President Lee Jae Myung said balanced regional development is not only an act of fairness to local areas, but also a route to Korea's survival and sustainable growth.

Speaking at a town hall in the southeastern city of Daegu on Friday, Lee warned that the deepening divide between the capital region and the rest of the country threatens long-term stability, saying the imbalance shows little sign of improvement and could worsen.

He linked the issue to the recent spike in Seoul-area housing prices, stressing that regional balance is crucial to solving the housing crisis.

Lee urged major companies to relocate outside the capital region, noting that even with tax cuts, cheaper electricity and loosened regulations, many firms hesitate to move due to labor shortages in the provinces.

He said the government will design policies that provide incentives for businesses and infrastructure projects outside the capital, ensuring development funds are directed outside Seoul.

Lee acknowledged the achievements of former President Park Chung-hee’s industrialization drive but said it had brought side effects such as conglomerate dominance and overconcentration in the capital and called for a new approach.