CRI

 [ABSTRACT]

Balanced national development has been a long-standing policy objective in South Korea; however, increasing attention to inter-regional disparities has 

obscured growing inequalities within provinces. Chungcheongbuk-do (Chungbuk) exemplifies this pattern, as economic activity and industrial capacity are 

increasingly concentrated in a few urbanized areas, while peripheral rural regions face sustained decline. The southern region of Chungbuk—comprising 

Boeun, Okcheon, and Yeongdong counties—represents a structurally disadvantaged sub-region characterized by demographic contraction, weak 

industrial foundations, and stringent regulatory constraints. This study examines the industrial competitiveness of the southern Chungbuk region and 

proposes strategic and policy directions grounded in its regional realities.

Despite accounting for approximately 26.6 percent of Chungbuk’s land area, the southern region contributes less than six percent of the province’s 

population and gross regional domestic product (GRDP). Over the past decade, persistent population decline and rapid aging have significantly weakened 

the region’s economic base. All three counties have entered a super-aged phase, with elderly populations exceeding 30 percent. The contraction of the 

working-age population has reduced labor supply, entrepreneurial activity, and the capacity for industrial renewal, thereby intensifying the risk of regional 

stagnation.

Industrially, the southern region remains dominated by service activities and primary industries, particularly agriculture and forestry, while manufacturing 

plays a relatively minor role. Manufacturing establishments are largely small-scale and technologically limited, with insufficient inter-firm linkages to 

generate agglomeration economies. These structural weaknesses are compounded by institutional constraints. Extensive environmental and 

land-use regulations, particularly those associated with the protection of the Daecheong Lake water source, severely restrict industrial land development 

and discourage large-scale investment. As a result, industrial activity is fragmented and spatially dispersed.

Industrial competitiveness diagnostics reveal that the region exhibits generally low levels of specialization and agglomeration. Regional growth-stage 

analysis identifies Boeun County as a potential growth area due to relatively strong income growth despite population decline, whereas Okcheon and 

Yeongdong counties are classified as declining regions with simultaneous reductions in both population and income. Industrial topology analysis further 

indicates that agriculture and forestry are the only sectors demonstrating both high specialization and concentration. Most manufacturing sectors fall below 

threshold levels, while sectors such as electricity and gas supply, construction, and health and social welfare services display partial specialization but lack 

sufficient clustering to function as sustainable growth engines.

Based on these findings, the study proposes a place-based industrial strategy emphasizing selective concentration and regional suitability.

Key strategic directions include upgrading agro-food industries toward higher value-added production, enhancing the productivity of existing small and 

medium-sized manufacturers through smart and incremental technological upgrading, and fostering energy- and environment-related industries compatible with local regulatory conditions. In addition, the expansion of health, welfare, and lifestyle service industries is recommended as a pragmatic 

response to rapid population aging and shifting regional demand.

From a policy perspective, the study highlights the need for rational and flexible application of environmental regulations, the promotion of small-scale and 

decentralized industrial complexes, and customized support for regionally specialized industries. 

Addressing demographic decline through job creation, workforce attraction, and coordinated inter-regional industrial and fiscal policies is also essential. 

Overall, the study underscores that structurally disadvantaged rural regions require differentiated, place-based industrial strategies aligned with 

demographic, institutional, and spatial constraints to achieve sustainable regional development.