South Korea Smart Cities Market Synopsis

South Korea Smart Cities are Expected to Grow at a Significant Growth Rate, and the Forecast Period is 2023-2030, Considering the Base Year as 2022.

South Korea has been actively engaged in the development of smart cities as part of the plan to promote the construction of a smart city. These smart cities use technology and data to improve urban life, sustainability, and efficiency. With a strong digital infrastructure and widespread access to technology, South Korea has built a strong foundation for smart city initiatives.

• Internet of Things (IoT) technology plays a vital role in connecting devices and sensors to collect and analyze data, enabling data-driven decision-making. Smart cities focus on sustainability and adopt environmentally friendly technologies such as renewable energy sources, green buildings, and smart grids. In the transportation sector, intelligent transportation systems are used to eliminate traffic congestion and promote environmentally friendly mobility solutions. Resident safety is a priority with smart surveillance, facial recognition, and emergency response systems.
• Data analytics is key if you want to gain insights into urban patterns, citizen behavior, and resource usage that will enable better allocation of resources and delivery of public services. Cooperation with the private sector is encouraged to promote innovation and investment in smart city projects by promoting public-private partnerships.
• Smart city test cases and demonstration projects allow the evaluation and demonstration of different technologies before expansion. The development of smart cities is a continuous process, so the latest innovations and developments must be sourced from newer sources.              

Top Key Players:

"Samsung SDS (Seoul), SK Telecom (Seoul), LG CNS (Seoul), KT Corporation (Seongnam), Hyundai E&C (Seoul), POSCO ICT (Seoul), CJ OliveNetworks (Seoul), GS Engineering & Construction (Seoul), Hanwha S&C (Seoul), Lotte Data Communication Company (Seoul), Naver Corporation (Seongnam), KISTI (Korea Institute of Science and Technology Information) (Daejeon), Kolon Global Corporation (Seoul), KTNET (Seoul), Namyang Novitech (Seoul), Hancom MDS (Seoul), Shinhan Data Systems (Seoul), KOSA (Korea Smart Authentication Corporation) (Seoul), Daou Technology Inc. (Seoul), IS Dongseo (Seoul), and Other Major Players"

South Korea Smart Cities Market Trend Analysis

Government Support and Policy Initiatives

• South Korea has been actively engaged in the development of smart cities as part of the plan to promote the construction of a smart city. These smart cities use technology and data to improve urban life, sustainability, and efficiency.
• With a strong digital infrastructure and widespread access to technology, South Korea has built a strong foundation for smart city initiatives. Internet of Things (IoT) technology plays a vital role in connecting devices and sensors to collect and analyze data, enabling data-driven decision-making.
• Smart cities focus on sustainability and adopt environmentally friendly technologies such as renewable energy sources, green buildings, and smart grids. In the transportation sector, intelligent transportation systems are used to eliminate traffic congestion and promote environmentally friendly mobility solutions. Resident safety is a priority with smart surveillance, facial recognition, and emergency response systems.
• Data analytics is key if you want to gain insights into urban patterns, citizen behavior, and resource usage that will enable better allocation of resources and delivery of public services. Cooperation with the private sector is encouraged to promote innovation and investment in smart city projects by promoting public-private partnerships.

Enhanced Citizen Engagement and Quality of Life

• Greater citizen involvement and better quality of life are the two main aspects that smart cities in South Korea want to achieve by integrating advanced technologies and data solutions. Those goals focus on putting citizens at the center of city planning and management and using technology to create more connected, responsive, and livable communities.
• Smart cities use digital platforms, mobile applications, and IoT devices to provide citizens with real-time information about various aspects of city life. Citizens can access information about public transportation schedules, traffic conditions, air quality, weather reports, and more.
• Access to this information enables citizens to make informed decisions and plan their daily activities more effectively. South Korea's smart cities aim to move towards citizen-centric governance models. Digital platforms and e-government services allow citizens to communicate with municipalities and participate in decision-making processes.
• Through online portals, residents can talk about their concerns, report problems, and give feedback on city services, which enables a more responsive and citizen-oriented administration. Intelligent transport systems play a key role in increasing the mobility of citizens and reducing the stress of commuting. Real-time traffic control, smart parking solutions, and integrated public transport systems ensure smoother and more efficient mobility for citizens, which shortens travel times and reduces traffic congestion.

According to the Graph, the revenue growth in the Smart Finance Market in South Korea, as indicated by the increasing values from 2019 to 2022, reflects a positive trend in the country's smart city market. Smart finance solutions play a vital role in smart cities, as they enable seamless and efficient financial transactions and services for residents and businesses.

As smart cities strive for technological advancement and enhanced urban living experiences, smart finance solutions have emerged as a critical enabler. By providing convenient and secure financial services to citizens, businesses, and the government, smart finance solutions contribute to the overall progress and success of South Korea's smart city market.

South Korea Smart Cities Market Segment Analysis

Smart Cities market segments cover the Solution and Service, Component, Level, and End-user. By Solution and Service, the Smart Building segment is Anticipated to Dominate the Market Over the Forecast Period.

• Smart buildings use advanced automation and IoT technologies to optimize energy use. They use smart lighting systems, automated air conditioners, and energy management solutions to reduce energy consumption and promote sustainability. In a country like South Korea that is actively pursuing green initiatives, the emphasis on energy-efficient buildings is in line with government goals and regulations.
• Smart buildings can lead to cost savings by reducing energy waste and optimizing maintenance activities. Automated systems can monitor and manage construction operations in real time, identify potential problems, and optimize resource allocation. This increase in efficiency is attractive to both the private and public sectors, making smart buildings an attractive investment.
• Smart buildings prioritize the comfort and experience of residents. Personal environment settings, intuitive controls, and smart amenities improve the quality of life of building users. Whether it is commercial, residential, or public buildings, the focus on creating user-centric spaces is increasing the demand for smart building solutions.

South Korea Smart Cities Market Country Analysis

• Seoul is the economic heart of South Korea. It serves as the financial center of the country and contains the headquarters of major banks, financial institutions, and companies. Many international companies have South Korean offices in Seoul, which greatly increases the economic influence of the city.
• Example: Samsung Electronics, one of the largest technology companies in the world, is headquartered in Seoul. Its global success and influence on the technology industry played a crucial role in raising Seoul's economic status. Seoul is the most populous city in South Korea, with a population density that exceeds that of any other city in the country. Its large population contributes to a strong labor market and creates a vibrant consumer base for businesses.
• Seoul has developed infrastructure and efficient transportation networks, including an extensive subway system and high-speed rail. These infrastructure assets allow seamless connectivity and access to other areas, making them attractive to businesses and residents.
• Incheon International Airport, one of the busiest airports in the world, is located near Seoul. This airport is a major traffic hub that facilitates international trade and travel connections.

COVID-19 Impact Analysis on the South Korean Smart Cities Market

• The Covid-19 pandemic has accelerated the adoption of digital technology in various sectors, including smart cities. With the implementation of the lockdown and social distancing, the demand for remote work, online services, and contactless solutions has increased. South Korea's smart cities are likely to focus more on digital infrastructure, such as IoT devices for data collection, cloud services for data storage and analysis, and advanced communication networks to support the growing need for connectivity.
• The pandemic may have delayed or reprioritized ongoing or planned smart city projects in South Korea. Financial uncertainty and the reallocation of resources to meet immediate needs related to the pandemic may have affected the timelines and budgets of some initiatives. Covid-19 has brought health and public safety to the forefront of urban planning. South Korea's smart cities are likely to emphasize the integration of health monitoring systems, contact-tracing technologies, and data analytics to manage the public health impact of the pandemic.
• The pandemic has highlighted the importance of e-government and digital services. Smart cities may have invested more in the development of digital platforms to enable citizens to remotely access public services, including health consultations, administrative procedures, and public information dissemination.

Top Key Players Covered in the South Korean Smart Cities Market

• Samsung SDS (Seoul)
• SK Telecom (Seoul)
• LG CNS (Seoul)
• KT Corporation (Seongnam)
• Hyundai E&C (Seoul)
• POSCO ICT (Seoul)
• CJ OliveNetworks (Seoul)
• GS Engineering & Construction (Seoul)
• Hanwha S&C (Seoul)
• Lotte Data Communication Company (Seoul)
• Naver Corporation (Seongnam)
• KISTI (Korea Institute of Science and Technology Information) (Daejeon)
• Kolon Global Corporation (Seoul)
• KTNET (Seoul)
• Namyang Novitech (Seoul)
• Hancom MDS (Seoul)
• Shinhan Data Systems (Seoul)
• KOSA (Korea Smart Authentication Corporation) (Seoul)
• Daou Technology Inc. (Seoul)
• IS Dongseo (Seoul), and Other Major Players

Key Industry Developments in the South Korea Smart Cities Market

In June 2023, Samsung announced its ViewFinity S9 external monitor is available to pre-order in South Korea, and will be launched in the country on July 3. The monitor is priced at 1.7 million won, which is equivalent to approximately USD 1,300.

In March 2023, SK Telecom, one of South Korea’s biggest carriers, planned to fully launch its artificial intelligence chatbot but is looking at a very different product from ChatGPT, an executive working on the project told CNBC.