3.1. National Balanced Development Policy
The Korean government enacted the Special Act on Balanced National Development in 2004 to realize advancement through localization. The enactment of the Special Act on Balanced National Development has a very important meaning, in that it laid the institutional foundation for win-win development between the provinces and the metropolitan area as the provinces, which had been on the path of decline for the past several years, turned to an upward phase. Although various policy experiments were attempted to resolve the problems of concentration in the metropolitan area and regional imbalances, the concentration in the metropolitan area continued. It is because they knew that the huge market force of the metropolitan area causes a synergistic effect of aggregation, but they did not establish a decentralized macroscopic mechanism to fundamentally block this. Therefore, the Special Act on Balanced National Development promoted four major policies [
1,
2,
29].
First, based on the regional innovative development plan established by local governments, a five-year balanced national development plan that harmonized with the central government’s sectoral plans was established and confirmed. In order to enhance regional innovation capacity and promote specialized development, the central government supported regional innovation development plans based on creativity and participation in autonomously establishing regional planning capabilities and the relevance of plan contents. Local governments ensured the autonomy and rationality of the plan by reaching an agreement through deliberation by the regional innovation council. Second, the region was defined as a concept encompassing both the metropolitan area and the non-metropolitan area to promote regional innovation and balanced regional development. The establishment of an innovation system to strengthen self-reliance capabilities through regional industry-academic-research cooperation and the formation of industrial clusters, fostering of regional strategic industries, fostering local universities, and the development of local human resources was promoted. Third, it changed from a distributed promotion method centered on each central government department to an integrated implementation method, and strengthened the linkage between national balanced development policies. In addition, a dedicated body was established to coordinate inter-ministerial interests to ensure professionalism and systemicity in business promotion. Fourth, for the balanced development project promoted by local governments, the examination and evaluation functions were strengthened from the initial stage to the final completion stage. Additionally, the connectivity and integration of the regional innovative development plan was achieved through transparent and responsible business promotion [
1,
2].
The Roh Moo-hyun administration (2003–2008) presented a basic framework of establishing a regional innovation system to realize balanced national development.
Based on this, policies were suggested such as: the selection and development of regional strategic industries, the promotion of regional universities, the promotion of regional science and technology, the promotion of local informatization and information communication, the promotion of local cultural tourism, the development of underdeveloped areas and agricultural and fishing villages, the promotion of regional economy activation, local relocation of public institutions, and local relocation of corporations and universities, etc. [
30].
The Lee Myung-bak administration (2008–2013) proposed policies centered on the 5 + 2 metropolitan area as major policies to achieve regional development: the diversified development of national land, the expansion of regional development capacity, the promotion of regional economic vitalization such as fostering of local industry, the nurturing of local manpower, the promotion of science and technology, fostering regional development bases, the expansion of transportation and distribution networks, the nurturing of local cultural tourism, regional development to promote growth, and public institutions regional relocation of businesses and universities, etc.
The Park Geun-hye administration (2013–2017) promoted major policies for regional development, centered on local living areas, including: expanding the living base of residents; strengthening local development capabilities; fostering local industries; creating jobs; improving local educational conditions; nurturing talent and promoting science and technology; fostering regional development bases and expanding transportation and logistics networks; fostering local cultural tourism and environmental preservation; regional welfare and health care expansion; growth promotion area development; industrial crisis response special area designation; public institution relocation; and business and university relocation, etc.
The Moon Jae-in administration (2017–2022) proposed measures to realize balanced national development, such as: the establishment of a regional innovation system; the expansion of the living base of residents and strengthening of regional development capabilities; the promotion of regional economic vitalization such as nurturing local industries and job creation; the improvement of local educational conditions and nurturing of talent; the promotion of regional science and technology; the nurturing of bases for balanced national development; the expansion of transportation and logistics networks; the fostering of local cultural tourism and environmental preservation; the expansion of local welfare and health care; the development of growth promotion areas; designation, support, and the cancellation of special areas for responding to industrial crisis; the relocation of public institutions and the revitalization of innovative cities; the designation and fostering of national innovative convergence complexes; the relocation of companies and universities to regions; the signing of regional development investment agreements; the establishment; development and management of regional statistical bases; development and management; international exchange; and cooperation for balanced national development.
Hence, every five years, since the enactment of the special act on balanced national development in 2004, the structure and content of the special law have undergone many changes, reflecting the government’s philosophy and direction, the recognition and response direction to problems with regional differences, changes in social conditions, and policy demands. In particular, among various government policies, for regional innovation and balanced development, the relocation of public institutions to local areas was transferred by creating 10 innovative cities in: Busan, Daegu, Ulsan, Gyeongsangnam-do, Jeju Island, Gwangju/Jeollanam-do, Gangwon-do, Chungcheongbuk-do, Jeollabuk-do, and Gyeongsangbuk-do [
1].
After establishing a plan in 2005, the relocation of public institutions started in 2012 and was completed in 2019. In 2005, out of 346 institutions in the metropolitan area at the time, 176 institutions were selected for relocation. Through the consolidation of these institutions, 153 institutions were individually relocated to the innovation city or other cities. However, despite the government’s efforts, the relocated public institutions and local governments have not been able to secure long-term growth engines by cooperating with each other. The lack of public transportation infrastructure, the lack of convenience facilities such as hospitals and banks, the lack of commercial and cultural facilities, and the educational environment were found to be highly dissatisfied by executives and employees of public institutions. In addition, according to the mandatory recruitment of local talents, public institutions relocating to local areas are required to hire local talent at a certain rate or more, but there was a problem due to a shortage of talented people. In addition, the effect of distributing the population to the provinces was also weak as the executives and employees of the relocated institution move alone to work, without their families moving to the provinces.
A representative example of the policies of European countries for balanced national development can be found in the French and British public institution relocation policies. In the 1960s and the 1970s, the cases of public institution relocation in France and the United Kingdom became an exemplary case, and since then, it has been accepted as a policy tool for balanced national development in many European countries. The fact that many European countries were able to promote the relocation of public institutions to the provinces does not impair the efficiency of public service provision, even if public institutions are not located in the metropolitan area, by using advanced information and communication technologies [
31].
Another major factor is that in terms of cost reduction, moving to a province, where operating costs are relatively low, is much more effective in terms of opportunity cost at the national level. For the purpose of balanced regional development, public institutions, such as administrative institutions and public corporations, which were newly established along with the relocation of 30,000 people to local areas, were required to be located in the local areas [
32,
33].
In the late 1960s, the French government promoted a policy of intensively developing regional centers as growth hubs to prevent population concentration in Paris. In the 1990s, strategies were established by linking the development of strategically designated regional metropoles (Metropoles d’equilibres) and major regional central cities in each region with the relocation of public institutions [
33].
In other words, rather than relocating all divisions within the same institution at once, it was possible to exert a synergistic effect with the functions of other institutions through the move. Functions within the same institution were separated and distributed to various regions according to regional characteristics. In particular, the technopole, which was created for the strengthening of local science and technology capabilities and industrial development in the 1970s, was linked with the relocation of public institutions to local areas. Therefore, public R&D institutions relocating from the metropolitan area were attracted to Technopol [
34,
35].
According to the French government’s strategy, the function that creates the greatest ripple effect and synergy effect on the local economy as a result of the relocation of public institutions to the provinces was evaluated as education and research functions. The flow of population migration to Paris in search of educational opportunities was alleviated, and the competitiveness of local enterprises improved, thereby establishing a regional cluster and regional innovation system. In other words, the relocation of education and research institutes to the provinces had the effect of improving the overall R&D level of the relocated area [
36].
In 2003, the British government announced the Principles for Local Relocation of Public Institutions, which systematically stipulated the local relocation policy for public institutions, followed by Guidance on Location Choice: Choosing Locations for Government Business, in February 2006 [
37]. This guideline provides basic local relocation guidelines for all government ministries and public institutions located in the metropolitan area, and is very comprehensive and compulsory. The guidelines present the basic contents to be included in measuring the ripple effect of these three aspects of the local economy.
In 2020, the UK government announced plans to relocate some 22,000 public sector jobs in London to non-metropolitan areas within the next 10 years. The will to promote related policies was further strengthened through the Prime Minister’s address to the public in July 2021 [
38].
In the case of France and the United Kingdom, for the success of the local relocation policy of public institutions, a key function with a large decision-making authority must be transferred. In addition, it is important to transfer the core functions together with a group of high-level decision-makers. In addition, a strategy to pursue economies of scale through aggregation of similar public institutions is required, and public institutions relocating to non-metropolitan areas need to secure functional connectivity with existing downtown areas to reduce costs. Additionally, as the most important thing for the success of the local relocation policy of public institutions, along with the consistent implementation of the policy, it is necessary to have a legal system to strengthen the binding force and execution power of the local relocation policy of public institutions. As a result, the proportion of the population in the Seoul metropolitan area increased from 20% in the 1960s to more than 50% today. However, France maintains the proportion of the population in Paris and surrounding areas below 20%, and the UK maintains the proportion of population in London at 13%. Therefore, it is necessary to check Korea’s balanced national development promotion policy and take innovative improvement measures.
3.2. Balanced Development Indicator
In order to promote balanced national development, it is necessary to identify the level of imbalance between regions and the causes of imbalanced development, and various countermeasures must be prepared and managed continuously. Various indicators have been developed by several researchers to evaluate the level of disparity between these regions. The Balanced Development Indicator was developed by the Presidential Committee for Balanced National Development to measure the degree of regional development through an objective and subjective diagnosis of the region and to use it as basic data for balanced development policies to resolve regional disparities. Through the indicators, it is possible to make a comprehensive diagnosis on the regional conditions such as the degree of development, potential capacity, and the lives of residents, and to understand the effect of balanced development policies. The Presidential Committee for Balanced National Development announced the background, composition, measurement method, and future plans for the balanced development indicators in the Status of Balanced Development Indicators and Future Plans. In addition, when a certain area among the balanced development indexes is weak, it was used as data to reflect the strengthening measures in the regional projects of the government and local governments. To this end, the Korean government is providing public big data related to balanced development indicators through the National Balanced-Development Information System (NABIS).
Balanced development indicators are derived using the indicators of economy (average financial independence over 3 years) and population (rate of population increase and decrease over 40 years), and two key indicators (population and economy) are used to calculate balanced development indicators. Z-score was used for standardization, and the standard score had a mean of 0 and a standard deviation of 1.
Here, assuming that the weights of the two variables are the same, α = 0.5, and collectively add +5 to solve the problem of negative indicators. Balanced development indicators were divided into core indicators and sector indicators, and sector indicators were divided into objective indicators and subjective indicators. The core indicator consists of two indicators related to population and economy (
Table 1). Core and sector indicators are calculated using administrative statistical data such as the National Statistical Office and local government integrated finance, and the indicators were calculated using public big data published in 2020. Objective indicators consist of 41 indicators in eight categories to objectively measure and evaluate local living conditions. The eight sectors include housing, transportation, industry/jobs, education, culture/leisure, safety, environment, and health and welfare (
Table 2). Objective indicators collect and analyze various administrative statistical data to understand the overall status of 17 metropolitan cities/provinces and 226 basic local governments. The subjective indicators were composed of 28 indicators in 10 categories to understand the subjective quality of life satisfaction experienced by local residents (
Table 3). The 10 main subjective indicators are composed of: total, housing, transportation, industry/jobs, education, culture/leisure, safety, environment, health/welfare, and citizen participation/community.