KOREA - SMART CITIES MARKET REPORT

James
Sep 6, 2017
8 min read

KOREA - SMART CITIES MARKET REPORT

By

Doug Jacobson Commercial Officer U.S. Commercial Service Seoul

Jun. 2017

In August 2016, the South Korean Government selected smart city as one of its nine national strategic projects to embrace as a future economic growth engine and decided to inject a total of USD 200 million to 290 million (KRW 230 billion to 330 billion) in public and private funds by 2021 for research and development (R&D). In 2017 alone, the Ministry of Land, Infrastructure & Transport (MOLIT) will commit USD 21 million (KRW 23.5 billion) for smart city-related R&D. South Korea is synonymous with information and communications technology so it is not surprising that the country would leverage its IT capabilities and infrastructure to expand into the smart city area. South Korea is arguably the world leader in internet connectivity, having the world’s fastest average internet connection speed. As of the 1st quarter of 2017, up to 97percent of South Korea’s population had broadband internet access.

The South Korean government’s “K-Smart City” initiative is focused on exporting its smart city model to the Middle East, Asia and South America where there is increased attention to urban development. For example, South Korea announced in August 2016 its first smart city export to Kuwait and initiated the project in January 2017. The two countries signed a memorandum of understanding to cooperate on the development of South Saad Abdullah New City which will feature 40,000 homes and various industrial and commercial facilities. The cost of the project is estimated at USD 4 billion. In May 2016, South Korea also signed an MOU with the government of Sri Lanka to participate in a USD 17 billion urban development project that will create a new community in the capital of Colombo and its surrounding areas. Under the terms of the MOU, South Korean companies will provide expertise in smart devices and services such as intelligent transportation systems, smart water management and smart resources recycling. In conjunction with this South Korean smart city export model, there may be opportunities for U.S. firms to supply unique technologies. The smart city concept is not new to South Korea. For the past decade, the government has transformed Songdo, located 35 miles West of Seoul, into a world class ubiquitous city (U-City). With the advent of the smartphone and a 4G mobile network, along with a desire for better sustainability, the concept of U-City transformed into smart city. While the U-City focused on operator friendly services, such as smart building control system, the evolved K-Smart City focuses on user-friendly services accessed through smart devices. South Korea was one of 18 countries that participated in the Global City Teams Challenge 2016 (GCTC) and presented its four smart cities projects.

Busan’s Safe School Zone Project.
Daegu’s IoT-based Healthcare Project.
Suwon’s Smart Energy Management System for a Smart, Green City.
The national-level “Smart Car-Talk” project for driver convenience and vehicle management

History of Ubiquitous City (U-City) Initiatives in South Korea Since 2008, several major cities and provincial governments have initiated smart city related test beds and sector-related projects in South Korea. Smart city projects are underway in Seoul, Busan, Daegu, and Pyeongchang. In the case of Seoul, media poles in Gangnam Station and real time bus information services at bus stops are the most commonly seen example. Also, Seoul City launched an application called ’mVoting’ to allow citizens to vote through their cell phones. Moreover, Seoul Grandpark utilizes IoT technology to enhance its own mobile application. Through beacon connection, visitors can tour the grounds independently using a unique app that also provides explanations about animals they are viewing. Status of Major Smart Cities

Songdo City Songdo is the benchmark for other smart cities in South Korea. It utilizes an integrated operations center as a backbone for services provided to the public in five key areas - transportation, security control, environment, facilities management, and urban governance services. The city contains a comprehensive Bus Rapid Transit (BRT) system, unmanned camera to monitor for parking violations, crime prevention CCTVs, and other remote surveillance cameras that monitor traffic and road conditions. Seoul Seoul is the capital city and the country's largest metropolis with a population of over 10 million people. The capital which includes the surrounding Incheon metropolis and Gyeonggi Province is the world's second largest metropolitan area with over 25.6 million people. Since 2003, the city has installed fibre-optic cables along the subway tunnels and established an administrative optical network called "e-Seoul Net" and a "u-Seoul Net" providing citizens with free Wi-Fi service and full access to public web sites. The city also plans to improve its emergency medical and general information center “120 Dasan Call Center” for hearing impaired, low income, and elderly citizens though smart devices. The city will also enable the metro government to handle large volumes of data generated from smart devices and the city’s 30,000 CCTVs. The city plans to develop 10 Smart Work Centers for government employees, allowing them to work closer to their homes. Employees will have access to sophisticated groupware and conferencing systems. Other notable initiatives include: community mapping using geographical-information system; developing city social networks allowing citizens to raise issues and concerns regarding their community; smart metering project providing building owners and operators with real-time reports on energy usage in monetary units; u-Seoul Safety Service; and, state-of-the-art bus stop stations. Daegu Daegu City, located 203 miles south of Seoul, is becoming one of the world’s first IoT based city. SK Telecom, Samsung and other South Korean ICT firms have already implemented testbeds in the Daegu-Gyeongbuk Free Economic Zone (DGFEZ). The city hopes to leverage this smart city platform to generate and support venture firms in the IoT space. With an automated underground water system, Daegu is improving efficiency through real time water quality checks and enhanced water leakage and water flow rates. Daegu is also pioneering digital heath care and smart vehicle solutions. Busan The Haeundae Centum City area in Busan, located at south east corner of the peninsula about 270 miles south from Seoul, is a Virtual Reality (VR) smart city testbed for transportation and traffic, energy, safety, and lifestyle technologies. The city boasts the following smart capabilities: Transportation and traffic

Smart parking: real time parking lot vacant space notification and automatic billing system through smart phone application.
Smart cross walk: smart bollard and safety fences that alert stop line violation and jay walking in elementary school zones.
Smart traffic control management systems: real time traffic notification, especially for the intersection area, through smart phone application and Variable Message Sign (VMS) to provide an optimal traffic control system for each area.

Energy

Smart street lamp: CCTV and WiFi embedded energy conservation street lamps for energy conservation and crime prevention.
Smart building energy conservation system: energy monitoring throughout building and remote control for energy conservation.

Safety

Missing child prevention system: GPS embedded safety tag and beacon that alert parents when children go out of a designated area.
Drone based maritime safety system: automatic accident sensor that alerts and provides a lifeboat.
Context-aware evacuation alert system: audio guidance for optimal clearway and behavior in case of fire.
Subway smart safety platform: image and audio sensors that detect fire and gas leaks.

Lifestyle

Small and medium- sized enterprise marketing: beacon based low cost high efficiency marketing.
Pedestrian reactionary road sign: digital signal that guides people to different destinations and revolving signals that provide customized navigation based on direction.
IoT based fine mist spray service: spray service for air circulation inducement, and temperature and humidity maintenance.
Context-aware smart home service: synchronized smart phones and TVs that alert users to surrounding situations (crime, natural disaster, environment, and energy).

Pyeongchang

The South Korean government is investing in the most advanced information and communications technology in preparation for the 2018 Pyeongchang Winter Olympics taking place in Gangwon province (136 miles east of Seoul). In collaboration with the Korea Telecom Corporation, the government is preparing to perform virtual reality experience services and advanced broadcasting technologies for the Olympics. Through this system the Olympic torch relay, for example, will be demonstrated through a VR Walkthrough system, which delivers three-dimensional views and allows the VR tracking device users to experience a VR space and touch virtual objects. Also, the Olympics will be broadcasted to audiences via interactive time slice, sync view, 360-degree VR live, and omni point view, using 5G network services. So far, the government is pushing ahead the K-ICT Olympic vision by establishing an IoT emergency support system. In addition, it is trying to create a smart healthcare platform by connecting the big data platform in Pyeongchang with those in nearby areas. Paju

Paju U-City, located 30 miles north of Seoul, is becoming a Smart Water City, coined “K-Water,” that utilizes cutting-edge technology to manage the entire supply chain from ground water to tap water. By implementing this system to residential apartment built by a government corporation, K-Water is planning on constructing water storage tank water quality sensor and smart metering system that remotely reads water usage of each household. South Korea’s Core Areas of Interest and Export Models

As part of South Korean Government’s emphasis on developing the country’s smart city capabilities, the Ministry of Land, Infrastructure and Transportation has been tasked with three core projects/tasks: 1. Advancing component technology through individual infrastructure links 2. Improving service quality through integration of the city’s big data 3. Collaborating through domestic R&D and export growth Export models are designed in five different models: 1) smart new town model, 2) new energy industry model, 3) eco-friendly smart water model, 4) smart transportation model, and 5) ICT solution model. In the case of smart new town model, LG CNS is developing “Smart Green Solution” for its “Smart Green City,” which is a futuristic city that improves quality of life through efficient and environmentally sustainable means. The Korean major players for smart city projects include LG CNS, Posco ICT, SK Telecom, and Samsung Electronics. Best Prospects for U.S Exporters:

Smart city design and consulting: Examples include IBM’s smarter city challenge for city of Cheongju, Jaeju, and Pyeongchang for smarter transportation strategies; and, CISCO’s partnership with Korea Telecom on “Smart Space Project”
Technical alliance for developing cybersecurity solutions: Encryption for network access, end-to-end point detection, intrusion prevention systems (IPS), firewalls, and smart device identification
Sensors: smart device identification
Energy: demand and response
Autonomous driving-related technology
Drones

Smart city events/activities:

Event: Smart Cities Innovation Summit Asia 2017 http://www.smartcityasia.net/2017/ Dates: September 6-8, 2017 Venue: Kintex, Goyang City, Korea Organizer: KINTEX, TechConnect Sponsor: Ministry of Science, ICT, and Future Planning, Ministry of the Interior, Ministry of Culture, Sports, and Tourism, Ministry of Trade, Industry and Energy, Ministry of Environment, Ministry of Land, Infrastructure and Transport, Seoul Metropolitan Government, GyeongGi-do, Goyang City, Korea Tourism Organization, Gyeonggi Tourism Organization, Gyeonggi Mice Bureau, Goyang Convention & Visitors Bureau (Goyang CVB), Korea Land and Housing Corporation (LH), National IT Industry Promotion Agency (NIPA), Korea Institute of Civil Engineering and Building Technology (KICT), World e-Governments Organization of Cites and Local Governments (WeGO), Korea Research Institute for Human Settlements (KRIHS) Event: IT Convergence Expo Korea (URL not yet available) Dates: August 23-25, 2017 Venue: Daegu Exhibition & Convention Center (EXCO), Daegu, Korea Organizer: EXCO, National IT Industry promotion Agency (NIPA), Etnews Host: Ministry of Science, ICT and Future Planning, Daegu Metropolitan City, Province of Gyeongsangbuk-do Partner: Korea Trade-Investment Promotion Agency (Kotra), Electronics and Telecommunications Research Institute (ETRI), Daegu Technopark Mobile Technology Convergence Center, Daegu Digital Industry Promotion Agency, Gyeongbuk SW Convergence Agency, Gumi Electronics & Information Technology Research Institute, Korea Industrial Complex Corp, Daily Healthcare Test-Bed Construction Agency, 3D Printing Industrial Association

Event: IoT Korea Exhibition & International Conference 2017 http://www.iotkorea.or.kr/ Dates: October 11-13, 2017 Venue: COEX Hall C, Seoul Korea Host: Ministry of Science, ICT, and Future Planning Organizer: Korea IoT Association