Two Paths of Korea's Clustering: Centralized De-concentration and Regionalized Concentration

This paper presents, from a broad perspective, the manner in which various types of clusters and options for regional development have evolved in Korea over the past decade, with particular emphasis on who have taken initiative in establishing the clusters. Characterized by not only progress but also setbacks, two distinctive patterns have emerged: centralized de-concentration and regionalized concentration. Both the Korean government and numerous localities have continuously extended efforts to create different clusters, technology parks, special districts, etc. In many cases, local or regional governments have competed intensely for clusters to be located in their jurisdictions; in particular, concerted efforts to convince national governments to set up special districts have been witnessed. On the other hand, major localities have made their own efforts to generate large- and small-scale clustering projects. It remains to be seen how different outcomes or effectiveness these two approaches will make in the future. Following the review of relevant literature and practices, I examine the well-known national campaign and projects in the previous administration in Korea in the context of 'de-concentration' of economic values and resources. Thereafter, other cases initiated mostly by local governments are discussed; some of these clustering efforts and regional projects have fared well thus far, but some haven't. In the case of Daegu, the progress of some critical projects, such as the Daegu Technopolis and a Free Economic Zone, is elaborated.