Two Nations: Regional Tensions Rise Between Seoul and the 'Other Korea'

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Two Nations: Regional Tensions Rise Between Seoul and the 'Other Korea'

First in a series on conditions outside the Seoul area.

The pattern of regional conflict in South Korea is changing. Areas outside the Seoul metropolitan area suffered most from the Asian financial crisis of 1997. One consequence is that the conflict between Kyongsang and Cholla provinces that has dominated post-war South Korea appears to be fading, as a new conflict emerges between Seoul and the areas beyond it. An increasing number of people point out that the nation's economic development will not be sustainable if it only benefits the Seoul metropolitan area.

"The hottest issue during the presidential election next year will be economic and social conditions outside Seoul," said Yoon Deok-hong, president of Taegu University in the southeastern city of Taegu. He said college professors outside Seoul have joined forces with advocacy groups in promoting the difficult situations outside Seoul as a viable political issue.

"The central government had better pay attention to this issue soon, because dissatisfaction outside Seoul is so great that this grassroots movement may get out of hand," he added.

The two economic pillars of these regional economies, construction and retail industries, were wrecked by the Asian financial crisis. Compounding this problem was the government's economic restructuring program, which forced many financial institutions outside Seoul out of the market.

Consequently, the Seoul metropolitan area, which makes up only 12 percent of the South Korean landmass, has in it 88 percent of the headquarters of large companies, 84 percent of government institutions and 61 percent of universities and research institutions. Sixty-five percent of bank transactions in South Korea take place in the metropolis. Yet, as if to encourage economic concentration, the central government has recently been relaxing the regulations imposed on development in the Seoul metropolitan area.

The economic disparity is also apparent in the finances of local governments. Of the 248 local governments across the country, 21 had no debts last year: Sixteen of them were ward offices in Seoul. In contrast, the city governments of Pusan, Taegu and Kwangju, as well as the governments of North Kyongsang province, Seocheon County in South Chungchong province and Gunwi County in North Kyongsang province, spent more than 15 percent of their budget on bond repayments.


by A Special Reporting Team

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