Adapting Regional Policy in Korea
Preparing Regions for Demographic Change
The study is part of the OECD work stream Preparing Regions for Demographic Change, a megatrend that affects several important dimensions of public policy. The following three of them are particular relevant for Korea’s regions and rural places: (i) workforce dimension, (ii) social dimension and (iii) governance dimension. The report consists of three chapters. The first chapter depicts and benchmarks demographic trends in Korea regions against other regions from OECD countries. The second chapter examines a range of policies that can address socio-economic challenges related to demographic trends across the OECD and describes Korea’s current policy approach to manage demographic decline and ageing in regions and rural places. The third chapter identifies recommendations for Korea that can help respond to current economic and demographic trends, and ensure social cohesion. It suggests Korea should aim to develop a clear national rural development strategy, tailor labour policies to rural areas, support rural entrepreneurship, rural SME and the social economy, promote rural innovation and foster local governments’ and communities’ capacity to respond to demographic challenges.
Assessment and Recommendations
Over the last 60 years, Korea has experienced rapid growth, but benefits have not been spread across the entire territory. Although Korea has recorded one of the fastest GDP growth rates in the OECD and a significant increase in income per capita, areas and territories far away from large metropolitan areas are shrinking, ageing and in turn lagging behind. The national government has pursued development opportunities and well-being outside large cities in its recent national development plan to address these challenges as well as mitigating overconcentration of people and economic activity in Seoul.
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