This research focuses on the need for South and North Korea and Russia to actively promote regional industrial development policies in the Far East area. From this perspective, the purpose of this study is to suggest the direction and measures of industrial cooperation between the three countries through connecting their regional development policies with industrial policies. To realize this goal, this research analyzes and assesses the current situation of regional industrial development policies by each country, and suggests measures for mutual connection between their regional industrial development policies, also proposing the future direction of this triangular cooperation.
   The focus of this discussion is to explore promising approaches to constructing an industrial cluster in Northeast Asia based on the regional development policies of each nation. In this sense, preparation for triangular linkage is a basic task for constructing the industrial cluster. In particular, triangular cooperation could support North Korea’s economic development, and also secure the effectiveness of Russia’s Far East policies and South Korea’s industrial competitiveness in the Northeast part of North Korea.
   The necessity of triangular connection in regional industrial development policies can be found in the economic, societal and policy situations in the two Koreas and Russia.
   South Korea has continuously promoted regional industrial development policy for balanced national development since the 1990s. While there has been criticism that Korea’s policies lack consistency, the goal of balanced national development has been maintained. In particular, the Moon administration has driven forward measures to promote regional industries based on the characteristics and policies of each region. The seven Free Economic Zones (FEZs) designated nationwide are at the center of this policy. However, the FEZs in Korea have shown their limitations in various aspects, and the manufacturing industry in Korea, especially small- and medium-sized manufacturing enterprises located in local areas, are facing difficulties because of the Korean society’s structural problems and slowdown in the economy. In this situation, Korea’s FEZs and regional authorities are actively seeking for ways to increase economic cooperation with North Korea and secure new growth engines.
   The Russian Far East has long been considered less developed in economic terms compared to the central region. Looking to resolve this situation, the Russian government has been pushing for integrated economic development in Northeast Asia by developing the manufacturing sector in the Far East since 2010. To attract investment in the manufacturing industries in the Far East, the Territories of Advanced Social and Economic Development and the Free Port of Vladivostok were introduced, these being created mainly for the provision of tax benefits. Among the Territories of Advanced Social and Economic Development, the Nadjejinskaya Territory was created near Vladivostok, which shows the highest corporate activity among the 18 zones. The Khabarovsk Territory near the city of Khabarovsk is also highly populated by logistics and manufacturing companies due to its excellent location. However, since the benefits of these Territories of Advanced Social and Economic Development are mainly focused on providing tax benefits, individual companies must consider the various surroundings and conditions before deciding to enter the Territories. Among the Territories of Advanced Social and Economic Development, Bolshoi Camen is built around the shipbuilding industry. Its Zvezda shipyard is the largest in the Far East, and shows great promise for future cooperation. Russia is fostering the shipbuilding industry as an important national task and actively working with foreign companies to strengthen the competitiveness of its industries. As such, pushing for inter-Korean and Russian industrial cooperation around the Far East is meaningful in that it promotes the "new Northeast Asian value chain" for South Korea. While inter-Korean and Russian industrial cooperation cannot completely replace the existing Korea-China value chains concentrated in the manufacturing sector, this new value chain is important in that it allows South Korea diversify its overseas manufacturing base, which is currently dependent on China. In addition, if trilateral cooperation on the development and utilization of the Russian port of Zarubino is carried out step by step, it will lead to changes in the transport operation system in Northeast Asia.
   In North Korea, the policy goal in the Kim Jong-un era has been set on economic construction and improvement of the people's living conditions. Improving people's lives is, in particular, closely related to development of the light industry sector, which in turn is linked with the local industry due to the industrial structure of North Korea. Accordingly, this study focuses on trilateral cooperation projects within the Rajin and Chongjin economic development zones in North Korea. Our results show Chongjin has recently been in high demand for fisheries and shipbuilding, and the Rason Special Economic Zone (SEZ) has achieved a considerable level of openness to Chinese companies since beginning as the first SEZ in North Korea. Through its past trade routes with South Korea, it is leading the garment manufacturing industry in North Korea. Chongjin is a promising area to conduct triangular cooperation between North and South Korea, based on North Korea's cheap labor force, South Korea's technology and capital, and Russia's energy resources.
   This research focuses on suggesting the direction or model of cooperation rather than exploring detailed policy tools. This is mainly because the external situation does not allow detailed discussion. However, this research also strives to convey the very practical message that exploring a direction towards industrial cooperation is necessary in order to prepare for the situation when external restrictions are all lifted.
   In this sense, this research suggests policy implications regarding triangular industrial cooperation as follows: firstly, the current model of triangular industrial cooperation needs to incorporate plans to construct an industrial cluster linking South Korea, Rajin and Chongjin in North Korea, and Russia’s Far East together; secondly, such projects need to actively make use of North Korea's industrial development zones in order to support North Korea’s policies; and lastly, detailed policy measures should be prepared in various areas such as market support, production support and strengthening policy capacity.