The metropolitan area, including Seoul, Gyeonggi, and Incheon, accounted for nearly half of Korea's economy. The concentration in the metropolitan area has intensified compared to five years ago. Nearly half of the employed individuals were also concentrated in the metropolitan area.
According to the '2020 regional input-output table' released by the Bank of Korea on Feb. 2, the metropolitan area accounted for 49.9% of the total output. This is an increase of 3.1 percentage points from the previous survey year in 2015 (46.8%). The output refers to the value of goods and services produced in that year, meaning the sales of corporations or factory shipments.
The regional input-output table is an input-output table created by dividing the country into 17 metropolitan cities and provinces, reflecting the interregional trade and the characteristics of the regional industrial structure. It is useful for analyzing interdependencies between regions and industries.
In terms of output, following the metropolitan area, the southeast region accounted for 15.4% and the Chungcheong region 13.7%. While the proportion of the metropolitan area and the Chungcheong region has increased, the proportions of the southeast, Daegu-Gyeongbuk, and Honam regions have decreased. By region, Gyeonggi had the highest proportion at 25.8%, followed by Seoul (19.3%) and South Chungcheong (7.1%).
Looking at the supply structure of goods and services, the national average accounted for 65.7% in local production, 24.7% in imports from other areas, and 9.6% in imports. The metropolitan area had the highest local production at 68.4%, and the proportion of imports from other areas was also the largest within the economic zone at 11.4%. Ulsan had the highest import proportion at 16.6%.
In terms of demand structure, the region with the highest local demand proportion was Gangwon at 75.9%. Seoul had the highest outflow proportion to other regions at 29.9%. Ulsan ranked first in export proportion at 21.6%.
The industrial structure showed that the service sector's proportion increased compared to 2015 in all regions. The service proportion was highest in Seoul at 87.5%, followed by Jeju (71.8%) and Daejeon (65.7%). The proportion of manufactured goods was highest in Ulsan at 79.4%, while the construction proportion was highest in Sejong (13%), and the agricultural, forestry, and fisheries product proportion was highest in Jeju (9.0%).
The value-added rate increased in all regions except for Ulsan, where the industry, including petroleum products, was sluggish due to the COVID-19 pandemic. Notably, Jeju (54.1%), Gangwon (52.9%), and Seoul (52.9%), which have high proportions of service industries like tourism, exceeded the average (44.7%). The domestic production rate of intermediate goods was also high in Jeju (91.7%) and Gangwon (88.8%), while Ulsan (65.5%) and South Jeolla (70.5%) fell below the national average (80.6%).
In terms of final demand, consumption was highest in Jeju at 76.3%, followed by Gangwon (71.7%) and Busan (65.5%). The export proportion was highest in Ulsan at 63.7%, followed by South Chungcheong (37.8%) and North Gyeongsang (35.1%). Investment proportion was highest in Sejong at 43.4%.
In 2020, the interregional trade amount was 1719.8 trillion won, an increase of 26.5% compared to 2015. The metropolitan area also accounted for the largest proportions in both outflow (48%) and inflow (43.8%). Compared to five years ago, the inflow and outflow proportions for the Chungcheong region increased (outflow +1.9 percentage points, inflow +1.1 percentage points), while the southeast region decreased (outflow -2.3 percentage points, inflow -0.8 percentage points).
The production inducement coefficient in the metropolitan area (1037) was the highest. By region, Gyeonggi had the highest at 1090, followed by Ulsan (1073) and Seoul (1012). The value-added inducement coefficient was also highest in the metropolitan area (0.513).
In terms of employment conversion standards, the metropolitan area accounted for 49.7% of the total, the largest share. However, this is a decrease compared to 2015, when it exceeded half. By industry, all regions showed a service-oriented employment structure, with the proportion of service industry workers in Seoul (90.8%) significantly exceeding the average (71.1%).
The employment inducement coefficient was recorded at an average of 9.7 people nationwide. The local inducement coefficient was 5.6 people, while the inducement coefficient from other areas was 4.1 people. The employment inducement coefficient indicates the number of employment conversions induced in each region and other regions for a final demand of 1 billion won of domestic goods.