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  • P-ISSN2287-1608
  • E-ISSN2287-1616
  • KCI

Economic Analysis of the 6th Industrialization Policy in Rural Areas: Case of South Korea

Asian Journal of Innovation and Policy / Asian Journal of Innovation and Policy, (P)2287-1608; (E)2287-1616
2025, v.14 no.1, pp.84-102
https://doi.org/10.7545/ajip.2025.14.1.084
Jonghoon Park (Hanbat University)

Abstract

This study analyzes the performance of Korea’s Sixth Industrialization Policy in rural areas and provides policy implications. Utilizing input-output tables from the Bank of Korea and applying a Computable General Equilibrium (CGE) model, various policy scenarios were simulated. The results indicate that increases in labor demand and government consumption expenditure significantly impact both primary and tertiary sectors. A comparative analysis of different industrial linkage types—primary only, primary-secondary, primary-tertiary, and full three-sector integration—reveals that injecting subsidies or capital into the primary sector alone yields limited economic effects. In contrast, linkages involving secondary and/or tertiary sectors generate greater policy impacts. These findings highlight the need to shift from primary-sector-focused support toward multidimensional strategies that promote cross-sectoral linkages. Future rural policies should be designed to foster integrated value chains rather than relying solely on direct support for agriculture.

keywords
Sixth Industrialization, Economic Impact, Cross-sectoral Linkages, Agriculture and Rural Development, CGE Model
Received
2025-07-17
Accepted
2025-07-17
Published
2025-04-30

Asian Journal of Innovation and Policy