IGES Project on Urban Environmental Management Agenda of the 3rd Project Group Meeting Urbanization, Industrialization and Sustainable Development in Korea - The Case Study on Ulsan Metropolitan City

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IGES Project on Urban Environmental Management
Agenda of the 3rd Project Group
MeetingUrbanization, Industrialization and
Sustainable Development in Korea- The Case Study
on Ulsan Metropolitan City

• Prepared by
• Changsuk Kim ( Seoul City Univ., Ph. D )
• Hoiseung Jeong ( Korea Environment Insitute, Ph.
  D )
• Deokho Cho ( Univ., of Taegu, Ph. D )
• Dongkun Lee (Sangmyung Univ., Ph. D )
• Dec. 2, 1999
• This study is performing with the financial
  supports of the Institute of Global Environmental
  Strategies.

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ltTable of Contentsgt ?. Introduction ?. Urban
Development and its Evaluation System ?.
Urbanization and Environmental Problems in Korea
?. Case study ? Ulsan- Metropolitan City ?.
Case study ? Ansan City ?. Urban Environment
Management System in Korea VII. The Development
Strategies for the Sustainable Urban
Environments ltAppendixgt
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• I. Introduction
• 1.Background of This Research
• East-Asian Countries have experienced rapid
  economic growth, industrialization, and
  urbanization. They also created several
  environmental problems in local, national, and
  even global level. And then, the current
  economic growth policy reaches some limitations
  environmentally in sustaining an economic growth.
  Therefore, the goals of this research find a new
  paradigm for the sustainable development
  economically, socially, and environmentally in
  this area and suggests a new direction of
  economic development for the developing
  countries.
• Korea has influenced the economic growth of
  East Asia countries because she is one of the
  most successful countries in terms of the
  economic development. In another way she has
  been experiencing very serious environmental
  problems due to negative impacts of a rapid
  economic growth. She changed recently a growth
  strategy from an economic growth to a sustainable
  development in order to solve environmental
  problems. Therefore, Korean experiences will be
  helpful to solve environmental problems of other
  Asian countries.

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• 2. Scope of This Research
• 1. This research covers the Korean economic
  growth policy in macro system and incentive
  structure. Based upon this policy, it notes
  Ulsan and Ansan industrialization process. The
  former has focused on the building of
  heavy-chemical industrial complexes by the
  central government in order to promote the
  national economy. Many inappropriate industrial
  facilities of the Capital Seoul City are
  relocated in the latter
• 2). It examines the urbanization process in
  national and local levels, it identifies a
  relationship between the economic growth and
  environmental pollution. It also contains the
  urban environmental problems in Ulsan and Ansan.
  This model will apply to the Ulsan and Ansan Case
  Study.
• 3). It develops the environmental indicators
  under the Driving Force- Pressure- State- Effect-
  Response Framework of the specific cities for
  applying to the developing countries.
• 4). It will develop the environmental indicators
  for elaborating the sustainable urban development
  model for the developing countries.
• 5). It finally will build a new model on the
  sustainable urban growth management for solving
  the environmental problems in East-Asian Cities.
  And it also suggests a new paradigm for the
  economic growth and environmental problem solving.

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• 3. The Goal of This Research
• Based upon the above researches, it will develop
  a model of sustainable urban growth management
  policy for the East-Asian sustainable urban
  development policy.
• The Flow Chart of This Research

• The Korean Experiences on the Industrialization,
  Urbanization, and Environmental Policy
• Nation Level
• Local Level (Ulsan, Ansan)
• Environmental Problems
• - Governance on the Environmental Issues

• Developing of the Environmental Indicator under
  the DPSER Framework
• Driving Force
• Pressure
• State
• Effect
• Response

• The Case Study for the Building of A Sustainable
  Urban Growth Management Policy in Korea
• Economic Development (Ulsan and Ansan)
• Industrial Policy
• Environmental Assessment Model

• Building of A New Sustainable Development Model
  in East-Asian Cities
• - Economic Growth
• - Industrial Policy
• Governmental Policy
• Citizen Participation
• Environmental Management

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• ?. Urbanization Industrialization in Korea
• 1. National Land Use Circumstances in Korea
• The South Korea national land is 94.229 ?.
  National land use is composed of forest (65.8
  percent), agriculture (22.1 percent), industrial
  (4.1 percent), public sector (2.4), and other
  areas (7.15 percent). The urban areas have been
  increased dramatically, residential areas 2.9
  times, public sector areas 2.8, and especially
  industrial sites have increased 34.6 times for
  the last 50 years.
• Figure 1. Korean Land Use Pattern

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2. The Korean Economic Growth Policy In 1960s
Korea was a desperate and poor country due to the
Korean War and social unrest such as the student
movement in 1960 and the military coup in 1961.
However, Korea became a member of the
Organization of the Economic Cooperation and
Development (OECD) which its members are composed
of the developed counties in 1996. The Korean
national income as a whole grew at an average
annual rate of 7.9 percent during the period from
1963 to 1995 (Kim and Hong, 1997). It comes
from several different factors such as a strong
government policy for economic development,
highly skilled labor and low wage, individual's
willingness to overcome poverty, and the "Can Do
Spirit for Economic Growth." An authoritarian
military government built the Economic
Development Five Years Plan in 1962. This plan
was directed by a strong and authoritarian
government and lasted until the 1980s (see Table
1).
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ltTabel .1gt The Goal and Policy Issues of Economic
Development Five Years Plan
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• Figure 2. The Change of Population and
  Urbanization Rate

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• (Figure 1). Economic Growth and Environmental
  Problems

Resources Use Material Consumption Environmental
Pressures
Environmental Problem Cycle of Before ESSD
Carbon cycle, Nitrogen cycle, Water cycle
Environmental problem cycle of after ESSD
GNP (time)
Source Velliga, Pier(1998), Industrial
Transformation Research, p.2, Figure 2. Economic
Growth and Resources (revised by an author).
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Figure 7. Development Framework of DSPER Structure
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2.Structure and Composition of the Model

• The relation between industrialization and
  environment depends on both national factors and
  region-specific factors. However their influence
  varies at the stage of the model.
• National Region Specific
• Driving Force ? ?
• Pressure ? ?
• State
  ?
• Effect ? ?
• Response ? ?
• Strategic ? ?

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4. Definition and functions of environmental
indicators

• In general, "An indicator is a parameter, or a
  value derives from parameters, which points
  to/provides information about/describes describes
  the state of a phenomenon/environment/area with
  significance extending beyond that directly
  associated with a parameter value.
• Within the DPSER framework, five types of
  indicators can be noted
• .Indicators of driving force describe parameters
  which people can influence on the environment
  under the framework between the human and nature.
  They contain the urban activities and
  utilization of resources by the people such as
  government leadership and policy factors
• .Indicators of pressure note parameters that are
  influenced by the indicators of driving force.
  They generally include the land use change and
  load on the environment.
• . State indicators indicate the state of
  sustainable development that contain the
  environmental status.
• .Effect indicators include the disease,
  desertification and extermination of
  bio-diversity due to the environmental problems.
• .Response indicators note policy options and
  other responses to the changes in the state of
  sustainable development.

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• Figure 8. The Framework of DSPER Structure

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ltTable 2 gt Components of environmental indicators
in study areas
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?. DPSER Framework for the Ulsan Metropolitan
City 1. General Circumstances of the Ulsan
Metropolitan City UMC is one of the fastest
industrialized cities within the country or in
the world since 1962 when she became a city. She
is a symbolic city of Korean development in terms
of industrialization, urbanization, and even
environmental problems. The Korean government
nominated Ulsan as a special industrial area and
established an industrial center by the 'Special
Law of National Industry Site Development'
(Corporation of Industry Site Development, 1987).
Based upon this law, Ulsan National Industry
Complex was constructed. . A city is a town
where more than 50 thousand peoples live.
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• 2. DPSER Framework of the Ulsan Metropolitan City
  for the Sustainable Development
• 2.1. Driving Force of the UMC
• UMC is one of the fastest industrialized
  cities within the country or in the world since
  1962 when she became a city.
• She is a symbolic city of Korean development
  in terms of industrialization, urbanization, and
  even environmental problems. The Korean
  government nominated Ulsan as a special
  industrial area and established an industrial
  center by the 'Special Law of National Industry
  Site Development.'
• Based upon this law, Ulsan National
  Industry Complex was constructed.
• At the initial stage of industry complex
  development, its population and size were
  respectively 85 thousands and 176.04 km2.
  However, its population and size are separately
  991 thousands and 1,055.55 km2 in 1996. The
  number of population has increased about 12 times
  and urban size six times during 34 years
• The development process of UMC is lined up
  with the building process of industry complexes.
  The stages of development of industrial complex
  are as follows
• The first stage (1962-1966) focused on the
  building of an industry site and infrastructure
  such as port, road, and water provisions for the
  Ulsan Industry Site.

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The Change of Population and Area of the UMC
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The Number of Cars of in Korea(Unit 1,000 Cars)
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The Number of Cars of the UMC
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The Growth of GNP, GDP and GNP per Capita in Korea
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• The second (1967-1971) made an effort to
  construct the heavy chemical industrial complex.
  A refined oil industry along with chemical
  fertilizer industries was built in the water
  front areas such as Jangsengpo and Yeochun. In
  order to support these facilities, social
  overhead capital such as port, road, and steam
  power plant also was installed in this era.
• The third period (1972-1976) was a leaping
  stage in the development of Ulsan industry.
  Ulsan's representative industries such as
  automobile and shipbuilding were constructed in
  Yumpo and Mipo industry complexes during this
  period.
• In the fourth stage (1977-1981),
  agglomeration and scale effects of these
  industries was gradually generated and several
  industries such as iron, automobile, and lumber
  were located in order to enjoy these side
  effects.
• An industry belt was established in the
  fifth period (1982-1986) because existing
  industry complexes were continuously grown in
  terms of productivity and scale, and new industry
  complexes like Unyang and Yongyun were built.
  And then Ulsan has grown the biggest
  heavy-chemical industry complex city in South
  Korea in terms of amount of products and scale.
• In another aspect, Ulsan has tried to
  reduce environmental problems through changing
  the structure of industrial base from petroleum
  chemical plants to automobile and shipbuilding
  plants, which are relatively a low pollution
  industry. Eventually, main industries gradually
  has changed from the petroleum chemical industry
  to the automobile and shipbuilding since 1987
  (UMC, 1997).
• As a result, two national industrial
  complexes and several local industrial complexes
  were located in UMC as the Figure 1. The
  productivity is corresponded to 18.9 percent in
  that of nationwide manufacturers and 21.1 percent
  in amount of nationwide export customs (UMC,
  1997). Finally, Ulsan was eventually grown to
  the symbol of Korean economic development

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Figure 1. The Location of Ulsan Industry Complexes
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ltTable 2gt Economic Status of Ulsan Metropolitan
Area in 1996
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2. The Environmental Pressure in UMC These
explosive urbanization and industrialization
however created several environmental problems
such air quality, sewage water, soil, and river
and ocean pollution in UMA. Especially, Ulsan's
environmental problems are serious more than that
of any other city because most manufacturing
plants are pollution-related industries such as
petroleum-chemical or automobile and shipbuilding
industries. Source industries of environmental
pollution are like Table 3.
ltTable 3gt. Source Industries of Environmental
Pollution in 1998
Source This data is provided by the Department
of Environmental Protection in UMC in 1998 ( ) is
the number of source industry of two national
industry complexes (Ulsan and Onsan)
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Population Increase and Urbanization Rate in
Korea and 7 Large Cities
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Land Use Plan in 7 Large Cities(?)
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Land Use by Land Category in the UMC
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The GDP and Energy Use in Korea
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Gas Consumption in the UMC
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Industry, Agriculture and Industry
Complexes(Unitm3, number, person)
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2.3 The Environmental States of the UMC Main
pollutants of national complexes are air and
poison pollution because major factories in these
areas are petroleum chemical or heavy industries.
More specifically, two major environmental
problems in the UMC are air quality and water
pollution.
ltTable 4gt. The Circumstance of Air Pollution in
UMC
Source Ulsan Commercial Chamber (1998), The
Economic Status of Ulsan Metropolitan City in the
Circumstances of Ulsan Commercial and Industrial
Sites (p.2). 1). Each number is extracted from
the Korean Census Survey on the Mining and
Manufacturing Industry 2). 1 US dollars ()
900 Korean Won
Water quality can be noted in Table 5. Water
pollution exceeds the environmental criteria in
most areas except coastal water. In other words,
the UMC is experiencing serious water pollution.
However, water quality has improved since the
middle of the 1990s due to the same reasons which
account for the improvement of air quality.
Other environmental problems such as noise, soil,
and poison also became better as the result of
the effort of the local government and the public
(UMC, 1997). In a broad sense, the
environmental quality of the UMC has been
improved but that of specific industrial
complexes is still deteriorating.
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Air Pollution (SO2) by the Metropolitan City
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Generation of Waste Water and Household Waste
Water per Day
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Table 5. The Circumstances of Water Pollution in
the UMC
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The Method of Waste Treatment in the 7 Large
Cities (household Industrial waste)
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Environment Related Organization
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. Investment on the Environment Issues and
Financial Sources
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Investment sections
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• IV. Lessons from the Korean and Ulsan
  Experiences.
• Everything in Korea has been changed dramatically
  except human species during the last 40 years.
  In a broad sense, Korea has become a better
  society. However, this rapid growth created a
  serious negative result. In other words,
  'environmentally,' "Samcheunri Gumsu Gang San" is
  altered to a serious polluted country. More
  specifically, the environmental problem of Ulsan
  is very serious like the above descriptions even
  if she has played the role of engine to promote
  the Korean economic growth. The reasons can be
  summarized as follows
• 1) In order to promote economic growth, the
  Korean government adopted the growth strategy of
  heavy-chemical industry that is a
  pollution-related manufacture. Ulsan is a
  symbolic city of economic growth and
  environmental problems. Ulsan's economic growth
  indicated the deterioration of urban
  environments. It was a trade-off relation.
  Therefore, the government should adopt the
  environment friendly industry to stop the
  trade-off relation of economic growth and
  environmental problems. It is a sustainable
  development strategy.
• 2) The second is that the central government did
  not consider the environmental impacts of
  heavy-chemical industrial complexes. However, if
  the environmental problems occur once, it is very
  difficult to cure them by their inherent nature.
  Actually, even though the central government has
  tried to cure the environmental problems since
  1984, it became worse so far. Fortunately, the
  central government had continuously reforested in
  mountain areas since 1960s and succeeded in
  building a green national land except urban
  areas.

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• 3) The third is the management of environmental
  problems. In terms of political structure, the
  local autonomy was not established until 1995 and
  environmental policies were controlled by the
  central government. It resulted in the
  inefficient correspondence on the local
  environmental problems. Until now, national
  industrial complexes are regulated by the central
  government and local complexes are controlled by
  the local one but both complexes are located
  within the UMC. Two different organizations
  involved in the management of Ulsan environmental
  problems and it caused several problems on the
  management of several industrial complexes.
• 4) The non-profit organization and citizens must
  participate in the improvement of environmental
  problems because it is impossible to do it
  without their helps. Many environmental
  organizations and citizens and even some
  factories recently involved in the improvement of
  environments in the central and local level. The
  public concerns on the environmental issues
  increased explosively because the environmental
  problems such as fresh water, air quality, bad
  smell and so on are directly related with the
  quality of their lives.
• In summary, in the beginning stage of economic
  development, Korea made a mistake that did not
  consider negative impacts of rapid economic
  growth which are environmental problems. As a
  result, she has paid a lot of costs to cure these
  problems and still is undergoing. Very recently,
  the central and local government, citizens'
  organizations and even plants begin to take into
  consideration on the environmental issues. As a
  result of these efforts, the direction of
  environmental problems changed from the
  deteriorating trend to the improving one
  (Department of Environment Protection of UMC,
  1998).

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• VII. Concluding Remarks and Future Studies
• 1. building of sustainable urban growth
  management model
• (1). Economic growth policy
• (2). Urban amenity
• (3). Industry ecology and sustainable consumption
• (4). Role of organizations (government, social
  organizations, and citizens)
• (5). International comparisons of the
  environmental and economic growth policy
• (6). Governance on the environmental issues
• 2. .Applying the Modified Model to Case Study
  Cities
• .3. Finding Policy Implications

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• IV. Research Members
• Changsuk Kim (Seoul City Univ. Ph.D Projector
  Leader cskim_at_uoscc.uos.ac.kr)
• Hoiseung Jeong (Korea Environment Institute,
  Ph.Dhsjeong_at_keins.kei.re.kr)
• Deokho Cho (Univ. of Kyongju, Ph.D
  chodh_at_biho.targu.ac.kr)
• Dongkeun Lee (Sangmyung Univ. Ph.D Project
  Manager)
• (dklee_at_smuc.sangmyung.ac.kr)
• 8 Research assistants(2 assistants per professor)

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• V. Time Schedule of Study and Members' Roles