This thesis is a study on development strategy of Busan by comparing with metropolitan area. It studies the economic status and various indicators of Busan, including economic gap between Busan and metropolitan area. While money and labor are flocking to metropolitan area, Busan is undergoing a sustained recession. Through various statistical techniques, the fundamental difficulty was to find out what is the problem. To promote economic growth, this study finds out what are status, problems, improvement in strategic industry of Busan.
The demographic characteristics of Busan are slow natural increase of population caused by low birth rate and high transfer rate due to excess moving out. Busan has the most serious problems regarding low birth rate and aging society among big cities. However, there are almost no countermeasures related those problems and it is necessary to develop long-term plan to encourage giving birth. The characteristics which appeared in work structure are rapid decrease of manufacturing business and the highest level of youth's unemployment rate. Also, temporary worker rate can be considered highly compared to metropolitan area and other cities in the country. The labor structure faces the decline of employment and to overcome these phenomena, the labor structure needs to be enhanced.
Busan is on the decline of traditional business including textile and shoe industry. Also compared to metropolitan area, the investment of high-tech and knowledge-based industries are in poor condition. To overcome the difficulties of economic environment, Busan is driving and fostering 10 strategic industries; which are logistics industry, machine parts and materials industry, tourism and convention industry, video·IT industry, financial industry, marine·bio industry, silver industry, shoe industry, and fisheries processing industry, and textiles·fashion industry. However, the absence of basic organizations, conspiracy of the way to promote business issues, and the insufficient role of local government have shown problems. To maximize the effectiveness of local strategic industries, restructuring main agents of business around the region planning industrial policy in accord with regional characteristics, building active budget allocation management are required. In addition 'Regional innovation systems' and 'Industrial clusters' should be operated as the core of the development.
To build and manage the Regional innovation system, it needs close cooperation and interaction among local business, universities, research institutes, public institutions which constitute the local economy. It is necessary to specialize main industrial estate through industrial clusters rather than individual support. For avoiding inconvenience and difficulties of operating companies in Busan, social overhead capital, education, culture, infrastructure and tax benefits, administrative supporting services will have to be improved.
Moreover, it needs to avoid overlapping areas and resource wasting policy in advance and create synergies by building a network with surrounding cities in the southeastern region and strengthening cooperation between specialized industries.