Key facts

• Korea is one of the world’s fastest growing economies. Urban areas have been key drivers of economic growth, with seven metropolitan cities accounting for 46.1% of national population and producing 46.2% of national GDP in 2009.
• Korea’s urbanisation rate exploded from 28% in 1960 to 83% in 2010. Rapid urbanisation has nevertheless resulted in unbalanced patterns and regional disparities in economic performance, dominated by the Seoul Capital Area. The Capital Area accounted for 48.7% of Korea’s GDP, 49% of its population, 46.8% of its firms and 49.6% of all jobs in 2009.
• Korea’s rapid growth, highly urbanised spatial form and traditionally energy-intensive economic model have put growing pressure on the environment, leading to increased resource consumption and pollution levels and the doubling of GHG emissions between 1990 and 2005 – the highest growth rate in the OECD area.
• Korea is also confronting an ageing population and increasing immigration, which will put new pressures on public resources and urban services and require public policies at all levels to adapt to shifting demographics.
• Urban policy has undergone several waves of reform since the 1960s to adapt to changing conditions and priorities, and will need to continue to evolve to meet expected socio-economic and environmental challenges.

• How can national urban policy achieve greater coherence, increased co-operation among local governments and synergy effects with economic development policy?
• What urban policies can help prepare for an ageing population and increasingly ethno-culturally diverse population?
• How can urban forecasting be improved and urban policymaking and implementation be better monitored?
• What strategies can strengthen the implementation of the National Strategy for Green Growth in urban areas to deliver greater economic and environmental impacts?

Recommendations

• Facilitate collaboration among national ministries to integrate urban and economic development planning with a clear national vision for urban development. Enhance policy co-ordination among lower levels of government through a series of financial and institutional incentives.
• Tailor urban policy to the different needs of cities and metropolitan areas by enhancing the competitiveness of large cities through improved innovation capacity, regenerating the economic functions of lagging cities/districts, and developing a specific urban strategy for Seoul.
• Improve the quality of senior housing, adopt more flexible zoning and land use policies, and design public spaces and services to accommodate an ageing and more ethno-culturally diverse population.
• Increase the use of advanced urban modelling and evaluation methods to inform policymaking and improve long-term strategic decision-making.
• Strengthen the urban dimension of the National Strategy for Green Growth with i) a policy mix of market-based and nonmarket-based instruments to green the urban building and transportation sectors and ii) a range of multi-level governance tools that aim to establish clear market signals, diversify funding sources, and develop measuring and monitoring tools at the local level.