[Feature Story] Overcoming Seoul-Centrism: Toward Balanced Development in South Korea

   The term “Seoul Republic” reflects a long-standing concern in South Korea: the overwhelming concentration of population and resources in the Seoul Capital Area, which includes Seoul, Gyeonggi-do, and Incheon. According to the Ministry of the Interior and Safety, as of the end of 2023, this region houses approximately 26.01 million people, over 50% of the national population, within just 12% of the country’s landmass.

   ^{Although the population of Seoul has slightly declined in recent years, Gyeonggi-do and Incheon continue to grow. This imbalance is more than demographic; it represents deep structural centralization across employment, education, infrastructure, healthcare, culture, and government administration. The result is a growing disparity between the capital region and the rest of the country, with young people flocking to Seoul for opportunities and rural areas struggling with depopulation and aging.}

   ^{One of the main reasons for this population shift is the greater access to quality education and stable employment in the capital area. Seoul and its surroundings host the majority of corporate headquarters and job opportunities, attracting young job seekers and recent graduates. The capital is also home to the nation’s top universities, elite high schools, and dense networks of private academies, offering clear educational advantages. This concentration of human capital feeds directly into labor and innovation markets, reinforcing the capital’s primacy. Healthcare and cultural infrastructure add further pull. With large hospitals, specialized medical centers, museums, theaters, and other amenities densely packed into the capital, residents from other regions often travel or relocate entirely for better services.}  

   ^{The consequences are far-reaching. Over 100 rural administrative units are now classified as “population extinction zones” due to aging and youth outmigration, according to the Korea Institute for Health and Social Affairs. Declining local economies, collapsing public services, and social isolation threaten these communities’ survival. Meanwhile, the capital struggles with its own crises, soaring real estate prices, widened socioeconomic inequality, chronic traffic congestion, and urban safety issues stemming from overdevelopment.}

   In response, the South Korean government has implemented several decentralization efforts. The development of Sejong City as an administrative hub is one of the most ambitious. By relocating government ministries and agencies to Sejong, the goal has been to redistribute population and economic activity. The city has seen moderate success, by attracting young civil servants and expanding its urban infrastructure. More recently, the relocation of the administrative capital has returned to the political agenda. President Lee Jae-myung, elected in 2025, campaigned on accelerating decentralization to foster a more balanced national urban structure. But administrative relocation alone is not enough.

   South Korea can draw lessons from Japan’s multifaceted approach to regional revitalization. Confronting similar demographic challenges, Japan introduced the “Hometown Tax” in 2008, a system that encourages urban residents to donate to rural municipalities in exchange for tax deductions and local specialty products. This initiative not only channels financial support to struggling regions but also strengthens local economies through increased visibility and citizen engagement. 

   Furthermore, Japan adopts a strategy of aligning industries with the specific strengths of each region, guided by the principle of placing “the right people in the right places.” By fostering synergy between local talent and economic potential, this approach promotes more sustainable regional development. Recognizing that a significant return of population to rural areas is unlikely in the near future, Japan also focuses on enhancing the resilience of existing communities. This includes enhancing local autonomy, streamlining public services, and utilizing digital infrastructure to improve administrative efficiency. Rather than relying solely on growth, this model emphasizes long-term sustainability, ensuring that even depopulated areas remain functional, livable, and culturally vibrant.

   South Korea now stands at a critical juncture. Addressing overconcentration in the capital region requires more than temporary fixes, it demands long-term structural reforms. The country must invest in building regional innovation hubs, support locally specialized industries, and cultivate human capital rooted in regional identities. Sustainable national development depends on breaking the capital-centric mold. The survival and future competitiveness of South Korea rest on its ability to foster balanced growth across all regions.