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What is a growth engine for the regions overcoming the ageing population?-Growth categorization of rapidly growing and rapidly ageing regions by type and its implications-

Author Mungu Huh, Hayool Song Date 2017.05.15 Issue No 18
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Korea has become a nation of premature old age in the world’s highest level. Thus it raises concerns over the acceleration of low growth of the nation.

*In regard to a population structure at a regional level, the level of ageing population in provinces or non-capital regions is high but the ageing speed is slow. In the meantime, the level of ageing population in capital and metropolitan regions is low but the ageing speed is fast.

 

Despite the fact that the ageing population has been intensified, rapidly growing and rapidly ageing regions with high regional growth are merely 35 among 205 cities and provinces.

*Rapidly growing and rapidly ageing regions are categorized into three types depending on industrial, demographic, and spatial characteristics as follows: An existence type of the agriculture, forest and fishery based on the manufacturing; a win-win type between the service industry and manufacturing industry; and a type specialization in the agriculture, forest and fishery, etc.

*Growth of those regions plays a guiding role to promote growth in ageing and low growth regions.

 

It is necessary for the local government to overcome the crisis that the regional area could face a fall, by clearly proposing a developmental vision and policy goals and by establishing performance plans through a middle to long term regional developmental plan for 10 to 20 years in the future.

 

For the rapid growth of ageing regions, it is necessary to create high added value by pushing for policy of manufacturing growth promotion focused on the structural development of traditional manufacturing and by strengthening R&D capacity through a wide linkage among value chains of existing industries.

 

In regard to non-capital ageing regions, it is efficient to push for policy to enhance values in the agriculture sector, for example, offsetting with growth in the manufacturing without the employment through the expansion of population returning to farming, and enhancing added value within the area through a convergence with agriculture.