The government has implemented plans for relocation of the public sector since 2005, with an aim to build self-sufficient innovative cities to deal with excessive concentration of administrative services in the capital area and promote a balance in nationwide development. As construction of infrastructure for these cities and relocation of public agencies are in the final stages today, it is essential to review overall progress against initial plans and examine the impact this public institution relocation has had in terms of boosting local communities.

  To this end, this report assesses the relocation-related performance of the central government, local governments and relocated public agencies, the impact of the program on local economies, and the progress of industry-academia clusters, which is the goal of the next phase after relocation.

  The assessment reveals that the relocation of civil servants and their families remains infrequent due to a low level of support from the central and local governments to improve education and settlement conditions. While hiring local applicants is on the rise, the report suggests this practice should be further promoted through preferential treatment for local applicants such as through setting of quotas and strengthening cooperation for education between public agencies and local universities.

  Meanwhile, to address inefficiency from the relocation of public institutions, including the growing number of business trips, the underutilized Smart Work System needs to be promoted and inter-institutional effort made, working with the executive and legislative branches of government, to exclude unnecessary business trips.    

  Lastly, to promote industrial-academic clusters, it is desirable to strengthen the framework for coordination and cooperation between related agencies through implementing joint programs and encouraging partner companies of public agencies to relocate as well.