In this article, I examine how the spatiality of the state and its associated territorial politics can have an impact on the spatial and scalar restructuring of the state. Building on recent theoretical developments on state space, this article examines how territorial politics can be organized under the particular spatiality of the state, and how that particular form of territorial politics can have an impact on the future restructuring of state spatiality. In particular, by focusing on the spatial processes of state restructuring in South Korea, I will attempt to conceptualize the ways in which the spatiality of top‐down regulatory processes led by the state can generate inter‐scalar tensions between the national and the local; this, in turn, results in the downward rescaling of the state. More specifically, the empirical focus is on how the processes of decentralization in South Korea have been shaped by the influences of various kinds of territorial politics (for example, inter‐scalar tensions between the national and the local, territorialized party politics, etc.) that occur within the context of uneven regional development stemming from the spatial selectivity of state regulation.