Signal Relocated agencies raised local hiring and contributed to regional growth

Summary

The first wave did produce visible gains alongside its limits. The share of local talent hired by relocated agencies rose from 23.4 percent in 2018 to much higher levels by 2025, led by Gangwon at 47.1 percent, Chungbuk at 45.5 percent and Jeonbuk at 43.0 percent. Some employment growth in manufacturing and local services was also identified, and relocation had a positive effect on the gross regional product of host areas. Between 2012 and 2016 it also helped to some extent in narrowing economic gaps between regions. After relocation took off in 2014, moves for housing and family reasons into innovation cities surged. The report therefore acknowledges that the policy laid a foundation for regional growth, including settled agencies, regional economic hubs and expanded local hiring, even though capital-region dispersion was short-lived.