The purpose of this study is to identify if the regulation policies on Seoul Metropolitan Area are effective in promoting regional economic growth using a Stochastic Frontier Analysis. The method can calibrate an economic efficiency of resource allocation under a few restriction on population growth, industrial location and land uses. The determinant factors for the efficiency include the population, the size of industrial lots, the number of large manufacturing firms, and the change rate of land price. Ceteris paribus, the absolute increase of population and the size of industrial areas could result in the inefficiency of the resource allocation. This paper argues thar the fragmented land development for manufacturing firms needs to be revised into an integrated approach with de-regulations on economic activities of large firms. In addition, the land price stabilization would contribute to an optimization of the resource allocation in Seoul Metropolitan Area.