Domestic Economy: Capital Region Accounts for 46.8%... Half of Employment Also in Capital Region

Bank of Korea '2015 Regional Input-Output Table'

[Asia Economy Reporter Eunbyeol Kim] The proportion of the Seoul metropolitan area, including Seoul, Incheon, and Gyeonggi, in the South Korean economy has expanded compared to 2010. The share of employed persons (based on full-time equivalent) in the metropolitan area also exceeded half.

According to the Bank of Korea's "2015 Regional Input-Output Table Compilation Results" released on the 23rd, the metropolitan area accounted for 46.8% of the total output, up 2.7 percentage points from 44.1% in 2010. The final demand in the metropolitan area also increased to 47.4% from 46.6% five years earlier.

In terms of output, Gyeonggi (22.8%), Seoul (19.0%), and Gyeongbuk (7.0%) showed an increase in the metropolitan area's share. For final demand, Gyeonggi (24.1%), Seoul (18.6%), and Gyeongnam (6.9%) led the increase in the metropolitan area's share. The Chungcheong region (12.2%) also saw a 0.7 percentage point rise.

51.4% of consumption occurred in the metropolitan area, while 25.0% of exports originated from the Dongnam region.

Based on full-time equivalent employment, the metropolitan area accounted for 50.8% of total employment, the Dongnam region 15.1%, followed by the Chungcheong and Daegyeong regions at 10.6% and 9.8%, respectively. By region, Seoul (23.9%), Gyeonggi (22.3%), Gyeongnam (6.6%), and Busan (6.0%) ranked highest.

Looking at the structure of the regional economy's supply, (average across all regions) local production accounted for 65.9%, interregional inflow 23.4%, and imports 10.7%. Seoul had the highest local production share at 70.8%, while Sejong had the highest interregional inflow at 34.5%.

Regarding regional economic demand (local demand, interregional outflow, exports), Gangwon had the highest local demand share at 75.8%, and Seoul had the highest interregional outflow share at 28.3% nationwide.

The value-added ratio was relatively high in Jeju (52.6%), Gangwon (51.7%), and Seoul (51.0%), where the service sector, including tourism, has a large share, compared to the national average of 42.7%. The domestic material rate of intermediate goods was also high in Jeju (89.2%) and Gangwon (88.7%).

In 2015, the interregional trade volume was 1,359.1 trillion KRW. The trade ratio relative to total output for domestic use was about 43.6%.

The production inducement coefficients by region based on final demand from consumption, investment, and exports were Gyeongnam (1.931), Sejong (1.931), and Gwangju (1.897) in order. Regions with a high degree of inducing production in other regions included Sejong (1.166) and Daejeon (1.040).

The employment inducement coefficient showed an average of 6.6 persons induced within the region and 4.8 persons induced in other regions. Sejong (7.9), Daejeon (7.0), and Incheon (5.8) had relatively high employment inducement effects in other regions. The employment inducement coefficient refers to the number of full-time equivalent employed persons induced in the respective and other regions by 1 billion KRW of final demand for domestically produced goods in each region.

This content was produced with the assistance of AI translation services.