Build Together, Benefit Together: Seoul’s Approach to Urban Development

Rapid urbanization leads to housing shortages and strains urban infrastructure, such as roads, water supply, sewage systems, as well as education and healthcare facilities. These lead to congestion, reduced mobility, air pollution, and health hazards. Cities represent two-thirds of global energy consumption and generate more than 70% of global carbon dioxide (CO2) emissions.

Seoul, which has achieved prosperity, low carbon emissions, and disaster resilience, attributes the city’s success to its compact, green, and smart city development and the private sector’s growth. Key strategies it implemented include the following:

Polycentric development. Seoul followed a polycentric approach to achieve a balanced distribution of population, industry, jobs, and housing. It formed three central business districts and seven metropolitan centers. It also promoted mixed land use that integrated commerce, residential, parks, and social services as well as multifunctional infrastructure and multipurpose transit centers.

Figure 1: Seoul’s Compact and Polycentric Development

Note: CBD – central business district.
Source: Seoul Metropolitan Government. Seoul Solution.

Investment in green space. The city replaced arterial roads with water streams and sky gardens and increased green space to 18.74 square meters per capita in 2023 from 5.73 square meters in 1975.

Public transport. Seoul maintained a public transport share of over 60% for more than 30 years, reducing road space to enhance walkability and bike friendliness.

Technological integration. The city leveraged cutting-age technologies, such as big data, internet of things, and digital twins to improve efficiency and effectiveness of governance, urban planning, and urban services (e.g., as mobility, sewage, and safety).

Support for private sector growth. Government support has been crucial in fostering the growth of private firms. Business incentives include tax and tariff incentives and financial support for export development.

Seoul’s development has led to the emergence of 82 Korean firms as internationally competitive conglomerates.

The private sector has become the primary driver for innovation and technological development and a source of development financing. In the 70s and 80s, public financing for research and development were at 60% to 70%. Private financing has overtaken this since the 1990s with a share of at least 60%.

Similarly, there has been a shift to private financing from public financing in the areas of housing supply and urban infrastructure development.

Seoul’s economic success is also reflected in its high world rankings, including 7th (out of 48 cities) in the Composite Urban Competitiveness Index by the Japanese Mori Foundation in 2023 and 16th (out of 141) in the prestigious Global Smart City Index of 2023.

It was also named as a model city for disaster reduction by the UN Office for Disaster Risk Reduction. Seoul’s CO2 emission per capita is less compared with Paris, London, and New York despite having a higher population density, according to the 2021 data of the Organization for Economic Cooperation and Development.

Strong leadership, planning, and stakeholder participation are crucial to the success of Seoul’s approach to its urban development.

Figure 2: Seoul’s Approach to Urban Development

Note: SMG–Seoul Metropolitan Government; IoT–Internet of Things
Source: Created by author based on data from the Seoul Metropolitan Government.

Leadership. City leadership is vital in spearheading urban planning efforts and creating an environment conducive to private sector growth and citizen well-being. Strong political commitment is crucial for prioritizing urban planning and allocating resources. Political leaders should champion sustainable development goals, advocate necessary policy changes, and garner support for urban planning initiatives among various stakeholders.

Clear laws and regulations. Clear policies empower city governments to enforce planning standards, protect public interests, and guide private sector investments in alignment with city objectives. The Seoul Metropolitan Government developed policies and laws that incentivize sustainable development practices, encourage investment in critical sectors, and promote inclusivity and social equity. Robust enforcement mechanisms ensured compliance with urban planning measures and regulations.

Urban planning. A comprehensive urban plan, which strikes a balance among economic, social, and environmental considerations, is paramount for creating vibrant, livable, sustainable, and resilient cities. A well-crafted urban plan: (i) fosters an environment conducive to business, which attracts investments, stimulates economic growth, and generates employment opportunities; (ii) ensures a high quality of life by providing access to green spaces, recreational facilities, efficient public transportation, and essential services (education, healthcare, water supply, sanitation); (iii) promotes healthy lifestyles through pedestrian-friendly streets and bike lanes; and (iv) enhances resilience to natural hazards through strategic land use, building codes that ensure structures can withstand floods and earthquakes, and effective emergency response plans.

Compact development. Zoning regulations should encourage mixed-land use and compact growth to optimize land use (e.g., setting a maximum limit on a building’s footprint and floor area ratio promote compact neighborhoods and vertical growth while preventing oversized tower block development). Incentives, such as tax reduction and deregulation, encourage developers to build high-density areas or include a mix of residential, commercial, and retail spaces.

Stakeholder participation. Engaging stakeholders is necessary to ensure proper project design, support implementation, local resource mobilization, and sustainability of project achievements.

Smart use of public financing. Focus should be placed on essential urban infrastructure and services that support private sector activities and promote social equity and environmental sustainability. Public financing should also support innovation and technological development, where commercial payoffs may be uncertain or lengthy for private investors. Incentives and risk-sharing mechanisms (e.g., tax breaks, subsidies, preferential loans, matching funds) can attract private capital to city priorities.

ADB-Korea Climate Technology Hub.