As full-fledged local self-government system has been executed, anxiety for disparity in economic conditions among regions was raised. Korean government, thus, has performed various policies and programs for balanced regional development. Within these contexts, National Balanced Development Special Account has been introduced which performed 6.6 trillion won in 2007 and is continuously working on infrastructure investment for regional development. Ministry of Planning and Budget also announced that it would consider major projects’ effects on the balance of regional development.

However, not all the regional investments have brought the same economic effects on regions as expected, rather different results have been produced by investment targets. Therefore, in order to evaluate the expenditure programs in balanced regional development, a multiplier effect analysis based on accurate framework of economic flows by region is required. For this reason, in this research, Regional Social Account Matrix is established related to regional productivity, income, consumption data from all over the country.

The Regional Social Account Matrix Year 2003, built up based on regional input and output table in 2003 reported by the Bank of Korea, divides the state into 6 regions, and 34 production sectors. It is consisted of production activities, production factors, and institutional accounts based on combined data including national income account. This Regional Social Account Matrix will be essentially used in analyzing the effects of integrated regional development, which is one of the current controversial issues.