This paper examined regional development disparities in Korea in the1990s. The disparities between the capital and non-capital regions andbetween the Yeongnam industrial districts and the rest of the countrydid not lessen even after the economic crisis in the late 1990s. WithSeouls traditional functions extended to the capital region, concentra-tion there was able to proceed uninterrupted. Inside the Yeongnamregion, the traditional large cities have shown signs of decline, whereaseconomic activities are flourishing in the industrial districts that func-tioned as a center of manufacturing products in the 1980s. Regionaleconomic activities in the 1990s were determined by such regional eco-nomic circumstances as conditions for business management and theclustering of economic actors within industrial complexes. The processof upgrading existing industries took place in the Yeongnam industrialdistricts, where corporate relationships between parents and subcon-tractors have taken root. The growth of new high-tech industries beganin the capital region, where financial resources are easily available andresearch institutions are concentrated. Differences in regional economicdevelopment produce disparities within the labor market and betweenhousehold incomes as well.
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