Korea regions and cities 2018

Regions and Cities at a Glance 2018 – KOREA

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Economic trends in regions
Regional gap in GDP per capita, 2000-16
GDP per capita in USD PPP
45 000

Highest region
Chungcheong
41 775 USD

40 000
35 000
30 000

Korea
36 300 USD

25 000

Lowest region
Jeju
29 959 USD

20 000
15 000
10 000
2000

2005

2010

Index of regional disparity in GDP per capita, 2016
Top 20 % richest over bottom 20% poorest regions
Ratio 4
Small regions
(TL3)

2016

2000
Large regions
(TL2)

3

2

1

2016

Country (number of regions considered)

Differences between Korean regions in terms of GDP per capita have increased slightly over the last sixteen years, and remain
moderate, with Chungcheong having 30% higher GDP per capita than Jeju. Regional economic disparities in Korea remain among
the lowest of OECD countries.
With a productivity growth of 2.9% per year over the period 2008-16, Chungcheong has experienced the highest growth in the
country and it became also the region with the highest levels of productivity. Gyeongnam had a higher GDP per worker in 2008

compared to Chungcheong, but it experienced the lowest growth of productivity among Korean regions (0.8% per year).
While the youth unemployment rate has declined since 2012 in the OECD as a whole, youth unemployment in all Korean regions
remained high and above the OECD average of 15.1% in 2016, with the exception of Jeju, where 9.6% of youths were unemployed
in 2016.
Productivity trends, most and least dynamic regions, 2008-16
GDP per worker in USD PPP

Chungcheong: highest
productivity in 2016 and
highest productivity
growth (+2.9% average
annual growth over
2008-16)

85 000
80 000
75 000

70 000

Gyeongnam: lowest
productivity growth
(0.8% annually)

65 000

Korea

60 000
55 000

2008

2010

2016

Youth unemployment rate, 15-24 years old, 2007-16
rate (%)
30

Highest rate
Gyeonbuk Region
25.5%

25
20

15

Korea
23.4%

OECD

10

Lowest rate
Jeju
9.6%

5
0
2007

2012

2016

Source: OECD Regional Database.
Notes: (1) Figure on regional gap in GDP per capita: OECD regions refer to the administrative tier of subnational government (large regions, Territorial Level 2);
Korea is composed of seven large regions. (2) Figure on index of regional disparity: top (bottom) 20% regions are defined as those with the highest (lowest) GDP
per capita until the equivalent of 20% of national population is reached, this indicator provides a harmonised measure to rank OECD countries, using data for small
regions (Territorial Level 3) when available. (3) Productivity is measured as GDP per employee at place of work in constant prices, constant Purchasing Power
Parities (reference year 2010).

Updated the 5th of March 2019


Differences in well-being across regions
Bottom region

Seoul Region

Regions

Jeju

Seoul Region

Gangwon

Jeju
Seoul Region
Jeolla
Gyeongbuk

Seoul Region
Gangwon
Jeju

Gyeongnam

Gangwon

Gangwon

Chungcheong

Gyeongbuk

Jeju

bottom 20%

Ranking of OECD regions (1 to 402)
top 20%
middle 60%

Top region

Seoul Region

Jeju

Seoul Region
Gyeongbuk

Seoul
Region

Jobs

Education

Safety

Health

Civic
Engagement

Income

Gyeongbuk

Environment

Life
Satisfaction

Housing

Community

Access to
services

Relative ranking of the regions with the best and worst outcomes in the 11 well-being dimensions, with respect to all 402 OECD regions. The eleven dimensions
are ordered by decreasing regional disparities in the country. Each well-being dimension is measured by the indicators in the table below.

The well-being domain with the largest disparities between Korean regions is related to jobs outcomes (employment and
unemployment rate), with Seoul Capital Region ranking close to the median of OECD regions and Jeju in the bottom 15%. All
Korean regions rank in the top 20% of the OECD regions in access to broadband, but in the bottom 20% in perceived social support
network (community).
The top performing Korean regions fare better than the OECD average in 8 out of 13 well-being indicators. Exceptions are income
per capita, number of rooms per person, air pollution, perceived social support network, and life satisfaction.

Jobs
Employment rate 15 to 64 years old (%), 2017
Unemployment rate 15 to 64 years old (%), 2017
Education
Labour force w ith at least upper secondary education (%), 2017
Safety
Homicide Rate (per 100 000 people), 2016
Health
Life Expectancy at birth (years), 2016
Age adjusted mortality rate (per 1 000 people), 2016
Civic engagem ent
Voters in last national election (%), 2017 or lastest year
Incom e

Disposable income per capita (in USD PPP), 2016
Environm ent
Level of air pollution in PM 2.5 (µg/m³), 2015
Life Satisfaction
Life satisfaction (scale from 0 to 10), 2013
Housing
Rooms per person, 2016
Com m unity
Perceived social netw ork support (%), 2013
Access to services
Households w ith broadband access (%), 2017

Korean regions

Country
Average

OECD median
region

Top 20%

Bottom 20%

64.2
3.8

67.7
5.5

65.6
3.0

61.4
4.2

84.3

81.7

88.6

76.6

1.5

1.3

1.2

1.8

81.4
6.5

80.4
8.1

82.4
6.1

80.8
7.1

76.9

70.9

78.6

75.1

16 909

17 695

18 352

15 824

31.1

12.4

25.7

33.0

5.9

6.8

6.1

5.7

1.3

1.8

1.5

1.3

78.3

91.4

79.4

74.1

99.2

78.0

99.7

98.4

Source: OECD Regional Database. Visualisation: . Notes: (1) OECD regions refer to the first administrative tier of
subnational government (large regions, Territorial Level 2); Korea is composed of seven large regions. (2) Household income per capita data are based on USD
constant PPP, constant prices (year 2010).

Updated the 5th of March 2019


Metropolitan areas in the national economy
OECD population is concentrated in cities*
Percentage of population in cities, 2016
United
States
Korea

OECD average

people
outside cities

people
outside cities

17%

people in cities with
population between
50 000 and 250 000

1%
6%

people in cities with
population between
250 000 and 500 000

30%

51.2 million
people - 83%
live in cities

people in cities
with population
above 500 000

76%

people in cities with
population between
50 000 and 250 000

1.2 billion
people - 70%
live in cities

people in cities
with population
above 500 000

55%

6%
9%

people in cities with population
between 250 000 and 500 000

Source: OECD Metropolitan Database. Number of urban agglomerations: 22 in Korea and 1 138 in the OECD.

In Korea, 83% of the population lives in cities of more than 50 000 inhabitants. The share of population in cities with more than
500 000 people is 76% compared to 55% in the OECD area.
Contribution of metropolitan areas to GDP growth

Cities above 500 000 people, 2016

Cities above 500 000 people, 2000-16

OECD average
80%

75%
63%

58%

% of national
GDP

% of national
employment

Korea

%

76%
55%

% of national
population

90
80
70
60
50
40
30
20
10
0

74%

OECD average
68%

327 metropolitan
areas

Korea

Seoul

%
90
80
70
60
50
40
30
20
10
0

Importance of metropolitan areas

1

All metropolitan areas

2

Largest contributor

Metropolitan areas in Korea account for 75% of national GDP. Between 2000 and 2016 they generated 74% of the national GDP
growth, to which Seoul contributed two-thirds.
Two Korean metropolitan areas, Ulsan and Sebuk, are in the top 20% in terms of GDP per capita among the 327 OECD
metropolitan areas, although the country has high disparities, with Gwangsan, Seo and Dalseong being in the bottom 20%.

In terms of PM 2.5 levels, all Korean metropolitan areas are among the 12% most polluted OECD metropolitan areas. Deokjin
is the 5th most polluted metropolitan area across the OECD.
OECD Metropolitan areas ranking
Cities above 500 000 people

GDP per
capita, 2016

USD PPP
100 000
80 000
60 000
40 000
20 000
0

Top 20% richest
metropolitan areas

Bottom 20% poorest
metropolitan areas

Lev el of air pollution in PM 2.5 (µg/m³)

30

Air pollution
(PM2.5), 2017

20

10
0

Top 20% least polluted
metropolitan areas

Bottom 20% most polluted
metropolitan areas

Source: OECD Metropolitan Database. Number of metropolitan areas with a population of over 500 000: 11 in Korea compared to 327 in the OECD.
* Note: Cities are defined here as functional urban areas, which are composed by high-density urban centres of at least 50 000 people and their areas of influence (commuting
zone). For more information, see: />
Updated the 5th of March 2019


Subnational government finance
Subnational government expenditure by function
As a share of total subnational government expenditure, 2016

Korea

00

OECD average

Education

28%

11

25%

Education

Economic affairs

18%

22

14%

Economic affairs

Other

17%

33

15%

Other

General public services

17%

44

14%

General public services

Social protection

16%

55

14%

Social protection

Health 0.3%

66

18%

Health

USD 5 089

Subnational expenditure per capita:

77

USD 6 817

Subnational government expenditure amounts to USD 5 089 per capita in Korea compared to an OECD average of USD 6 817.
In Korea, this is equivalent to 43.1% of total public expenditure and to 13.9% of GDP. In comparison, across the OECD,
subnational government expenditure accounts for 40.4% of total public expenditure and for 16.2% of GDP. Education and
economic affairs are the two largest spending items for subnational governments in Korea: together they represent 46% of
subnational expenditure compared to 39% in the OECD area.
In Korea, 57.7% of total public investment was carried out by subnational governments compared to an OECD average of
56.9%.

Role of subnational governments in public investment
Subnational government public investment per capita, 2016
USD per capita

Korea

2 000

OECD average

1 800
1 600
1 400
1 200

Total public investment
USD 1836 per capita
5% of GDP

1 000

800
600
400
200
0

Subnational government
investment
USD 1 059 per capita
57.7% of public invest.

Total public investment
USD 1 278 per capita
3.0% of GDP

Subnational government
investment
USD 727 per capita
56.9% of public invest.

Source: OECD Subnational Government Structure and Finance Database.
Note: the function ‘other’ includes housing and community amenities, recreation, culture and religion; environment; public order and safety.

OECD Regions and Cities at a Glance 2018
The 2018 edition of OECD Regions and Cities at a Glance shows how regions and cities contribute to national
growth and the well-being of societies. It updates its regular set of region-by-region indicators, examining a
wide range of policies and trends and identifying those regions that are outperforming or lagging behind in
their country.
Consult this publication on line: />

Updated the 5th of March 2019