South Korean metropolitan regulation easing could boost growth by 125 trillion won

A research study presented at a meeting of the Association of Local Governments in Overconcentration Control Zones suggests that relaxing regulations in South Korea's metropolitan area could generate 125 trillion won in economic growth. The analysis indicates that the growth would be distributed with 95 trillion won benefiting the metropolitan area (Seoul, Incheon, and Gyeonggi) and 30 trillion won benefiting non-metropolitan regions.

To ensure balanced national development, the study proposes establishing an independent statutory fund to transfer a portion of the metropolitan growth benefits to non-metropolitan areas, potentially increasing their growth effect to 42 trillion won.

Local leaders, including the mayors of Suwon and Goyang and the Governor of Gyeonggi Province, have called for the revision of the Metropolitan Area Readjustment Planning Act. They argue that current regulations, some dating back 44 years, hinder global competitiveness and job creation. The association plans to pursue legislative changes, address heavy taxation issues, and host an international forum on regulatory innovation in 2027.