President Lee Jae Myung called on his government to institutionalize policies that give preference to regions outside the capital area throughout state administration to achieve a paradigm shift in growth driven by regional development.

Presiding over a meeting with his aides Thursday, Lee said a balanced use of land is the most definite path to spur economic growth and that decentralizing the capital region would also fundamentally resolve its soaring housing prices.

Lee urged his aides to expedite modification of transportation infrastructure and relocation of public institutions outside the capital area based on the principle of offering more state support for regions farther away.

He also called on his administration to provide special incentives to businesses in a bid to encourage more regional investment.

Lee stressed that the relocation of public institutions must breathe new life into regional economies.