Rapid aging and low birth rates have sparked concerns over population extinction in some provinces, and fundamental questions have been raised over the sustainability of basic local governments and effectiveness of regional development systems. In particular, amid the swift progress in digital and new technologies, the accelerating pace of low growth has precipitated the need to enhance regional industrial competitiveness and build innovative growth engines more than ever before. Therefore, the research in this paper was conducted with the following in mind: ① determinants of the transfer of industries or companies; ② effects of the transfer of public regional development institutions; ③ differential factors of regional industrial diversification and innovation systems; ④ sustainability of local government finances; ⑤ measures to resolve the inconsistency between the administration and daily life, and strengthening the connectivity between cities and their surroundings; ⑥ housing policy measures for regional development.

Regional development policies must consider both fiscal efficiency and economic growth at the national level, and connect and cooperate with the central and local governments to narrow regional gaps and bolster uniqueness while enhancing the effectiveness of policies. This highlights a crucial point in Korea's regional development policy. Indeed, when the issues of low growth, aging, and regional gaps facing Korean society and economy are considered, an examination of the sustainability of regional development must first be conducted followed by a guarantee of sustainable growth in which finances are managed.

Accordingly, this study first identifies a strategy for industrial diversification that is effective for regional economic growth, and provides implications by dividing the local environment into the dimensions of industrial diversity and innovation capability. It is found that the diversity of industries can have a positive effect on regional development but the economic impact can vary according to industry. As such, the industrial characteristics and conditions of a region should be considered. Secondly, it is also shown that while the relocation of a company can positively effect employment and investment in the short-term, it can diminish its soundness and profitability in the long-term, and the possibility of survival and growth decreases; which has negative repercussions for regional development. Thirdly, the relocation of public institutions is found to have boosted employment in local manufacturing and services which relates to the improvement of settlement conditions. However, no significant effects were observed in the employment in knowledge-based industries suggesting that the main industry must be nurtured for the region to continue growing. Fourthly, an examination of the financial conditions of local governments confirms that, with the exception of Seoul, unsustainable fiscal operations were implemented in 2013-2018. Fifthly, a direction for the reorganization of administrative districts is suggested as metropolitanization could accelerate the decline of non-capital cities. Besides the linkage between administrative districts, it is also recommended that areas with declining populations identify the living area system and strengthen their connections with neighboring areas. And lastly, a direction for housing policy is also presented since an inflow into and concentration of the metropolitan area can exacerbate the polarization of asset prices and income by region. In particular, this paper proposes a shift from the jeonse-centered lease policy to a guaranteed monthly rent and in the policy direction to respond to the increase in vacant homes in the non-metropolitan area.

Preface
Executive Summary

Chapter 1 Introduction: Strategies for Sustainable Regional Development
　Section 1 Problem Statement
　Section 2 Composition of Regional Development Strategies
　Section 3 Domestic and International Regional Development Policies
　Section 4 Fiscal Independence, Fiscal Decentralization, and Local Autonomy
　Section 5 Overview of Policy Directions and Strategies for Regional Development
　References

Chapter 2 Structural Transition of Regional Economies and Industrial Diversification Strategies
　Section 1 Introduction
　Section 2 Regional Industrial Policies and Industrial Diversification
　Section 3 Regional Development and Industrial Diversification: Empirical Analysis
　Section 4 Development Strategies Based on Regional Characteristics
　Section 5 Summary and Conclusion
　References
　Appendix

Chapter 3 Strategies for Corporate Relocation and Growth for Regional Development
　Section 1 Introduction
　Section 2 Government Support Systems for Corporate Relocation
　Section 3 Corporate Data and Empirical Analysis Methodology
　Section 4 Analysis of the Impact of Corporate Relocation on Firms
　Section 5 Strategies for Corporate Relocation and Growth
　References

Chapter 4 Regional Development Strategies Through Relocation of Public Institutions
　Section 1 Introduction
　Section 2 Relocation of Public Institutions and Innovation Cities
　Section 3 Comparative Analysis Before and After Public Institution Relocation
　Section 4 Impact of Public Institution Relocation on Private Sector Employment
　Section 5 Conclusion and Implications
　References
　Appendix

Chapter 5 Assessment of Sustainability in Local Government Finances
　Section 1 Introduction
　Section 2 Characteristics of Local Government Finances in Korea
　Section 3 Review of Previous Studies
　Section 4 Evaluation Model for Sustainability of Local Government Finances in Korea
　Section 5 Analytical Data, Results and Discussion
　Section 6 Conclusion and Implications
　References
　Appendix

Chapter 6 Directions for Administrative District Reorganization for Sustainable Regional Development
　Section 1 Problem Statement
　Section 2 Previous Discussions and International Cases on Administrative District Reorganization
　Section 3 Empirical Analysis of Small and Medium-Sized Urban Living Area Systems
　Section 4 Policy Directions to Strengthen Connectivity Between Cities and Regions
　References

Chapter 7 Housing Policies for Regional Development
　Section 1 Introduction
　Section 2 Causes of Population and Economic Concentration in the Capital Area
　Section 3 Income Inequality, Income Polarization, and Disparities by Source of Income
　Section 4 Characteristics of the Rental Housing Market and Determinants of Housing Prices
　Section 5 Analysis of Regional Rental Housing Costs
　Section 6 Status and Causes of Vacant Homes by Region
　Section 7 Conclusion and Policy Implications
　References
　Appendix

Chapter 8 Summary and Policy Implications
　Section 1 Summary
　Section 2 Policy Implications

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