In an Era of Population Decline, Regional Industry’s Competitiveness Is Found in the Environment and Quality of Life

As the era of population decline arrives, low birth rates and aging have emerged as top priorities. Accordingly, the standards for evaluating regional industries are also changing. If past standards centered on the scale of job creation and production expansion, the current demand is expanding to consider residents’ quality of life, environmental responsibility, and the sustainability of the local economy at the same time.

Amid this trend, the Population Strategy Committee said it would pursue a 'National Population Strategy' that comprehensively addresses technological innovation, regional extinction, and immigration issues. The committee also presented the 'First Basic Plan for the National Population Strategy' on the 14th.

The 'First Basic Plan for the National Population Strategy' includes policies centered on boosting the birth rate and expanding welfare for older adults. The plan emphasizes improving quality of life and sustainability, and also lays out a policy direction for restructuring social and economic systems accordingly.

This shift in perspective is calling for changes in the standards used to assess regional industries. Regional industries are expected to provide stable jobs and support economic activity, while residents’ perceived living conditions and environmental responsibility must also be taken into account. The need to consider living conditions and environmental responsibility together is linked to improving regional sustainability.

OECD released the 2025 report, 'Place-Based Policies for the Future.' OECD pointed out that economic, social, and environmental conditions differ from one region to another. It also said that uniform policies alone are insufficient to adequately support long-term regional development and residents’ quality of life.

Under this recognition of the problem, many countries are pursuing policies that link industrial competitiveness, environmental improvement, and community development. This was presented as an example of policy implementation that takes into account the different conditions in each region.

Canada’s rural economic development strategy focused on the close relationship between rural economic roles and living conditions. The strategy provides high-speed internet connections, supports the introduction of smart farms and new technologies, and offers vocational training benefits.

Japan’s Ministry of Land, Infrastructure, Transport and Tourism is promoting a response to population decline and aging. The ministry has proposed a direction of concentrating living functions such as medical care, welfare, and commerce in hub areas, as well as linking those hubs with public transportation. The policy is called 'Compact plus Network.'

To maintain regional vitality, not only the industrial base but also the living services, transportation, and housing conditions that residents can actually use must be in place so that conditions for settling in the region are established. In Korea, there are also examples of facilities that place residents’ quality of life at the center and serve as key hubs in the local community.

One such example is Youngpoong’s Seokpo Smelter, located in Seokpo-myeon, Bonghwa County, North Gyeongsang Province. Youngpoong Seokpo Smelter is making an economic contribution to the region through job creation and other means.

As of last August, the population of Seokpo-myeon stood at 1,782, while the Seokpo Smelter had 757 employees, including temporary workers. That accounts for 42% of the entire township, meaning that nearly half of Seokpo-myeon’s population is affiliated with the Seokpo Smelter. It is no exaggeration to say that the Seokpo Smelter effectively supports the local economy.

The smelter’s role is not limited to economic contributions. Youngpoong Seokpo Smelter is making a variety of investments and support efforts so that residents can live with peace of mind.

Seokpo Smelter and Youngpoong said they are highlighting the stabilization of residents’ lives and improved water quality through environmental management investments and resource recycling. Seokpo Smelter said it built the world’s first 'zero liquid discharge system (ZLD)' for residents’ peace of mind and that the investment in the ZLD system amounts to more than KRW 540 billion.

The ZLD system processes an average of 2,000 to 2,500㎥ of process water per day, and all treated water is reused, the company said. It also uses residual thermal energy generated during the smelting process to provide hot water to local residents, and it cited the recent discovery of an otter in the upper reaches of the Nakdong River near the smelter as evidence of improved water quality.

Youngpoong said the scope of its mutual growth with the local community includes support for residents’ education and cultural activities in addition to environmental management. Accordingly, Youngpoong is sponsoring the 'Cine Forest Seokpo Short Film Class' to support cultural and artistic activities for local students, and it explained that 'Cine Forest' is a program in which middle school students produce short films themselves.

The short film 'A Smile Barefaced,' produced in the first class of this program, won an excellence award at the International Youth Peace and Humanism Video Contest. It then won another excellence award at the Australian Smartphone International Film Festival.

Youngpoong’s educational and cultural support has meaning in that it provides local youth with creative experiences and opportunities for cultural activities. A recent achievement is that 'That Night, at That House,' produced by Cine Forest’s second cohort, won the New Director Award in the international short film category at the 2nd Tochigi International Film Festival.

Along with these examples, as the era of population decline has begun, policies and efforts at home and abroad to enhance the sustainability of regional industries are continuing.

In this context, a trend is emerging that regional industrial competitiveness should be evaluated not only by economic performance but also by environmental responsibility and sustainable relationships with the local community.

Accordingly, attention is focusing on what changes the Population Strategy Committee’s National Population Strategy will bring to the paradigm of coexistence in regional industries.

Source: TECHWORLD · Lee Gwang-jae
Original: https://www.epnc.co.kr/news/articleView.html?idxno=408515

References

• https://www.epnc.co.kr/news/articleView.html?idxno=408515