CRI

 [ABSTRACT]

 This study aims to analyze the general concentration rate (dependence on large corporations) and industry-specific market concentration levels (degree of competition within industries) in Chungcheongbuk-do. By diagnosing reliance on specific industries and major corporations and examining the relationship between market concentration and growth stability, the study provides foundational data for formulating regional economic policies to promote sustainable and stable growth. Based on 2022 revenue data, Chungcheongbuk-do’s CR3 was 6.6%, indicating that the top three companies, representing only 0.0015% of the province's total enterprises (197,000), accounted for 6.6% (KRW 18.3 trillion) of the total revenue (KRW 275.2 trillion). This represents a decline in CRk compared to 2018, which can be attributed to a significant decrease in revenues among the top-tier companies, accompanied by overall revenue growth among other firms within the top 100. The analysis of market concentration levels revealed that industries classified as low-concentration markets (77.9% under the HHI metric) outnumbered those classified as perfect competition markets (74.0% under CR3), indicating that market concentration is alleviated when all enterprises are considered. This highlights the presence of numerous competitive small- and medium-sized enterprises (SMEs) and mid-sized firms in the region. Furthermore, the number of oligopolistic industries—where three or fewer companies control more than 75% of the market—decreased from nine in 2018 to six in 2022. The relationship between market concentration and growth stability was examined using HHI for market structure and the coefficient of variation (CV) for growth patterns from 2016 to 2022. High-concentration markets exhibited no highly stable growth patterns and were predominantly characterized by unstable growth, suggesting that such markets are more vulnerable to external changes affecting a few dominant enterprises. In contrast, nine industries in low-concentration markets displayed unstable growth, indicating that intense competition does not necessarily guarantee stable growth.

To achieve sustainable and stable growth, Chungcheongbuk-do should pursue strategies to enhance industrial sophistication by fostering the service sector, diversify growth drivers, attract strategic investments to alleviate bottlenecks in the industrial ecosystem, and provide tailored support systems for mid-sized enterprises. Moreover, expanding support for SMEs and microbusinesses and addressing regional disparities are essential for promoting balanced development. In conclusion, Chungcheongbuk-do should adopt a two-track economic policy: sustaining quantitative growth through enhanced competitiveness in key industries while fostering qualitative stability by diversifying growth engines and strategically developing knowledge-based service industries. This dual approach will enable the region to achieve both sustainable and stable growth in response to evolving trends and socio-economic conditions.