This paper studied balanced regional development focused on employment in Korea, by analyzing regional disparity between regional and industrial employment. A Gini-coefficient decomposition method and Panel Granger causality test were conducted, using raw data of the Census on Establishments reported by the Statistics Korea. The regional and industrial disparity of employment, based on the Gini-coefficient decomposition method, have increased by year. However, the growth rates of disparity are on the decrease. Most of employment disparity occurred from regional disparity between SMA (Seoul Metropolitan Area) and Non-SMA. Industrial disparity are occurred mainly by the service industry. The amount of contribution to the whole disparity of inter/intra regional employment was differed by each industrial sector. Also the causal relationship between employment growth of manufacture and that of service industry was analyzed by Panel Granger causality test. In national level, the employment growth in manufacture industry has conduced that in service industry. On the other hand, in the Non-SMA, only the employment growth in manufacture industry has augmented that in service industry. In conclusion, to reduce employment disparity, the strategy for balanced regional development should be emphasized. Different strategies are needed across regions and industries. Basically creating new job in the Non-SMA is inevitable. In view of stable employment, manufacture industry is more desirable rather than service industry.

This paper analyzed the disparity and causality between regional and industrial employment to invigorate balanced regional development of employment-side. This paper conducted of a Gini-coefficient decomposition method and Panel Granger causality test using the row-data of the Census on Establishments that were obtained from Statistics Korea. As a result of Gini-coefficient decomposition, although the growth rates of Gini-coefficient of employment are on the decrease, Gini-coefficient still increase in Korea. Most of employment disparity occurred from regional disparity between SMA (Seoul Metropolitan Area) and Non-SMA and from industrial disparity within the service industry. The amount of contribution to total disparity of inter/intra regional on employment were differed by industry. The causal relationship between an employment growths in the manufacture industry and an employment growths in the service industry were analyzed using a Panel Granger causality test. As a result, mutually causality were estimated in the analysis of national dimension. However, when limited region to the Non-SMA, only the employment growth in manufacture industry increases the employment growth in service industry. In order to reduce an employment disparity, strategies for resolving the regional disparity by industry are needed. For regional employment growths, strategies for the service industry in the SMA, and for the manufacture industry in the Non-SMA are needed.