According to the quarterly and annual Vital Statistics Survey by Statistics Korea, the dead cross phenomenon, in which the number of births fell below the number of deaths, began in 2020. During the first three quarters of 2022, the number of births d...
According to the quarterly and annual Vital Statistics Survey by Statistics Korea, the dead cross phenomenon, in which the number of births fell below the number of deaths, began in 2020. During the first three quarters of 2022, the number of births dropped below 200,000 for the first time, and in the fourth quarter of 2023, the total fertility rate was recorded at approximately 0.65, which is only half of the ultra-low fertility threshold of 1.3. The issue is that the impact of this population decline will not be evenly distributed across the country, but will create more severe crises in underdeveloped small and medium-sized cities and rural areas.
The first five-year economic development plan, launched in 1962 with the goal of export-oriented industrialization, rapidly transferred the abundant rural labor force to urban industrial sectors through an unbalanced growth strategy centered on cities. As a result, rural areas have experienced rapid shrinkage and underdevelopment. However, due to the government's efforts to promote balanced regional development, policies encouraging a return to farming and rural settlement, the return of baby boomers, the decline of urban job opportunities, the expansion of transportation networks, and the growing appeal of rural lifestyles, the trend of rural repopulation began in 2006. According to Statistics Korea’s annual Rural to Urban Migration Statistics, the number of returning farmers and rural residents reached 515,434 in 2021, a 4.2% increase from the previous year, and the second highest figure after 516,817 in 2017.
However, in 2022, within a year, the population and number of households returning to farming and rural areas fell by 76,353 and 46,564 households, respectively. The reasons for the decrease included a decline in domestic migrants and housing transactions, an increase in single-person households returning to farming and rural areas, and a recovery of the urban economy. However, despite a decline of 520,000 in total population movement in 2021 compared to the previous year, the number of returnees to farming and rural areas has increased, and the rise in single-person households is a nationwide trend extending beyond rural areas, making the decrease in the population of 76,000-person decline in returnees to farming and rural areas particularly unusual compared to the previous year. It is premature to determine whether this sharp decline represents a structural trend reversal or merely a temporary phenomenon. However, the full impact of the ongoing population decline will pose the greatest threat to our rural areas in the near future.
Meanwhile, rural areas, which were described as a stagnant image of decline and backwardness, have recently exhibited greater regional diversity. Even in the same rural region, the industrial structure is not entirely agricultural. Some rural areas face the risk of population extinction, with villages themselves at risk of disappearing, while others are experiencing rapid population growth, and the traditional rural identity has faded due to urbanization and industrialization. In addition, there are areas with both rurality and urbanism, so the lives of residents are also diversified to the extent that it is difficult to evaluate based on a single standard. Regions, once constrained by rigid geographical and administrative boundaries, are actually changing very quickly and pluralistically when examined from the inside, and the pattern of change is also different for each region.
In response to population decline, Korea's regional policy focuses on developing industrial complexes to encourage urban-to-rural migration as part of the national balanced development strategy, attracting companies through the discovery of specialized industries, relocating public institutions from the metropolitan area, and developing large-scale housing projects. A growth-oriented regional policy that relies solely on uniform physical infrastructure investment—without accounting for regional characteristics or fostering sustainable population inflows—leads to inefficient resource allocation and fails to effectively mitigate population decline or advance balanced national development. To simultaneously address the dual challenges of regional diversity and population decline that our rural areas are facing, it is time to move away from uniform regional policies and adopt region-specific policies that reflect unique characteristics and evolving dynamics.
As the first step to addressing these pressing challenges, this study broadened the concept of a region beyond a rigid and formal framework toward a more pluralistic and flexible perspective. In order to move away from past uniform and quantitatively driven policies and promote differentiated policies tailored to regional characteristics and conditions, this study redefined the spatial scope of the region, which is being diversified in various ways in the connection between regions, and attempted to categorize it according to the actual properties of the region. Based on this approach, this study analyzed the determinants of movement of various populations and household groups beyond the simple quantitative scale of those returning to farming or rural areas. In addition, this study analyzed the impact of qualitative factors on regional growth by region type, which can prevent additional population outflow and satisfy various settlement demands by enhancing the quality of life of local residents in addition to traditional production factors. Through this analytical framework, this study underscores the need to prepare for the era of population decline by maintaining and improving the quality of life for local residents based on the characteristics of population inflows and outflows in each region through differentiated population and regional policies, while minimizing population outflow by improving tailored settlement conditions.
First, moving beyond the conventional classification of cities (Si) as urban and counties (Gun) as rural, this study sought to reclassify all Si and Gun regions by considering regional interconnectivity and interdependence. To achieve this, the study classified all Si and Gun regions into four types based on 2020 data, using Principal Component Analysis (PCA) and non-hierarchical K-means cluster analysis. The 35 cities and counties in Type 1 were designated as ‘urban and industrialization hub growth regions,’ the 41 cities and counties in Type 2 were designated as ‘urban and industrialization transition regions,’ the 41 cities and counties in Type 3 were designated as ‘agricultural-based regions with declining population,’ and the 43 cities and counties in Type 4 were designated as ‘economically diversified regions with declining population.’ Through this classification, the region was viewed from various perspectives reflecting its endogenous nature, marking a departure from the conventional dichotomous regional classification.
Based on this regional classification, this study examined the distinct migration patterns and determinants across various demographic groups by region type at the national level. Each of the four region types was designated as both an origin and a destination, and the determinants of population movement by regional type were analyzed using a logit model for individuals and households that experienced residential movement. For this analysis, this study employed 20% microdata from the approved sample of the Population and Housing Census provided by Statistics Korea, which provides comprehensive demographic and socioeconomic information on residents at the Si and Gun levels.
As a result of the analysis, the most significant difference in migration determinants among regional types was educational attainment. Young, highly educated individuals in urbanized Type 1 and Type 2 regions tended to avoid rural and underdeveloped Type 3 and Type 4 regions. Conversely, young, highly educated individuals in Type 3 and Type 4 regions preferred to move to Type 1 and Type 2 regions, where greater economic opportunities were available. Since non-urban areas, including rural areas, did not provide sufficient employment opportunities for the younger generation, they were returning to cities. However, although relatively small in scale, the positive likelihood of young, highly educated individuals migrating to agricultural and rural areas suggests a new potential for development in underdeveloped rural regions. In addition, middle-class and above retirees are only one of the groups that make up the inflow of rural areas experiencing population decline and slowing growth. Highly educated young women, highly educated, high-wage, tertiary industry workers, local community participants, retirees, returnees, migration of various classes and groups, including foreigners, varied across regions. The movement of various classes by regional type also means that there are different purposes and perspectives on regional life. Therefore, it is necessary to strengthen regionally differentiated settlement conditions—such as housing, education, healthcare, and culture—that cater to the needs of various social groups. Additionally, accessible regional information can help foster interest and engagement, ultimately encouraging residential settlement.
Finally, by examining the influence of soft factors—such as settlement conditions, education, cultural environments, and welfare—on regional growth, instead of the traditionally emphasized hard factors, including transportation, housing, natural resources, regional production infrastructure, and labor force, this study highlights the need for a policy shift from a conventional hardware-oriented approach centered on physical infrastructure to a software-driven approach prioritizing quality of life.
The dependent variable is defined as the Gross Regional Domestic Product (GRDP) at the Si and Gun levels. The independent variables comprise 17 quantitative and qualitative regional indicators expected to influence regional growth, including population growth, regional development, basic living services, amenities, and diversity. A balanced panel dataset was built for 167 Si and Gun regions across the nation, spanning 11 years from 2010 to 2020. The two-way fixed effects model was employed to estimate the net effect of the independent variable while controlling for unobserved heterogeneity at the individual and temporal levels. Furthermore, to effectively address simultaneous causality and residual endogeneity concerns, this study applies the two-way fixed effects two-stage least squares (2SLS) method with instrumental variables.
The analysis results show that quantitative population policies and development-centered regional policies alone have limitations in achieving sustainable regional growth. Instead, qualitative regional factors—such as basic living services, amenities, and diversity—were found to have a positive impact on regional growth. Through this, it is suggested that not only should rural identity, regarded as the greatest regional asset, be preserved, but also population outflow should be prevented through qualitative improvements in settlement conditions. Furthermore, the findings suggest the need for population policies tailored to the characteristics of each region and demand-driven regional development policies that are aligned with local needs.
This study categorized regions from multiple perspectives to effectively address the increasing diversity of regions in the era of population decline. In addition, it is significant in that it theoretically revealed the influence of the inter-regional migration phenomenon of various classes and qualitative factors, previously observed only empirically, on regional growth by deriving differential determinants of population movement and regional growth from the diversity of these categorized regions. The results of this study are expected to serve as meaningful basic data for establishing population and regional policies that reflect the unique characteristics of each region in the future.