Concentration of population and business in Seoul Metropolitan Area and ensuing imbalance across different regions raise serious obstacles to sustainable national development. Against the backdrop, more fundamental national development policies to ensure balance across different regions and “Multifunctional Administrative City” emerged as the most effective solution to sagging national competitiveness of Korea attributable to rising social and economic costs and deepening gap between regions in the aftermath of excessive concentration of people and wealth around Seoul.

KLC plans to construct “Multifunctional Administrative City” as a self-containing city of administrative functions to ensure more balanced national development, environment-friendly city featuring harmony between man and environment, a safe and convenient city built on respect for human being and a city of culture and cutting-edge IT technology.

Multifunctional Administrative City Construction Project which is the sequel to the new administrative capital is one of the key government initiatives to ensure more balanced national development in the 21st century along with relocation of public organizations to provincial areas, decentralization and Seoul Metropolitan Area development strategy.
Against the backdrop, the National Assembly also agreed to building a self-containing multifunctional administrative city in Yeongi/Gongju area .
The government established the Multifunctional Administrative City Construction Authority in January, 2006 , designated a site covering 22.12 million pyong in Yeongi/Gongju as the construction spot and selected KLC as the project owner.
The Multifunctional Administrative City Construction Authority established a transitional plan to move government ministries in phases in October, 2005 and organized an international contest on ideas applicable to the construction of multifunctional administrative city to collect a variety of creative inputs.
The authority then commenced land acquisition in December, 2005 and conducted property survey, public information disclosure and land appraisal. To kick off the construction of multifunctional administrative city after such preparatory arrangements, KLC has the following implementation plan.