Why South Korea cannot rebalance growth without stronger regional clusters

Why South Korea cannot rebalance growth without stronger regional clusters
September 17, 2026

LATEST NEWS

Why South Korea cannot rebalance growth without stronger regional clusters

South Korea’s various regional development initiatives have struggled to build regional hubs with enough productivity and economic density to counter the capital region’s self-reinforcing advantages.

That helps explain why decades of relocation and redistribution have produced limited gains, and why the Lee Jae Myung administration’s “five mega-regions and three special regions” (5+3) growth strategy will depend on whether regional growth engines can become sufficiently concentrated to sustain themselves.

The imbalance has proved durable. More than half of South Koreans now live in the capital region, which covers about 12% of the country’s territory, while the flow toward Seoul,

Share this post:

POLL

Who Will Vote For?

Other

Republican

Democrat

RECENT NEWS

US clears South Korea of currency manipulation in trade talks

South Korea’s offshore won push shifts reform from promise to execution

South Korea’s record current account surplus reshapes the won’s outlook

Samsung, SK Hynix rejection exposes South Korea’s chip-grid financing problem

Trump’s Cheongung social media post tests Seoul’s refusal to arm to Ukraine

Trump’s Cheongung social media post tests Seoul’s refusal to arm to Ukraine

Dynamic Country URL Go to Country Info Page