In 1962, during an official visit to West Germany, the South Korean president Park Chung-hee stopped his car numerous times on the autobahn, kneeling to touch pavements, examining interchanges and investigating guardrails. His invaluable experience led to the construction of the Seoul-Busan Expressway from the capital to the nation's largest port - a 430km expressway completed at only a tenth of the budget that developed countries normally needed.
South Korea is a mountainous country little bigger than the UAE, but with a much larger population of 50 million. As exemplified by the Seoul-Busan Expressway, the efficient use of territory has always been at the centre of the government's policy on constructing industrial clusters and connecting them through expressways and railways. That policy has evolved over the past half-century, and continues to evolve.
With the new expressway open in 1970, major regional industrial complexes and ports were connected, creating a favourable condition in South Korea to pursue its trademark export-oriented development policy. This represented a typical case of "choice and focus," showing how the South Korean government used limited financial resources for the most effective territorial development.
It should be noted that South Korea's territorial policy over the past 60 years has been implemented in tandem with its economic and social policies. Between the 1960s and the 1980s, industrial development was concentrated in regional "growth centres" with the aim of making the most of limited resources for the country's rapid economic growth.
For instance, in the 1960s, the country's first export industrial park was launched in Seoul. The consequent sharp rise in the number of manufacturing operations in Seoul accelerated the rural population's migration to the capital from 10 per cent of the total population in the 1960s to 18 per cent in the 1970s. In the 1970s, the government built coastal industrial complexes in the south-east of the country under the heavy and chemical industry drive, which was completed by the Chun Doo-hwan administration (1980-1988). In 1988, when the country hosted the Olympic Games, Roh Tae-woo became president by direct election, ushering in a period of democratisation.
In the 1990s, when civic organisations began to raise their voices on various social issues, the country adopted a policy of full-fledged local autonomy, paving the way for decentralisation and balanced economic development across regions. The Kim Young-sam (1993-1998) and Kim Dae-jung (1998-2003) administrations followed suit to focus their efforts on improving the regional distribution of infrastructure projects and adopted a market-oriented approach through the deregulation of land use. This was a stark departure from the previous territorial policy that was characterised by a myriad of regulations.
In the 2000s, the drive to promote balanced national development gained further momentum to close regional development gaps. As society matured and democratised, there was growing interest and demand for environmental improvements and a better quality of life. The government initiated a re-examination of the projects that had been designed on the basis of efficiency during the years of rapid development.
A recent case in point was the restoration of Cheonggyecheon, a small but vital stream that flows through the centre of Seoul. In the 1960s, the stream was paved and covered to be used as a site for modern roads and shops. However, as society began to demand a cleaner and more comfortable living environment rather than high economic growth, the Cheonggyecheon restoration project was formulated in 2003. Such a major project initiation required balancing of interests and management of conflicts among numerous stakeholders. Lee Myung-bak, then Seoul mayor and now South Korean president, prepared a detailed preparation plan, and showed strong leadership in going ahead with the project through numerous meetings and intensive persuasion of main stakeholders.
Park Kyung-ree, a renowned novelist who was regarded as the mother of the civic movement at that time, was in the forefront of supporting the project, saying: "Without the patience to endure a short period of inconvenience, our future will be ruined. We must endure it with the resolve of contributing to our descendants." Her full support helped persuade those who had before protested against the restoration.
Following the successful restoration, an extensive reform of the Seoul bus system needed to be carried out to address the traffic congestion aggravated by the restoration project. This was another case of a successful territorial project, made possible through the leadership's strong will, successful interest and conflict resolution among stakeholders, and well-coordinated public-private partnership. Through the complete reform of the bus system, which was once complicated and inefficient, public transportation has become much more convenient, contributing to public welfare.
In South Korea, an extensive and well-connected web of industrial complexes, innovations clusters, free trade areas, and free economic zones is an integral part of the government's continuous efforts to further develop regional economies, including the Fourth National Comprehensive Territorial Plan (2006-2020) that envisions a self-standing regional development base, a network-type infrastructure, a humane settlement atmosphere, and a decentralised territorial planning and implementation system. As South Korea's economic development reaches a stage of maturity, its territorial policy has evolved accordingly, embracing the new and diverse voices of the citizens.
Hyun Oh-seok is president of the Korea Development Institute
Tips from the expert
Dobromir Radichkov, chief data officer at dubizzle and Bayut, offers a few tips for UAE residents looking to earn some cash from pre-loved items.
- Sellers should focus on providing high-quality used goods at attractive prices to buyers.
- It’s important to use clear and appealing photos, with catchy titles and detailed descriptions to capture the attention of prospective buyers.
- Try to advertise a realistic price to attract buyers looking for good deals, especially in the current environment where consumers are significantly more price-sensitive.
- Be creative and look around your home for valuable items that you no longer need but might be useful to others.
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The biog
From: Ras Al Khaimah
Age: 50
Profession: Electronic engineer, worked with Etisalat for the past 20 years
Hobbies: 'Anything that involves exploration, hunting, fishing, mountaineering, the sea, hiking, scuba diving, and adventure sports'
Favourite quote: 'Life is so simple, enjoy it'
The five pillars of Islam
Asian Cup 2019
Quarter-final
UAE v Australia, Friday, 8pm, Hazza bin Zayed Stadium, Al Ain
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
Results
5.30pm: Maiden (TB) Dh82,500 (Dirt) 1,600m, Winner: Panadol, Mickael Barzalona (jockey), Salem bin Ghadayer (trainer)
6.05pm: Maiden (TB) Dh82,500 (Turf) 1,400m, Winner: Mayehaab, Adrie de Vries, Fawzi Nass
6.40pm: Handicap (TB) Dh85,000 (D) 1,600m, Winner: Monoski, Mickael Barzalona, Salem bin Ghadayer
7.15pm: Handicap (TB) Dh102,500 (T) 1,800m, Winner: Eastern World, Royston Ffrench, Charlie Appleby
7.50pm: Handicap (TB) Dh92,500 (D) 1,200m, Winner: Madkal, Adrie de Vries, Fawzi Nass
8.25pm: Handicap (TB) Dh92,500 (T) 1,200m, Winner: Taneen, Dane O’Neill, Musabah Al Muhairi
Cultural fiesta
What: The Al Burda Festival
When: November 14 (from 10am)
Where: Warehouse421, Abu Dhabi
The Al Burda Festival is a celebration of Islamic art and culture, featuring talks, performances and exhibitions. Organised by the Ministry of Culture and Knowledge Development, this one-day event opens with a session on the future of Islamic art. With this in mind, it is followed by a number of workshops and “masterclass” sessions in everything from calligraphy and typography to geometry and the origins of Islamic design. There will also be discussions on subjects including ‘Who is the Audience for Islamic Art?’ and ‘New Markets for Islamic Design.’ A live performance from Kuwaiti guitarist Yousif Yaseen should be one of the highlights of the day.
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Mohammed bin Zayed Majlis