the level of a middle-income country, but there is a limit to further development for an advanced country. In fact, developed countries such as the United States, France, and Germany have around 10 percent of their population in their capital city metropolitan area. Now that Korea has become an advanced country, it is necessary to resolve inefficient imbalances through balanced development and awaken the potential of local regions.

저작권자 © The Argus 무단전재 및 재배포 금지