KR
IHS
SPA
CE
& E
NVI
RO
NM
EN
T
Bey
on
d H
abit
abili
ty:
Ko
rea'
s U
rban
Po
licy
Space & Environment is a quarterly magazine published by KRIHS. Its purpose is to introduce current issues on territorial planning in Korea and disseminate research achievements and international activities of KRIHS and other Korean institutes.
Contents
Korea’s Urban Planning Policy and Habitat III
Introduction: Korea’s Urban Planning Policy for Sustainable Development
Setting Legislative Framework for Urban Development and Economic Growth (1960s and 70s)
Improving Quality of Urban Spaces (1980s and 90s)
Sustainable Urban Development (Since 2000)
Lessons from Korea’s Urban Planning Policy
Challenges in Achieving Sustainable and Inclusive Economic Growth in Korean Cities
New Strategies for Urban Economic Growth: Sustainability and Inclusiveness
Challenges and Tasks for Urban Economic Development in Korea: Achieving Sustainability and Inclusiveness
Implications for Developing Countries: Building a Solid Foundation for Economic Development
Habitat III: Policy Direction and Challenges for Urban Inclusiveness
What Is Urban Inclusiveness per Habitat III?
Which Urban Issues Can be Addressed via Urban Inclusiveness?
Direction and Challenges for Korea’s Urban Policy
Overview of Smart City Development in Korea
Habitat III and Housing Pathways in Korea
Importance of Housing in Habitat III
Housing achievements in Korea after Habitat II
Remaining Issues and Lessons Learned
Changes in the Korean Public Transportation System: Achievements and Challenges
Public Transportation in 20th-century Korea
2004 Overhaul of Public Transportation System
Overhaul of Public Transportation System: Achievements and Future Tasks
S&
E 2016 V
ol. 67 S
pecial E
ditio
n Beyo
nd
Hab
itability: K
orea's U
rban
Po
licy
67S
pec
ial
Ed
itio
n
2016
. 10
Vo
l.
67 Special Edition 2016. 10
Vol.
KRIHS
SPACE & ENVIRONMENT
Beyond Habitability: Korea's Urban Policy
The Global Development Partnership Center (GDPC) was established in December 2010 as a consulting arm of
KRIHS to strengthen its global development cooperation endeavors. Through collaboration with the central
government, public corporations and universities in Korea, international development banks, and overseas
governments and research institutes, it has conducted development partnership activities, such as capacity
building programs, research and consultation for developing countries, and the Global Development Partnership
Forum for domestic companies.
KRIHS (Korea Research Institute for Human Settlements) was established in 1978 with a mission of creating a beautiful and pleasant living environment. To achieve the mission, KRIHS has been committed to enhancing the quality of life and well-being of the people in the nation with its spatial planning studies and policy suggestions.
Since its foundation, KRIHS has carried out a variety of studies on the efficient use, development, and conservation of territorial resources. Its research areas range from sustainable and balanced territorial development and conservation of the territory to the provision of housing and infrastructure.
KR
IHS
SPA
CE
& E
NVI
RO
NM
EN
T
Bey
on
d H
abit
abili
ty:
Ko
rea'
s U
rban
Po
licy
Space & Environment is a quarterly magazine published by KRIHS. Its purpose is to introduce current issues on territorial planning in Korea and disseminate research achievements and international activities of KRIHS and other Korean institutes.
Contents
Korea’s Urban Planning Policy and Habitat III
Introduction: Korea’s Urban Planning Policy for Sustainable Development
Setting Legislative Framework for Urban Development and Economic Growth (1960s and 70s)
Improving Quality of Urban Spaces (1980s and 90s)
Sustainable Urban Development (Since 2000)
Lessons from Korea’s Urban Planning Policy
Challenges in Achieving Sustainable and Inclusive Economic Growth in Korean Cities
New Strategies for Urban Economic Growth: Sustainability and Inclusiveness
Challenges and Tasks for Urban Economic Development in Korea: Achieving Sustainability and Inclusiveness
Implications for Developing Countries: Building a Solid Foundation for Economic Development
Habitat III: Policy Direction and Challenges for Urban Inclusiveness
What Is Urban Inclusiveness per Habitat III?
Which Urban Issues Can be Addressed via Urban Inclusiveness?
Direction and Challenges for Korea’s Urban Policy
Overview of Smart City Development in Korea
Habitat III and Housing Pathways in Korea
Importance of Housing in Habitat III
Housing achievements in Korea after Habitat II
Remaining Issues and Lessons Learned
Changes in the Korean Public Transportation System: Achievements and Challenges
Public Transportation in 20th-century Korea
2004 Overhaul of Public Transportation System
Overhaul of Public Transportation System: Achievements and Future Tasks
S&
E 2016 V
ol. 67 S
pecial E
ditio
n Beyo
nd
Hab
itability: K
orea's U
rban
Po
licy
67S
pec
ial
Ed
itio
n
2016
. 10
Vo
l.
67 Special Edition 2016. 10
Vol.
KRIHS
SPACE & ENVIRONMENT
Beyond Habitability: Korea's Urban Policy
The Global Development Partnership Center (GDPC) was established in December 2010 as a consulting arm of
KRIHS to strengthen its global development cooperation endeavors. Through collaboration with the central
government, public corporations and universities in Korea, international development banks, and overseas
governments and research institutes, it has conducted development partnership activities, such as capacity
building programs, research and consultation for developing countries, and the Global Development Partnership
Forum for domestic companies.
KRIHS (Korea Research Institute for Human Settlements) was established in 1978 with a mission of creating a beautiful and pleasant living environment. To achieve the mission, KRIHS has been committed to enhancing the quality of life and well-being of the people in the nation with its spatial planning studies and policy suggestions.
Since its foundation, KRIHS has carried out a variety of studies on the efficient use, development, and conservation of territorial resources. Its research areas range from sustainable and balanced territorial development and conservation of the territory to the provision of housing and infrastructure.
67Special Edition 2016. 10
Vol.
SPACE & ENVIRONMENT
Beyond Habitability: Korea's Urban Policy
Habitat III, held in Quito, Ecuador, is significant in
influencing the setting of the direction of urban and human
settlement policy despite the country’s economic level,
urbanization rate, and urban and housing problems. Twenty
years ago at Habitat II in Istanbul, an innovative idea of
housing rights was promoted, and since then, housing issues
have been brought up worldwide and numerous efforts have
been made to reach solutions to severe housing problems.
Over the next three decades, the global urban population
is expected to nearly double, and consequently, the human
settlement sector faces a number of problems and challenges.
In this respect, Korea has decades of experience tackling
and resolving problems through trial and error. Accordingly,
Korea is confident that its experience at the urban and human
settlement level is extremely significant to the world. So this is
the underlying motive to produce this Special Edition, namely
Korea’s policy responses toward national urban planning and
economy, housing, transportation and a smart city approach.
This edition will also include the results and issues from the
perspective of Habitat III.
Prologue
Korea is also preparing for a new challenge in line with
Habitat III’s mission and vision. We certainly hope to use our
experience and efforts to help countries and peoples suffering
from urbanization and urban problems, no matter how small
the contribution. With Korea’s territorial and urban planning
and development as the frontier, KRIHS, as a national think
tank, will continue assisting efforts toward better solutions for
urban development all over the world.
October, 2016 KRIHS
Contents
06Issue 01Korea’s Urban Planning Policy and Habitat III
18Issue 02Challenges in Achieving Sustainable and Inclusive Economic Growth in Korean Cities
28Issue 03
Habitat III: Policy Direction and Challenges for Urban Inclusiveness
36Issue 04
Overview of Smart City Development in Korea
44Issue 05
Habitat III and Housing Pathways in Korea
54Issue 06
Changes in the Korean Public Transportation System: Achievements and Challenges
1Issue
Beginning in the 1950s, Korea’s urban planning policy has gone from
supporting economic growth to improving the quality of urban spaces
and toward sustainable urban development in response to socio-
economic changes. Such policy over the years has made cities more
competitive and improved the urban living environment for residents,
thereby creating optimal conditions for sustainable growth.
Korea’s Urban Planning Policy and Habitat III
Kim, Tae-hwanSenior Research Fellow, KRIHS
Korea’s Urban Planning Policy and Habitat III 7
01. Introduction: Korea’s Urban Planning Policy for Sustainable Development
Korea has achieved rapid economic growth since the 1950s,
having transformed itself from a poor country with an agriculture-
based economy into one where the majority of its people live in
urban areas (Figure 1).
Figure 1. Urbanization rate and economic growth
Urbanization rate (%) GDP (in KRW billions)
80.0
70.0
60.0
50.0
40.0
1.200.000
1.000.000
800.000
600.000
400.000
200.000
01970 '74 '78 '82 '86 '90 '94 '98 '02 '06 2010
12.0
10.0
8.0
6.0
4.0
2.0
0
(%)
Real GDP growth
Urban population growth
'70~'75 '75~'80 '80~'85 '85~'90 '90~'95 '00~'05 '05~'10
Space & Environment Vol. 67 Beyond Habitability: Korea's Urban Policy 8
Over the course of this transformation, cities
have driven the nation’s economic growth. Korea’s
urban planning policy has evolved as a way to
manage this rapid urban growth, the pace of
which is unprecedented in human history.
In the 1960s, the Korean government utilized a
policy of state-led economic development that
lead to rapid urbanization. Thus urban policy
was closely linked with the national goal of
promoting economic growth. Acting in harmony
with economic policy, urban policy effectively supported rapid
industrialization.
In the process of their nation’s industrialization and urbanization,
Korea’s demographics shifted from a predominantly rural
population to one based mostly in cities, thus providing the
labor force necessary for industrialization. Urban planning
and development systems also functioned as major drivers of
industrial growth.
Additionally, the scope of Korea’s urban policy has expanded
to cover social problems such as poverty, shantytowns, traffic
congestion, pollution and shortage of livable housing. Korea’s
urban policy has ultimately made its cities more competitive and
improved the urban living environment for residents, thereby
creating optimal conditions for sustainable growth.
Urban planning and de-velopment systems also functioned as major driv-ers of industrial growth. Additionally, the scope of Korea’s urban policy has expanded to cover social problems such as pov-erty, shantytowns, traffic congestion, pollution and shortage of livable hous-ing.
Korea’s Urban Planning Policy and Habitat III 9
02. Setting Legislative Framework for Urban Development and Economic Growth (1960s and 70s)
In the 1960s, the Korean government placed the utmost priority
on economic growth and crafted its urban policy with this goal in
mind. First, the necessary legislative framework for modern urban
planning was formed to accommodate the growing population of
cities. Laws such as the Urban Planning Act (1962) and the
Building Act (1962) were passed, and regulations on urban land
use grew more systematic. To meet the rapidly rising demand for
housing, the Urban Readjustment Business Act (1966) was
enacted.
In the 1970s, the focus of the government’s
industrialization policy shifted toward the heavy
and chemical industries. The policy focused on the
construction of large-scale industrial sites and the
ensuing urban development around those sites,
leading to the creation of planned industrial cities,
or Korea’s first “new towns.” To manage them
effectively, the Industrial Site Development Promotion Act (1973)
was enacted and public organizations actively participated in the
urban development process.
Another major achievement in urban policy was the introduction
of greenbelts in ten major urban areas in response to the
concentration of the country’s population and industries in large
cities. The objective was to direct the progress of urban growth,
that is, to encourage cities to develop in a more manageable and
sustainable manner through better planning. This policy initiative
was conducive to forming a cleaner urban setting and also
protected the natural environment near cities.
The policy focused on the construction of large-scale industrial sites and the ensuing urban de-velopment around those sites, leading to the cre-ation of planned indus-trial cities, or Korea’s first “new towns.”
Space & Environment Vol. 67 Beyond Habitability: Korea's Urban Policy 10
03. Improving Quality of Urban Spaces (1980s and 90s)
In the 1980s and 90s, industrialization and urbanization in Korea
continued at an accelerated pace. The urbanization rate took a
huge leap from 28 percent in 1960 to 56.7 percent in 1980 and
79.6 percent in 2000 (Figure 2).
Unfortunately the nation’s progress along its path toward greater
urbanization led to a number of problems: a housing shortage,
substandard housing and inflated housing prices. These prompted
policymakers to focus on cooling the overheating of the housing
market and expanding the supply of decent and livable housing
units. Korea also faced increasing pressure to develop the outskirts
Figure 2. Urbanization rate and economic growth
Source: Se-hoon Park, Dong-ju Kim, Youn-hee Jeong, Geun-hyun Park, and Eun-young Lee. 2012. Demographic Change and Spatial Transformation in Korea: Recent Development and Policy Directions. Anyang: KRIHS. [in Korean]
90
80
70
60
50
40
30
20
10
0
25,000
20,000
15,000
10,000
5,000
0
1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010
Per capita GDP (in US$)
Urbanization rate
Korea’s Urban Planning Policy and Habitat III 11
of its cities, which led to the expansion of those cities. This then
caused problems including pollution in areas adjacent to cities,
damage to the natural landscape and shortage of infrastructure.
Beginning in the 1980s, the housing shortage was especially acute
in large cities and the government built new cities on the outskirts
of Seoul to increase the housing supply. Five large new cities
were built in areas adjacent to Seoul, resulting in a significantly
greater supply of housing units and stabilization of housing and
real estate prices. The Housing Site Development Promotion
Act, enacted in 1980, allowed the public sector to lead land
development projects systematically for a short time (Figure 3).
Rapid urbanization, however, also led to
a preponderance of large-scale settlements
(shantytowns) where impoverished economic
migrants lived illegally in unsafe and substandard
housing. To tackle this problem, cities introduced
“joint redevelopment projects” under the legislative
framework of Korea’s Urban Redevelopment Act.
The private sector led these projects, minimizing
the burden on the public sector, and utilized the
land of residents in target areas along with the
funding and knowhow of private construction
companies. The law allowed private companies
to purchase public land to carry out these projects, and created
incentives for doing so. The results included the building of
higher quality infrastructure such as decent housing, parks and
parking lots, and many of the illegal housing developments
disappeared. Yet the projects led to the displacement of residents
in such areas and thus gave rise to serious social issues.
To tackle this problem, cit-ies introduced “joint rede-velopment projects” under the legislative framework of Korea’s Urban Redevel-opment Act.The private sector led these projects, minimizingthe burden on the public sector, and utilized the-land of residents in tar-get areas along with the funding and knowhow of private construction com-panies.
Space & Environment Vol. 67 Beyond Habitability: Korea's Urban Policy 12
Figure 3. Location of first-and second-generation new cities near Seoul
First-generation new city Second-generation new city
Paju Unjeong
16.578,454Setptember 2006June 2009
Jungdong
5.5 41,400 Sanbon
4.2 42,000
Pyeongchon
4.2 42,000
Ilsan
15.769,000
Bundang
19.6 97,600
Gimpo Han River
11.759,844August 2008June 2011
Incheon Geomdan
18.192,0001H of 20132H of 2016
Hwaseong Dongtan 1
9 40,921 June 2004January 2007
Hwaseong Dongtan 2
24111,4132H of 20122H of 2014
Gwanggyo
11.331,000Sep 2008July 2011
Pyeongtaek Godeok International City
13.5 54,267 1H of 20132H of 2016
Yangju (Okjeong, Hwacheon)
11.458,975December 2011December 2013
Songpa Wirye
6.842,947June 20112H of 2013
Seoul Seongnam Pangyo
8.929,263March 2006December 2008
Region
Area (square kilometers)No. of homes built (housing unit)First sale of housing unitsFirst residents move-in
Korea’s Urban Planning Policy and Habitat III 13
04. Sustainable Urban Development (Since 2000)
By 2000, the national urbanization rate had exceeded 80 percent
and cities had reached the mature phase of urban development.
Whereas urban policy had focused on the quantitative expansion
of city infrastructure and main streets in the early stages of Korea’s
economic development, as opposed to improving quality of life in
urban areas, this was about to change. Higher income levels drove
higher demand for a more pleasant living environment and other
amenities in cities. Other major issues in urban policy included
heightened awareness of the need to preserve a cultural identity
and historical properties in cities and promote healthy
communities. In addition, policymakers began to pay more
attention to the widening gap between urban and rural residents
and considered the best method of stemming the decline of
smaller and midsize cities.
In the 2000s, balanced land development was
highlighted nationwide, and urban policy sought
to promote the growth of “hub cities” to assist
the development of smaller and midsize cities. A
major example was the establishment of a new
administrative city, Sejong, in central Korea,
where many government organizations eventually
relocated to from Seoul and vicinity. Ten “innovative cities” were
built as the new bases for public organizations, and “business
cities” were set up to attract more companies.
The focus of urban policy shifted toward enhancing livability
and quality of life, emphasizing preservation over development,
and turned away from development of the outskirts of cities
and toward the rehabilitation of downtown areas. Across the
nation, efforts were made to preserve the unique character of
smaller communities and make them stronger. In accordance
with the national development paradigm of “low-carbon, green
growth,” urban policy also sought to maximize the efficient use
In the 2000s, balanced land development was highlighted nationwide, and urban policy sought to promote the growth of “hub cities” to assist the development of smaller and midsize cities.
Space & Environment Vol. 67 Beyond Habitability: Korea's Urban Policy 14
of space in cities and modification of structures in consideration
of the environment. Land was designated for multiple uses, and
policymakers sought to cut greenhouse emissions through a
variety of initiatives like the development of renewable energy
sources, green construction methods and more eco-friendly
transportation systems.
Today, Korea’s cities face new challenges: stagnant economic
growth, rapidly aging populations and low birthrates. Moreover,
fears are growing over aging urban infrastructure and the decline
of smaller and midsize cities. In response, the government is
improving its urban policy systems in a variety of areas through
making cities more competitive, reorganizing urban infrastructure
and improving quality of life for residents. State support for
urban development initiatives pursued by local governments is
also rising, including sustainability evaluations and pilot projects
for urban rehabilitation (Figure 4).
Figure 4. Influence of paradigm changes on direction of urban
Paradigm Before 1960 1970 1980 1990 After 2000
Economic growth
・ Urban Planning Act
・ Industrial Site Development Promotion Act
・ Industrial cities
Social justice
・ Urban Readjustment Business Act
・ Housing Site Development Promotion Act
・ Housing Construction Promotion Act
・ Redevelopment, residential environment improvement projects
・ Act on Maintenance and Improvement of Urban Areas and Dwelling Conditions for Residents
・ Five new cities near Seoul
・ New Town Project
Environmental sustainability
・ Han River, Walking Street (planned street for walking tours)
・ Environment impact assessment
・ National Land Planning and Utilization Act
・ Cheonggye Stream, Livable City Project
Creation of sustainable cities
Korea’s Urban Planning Policy and Habitat III 15
05. Lessons from Korea’s Urban Planning Policy
Habitat III is the first comprehensive global campaign to
cooperate on sustainable development. The idea behind the “New
Urban Agenda,” which Habitat III has adopted, is to maximize
opportunities for urban development to advance sustainable
development. To this end, urban policy should proceed with
a view to “(achieving) social inclusion and ending poverty,”
“inclusive urban prosperity and opportunities for all,” and
“environmentally sustainable and resilient urban development.”
Over the past 60 years, urbanization in Korea has progressed in
tandem with rapid economic growth, and urban policy has always
sought to achieve the sort of sustainable urban development now
highlighted by Habitat III. The Korean government has made
various efforts to progress in this direction—for example, by
embracing urban development policy initiatives focusing on
achieving national economic growth, building urban
infrastructure and implementing measures for eco-friendly urban
development that improve quality of life (Figure 5).
The government has long considered urban
development as integral to raising national
competitiveness. Accordingly, it has pursued plans
for efficient urban development and strategies
to improve urban infrastructure and support
economic activities in cities. Other public sector
goals are to build a network of provincial cities
and promote cooperation in the development of
metropolitan cities.
As the majority of Koreans live in cities, the
government has taken on the challenges of raising
the quality of life in cities. As a result, the quality of life in urban
areas has steadily improved thanks to continued investment
in housing, water supply and sewerage, waste disposal and
For the sake of long-term and sustainable urban development, the government has sought to balance development and preservation and re-duce pollution resulting from urban development projects. It has also es-tablished an eco-friendly management system and is making efforts to tackle climate change by creat-ing green cities.
Space & Environment Vol. 67 Beyond Habitability: Korea's Urban Policy 16
Figure 5. Urban policies in response to socio-economic changes
Social and economic developmentUrbanization and policy
1st Five-year Economic Development Plan (1962–66)
Industrial cities: Ulsan(1962)and Pohang(1968)
Housing Construction Promotion Act(1972)
Act on Readjustment Planning for Seoul Metropolitan Area(1982)
First-generation new cities (1988)
Special Act on Balanced National De-velopmet, Sejong Administrative City Plan (2004)
Urban Regeneration Act (2013)
Establishment of innovative city criteria (2006)
National Land Planning and Utilization Act (2002)
Housing Site Development Promotion Act(1980)
Act on Maintenance and Improvement of Urban Ar-eas and Dwelling Conditions for Residents (2002)
Introduction of greenbelts (1971)
Urban Planning Act (1962)
Urbanization rate 40%(1970)
Launch of Gyeongbu Expressway (1971)
Korea’s exports reach US$10 billion (1977)
Announcement of national plan for heavy and chemical industries (1973)
Urbanization rate 70% (1988)1988 Seoul Summer Olympics
Per capita GDP reaches US$10,000 (1995)
Half of population lives in large cities (2010)
1960
1970
1980
1990
2000
2010
Fo
un
datio
n fo
r natio
nal
gro
wth
establish
edF
ocu
s on
balan
ced d
evelop
men
t an
d q
uality o
f lifeQ
uan
titative gro
wth
and
systematic ap
pro
ach
to u
rban
plan
nin
g
Housing supply ratio of 100 (2008)
Introduction of local autonomy system (2003)
Korea’s Urban Planning Policy and Habitat III 17
treatment, parks and greenbelts, public transportation, cultural
facilities and efficient urban management.
For the sake of long-term and sustainable urban development, the
government has sought to balance development and preservation
and reduce pollution resulting from urban development projects.
It has also established an eco-friendly management system and is
making efforts to tackle climate change by creating green cities.
Korea’s experience and knowhow in the urban development
process can provide valuable lessons for developing countries
undergoing rapid industrialization and urbanization as Korea
did in the past. To assist in the formulation of short- and long-
term urban development strategies in response to rapid urban
growth, Korea’s urban planning experience with respect to urban
development and land use should be shared with the world.
References
Kim, Tae-hwan, et al. 2015. Strategy and Challenges of Korea’s National Urban Policy. Anyang: KRIHS. [in Korean]
Korea Research Institute for Human Settlements. 2008. See Change (Sangjeonbyeokhae), 60-Year History of National Territory. Anyang: KRIHS. [in Korean]
Se-hoon Park, Dong-ju Kim, Youn-hee Jeong, Geun-hyun Park, and Eun-young Lee. 2012. Demographic Change and Spatial Transformation in Korea: Recent Development and Policy Directions. Anyang: KRIHS. [in Korean]
Cities need to establish creative urban environment for the sustain-
able growth, and to utilize a sharing-based urban regeneration model
for inclusive environment development.
Challenges in Achieving Sustainable and
Inclusive Economic Growth in Korean Cities
Issue2Kim, Eunnan
Research Fellow, [email protected]
Challenges in Achieving Sustainable and Inclusive Economic Growth in Korean Cities
19
01. New Strategies for Urban Economic Growth: Sustainability and Inclusiveness
Strategies for stimulating urban economic growth, a key part of
the United Nations Habitat III agenda, are necessary to ensure
that all urban residents share in a community’s prosperity by way
of sustainable and inclusive growth. The objective of urban
economic development over the next two decades is to provide
equal opportunities to access knowledge, technology and
education, so that urban residents from all walks of life can
improve their skills and obtain work both rewarding and well
paying. To this end, such growth strategies must pay more
attention to women, youth, people with disabilities, provincial
communities and those marginalized in society. They must
emphasize the need to recognize the economic contributions of
women, youth and the elderly and raise their participation in the
workforce. At the same time, creation of better job opportunities
is crucial in the creative culture, tourism, art and performance
fields as well as promotion of industrial diversification,
technological development and research innovation to enhance
productivity in high value-added business sectors.
Strategies for urban spatial development and
planning vehicles have important roles to play in
achieving sustainable and inclusive urban growth.
Key planning vehicles include transportation,
mobility, technology, communication networks
and infrastructure, whereas strategies for urban spatial
development are instrumental for upgrading urban settlements
and the planned expansion of cities. Other requirements include
better access to public spaces, renewable energy resources
and transportation infrastructure, public facilities and social
infrastructure. The value and utility of sharing-based urban
regeneration deserve attention, given the potential of this
Strateg ies for u rban spatial development and planning vehicles have important roles to play in achieving sustainable and inclusive urban growth.
Space & Environment Vol. 67 Beyond Habitability: Korea's Urban Policy 20
approach to alleviate urban problems such as the rise in single-
person households, shortage of affordable housing, high youth
unemployment and the decline of communities as more homes
and offices are left vacant.
In addition, building a governance system that enables wider
participation and partnerships is important. The role of
organizations at the national, regional and local levels should
be enhanced in a way to facilitate integration, collaboration
and coordination among the central government, regions and
stakeholders and to support regional economic development.
02. Challenges and Tasks for Urban Economic Development in Korea: Achieving Sustainability and Inclusiveness
1) Need for Creative Urban Environment Conducive to Sustainable Growth
Korea saw rapid job growth in creative services and the science
and technology sector between 2008 and 2012. The number of
companies in creative industries rose 24 percent over that time,
far faster than that in the IT sector (10.3 percent). Employment
in creative job categories expanded 9.1 percent, outpacing
overall employment growth (5.5 percent). Of those working
for creative businesses founded over the same period, creative
services accounted for the highest proportion with 28.4 percent.
Of creative jobs generated over the same period, science and
technology accounted for the highest proportion with 45.9
percent (Figure 1).
Challenges in Achieving Sustainable and Inclusive Economic Growth in Korean Cities
21
Figure 1. New jobs in creative industries & creative class occupations
Employment share of each industry in overall employment of start-ups in creative industries (2008-12)
Creative services
New media
Design
AudiovisualCultural assets
ICT device
ICT communication service
Visual artsPublishing and print-ing
Performance arts
Employment share of each occupation in all new creative (2008-12)
Artists & creative experts
Cultural administration experts
Core R&D workforce
Key professionals
Health, welfare and religion ex-perts
Education and administra-tion profession-als
Specialized public managers
Science, IT and engineering spe-cialists
Finance and management professionals
Space & Environment Vol. 67 Beyond Habitability: Korea's Urban Policy 22
According to a 2012 analysis of income levels and employment
rates in 163 municipalities and districts in Korea with a high
concentration of creative businesses, the high number of workers
in creative services and science and technology had a positive
impact on income levels as well as employment rates. That is,
cities with a greater number of jobs in the two sectors had higher
levels of income and employment. For every additional job
created in creative services, the average hourly wage increased
KRW 1,700 and employment rose 4.6 jobs per 10,000 people.
For every job added to the science and technology sector, the
average hourly wage increased KRW 1,500 and employment grew
1.5 jobs per 10,000 people (Figure 2).
The study also looked at Jeju Island and Paju,
Gyeonggi Province, both of which are magnets
for creative talent, to determine what urban
environmental factors might have been behind
such an impressive inflow of creative workers.
To attract and retain creative talent, the study
found that a city must be made attractive through
improving basic services and amenities, the job environment
and living conditions, as well as establish a creative ecosystem.
The cases of Jeju Island and Paju show that external inflow of
creative talent is the result of satisfaction with the city in such
aspects as climate and natural scenery, but also the availability
of basic amenities that meet the needs of creative professionals.
So the lesson here is to support the cultural environment
through tax incentives, overhauling the business infrastructure to
attract startups, renting out shared spaces to enhance incubator
programs for small businesses, and expanding public investment
in fundamental services such as public transportation and
healthcare.
To attract and retain cre-ative talent, the study found that a city must be made attractive through improving basic services and amenities, the job en-vironment and living con-ditions, as well as estab-lish a creative ecosystem.
Challenges in Achieving Sustainable and Inclusive Economic Growth in Korean Cities
23
Figure 2. Concentration of creative industries & creative class & urban economy: income & employment
Creative industries
Income effects
Income & employment
effects
Employment effects
New media
Cultural places
Audiovisual
ICT devices
Creative services
Creative class occupations
Income effects
Income & employment
effects
Employment effects
Education & administra-
tion professionals
Scien-tists,
IT and engineer-ing work-
ers
Core R&D workforce,
Public man-agement
professionals
Workplace
Creative class occupations
Income effects
Income & employment
effects
Employment effects
Education & administration professionals
Scientists, IT and
engineering workers
Health, welfare & religion experts
Finance & man-agement profes-sionals
Public management professionals, sci-
ence, IT & engineering spe-
cialists
Residence
Space & Environment Vol. 67 Beyond Habitability: Korea's Urban Policy 24
2) Potential of Inclusive Economic Development: Toward a Sharing-Based Urban Regeneration Model
The development of internet and mobile technologies has
made information more accessible and enables transactions
across shorter distances and timespans, thereby lowering entry
barriers to many business areas. The scope of spaces to be
shared encompasses accommodation spaces such as rooms and
houses; workspaces such as offices; and spaces for gatherings,
events, hobbies and cultural pastimes. Accordingly, space
sharing has the remarkable potential to alleviate urban problems
and regenerate cities. In Korea, various startups as well as the
public sector are recognizing the value of space sharing and its
commercial potential to resolve problems stemming from single-
person households, shortage of affordable housing, high youth
unemployment and the decline of communities as a result of an
excessive number of vacant homes and offices.
Table 1. The sharing of urban space & its effects
Type of sharing Characteristics Urban policy & urban regeneration effects
Accommodations ∙ Sharing of empty houses & rooms for accommodations (e.g., B&B services)
∙ Economic effects (income growth)
Housing ∙ People can share housing in response to rise in one-person households
∙ Stable housing & social safety net
Offices ∙ Use of offices & workshops as co-workspaces
∙ Start-up support, job creation
Parking ∙ Sharing of idle parking lots (shared parking)
∙ Can alleviate parking space shortage
Public facilities ∙ Opening & use of public facilities such as community centers & facili-ties for culture, training & education at night & on weekends
∙ Increased use of public services
Other idle spaces ∙ Sharing of various spaces such as kitchen gardens, churches, reading rooms, unused stores & workshops (creative sharing model)
∙ Expansion & use of shared space
Challenges in Achieving Sustainable and Inclusive Economic Growth in Korean Cities
25
The sharing of accommodations and workspaces
is instrumental to stimulation of economic vitality
in urban regeneration areas. Under the Tourism
Promotion Act, a minbak (bed and breakfast)
normally reserved exclusively for foreigners can
accommodate Korean tourists in urban revitalization areas. Even
amid an economic slowdown, the formation of slums can be
prevented by using empty offices as cooperation and start-up
spaces, encouraging people to share homes to alleviate an excessive
vacancy rate while also providing housing stability for low-income
families, and converting empty stores and offices into “pop-
up” stores. In urban regeneration areas struggling economically,
a sharing-economy model is suggested in connection with
zoning deregulation. Space-sharing activities such as shared
accommodations and work spaces are likely to run afoul of land-
use regulations under existing policy plans, but problems can be
minimized if space sharing is promoted in deregulated zones,
where the mixed use of land is allowed (Figure 3).
Figure 3. A sharing-based urban regeneration model
In urban regeneration areas struggling economi-cally, a sharing-economy model is suggested in connection with zoning deregulation.
∙ Prevention of slum formation despite economic slowdown∙ Income growth, startup support & job creation∙ Housing stability for young people & low-income households∙ Reduced number of vacant homes & regeneration of dilapidated housing
Empty stores →Pop-up stores
Empty offices →co-working spaces →Startup support
spaces
Minimum regulation zones Promotion of spaces for cooperation and startup support
Empty houses →Urban B&B
establishments →Share houses
Urban regeneration
areas
Space & Environment Vol. 67 Beyond Habitability: Korea's Urban Policy 26
03. Implications for Developing Countries: Building a Solid Foundation for Economic Development
1) Need for Job-oriented & Inclusive Strategy for Economic Development
The global malaise of jobless economic growth, increase in
low-paying service jobs and worsening youth unemployment
reflect the need for creating decent jobs and ensuring equality of
opportunity in the job market.
In developing countries, the number of workers in informal
employment is disproportionately high relative to the number
of quality jobs. So a crucial task is to develop strategies to create
decent jobs and devise plans to move those in vulnerable groups
into formal and stable employment.
2) Creation of Physical & Institutional Frameworks for Economic Development
Cities must lift physical and nonphysical
restrictions that keep them from realizing their
full economic potential. In an urban economy,
the importance of infrastructure and facilities
must be recognized, as well as the need for making
public spaces and an urban environment, the
foundation for economic development, more
efficient and eco-friendly. In today’s knowledge-based economy,
urban development increasingly depends on skilled talent, and
this underlines the importance of creating optimal conditions
in which to live and work. Uncertainty and unpredictability
in institutional environments are detrimental to economic
development. In developing countries, the most important task
for economic development is to create a human-centered urban
environment and eliminate institutional uncertainty to build a
more solid basis for economic growth.
In developing countries, the most important task for economic develop-ment is to create a hu-man-centered urban en-vironment and eliminate institutional uncertainty to build a more solid ba-sis for economic growth.
Challenges in Achieving Sustainable and Inclusive Economic Growth in Korean Cities
27
References
Kim, Eunnan, et al. 2015. Improved Way of Using Urban Space based on Shared Economy. Anyang: KRIHS. [in Korean]
Kim, Eunnan, et al. 2014. Urban Regeneration Using Creative Industries and Creative Class.Anyang: KRIHS. [in Korean]
Park, Gyeonghyun et al. 2013. Cluster of Creative Industries and Regional Engagement Strategies. Anyang: KRIHS. [in Korean]
Because the Korean economy has graduated from the growth-driven
stage to a more mature phase, growth is no longer the country’s
highest priority. More concerning are the widening gaps in income,
generation and region, and these problems are fueling conflicts that
are becoming more costly to resolve.
Kim, Soo jinAssociate Research Fellow, KRIHS
Habitat III: Policy Direction and
Challenges for Urban Inclusiveness
Issue3
Habitat III: Policy Direction and Challenges for Urban Inclusiveness 29
Because the Korean economy has graduated from the growth-
driven stage to a more mature phase, growth is no longer the
country’s highest priority. More concerning are the widening gaps
in income, generation and region, and these problems are fueling
conflicts that are becoming more costly to resolve. In the interest
of creating a sustainable society, urban communities must now
choose an alternative set of values and set their priorities
accordingly. With these realities in mind, this paper focuses on
urban inclusiveness, a topic of recent discussion by international
organizations, especially U.N. Habitat.
The U.N. Habitat conference is held every 20
years for the main purpose devising a vision
and implementation strategy for sustainable
development and human settlement. The
inaugural conference was held in Istanbul, Turkey,
in 1976 and the second in Vancouver, Canada, in
1996. This year’s conference, titled Habitat III, will take place in
Quito, Ecuador, and the declaration of a New Urban Agenda is
scheduled for October.
Interestingly the agenda identifies social conflicts caused by the
shift to a mature stage of industrialization from the growth-
driven phase with issues on inefficient urban management and
urbanization. Urban inclusiveness should be a precondition to
this end in that well planned and managed urbanization, the
agenda claims, can address such issues (U.N. Habitat, 2016).
This paper aims to discuss 1) the meaning of urban inclusiveness
in the context of Habitat III, 2) which urban issues can be
resolved through a stronger sense of urban inclusiveness, and 3)
the direction and challenges of Korea’s urban policy.
01. What Is Urban Inclusiveness per Habitat III?
As part of the preparation for Habitat III, ten policy units were
Urban inclusiveness should be a precondition to this end in that well planned and managed urbaniza-tion, the agenda claims, can address such issues (U.N. Habitat, 2016).
Space & Environment Vol. 67 Beyond Habitability: Korea's Urban Policy 30
set in October 2015. Two hundred experts and 20 co-leading
organizations around the world have since worked together to
develop policy papers. The first policy unit, “Right to the City
and Cities for All”, suggests a comprehensive vision of urban
inclusiveness. In this unit, the concept of urban inclusiveness is
interchangeable with the “right to the city”, meaning a collective
right to use, appreciate and transform a city, which is understood
as common goods (including basic services, opportunities and
access to resources) that are essential for a better quality of life for
all inhabitants (U.N. Habitat, 2015).
From the perspective of Habitat III, urban inclusiveness has
three principles: diversity, equal access and urban governance
(U.N. Habitat, 2015). First, social, economic, cultural and
environmental diversity should be respected and utilized as means
of social cohesion. Additionally, access to resources, infrastructure,
basic services and economic opportunities offered by cities should
be provided to all on equal footing. And all urban dwellers should
have the ability to participate in and influence the political
decision-making processes that affect their collective quality of life.
What is impressive about the inclusive city
concept promoted by Habitat III is its emphasis
on diversity. Inclusion begins by acknowledging
differences, so the process whereby inhabitants
with different ways of living reach social consensus
is critical. In other words, urban inclusiveness
means embracing diversity and ensuring that all
inhabitants can participate in and influence the decision-making
process through capacity-building.
To strengthen urban inclusiveness, the first step is to identify the
major components that affect inclusiveness. In the view of this
author, such components are exclusion, vulnerability, capacity and
In other words, urban inclusiveness means em-bracing diversity and en-suring that all inhabitants can participate in and influence the decision-making process through capacity-building.
Habitat III: Policy Direction and Challenges for Urban Inclusiveness 31
participation (Soo Jin Kim, 2015). Inclusion is both a state and a
process, and thus always undergoing change. The level of urban
inclusiveness can be determined by examining the relationships
among those components.
02. Which Urban Issues Can be Addressed via Urban Inclusiveness?
The problems deserving priority are exclusion and vulnerability;
capacity building and participation are issues to be resolved over
the long term. Efforts to fight exclusion and reduce structural
vulnerability, which exacerbates exclusion, will spell the end of
poverty and reduce inequality.
The OECD, World Bank, Asian Development
Bank and others have suggested an inclusive
growth model related to urban inclusiveness as
a means to end poverty and inequality; their
views on this matter differ depending on their
perspectives of the pace and pattern of growth.
First, the World Bank (2009) pursues the concentration of
resource investment in large cities and rapid economic growth
then equal distribution of consequent benefits, rather than
pursuing inclusive growth based on support for socially vulnerable
groups. The faster growth is, the more progress can be made in
reducing poverty (World Bank, 2009). Meanwhile, the OECD
(2014) focuses on social issues overlooked during the world’s
growth-driven period and seeks to provide socially vulnerable
groups with basic services such as education and healthcare and
opportunities to enter the labor market. These are the OECD’s
strategies to achieve sustainable development and alleviate
poverty and inequality resulting from growth-driven economic
development.
To strengthen urban inclu-
siveness, the first step is to
identify the major compo-
nents that affect inclusive-
ness. Such components
are exclusion, vulnerability,
capacity and participation.
Space & Environment Vol. 67 Beyond Habitability: Korea's Urban Policy 32
The sort of urban inclusiveness suggested by Habitat III is more
in line with the OECD’s vision (2014) than that of the World
Bank (2009). As envisioned in Habitat III, urban inclusiveness
seeks to end poverty and reduce inequality by providing basic
services to the vulnerable, as well as a social safety net, with
sustainable development as the ultimate goal.
03. Direction and Challenges for Korea’s Urban Policy
This section is on the direction and challenges of Korea’s urban
policy from the perspectives of diversity, equal access and urban
governance.
First for diversity, support should go to vulnerable
groups such as the elderly, women, people
with disabilities and migrants so that they can
participate in economic activities as members of
the community. Benefits including better access
to public transportation, housing affordable
for eveyone regardless of mobility barriers,
while public housing units near public transportation routes
should be provided to the elderly so that they can remain in
the communities where they have lived even after retirement
(Hyunsook Cheon and Minjun Oh, 2013). For women,
infrastructure is needed to encourage full participation in
society and jobs, as child-rearing and geriatric care- traditionally
considered women’ work-should now be viewed as community
responsibility (Taewon Park and Hyunsook Cheon, 2012).
To achieve equal access, more efforts should be made to create
productive jobs. More than a million young people, including
informal workers, are jobless in Korea, and this problem cannot
be solved if the blame is put on lack of skills on the part of
For women, infrastructure is needed to encourage full participation in so-ciety and jobs, as child-rearing and geriatric care- traditionally considered women' work-should now be viewed as community responsibility.
Habitat III: Policy Direction and Challenges for Urban Inclusiveness 33
individuals. The gap between generations is widening whereby
the potential for developing new skills is low, social exclusion is
apparent and structural vulnerability is high. In the case of rising
youth unemployment, high structural vulnerability leads to less
inclusiveness. To strengthen inclusiveness, opportunities to get
decent and productive jobs should be provided equally so that all
can enjoy the benefits of economic growth.
And to boos t urban governance , urban
rehabilitation projects must have adequate
budgetary resources allocated for long-term
programs to strengthen community spirit and
solidarity, not only to improve the physical
environment (Joongjin Shin et al., 2013). At
the municipal level, educational programs
should promote diversity in communities, and a community
business model should be developed to invigorate the social
entrepreneurship. At the central government level, a system of
subsidies and corresponding guidelines are needed to develop a
self-sufficient business model by consensus between municipalities
and communities (Haejin Lee, 2015).
The goal of sustainable development was announced in 2015
and that of Habitat III will be in 2016, so this article reviewed
recent discussions about inclusive growth and inclusive cities
led by international organizations. As Korean urbanization has
been driven by the central government, several interpretations
of inclusiveness should be considered in that context. Moreover,
what level Korea has reached and what issues have been addressed
for urban inclusiveness must be identified. To strengthen urban
inclusiveness, the central government should provide guidelines
for local governments to follow and pay attention to the
development of qualitative indicators that reflect future-oriented
values such as safety, happiness and quality of life.
At the central government level, a system of subsi-dies and corresponding guidelines are needed to develop a self-sufficient business model by con-sensus between munici-palities and communities
Space & Environment Vol. 67 Beyond Habitability: Korea's Urban Policy 34
Fig
ure
1.
Dir
ecti
on
fo
r U
rban
Incl
usi
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ess
in K
ore
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Par
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Sp
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201
5. In
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urba
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vel o
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Kore
a. In
Pro
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7th
Ann
iver
sary
. Any
ang:
KR
IHS
. [In
Kor
ean]
Habitat III: Policy Direction and Challenges for Urban Inclusiveness 35
References
Kim, Soo Jin. 2015. A Study on Building Inclusive Cities in Korea. Anyang: KRIHS. [in Korean]
Kim, Soo Jin and Chan Park. 2015. Inclusive urban development in Korea. In Proceedings of Seminar for KRIHS’s 37th Anniversary. Anyang: KRIHS. [In Korean]
Park, Taewon, and Hyunsook Cheon. 2012. The Concept of the Female-friendly City and Components of Urban Planning. Planning and Policy. Korea Spatial Planning Review 372, 29-40. [in Korean]
Shin, Joongjin, Ilyoung Kim, and Gyteack Bae. 2013. A Study on the Maeul- Mandulgi Process for Community Empowerment. Journal of Korea Planning Association 48(6), 43–56. [in Korean]
Lee, Haejin. 2015. Social Economy and Community Development. Korean Journal of Sociology, 49(5), 77-111. [in Korean]
Cheon, Hyunsook and Minjun Oh. 2013. Housing for the Elderly and Support Measures. KRIHS Policy Brief, 1-6. [in Korean]
OECD. 2014. Report on the OECD Framework for Inclusive Growth. Paris: OECD. World Bank. 2009. What is Inclusive Growth? Washington, D.C.: World Bank.
U.N. Habitat. 2015. Habitat III Issue Papers 1-Inclusive Cities. New York: U.N. Habitat. http://unhabitat.org/wp-content/uploads/2015/04/Habitat-III-Issue-Paper-1_ Inclusive-Cities-2.0.pdf [accessed Dec. 21, 2015]
U.N. Habitat. 2016. Surabaya Draft of the New Urban Agenda - 28 July 2016. New York: U.N.Habitat. https://www.habitat3.org/bitcache/b581c7d6129c25b03b0102e2a7e5e175e901953 5?vid=586129&disposition=inline&op=view
Issue
A smart city is an information hub that integrates data from urban
networks like that on roads, water, electricity and sewerage through
smart sensors and cutting-edge communication technology for the
purpose of resolving serious urban issues in transportation, security
and disaster prevention.
Lee, Sang KeonSenior Research Fellow, KRIHS
4Overview of Smart City Development in Korea
Overview of Smart City Development in Korea 37
A smart city is an information hub that integrates data from
urban networks like that on roads, water, electricity and sewerage
through smart sensors and cutting-edge communication
technology for the purpose of resolving serious urban issues in
transportation, security and disaster prevention. The Integrated
Operation and Control Center (IOCC) is a information platform
and hub for smart city applications as illustrated in Figure 1.
Information and communications technology
(ICT) is considered highly useful in scientifically
and efficiently identifying, analyzing and deducing
the best solutions for urban problems. Through
ICT, a smart city offers diverse smart services
that inform drivers of the fastest routes based on
data gathered from real-time traffic monitoring
devices and a smart disaster service that broadcasts
essential information through variable message
signs or personal SMS. In addition, the installation
of and real-time monitoring by CCTVs help to
promote public safety, reduce crime, protect the environment and
prevent disasters.
Smart city services that enhance the quality of urban life and
protect the environment are emerging as essential parts of many
cities around the world. Over the last 20 years, the Korean
government has encouraged smart city projects by providing legal
and institutional support, R&D and human resources as shown
in Figure 2.
Korea in 2008 enacted the Act on the Planning, Construction
and Management of Smart Cities. More than 120 million USD
of investment has gone into R&D, smart city test beds and
human resource development. Figure 3 shows the status of the
Smart city services that enhance the quality of urban life and protect the environment are emerging as essential parts of many cities around the world. Over the last 20 years, the Korean government has encouraged smart city projects by provid-ing legal and institutional support, R&D and human resources.
Space & Environment Vol. 67 Beyond Habitability: Korea's Urban Policy 38
Fig
ure
1.
Sm
art
Cit
y C
on
cep
t in
Ko
rea
by
Sam
sun
g S
DS
Sm
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Overview of Smart City Development in Korea 39
Fig
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2.
Ko
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Pla
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Space & Environment Vol. 67 Beyond Habitability: Korea's Urban Policy 40
Figure 3. Development of Korean Smart Cities
Around 50 cities in Korea start constructing Smart City-Total Cities in Korea: 163 57% of Seoul Metropolitan Area (19 cities) has construccting Smart City-Total Cities in Seoul Metropolitan Area: 33 cities
23% of Other Area (31 cities) has constructing Smart City-Total Cities in Korea Except Seoul Metropolitan Area: 130 cities
● Pilotcity
● Ubiquitousurbanplanning
● U-cityInfrastructureBuildingoperating
● Innovativecity
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Seoul
●Pilotcity
Incheon
●Pilotcity
●U-cityInfrastructureBuilding
operating
Gyeonggi(16)
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●Uijeongbu
●Yongin,Hwaseong,Osan,
Siheung,Namyangju,Uijeongbu,
Gimpo,Suwon,Seongnam,Paju,
Gwangmyeong
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Yangju,Yongin,Goyang,
Dongducheon
Daejeon
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operating
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●Cheonan
●Cheonan,Asan,Hongsung,
Geumsan
Gangwon(2)
●Gangneung
●Wonju
●Gangneung
●Wonju
●Wonju
Gyeongsang(9)
●Yangju,Yangsan
●Gyeongju,Gumi,Yeongyang
●Jinju,Gimcheon
●Gimhae,Tongyeong
Busan
●Pilotcity
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operating
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NamwonSunchang
ImsilGeongeup
Buan
Gimje Jeonju Jinan
Muju
Wanju
Nonsan
Buyeo
CheongyangGongju
Daejeon
Cheongwon
Cheongju
Sejong
AsanCheonan
Seocheon
Boryeong
Hongseong
Yesan
Dangjin
PyeongtaekAnseong
Yongin IcheonYeoju
JincheonEumseong
ChungjuJecheon
Goesan
Mungyeong
Danyang
Yeongwol
Wonju
Yangpyeong
Namyangju
Gapyeong
Pocheon
Yeoncheon
Dongducheon
YangjuPaju
Goyang
SeoulIncheon
Ganghwa
GimpoUijeongbu
GwangjuSeongnam
Hanam
SuwonAnsan
Siheung
HwaseongOsan
SeosanTaean
IksanGunsan
Jangsu
HwasunNajuMuan
Yeonggwang
Gochang
Jangseong
DangyangGokseong Gurye
Gwangyang
HampyeongGwangju
Mokpo
Jindo
Jeju
Seogwipo
Wando
Jinju
Sancheong
Hamyang
Geochang
Hapcheon
Hadong
Sacheon
Bonghwa
Yeongju
Yecheon
Andong
Yeongyang
Taebaek
DonghaeJeongseon
ulleung
Cheorwon
Gwangmyeong
Tongyeong
Gyeryong
Overview of Smart City Development in Korea 41
country’s smart city development and the cities’ locations.
Studies have shown that smart city projects are beneficial and
effective for resolving urban problems across the spectrum, from
traffic congestion to pollution, as summarized in Figure 4.
Smart city projects in crime prevention areas
have shown remarkable success since the opening
of the U-integrated center in Anyang, Gyeonggi
Province. Comparing the situation before and
after the center went online, the crime rate in
Anyang saw a significant annual decrease of 17.8
percent. So the effect of crime prevention proved
widely successful for the realization of a safer city
through implementation of the smart city system. In the case of
Namyangju, Gyeonggi Province, based on the field survey, the
average speed of traffic flow increased approximately 7.2km/
h thanks to the provision of real-time traffic data, dispersion
of traffic volume and suggestion of detours. The average queue
length at four main intersections within the central business
district (CBD) fell six to 12 meters, while the average waiting
Figure 4. Benefits of Smart City Projects
• Traffic flow• Public transport usage• Citizen convenience(survey)• Arrest rate• Efficiency of facility management• Energy saving• Transparency(survey)• Citizen participation• City competitiveness(survey)
Need to be measured to prove smart city feasibility• Crime rate• Response time to incidents• Loss from disater• Air and water pollution• Water leakage
Enhanced
Decreased
How beneficial are these Smart Cities?
In the case of Namyangju, Gyeonggi Province, based on the field survey, the av-erage speed of traffic flow increased approximately 7.2km/h thanks to the pro-vision of real-time traffic data, dispersion of traffic volume and suggestion of detours.
Space & Environment Vol. 67 Beyond Habitability: Korea's Urban Policy 42
time due to control decreased 43.2 seconds. With the higher
use of traffic information, public awareness of intelligent
transportation systems has increased from 64 percent to 82
percent. Public satisfaction with traffic information has also shot
up from 30 percent to 80 percent. Approximately 68 percent of
drivers choose to use detours by using the information on VMS
and 82 percent request additional VMS installation (Figure 5).
The similarities among cases of Korean smart city development are
as follows, First, smart city projects are largely focused on systems of
intelligent transportation and crime and disaster prevention. Second,
they have built more than 100km of fiber-optic networks for use as
communication infrastructure. And third, the majority of smart cities
are developed based on a comprehensive information strategic plan
(ISP).
Particularly for functions like water leakage
management, an active CCTV system, multi-
functional smart poles and public interaction
portal can be good reference points for other cities
worldwide interested in the smart city initiative,
especially those in developing countries.
Based on 20 years of development experience, the
following five issues need analysis and discussion
for successful implementation of a smart city.
The first is what is more important, privacy or security? Will the
project turn into a white elephant or a must-have item? Which
sector will drive the project, public or private? What kind of
system will be used, ready-made or tailor-made? Who will lead
the project, rotating or specialized official staff? Collaboration is
needed to find the proper answers to ensure the continued success
of the smart city project.
Particularly for functions like water leakage man-agement, an active CCTV system, multi-functional smart poles and public interaction portal can be good reference points for other cities worldwide in-terested in the smart city initiative, especially those in developing countries.
Overview of Smart City Development in Korea 43
Figure 5. Effects of smart city projects in Korea
Figure 6. Five issues for Smart City development
Five issues for smart city development
❶ Privacy vs Security?❷ White elephant vs Must-have item?❸ Public-driven vs Private-driven?❹ Ready-made vs Tailor-made?❺ Rotating staff vs Dedicated staff?
Unit: km/h
pre-test
post-test
Travel speed7.2km/h
1
500
400
300
200
100
information2 3 4
338 331 354
475
373
445
371
534
Unit: km/h
pre-test
post-testIntersectionwaiting time
43sec
500
400
300
200
100
information1 2 3 4
345
151128
385
219
117
66
303
Crime rate18.5%
20,854
cases
2006
16,990
cases
2012
Arrest rate25.3%
2009 2010
• CCTV image evidence provision to police (since 2009): 22,204 cases
• No. of arrest through smart city center monitoring (since 2009): 1,266 cases
• Citizen satisfaction rate on traffic information:
30% (2011) → 80% (2012)
Anyang city
Namyangju city
Housing is at the heart of the drive toward achieving the New Ur-
ban Agenda under Habitat III. Global housing goals can be attained
through the adoption and enforcement of a comprehensive housing
framework. Such goals can be achieved through programmatic at-
tention to five elements: an integrated housing framework, inclusive
housing, affordable housing, adequate housing and upgrade of infor-
mal settlements.
Habitat III and Housing Pathways in
Korea
Issue5Park, Miseon
Associate Research Fellow, [email protected]
Habitat III and Housing Pathways in Korea 45
01. Importance of Housing in Habitat III
Housing is at the heart of the drive toward achieving the New
Urban Agenda under Habitat III. According to a Habitat III
policy paper, global housing goals can be attained through
the adoption and enforcement of a comprehensive housing
framework. Such goals can be achieved through programmatic
attention to five elements: an integrated housing framework,
inclusive housing, affordable housing, adequate housing and
upgrade of informal settlements.
This article reviews the achievements made since
Habitat II by briefly comparing Korea’s housing
conditions today to those of 20 years ago. Also
examined are the lessons learned and remaining
tasks ahead if Habitat III’s vision is to be achieved, and follow-
up steps in the context of socioeconomic change in Korea are
suggested.
02. Housing achievements in Korea after Habitat II
Since the 1996 adoption of the Habitat II Agenda, Korea has
made huge strides in the housing sector, with quantitative and
qualitative deficits being significantly reduced. The increase in
housing supply outpaced that of households. Korea’s housing
stock has shot up 260 percent since 1990, with home quality
greatly improving over the same period.
Table 1. Easing quantitative housing deficit
1990 2000 2010 2014
No. of housing units (thousand) 7,357 11,472 17,672 19,429
No. of households (thousand) 10,167 11,927 17,339 18,773
Ratio of housing units/households 72.4 96.2 101.9 103.5
Dwellings per 1,000 inhabitants 170 249 364 -
Housing is at the heart of the drive toward achieving the New Urban Agenda under Habitat III.
Source: Statistics Korea; MOLIT (2015); http://index.go.kr/
Space & Environment Vol. 67 Beyond Habitability: Korea's Urban Policy 46
Table 2. Improving housing quality
1990 2000 2010 2014
Average no. of rooms per household 2.5 3.4 3.7 3.8
Average floor area per person (m²) 14.3 20.2 28.5 33.5
Share of dwellings with modern toilets (percent) 51.3 86.9 97.0 98.6
Share of dwellings with hot water in bathroom (percent) 34.1 87.4 96.9 99.5
The nation’s housing supply has expanded dramatically since
1990, with the number of housing units increasing at an annual
average of 536,000 units to reach 13.94 million in 2015. The
private sector supplied 380,000 housing units per year on average
and the public sector 155,000. The private sector supplied mostly
owner-occupied units, accounting for 71 percent of all housing,
whereas the public sector supplied 29 percent, primarily focusing
on rental units.
Table 3. Housing supply by sector (1990-2015)
Total Private Public
1990-2015 Total supply 13,940,284 9,894,505 4,045,779
Annual supply 536,165 380,558 155,607
Proportion (percent) 100 71.0 29.0
Public rental housing policies were implemented
from the late 1980s as part of the government’s
plan to build two mil l ion housing units
nationwide. The supply of public rental housing
was marginal until 1990, but expanded to as
much as 9 percent of overall housing output afterwards. The
volume of public units of rental housing leaped more than
threefold to 1,938,000 units in 2015 from 584,000 in 1997. The
number of such units with a guaranteed rental period of more
than ten years was 1,163,000 in 2015, or 5.9 percent of overall
housing stock. The central government played a pivotal role in
Source: Statistics Korea; http://kostat.go.kr/
The supply of public rental housing was marginal until 1990, but expanded to as much as 9 percent of overall housing output afterwards.
Source: Statistics from MOLIT http://stat.molit.go.kr/
Habitat III and Housing Pathways in Korea 47
expanding the housing market, designing various types of rental
homes through devising housing supply plans, setting up public
entities to implement such plans, overhauling legal and regulatory
frameworks, supplying serviced land and selecting tenants for
affordable units of rental housing.
Figure 1. Changes to public rental housing stock by type
thousand unit
2000
1500
1000
500
01997 2000 2005 2010 2015
long term rental short term rental purchased rental
A simultaneous twin-track approach that encourages both curative
(slum upgrading) and preventive (new provision) housing policies
was adopted per Habitat’s recommendation. Under curative
policies, the upgrading of slums was conducted in various forms
such as projects to improve living conditions in the lowest-income
communities, redevelopment initiatives conducted by private
developers and reconstruction projects driven by homeowner’s
associations comprising relatively affluent residents. Most projects
were economically feasible thanks to a higher ratio of floor area
and the positive impact of rising housing prices on asset value.
Source: http://www.index.go.kr/
Space & Environment Vol. 67 Beyond Habitability: Korea's Urban Policy 48
In housing policy, the Korean government is overhauling
institutions in charge of such policy. Comprehensive housing
plans are developed in ten-year cycles to reflect housing supply
and demand, and the government monitors the implementation
of such plans every year. In particular, a two-pronged program for
housing policy based on income level has been devised. On the
supply side, for instance, permanent rental housing is offered to
those in the bottom tenth of the income distribution chart, while
housing benefits are provided as part of policy support on the
demand side. Policy measures such as National Rental Housing
and Chonsei (which allow tenants to put down large lump-sum
deposits in lieu of paying monthly rent) are available to those
above the bottom decile. In addition, support for affordable
housing and mortgage loans are provided to middle-income
households. Recently, the government has focused its policy
efforts toward attracting the private sector’s participation in the
private rental housing market for middle-income families as well
(Figure 2).
Korea is one of more than 100 countries that
recognizes the right to adequate housing in
legislation. The government has pursued policies
geared to creating policy, institutional and
regulatory frameworks that facilitate housing
construction. Recently, the Framework Act
on Housing granted official recognition of the
right to housing and codified the government’s
responsibility to ensure adequate housing for all citizens. Amid a
severe housing shortage, the Housing Construction Promotion
Act was passed to facilitate the construction of mass housing
units in a timely fashion by encouraging private participation in
the housing market and providing financial support through the
National Housing and Urban Fund (formerly known as National
Korea is one of more than 100 countries that rec-ognizes the right to ad-equate housing in legisla-tion. The government has pursued policies geared to creating policy, insti-tutional and regulatory frameworks that facilitate housing construction.
Fig
ure
2.
Ho
usi
ng
pol ic
y b
y in
com
e g
rou
p
inco
me
bra
cket
1988
~19
92(T
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mill
ion
pro
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)20
03~
2007
(Ho
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wel
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adm
ap)
2008
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1220
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pre
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mel
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efit
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PR
H(H
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ouse
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Kim
& P
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(201
6: 1
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Habitat III and Housing Pathways in Korea 49
In housing policy, the Korean government is overhauling
institutions in charge of such policy. Comprehensive housing
plans are developed in ten-year cycles to reflect housing supply
and demand, and the government monitors the implementation
of such plans every year. In particular, a two-pronged program for
housing policy based on income level has been devised. On the
supply side, for instance, permanent rental housing is offered to
those in the bottom tenth of the income distribution chart, while
housing benefits are provided as part of policy support on the
demand side. Policy measures such as National Rental Housing
and Chonsei (which allow tenants to put down large lump-sum
deposits in lieu of paying monthly rent) are available to those
above the bottom decile. In addition, support for affordable
housing and mortgage loans are provided to middle-income
households. Recently, the government has focused its policy
efforts toward attracting the private sector’s participation in the
private rental housing market for middle-income families as well
(Figure 2).
Korea is one of more than 100 countries that
recognizes the right to adequate housing in
legislation. The government has pursued policies
geared to creating policy, institutional and
regulatory frameworks that facilitate housing
construction. Recently, the Framework Act
on Housing granted official recognition of the
right to housing and codified the government’s
responsibility to ensure adequate housing for all citizens. Amid a
severe housing shortage, the Housing Construction Promotion
Act was passed to facilitate the construction of mass housing
units in a timely fashion by encouraging private participation in
the housing market and providing financial support through the
National Housing and Urban Fund (formerly known as National
Korea is one of more than 100 countries that rec-ognizes the right to ad-equate housing in legisla-tion. The government has pursued policies geared to creating policy, insti-tutional and regulatory frameworks that facilitate housing construction.
Fig
ure
2.
Ho
usi
ng
pol ic
y b
y in
com
e g
rou
p
inco
me
bra
cket
1988
~19
92(T
wo
mill
ion
pro
ject
)20
03~
2007
(Ho
usi
ng
wel
fare
ro
adm
ap)
2008
~20
1220
13~
pre
sen
t
1E
xtre
mel
y lo
wP
erm
anen
t PR
HN
atio
nal P
RH
(s
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l-siz
e)H
ousi
ngB
enef
itP
erm
anen
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RH
Hou
sing
Ben
efit
Per
man
ent
PR
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it(N
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RH
Nat
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e Le
ase
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for s
ale
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PR
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t
4 5
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Mid
-siz
efo
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eun
its
Sm
all-s
ize
for s
ale
units
6P
rivat
eR
enta
l
7~H
igh
Priv
ate
mar
ket,
Mor
tgag
e pr
ogra
m
for s
ale
(pub
lic)
units
PR
H(H
appy
H
ouse
)P
rivat
eR
cnta
l(N
ew S
tay)
Sou
rce:
Kim
& P
ark
(201
6: 1
9)
Space & Environment Vol. 67 Beyond Habitability: Korea's Urban Policy 50
Housing Fund). Because legal institutions must change with the
times, the legal framework for the housing sector was overhauled.
The government is working to amend legislation governing the
construction of rental housing in its efforts to expand housing
supply for people from all walks of life, not just for homeowners.
03. Remaining Issues and Lessons Learned
1) Limitations and issues
Korea has substantially reduced its quantitative
and qualitative deficits, yet vulnerable households
remain who have not benefited from formal
subsidies and/or any type of help. Households
living under the substandard units accounted
for around 5 percent of all households in 2014,
a vast improvement over 23 percent in 2010.
Nevertheless, the government’s proactive support
for families living in substandard housing is clearly still needed
(Figure 3).
In addition, housing policy targets assistance to vulnerable
groups including the homeless and those living in substandard
accommodations. While an estimated 12,347 people were
homeless in 2015, another 113,704 households relied on
makeshift dwellings such as tents, shacks and huts (Population
and Housing census, 2010) and 136,998 households lived in
gosiwon, or budget inns with tiny rooms (Survey of Ministry of
Health and Welfare, 2011). An estimated 263,000 households
were estimated to live in vulnerable housing conditions.
Korea has substantially reduced its quantitative and qualitative deficits, yet vulnerable house-holds remain. Thus, the government’s proactive support for families living in substandard housing is clearly still needed.
At the neighborhood level, the two-track approach of slum
upgrading and new provision of housing found caveats. A key
problem in redevelopment is that low-income households with
limited financial resources are likely to be pushed out of their
Habitat III and Housing Pathways in Korea 51
neighborhoods to the city’s fringes via gentrification process.
Other negative effects also emerged such as the loss of a sense of
community and belonging and the dissolution of social capital
(Ha, 2010).
Figure 3. Households living in substandard units
household (thousand, Left) Percentage (%, Right)
7,000
6,000
5,000
4,000
3,000
2,000
1,000
01995 2000 2005 2010 2014
1995 2000 2005 2010 2014
No. of households (thousand) 5,892 4,071 2,536 2,029 954
Proportion (percent) 46.3 28.7 16.1 11.8 5.3
2) Emerging problems needing resolution
Korea’s rapid economic growth, social change and
continuing demographic shift are expected to
have a profound impact on housing policy. The
number of single- or two-person households is on
a sharp rise, with average household size shrinking
due to one of the world’s lowest birth rates and a
rapidly aging population. The most recent census in 2015 showed
that more than a quarter (27.3 percent) of households were single
person. In the housing market, rising real estate prices are causing
more households to rent instead of buy homes, and higher rental
Source: Choi et al. (2012); MOLIT & KRIHS (2014)
Note: Results of 1995-2010 based on Population and Households Cen-sus data each year; Results of 2014 based on Housing Conditions Survey
The number of single- or
two-person households
is on a sharp rise, with
average household size
shrinking due to one of the
world’s lowest birth rates
and a rapidly aging popula-
tion.
Space & Environment Vol. 67 Beyond Habitability: Korea's Urban Policy 52
costs create a heavier rent burden for tenants. Homeownership is
difficult for most Koreans, and an imbalance is emerging between
supply and demand in the housing market. In addition, real
estate inflation is driving higher levels of household debt, creating
an economic burden on society as a whole. Calls are thus growing
for the government to deal more effectively
with housing problems and enhance housing
welfare, especially for low-income households.
This situation is a significant departure from
the past, when the most urgent concern was the
sheer supply of housing units. The government is
looking at measures such as building dormitories
for college students and public rental homes
for the elderly and recent college graduates who
entered the workforce by expanding reverse
mortgage programs, encouraging private
developers to increase the supply of rental housing units, and
pursuing evidence-based research and policymaking.
3) Lessons learned
Housing issues are constantly evolving and vary among countries
as well as regions within a nation. They also change over the
lifecycle of a household. Even if a policy succeeds in one country
at a certain point in history, there is no guarantee that such success
will be replicated in other places or at other times. In addition,
expecting a policy solution of one size fits all is unrealistic. In this
context, Korea’s experience might not be comparable to those
of countries with severe housing shortages in both quantitative
and qualitative terms. As the Habitat III New Urban Agenda
suggests, however, housing is a basic human right and requires
dedicated efforts to resolve related problems of gargantuan scale
and magnitude. Korea has shaped relevant policies by overhauling
its legal frameworks and public entities, conducting ex-post
Housing issues are con-stantly evolving and vary among countries as well as regions within a nation. They also change over the lifecycle of a household. Even if a policy succeeds in one country at a certain point in history, there is no guarantee that such success will be replicated in other places or at other times.
Habitat III and Housing Pathways in Korea 53
monitoring, shifting policy focus to meet changing conditions
over time and benchmarking advanced economies after thorough
analysis. Housing is more crucial than ever if the world is to
achieve the New Urban Agenda, which envisions “cities for all.”
Korea will continue efforts toward making housing better, safer,
more affordable, more accessible, more resilient, better integrated
and more inclusive.
References
Choi, Eunyoung, Youngchang Kim, and Soonpil Kwon. 2012. Spatio-temporal changes of households failing to meet the 2011 new minimum housing standard (1995~2010). Journal of the Korea Real Estate Analysis Association. 18(4): 171-195. [in Korean]
Ha, Seong-Kyu. 2010. Housing, social capital and community development in Seoul. Cities vol. 27: 35-42.
Kim, Kyung-Hwan and Miseon Park. 2016. Housing Policy in the Republic of Korea. ADBI Working Paper Series No.570. Tokyo: Asian Development Bank Institute.
Statistics Korea. 2016. Press Release on 2015 Population and Housing Census. [in Korean]
Ministry of Land, Infrastructure and Transport (MOLIT). 2015. Housing Guidebook. [in Korean]
MOLIT and Korea Research Institute for Human Settlements (KRIHS). 2014. Housing Conditions Survey. Anyang: KRIHS. [in Korean]
Nam, Won-seok. 2013. Housing vulnerable groups: Definition and typology in Korea. Housing Studies Review 21(2): 47-71. [in Korean]
U.N. Habitat. 2016. New Urban Agenda: Draft outcome document for adoption in Quito, October 2016. September 10, 2016. NY: U.N. Habitat.
U.N. Habitat. 2015. Habitat III Issue Papers: 20- Housing. NY: U.N. Habitat.
U.N. Habitat. 2015. Habitat III Issue Papers: 22- Informal Settlements. NY: U.N. Habitat.
The Seoul city government in 2002 raised the quality of public trans-
portation services and set up complementary relations between
modes of public transportation through reform of public transporta-
tion, and this ultimately provided stable public mobility within the city.
Changes in the Korean Public Transportation
System: Achievements and Challenges
Issue6Kim, Hye-ran
Assistant Research Fellow, [email protected]
Changes in the Korean Public Transportation System: Achievements and Challenges
55
01. Public Transportation in 20th-century Korea
Public transportation systems in Korean cities in the 20th century
focused on bus service. Since the end of the Korean War in 1953,
the country’s population grew far more concentrated in the Seoul
metropolitan area as a result of rapid industrialization. While
the nation’s population jumped from 21.5 million in 1955 to
48 million in 2010, that of Seoul leaped more than six-fold—
from 1.6 million to 9.6 million—over the same period. The
capital accounted for 20 percent of the national population in
2010, nearly three times the level (7 percent) in 1955. For the
Seoul metropolitan area (spanning Seoul, Incheon and Gyeonggi
Province), the corresponding figures were 18 percent in 1955
and 49 percent in 2010. Yet Seoul and vicinity occupy only 0.6
percent and 11.8 percent, respectively, of the country’s overall
territory; as of 2010, Seoul also had 16,221 people per square
kilometer. The result was that the Seoul metropolitan area was
especially vulnerable to the negative effects of overcrowding:
chronic traffic congestion, urban sprawl and greater commuting
distances. As a result, traffic jams spread well beyond city centers
to intercity routes.
To alleviate chronic traffic congestion in Seoul,
one of the first policy measures to be implemented
was the introduction of subways. Subways
accounted for a significant proportion of all public transportation
use, and by reducing the number of cars on roads, they kept
traffic flowing in downtown Seoul to a certain extent. The mode
share of subways relative to all forms of transportation rose from
30 percent in 1996 to 35 percent in 2002.
In addition, policy prioritizing buses was implemented. Bus-
only lanes were introduced on a pilot basis in two major
Buses had a competitive rather than complementary relationship with subways.
Space & Environment Vol. 67 Beyond Habitability: Korea's Urban Policy 56
thoroughfares(Wangsan-ro and Hangang-ro) in 1986 and
expanded to 59 roads covering a combined 218.5 kilometers
in 19971. Yet the mode share of buses relative to all forms of
transportation fell from 30 percent in 1996 to 26 percent
in 2002, showing that buses had a competitive rather than
complementary relationship with subways.
1 Sungwan, Kim, et al. 1997. Evaluation of Bus-only Lanes in Seoul and Suggestions for Im-provement. Seoul: Seoul Institute. [in Korean]
Figure 1. Prevalence of Use for Different Modes of Transportation (1985–2000)
1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
30,000
26,000
24,000
22,000
20,000
18,000
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2.000
Bus TaxiSubway Passenger carOther Other+Passenger car
Source: Seoul Research Data Service (data.si.re.kr/node/268, accessed August 27, 2016)
Changes in the Korean Public Transportation System: Achievements and Challenges
57
02. 2004 Overhaul of Public Transportation System2
The competitive relationship between buses and subways raised
the question of the feasibility of additional investments in public
transportation. The problems with the Korean public
transportation system at the time can be summarized as follows.
First, the bus market was driven by operators
that cherry-picked more profitable, high-demand
bus routes. Lucrative bus routes ran alongside
subway lines, fueling competition between the
two modes of public transportation. Second,
profitable bus routes would overlap, worsening
both traffic congestion and the quality of bus
service (in operating speed and frequency).
Furthermore, bus operators rarely serviced less
profitable routes, leaving certain areas with inadequate access to
buses. Bus companies held licenses for a limited number of routes
and could not afford to service those incurring losses. Poor public
transportation service lowered the quality of life for residents and
ran the risk of turning disadvantaged communities into slums.
Accordingly, a comprehensive overhaul of the public
transportation system came in 2004. The primary objectives were
to improve the quality of public transportation service in aspects
such as operating speed, wait time and affordability, assure equal
access and ensure business stability for bus operators regardless
of a bus route’s profitability. The highlights of the overhaul are
summarized below.
1) Overhaul of Bus Routes
The bus system overhaul had two objectives. For users, it was
to ensure punctuality and promptness, ease crowded routes
2 Kwon, Taebeom. 2005. Overhaul of the Public Transportation System in Seoul: Case Study and Implications. Daegu: Gaegu-Gyeongbuk Development Institute.
The primary objectives were to improve the qual-ity of public transportation service in aspects such as operating speed, wait time and affordability, assure equal access and ensure business stability for bus operators regardless of a bus route’s profitability.
Space & Environment Vol. 67 Beyond Habitability: Korea's Urban Policy 58
and secure social equality through greater accessibility and
opportunities for bus services. For operators, it was to provide
stable service, set up comprehensive transportation systems, limit
environmental damage and reduce energy consumption.
① Formation of Functional Hierarchy by Dividing Bus Routes into Arterial and Feeder Routes
Arterial routes cover long distances, operating mostly on arterial
roads to enable fast intracity connections. Feeder routes cover
short distances, operating on minor arterial roads to facilitate
intracity mobility.
② Types of Bus Routes per Service Zone
Arterial and feeder bus routes are classified into four types
according to service zone (Figure 3).
③ Expansion of Central Bus Lanes
The number of central bus lanes increased from covering one
route spanning 7.6 kilometers to 14 spanning 177.6 kilometers in
an effort to increase ridership by ensuring stable arterial coverage.
The expansion of bus lanes in this manner has enabled faster and
more punctual bus service in Seoul.
Figure 2. Functional Hierarchy in Bus Operations
Arterial bus routes
Feeder bus routes
Operating speed
Short distance
Medium distance
Long distance
Source: Taebeom Kwon. 2005. Overhaul of Public Transporta-tion System in
Seoul: Case Study and Implica-tions, p.12.
Changes in the Korean Public Transportation System: Achievements and Challenges
59
Fig
ure
3.
Ser
vice
Zo
ne
afte
r B
us
Ro
ute
Ove
rhaul i
n S
eoul
Art
eria
l bu
s ro
ute
s
Blu
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use
s
(Art
eria
l bu
s ro
ute
s)-
Co
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ecti
ng
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mar
y an
d s
eco
nd
ary
city
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ters
- E
nsu
rin
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ob
ility
an
d p
rom
ptn
ess
Red
bu
ses
(i
ntr
acit
y ar
teri
al b
us
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tes)
- C
on
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rim
ary
and
sec
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y ci
ty c
ente
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Seo
ul m
etro
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urb
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avel
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Seo
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a
Fee
der
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s ro
ute
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- C
on
nec
tin
g a
rter
ial r
ou
tes
wit
h s
ub
way
sys
tem
- M
eeti
ng
dem
and
fo
r in
trac
ity
trav
el a
nd
en
suri
ng
acc
essi
bili
ty
Gre
en b
use
s
(fee
der
bu
s ro
ute
s)
- Lo
op
fee
der
ro
ute
s co
nn
ecti
ng
pri
mar
y an
d s
eco
nd
ary
city
cen
ters
- M
eeti
ng
dem
and
fo
r tr
ansp
ort
atio
n in
pri
mar
y an
d s
eco
nd
ary
city
cen
ters
Yello
w b
use
s
(lo
op
fee
der
bu
s ro
ute
s)
Sou
rce:
Tae
beom
Kw
on. 2
005.
Ove
rhaul o
f Publ ic
Tra
nspo
rtat
ion
Sys
tem
in S
eoul
: Cas
e S
tudy
and
Impl
icat
ions
, 13.
Space & Environment Vol. 67 Beyond Habitability: Korea's Urban Policy 60
2) Overhaul of Bus Operations
The overhaul of Seoul’s bus operations centered on the
introduction of a semipublic system of bus management that
prioritized the public good. It involved joint revenue management
and the auctioning of bus routes. In making this change,
policymakers emphasized financial support to alleviate the
financial deterioration of bus operators; introduced the concept
of public service to enhance the public nature of bus routes; and
sought to minimize social ills by ensuring job security and other
protections for workers in the bus service sector.
① Auctioning of Bus Routes
Nineteen routes, each with a strong profit outlook, were
auctioned off to stimulate competition. In a competitive bidding
process, qualified operators were selected in accordance with
criteria encompassing management and financial capabilities,
service improvement plans and intent to improve employee
welfare. Successful bidders were granted contracts for a limited
term of six years.
② Joint Management of Profits
A system of joint profit management (between the public sector
and private operators) was introduced for 70 arterial bus routes
and 291 feeder routes in Seoul. Based on standard cost (calculated
by the number of buses multiplied by that of kilometers), revenue
is shared in a manner commensurate with operating performance
and losses are fully covered by the Seoul Metropolitan
Government.
3) Overhaul of Public Integrated and Intermodal Fare System
The fare system is based on distance traveled; the base fare covers
a certain distance and the fare increases thereafter. This type of
Changes in the Korean Public Transportation System: Achievements and Challenges
61
fare system is intended to enhance social equity.
A free transfer system was introduced in which users of all modes
of public transportation would pay only the basic fare (KRW 800
in 2004) for trips up to 10 kilometers, regardless of the number
of transfers, and an additional KRW 100 for each increment of 5
kilometers beyond that. The discount, however, applies only for
users paying with smart transportation cards.
03. Overhaul of Public Transportation System: Achievements and Future Tasks
1) Achievements
The semipublic bus management system has enabled the
operation of less profitable routes and seen relative success
in improving public mobility across Seoul. And with the
introduction of bus-only lanes, the speed of bus travel has grown
faster since 2004 to an acceptable level despite increased travel
time for passenger cars in the downtown area, suggesting that bus
service has improved (Figure 4).
Figure 4. Speed of Different Modes of Transportation (1984-2010)
Passenger Cars (Total) Passenger Cars (Downtown)
Passenger Cars (Suburban) Buses
26
24
22
20
18
16
14
12
1984 1990 1995 2000 2005 2010
Source: Seoul Research Data Service (data.si.re.kr/node/102, ac-cessed August 27, 2016)
Space & Environment Vol. 67 Beyond Habitability: Korea's Urban Policy 62
The use of public transportation has gradually
increased in Seoul with the improvement of
bus service and the introduction of the policy
of free bus-subway transfer in 2004. Public
transportation accounted for 64.3 percent of daily
travel in 2010, or 28.1 percent for buses and 36.2
percent for subways. In addition, the mode shares of buses and
subways relative to all forms of transportation have increased
simultaneously, indicating a shift from a competitive relationship
to one that is more complementary (Figure 5).
The mode shares of buses and subways have in-creased simultaneously, indicating a shift from a competitive relationship to one that is more com-plementary.
Figure 5. No. of Daily Trips for Different Modes of Transportation (1996-2010)
Buses Subways
Passenger Cars Taxis
12.000
10.000
8.000
6.000
4.000
2.000
0
1996 2002 2003 2004 2006 2008 200920072005 2010
Source: Seoul Research Data Service (data.si.re.kr/node/103, ac-cessed August 27, 2016)
Changes in the Korean Public Transportation System: Achievements and Challenges
63
The positive effects of the overhaul of the public transportation
system in Seoul have encouraged other Korean cities to follow
suit, leading to improved mobility for the public nationwide.
2) Remaining Tasks
Despite the positive effects discussed above, the
Korean public transportation system has room
for improvement. The semipublic bus system was
introduced as a means of combining the public
nature of bus service with the efficiency of private
operators, but the latter have few incentives
to pursue efficiency. This, in turn, makes it difficult to create
competitive dynamics in the market, and consequently, moral
hazard is prevalent among bus operators. The deficit of bus
operators in Seoul has risen every year to KRW 330 billion (USD
300 million), or 1.5 percent of the city’s overall budget, adding to
the public burden in the form of enormous subsidy payments.3
Overhauling the subsidy system and enhancing operational
efficiency are crucial if Korea is to ensure the operational
sustainability of its public transportation systems.
References
Kwon, Taebeom. 2005. Overhaul of Public Transportation System in Seoul: Case Study and Implications, Daegu: Daegu-Gyeongbuk Development Institute.
Kim, Sungwan, Jongseok Cho, and Mijin Shin. 1997. Evaluation of Bus-only Lanes in Seoul and Suggestions for Improvement. Seoul: Seoul Institute. [in Korean]
Yun, Hyeokryeol, Seungjun Kim, Seongil Shin, Shinhae Lee, and Kijeong Ahn. 2011. Suggestions for Developing Semi-Public Bus System in Seoul. Seoul: Seoul Institute. [in Korean]
Seoul Research Data Service. data.si.re.kr/node/102. Accessed August 27, 2016.
3 Yun, Hyeokryeol, et al. 2011. Ways of Developing Semi-Public Bus System in Seoul. Seoul: Seoul Institute. [in Korean]
Overhauling the subsidy system and enhancing operational efficiency are crucial if Korea is to ensure the operational sustainability of its public transportation systems.
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