In the city of Dongducheon, the population is decreasing and aging and the United States Army is relocating its base and soldiers gradually. Despite that the sources of economic vitality in the city fade out, industrial bases, in particular, manufactu...
In the city of Dongducheon, the population is decreasing and aging and the United States Army is relocating its base and soldiers gradually. Despite that the sources of economic vitality in the city fade out, industrial bases, in particular, manufacturing industries are lacking in the region. The current industrial ecosystem has shortcomings; most of the firms are small and they are located individually. It is expected that the new Dongducheon National Industrial Park could overcome the issues,
To provide a basis for Dongducheon National Industrial Park, this study analyzed the industrial ecosystem of Dongducheon and the neighboring cities and regions. An input-output analysis suggests that the following manufacturing sectors have advantages: textiles, leather, basic metals, fabricated metal products, electronic components, computers, optical instruments, and electrical equipment. Moreover, it is recommended that materials, components, and equipment manufacturing industries can be invited to Dongducheon National Industrial Park.
Some current national industrial policies can be also in consideration to set the future goal of Dongducheon National Industrial Park. First, reshoring firms outside South Korea can be pursued with the convergence of manufacturing and service industries and the introduction of a smart factory. Second, Dongducheon-style smart green industrial park can be provided as an objective model in a line with the Korean New Deal (Green, digital, and Balanced Regional Development policies). Deregulation in Dongducheon and North Gyeonggi-do is also a big task for the regional development in the region. There have been many regulations for the Seoul metropolitan region, military, and the United States Army bases. To overcome the issue, diverse deregulation methods in limited geographic areas should be considered gradually.
This study proposes some policy suggestions at the three different scales: Dongducheon-si, Gyeonggi-do, and the national government. First, the city should pursue the agglomeration of manufacturing industries, and a regional labor market and industrial network, then finally high-tech industries. The virtuous circle will be made not by a short-sighted policy, but by a long-term policy. The current textile industry in the region should be upgraded to the smart textile industry with the convergence of other materials. If so, it can take an important role for the medical and preventive equipment industries which prevents COVID-19 and future epidemics and pandemics. Second, Gyeonggi-do can match Dongducheon National Industrial Park with another in the south Gyeonggi and support the balanced regional development in the province. Moreover, inviting an anchor company to the region is in the province"s decision and support. The national government should support Dongducheon and the bordering region as a step for inter-Korean economic cooperation while avoiding the dichotomous view of metropolitan and non-metropolitan regions.