In many OECD countries, cities struggle to cope with increasing global trade competition and industrial restructuring. This OECD Territorial Review examines the case of Busan, the second largest city in Korea and one of the regional poles in Northeast Asia. Its main comparative advantage, the port industry, is under challenge and needs to secure its international competitiveness in the long term, while its economy strives to move into a pattern of knowledge-based industries. This review analyses the region's potential to upgrade human capital, stimulate entrepreneurship and attract FDI.
Busan has the unique opportunity to benefit from two closely intertwined national policies: balances regional development and decentralisation.
This review highlights two priorities for the region's growth strategy:
(i) to raise regional competitiveness by enhancing specialised clusters and investing in regional innovation;
(ii) to achieve active decentralisation through governance reforms aimed at promoting local capacity-building and regional co-operation.
The OECD Territorial Review of Busan, Korea is integrated into a series of thematic reviews undertaken by the OECD Territorial Development Policy Committee. The overall aim of these reviews is to provide practical policy advice to governments focusing on regional competitiveness and multi-level governance.