The geography of Industry 4.0 in non-capital areas of South Korea: dualistic pathways of industrial transformation in peripheral regions

The rise of the Fourth Industrial Revolution, or Industry 4.0, poses a significant challenge for peripheral regions, as it often accelerates the concentration of economic activity in established metropolitan cores. This study investigates the geography of Industry 4.0 in the non-capital regions of South Korea, a nation marked by extreme spatial inequality, to analyze the spatial dynamics and determinants that foster industrial growth outside the dominant capital area. Using a mixed-methods approach that combines spatial statistics, regression analysis, and in-depth case studies, we empirically investigate the different development trajectories emerging in these regions.Our analysis identifies a clear statistical divergence: the locational determinants for the initial agglomeration of Industry 4.0 firms (e.g. a specialized manufacturing base) differ significantly from those for subsequent growth (e.g. a high-skilled workforce). The case studies further validate these findings, highlighting two specific models of industrial transformation: a ‘path-dependent evolution’, where regions build upon and upgrade their existing manufacturing ecosystems, and a ‘knowledge-based creation’, where growth is driven by the development of new, urban-integrated innovation hubs.These findings challenge conventional planning strategies that prioritize the simple quantitative provision of industrial land, suggesting that the quality and function of an urban-industrial ecosystem are more critical than the mere quantity of designated space. By providing an empirical model of industrial transformation, this research offers practical implications for urban and regional planning, demonstrating how peripheral regions can strategically navigate technological change to achieve sustainable and spatially balanced development.