By Lee Hyo-sik
Staff Reporter


The Roh Moo-hyun administration has placed top priority on creating balanced national development and a better redistribution of wealth. But the government seems to have made little headway in achieving its most cherished policy goal as half of the country’s 16 cities and provinces suffered a contraction in industrial output in the first six months of the year from a year ago.

Industrial production fell in eight cities and provinces, including Seoul and Kangwon Province, in the first half of the year, reflecting the prolonged sluggish domestic economy.

Seoul saw industrial production shrink 8.4 percent for the first six months to June compared to over a year ago even though overall output expanded by 3.9 percent on average across the total 16 cities and provinces, the National Statistical Office (NSO) reported on Monday.

Cheju Province recorded the largest fall of 15.2 percent in output over the same period, followed by a 7.2 percent drop in Kangwon Province, showing that the performance gap between regions is widening further.

The government has announced a series of policy measures to invigorate economic activities in areas other than the Seoul metropolitan area, including Kyonggi Province and Inchon, in a move to narrow the disparity in regional development. But such measures have yet to be translated into real businesses in the regions.

In February, the government announced that 12 ministries and 30 other government offices will be relocated from Seoul to the Yonggi-Kongju area in South Chungchong Province by 2012 to help achieve balanced regional development.

It also said in June that headquarters of 177 state-owned companies and public corporations will be moved to provincial areas from the Seoul area by the end of 2012.

The number of cities and provinces with dwindling industrial production was the highest in the first half since 1998, when the country was grappling with the Asian financial crisis, the NSO said.

In 1998, a total of 14 cities and provinces suffered a setback in economic activities as overall industrial output contracted 6.5 percent nationwide.

Production increased in all 16 municipal regions in 1999 and 2000, but industrial output of the four cities and provinces _ Seoul, Inchon, Taegu and South Chungchong Province _ decreased in 2001.

In 2002, all 16 cities and provinces enjoyed rising production, while only Kwangju recorded a drop in industrial output by 5 percent year-on-year in 2003.

Industrial output in three local areas, including Cheju Province, Kagwon Province and Pusan, declined in 2004 compared to over a year ago, according to the NSO.

Among eight cities and provinces that saw rising output during the January-June period, industrial activity in Kwangju rose by the largest margin of 46.4 percent from a year before as companies, including Samsung Electronics, began operating new industrial facilities there this year.

Kyonggi Province recorded an 11.8 percent gain, followed by gains of 10.6 percent in South Chungchong Province and 8.9 percent in Ulsan.

leehs@koreatimes.co.kr