Re-urbanization pattern of manufacturing and characteristics of urban manufacturing in South Korea

Abstract

Despite a growing interest in the emerging pattern of the re-urbanization of manufacturing and characteristics of urban manufacturing, there is very little empirical and quantitative research on these topics. This study investigates whether the trend of re-urbanization of manufacturing in South Korea is emerging; it does so by calculating the urban location index of each manufacturing establishment set up between 2010 and 2019. Furthermore, it evaluates the characteristics of urban manufacturing using a multi-level regression model. The results of this study reveal a trend of industrial re-urbanization in South Korea since the 2010s. In particular, small manufacturers and manufacturers in both clean and high-tech industries have exhibited a considerably strong re-urbanization tendency compared to other types of manufacturers. In addition, it was found that urban manufacturing facilities are typically small, clean, high-tech, vertical, and located in industrial parks, and that urban manufacturers prefer regions with diverse economic structures, highly skilled workforces, and a highly verticalized, mixed-use physical environment.