Urbanization and Urban Policies in Korea

Copyright 2011 Korea Research Institute for Human Settlements All rights reserved. Printed in the Republic of Korea.
. No part of this book may reproduced in any manner without permission except in the case of brief quotations embodied in critical articles and reviews. For information address Korea Research Institute for Human Settlements, 254, Simin-daero, Dongan-gu, Anyang-si, Gyeonggi-do, 431-712, Korea. http://www.krihs.re.kr Urbanization and urban policies in Korea Jaegil Park, Daejong Kim, Yongseok Ko, Eunnan Kim, Keunhyun Park, and Keuntae Kim Korea Research Institute for Human Settlements 118 p. ISBN 978-89-8182-797-7
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Urbanization and Urban Policies in Korea
Research Team
Research in charge Researchers
Jaegil Park Daejong Kim Yongseok Ko Eunnan Kim Keunhyun Park Keuntae Kim
Senior Research Fellow Associate Research Fellow Associate Research Fellow Associate Research Fellow Assistant Research Fellow Assistant Research Fellow
CHAPTER1 INTRODUCTION
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Preface
The G20 Summit held in November 2010 wrapped up talks in Korea, adopting the Development Agenda as an official G20 agenda item. The development agenda suggested building the capacity of developing countries. Therefore, considering the importance of capacity building of developing countries in the national land development field, it will be one of responsibilities of Korea Research Institute for Human Settlements (KRIHS) to help developing countries by providing development experience and knowledge in Korea. In this context, KRIHS recently organized the Global Development Partnership Center (GDP Center), which is fully responsible for supporting developing countries. A lot of international organizations have supported developing countries to strengthen their capacities, and I think that it will be more effective for Korea to pull these organizations together. By looking into characteristics of national growth and development in Korea from international perspectives, these organizations can play a major role in presenting useful information about whether Korea can contribute to supporting developing countries in many ways. In particular, the World Bank has served as one of the leading international organizations in helping developing countries and maintained very close cooperation with our institute by working on a number of projects with us. As a collaborative research project with the World Bank, this research
PREFACE
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concentrates on looking back at the urbanization process and urban policies in Korea to provide useful options for developing urban policies or urbanization processes which will be the most important issue in developing countries. In the past few years, a large-scale influx of rural populations into urban areas has accelerated the urbanization process in developing countries. Therefore, finding better solutions to urbanization problems and maintaining high economic growth has become a great concern. In this regard, I think that Koreas urbanization process will be worth noticing as a good example of achieving urbanization with economic growth at the same time. Korea has actively used urbanization strategies as urban planning and urban polices in its high economic growth process. This is a markedly opposite attitude compared to those of developed countries which have thought of urbanization and urban growth negatively and focused on making urban policies for suburban development. However, even developed countries have now recognized the negative impacts of urban sprawl caused by suburbanization and are considering ways of creating more compact cities. This is another important reason why developing countries need to pay attention to the urbanization policies in Korea. Considering the great interest of developing countries in the urbanization process and urban policies in Korea, I am quite sure that the outcomes of this research will be a great help to those who are interpreting their urbanization process and developing urban policies suitable for their urban planning and economic conditions. Also, this report will give us many lessons by providing a more precise understanding of the process of economic and urban growth in Korea and suggesting more desirable directions in the future. Also, it is expected that the outcomes of this research will serve as helpful material which the World Bank can use for supporting developing countries when making urbanization policies. I think that expansion of this research subject fits the development agenda of the G20 Summit. I would like to give thanks to Senior Research Fellow Jaegil Park, Associate Research Fellows Daejong Kim, Yongseok Ko, Eunnan Kim, and Assistant Research Fellows Keunhyun Park and Keuntae Kim. Despite the short time of six months, they put all their efforts and passion into collecting and analyzing information about ur-
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banization and urban policies for this report. Also, I would like to express my deep appreciation to the advisory committee members of this research: Professor Il Kwon (Chungju University), Dr. Seonki Kim (Senior Research Fellow of the Korea Research Institute of Local Administration), Dr. Youngkook Kim (Associate Research Fellow of the Korea Transport Institute), and Dr. Inok Hong (Head of the Research Division in the Korea Center for City and Environmental Research). Finally, I would like to express my thanks to Vice President of KRIHS Kyounghwan Sohn and other commissioners who examined the outcomes of this report.
Yangho Park President Korea Research Institute for Human Settlements
PREFACE
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Summary
Urbanization and urban policies in Korea
Jaegil Park, Daejong Kim, Yongseok Ko, Eunnan Kim, Keunhyun Park, Keuntae Kim
The Aims and Composition of this study
In the coming decades, rapid urbanization will be the greatest challenge to developing countries. It is very urgent for them to make all the urban policy efforts harmonized with the spatial characteristics of sustainable economic growth. The World Bank has been very passionate to guide the developing countries by viewing the urbanization process as positive for economic growth and social development. Concerning this matter, the Korean experience seems to be very meaningful as it has succeeded in economic growth despite the high speed of its own urbanization. The World Bank wanted to test the Urbanization Hypothesis elaborated for developing countries and asked KRIHS to do a simulative research by applying the Urbanization Hypothesis to the Korean urbanization process as well as by reviewing the urbanization through indicators. KRIHS welcomed the World Banks offer because it would be a good opportunity not only to helping develop countries globally, but also to find any implications for future urban policy directions by looking back at past experiences. This study consists of 5 chapters including the introduction. Chapter 2 outlines the Urbanization Hypothesis and analytical framework for this study. Chapter 3 analyzes the past Korean urbanization policy frameworks. Chapter 4 diagnoses Korean urbanization through some selected indicators. The last chapter describes the conclusions of this study.
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The theoretical background and analytic framework
In chapter 2, the Urbanization Hypothesis of the World Bank is reviewed and interpreted as the theoretical background and the analytic tool of this study. According to the preceding research of the World Bank, all the policy efforts to counter urbanization can be categorized as institution, infrastructure, and intervention (the 3 Is, which corresponding with the spatial characteristics of economic growth, namely density, distance, division (the 3 Ds). Evolving the urbanization stages, urbanization requires three kinds of policies (beginning with institution followed by infrastructure, and next by intervention) with each stage being cumulative and more deliberate. On a national and regional scale, the policies for these categories stand for urban planning and management, urban connectivity, and urban livability. The World Bank also developed 59 indicators across the 4 policy fields to diagnose the urbanization process. This study reviews the Korean urbanization process in 4 adjusted policy areas by separating housing supply from urban planning and management, and diagnoses the process with 8 selected indicators, which are obtainable from annual serial data.
The review of the past Korean urbanization process
The Korean urbanization process can be also divided into 3 stages: incipient, intermediate, and advanced, through which the changes in urban planning and land management, housing supply policies, transportation policies, and slum housing policies were reviewed. The findings are as follows. Concerning urban planning and land management, the land development programs were established first, followed by a land use regulation system, and then a comprehensive urban planning system. At the beginning of the advanced stage, there appears a new tendency for integration in the diverged system. It is also noted that Korean society suffered very much from its housing shortage with no apparent housing polices during the incipient and intermediate urbanization period, but housing shortage was somewhat solved by the implementation of the massive housing construction plans in the early 1990s. The transportation system has been constructed by finishing the railroad system at the incipient stage, followed by the express highway system in intermediate urbanization period, and then followed by the metropolitan highway system and the high speed railroad system in the
SUMMARY
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advanced period. Needed as an intervention policy in response to the spatial dimension Division in urban areas, slum housing clearance and relocation has been tried during all the intermediate period but with no success. Then in the early advanced period, slums deteriorated and the dwellers were scattered around the city region being affected by the strong market forces in the residential redevelopment projects. It was also confirmed that throughout the urbanization process, urban planning and land management had been considered as the most important urbanization policy areas.
The exemplary diagnosis of Korean urbanization through the 8 indicators
In chapter 4, Korean urbanization from the intermediate to the advanced stages was evaluated by the 8 indicators compiled from 8 items, which were related with 6 parts of 3 fields including urban portfolio, urban planning and management, and urban connectivity. The data were assembled and structured in serial GIS layers by the 167 jurisdictions of Si and Kun (City and County), and analyzed by the auto- correlative method. The urban portfolio change was diagnosed through the 3 indicators of urbanization rate, city size distribution, and the manufacturing employment ratio, revealing that at the incipient stage the large city had grown at first, and at the advanced stage it appeared that metropolitanization occurred by populations migrating from the core central cities to surrounding medium large cities. The Urban Planning and Management area was diagnosed by the three indicators - water supply, urban land, and housing supply ratio. Urban land had been supplied stably by the introduction of the complete land purchasing method in 1980, and the housing shortage was lessened by the implementation of the massive housing construction plan around 1990. Urban connectivity was diagnosed through the indicators of both registered vehicles per road length and the arrival time to the nearest expressway. As the number of vehicles grows, metropolitanization seems to be facilitated, manifesting the importance of mass transportation systems. Through the indicator of the arrival time to the closest interchange, it is noted that the express highway system covered almost the entire country as daily-life infrastructure. Also, the introduction of high speed railroad system such as the Korea Train Express (KTX) line played a major role in shrinking the entire country into a half-day life zone. The policies undertaken in Korea can be read by reviewing of the diagnosis through the 8 indicators.
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Conclusion
Chapter 5 presents the main conclusions as well as by-products achieved through this study and the following research issues. The main conclusions are as follows: the Urbanization Hypothesis is confirmed to be very useful and helpful in reviewing Korean urbanization since the early 1900s. It should be also stated that the analysis of urbanization policies and the diagnosis by indicators of the Korean urbanization process are both very meaningful. This study is expected to be utilized as one text to give an overall view of the urbanization policies according to the stages of urbanization. It could be also reviewed by the World Bank to complement its Urbanization Hypothesis and the indicators. Finally, following studies are suggested in supporting urbanization policies of developing countries: societal background, governance system, existing urban planning and management system etc.
Keywords urbanization, urban policy, developing country, the World Bank
SUMMARY
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Contents
1. INTRODUCTION........................................................................... 17
1. Backgrounds and Objectives.................................................................... 17 2. The Scope of Research and Research Methodology............................... 19
1) The Scope of Research.............................................................................. 2) Research Methodology............................................................................... 19 19
3. Brief Review of Precedent Research........................................................
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4. Flow of Research....................................................................................... 20
2. THEORETICAL AND ANALYTIC FRAMEWORK....................... 23

1. Economic Growth and Urbanization Strategies.......................................
1) Basic Assumptions...................................................................................... 2) Urbanization Hypothesis............................................................................. 1) Incipient Urbanization................................................................................. 2) Intermediate Urbanization.......................................................................... 3) Advanced Urbanization............................................................................... 4) Summary..................................................................................................... 1) Classifying Urban Policy Areas................................................................... 2) Diagnostic Urbanization Indicators.............................................................
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23 24 25 25 26 26 27 27
2. Urban Policy Features in Different Urbanization Phases......................... 25
3. Classifying Urban Policy Areas and Diagnostic Indicators....................... 27
3. URBANIZATION POLICIES IN KOREA...................................... 33

1. Backgrounds of Urbanization Policies in Korea.......................................
1) Economic Growth and Infrastructure Investment....................................... 2) Urbanization................................................................................................ 3) Economic and National Development Policies...........................................
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33 39 45
2. Urbanization Policies in Korea..................................................................

1) Urban Planning and Land Management..................................................... 2) Housing Supply Policies.............................................................................
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3) Transportation Policies............................................................................... 4) Residential Policies in Low-income Neighborhoods..................................
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3. Assessment of Urbanization Policies in Korea and World Banks esis Urbanization hypothesis........................................................................... 69
1) Assessment of Urbanization Policies in Korea........................................... 2) Review of World Banks Urbanization Hypothesis..................................... 69 72
4. EXEMPLIFICATION OF INDICATOR DIAGNOSIS.................... 77

1. Meanings of Indicator-based Diagnosis and Methodology......................
1) Meanings of Indicator-based Diagnosis..................................................... 2) A Method of Indicator-based Diagnosis...................................................... 1) Urban Portfolio............................................................................................ 2) Urban Planning and Management.............................................................. 3) Urban Connectivity......................................................................................
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77 78 79 87 95
2. Indicator-based Diagnosis......................................................................... 79
3. Indicator-based Diagnosis Results and Considerations for Construction tors of Diagnostic Indicators............................................................................. 100
1) Indicator Diagnosis Results........................................................................ 100 2) Consideration for Diagnostic Indicators...................................................... 100
5. CONCLUSION............................................................................. 103
1. Main Conclusions..................................................................................... 103 2. Application of Research Outcomes and Further Research...................... 105
1) Application of Research Outcomes............................................................ 105 2) Directions for Further Research................................................................. 106
REFERENCES.............................................................................................. 109 APPENDIX: URBANIZATION POLICIES IN KOREA.................................... 111
CONTENTS
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Tables & Figures

Table 1 Table 2 Table 3 Table 4 Table 5 Table 6 Table 7 Table 8 Table 9 Table 10 Table 11 Table 12 Table 13 Table 14 Table 15 Table 16 Table 17 Table 18 Table 19 An I for a D: A Rule of Thumb for Calibrating the Policy Response Urbanization Indicators by World Bank Selected Indicators for Diagnosing Urbanization Process in Korea Social Development Indicator: Economic Growth Social Development Indicator: Basic Service Infrastructure Social Development Indicator: Transportation and Communication Change of Urbanization Rate (1960-2005) Population Change of Metropolitan Areas Since 1990 Characteristics of the Economic Development Plans in Korea The National Territory Development Plans in Korea (1972-2020) Departmental/Time-periodic Urbanization Policies Assessment of Urbanization Policy Responses Based on World Banks Urbanization Hypothesis Selected Indicators for Diagnosing Urbanization Change of Urbanization Rate in 6 Regions Diagnostic Results: Urban Portfolio Urban Land Change by Land Use Categories Change of Housing Supply Ratio by Regions Diagnostic Results: Urban Planning and Management Diagnostic Results: Urban Connectivity 24 29 31 35 37 38 43 44 46 48 70 75 78 80 87 90 92 94 99 112 113 21 34 34 34 36 36 36 36 37 37 39 39 39
Appendix Table 1 Calculating the Land Compensation Price Appendix Table 2 Land Acquisition Decisions and Appeals in Korea Figure 1 Figure 2 Figure 3 Figure 4 Figure 5 Figure 6 Figure 7 Figure 8 Figure 9 Figure 10 Figure 11 Figure 12 Figure 13 Research Flow Diagram Nominal GDP (billion $) Nominal GNI per Capita ($) Distribution of Industrial Output Value (Nominal Amount, %) The Total Electric Power (60-09) The No. of Hospital Beds(65-07) Housing Supply (62-09) Water Supply (60-08) The No. of Students (60-09) The No. of Education Facilities (60-09) The Length of Roads and Railroads (60-08) The No. of Vehicles (Thousands, 60-09) The Number of Telephone Subscribers and Telephone Supply Rate (60-09)
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Figure 14 Figure 15 Figure 16 Figure 17 Figure 18 Figure 19 Figure 20 Figure 21 Figure 22 Figure 23 Figure 24 Figure 25 Figure 26 Figure 27 Figure 28 Figure 29 Figure 30 Figure 31 Figure 32 Figure 33 Figure 34 Figure 35 Figure 36 Figure 37 Figure 38 Figure 39
Urbanization Rate of Korea (1920~2005) Moran s I Statistic of Spatial Autocorrelation Change of Urbanization Rate in 6 Regions Morans I Analysis(Urbanization Rate) Change in Urbanization Rate of Cities and Counties(1960~2005) The No. of Cities by City Size Proportion of the Population by City Size Change in Distribution of Cities by Size (1960~2005) Morans I Analysis Result (Size Distribution of Cities) Change in the share of Manufacturing Employees at the City-county Level (1960, 1985, 2005) Morans I Analysis Result (Proportion of Manufacturing Employees) The Population Using Water and The Water Supply Ratio Water Supply per capita per day and Capacity Change of Water Supply Ratio (1971-2005) Morans I Analysis Result (Water Supply Ratio) Urban Land Change at the City-county level (1970-2009) Morans I Analysis Results (Urban Land Area) Change in the Number of Housing Units and the Housing Supply Ratio (1962~2008) Change of Housing Supply Ratios by Regions Change of Housing Supply Ratio (1970-2005) Morans I Analysis Result (Housing Supply Ratio) Change in the Number of Registered Vehicles per Road Length Change in the Number of Registered Vehicles per Road Length at the Citycounty Level Morans I Analysis Result (The Number of Vehicles per Road Length) Land Area Accessible to the Closest Expressway Interchange According to Arrival Time Change of Area by Arrival Time to the Closest Expressway Interchange (1970-2010) andTopographical Map
40 79 81 81 82 83 83 84 84 85 86 88 88 88 89 90 91 91 92 93 94 95 96 97 97 98 115 116
Appendix Figure 1 The Site Plan of the Residential Redevelopment Project in Singye-dong, Yongsan-gu, Seoul Appendix Figure 2 Geothermal System Diagram
CONTENTS
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INTRODUCTION
By request of the World Bank which has supported urbanization policies of developing countries, this study focuses on confirming the validity of the World Banks urbanization hypothesis through an analysis of urban policies implemented throughout urbanization processes in Korea. Also, this study will diagnose urbanization processes and urban policies in Korea as a hypothesis testing example by using the World Banks urbanization indicators.
1. Background and Objectives
According to the 2005 Revision of the UN World Urbanization Prospects report and the UN State of the World Population 2007 report, the population in urban area will increase from 3.2 billion (49 percent of the world population) in 2005 to 4.9 billion (60 percent of the world population) in 2030. 93 percent of the population increments will consist of the population of urban areas in developing countries. Developing countries are now concerned about how to relate urbanization with economic growth. This concern is not limited to urban issues which developing countries face. It also relates to sustainable growth of the global community. As an international organization which aims to support economic growth for developing countries, the World Bank, founded in 1944, has been concerned about what future urbanization policies developing countries should establish in the face of the rapid increase in urban population. In order to renew its urbanization perspectives, the World Bank recognizes that the urban policies of developed countries - which have denied the congestion of urban population and focused on decentralizing urban population to suburban areas - are not suitable for solving urban problems in developing countries. Because urban policies in developed countries have been developed toward creating car-oriented urban environments, they have made urban areas lose their vitality and wasted too much energy and too many resources while achieving policy goals.
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Instead, the World Bank suggests that the urban policies in Korea which concentrate population and functions in urban areas and promote industrialization will provide more helpful implications as solutions to urban problems in developing countries1. Realizing that the urbanization policies formed in Korea had positive impacts on strong economic growth, the World Bank has been thinking about urbanization policies suitable for developing countries. Based on this concept, the World Bank recently developed urbanization indicators for evaluating whether urbanization policies2 in developing countries are carried out in a reasonable way. Urbanization indicators which are based on the urbanization hypothesis help check the progress of urbanization and monitor the urban policies of each country. In order for developing countries to understand and implement these attempts at supporting their urbanization policies, the World Bank requested that the Korea Research Institute for Human Settlements (KRIHS) conduct a simulation research which shows exemplar diagnosis results of urbanization and urban policies in Korea by using urbanization indicators and the World Banks urbanization hypothesis. Accepting World Banks request, KRIHS conducted research to diagnose the urbanization process in Korea through urban indicators and interpret Koreas urban policies based on the World Banks urbanization hypothesis. To complement and develop the World Banks various experiments, this research will verify the validity of the urbanization hypothesis and urbanization indicators through an analysis of the urbanization experience in Korea. Also, this research will serve as a new experiment for interpreting the urbanization process and urban policies which have been implemented in Korea and which have contributed to establishing the new direction of Koreas future urban policies.
1 Developed countries such as US and England are now spreading out New Urbanism movement including Smart Growth which breaks from suburban development and attracts population and employment back to urban core areas. Semi-developed countries like Korea, however, have achieved strong economic growth by creating compact cities. For these reasons, developing countries are now interested in Korea urban polices as their urbanization models. 2 In this research, the term urbanization policies does not mean urbanization phenomena which explain a process of immigrating rural population to urban areas and rapid urban population increase. It means public policies which help people to see cities as communities and spaces created by their own visions in response to social change.
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2. The Scope of Research and Research Methodology

1) The Scope of Research
The temporal scope of this research dates back to the year of Korean independence (1945) as well as the time when modernization began. This covers the periods ranging from the dawning of urbanization in the end of Chosun dynasty to the time of immigration of rural populations to urban areas as well as the time of the industrialization of Koreas cities. Therefore, this research will define the temporal extent ranging from Koreas period of opening ports (1876) to the present (2010). The spatial scope of this research generally covers the southern part of the Korean peninsula, which belongs to South Korea, but also contains the entire Korean peninsula to conduct a research literature review on urbanization before the Independence of Korea. This research deals with urbanization and urban policies at the national level, and the data will be collected at the city and county level. Time series analysis will be used for analyzing the collected data, and its interpretation will be made at the national and regional level.
2) Research Methodology
This research focuses on applying the World Banks urbanization hypothesis to urbanization and urban policy experience in Korea. Studying the validity of the World Banks hypothesis itself is not a part of this research. The analysis of urban policies in Korea will be based on the World Banks urbanization hypothesis, and urbanization indicators will be used to diagnose urbanization processes throughout Korea urban planning history. Koreas urban policies in the urbanization process will be conducted through a research literature review, and the data collected at the city and county level in a time sequence will be used to construct the database in order to diagnose the urbanization process. Morans Index analysis will be used to interpret the urban transformations in Korea.
3. Brief Review of Precedent Research
The World Bank report of Reshaping Economic Geography has a direct in-
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fluence on this research. The report explains the phenomenon in which market force is shown in a geospatial manner by providing three components - Density, Distance, and Division. Using market force, the report mentions that developing countries as well as the community of nations can find out the direction of spatial policies as solutions for urban poverty and underdevelopment in underdeveloped countries. Part one in this report discusses geographic transformation influenced by economic activities in terms of density, distance, and division. Part two explains in an analytic manner that these spatial transformations are led by agglomeration, migration, and specialization influenced by market forces. Part three shows that institution, infrastructure, and intervention are required to implement urbanization, regional integration, and nationwide development based on each spatial hierarchy - local, national, and world. This research also uses many existing studies on urbanization and urban policies. These studies are categorized into two kinds - studies before and after Korean independence. Professor Sohns studies made in 1982 and 1996 are used for studying urbanization and urban policies before Koreas independence and provide a systematic approach for explaining social change during the Koreas opening-port period and colonial period. For studying urbanization and urban policies after Korea Independent period, The 50 years of National Development in Korea(1996) and The 60 years of National Development in Korea(2008) by KRIHS are used. These reports serve as basic reading materials for understanding research achievements and outcomes in urban, land use, housing, and transportation policies throughout urban development history in Korea.
4. Flow of Research
The research flow diagram is shown in Figure 1. Chapter 2 mentions that the urbanization strategies developed by considering spatial characteristics of economic growth should be used as the urbanization hypothesis of developing countries and discusses the contents of the hypothesis in detail. Chapter 2 also explains challenges in response to the incipient, intermediate, and advanced phases of urbanization based on existing World Bank reports. Finally, urban policy fields to analyze and urbanization indicators will be determined as a basic framework for analyzing the urbanization process in Korea.
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Figure 1. Research Flow Diagram
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Chapter 3 divides urbanization process of Korea into three phases - incipient, intermediate, and advanced urbanization - and explains their characteristics. In this research, urban policy fields to which the World Banks urbanization hypothesis can be applied will consist of Urban Planning and Land Management, Housing Supply Policies, Transportation Policies, and Deteriorated Residential Policies in Low-income Neighborhoods in Korea. Chapter 4 deals with diagnosis of urbanization transformations during the intermediate and advanced urbanization phases by using eight indicators selected among the World Banks urbanization indicators and timesequence data for each selected indicator. Finally, Chapter 5 concludes this research and suggests further research areas.
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THEORETICAL AND ANALYTIC FRAMEWORK
Chapter 2 discusses theoretical backgrounds and contents of the World Banks urbanization hypothesis and urbanization indicators. Based on the urbanization hypothesis, Chapter 2 develops a basic framework for analyzing urban policies which have been implemented in Korea and determines indicators for diagnosis of the urbanization process.
1. Economic Growth and Urbanization Strategies

1) Basic Assumptions
In order to support implementation of urbanization policies suitable for economic growth principles, the World Bank developed the urbanization hypothesis as a new approach toward solving urbanization issues in developing countries. As theoretical premises for forming the hypothesis, the World Bank provides three spatial traits of economic growth. The first trait is that economic growth should not let any areas suffer from difficulties such as poverty or deterioration even though this does not always bring about the prosperity of the entire areas. Based on this aspects, good policies help achieve both concentration of economic activities on urban areas and improvement of quality of life. Second, economic growth should lead to comprehensive growth throughout the country even if a government allows imbalanced economic growth for specific areas. Also, comprehensive growth can be achieved by economic integration of both underdeveloped and developed areas at the regional level. Finally, economic integration can be made by agglomeration, migration, and specialization - that is, market force. Therefore, any policies should not act against the market, and economic growth and sustainability can be determined according to coordination
CHAPTER2 THEORETICAL AND ANALYTIC FRAMEWORK
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between market and government.1 Thus, the World Banks urbanization hypothesis assumes that every citizen including those in the low-income class and the entire areas including deteriorated areas, can attain the goal of economic growth through good policies and coordination between market and government.
2) Urbanization Hypothesis
The World Banks urbanization hypothesis can be defined as a sequential and cumulative response of three policy instruments, which are institution, infrastructure, and intervention to three spatial traits of economic growth - density, distance, and division. For one-dimensional problems, the policy instrument in response to density differentiation should be institution which can be applied regardless of spatial differentiation. In the case of a two-dimensional challenge including density and distance, the policy instrument of infrastructure should be added to that of institution. Because rapid urbanization produces excessively overcrowded areas and threatens agglomeration economics, investment in transportation infrastructure maximizes the advantages of density by creating high-density and highly-connected areas. For three-dimensional predicaments including division, intervention should be added to the other two policy instruments. Using intervention, governments can find solutions to the separation of deteriorated areas from other urban areas.
Table 1. An I for a D: A Rule of Thumb for Calibrating the Policy Response Complexity of challenge One-dimensional problem Two-dimensional challenge Three-dimensional predicament The World Bank(2009) Urbanization Phase Incipient Urbanization Intermediate Urbanization Advanced Urbanization Institution :Spatially blind Infrastructure : Spatially connective Intervention : Spatially targeted
1 World Bank. 2009: pp. 20-21
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Governments can facilitate the spatial transformations that lie behind these changes. Depending on the stage of urbanization, sequencing and priority-setting require paying attention to different aspects of the geographic transformation.2 Institution is a policy instrument which should be implemented first and is applicable to any urban areas or policy issues. Infrastructure policies should be put in the right place in a timely manner. Intervention should be used least and last. These outlined principles determine policy priority-setting for different phases of urbanization and also serve as urbanization strategies.
2. Urban Policy Features in Different Urbanization Phases3
1) Incipient Urbanization
In the incipient urbanization phase, most areas are still rural, and policies should be neutral. Urban planning and land use policies should be universal enough to apply to any areas. Good land use policies are important and should be policies to offer everyone basic services such as security, education, welfare, and sanitation.
2) Intermediate Urbanization
In this phase, urbanization becomes accelerated, and the benefits of rising economic density are widely shared by connective infrastructure. Industrialization changes land use patterns, concentrates economic activities on specific urban areas, and moves goods and services around quickly. Land use regulations become influential factors in determining location decisions, so institution is still a first-priority among other policy instruments. Spatially blind social services should be continuously required as part of rural-urban integration. People are pulled to cities by agglomeration economies, not pushed out by the lack of schools, health services, and public security in rural areas. However, even if these services are provided, transportation costs can rise quickly because of growing conges2 Ibid. p. 25 3 The World Bank report (2009: 25-27) is used to explain this section.
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tion, affecting the location choices of entrepreneurs. In this phase, central governments should offer connective infrastructure so that prosperity is widely shared and help coordinate infrastructure investments by widening administrative territories.
3) Advanced Urbanization
In the highly-urbanized areas, slum problems have a priority, so intervention along with institution and infrastructure may be inevitable in the advanced urbanization phase. People generally decide where to live by considering where they can have easy access to high-quality basic services and learning where such places are. However, if there are slums among livable neighborhoods, urban economies cannot reach them. Generally, slum-improvement programs do not have a priority at the earlier phases, but they become important in this urbanization phase. Considering implications from slum-improvement programs, it is not enough for governments to apply targeted intervention policies to specific urban areas. For fundamental solutions, if infrastructure and institution related to land use or basic services are not implemented properly, targeted intervention may not have any positive effects.
4) Summary
The dimension policy challenges turn one dimension into three dimensions as urbanization progresses. For each urbanization phase, three policy instruments - institution, infrastructure, and intervention - should be considered when implementing urban policies through coordination between the central government and local municipalities at the national, regional, and city level. Considering urbanization policy experience so far, institution should come first as a policy instrument applicable to any areas, and infrastructure investment should be put in the second place. Finally, targeted intervention should be applied to specific areas only when the other two policy instruments cannot solve complex urban policy challenges. Even when intervention has a priority, an effort to improve institution and infrastructure should be used together.
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3. Classifying Urban Policy Areas and Diagnostic Indicators

1) Classifying Urban Policy Areas
The World Bank defines three policy areas and has developed urbanization indicators for each area. The World Bank categorizes three policy areas which implement policy instruments (Institution, Infrastructure, and Intervention) in response to each urbanization phase mentioned above: Urban Planning and Management, Urban Connectivity, and Urban Livability. First, Urban Planning and Management is defined as institutions which affect land use policies or patterns within urbanized or urbanizing areas. It encourages the land use transformation of rural areas into urban areas and reflects market demands for urban lands. It also includes policies for ensuring basic infrastructures such as water supply, public health, and electricity. Second, Urban Connectivity means building connective infrastructure such as transportation and telecommunication. It also promotes communication among cities and specializations by reducing transaction costs. Finally, Urban Livability is defined as interventions whose purpose is to improve livability in deteriorated areas separated from other urbanized or urbanizing areas. In this study, the World Banks policy areas should be slightly adjusted considering the urban policies and planning experience in Korea. This study divides the Urban Planning and Management area into two policy subareas - Urban Planning and Land Management and Housing Supply Policy. In the Urban Connectivity area, transportation policies which encourage the making of connections among cities should be analyzed. Finally, Low-income Neighborhood Districts in Metropolitan Area should be studied for interpreting Urban Livability in Korea.
2) Diagnostic Urbanization Indicators (1) World Banks Urbanization Indicators
As shown in Table 2, the World Banks urbanization indicators consist of four policy areas - Urban Portfolio, Urban Planning and Management, Urban Connectivity, Urban Livability - which consider the three policy instruments of Institu-
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tion, Infrastructure, and Intervention as well as Urbanization Progress. The four urbanization indicators can be used as analytic tools for policy bottlenecks in detail while benchmarking urbanization outcomes at the national, regional, and city level. Each urbanization indicators has several analytic items. The analytic items related to Urban Portfolio are grouped into two sections - urbanization progress and urban economy. The urbanization progress section consists of nine detailed items - three Extent of Urbanization, five Functions of cities, and one Where do poor people live. Urban economy includes four Productivity and one Employment Composition. These items focus on showing urban transformation and, in some cases, prove how an urban economy in certain cities is composed. Second, Urban Planning and Management serves as a core part of the urbanization indicator and focuses on analyzing whether basic infrastructures4 and services are well provided to support land use within urban areas. This indicator consists of Land Use and Transformation and Infrastructure sections. The Land Use Transformation section includes eleven analytic items - eight Rural-Urban Transformations and three Urban Form and Efficiency items. The Infrastructure section is compromised of ten analytic items - two Accessibility, six Financing, and two Example of Water Provision analytic items. Third, Urban Connectivity diagnoses the extent of connectivity among rural areas as well as urban areas. This indicator includes Connecting the Urban Portfolio and Connecting the City. The Connecting the Urban Portfolio section consists of eight analytic items, which measure the scale and cost of the mutual interaction between cities - three Scale of Interaction and five Costs of Interaction. The Connecting the City section deals with congestion, productivity of infrastructure, transportation costs, and environmental impact and has twelve analytic items: five Efficiency, two Cost and Affordability, and three Sustainability, and two Institutions. Finally, Urban Livability helps explain whether slums result from the rapid influx of population caused by urban economic growth or rigidity of government poli4 When basic infrastructures or services have poor accessibility, urbanization policies will depend upon whether poor accessibility derives from poor funding support or insufficient administrative capability.
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Table 2. Urbanization Indicators by World Bank (4 Policy Areas, 7 Departments, 18 Sections, and 59 Indicators) Policy Area Department Sections and Indicators Extent of Urbanization(3) Extent of Urbanization (9) Urban Portfolio (14) Urban Economy (5) Functions of Cities(5) Where do Poor People Live(1) Productivity(4) Employment Composition(1) Rural-Urban Transformation(3) Urban Form and Efficiency(8) Accessibility(2) Infrastructure (10) Financing(6) Example of Water Provision(2) Connecting the Urban Portfolio(8) Scale of Interaction(3) Cost of Interaction(5) Efficiency(5) Connecting the City (12) Costs and Affordability(2) Sustainability(3) Institutions(2) Urban Livability (4) Livability (4) Extent of Slums(1) Slum Formation(3)
Land Use and Transformation(11) Urban Planning and Management (21)
Urban Connectivity (20)
cies for land market.5 This indicator has four analytic items - one Extent of Slums, and three Slum Formation. The World Bank has developed 7 departments, 18 sections, and 59 indicators in response to four policy areas - Urban Portfolio, Urban Planning and Management, Urban Connectivity, and Urban Livability
5 According to the World Bank, a rapid influx of population into urban areas means that there are a lot of people looking for housing and basic services. If urbanization proceeds properly, people will overcome poverty. This will be a good indication of urbanization and policies because a larger population and urban economic growth naturally result in a good indicator. If slums result from a rigidity of policies for the land market, this may mean that poor people stay in cities for a long term. This can be recognized in old slums. However, the World Bank insists that it is policy failures rather than market forces that lead to urbanization.
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(2) Defining Diagnostic Urbanization Indicators of Korea
Method In order to select indicators suitable for diagnosing the urbanization process in Korea, this study singles out the World Banks indicators which make it easy to get annual statistic data at the city and regional level. Also, this study divides the World Banks four policy areas into seven detailed policy departments and suggests more than one indicator for each policy department. However, in the case of indicators related to slums as of the year 2000, there are no residential areas exactly defined as slums in Korea, and Korea does not have any annual statistic data related to slums. Therefore, the slums indicators will be excluded when selecting diagnostic indicators. Although the World Bank does not include then, this study will include indicators related to housing supply policies which have been considered important throughout urban planning and policy history of Korea. Korea has focused on increasing the number of residential units to solve housing shortages so far because the Korean government has thought that maintaining the optimal housing supply ratio means providing people with opportunities to purchase or rent their houses without any barriers. Results Using the methodology mentioned above, three policy areas, six departments, and eight sections are suggested. To diagnose the urbanization process in Korean cities, eight final indicators are drawn for each section. This means that this study will consider one new indicator for interpreting the urbanization process in Korean cities while including seven indicators picked up among the World Banks urbanization indicators. On the other hand, the spatial scope and temporal characteristic of the data survey for analyzing the indicators and interpreting urbanization in Korea can be summarized as follows: First, this study will construct a database for analysis of the spatial transformation within urban areas in Korea by using time-series statistic data at the city and county level. Second, the data range in this study is statistical data available from 1960 or 1970 to 2010. However, for employment data, this study will take 1960, 1981, and 2005 employment data into consideration for a comparative analysis of employment data.
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Table 3. Selected Indicators for Diagnosing Urbanization Process in Korea Survey Unit City/ County City/ County City/ County City/ County City/ County City/ County City/ County City/ County Timeseries Data 60-05
Policy Area
Department
Section Extent of Urbanization Functions of Cities Employment Composition Rural-urban Transformation Accessibility
Code
Indicator
W-1
Urbanization Ratio City Size Distribution Employment within urban areas Urban Land Use Transformation Housing Supply Ratio Water Supply Ratio Distance to Near Highway Number of Registered Vehicles per Road Area Unit
Urban Portfolio (14)
Extent of Urbanization
W-2
60-05
Urban Economy Land Use Urban Planning and Management (21)
W-3
60,85,05
W-4
75-09
K-1
70-05
Infrastructure
Example of Water Provision Connecting the Urban Portfolio Efficiency
W-5
70-05
Urban Livability (4)
Connecting the Urban Portfolio Connecting the City
W-6
70-10
W-7
70-10
W - Indicators selected among World Banks urbanization indicators K - Indicators which are not included in the World Banks indicator list but have been considered important throughout urbanization policies in Korea
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URBANIZATION POLICIES IN KOREA
Chapter 3 examines the urbanization policies of Korea corresponding to the World Banks urbanization hypothesis. The results will be used to review the validity of the hypothesis. Urbanization policies in Korea will be analyzed on the basis of the four policy areas suggested in the previous chapter for each urbanization phase.
1. Background of Urbanization Policies in Korea

1) Economic Growth and Infrastructure Investment1 (1) Economic Growth
Korea has achieved high economic growth enough to attract great deal of interest from the rest of the world since the 1960s. Korea was so poor until the 1950s that people had a lot of trouble having one meal a day. In 1962, the Gross National Income (GNI) of Korea was only 76 dollars, and the total amount of national exports was 55 million dollars.2 The Korean government established the first National Economic Development Plan to attain quantity expansion of economic scales and high growth. Due to the nationwide plan, Korea began to make great economic progress enough to achieve an average rate of economic growth of 22.6 percent in the late 1960s. High economic growth continued from the 1960s up to the 2000s, and Korea became a country with the 15th largest GDP and the 54th biggest per capita income in the world. Also, Korea
1 For statistical data, Statistics Korea homepage (http://kostat.go.kr) and the report 60 years of Korea Independence by Number published by the Korea Bank are used. 2 Seongsoo Kim. 1995. Development of Korea Economy for the era of globalization.
CHAPTER3 URBANIZATION POLICIES IN KOREA
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joined the Organization for Economic Cooperation and Development (OECD) in 1996 and hosted the G20 Summit in 2010. In Figures 2 and 3, increase in Koreas GDP and changes in the economic structure show high growth for the past 50 years. As of 2009, the nominal GDP of Korea was 830 billion dollars which is 420 times larger than the GDP in 1960. Also, the nominal GNI per capita in 2009 was $17,175 which is approximately 220 times more than that in 1960. Considering the nominal amount, industrial structure has greatly changed from 36.8% of agriculture and fishery, 15.9% of manufacturing industries, and 43.25% of service industries to 2.6%, 28.0%, and 60.7% respectively, which indicates a radical transformation from an agricultural country to an industrial country. Also, while industrial structure moved from primary into secondary industries, tertiary (service) industries have been developed at a steady pace. In particular, as shown in Figure 4, the
Figure 2. Nominal GDP (billion $) (60-09)
Figure 3. Nominal GNI per Capita ($)
Figure 4. Distribution of Industrial Output Value (Nominal Amount, %)
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Table 4. Social Development Indicators: Economic Growth Categories Population (Thousand) Nominal GDP (Billion Dollar) Nominal GNI per capita (Dollar) Agriculture/ Fishery Industrial Structure (Nominal Amount,%) Manufacture Electricity/ Gas/ Water Supply/ Construction Service 1960 25,012 20 79 36.8 15.9 1970 32,241 81 254 29.2 19.6 1980 38,214 638 1,645 16.2 26.4 1990 42,869 2,637 6,147 8.9 28.1 2000 47,008 5,118 10,841 4.9 29.8 2004 48,294 6,801 14,162 3.7 29.1 2009 48,747 8,329 17,175 2.6 28.0
4.1
5.5
10.2
13.4
11.0
11.7
8.7
43.2
44.7
47.3
49.5
54.4
55.5
60.7
Korea Bank. 2005. The 60 Years of Korea Independence by Number and Statistics Korea Homepage (http://kostat.go.kr)
knowledge industry (the quaternary industry) was rapidly developed among service industries. Since the 1990s, the roles of consulting companies such as service marketing and design have been greatly emphasized, and various kinds of personal service industries have greatly developed to meet consumers diverse demands.
(2) Extensive Infrastructure Investment Basic Service Infrastructure
During the last five decades, Korea has made a lot of effort to provide the major infrastructures such as electricity, housing, water supply, school, and welfare facilities. As shown in Figure 5, the total amount of electric power in 2009 was 422,355 GWh which was approximately 220 times more than the total amount in 1960. The electric power consumption per capita was 7,922 Wh per person which shows an increase of about 170 times over that in 1960. According to Figure 7, the number of residential units in 1960 was about 3.6 million, but increased by over 4.7 times in 1990 to 17 million residential units. In the 1980s, Korea suffered from a housing shortage problem because of a very low housing
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supply ratio (71 to 73 percent). However, a lot of residential units have been provided since 1990, and housing shortage problems have greatly lessened. Figure 8 shows a change in the water supply rate from 1960 to 2008. In 1960, the estimated population served by water supply was only 4.2 million, but increased to 46.7 million by 2008. This means that water supply ratio greatly increases from 16.9% to 94.1% over 50 years. Figure 9 indicates that the number of students increased from 3.6 million for elementary, 5 million for middle school, 2.6 million for high school, and 1 million for undergraduate and graduate in 1960 to 3.5 million, 2 million, 1.9 million, and 2.9 million in 2009 respectively. This means that the number of students pursuing higher education and the number of higher education facilities greatly increased. For health service facilities, Figure 6 indicates that as of 2007, the number of hospital beds was 450,000 which increased by over 40 times than the 10,000 beds available in 1960.
Figure 5. Total Electric Power (60-09)
Figure 6. No. of Hospital Beds (65-07)
Figure 7. Housing Supply (62-09)
Figure 8. Water Supply (60-08)
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Figure 9. The No. of Students (60-09)
Figure 10. The No. of Education Facilities (60-09)
Table 5. Social Development Indicator: Basic Service Infrastructure Categories Population(Thousand) Electrocity Production Total Electric Power (GWh) Elec. power consumption per capita (KWh) Elementary No. of Students (No. of Schools) Middle School High School University (Undergraduate/graduate) Hospital Beds No. of Housing(Thousand) Housing Housing Supply Ratio(%) Water supply population(Thousands) Water Suply Water supply ratio(%) Capability(Thousand tons/day) Water supply amounts per capital (/day) 82.42) 4,210 16.9 517 99 78.2 10,430 33.2 2,166 158 71.2 20,809 54.6 6,756 256 72.4 33,631 78.5 16,274 369 96.2 41,774 87.1 26,980 380 102.2 43,6333) 89.43) 28,4623) 3593) 101.2 46,7334) 94.14) 216915) 275.25) 1960 25,012 1,697 46 3,621 (4,602) 529 (1,053) 264 (635) 98 (52) 11,4131) 3,6242) 1970 32,241 9,167 240 5,749 (5,961) 1,319 (1,608) 590 (889) 153 (135) 16,538 4,360 1980 38,214 37,239 859 5,658 (6,479) 2,472 (2,103) 1,697 (1,353) 437 (206) 65,041 5,319 1990 42,869 107,670 2,202 4,869 (6,335) 2,273 (2,474) 2,284 (1,683) 1,127 (405) 134,176 7,357 2000 47,008 266,340 5,067 4,020 (5,267) 1,861 (2,731) 2,071 (1,957) 1,895 (990) 287,040 11,472 2004 48,294 342,148 6,491 4,116 (5,541) 1,934 (2,888) 1,747 (2,080) 2,114 (1,201) 356,778 12,988 2009 48,747 422,355 7,9224) 3,474 (5,829) 2,007 (3,106) 1,966 (2,225) 2,911 (1,314) 450,1195) 17,071
1) statistic data in 1965, 2) statistic data in 1962, 3) 2003 statistic data, 4) 2008 statistic data, 5) statistic data as of 2007. Korea Bank. 2005. The 60 Years of Korea Independence by Number and Statistics Korea Homepage (http://kostat.go.kr)
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Transportation and Communication Infrastructure Transportation infrastructure growth can be seen through changes in the total length of railroads, roads, and expressways from the 1960s to present as shown in Figures 11 and 12. The total length of railroads as of 2004 was 7,746 km which is about 1.7 times longer than that of railroads in 1960 - 4,584 km. The total road length in 2008 was about 100,000 km which is 4 times longer than that in 1960. In particular, many expressways have been constructed, and the total length of expressways increased from 550 km in 1970 to 3,500 in 2008 which is six times longer. This rapid expansion of expressways is much bigger than the 2.5-time increase in the total length of roads during the same period. Rapid expansion of roads and expressways is closely related to the increase in the number of vehicles. The number of vehicles as of 2009 is about 17 million, which is 560 times more than that in 1960 - 30,000 cars.
Table 6. Social Development Indicator: Transportation and Communication Categories Population (Thousand) Total railroadlength(km)2) Total length(km) Roads Expressways(km) No. of Vehicles(Thousand) Subscribers(Thousand) Telephone No. of telephones per 100 persons 30.8 87 0.3 551 126.5 481 1.5 1,225 527.7 2,704 7.2 1,551 3,394.8 13,276 31.0 2,131 12,059.2 21,932 46.7 2,923 14,934.1 22,913 46.6 3,4471) 17,325.2 20,090 41.2 1960 25,012 4,584 27,169 1970 32,241 5,500 40,244 1980 38,214 6,007 46,951 1990 42,869 6,435 56,715 2000 47,008 6,706 88,775 2004 48,294 7,746 100,278 104,2361) 2009 48,747
1) 2008 statistic data, 2) KTX(Korea Train Express) is not included. Korea Bank. 2005. 60 Years of Korea Independence by Number and Statistics Korea Homepage (http://kostat.go.kr)
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Figure 11. The Length of Roads and Railroads (60-08)
Figure 12. The No. of Vehicles (Thousand/60-09)
Figure 13. The Number of Telephone Subscribers and Telephone Supply Rate (60-09)
The spread of the telephone as a communication infrastructure can be understood by the number of telephone subscribers shown in Figure 13. The number of telephone subscribers increased by 263 times between 1960 and 2004 - from 90,000 in 1960 to 22.9 million in 2004. However, the number of land line telephone subscribers is currently decreasing because personal cellular phones have come into wide use recently as a result of the rapid development of new communication technology.
2) Urbanization (1) Periodization of urbanization process in Korea
Along with modernization, urbanization in Korea first emerged after the 1876
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opening of Korean ports. Going through the chaotic time in the 1950s, urbanization in Korea began to be accelerated by industrialization and economic growth starting in the 1960s and entering a stable phase beginning in the 2000s as shown in Figure 14. Urbanization in Korea began to accelerate in the 1960s when Korea straightened out the social chaos caused by the liberation of Korea from Japanese colonial rule and the Korean War. Therefore, the year 1960 when the rate of urbanization was 35.8% can be used as a criterion for classifying incipient and intermediate urbanization phases. Unlike the intermediate phase, structural and qualitative transformation of urbanization can be seen in the advanced urbanization phase. For this reason, it may be possible to distinguish the intermediate urbanization phase from the advanced urbanization phase on the basis of the year 1990 because population growth of satellite cities became evident at that time.3 This also reflects radical social and political changes in Korea both before and after 1990.4
(2) Incipient Urbanization
Figure 14. Urbanization Rate of Korea (1920~2005) Statistics Korea, Census
3 The urbanization rate in 1990 was 82.6%. 4 This includes social and political changes caused by democratization through civil revolutions in Korea in 1987 and creation of a local self-government system in 1992.
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It was in the 1920s that urbanization5 first emerged in Korea.67 The urbanization rate in 1920 was 4.86%, but it gradually increased up to 23.8% in 1944 which was only 25 years later.8 Twelve Bu (cities) and twenty-four Myeon (towns) were newly built through the 1914 local governance system reform. Also, in the 1930s, the number of Bu increased up to fourteen and the number of Myeon reached up to 41 (Jeongmok Sohn. 1996: pp. 264-277). It was estimated that the urbanization rate of South Korea at the time of the 1945 Korean Independence was approximately 23%. In the late 1940s, 700,000 Japanese people went back to their country, 1.2 million of Korean people living in foreign countries came back to Korea, and 480,000 people from North Korea moved down to South Korea. Considering this evidence, the estimated urbanization rate was at least
5 After the opening of a port, there were a lot of driving factors for urbanization in Korea - for instance, opening ports, implementing the settlement regime, foreign migrant settlement, and building new infrastructures such as railroads, electricity, and trams. However, the reasons why urbanization did not occur for a long term are summarized as follows: First, social and political chaos broke out frequently. Second, cholera spread in urban areas. Third, disputes with other foreign countries caused by strong national isolation policies of the Chosun Dynasty and numerous conflicts with foreigners made people leave the city. Therefore, concentration of population on urban areas did not happen in Korea cities (Jeongmok Sohn. 1982: p. 387). 6 In the 1920s, concentration of urban population took place regardless of employment demands within urban areas. After a land survey by the Japanese government, agriculture immigration of Japanese through the Korea Oriental Colonization Company and dispossession of lands by Japanese and Chosun landlords forced farmers to leave rural areas. Farmers who lost their lands generally moved to Manchuria, Siberia, Japan, or urban areas in Korea. In the 1930s, the Japanese colonial government permitted the building of manufacturing plants in Korea to produce military supplies. In particular, after the Sino-Japanese War, a lot of Japanese manufacturing companies built their factories in Korea in order for the Japanese colonial government to take advantage of the Chosun peninsula as a large armament depot. They purchased labor force at a cheap price to produce war supplies. Consequently, the urban population rapidly increased and led to artificial urbanization of Korea (Ibid. p. 272). 7 For example, the total population in Seoul between 1669 and 1864 was 180,000 to 200,000, and it did not make a big difference. However, after opening ports, urban population rapidly increased. 46 years later, the population of Seoul was 280,000 in 1910. The population of Seoul increased up to 380,00 in 1933 which was 23 years later (Ibid. p. 204). 8 The urbanization rates are based on a 1920 temporary census and national censuses conducted every five years. According to the census results, there was a decrease in the urbanization rate between 1942 and 1944 because a lot of young people were drafted to war during that period (Ibid pp. 290-294).
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over 28.7% in the late 1940s.9 Also, in the late 1950s after the Korean War, a lot of social and political chaos frequently broke out and led to a high concentration of population in urban areas.10 As a result, the urbanization rate in 1960 rapidly increased to 36.8%.
(3) Intermediate Urbanization
In the intermediate urbanization phase between 1960 and 1990, rapid urbanization process took place in Korea. The 35.8% urbanization rate in 1960 reached 82.6% in 1990, a 47.6% increase. This means that, since 1960, there has been an average 15.6% increase in the urbanization rate every ten years. The urban population in 1960 was 9.2 million, but grew to 35.9 million, meaning that three times the urban population in 1960 lived in cities in 1990 and about 900,000 people moved to cities every year during this period. Also, in this urbanization phase, People generally lived in metropolitan cities with a population of over one million. During this period, about 60% of the urban population in Korea was concentrated in large cities. The proportion of the urban population living in cities with less than 50,000 people gradually decreased, and cities with populations between 50,000 and 200,000 have continued to decrease since 1970. Also, concentration of urban population on satellite cities around the capital of Korea became intensified. While the proportion of urban population living in the capital region was 20.8% in 1960, the proportion in 1990 was 42.8%.
(4) Advanced Urbanization
The urbanization rate has remained stable since the late 1990s at about 90%. Between 1990 and 2000, it increased from 82.6% to 93.9%, and remained almost unchanged at 95.7% as of 2005. However, a concentration of the urban population in the capital region has lasted since the 1990s, and the proportion of urban population living in the capital region increased from 42.8% in 1990, to 46.2% in 2000 to 48.1% in 2005. Change in the urbanization rate is shown in Table 7. After the 1990s, a few metropolitan regions were formed by a transformation of
9 Korea Institute for Human Settlement (KRIHS). 1996: p. 348. 10 Ibid. p. 349.
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Table 7. Change of Urbanization Rate (1960 ~ 2005) Categories National population(Thousand) Urban Population(Thousand)1) Urbanization Rate % of population in the capital region 1 million above 500,000~1 million Cities by population size 200,000~500,000 50,000~200,000 20,000~50,000 less than 20,000 1960 24,989 9,198 36.8% 20.79% 39.2% 7.4% 10.3% 20.0% 19.6% 3.5% 1970 31,435 15,510 50.2% 28.24% 53.8% 4.1% 7.5% 20.4% 13.5% 0.8% 1980 37,407 26,107 69.7% 35.50% 54.4% 5.3% 12.8% 14.0% 9.3% 4.2% 1990 43,390 35,873 82.6% 42.81% 57.6% 8.5% 12.4% 11.3% 6.4% 3.8% 2000 45,895 43,307 93.9% 46.2% 51.4% 15.6% 17.0% 11.0% 2.5% 2.5% 2005 47,041 45,240 95.7% 48.1% 51.5% 15.3% 18.9% 9.9% 2.2% 2.3%
1) The total urban population living in both cities and towns in terms of administrative districts (Statistics Korea, Census).
their urbanization patterns, and the proportion of the cities urban population size has had a tendency to change. While the percentage of Korean cities with a population of over one million is gradually decreasing, the percentage of cities with a population between 200,000 and one million has been steadily increasing or remaining stable recently. As shown in Table 8, while the population of the six metropolitan regions has been increasing since 1990, the population of the core cities in the regions in fact has been tending to decrease. For instance, the population of Seoul in the capital metropolitan region has been decreasing since 1990; the population of Busan has been decreasing since 1995; Daegu has been decreasing since 2000. This shows that the transformation of urbanization structure seems to be making some of the core city population relocate to neighboring cities with populations between 200,000 and one million. Thus, Korean cities in the middle of the advanced urbanization phase are experiencing a positive and structural transformation of urbanization.
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Table 8. Population Change of Metropolitan Areas Since 1990 Categories Capital Region Seoul % of population of a core city Busan Metropolitan Region Busan % of population of a core city Daegu Metropolitan Region Daegu % of population of a core city Daejeon Metropolitan Region Daejeon % of population of a core city Kwangju Metropolitan Region Kwangju % of population of a core city 1990 18,586,128 10,612,577 57% 5,762,698 3,798,113 66% 2,625,916 2,229,040 85% 1,790,636 1,049,578 59% 1,479,790 1,139,003 77% 1995 20,189,146 10,231,217 51% 6,250,408 3,814,325 61% 2,979,767 2,449,420 82% 1,988,114 1,272,121 64% 1,590,868 1,257,636 79% 2000 21,354,490 9,895,217 46% 6,280,625 3,662,884 58% 3,081,352 2,480,578 81% 2,073,632 1,368,207 66% 1,670,084 1,352,797 81% 2005 22,766,850 9,820,171 43% 6,301,528 3,523,582 56% 3,054,561 2,464,547 81% 2,108,080 1,442,856 68% 1,694,667 1,417,716 84%
Capital Region: Seoul, Incheon, Kyounggi Province Busan Metropolitan Region: Busan, Ulsan, Changwon, Masan, Jinhae, Kimhae, Yangsan Daegu Metropolitan Region: Daegu, Youngcheon, Kyoungsan, Kunwi, Cheongdo, Koryeong, Seongju, Chilgok Daejeon Metropolitan Region: Daejeon, Kongju, Nonsan, Kyeryong, Keumsan, Yeongi, Cheongwon, Boeun, Okcheon, Youngdong Kwangju Metropolitan Region: Kwangju, Naju, Damyang, Hwasoon, Hampyeong, Jangseong Korea Bank. 2005. 60 Years of Korea Independence by Number and Statistics Korea Homepage (http:// kostat.go.kr)
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3) Economic and National Development Policies (1) Economic Development Policy
From the 1960s to the mid 1990s, Korea systematically implemented economic development by taking a comprehensive approach to establishing economic policies in Korean economic development plans. As a five-year economic strategic plan including national economic policies, the Economic Development Plan set a goal and developed implementing plans to utilize all available resources. As shown in Table 9, economic development policies in Korea were implemented by establishing four five-year national economic development plans from 1962 to 1981. In 1982, the plan was established under the name of the Economic and Social Development Plan and served as a plan to stimulate the market economy in Korea. Two Economic and Social Development Plans were developed from 1982 to 1986. However, in 1993 when the 7th five-year Economic and Social Development Plan (1992 ~ 1996) was in progress, the Korean government recognized that it was not reasonable to implement the plan to supplement Korean market economy. Based on this recognition, no economic development plans were implemented after the New Economic Plan was established. The economic development plans had both positive and negative impacts on high economic growth in Korea.11 As for the positive impacts, the plans provided clear directions for economic development and a strong basis for focusing all national efforts on boosting business and industry throughout the country. Also, by suggesting both short-term and long-term economic development frameworks, the plan removed uncertainty from the market economy in Korea and encouraged investment activities of private companies. Finally, economy-invigorating policies suggested in the plan served as a strong basis for forming various new markets. The economic development plans also had negative effects on Korean economy. First, the plans made economic actors dependent on the government and slowed down the growth of the Korean economy. Second, the plans use of price controls caused market distortions and inefficient economic growth because they put too much emphasis on achieving a quantitative goal for economic growth.
11 Jeongha Kang.1997.
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Table 9. Characteristics of the Economic Development Plans in Korea Categories The 1st Fiveyear Economic Development Plan Time Period Goal Basic Strategies Ensuring energy resources Improving agricultural productivity Developing key industries Absence of promoting industrialization Self-support of food Construction of advanced industry basis Exporting hundred-thousanddollar products 3.5 billion-dollar export Constructing heavy and chemical factories Creating industrial districts Distribution of industries and labors Planning Outcomes 1964 : Revised the Plan (downgrading goals) Intensive efforts by the government
1962~1966
Achieving independent economy Infrastructure Development
The 2nd Fiveyear Economic Development Plan
1967~1971
Modernizing industrial structure Establishing independent economy
Relative successful plan development and implementation Improving institutions for economic growth Intensive Financial support for promoting heavy and chemical industries Industrial advancement (failed due to the oil crisis) Changing policies frequently under emergent situations
The 3rd Fiveyear Economic Development Plan
1972~1976
Innovative development of agriculture and fishery economy Increasing exports/ Encouraging heavy and chemical industry
The 4th Fiveyear Economic Development Plan
1977~1981
Development of self-supporting growth structure Social development for equity
Raising investment funds through it own efforts Advancement of industrial Structure
The 2nd oil crisis(1979) :shrinking light industry export The plan failed
1982~1986
Maturing market functionsLiberalization Social development
Constructing stable economic bases Strengthening competitiveness Boosting jobs and incomes Balanced development Advancement of institutions and order Industrial structure reform Balanced development Improving citizens quality of life
Including improvement of urban poverty for sustainable economic growth Separating private economic activities from roles of government-led plans Price stabilization Improving fair trade system Established Korea Customer Agency National pension Promoting women development
1987~1991
Forming advanced economy based on efficiency and environment Public Welfare
Five-year New Economy Plan
1993~1997
Constructing economy by public participation and mutual consent
Reform of market economy Removing bas economic customs or practices
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(2) National Land Development Policies
Apart from the Economic Development Plans, Korea has established the Land Development Plan for specific areas since the 1960s. In 1972, along with the third five-year Economic Development Plan, Korea established the first National Territory Comprehensive Plan for the next ten years. The first plan focused on developing policies and strategies for the construction of large-scale industrial bases and the improvement of transportation, communication, water supply, and energy supply systems. However, the first plan adopted growth pole development strategies and caused development bi-polarization along the Kyoungbu expressway which runs from Seoul to Busan (Republic of Korea, 2000: p. 4). Since the 1980s, the National Territory Comprehensive Plan has concentrated on reorganizing the spatial structure of national land and forming local economic blocs or wider life blocs. The second National Territory Comprehensive Plan (1982-1991) focused on forming poly-nuclei territories and daily life regions to encourage population settlement in local areas to improve the quality of life. The plan prevented excessive growth of the Seoul and Busan metropolitan areas in order to foster regional growth centers. However, the second plan did not have sufficient implementation means and caused spatial structure imbalance. Setting a goal of decentralized spatial structure, the third National Territory Comprehensive Plan (1992-2001) established development strategies such as controlling growth of the capital region and fostering local regions, constructing new industrial districts and comprehensive express network systems, and increasing investment in quality of life and environment. The plan also adopted multi-core and daily life regional developments as part of its spatial development strategies. However, it did not reflect any strategies for globalization, liberalization, or localization. Unlike the former three ten-year plans, the fourth National Territory Comprehensive Plan (2000-2020) suggested 20-year development strategies. The revised 2005 plan suggested building up independent local region bases and networking infrastructures. In addition, it included construction of three national development axes and interconnected multi-core spatial structures.12
12 Republic of Korea (ROK) Government. 2005: p. 36
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Table 10. The National Territory Development Plans in Korea (1972 ~ 2020) Categories Goals Effective national land management Infrastructure development for national development Resource development and Preservation Improving quality of life Population settlement in local areas Nationwide expansion of development possibilities Improvement of public welfare Preservation of natural environment Decentralized national land framework Productive & resourcesaving land use system Public Welfare and natural preservation Construction of Infrastructure for unification of Korea Strategies and Policies Spatial Development Strategy Development of growth poles :Seoul, Busan, Incheon, Daegu Development by regions :4 large-scale areas/8 middle-scale areas/17 small-scale areas Features and Problems Adopted development of growth poles bi-polarization of development along the Kyoungbu expressway Urban growth control of Seoul and Busan Promoting balanced development by fostering growth poles Lack of implementing means: imbalanced development still remained Not reflecting globalization, liberalization, and localization The basis of national land development changed due to the foundation of the WTO etc.
The 1st National Territory Comprehen-sive Plan (1972~1981)
Large-scale industrial base development Arrangement of transportation, communication, water supply, and energy supply networks Strengthening local functions
The 2nd National Territory Comprehen-sive Plan (1982~1991)
Forming multi-nuclei spatial structure and daily life regions Growth management of Seoul and Busan Social Overhead Capital(SOC) for strengthening local functions Promoting development of lagging areas Fostering local areas and growth control of the capital region New industrial districts and advancement of industrial structure High-speed transportation network system Improving quality of life and investment in environment Management of South and North Korea exchange districts Open wide integrated national land development axis Strengthening competitiveness of local areas High-speed transportation and communication network Forming infrastructure for exchange between South and North Korea
Decentralized growth pole development Life zone development :28 life zones(including growth poles within each zones)
The 3rd National Territory Comprehen-sive Plan (1992~2001)
Multi-nuclei development Economic region development : 4 economic development regions (Capital region, Southeast region, Southwest region, Central region)
The 4th National Territory Comprehen-sive Plan (2000~2020)
Realizing the 21st century national land integration Balanced and green development National lands for development
Open wide integrated nation land development axes :coast line axis/East-west axis Metropolitan area development :10 metropolitan areas (New industry bases, metropolitan cities, conurbation)
Promoting balanced development among local areas Environmentally friendly development strategies were suggested for preservation of national land environment Decentralized national land development : the Multi-functional Administrative city, innovative cities, enterprise cities etc.) Free economic zones
The Revised 4th National Territory Comprehen-sive Plan (2006~2020)
Integration of national lands National lands for balanced development and competitiveness Livable/sustainable national land development National land development for prosperity
Constructing self-supporting regional development bases Network types of infrastructure Sustainable national land development and resource management Decentralized national land plan and implementation system
Three national land development axes : South sea/West sea/ East sea 7+1 economic regions multi-nuclei connected spatial structure
Korea Development Institute Compilation Committee. 2010. The Korean Economy: Six Decades of Growth and Development.
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2. Urbanization Policies in Korea13

1) Urban Planning and Land Management (1) Introduction
According to the World Banks urbanization hypothesis, institution is the most important policy instrument. This section analyzes the changes of urban planning and land management institutions in response to each urbanization phase in Korea. This study will examine four aspects relevant to this issue - rights of land use and ownership, development programs, land use regulations, and spatial planning.
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Incipient Urbanization Rights of Land Use and Ownership Based on the Land Survey Act established in 1912, the land survey project was implemented throughout Korea by the Japanese colonial government for eight years and 9 months (from March 1910 to November 1918). The survey authorized only people who paid land taxes as landowners, so it made the dominating classes in the feudal system become modern landlords. On the other hand, farmers who actually cultivated lands lost all their land use rights and became tenant farmers. In other words, the establishment of modern land ownership increased the number of tenant farmers and bound them to landlords.14 However, the Agricultural Land Reform Code enacted after Korean independence changed large land ownership by limiting the maximum area of agricultural
13 Urbanization policies will be evaluated by dividing them into four policy areas - urban planning and land management institutions, housing supply policies, transportation policies, and low-income neighborhood policies within metropolitan areas. The changing process of each policy area will be analyzed according to three urbanization phases. The incipient urbanization phase is the period between the year of opening ports and 1959; intermediate urbanization is defined as the period from 1960 to 1990; the advanced urbanization phase is from 1990 to the present. 14 Uiwon Kim. 1982. A study on the History of National Land Development in Korea: pp. 407-413
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land to 3ha and by executing purchases and distribution with compensation.15 Development Programs In 1911, the Japanese colonial government enacted the Land Acquisition Act. The purpose of the act was to purchase land for constructing military bases or public facilities in order to rule the colony and prepare for invading China. However, it was extremely rare for the Japanese Colonial government to actually provide compensation for lands.16 In effect, this law served as a means for expropriating lands or estates without any permission. As for urban improvement, public facilities like roads were constructed through downtown improvement projects (1912) based on the decrees of the Japanese colonial government. After the Chosun Town Planning Act was established by the Japanese Colonial government in 1934, sites for urban planning facilities such as streets and parks were determined prior to the implementation of planning projects. Before the act, urban development projects such as the construction of residential districts for Japanese people were carried out by land readjustment projects. This development approach was first applied to Seoul in 1928,17 but land readjustment was executed by the Urban Planning Act after legislation. Land use regulations Based on the 1934 Urban Planning Act, an urban planning area was first announced in Seoul in 1936. Three years later, commercial, industrial, and residential districts were designated within the urban planning area, and architectural standards by way of zoning ordinances were first applied to each district.18 Building permits
15 Agricultural lands owned by Japanese first reverted to the United States Army Military Government in Korea (USAMGIK) and were sold beginning in 1948 according to the USAMGIK ordinance. Distribution of agricultural lands began in April 1950, but was suspended due to the Korean War. Distribution resumed in October 1950 and was completed in March 1951 (the 60-year History of Korea Economy Compilation Committee. 2010: p. 30. 16 KRIHS. 1996: p. 797. 17 Ibid. p. 784. 18 In fact, the act was first applied to the Najin downtown area plan, whose purpose was to build an armament base in the Najin port. Based on the plan, the land readjustment project was first determined in 1934, and zoning was applied in 1935 (KRIHS, 1996: p. 763).
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within urban planning areas were handled through the regulation of downtown buildings established in 1913. Comprehensive urban Planning Zoning was first adopted through the Urban Planning Act. However, the act generally focused on downtown planning projects such as the construction of public facilities and land readjustment projects, so land use regulations were not significant. Under this urban planning condition, the Japanese Colonial government did not think that it was necessary to carry out long-term spatial or urban planning. Intermediate Urbanization Rights of Land Use and Ownership Established in 1962, The Land Acquisition Act provided an institutional means for appropriate compensation for purchasing lands. Also, as public work projects greatly increased during this period, the Exemption Act for Public Land Acquisition and Compensation was enacted in 1975 to facilitate public land acquisition with proper compensation. The Act provided uniform evaluation criteria, methods, and processes to acquire lands for public works.19 Development Programs Residential development projects for the sale and rent of affordable housing were first adopted through enactment of the Public Housing Act in 1963, but land development was still carried out through land readjustment projects. In 1966, the Korean government established the Land Readjustment Act and separated it from the existing Urban Planning Act. Also, the urban redevelopment act was newly established and separated from the Urban Planning Act in 1971. To develop industrial sites to promote industrialization, the Promotion Act of Industrial Base Development was established in 1973. The act provided a legal basis to purchase lands within the area designated as industrial districts, including compulsory acquisition. However, residential land development projects by the Land Readjustment Act allowed personal landowners to have too excessive development profits,
19 KRIHS. 1996: p. 797
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and housing land was not acquired properly due to long-term development. Therefore, the Korean government established the Residential Land Development Promotion Act in 1980, and two legal actions for inhibiting land readjustment projects were implemented in 1983 and 1986. Land use regulations Based on the basic framework of the Chosun Town Planning Act, the Korean government first established the Urban Planning Act in 1962. This new act included the zoning system and urban facility planning mentioned in the former act. In 1961, the Forest Act was enacted. This act suggested announcing forest conservation areas, limiting appropriation of the forest areas, and prohibiting reclassification of the forest conservation lands. Also, the Water Supply and Waterworks Installation Act provided the designation process and planning standards for the water reserve areas.20 In 1970, the revised Building Act included, for the first time, a floor area ratio provision for land use control. In 1972, the National Land Use Management Act was established and provided the land use plan which made possible the specification of zoning districts within non-metropolitan areas.21 Also, permits for land conversion were first adopted in the revised Urban Planning Act (1972) and the 1972 National Land Use Management Act. Finally, the Act for Conservation and Use of Agricultural Lands was enacted in 1972. It provided for the designation of absolute farmlands and limited the appropriation of absolute farmlands. Comprehensive urban Planning During this phase, several complementary measures were required in the urban planning applications for a number of reasons. For instance, zoning decisions and urban planning facility projects were amended too frequently by the mayors and county leaders. Also, mayors and leaders appointed by the central government were frequently replaced. In order to solve this problem, the urban comprehensive plan, which provides guidelines for 20-year urban planning visions, zoning decisions and
20 Ibid. p. 764. 21 Before the act, there were only land use regulations which controlled land development practices in the rural areas.
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urban planning facilities, became mandatory. Also, downtown development projects were systematically implemented according to phased development scenarios included in the urban comprehensive plan. Advanced Urbanization Development Programs After the 1960s, urban development projects greatly increased, and goals, subjects, and types of development projects became diverse. However, too many acts and measures relevant to urban planning and development were established and led to confusion within the urban development system. In the late 1990s, a movement of integrating and reorganizing urban planning acts emerged. In 2000, the Urban Development Act was established and integrated downtown development programs in the Urban Planning Act and land readjustment projects in the Land Readjustment Act. Also, the Urban Redevelopment Act and the Temporal Act for Special Measures on the Improvement of Low-income Neighborhoods within Urban Areas were abolished. The Urban and Residential Environment Improvement Act was enacted in 2002 to integrate urban and residential environment improvement projects and residential reconstruction projects under the Housing Construction Promotion Act. Land use regulations Influenced by Neo-liberalism in the early 1990s, the Korean government began to consider deregulating the existing urban planning and development systems. In 1994, the revised the National Land Use Management Act adopted the negative-list system instead of the positive-list system for semi-agriculture-and-forest and semi-urban zones within rural areas22. However, this caused disorderly development, so the the National Land Use and Management Act which declares principles of planned development was established in 2002. This act integrated the Urban Planning Act and the National Land
22 The agricultural promotion area where land use and development are strongly restricted and semi-forest conservation areas may be converted to semi-agricultural-and-forest zone. By permitting development practices other than for large-scale development and construction of highly contaminating facilities, the semi-agricultural-and-forest zone makes possible deregulation of development practices (KRIHS. 1996: p. 776).
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Use Management Act, which separately controlled urban and non-urban areas. Also, it played a major role in spreading urban planning throughout the country. Comprehensive Planning In the 1990s, the number of registered vehicles greatly increased, and transportation infrastructures were rapidly expanded. Peoples daily living activities became wider, moving beyond city and county administrative areas. Also, cooperation between the city and the county was gradually emphasized to accommodate urban infrastructures. As a response to these regional planning issues, metropolitan city-regional planning, which requires cooperation between the city and the county or the city and the province, was institutionalized in 2000.
2) Housing Supply Policies (1) Introduction
Ensuring housing stocks within urban areas in response to rapid urban population growth is securing basic infrastructure. Housing supply policies mean providing infrastructure which is a part of institution - the first urbanization policy instrument of the World Bank. In the incipient urbanization phase, Korea had no experience establishing housing supply policies or providing houses to meet the urgent housing demand after Korean Independence and the Korean War. It has been only since intermediate urbanization that Korea has set an institutional basis and taken active approaches toward housing supply. The Korean government continues to take the lead in implementation of housing supply policies. However, customer-centric housing supply policies have been gradually emphasized since the 2000s.
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Incipient Urbanization The Absence of Housing Supply Policies (~1953) The housing shortage came to the front as one of the social problems from the
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early Japanese colonial period, but was not considered an important issue23 because it was considered only a problem among Chosun people. In the 1920s, to deal with the rapid increase in the urban poor and low-income people in mud huts, prefectural housing similar to servants quarters was constructed in Seoul. However, it became slums and was demolished. In the 1930s, the Japanese colonial government took a passive attitude toward developing housing supply policies to deal with lack of housing.24 As a result, the housing shortage problem was so severe that the housing shortage ratio of Seoul in 1944 was 40.25% (Namil Jeon et al. 2008: p. 373). The population of South Korea increased by 2 million from 16.24 million in 1944 to over 20 million in 1949 because of the return of overseas Koreans and people coming from North Korea (KRIHS. 2008: p. 159). Between 1945 and 1948 - during the United States Military Government period - people built their own houses, and as a result, peripheral shanty towns were formed25 because there were no systematic housing supply policies in Korea.26 Meeting urgent housing demands (1953~1961)27 After the Korean Independence, facing rapid population growth due to the homecoming of overseas Koreans, the mass destruction of houses during the Korean War,28 and people coming from North Korea, the Korean government built temporary
23 When the Japanese colonial government did not care about housing shortage problems, supporters in Kyoungseong or Pyeongyang organized housing cooperatives and built small houses in the downtown areas for homeless people. They also rented houses to the poor at no charge for a while (Namil Jeon et. al. 2008: pp. 130-131). 24 Housing supply policies were carried out by the Japanese colonial government once or twice. However, these policies were implemented to accommodate residential units only for Japanese living in Seoul, not for the entire population (Ibid. pp. 130-134). 25 Houses at that time built of plywood, tin, and lopping were used as temporary housing shelters in Seoul after the Korean Independence (KRIHS. 2008: p. 159). 26 Ibid. p. 159. 27 This study follows periodization of the changing processes of housing supply policies mentioned in the 1996 KRIHS report. 28 It is reported that one fifth of the total number of houses were destroyed. According to the 1955 report of Ministry of Health and Social Affairs, the total number of housing units before the Korean War was about 3,284,000. However, the number of houses destroyed during the war was about 596,000 (KRIHS. 1996: p. 637).
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emergency housing within metropolitan areas that suffered from an extremely serious lack of housing to solve lack of housing problems. However, these urgent housing supply problems were somewhat settled, and housing policies were converted to policies supporting construction of long-term settlement housing. Also, the role of the public sector in supplying houses was remarkably reduced; for instance, the housing supply percentage by the public sector was 38% until 1956, but fell off to 15% by 1961.29 Intermediate Urbanization Developing the housing policy basis (1962~1971) From the 1960s, the Korean government took an economic attitude which anticipated the impact of housing supply policies on relevant industrial fields in terms of productivity, instead of taking a social welfare approach in the precious urbanization phase. Also, the general understanding of housing supply policies was that housing problems should be solved through long-term investment in housing development, not through short-term housing recovery or rehabilitation programs. For these reasons, housing issues were included in the five-year economic development plan from this urbanization phase.30 The first five-year economic development plan (1962-1966) concentrated on finding solutions to housing shortage problems and providing public housing for the low-income class. The second five-year economic development plan (1967-1971) suggested strategies for building apartments within urban areas and improving unauthorized poor residential areas. While the first plan put into action, 320,000 houses were built, and 88% of the houses (280,000) were constructed by private sectors. Under the second plan, 540,000 houses were built, and 87% of the houses (470,000) were built by private housing development companies.31 Indirect housing policies took the lead (1972~1987) Although housing supply policies were carried out in the first and second economic development plans, the housing shortage ratio was getting worse. The Ko29 Ibid. p. 637 30 Ibid. p. 638. 31According to the statistic data, the number of houses built by public sectors includes private housing constructed by using public funds (Ibid. p. 639).
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rean government established the ten-year housing construction plan apart from the first National Territory Comprehensive Plan (1972~1981) and announced the Housing Construction Promotion Act (1973).32 Also, based on the act, the Korean government issued national housing bonds, prepared national housing funds, and set up special accounting procedures for public housing projects. The ten-year plan set a goal of housing supply ratios - 82.8% for the urban housing supply ratio and 88.4% for the nationwide housing supply ratio until 1981.33 However, the actual outcome was only 72%, which indicates that it was very difficult to carry out housing policies. While several five-year economic development plans were implemented, the proportion of housing construction by the private sector gradually decreased. During the period of the third economic development plan, 70% of 760,000 houses (530,000) were built by private housing companies; during the fourth plan, 56% of 1.12 million houses (620,000) were built by private sectors. In particular, while the fifth plan was implemented, 48% of 1.15 million houses (550,000) were constructed by private companies, and 52% (600,000 houses) were built by the public sector. This means that the proportion of housing provided by the public sector was more than that provided by the private sector.34 As housing supply policies were designed to protect low-income people, a rental housing promotion program was established in February 1982, and the Rental Housing Promotion Act was enacted in 1984. Supported in the five-year economic and social development plan, these housing policy trends, such as provision of smallscale, rental, and affordable housing, were reflected in housing supply policies for low-income people.35 However, the actual housing supply rate was gradually getting worse; in 1970, the housing supply ratio was 78.2%, but it fell off to 71.2% in 1980 and 69.8% in 1985. The cast of housing in this phase kept going up, and the proportion of apartments greatly increased from about 20% in 1975 to 36% in 1980.
32 Ibid. p. 641. 33 Ibid. p. 641 34 Ibid. pp. 642-643. 35 Ibid. p. 642.
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Advanced Urbanization Direct intervention by the government (1988~1997) In the late 1980s, there were strong demands to improve distribution among income classes and high-quality welfare in companies with political democratization. Also, productive outcomes of economic development enabled the Korean government to have enough funds for social welfare. For these reasons, the government made a complete revision of the 6th economic and social development plan to put great emphasis on supporting the least advantaged and backward communities. As an implementation strategy, the government announced the 2-Million Housing Unit Construction Plan (1988~1992) in May 1988. This very radical plan aimed at raising the housing supply ratio from 69.3% in 1987 to 72.9% and built 1.7 times more houses than the total number of houses during the previous five years (1983~1987).36 Fortunately, as it was estimated that the goal of the plan would be achieved early, the plan was revised again. The government increased the total number of houses built by the public sector from 850,000 to 900,000, and decreased the number of houses built by private companies from 1.15 million to 1.10 million. The reason why the revised plan suggested supplying more public housing was that a rapid increase in home prices and deposits for leasing a house caused a serious problem in low-income neighborhoods. Furthermore, the government decided to reduce the implementing period from 1992 to 1991.37 Due to the housing supply plans, the housing supply ratio which had decreased to 69.7%38 by 1985, continuously increased after 1990. In the five-year New Economy Plan (1993~1997), the government established the 2.85 million housing construction plan, and succeeded in constructing 3.12 million houses, which is 10% more than the planned number of houses.39
36 Ibid. p. 644. 37 Ibid. pp. 646-647. 38 The housing supply ratios from 1960 to 1985 are as follows: 82.5% in 1960, 74.4% in 1975, 71.2% in 1980, and 69.7% in 1985 (Ibid. p. 649). 39 KRIHS. 2008: p. 174.
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Customer-oriented Differentiation of Housing Supply (1998~) The 1997 Korea financial crisis damaged the entire market system in Korea and paralyzed the housing market. In order to revitalize the housing market, many housing acts or guidelines were deregulated or abolished (KRIHS. 2008: p. 176). In the late 1990s, premium and high-rise mixed-use apartments were built, so the housing market began to focus both on ensuring both housing quality and on encouraging competition among apartments as a product. Also, environmentally friendly and intelligent apartments were gradually emphasized.40 Considering these changes in housing demands, the Korean government announced the housing welfare roadmap in May 2003. The roadmap set a basic framework of providing customized housing suitable for various income levels. The roadmap also encouraged the middle-income class within the upper 30% of the income level to purchase their houses sold in the housing market and suggested expansion of public rental housing supply for the low-income people within the lower 40% of the income level.41
3) Transportation Policies42 (1) Introduction
The changing process of transportation policies which have been implemented from incipient urbanization to advanced urbanization will be examined by dividing policy contents into two perspectives the expansion of the road network based on railroads and expressways and the formation of the metropolitan transportation network.
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Incipient urbanization Construction of Railroad network The opening of the Kyoungbu (Seoul-Busan) railroad line in 1904 reduced
40 Ibid. p. 179. 41 Ibid. p. 180. 42The KRIHS report (2008: pp. 209-243) is used to explain transportation policies throughout Korea urbanization process.
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travel time from ten days to one day. By 1919, most present railroad frameworks were completed, and as the urban population rapidly increased after the 1920s, the locations of railroad stations greatly influenced urban growth and functions. Despite the division of Korea into north and south after the Korean Independence, the abnormal railroad network running throughout the Korean peninsula served as the main transportation artery before roads played a leading role beginning in the late 1960s. The total length of railroads in South Korea was 3,738 km, but three industrial railroads running from east to west were built to solve the lack of resources: the Youngam Line (Youngju~Cheolam~Samcheok, 86.4km), the Hambaek Line (Jecheon~Hambaek, 60.7 km), and the Moonkyoung Line (Jeomchon~Moonkyoung, 22.8 km)43 Road Network During the Japanese colonial period, roads were used as a transportation system to complement the railroads as the proportion of road construction was relatively low. The total length of roads at the restoration of independence was 24,031 km (5,263 km for national roads, 9,997 km for local roads, and 8,771 km for city and county roads). The total road length in 1960 was 27,169 km, which means that it did not change much between the 1920s and the 1960s. In addition, the pavement of national Route 1, which was started by the United States Military Government, was finished in 1971. On the other hand, supported by the ECA in the US, bridge projects for national main roads were carried out, but most of the bridges were destroyed during the Korea War. Intermediate Urbanization Construction of the Railroad network Focusing on construction of industrial railroads to support economic growth, the first five-year economic development plan concentrated 64.2% of the total amount of investment in transportation on railroads. The 234 km industrial railroad lines such as Hwangji and Jeongseon lines were built as railroads to make connect railroad lines or to link resources and producing centers. The plan also included improvement of
43 Ibid. p. 216.
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railroad structure running from south to north, and east-west railroad lines44 were built. Finally, double-tracking and electrification of railroad lines were carried out during this urbanization phase. Road Network The second five-year economic development plan suggested transportation policies as follows: First, in the early 1960s, pavement and facility maintenance was implemented for metropolitan roads, and expansion of road widths and improvement of road linearity were carried out; second, in the late 1960s, transportation policies were concentrated on forming public-road-centric structure. In the late 1970s, it was suggested that national roads be paved and expanded from two lanes to four lanes. Also, 1,351 km of 17 national roads were constructed, repaired, and paved. In the late 1960s, 655 km of Kyoungin (Seoul-Incheon) expressway (1967.5 ~ 1968.12) and Kyoungbu (Seoul-Busan) expressway (1968.2 ~ 1970.7) were opened and shrank the entire nation into a one-day life zone. During the third five-year economic development plan period, the total length of expressways reached up to 1,243.5 km by constructing Honam (172.3 km), Namhae (176.5km), Youngdong (97 km), Donghae (30 km), and Guma (84.2 km). The fourth five-year economic development plan (1977-1981) still concentrated on increasing expressway capacities. In the fifth and sixth five-year economic development plans, additional expressways were built, and existing expressways were expanded, which solved some heavy traffic issues for some sections of the expressways and encouraged balanced national land development. Finally, the sixth five-year economic development plan (1987-1991) put an emphasis on pavement projects and remarkably increased the pavement ratio from 54.2% to 76.4%. Metropolitan transportation systems: Urban highway, Regional railroads, and Subways After Busans first urban highway was completed, many urban highway projects spread through Seoul and local metropolitan cities. After the ground-breaking ceremony
44 Neungui (Seoul~Cheongnyangni~Uijeongbu~Neunggok, 82.9 km), North line of East Sea (Bukpyeong~ Kyoungpodae, 50.3 km, Mangwoo Line(Mangwoo station~Seongbuk station, 4.9 km), Kyoungbuk Line(Kimcheon~Youngju, 58.6 km), and Kyoungjeon Line(Jinju~Suncheon, 80.5 km).
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for electrification of the Kyoungin line, the capital region implemented railroad electrification plans, and 86.7 km of regional subway network were opened in the 1970s. The Seoul subway line 1 (7.8 km) running from Seoul station to Cheongnyangni station was opened in August 1974, and the phase 1 route of subway line 2 from Sinseol-dong to the Seoul sports complex was opened in 1980. In the 1980s, subway lines 2, 3, and 4 were completed, and Phase 2 of the Seoul subway line development was launched. In that project, Seouls subway lines 5, 6, 7, and 8, whose distance was 152.3 km, were completed. In total, 524.5 km of subway lines were constructed. In order to meet transportation demands in the capital region, the Kyoungwon line, Ansan line, and additional subway lines were opened and contributed to forming a regional railroad network in Seoul and Kyounggi province. Advanced Urbanization Construction of Railroad network The Korean Train Express (KTX) project was launched in May 1989 and completed in April 2004. The opening of the KTX line from Seoul to Busan shrank the entire nation into a half-day life zone. It has been 30 years since the opening of the Kyoungbu expressway in 1970 shrank the entire country into a one-day life zone. From 2000 to 2006, the proportion of double-tracking railroad lines increased from 30.1% in 2000 to 40.6%. Also, the percentage of electrified railroads increased from 21.4% in 2004 to 49.3% in 2006. Road network In the 1990s, the Korean government made an effort to improve the efficiency of its roads throughout the country and to construct a systematic and planned road network. Also, from 1992 to 1996, transportation facilities of expressways and national roads were expanded. As a result, the total length of roads increased from 58,847 km to 82,342 km within five years, and expressways were extended up to 1,886 km. In particular, there was remarkable expansion in city and county roads, whose total length reached 35,989 km an increase of 68.2% compared with the length five years earlier. In addition, the number of expressway routes was extended to 21 routes form-
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ing a total length of 2,041 km. In the case of national roads, the ratio of four-lane national roads increased 30%. During this urbanization phase, 90% of the total volume of traffic was taken up by roads. However, the number of vehicles increased much faster than did the road capabilities; between 1994 and 1999, road capability increased by only 5.2%, but vehicles increased at a rate of 10.8%. In the 2000s, the framework of the national highway network was almost completed, and expansion of the number of road lanes and improvement of transportation facilities were accomplished, achieving both qualitative and quantitative expansion of transportation infrastructure. The length of expressways increased from 2,131.2 km in 2000 to 3,120.6 km in 2006, a 45% increase. This is because several expressways were built by both public and private sectors.45 Metropolitan transportation In the 1990s, subway development projects were implemented in local metropolitan cities such as Busan and Daegu, so the total length of subway lines increased from 149.8 km to 330.2 km which was twice as long as they had been ten years earlier. In the 2000s, regional highways such as the Seoul Outer Beltway in 2007 were constructed in the major metropolitan cities.
4) Residential Policies in Low-income Neighborhoods (1) Introduction
Unlike other surrounding neighborhoods whose living environment is getting better, some areas were left undeveloped and became slums. To prevent slums, intervention by a government is often required. This study will examine how policy intervention was made by the Korean government for undeveloped low-income neighborhoods and what the outcomes of this policy intervention were.
45 West Sea expressway (355.1 km 2001), Daejeon-Tongyoung expressway (209.8 km, 2005), Central expressway (362 km, 2006), and Jungbu Naeryuk Expressway (330.7 km) were constucted by the public sector; Incheon international airport expressway (36.6 km, 2000), Cheonan-Nonsan expressway (80.9 km, 2002), and Busan-Daegu expressway (81 km, 2006) were built through private financing projects.
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(2) Contents
Incipient Urbanization Japanese colonial Period: Forming shanty towns Tenant farmers who lost the right of cultivation as a result of the Land Survey Act gradually moved to cities, built a thatched cottage or a shack,46 and lived close to job places - for instance, around the four main gates of old Seoul or in the rocks in the mountain. In the 1930s, those shacks were grouped together in specific areas, and in Seoul, 200 shacks and 700 people were added every year. The percentage of people living in shacks reached 2% or 3%. In 1939, the number of people in shanty towns was about 20,000 and increased to 7,426 shacks and 30,000 residents in 1942. The occupations of people living in shanty towns were day laborers, porters, peddlers, or beggars.47 As a solution to unsanitary shanty towns,48 migration to other areas with better residential environment was considered by the government, but did not work well because the long distance from jobs made those migrants come back to their original living places. The Japanese Colonial government also opened public lands and tried to expropriate shanty town areas and designate land readjustment districts, but it failed because of financial problems (Namil Jeon, 2008: pp. 127~129). Shanty towns after the Korea War There were a lot of refugees during the Korean War, and many did not have places to live. Therefore, they had to build their own temporary houses for survival by using plywood, tin, mud, and any material they could find. These houses began to
46 The origin of a shanty town stems from a group of pit houses formed around a city wall by poor people. However, the flood of the Han River caused a lot of flood victims and increased the number of people living in a shack. 20 years later, there were people living in shanty towns throughout Seoul; the population living in shanty towns in 1939 reached up to 20,000, and 30,000 people lived in shanty towns in 1942. Occupations of the residents were generally day laborers, porters, peddler, or beggars. Those migrants from rural areas expanded the urban scale of Seoul outside a castle town (Namil Jeon, 2008: pp. 68-69). 47 Ibid. pp. 126-127. 48 According to an unemployment census (implemented on November 15 1931) in Kyoungseong(Old Seoul), Incheon, Kaeseong, Younddeungpo, and Suwon, unemployed people were concentrated in shanty towns within those cities. Considering the result, people living in shanty towns was not only a problem in Seoul but also a problem in other local cities (Ibid. p. 372).
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be grouped together and turned into shanty towns.49 These unauthorized houses were made of tin, veneer, zinc, and asphalt roofing. Without any authorization, they occupied public land such as mountain slopes or riversides.50 After the Korean War, shanty towns were built around the Cheonggye River and in downtown areas. Also, a group of shacks called Haebangchon (Libertiville) was formed around Nasam tunnel 3 or Yongsan 2-ga by refugees from the North.51 According to statistics in 1953, there were 2,643 dugout huts and 5,356 shacks in Seoul.52 In response to this situation, the Seoul city government announced the unauthorized building clearance plan. Based on this plan, about 1,000 unauthorized shacks in downtown Seoul were removed.53, 54 Intermediate Urbanization Shacks clearance and development of resettlement areas In the 1960s, the Seoul city government removed deteriorated houses around the riversides and hill areas for aesthetic improvement in the downtown area. The city government moved the residents to the outer areas of Seoul. Because it lacked enough funds to provide residents in deteriorated neighborhoods with public housing for their residential stability, the city government implemented policies that made the residents move to outer areas of Seoul(Guro-dong, Namkajwa-dong, Hongeun-dong, Nangok, and Sanggye-dong) or local areas(Seongnam in Gyounggi province) around Seoul.55, 56
49 Seongkyu Ha. 2007: p. 67. 50 Namil Jeon et. al. 2008: p. 166. 51 Ibid. p. 166. 52 Ibid. p. 165. 53 Ibid. p. 167. 54 Intensive control and removal of illegal houses was first systemized by the five-year unauthorized building clearance plan. In the plan, disclosing stewardship, stewardship by districts, and the second stewardship were adopted but did not work well. Starting in 1972, aerial photography techniques were used, and about 700 illegal houses were removed annually. 55 KRIHS. 1998: p. 197. 56 From the 1960s to the 1970s, 43,000 poor houses were built in 20 residential areas such as Jeongreung-dong and Sanggye-dong.
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However, these polices led to formation of deteriorated residential areas and separated the residents job places from their living places.57 To deal with this issue, the Seoul city government began to consider construction of citizen apartments. Development of citizen apartment The citizen apartment project was carried out by dividing construction responsibilities between the city government and tenants. In April 1969, Hyeonok Kim, the Mayor of Seoul, mentioned that the city government would dispose of 136,650 shacks in Seoul by constructing 2,000 citizen apartments over three years and moving residents in those shacks into the apartments (Namil Jeon et. al. 2008: p. 203). However, the citizen apartment development project did not work well. The citizen apartment unit size was 42.9 m2, but people living in low-income neighborhoods could not afford to live in the citizen apartment. For these reasons, most residents sold their right to enter the apartments and moved to other low-income neighborhoods in which they could afford to live. In the long term, the citizen apartment projects proved ineffective. Finally, due to a shoddy and fault construction, the Wawoo apartment collapsed in 1970, and the city government terminated the citizen apartment project.58 Adopting on-site residential improvement program This program directly carries out on-site improvement of the built environment in deteriorated neighborhoods. For successful implementation of the on-site residential improvement program, the government established the Temporal Act for Special Measures on Promoting Improvement of Residential Areas to provide a legal basis which enables occupants of public lands to improve their houses by using land compensation price which they obtain by donating part of their land area for public use (KRIHS. 1998: p. 199). This program continued in the advanced urbanization phase.
57 The Kwangju large-scale development plan was established in May 1970 and suggested building settlement areas by moving residents in deteriorated neighborhoods of the Seoul downtown area to Seongnam. However, the plan caused residents to riot because the settlement areas were too far from their working places (Seoul downtown area). 58 KRIHS. 1998: 198.
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Formation and destruction of a deprived area on the hillside Residents living in illegal poor houses like shacks moved to the hill areas until around 1982 and formed poor residential areas on the hillside. These residential areas began to be cleared between 1983 and 2002 through joint redevelopment projects which allowed housing construction companies to participate in the projects as a member of redevelopment unions. Due to the project, the proportion of deteriorated houses located on the hillside over the total number of houses increased from 20% in 1961 to 32% in 1970, but was down to 13% in the mid 1980s. Advanced urbanization Rental housing construction polices for the Low-income class In 1989, the Korean government announced the permanent rental housing construction plan59 and built 190,000 permanent rental houses.60 The 1993 five-year New Economy Plan suggested terminating permanent rental housing development and providing public rental housing which reduces state liability and charge more money on residents (Seongkyu Ha. 2007: p. 213). During President Daejung-Kims administration, permanent rental housing was not provided because of the financial burden. Instead, the government decided to provide citizen rental housing for a period between 10 and 20 years, and planned to construct 200,000 public rental units by 2003. Due to these efforts, Taewoo-Nohs and Youngsam-Kims governments offered 420,000 public rental houses respectively, and 480,000 public rental houses were offered by Daejung-Kims administration. Also, public rental housing (1.32 million units) consists of 170,000 long-term rental housing, 190,000 permanent rental housing, 760,000 public rental housing, and 120,000 citizen rental housing (Seongkyu Ha. 2007: p. 217).
59 The plan suggested building 250,000 permanent rental houses, but the actual number of permanent rental houses built by the plan was 190,000 60 The plan was announced on February 24 1989. The reason why the plan suggested construction of 250,000 permanent rental housing units was that there were 230,000 households receiving public assistance at that time (Seongkyu Ha. 2007: p. 211).
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Residential environment improvement projects and slum area clearance The Temporal Act for the Measure of Improving Residential Environment in Low-income Neighborhoods was enacted from 1989 to 2004.61 This act included residential areas which can accept more than 50 low-income households as a criterion for designating a target area. The act also provided that local municipalities were able to repair infrastructure within the target area, cede public lands to developers, and offer loans for improving housing units. The residential environment improvement project has two types of development: the on-site residential improvements by which residents directly improve their houses when local municipalities provide public facilities and apartment construction, for which municipalities clear the entire area and construct new apartments. In the case of deteriorated areas where landowners or building owners themselves did not have the ability to improve their lands or houses in person, the on-site improvement method did not work well because they usually sold their real estate to realtors and moved to other residential areas.62 The apartment construction method means that the public sector such as municipalities, build apartments and public facilities as project managers after removing all the buildings within the project area. This method also fails to provide low-income residential areas because the project area turns into normal apartment areas where existing building occupants live in apartments just as other new comers do.63 Existing low-income residents are accommodated in rental housing or move to other urban areas far from their working places such as residential areas in satellite cities.
61 The residential environment improvement project is included in the Urban and Residential Environment Improvement Act. As of 2008, 1,118 districts (404,458 residential units) are designated as project areas, and 550 districts (155,974 housing units) are completed. 461 districts (211,784 housing units) are in progress, and 105 districts (33,900 housing units) have not been carried out yet (the Minister of Land, Transport and Maritime Affairs. 2009. MLTM Annual Statistic Data).. 62 Ilseong Yoon. 2002: 178. 63 Ibid. p. 174.
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3. Assessment of Urbanization Policies in Korea and World Banks Urbanization Hypothesis

1) Assessment of Urbanization Policies in Korea (1) Summary of Korea urbanization policies
As shown in Table 11, the contents of urbanization policies in Korea can be summarized by each policy area in response to each urbanization phase. This section will outline some future policy challenges and attempt an overall assessment of urbanization policies in Korea. Urban planning and land management/housing supply policies In the incipient urbanization phase, institutions related to urban development projects were established, but in the intermediate and advanced urbanization phases, various institutions - for instance, land use regulations such as floor area ratio regulations and land conversion permits and long-term planning system - were adopted. In the intermediate urbanization phase, urban development institutions added land acquisition by complete purchase together with existing land readjustment. In the advanced urbanization phase, various kinds of urban development institutions and land use regulations began to be integrated with one another, and regional planning was used. Although providing sufficient housing units in response to rapid urban population growth ensured basic infrastructure, housing supply policies were not a major concern in the incipient urbanization phase. In the intermediate urbanization phase, housing shortages became serious social issues and gradually got worse due to rapid urban growth. Recognizing this problem, the government began to find a solution to the housing shortage and constructed a lot of housing units mainly in apartments. The governments housing construction policies such as the Housing Construction Promotion Act and the 2 million housing construction plan led to large-scale residential development focused on apartment construction. Due to these policy efforts, the most serious housing problems were greatly solved in the advanced urbanization phase.
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Table 11. Departmental/Time-periodic Urbanization Policies Categories Urban Planning and Land Management Establishing land management and ownership Adopting building permits, urban planning districts, and zoning Project bases: Land Acquisition Act, Downtown improvement program(redevelopment), Land readjustment program(new development) Agricultural land reform after Korean Independence Expanding urban planning districts Adopting Floor Area Ratio regulations(70) Land use change permit, Regulation of appropriation of agricultural and forest lands (72) Project bases: Industrial base development through land acquisition by complete purchase(80) Long-term planning : National land development plan, urban comprehensive plan Integrating land use management systems in urban and non-urban areas Adopting a regional metropolitan plan system Land management for preventing chaotic development and ensuring social equity Reasonable, efficient, and cooperative planning system Urban policies focused on urban region Housing Supply Policies Transportation Policies Low-income Deteriorated Neighborhood Policies
Incipient
Lack of housing supply policies Housing shortage due to the Korean War Concentration of population in urban areas : increasing illegal poor housing
Forming the railroad network(1919) : Opening the Kyoungbu railroad line at the end of Chosun dynasty Road: complementing railroads After the 1945 Korea Independence :Improving the railroad network in South Korea (Industrial railroad lines)
Shacks and shanty towns outside the four main gates of Seoul : Influx of farmers from rural areas Shanty towns: Rural farmers, people coming from foreign countries, refugees during the Korean War re-located to urban downtown areas
Inter-mediate
Policies for expanding housing lands(New downtowns, New city) Housing supply policies based on apartment construction Implementing the 2 million housing construction plan etc.
Opening the Kyoungbu expressway: Opening the era of expressways Forming the national road network Expanding subway lines
Removing illegal housing and forcing movement to urban outer areas Residential environment improvement projects: Public land disposal, supporting infrastructure, and deregulating floor area raitios Joint redevelopment projects: removal of low-income deteriorated neighborhoods
Advanced
1st-term and 2nd-term new town construction : formation of new metropolitan areas
Constructing a metropolitan subway network Constructing the Korea Train Express(KTX) line (reducing travel time from 5 hrs to 2 hrs)
Poor residents :scattered throughout urban areas Housing policies for residential tenants and homeless people Supporting Residential improvement programs based on communities Residential stability programs for residential occupants Housing policies for homeless people
Future issues
User-oriented housing construction Expansion of affordable housing Ensuring residential quality: environmentfriendly and energy-efficient housing
Ensuring quality of transportation facilities : Pedestrian paths, green transportation system Finding out solutions to traffic problems in metropolitan areas
Korea Development Institute Compilation Committee. 2010. The Korean Economy: Six Decades of Growth and Development.
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Transportation policies Because the Kyoungbu (Seoul-Busan) railroad was opened at the end of Chosun dynasty and a railroad network had already been formed in the early Japanese colonial period, Korea was able to prepare for the formation of a more modern urban structure in the incipient urbanization phase. In the intermediate urbanization phase, road network based on expressways was constructed and contributed to the development of nationwide transportation systems. Also, in the latter half of the intermediate urbanization phase, urban highways and subway lines were built. In the advanced urbanization phase, the Korea Train Express (KTX) line was constructed and shrank the entire nation into a half-day life zone. Low-income deteriorated residential area policies In the incipient urbanization phase, land ownership by a few landlords or the ruling class forced farmers to lose their land and move to urban areas. In the intermediate urbanization phase, industrialization made rural people move to cities in order to get their job opportunities. While this concentration of rural population in urban areas was in progress, numerous low-income deteriorated neighborhoods such as shanty towns and deprived areas on the hillside formed within urban areas. Later, in the intermediate urbanization phase, these poor neighborhoods were removed to create more efficient land use, and a great number of apartments replaced the poor-quality houses. Due to these efforts, dense low-income deteriorated residential areas were greatly reduced in the advanced urbanization phase. However, the residents from the low-income neighborhoods were scattered over outer metropolitan areas or satellite cities, and lived in non-standard and unstable places such as in building attics or basements.
(2) Overall assessment of urbanization policies
Urban planning and land management institutions have been adopted appropriately in response to each urbanization phase and proved their effectiveness. Transportation infrastructure has also worked properly with the forming of the railroad network system in the incipient urbanization phase and the constructing of expressways in the intermediate urbanization phase. In particular, construction of the Korea Train Express (KTX) line helped reduce saving travel time dramatically and form a spatial
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structure suitable for the advanced urbanization phase. However, the absence of housing supply policies from the incipient urbanization to the intermediate urbanization phase continuously raised housing prices and land prices. As a solution, supplying a great number of houses played a major role in stabilizing housing prices, but demands for high-quality residential environments still pose heavy financial burdens on the national and household economy.
2) Review of World Banks Urbanization Hypothesis (1) Introduction
The World Banks urbanization hypothesis assumes that urbanization generally goes from incipient urbanization to advanced urbanization and that the three policy instruments called institution, infrastructure, and intervention are carried out in a sequential and cumulative way. We believe it is possible and revealing to evaluate the hypothesis based on the results of the urbanization policies in Korea. Like its housing supply policies, low-income deteriorated neighborhood policies in Korea allowed for the privatization of planning profits and the increase of land prices. The low-income deteriorated neighborhood policies tried to solve low-income housing problems only through reconstruction and redevelopment. As a result, communities collapsed, and poor landowners and tenants were forced to live in unstable places, scattered over outer metropolitan areas. Throughout the urbanization policies for each urbanization phase in Korea, urban planning/land management and housing supply policies have failed to make effective policy connections with each other. As a result, Korea achieved efficiency of land use, but did not prevent the privatization of development profits through planmaking and land use change. Low-income deteriorated neighborhood policies carried out the projects by artificially bearing land use costs, but failed to let residents come back to where they lived before. This indicates that Korea did not have the needed social management ability to implement urban planning and land management institutions, housing supply policies, and low-income deteriorated neighborhood policies in an effective way.
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Therefore, the future directions of urbanization policies should focus on developing connections among urbanization policy areas and finding a way to integrate these policy areas. Also, urbanization policies such as housing supply policies, transportation policies, and low-income deteriorated neighborhood policies should be implemented according to peoples future demands. Institutions for urban planning and land management should construct a land management system which prevents disorderly development and ensure equity planning. This should be combined with the development of reasonable, cooperative, and efficient planning systems. In the future advanced urbanization phase, urban policies focusing on metropolitan regions should be greatly complemented and emphasized. Housing supply policies should achieve both the construction of environment-friendly, energy-efficient housing and additional supply of affordable housing. For low-income neighborhoods, residential improvement methods which protect the community should be developed, and policies for residential stability of poor housing occupants and homeless people should be required. Transportation policies should be developed to create a pedestrian-friendly and environmentally friendly green transportation system in conjunction with metropolitan transportation policies.
(2) Review of the hypothesis by policy areas
Urban planning and management To encourage economic agglomeration in certain places in the incipient urbanization phase, institutions for urban planning and management were established so that they could be applied to any planning conditions. Also, in the intermediate urbanization phase, land use regulations were established to respond to specific issue like crowdedness of urban areas by high density development. Considering these urbanization aspects, World Banks urbanization hypothesis would be judged to be valid. The fact is that urban planning and management in Korea was focused on urban development institutions like the land readjustment projects. Floor area ratio regulations and land conversion permits were institutionalized in the intermediate urbanization phase, which is also the process of land acquisition by complete purchase, was first adopted. In the advanced urbanization phase, land use regulations and vari-
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ous institutions for urban development began to be integrated with one another. The application of the regional metropolitan planning system in conjunction with existing comprehensive urban planning can be considered a concrete example of the development of urbanization strategies. Considering the urban planning experience in Korea, the policy area of urban planning and management should include maintenance of housing stocks as basic infrastructure to which people can have accessibility wherever they live. Therefore, it may be desirable to include housing supply policies in the World Banks urbanization hypothesis. Urban connectivity According to the World Banks urbanization hypothesis, it is important to encourage the expansion of connective infrastructure in order to solve congestion problems and spread economic density and its integrated impacts over surrounding areas. By constructing a road network system based on expressways in the intermediate urbanization phase, Korea made it possible to move goods and services quickly. In the advanced urbanization phase, the economic integrated effect was spread over metropolitan areas, and the integration of metropolitan regions was achieved by ensuring connectivity. However, in the incipient urbanization phase, modern cities were built around railroad stations, which caused a concentration of population in cities. Therefore, the roles of railroad networks in the incipient urbanization phase need to be examined. Urban livability The World Banks hypothesis suggests that if slums exist within urban areas and are not developed well enough through the urbanization phases to overcome their problems, intervention should be made by the government. Considering the urbanization process in Korea, however, old buildings around slums as well as low-income deteriorated neighborhoods themselves were gradually removed and joined to real estate development market not by government intervention, but instead by ensuring proper support from the government. This means that except for economic differentiation, low-income deteriorate neighborhoods do not tend to remain slums due to some racial or stratified reasons. Nevertheless, it may be hard to say that economic vitality will continue and
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there will be demand for housing construction and urban redevelopment in the future. It is also very difficult to insist that intervention can solve all low-income deteriorated neighborhood problems. Poor landowners and tenants are scattered all over the outer metropolitan areas or satellite cities. They still live in unstable places such as temporary rental housing or even shacks. This may require another type of intervention by the government.
(3) Wrap-up comments
The World Banks urbanization hypothesis seems valid because it suggests that spatial characteristics of economic growth such as density, distance, and differentiation should be dealt with by the policy instruments of institution, infrastructure, and
Table 12. Assessment of Urbanization Policy Responses Based on World Banks Urbanization Hypothesis Urbanization Urban Planning and Management Privatization of land ownership(Land Survey Act) Building permits/ reorganization of feudal cities/land readjustment projects No housing policies Land use control: designation and expansion of urban planning areas/ Development permits (Agricultural lands/ Forest lands permits) National Territory Comprehensive Plans/urban comprehensive plans Extending supply of housing Integrated management of urban and non-urban areas Adopting a regional metropolitan plan Urban Connectivity Urban Livability
Incipient
Construction of railroad networks before urbanization process
Considering only sanitation problems of urban housing
Intermediate
Era of expressways and cars Subway lines in metropolitan cities : Completing national road network framework
Clearance of shacks and migrants: forming deprived residential areas on the hillside Supporting public lands and infrastructure for residential environment improvement/ Deregulation of building floor area ratio Joint redevelopment projects Removal of low-income residential areas and decentralization Policies for tenants and homeless people
Advanced
Subway lines within city Construction of the express train (KTX)
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intervention. Also, the hypothesis proves its usefulness in the institution area of urban planning and management because urban development, land use regulation, and spatial planning have been greatly developed during Koreas intermediate to the advanced urbanization phase. Finally, this chapter shows that construction of a nationwide expressway network and development of metropolitan transportation systems throughout the urbanization phases in Korea contributed to improving urban connectivity. However, this study cannot sufficiently explain the usefulness of the hypothesis by considering the government interventions to solve slum problems.
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EXEMPLIFICATION OF INDICATOR DIAGNOSIS
In this chapter, eight urbanization indicators selected in Chapter 2 will be applied to evaluate urbanization process in Korea. By using Urban Portfolio, Urban Planning and Management, and Urban Connectivity, this study will diagnose urbanization process in Korea since 1960 and interpret diagnostic results. Finally, based on the outcomes obtained from diagnostic simulations, requirements for construction of an indicator-based diagnostic system will be suggested.
1. Meanings of Indicator-based Diagnosis and Methodology

1) Meanings of Indicator-based Diagnosis (1) Purpose
In this chapter, some of the urbanization indicators developed from the World Banks urbanization hypothesis will be applied to the urbanization process in Korea as an example. The first purposes of this exemplary diagnosis are to determine if it is possible to conduct an indicator-based diagnosis. The diagnostic simulation should prove that basic materials can be obtained which show time-series changes. The second purpose is to find out whether it is possible to interpret the progress of urbanization by using the results of an indicator-based diagnosis. Including finding out if changing the indicators in the urbanization process can explain major urbanization issue changes. The third purpose is to determine whether or not there are any relationships between major urbanization issues and urbanization policies which had been implemented when those issues were discussed.
(2) Significance of indicator diagnosis
Indicator-based diagnosis consists of three policy instruments and indicators that correspond to Urban Portfolio. However, as mentioned in Chapters 2 and 3, this study will not include intervention focused on slums because it is not suitable for
CHAPTER4 EXEMPLIFICATION OF INDICATOR DIAGNOSIS
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present urban conditions in Korea. Therefore, this study conducts its indicator-based diagnosis by using three policy areas - Urban Portfolio, Urban Planning and Management, and Urban Connectivity. In this study, we will attempt to understand how the issues have changed in Korea by considering how the indicators changed from the incipient to the intermediate to the advanced stages of urbanization in Korea. Finally, we will attempt to understand Urban Planning and Land Use Management, Housing Supply Policies, and Transportation Policies by analyzing issue and indicator changes shown in each urbanization phase.
2) A Method of Indicator-based Diagnosis (1) Classification of selected indicators
Among diagnostic indicators developed by the World Bank, eight indicators are selected by considering the availability of time-series data and policy experiences throughout urbanization history in Korea. These indicators will be grouped into three areas as shown in the table 13. The unit of analysis will be statistical data from 165 cities and counties. The
Table 13. Selected Indicators for Diagnosing Urbanization Categories Indicators Urbanization Rate Urban Portfolio Size distribution of cities Urban employment (Sub-category) Water supply rate Urban planning and Management Change of urban lands Housing supply ratio Number of registered vehicles per unit road area Shortest distance to nearby expressway Time-series data 60-05 60-05 60, 85, 05 70-05 75-09 70-05 70-10 70-10 Data Census Census Census Census Cadastral Statistics Housing Census Annual city and province statistic data National digital map
Urban Connectivity
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temporal scope of the data will be time-series data from 1960 or 1970 to 2010.
(2) Indicator Analysis Methodology
In order to analyze the indicator data, this study will use Morans I (Index). This is because it is very hard to analyze transformation of 165 cities and counties in an objective manner by using time-series mapping data. Morans Index analysis is very useful in analyzing changes of visualized spatial distribution in an objective manner. This method of analysis calculates the spatial autocorrelation of spatially distributed data and shows the spatial distribution results in an exponent. The exponents have values between negative one (-1) and positive one (+1). As shown in Figure 15, a positive autocorrelation means that similar values are mutually close to one another, and a negative autocorrelation shows that high and low values are regularly mixed and dispersed within the region.
Figure 15. Moran s I Statistic of Spatial Autocorrelation
2. Indicator-based Diagnosis
1) Urban Portfolio (1) Introduction
Urban Portfolio will be diagnosed by analyzing the urbanization rate, size distribution of cities, and urban employment. To interpret the change of urbanization
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rates between 1960 and 2005, Morans I spatial autocorrelation analysis will be used at both the national and regional levels. The size distribution of cities will also be analyzed by considering change in proportion of the population compared with city size, the number of cities, and the national population as well as any spatial autocorrelation analysis at the national level. Finally, urban employment will be diagnosed by analyzing the change in the distribution of the manufacturing employment ratio in cities and counties.
(2) Indicator diagnosis
Urbanization rate Data Source: Census (1960-2005, five-year census data) Time Period: 1960-2005 Calculation: the population living above the town level the total population of cities and counties Analysis by 6 regions As for the change in urbanization rates at the city-county level, the gap in the urbanization rate between the capital region and the other five local regions decreased from 20~40% in 1960 to less than 20% in 2005. In the intermediate urbanization phase, the capital region had a higher urbanization rate than Youngnam (20%)
Table 14. Change of Urbanization Rate in 6 Regions 1960 Capital Region Kangwon Region Chungcheong Region Honam Region Youngnam Region Jeju Region Nation 60.0% 29.3% 20.9% 24.1% 36.4% 38.7% 35.5% 1970 76.4% 40.1% 30.3% 30.6% 48.6% 53.8% 49.8% 1980 87.8% 51.6% 45.5% 41.2% 66.8% 60.4% 66.8% 1990 93.4% 59.0% 59.5% 58.3% 78.0% 83.9% 79.5% 2000 97.5% 75.2% 80.8% 77.8% 80.6% 74.9% 91.5% 2005 99.1% 76.6% 83.7% 79.9% 75.7% 77.6% 93.5%
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and other regions (40%), but in the advanced urbanization phase, the rates of the other local regions converged into 80% which is similar with that of the capital region. This indicates that national land development policies during the early economic growth period were concentrated on the development of growth poles by locating large-scale industrial districts in the Youngnam region.
Figure 16. Change of Urbanization Rate in 6 Regions
Morans I analysis (Urbanization rate)
Figure 17. Morans I Analysis (Urbanization Rate)
Morans I shows spatial autocorrelation shifts from negative to positive values
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in 1980. An increase in Morans Index since 1980 indicates that many middle or small cities and counties began to be concentrated near large metropolitan cities Analysis at the city-county level
Figure 18. Change in Urbanization Rate of Cities and Counties(1960-2005)
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Size distribution of Cities Data Source: Census (1960-2005, five-year census data) Time Period: 1960-2005 Units of Analysis: the number of cities and population, proportion of the population(%) The number of cities and proportion of the population by city size
Figure 19. The No. of Cities by City Size
Figure 20. Proportion of the Population by City Size
According to Figure 19, large metropolitan cities experienced remarkable urban growth in the intermediate urbanization phase, but in the advanced urbanization phase, the number and population share of cities with a population between 200,000 and 500,000 relatively increased. The number of cities over one million increased from two in 1960 to eight in 2005, and the population share of cities over a million reached the peak of 49.3% in 1990. On the other hand, the number and population share of cities with a population between 20,000 and 50,000 have continuously decreased since 1980.
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Figure 21. Change in Distribution of Cities by Size (1960~2005)
Morans I Analysis (Size distribution of cities)
Figure 22. Morans I Analysis Result (Size Distribution of Cities)
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Morans I indicates that the index value changed from a negative to positive autocorrelation in 1990. This means that large cities have tended to be more intensively distributed around specific regions since 1990. In other words, the urbanization structure gradually changed, forming large metropolitan regions. Proportion of manufacturing employment in cities and counties Data Source: Census (1960, 1985, and 2005) Time Period: 1960-2005 (the manufacturing employment data in 1960, 1985, and 2005 will be used because of the limited availability of statistic data by industrial fields at the city-county level) Calculation: The number of manufacturing employees the total number of employees Change in the share of manufacturing employees at the city-county level
Figure 23. Change in the Share of Manufacturing Employees at the City-county Level (1960, 1985, 2005)
In 1960, the proportion of manufacturing employees at the city-county level was only 9.6%, and the disparities in the share of manufacturing employees among regions were small. However, in 1985, the percentage of manufacturing employees in cities and counties increased by 20% on average, and the disparities among regions became bigger because of the concentration of manufacturing employees in certain
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regions, primarily in the capital region and the Youngnam region. This shows that disparity among regions in the 1980s resulted from industrial district development policies focused on developing growth poles between the 1960s and the 1970s. In 2005, the national average of the percentage of manufacturing employees decreased to 16.1%, and the number of regions with a manufacturing employee rate of over 40% dropped. However, the number of regions with manufacturing employee rate between 10% and 30% increased. This shows that manufacturing workers were now becoming more evenly distributed all over the country in the advanced urbanization phase after being concentrated in specific areas in the intermediate urbanization phase Morans I Analysis
Figure 24. Morans I Analysis Result (Proportion of Manufacturing Employees)
The Morans I shows a high positive correlation in 1985, but slightly decreases in positive correlation in 2005. Although there is no distinctive difference among regions in terms of the number of employees in manufacturing in 1965, the Capital and Youngnam region show a relatively high concentration of employees in manufacturing. However, in 2005, this tendency toward concentration was mitigated.
(3) Synthesis of Diagnostic results
The diagnostic results in terms of transformation of urban structure are summarized in Table 15. In the intermediate urbanization phase, there was a difference among regions in terms of urbanization progress because the development of growth poles influenced the national spatial structure. However, the disparity began to decrease in the advanced urbanization phase. Metropolitan regions
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Table 15. Diagnostic Results: Urban Portfolio Categories Urbanization rate Urbanization disparity (the capital region /other local regions) Size distribution of cities Urban growth in metropolitan cities Proportion of manufacturing employees Decrease in concentration of specific areas Diagnostic results Intermediate Capital region : higher urbanization rate than Youngnam (20%) and other local regions (40%) Deepening concentration of the capital region Advanced Great increase in urbanization rate of non-capital regions Deepening concentration of the capital region/nationwide urbanization Rapid increase in the no. of cities with population between 200,000 and 1 million No change in the no. of cities over 1 million Synthesis A big gap among regions due to development of growth poles in the intermediate urbanization phase;disparity was reduced in the advanced urbanization phase Large proportion of metropolitan cities in the intermediate urbanization phase; increase in the proportion of middle-scale cities in the advanced urbanization phase Concentration of manufacturing workers on specific areas in the intermediate urbanization phase; Even distribution in the advanced urbanization phase
Concentration of population on metropolitan cities Decrease in the no. of cities
Concentrated on the capital and the southeast regions
Balancing proportion of manufacturing employee distribution
were formed and caused a transformation of urbanization structure. Finally, middle-scale cities with populations between 200,000 and 1,000,000 began to grow rapidly.
2) Urban Planning and Management (1) Indicator-based diagnosis
Water supply ratio Data Source: Korea Urban Statistic Yearbook(1971-2005, five-year data) Time Period: 1971-2005 Calculation: the total population within administrative districts the population using water (For water supply ratio of counties, the ratio at town level is used.)
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Change in the nationwide water supply ratio
Figure 25. The Population Using Water and The Figure 26. Water Supply per capita per day and Water Supply Ratio Capacity
Change of water supply ratio: city-county level
Figure 27. Change of Water Supply Ratio (1971-2005)
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The increasing trend of the water supply ratio has been slowing down since 1990. This means that accessibility to water supply facilities has been increasing in response with the urbanization rate change. The average amount of water supplied per capita peaked in 2000, but is gradually decreasing. This indicates that any quantitative water supply shortage has been almost resolved recently. Morans I Analysis
Figure 28. Morans I Analysis Result (Water Supply Ratio)
Except for the index value in 1980, Morans I analysis results show that a positive autocorrelation has steadily increased since 1985 and began to be stable around 1995. This means that cities and counties with high water supply ratios tend to remain close to one another. It can also be inferred that the regional water supply network was constructed in conjunction with the formation of large metropolitan areas and has provided water with stability. Urban land area Data Source: Cadastral statistics (1975-2009, five-year data) Time Period: 1950-2009 Calculation: The total area of urban land can be calculated by summing up areas of lots, manufacturing sites, school sites, roads, and railroads. Nationwide change of urban land area by land use There was a decrease in the supply of urban land between 1995 and 2000 due to financial crisis in Korea. Later, large quantities of urban land became available between 2000 and 2005 to compensate for the temporary decrease, but 113 km2 of urban
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Table 16. Urban Land Area Change by Land Use Categories 1960 Urban Land km2 Increment (Rate,%) 1975 2,792 21,338 63,776 4,846 92,752 1980 3,327 535 (16.1) 21,661 63,203 5,793 93,983 1985 3,708 381 (10.3) 21,696 64,249 6,046 95,700 1990 4,216 507 (12.0) 21,822 64,346 6,434 96,817 1995 4,850 634 (13.1) 21,989 65,506 6,942 99,286 2000 5,030 179 (3.6) 21,600 65,143 7,689 99,461 2005 6,101 1,071 (17.6) 21,216 64,805 7,524 99,646 2009 6,638 536 (8.1) 20,845 64,472 7,943 99,897
Agricultural land Mountains Others Total
land (565 km2 every five year) has been added to cities every year. The reason why urban land can be steadily provided is that land acquisition by complete purchase was included in the Industrial Base Development Promotion Act (1973) and the Residential Land Development Promotion Act (1980) as a new method of land acquisition. Urban land area change: the city-county level
Figure 29. Urban Land Change at the City-County Level (1970-2009)
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Morans I analysis
Figure 30. Morans I Analysis Results (Urban Land Area)
The Morans I results indicate that the index values are close to zero. This means that urban lands are evenly developed throughout Korea regardless of land categories. However, the Morans I values in 1980 and 1990 are negative. This means that there were a lot of urban development projects in local metropolitan areas. Housing supply ratio Data Source: Census (1960-2005, five-year data) Time Period: 1960-2005 Calculation: The number of housing The number of households Change in the number of housing units and the housing supply ratio
Figure 31. Change in the Number of Housing Units and the Housing Supply Ratio (19622008)
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Until 1985, housing supply ratio had continuously decreased because the increasing number of housing units did not keep up with the increasing number of households. However, since 1990, housing supply ratios have steadily increased. In particular, there was a rapid increase in housing supply between 1990 and 1995 (13.6%) and between 1995 and 2000 (9.8%). This increase in the housing supply ratio after 1990 resulted from the construction of 2.85 million housing units mentioned in the 2-Million Housing Construction Plan (1988-1992) and the five-year New Economy Plan (1993-1997) Analysis by regions
Table 17. Change of Housing Supply Ratio by Regions 1970 Capital Region Kangwon Region Chungcheong Region Honam Region Youngnam Region Jeju Region Nationwide 60.9% 79.8% 85.2% 84.3% 75.3% 84.3% 74.4% 1975 58.2% 78.5% 81.9% 82.0% 69.8% 76.1% 70.1% 1980 56.2% 78.0% 79.9% 80.2% 65.3% 73.2% 66.5% 1985 54.4% 77.8% 76.2% 77.4% 63.0% 68.0% 63.6% 1990 55.6% 79.2% 75.8% 76.3% 61.8% 68.3% 63.0% 1995 64.5% 83.5% 82.9% 83.1% 70.2% 75.2% 70.9% 2000 70.3% 85.9% 85.5% 87.6% 77.4% 77.6% 76.5% 2005 74.2% 85.5% 83.3% 87.9% 79.7% 79.8% 78.6%
Figure 32. Change of Housing Supply Ratios by Regions
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The housing supply ratios of the other five local regions other than that of the capital have been above the average (the national housing supply ratio). Housing shortage problems in the capital region were so serious that the housing supply ratio was lower than the national average by 10~15%. Although housing supply ratios for all regions have increased since 1990, the housing supply ratio of the capital region is still lower than the national average by 5%. Change of housing supply ratio at the city and county level
Figure 33. Change of Housing Supply Ratio (1970-2005)
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Morans I analysis
Figure 34. Morans I Analysis Result (Housing Supply Ratio)
The Morans I results show a positive autocorrelation throughout the time period, indicating that the housing supply ratio began to stabilize after 1995. This means that housing shortage problems occurred throughout middle- and large-scale cities, but expanded to the metropolitan cities or the capital region. The reason why the index
Table 18. Diagnostic Results: Urban Planning and Management Categories Diagnostic results Intermediate 70~90 : greatly increased from 33.2% to 78.5% Advanced 90~08 : increased from 78.5% to 94.1% 95 ~ : High water supply ratio in metropolitan cities 90-09 : increased 2,422km2 (127km2 annually) Synthesis Coping with changes, regional water supply system was constructed in the advanced urbanization phase Institutionalizing Land Acquisition by complete purchase (75,80) : Stable supply of urban lands Two large-scale housing construction plans (88, 93) were implemented in the advanced urbanization phase
Water supply
Stabilized after 1995 Urban land Implementing stable supply of urban land Housing supply ratio Decreased in the intermediate urbanization phase Increased since 1990 Exceeding 100% since 2002
75-90 : increased 1,424km2 (95km2 annually)
62~85 : decreased from 82.4% to 69.8%
90: 72.4% 02 ~: more than 100%
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values between 1985 and 1990 were relatively low is not that housing stock was concentrated n specific areas but that the increasing number of housing units constructed failed to satisfy the demand caused by the increase in the number of households.
(2) Synthesis of diagnostic results
Water supply has been implemented in response to urbanization progress. Construction of regional water supply systems in 1990 contributed to the stability of water service. In 1975 and 1980, land acquisition by complete purchase for industrial base development and residential land development was institutionalized to provide urban land. Also, the two housing construction plans provided a great deal of housing within a short period of time, and the housing shortage was greatly reduced in the advanced urbanization phase.
3) Urban Connectivity (1) Indicator-based Diagnosis
The number of registered vehicles per road length Data Source: City and prefecture statistic yearbook Time Period: 1970-2010 (five-year data) Calculation: The number of registered vehicles per 100 cars Road Length (km)
Figure 35. Change in the Number of Registered Vehicles per Road Length
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Change in the number of registered vehicles per road length Although roads have been continuously extended, the number of registered vehicles has skyrocketed since 1990. The increasing trend has been gradually slowing down since 2000, but the graph shows that especially in metropolitan regions, transportation policies should focus on developing the public transportation system instead of transportation policies for the construction of roads. Change in the number of registered vehicles per road length at the city and county level
Figure 36. Change in the Number of Registered Vehicles per Road Length at the City-county level
The Morans I results show a continuous increase toward positive autocorrelation. This means that despite the expansion of roads, spatial concentration and the number of registered vehicles are both increasing at a remarkable rate.
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Morans I analysis
Figure 37. Morans I Analysis Result (The Number of Vehicles per Road Length)
Arrival time to the closest expressway interchange Data Source: National digital map (National Geographic Information Institute, partially revised) Time Period: 1970-2010 (five-year data) Calculation: Assuming that it takes 10 minutes for a vehicle to drive 10 km, this study will calculate the total areas accessible to the closest expressway interchange through arterial roads of each city and county according to arrival time (10 min., 20 min., and 30 min.).
Figure 38. Land Area Accessible to the Closest Expressway Interchange According to Arrival Time (1970-2010)
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Change of area by arrival time to the closest expressway interchange The proportion of area accessible to the closest expressway within 10 minutes (10 km) increased from 2.4% in 1970 to 16.2% in 2010. Also, area accessible to the closest expressway within 20 minutes (20 km) increased from 8.1% to 38.6%; the area within 30 minutes (30 km) increased from 14.7% to 55.4%. As shown in Figure 39, the increase in area accessible to the closest expressway interchange within a short time means that people are able to go to many places (other than mountain regions) within 30 minutes. Change of areas by arrival time to the closest expressway interchange at the city and county level
Figure 39. Change of Area by Arrival Time to the Closest Expressway Interchange (1970-2010) and Topographical Map (Bottom Right)
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According to Figure 39, accessibility to central inland region was greatly improved in 2000. This may be an outcome of the third National Territory Comprehensive Plan by which a grid road network system (7 x 9) was almost completely constructed. While accessibility to expressways greatly improved throughout the country, the opening of the Korea Train Express (KTX) in 2004 greatly reduced travel time.
(2) Synthesis of diagnostic results
The recent increase in the number of personal vehicles in the advanced urbanization phase accelerated the formation of large-scale metropolitan areas. Also, heavy traffic became one of the major concerns in metropolitan areas. Therefore, in the future, new transportation policies which focus on developing public transportation should be required. In the 2000s, accessibility to expressways has greatly improved. Expressways now serve as a basic service infrastructure to support economic activities and improve the quality of life.
Table 19. Diagnostic Results: Urban Connectivity Categories Diagnostic results Intermediate Advanced Synthesis Increase in the number of vehicles formed large-scale metropolitan regions, Construction of roads and automobileoriented transportation policies did not work any longer. The third National Territory Comprehensive Plan(1992-2001) : Completing a grid road network system (79) Accessibility to expressway has been greatly improved
The no. of vehicles per road length
The no. of vehicles (100cars)/road length (km)
The increasing number of vehicles was relatively small compared with road extension.
The number of vehicles increased rapidly after 1990.
Arrival time to the closest expressway interchange Land area by arrival time accessible to the closest express way interchange (km)
Continuous expansion of expressways Area accessible to the closest expressway interchange within 30 minutes in 1970 : 14.7%
Expansion of expressway into central inland region in 2000 Area accessible to the closest expressway interchange within 30 minutes in 2010 : 55.4%
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3. Indicator Diagnosis Results and Considerations for Construction of Diagnostic Indicators

1) Indicator Diagnosis Results
In terms of the three policy areas suggested in Chapter 2, the results of the indicator-based diagnosis the process of urbanization in Korea can be synthesized as follows: First, three indicators of Urban Portfolio verify the development of growth poles and the concentration of population in local metropolitan cities in the intermediate urbanization phase. Study of the indicators also reveals a tendency to form large-scale metropolitan regions in the advanced urbanization phase. Second, three Urban Planning and Management indicators shows that urban lands were supplied stably through land acquisition by complete purchase established in the intermediate urbanization phase. The indicators of housing supply ratio reveal that housing shortage problems were somewhat resolved in the advanced urbanization phase. Finally, through the indicators of Urban Connectivity, this study shows that expressways gradually served as a basic service infrastructure and that large-scale metropolitan areas have been formed. In conclusion, all the indicators in this study made it possible to understand the impact of development of institutions and the challenges related to infrastructure between the intermediate urbanization phase and the advanced urbanization phase.
2) Considerations for Diagnostic Indicators
In order to make use of urbanization diagnostic indicators in developing countries, it is very important to construct a supportive system or a basic framework. When considering the diagnostic results of urbanization process in Korea through eight indicators, one should consider the following three things for constructing a indicator diagnostic system. First, indicators should be closely linked with relevant policies. The indicators should serve as tools for evaluating policy outcomes or urbanization progress. The results drawn from the indicator-based diagnosis should be evaluated through a comparison of relevant policies and used for policy readjustment. When policies related to urbanization are covered in the long-term plans, overall goals of the plan can
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be implemented with consistency. Also, in order to control the enforcement status of major policy challenges, a monitoring system should be constructed. Indicator diagnosis can gain validity when the plans including relevant policy issues are carried out together. Therefore, it is necessary to discuss who should be responsible for establishing and implementing the indicator-based diagnosis system - the central government or municipalities. The central government may include the system in the national spatial structure planning in the early urbanization process. However, as urbanization progresses, regional or local municipalities should further develop the indicator diagnostic system, handling a significant part of the spatial structure plan. Second, the database should be constructed by collecting data used for indicators, and a comprehensive system for analyzing the collected data should be required. There may be some data which are definitely needed but cannot be obtained. In the case, a separate survey system should be required, and survey should be made regularly. Newly collected data should be made ready for analysis by constructing the GIS database in conjunction with existing statistic data and indicator diagnosis. Some experts and specialized equipment may be also required. Finally, the evaluation process of the diagnostic results through comparison with existing policies should be open to the public as well as to relevant authorities or municipalities. Also, the evaluation process should be discussed with the participation of domestic and international experts, including relevant international organizations. This enables developing countries which adopt the indicator diagnosis system to get helpful, effective advice and helps policy makers cultivate judgments for a policy decision.
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CONCLUSION
This chapter deals with overall conclusions about the diagnostic results of the urbanization process in Korea based on the World Banks urbanization hypothesis and discuss the possible application of research outcomes and directions for further research.
1. Main Conclusions
The World Banks urbanization hypothesis was developed as a model which combines urbanization policies implemented in developing countries with the spatial characteristics of economic growth. This study is conducted to apply this hypothetical model to the urbanization process in Korea. Based on the purpose of this study, three main conclusions are drawn and details for each conclusion are given from the research results of the previous chapters. As the first main conclusion, the significance of the World Banks urbanization hypothesis needs to be summarized. First, this hypothesis basically takes a positive approach to urbanization, so it is different from urban policy models in developed countries which consider urbanization in a negative way. For this reason, the World Banks urbanization hypothesis is more suitable for the development process in Korea, which implemented urbanization and economic growth at the same time in the late 20th century. Urban planning in Korea was introduced before industrialization, and urbanization began and has played a role in supporting economic growth. This is also different from urban planning in developed countries, which have traditionally considered urban planning as a way to solve urbanization problems. Second, the World Banks urbanization hypothesis provides Korea with an opportunity to interpret its own urbanization and development process for itself. In the World Banks urbani-
CONCLUSION
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zation hypothesis, the spatial characteristics of economic growth according to urbanization phases - such as density, distance, and division - should respond to policy instruments such as institution, infrastructure, and intervention. In this study, the premise of the hypothesis proved very useful in interpreting the urbanization process and policies in Korea. The second main conclusion is about facts which were analyzed by examining urbanization policies in Korea on the basis of World Banks urbanization hypothesis. First, the important thing in the hypothesis is institutional development in response to the progress of urbanization. Change and development of Urban Planning and Management in the urbanization phases confirm this perspective. Urban planning focused on development institutions in the incipient urbanization phase. However, as urbanization progressed, urban planning and management concentrated on land use management in the intermediate urbanization phase and finally put an emphasis on institutions to make plans in the advanced urbanization phase. Recently, these institutions have been showing a tendency to be integrated with one another. How connections can be made among institutions and among policy areas will be one of the major concerns in the future. Second, infrastructure has played an important role in spreading urbanization all over the country. Since the railroad network had already been constructed in the incipient urbanization phase, modern cities were able to be built around railroad stations. In the intermediate urbanization phase, the Korea government supported rapid economic growth by extending expressways. In the advanced urbanization phase, construction of the road network around metropolitan cities encouraged formation of regional metropolitan areas. Third, this study shows that while there are some parts in which the urbanization process in Korea cannot sufficiently verify the World Banks hypothesis, some policies which have been emphasized in Korea may diverge from the hypothesis. The former is about slums which need intervention as a policy instrument in response to division. In Korea, slums in the incipient and the intermediate urbanization phases were removed through low-income deteriorated residential redevelopment and integrated into cities. However, in reality, those communities then collapsed and became scattered over other urban areas, carrying the problems of individual households with them. It may be time to take action for individual households, but it may be a hasty conclusion to say that division
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will not be one of the major policy challenges in the future because multi-cultural societies have not yet taken root in Korea and slow growth in the population may be expected. The latter is about housing supply policies. Korea failed to supply sufficient housing in the incipient and the intermediate urbanization phases when housing shortages occurring as a result of urbanization was a serious problem. In the advanced urbanization phase, the large-quantity housing construction plans were implemented, and an absolute shortage of housing was alleviated to some extent. Considering the results of this study on this issue, it seems quite reasonable that housing supply should be handled in a systematic way as soon as possible. Also, housing supply policies should be considered as one of important component in the Urban Planning and Management field. The third main conclusion is about the diagnostic results of the urbanization process in Korea. The World Bank developed 59 indicators which can be grouped into 4 areas, 7 departments, or 18 sections. However, this study diagnosed the urbanization process in Korea by using eight indicators grouped into 3 areas, 6 departments, or 8 sections. Basically, indicator diagnosis seems useful in examining urbanization policies. Indicators of the Urban Portfolio area make it possible to show the impact of development of growth poles implemented in the intermediate urbanization phase and to explain formation of metropolitan areas caused by population distribution into neighboring middle-scale cities. Indicators of the Urban Planning and Management area indicated that a stable supply of urban lands contributed to solving housing shortage problems to some degree. Using indicators of Urban Connectivity, we could see that expressways gradually became a basic service infrastructure in the advanced urbanization phase, and that metropolitan areas were constructed later. In this way, indicators proved that the impact by institutional development and infrastructure have been gradually changing their major concerns through the progress of urbanization from Koreas intermediate to its advanced urbanization period.
2. Application of Research Outcomes and Further Research
1) Application of Research Outcomes
It is hoped that the outcomes of this study can be used as a reference by developing
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countries and by the World Bank, which supports developing countries for the following reasons. First, the outcomes of this study help developing countries develop directions for their future urbanization policies by referring to the urban development model in Korea so that countries can learn how Korea has developed urbanization policies so far. In particular, when developing countries try to benchmark the urbanization process of Korea, this study can help them to create their own overall development process easily. In this way, developing countries can understand other detailed information - such as economic development and national land development - in the entire urbanization structure. In addition, if necessary, the World Bank can modify the urbanization hypothesis and add some indicators in this study to the diagnostic indicator list by considering the results of the urbanization process in Korea. For instance, the contents of development of urban planning institutions or types of transportation infrastructure and its changes can be used for complementing indicator analysis. Also, it will be an interesting subject for the World Bank to consider how to interpret Koreas policy experience for housing supply policies and intervention for slums in Korea.
2) Directions for Further Research
The subjects which need further research can be divided into two categories: contributions to developing countries and suggestions for development of urban policies in Korea. Three things should be considered for the subject of contribution of establishing indicator diagnostic systems in developing countries. First, it is necessary to understand social backgrounds of urbanization which varies from country to country. In order to identify social backgrounds in each urbanization phase, it is very important to investigate social systems formed at that time. For example, in the case of socialist countries in the past, land ownership and development subjects may play a major role in each urbanization phase. Second, implementation of urbanization is closely related to the social and political structure of the country. The preliminary research on this issue serves as a basic premise for studying urbanization policies in developing countries. For instance, in-
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formation about social structure may contain how many peoples the country has. Also, social structure provides information about how the governance system of the country is organized and composed. How the governance system changes when urbanization progresses should be a basic assumption for studying relationships between urbanization policies and the social and political structure of the country. Third, just as the Urban Planning and Management area is considered the most important issue, the progress of urbanization in developing countries can be easily recognized from the contents of urban planning and management. In order to understand what urbanization phase a particular developing country belongs to, it can be very helpful to understand the contents of urban planning and management implemented in that country. The second subject for further research is related to the directions for development of urban policies in Korea. This study discovered some urban policy challenges which were not sufficiently handled in Koreas three urbanization phases or needed to be improved or newly implemented. To begin with, low-income deteriorated neighborhoods were integrated into the existing urban structure without guaranteeing residential stability, and existing communities in the neighborhoods collapsed. These phenomena make us wonder whether policy measures for low-income deteriorated neighborhoods were reasonable. Therefore, it is necessary to study whether a new paradigm should be required in the advanced urbanization phase to find solutions to low-income deteriorated neighborhoods. Second, fundamental reasons why institutions such as urban development programs and land use management programs should be integrated should be considered. Specialized urbanization policies implemented in the intermediate urbanization phase tend to be synthesized from resident, customer, citizen, and local community perspectives. In terms of spatial structure, peoples daily life and economic activities take place beyond administrative districts, and metropolitan regions are formed as a sign of spatial integration in the advanced urbanization phase. Therefore, a further study of social backgrounds and directions of institutional integration can contribute to making future policy directions clear.
CONCLUSION
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Reference
Jeongha Kang. 1997. The Five-year Economic Development Plan. Seoul Journal of Economics Vol. 36 No. 1. pp. 27-76. Korea Research Institute for Human Settlements (KRIHS). 1996. The 50 Years of National Territory Development in Korea. Seoul Press. ______________________________________________. 2008. The 60 Years of National Territory Development: Convulsion of Nature. Ministry of Land, Transport, and Maritime Affairs (MLTM). 2010. The Annual Report of the National Territory Planning and Use. Uiwon Kim. 1982. History of National Territory Development in Korea. Univ. Press. Hyeonsik Kim et al. 1998. Development and Challenges of Urban Policies. A KRIHS Report. Hyeseung Kim. 2007. Housing Needs 2006 based on Minimum Housing Standard and Affordability. A KRIHS Report. Korea Planners Association. 2004. National Territory and Regional Planning. Boseonggak. Republic of Korea. 2000. The 4th National Territory Comprehensive Plan (2000-2020). _______________. 2005. The Revised National Territory Comprehensive Plan (2006-2020).
REFERENCES
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Jeongmok Sohn. 1982. A History of Socioeconomics in Korea during the Opening Port Period. Iljisa. ______________. 1984. A Study on Society of Chosun dynasty. Iljisa ______________. 1996. Urbanization Process during the Japanese Colonial Period. Iljisa. Jeongduk Lim. 1997. Urbanization and Urban Economy: Policies for Fostering Urban Industry. Urban Issues, Vol. 32 No. 348. Public Official Benefit Association. Heenam Jeong et. al. 2008. Policy Tasks to Improve Compensation System for Mitigation of Conflicts in Public Works. KRIHS. Sekwan Sohn et. al. 2008. The Social History of Housing in Korea. Dolbaegye Press. Jeongsoo Jin, Hyeseung Kim, Mina Kang. 2009. A Study on the Housing Safety Net of Low-income Household. KRIHS Report. Namil Jeon, Sekwan Sohn, Sehwa Yang, and Hyoungok Hong. 2008. The Social History of Korea Housing. Dolbaegye Press. Seongkyu Ha. 2007. Housing Poverty and Public Housing in Korea. Jipmoondang Press. Korean Development Institute (KDI) Compilation Committee. 2010. The Korean Economy: Six Decades of Growth and Development. Korea Development Institute. Korea Bank. 2005. The 60 Years of Korea Independence by Numbers Jooseong Han. 2007. Population Geography. Hanul Academy. Korea Planner Association. 2008. Urban Planning (5th Edition). Boseonggak Press. Berry B.J.L. 1981. Comparative Urbanization: The Making of the twentieth Century. New York: St. Martins Press. Sung Woong Hong. 1997. Building A Power House: Korean Experiences of Regional Development and Infrastructure. Korea Research Institute for Human Settlements. The World Bank. 2009. Reshaping Economic Geography: World development report. The World Bank. 2010. Urbanization Review: Priorities for accelerating growth and poverty reduction. Notes for Discussion with Urbanization Review Advising Panel. May 10, 2010.
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Appendix
The appendix of this study includes case studies related to Urban Planning and Management, Urban Connectivity, and Urban Livability in Korea. Specifically, land acquisition and compensation in urban development, cases of reducing inter-city connection costs, and environment-friendly residential redevelopment projects by using the geothermal energy system will be included in this study.
1. Land acquisition and compensation

1) Land development accomplishment in Korea
There are two kinds of land acquisition programs in executing land redevelopment projects in Korea. The first kind is when land is held by individual land owners, but projects are carried out by reducing the areas of individual lots and moving their locations for payment of public facilities and construction. This is called a Land Readjustment Program. The other kind of the land acquisition program is the Complete Purchase Program. This program enables developers to acquire all land ownership within the planning area and is based on the Residential Land Development Promotion Act. In principle, the act suggests land acquisition through consultation, but if consultation does not work well, developers can exercise compulsory land acquisition based on the Land Acquisition Act. Out of the designated land area through the land readjustment program, originally, the 477.2 km2 (542 designated districts) of land area was designated for development between 1950 and 2005.1 The total developed land area by the 1980 Residential
1 KRIHS. 2008. The 60 Years of the National Land Development in Korea: Development Projects. p. 35
APPENDIX: URBANIZATION POLICIES IN KOREA
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Land Development Promotion Act was 816.5 km2 as of 2008.2

2) The Land Acquisition and Compensation Act
The Land Acquisition Act established in 1962 provided a process for compensation for cases when lands are compulsorily purchased. In 1975, establishment of the Act for the Acquisition and Compensation of Public Lands made it possible to purchase and compensate for lands through consultation between land owners and developers. However, as of 2002, the two acts were integrated into a single law and were first implemented in January 2003.3 Land compensation prices through consultation are determined by the price of the land established at the time of consultation, and the compensation is then made according to the established price when the final decisions for the land acquisition and use are settled. Developers pay the land prices to the land owners individually. The land compensation prices are based on the officially assessed individual land price (OAILP) established by the Korea Ministry of Land, Transport, and Maritime Affairs (MLTM). In other words, the final land compensation price is assessed according to the following factors: the land use potential based on the relevant laws and regulations from the basic date to the price point, the fluctuation rate of land prices generated by the public projects concerned, the growth rates of the Producer Price Index (PPI), and other relevant factors such as location, shape, surroundings, and current use of the land.4
Appendix Table 1. Calculating the Land Compensation Price
Land Compensation Price = Officially Assessed Individual Land Price(OAILP) Adjustments of price point (Growth Rates of PPI, Fluctuation Rates of Land Price, etc.) local factors individual factors other correction factors for assessment
2 Ministry of Land, Transport, and Maritime Affairs (MLTM). 2009. The 2009 MLTM statistic yearbook. p. 317 (Residential Designated Land Area by Development Companies/ Land Supply Area by the Residential Site Development Projects) 3 Heenam Jeong et. al. 2008: pp. 42-43 4 Ibid. p. 53
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Appendix Table 2. Land Acquisition Decisions and Appeals in Korea Total acquisition land area 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 206,279 176,625 167,381 132,493 120,369 132,101 156,898 155,931 137,274 393,012 Total the no. of cases 1,441 1,661 1,410 1,557 1,759 1,798 1,737 1,966 2,207 2,196 Land area 26,276(12.7) 19,017(10.8) 12,082(7.2) 15,742(11.9) 15,427(12.8) 14,947(11.3) 19,994(12.7) 22,908(14.7) 21,495(15.7) 32,748(8.3) Acquisition Decisions the no. of cases 710 803 748 849 892 915 919 990 1,134 1,136 Land area 20,675(10.0) 12,368(7.0) 8,956(5.4) 13,156(9.9) 11,311(9.4) 11,356(8.6) 15,421(9.8) 15,050(9.7) 15,837(11.5) 23,983(6.1)
(units: cases, thousand m2, %) Appeals the no. of cases 731 858 662 708 867 883 818 976 1,073 1,060 Land area 5,600(2.7) 6,649(3.8) 3,126(1.9) 2,586(2.0) 4,116(3.4) 3,592(2.7) 4,573(2.9) 7,358(4.7) 5,658(4.1) 8,765(2.2)
MLTM. 2007. MLTM statistic yearbook
3) Land acquisition decision and appeals5
The land area purchased through compulsory land acquisition decisions is, on average, approximately 10% of the total land area of public work projects. The total number of cases which are currently on appeal to the court because of a failure to reconcile conflicts is about 3% of the total land area of public work projects on average. However, the proportion of compulsory land acquisition applications has been decreasing to some degree recently. The percentage of applications increased from 5.4% in 1999 to 11.5% in 2005, but decreased to 6.1% in 2006. Also, the proportion of the number of appeals reached 4.7% in 2004, but decreased to 4.1% in 2005 and 2.2% in 2006. There may be many reasons for these trends, but one of the most important factors was the recent increase in the land compensation prices.
5 Ibid. pp. 71-73
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2. A case of saving inter-city connectivity costs - Seoul, Korea 6
The Seoul metropolitan city government reformed the public transportation system by adopting the new transit system. The Seoul metropolitan government reorganized the public transportation system by using the trunk-and-branch line system in 2004. The city divided the public transportation lines into four lines a regional route (69.5 km), a trunk line (41.0 km), a branch line (25.9 km), and a circle line (9.3 km) to provide people with more convenient accessibility and mobility throughout the city as well as to improve overall efficiency of bus operation. Considering bus route functions, the city implemented a difference in bus route lengths to promote linkage with subway stations in Seoul. After completion of the new public transportation system, the number of subway stations per bus route increased from 9.66 stations in October 2002 to 10.30 stations in June 2005. In addition, the Seoul metropolitan government adopted a bus rapid transit (BRT) system by placing bus-only routes on the center lane of the road. This bus-only lane system improved average bus travel speed and punctuality throughout the city. Also, the city reduced transfer resistance by integrating all public transportation fares and raised equity by charging fares according to the distance traveled. Before integration of all public transportation fares, people using the public transportation system had to pay a new fare each time they transferred, but after integration of all public transportation fares, people used public transportation more frequently than before because they paid their fares according to the distance traveled, not the number of transfer. Also, price index for the public transportation decreased from 620 KRW (Korean Won, 0.55 dollar) to 574 KRW (0.51 dollar) by 7.4%.
3. A case of residential redevelopment by using the geothermal energy system in Korea7
The Residential Redevelopment Districts in Singye-dong, Youngsan-gu, Seoul is regarded as a case of residential redevelopment projects which are now being
6 Seoul Metropolitan Government. 2006. A Study on Foundation of Bus Management Agency and Public Transportation System Reform 7 Internal sources from Daelim Corporation. 2010.
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constructed by taking energy efficiency into consideration. This project, which is one of the environmentally friendly development projects implemented by Daelim Corporation, is concentrating on building environmentally friendly residential supporting facilities in order to redevelop the existing downtown area of Yongsan, which was formed between the 1970s and the 1980s
1) Overview
Location of the redevelopment districts: 1-1 Singye-dong, Yongsan-gu, Seoul Site Area: 58,735 m2 Population and households: Before redevelopment, 1,859 residents (607 households) in total
Appendix Figure 1. The Site Plan of the Residential Redevelopment Project in Singye-dong, Yongsangu, Seoul (Daelim Corporation)
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- 147 households (479 residents) that owned a house, 460 households (1,380 residents) that rented a house. General conditions (Before redevelopment) - 316 lots (272 sites out of 316 lots) - Out of 267 buildings, 208 buildings (77.61%) are deteriorated. Among these 208 buildings, 164 were built 30 years ago, and 204 were built 20 years ago. Information related to urban management plan (the zoning designation, urban facilities etc.): The entire area is designated as a general residential zoning district. Within the area, 20,438.47 m2 of urban planning facilities (roads 3,087.4 m2, parks 15,000 m2, and green space 2,351.13 m2) are built.
2) Implementation process
The district was designated in order to carry out the residential development projects as a special planning district within the Yongsan planned unit development districts. Developer: Daelim Corporation 262 land owners out of 334 (78.44%) and 306 building owners out of 426 (71.83%)
Appendix Figure 2. Geothermal System Diagram
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agreed with the designation of the district. Zoning amendment and the residential construction plan - The existing general residential zoning districts were subdivided into class I (17,351.10 m2) and class III residential zoning districts. The plan suggested the residential district consists of a 20-story mixed-use building (53.9m, 249.32% FAR8), nine apartments for sale (760 units), and a 15-story leased apartment (40m, 198.65% FAR, and 190 units).
3) Geothermal energy system
Objectives - The first eco-house for commercial use within Seoul was suggested in this project, and three goals were set: First, an annex building (500 m2) whose maximum energy savings are at least 70% is built. Second, the annex building will be the first energy self-sufficient building in Seoul. Third, the building will be built by applying the most advanced construction technologies and innovative building design. Installing the system - The load for the heating and cooling system is handled by using a geothermal system9 (Capacity: 6RT10, Electricity power requirements: 46Kwh/day). In order to obtain geothermal heat, foils were inserted into 300 footing piles per apartment. Electricity for operating the geothermal system is obtained by using the 15kW photovoltaic cells and 1kW wind power systems. The energy efficiency of the system in the eco-house - The total amount of energy load in the eco-house became 5.6 l/m2, which is only 30% of the standard load (20 l/m2), and the total costs for heating and cooling the ecohouse annex buildings saved up to 6.5 million KRW (Approximately 5,803 dollars).
8 FAR: Floor Area Ratio 9 A geothermal energy system is a renewable energy system which heats a building by using 15oC geothermal energy. The geothermal energy system is built by inserting heat exchangers (heat pumps) into empty space inside the piles which are used as a building footing 10 RT = Refrigeration Tonage
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