The purposes of the study are to analyze industrial competitiveness across eight regions in South Korea by using Location Quotient (LQ) index, an indicator for competitiveness analysis, of the knowledge information industry, to select an optimal region with dominant industrial competitiveness, and to suggest strategies to promote knowledge information industries and plans to balance regional development. For these goals, LQ Index was calculated by analyzing business characteristics, such as the number of business, number of workers, and total revenues. As a result, LQ index was the highest in Kyunggi-Incheon region among the metropolitan area, implying high concentration of knowledge information industry in the metropolitan region and noticeable unbalanced development between regions. These analyses showed an indirect correlation between competitiveness and science technology. The difference between 1.06 and 1.1 in Chungcheong area was that the former, or 1.06, was the LQ index with including Seoul, while the latter, or 1.1, was the index without including Seoul. In addition, from the perspective of selecting a comprehensive location for balanced regional development, the Dongnam region has the greatest potential to raise industrial competitiveness and development possibility according to the LQ index analysis. Also the region that needs to strengthen and encourage its competitiveness is Daekyung region.