Korea

Housing in Korea has been part of the government policy development agenda for the past three decades contributing to reducing the historical housing shortage and improving the quality of dwellings. Despite its achievements, Korea now faces a housing affordability challenge as prices are too high for several social groups (i.e. newly wedded), owner occupancy levels are decreasing, and social housing is struggling to meet demand. Korea has a complex social housing system largely focused on low-income households, who still suffer from housing poverty in terms of housing stability, affordability and quality. A holistic view on housing policy to promote a more inclusive society and sustainable economic growth is needed. To overcome the current housing challenge requires expanding the network of public housing providers by including the private and community sectors that could alleviate the government’s financial burden. Korea is linking housing and urban regeneration strategies to respond to the complex challenges of social inclusion, job creation, housing and economic revitalisation. Korea has been at the forefront of smart city development for more than a decade, which has brought benefits to Korean cities such as integrated transport systems, and it is now committed to applying the concept as a vehicle for inclusive growth.

This report, undertaken within the framework of the OECD Champion Mayors for Inclusive Growth initiative, assesses inclusive growth trends and challenges in the Seoul metropolitan area. The analysis goes beyond income to assess the barriers faced by specific groups - non-regular workers, youth, women, the elderly and migrants - across four dimensions: education, labour market, housing and the urban environment, and infrastructure and public services. The study then takes a closer look at two major policy efforts by the Seoul Metropolitan Government to advance inclusive growth. The study analyses the city’s efforts to ensure that strategies to address climate change also protect and benefit the most vulnerable populations, notably through the Promise of Seoul, which puts citizen welfare and social inclusion at the heart of the city’s efforts to tackle climate change. The study also assesses the efforts of city authorities to level the playing field for small firms and entrepreneurs through its Economic Democratisation Agenda.

Skills are central to Korea’s future prosperity and the well-being of its people. The OECD Skills Strategy Diagnostic Report: Korea identifies 12 skills challenges that need to be addressed to build a more effective skills system in Korea. These challenges were identified through: 1) the OECD’s recent data and research; 2) the national data and research; 3) a diagnostic workshop 4) fact-finding interviews with key stakeholders in Korea. The report has also benefited from ongoing dialogue and consultation with a wide range of Korean stakeholders. The first nine challenges refer to specific outcomes across the three pillars of developing, activating and using skills. The next three challenges refer to the 'enabling' conditions that strengthen the overall skills system. Success in tackling these skills challenges will boost performance across the whole skills system. All of the challenges identified are strongly interlinked, and their connections with each other are identified throughout the report. Failure to look beyond policy silos will have implications for specific groups in Korea, such as youth, as well as for the economy and society’s ability to recover following the economic crisis and build a solid foundation for future prosperity.

This report analyses the relationship between urban transport and inclusive development in Korea. First, it looks at how Korea is shifting from car-centered transport towards people-centered mobility. It discusses opportunities and challenges posed by current urban transport arrangements in Korea, and proposes options for improving urban transport governance. Second, the report uses advanced data analysis and space syntax methods to examine how accessibility to public transport shapes inclusiveness in Korean metropolitan areas. Third, it analyses public transport in four selected Korean cities (Seoul, Suwon, Changwon and Sejong), which offer interesting insights into how public transport policies can be tailored to local socio-economic profiles and urban landscapes.

Transport infrastructure opens new routes and creates connections. It increases prosperity by generating economic opportunities, reducing transport costs and supporting agglomeration economies. However, the increased traffic flows also generate environmental and social costs. In Korea, the amount of paved roads increased dramatically between 1951 and 2014, from 580 kilometres to over 87 000 kilometres. This expansion of Korea’s expressway, highway and major road network has created benefits for cities and rural areas across the country, contributing to both economic growth and inclusiveness. This rapid development of road infrastructure and motorisation has also resulted in relatively high traffic fatality rates. This report combines empirical research on the relationship between road infrastructure, inclusive economic development and traffic safety with an assessment of policies and governance structures to help governments find ways to create effective, safe and inclusive transport infrastructures.

This report examines Korea's urban policies and offers customised policy recommendations based on the OECD publication, Compact City Policies (2012). Some Korean policies, such as urban regeneration, new town development or multi-modal transfering centers, have implicitly implemented compact city polices to a certain degree. However, there are still issues - including urban sprawl, unbalanced socio-economic levels and environmental challenges - which can be threats to urban competitiveness. An appropriate set of compact city polices, such as environmental friendly urban regeneration, mixed land use, polices to offset the side effects of compact development, strong management of transport demands, and governance enforcement, can accelerate Korean cities' sustainable development.

With the rising economic importance of human resources and skills, employment and training agencies are now often expected to play a more important role in local strategies to support new creation, facilitate restructuring and increase productivity. The OECD Local Economic and Employment Development (LEED) Programme has developed an international cross-comparative study examining the contribution of local labour market policy to boosting quality employment and enhancing productivity. In Korea, the review has looked at the range of institutions and bodies involved in employment and skills policies, focusing on local strategies in the Bucheon and Busan regions.