Inclusive Growth in Seoul Policy Highlights About the OECD About the OECD The Organisation for Economic Co-operation and Development (OECD) is a forum in which The Organisation for Economic Co-operation and Development (OECD) is a forum in which governments compare and exchange policy experiences, identify good practices in light of emerging governments compare and exchange policy experiences, identify good practices in light of emerging challenges, and promote decisions and recommendations to produce better policies for better lives. challenges, and promote decisions and recommendations to produce better policies for better lives. The OECD’s mission is to promote policies that improve economic and social well-being of people The OECD’s mission is to promote policies that improve economic and social well-being of people around the world. around the world. The OECD Champion Mayors initiative The OECD Champion Mayors initiative The OECD launched a global coalition of Champion Mayors for Inclusive Growth in March 2016, as part The OECD launched a global coalition of Champion Mayors for Inclusive Growth in March 2016, as part of the broader OECD Inclusive Growth initiative. The OECD approach to Inclusive Growth is multi- of the broader OECD Inclusive Growth initiative. The OECD approach to Inclusive Growth is multi- dimensional, going beyond income. Champion Mayors are a group of willing leaders who have dimensional, going beyond income. Champion Mayors are a group of willing leaders who have committed to tackling inequalities and promoting more inclusive economic growth in cities. For more committed to tackling inequalities and promoting more inclusive economic growth in cities. For more information, please contact Marissa Plouin ([email protected]) or visit http://oe-cd/champion- information, please contact Marissa Plouin ([email protected]) or visit http://oe-cd/champion- mayors mayors. This study This study This document summarises the preliminary findings of the forthcoming OECD (2018), OECD Case Study This document summarises the findings of the study: OECD (2018), Inclusive Growth in Seoul, OECD of Inclusive Growth in Seoul, OECD Publishing, Paris. Publishing, Paris. The OECD Case Study of Inclusive Growth in Seoul, the first study to assess the performance of a city Inclusive Growth in Seoul is the first OECD study to assess the performance of a city along a range of along a range of inclusive growth dimensions, is produced as part of the OECD Champion Mayors for inclusive growth dimensions, and is produced as part of the OECD Champion Mayors for Inclusive Inclusive Growth initiative. This report was made possible with the support of the Seoul Metropolitan Growth initiative. The report was made possible with the support of the Seoul Metropolitan Government. Government. This work is published on the responsibility of the Secretary-General of the OECD. The opinions This work is published on the responsibility of the Secretary-General of the OECD. The opinions expressed and arguments employed herein do not necessarily reflect the official views of the expressed and arguments employed herein do not necessarily reflect the official views of the Organisation or of the governments of its member countries. This document and any map included Organisation or of the governments of its member countries. This document and any map included herein are without prejudice to the status of or sovereignty over any territory, to the delimitation of herein are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area. international frontiers and boundaries and to the name of any territory, city or area. Photo credits Photo credits Cover: © Page 6: © 2F750559149 Cover: © GettyImages Page 13: © mihaiulia/Shutterstock.com Page 6: © Didier Marti / EyeEm Page 14: © mihaiulia/Shutterstock.com Page 13: © Seoul Metropolitan Government Page 16: © mihaiulia/Shutterstock.com Page 14: © Didier Marti Page 19: © mihaiulia/Shutterstock.com Page 16: © Robert Koehler Page 23: © mihaiulia/Shutterstock.com Page 19: © Seoul Metropolitan Government Page 30: © mihaiulia/Shutterstock.com Page 22: © Seoul Metropolitan Government Page 23: © GettyImages Page 30: © Robert Koehler Table of contents Introduction | Inequalities are a pressing policy challenge in Seoul ………………….. 5 Part 1 | Seoul is an economic powerhouse, yet some groups are left behind ……… 7 Seoul is the country’s economic engine, yet demographic challenges pose risks…………… 7 Outcomes across four dimensions of Inclusive Growth in Seoul ………………………………….. 8 Towards a people-centred policy agenda for Inclusive Growth in Seoul …....................... 13 Part 2 | Pioneering efforts to bridge climate action and inclusive growth ………….. 14 Climate change impacts and inequalities in Seoul ……………………………………………………….. 15 Climate change mitigation policies in Seoul ……………………………………………………………….. 18 Towards inclusive, low-carbon growth in Seoul: Challenges, opportunities and next steps …………………………………………………………………….. 20 Part 3 | Fostering Inclusive Growth through the Economic Democratisation Agenda ......................................................................................................... 26 SMEs and entrepreneurship are key to deliver more inclusive growth in Seoul …………….. 26 SME and entrepreneurship development challenges require action …………………………….. 26 The Economic Democratisation Agenda: An important policy lever for SMEs and entrepreneurship in Seoul ......................................................................................... 28 Moving forward: Strengthening support for SMEs and entrepreneurs from under-represented populations ........................................................................................31 Notes and Bibliography ………………………………………………………………………………………. 34 Introduction Inequalities are a pressing policy challenge in Seoul The Dutch government is developing new tools Seoul has been at the centre of Korea’s These Policy Highlights summarise the and institutional responses to strengthen urban areas political, economic, and social transformation preliminary findings from the OECD Case Study over the past decades. The country has shifted of Inclusive Growth in Seoul, assessing Seoul to democracy, experienced rapid urban and Metropolitan Government’s progress towards economic growth, and achieved high more Inclusive Growth. education attainment levels and a technology • Part 1 will examine major urban and boom, transitioning into a major global player. economic trends in Seoul, with a special Despite these achievements, the benefits of focus on challenges facing vulnerable economic growth and urbanisation have not groups, and assess a selection of outcomes been equally distributed. Echoing trends of a along the four pillars of the New York growing gap between the rich and the poor Proposal and the Paris Action Plan: across OECD countries (Box 1), Korea registers education, labour market, urban the seventh-highest income gap and the environment, and infrastructure and public eighth-highest relative poverty rate in the services. OECD (OECD, 2016a). There are also high inter- • Part 2 will take a closer look at the impact regional income disparities within Korea: Korea of climate change on inequalities in Seoul, recorded the seventh-highest rate of regional and at the Seoul Metropolitan disparities among OECD countries in 2013 Government’s efforts to bridge strategies (OECD, 2016b). The Seoul Capital Region for climate change and inclusive growth, concentrates around half of the country’s GDP, building on the Promise of Seoul, the city’s firms, jobs and population. long-term strategy released in 2015 to But inequalities are not just about income, achieve an inclusive, low-carbon future. and some demographic groups in Seoul face • Part 3 will focus on the city’s efforts to level significant barriers to access social and the playing field for small and medium- economic opportunities, including quality sized enterprises (SMEs) and provide housing, transport, education and jobs. While support to specific populations and Seoul performs relatively well in terms of economic sectors through its Economic educational outcomes and access to services, Democratisation Agenda. important challenges remain, especially for youth, women, the elderly and migrants. Some of these groups will be more vulnerable to the impacts of a changing climate in Seoul. And there are a number of challenges facing firms – particularly small firms – and individuals in the labour market. 5 Box 1. Inclusive Growth and the global coalition of Champion Mayors at the OECD Across the OECD, the average income of the Inequalities can be even more acute in cities. richest 10% of the population has grown from Income inequality tends to be higher in cities seven to ten times that of the poorest 10% in a relative to their respective national average single generation. But inequalities are not just (OECD, 2016c). In recognition of the key role of about money: they affect every dimension of cities in tackling inequalities, the OECD created people’s lives and well-being, such as life a global coalition of Champion Mayors for expectancy, education outcomes, and job Inclusive Growth in March 2016. Together, prospects. Champion Mayors delivered the New York Proposal for Inclusive Growth in Cities and the In 2012, the OECD launched the Inclusive Paris Action Plan for Inclusive Growth in Cities, Growth initiative