Smart cities

The city of Seoul will create its own metaverse platform by 2026, allowing residents to access government services, educational and cultural programs in phases. In just 2022 alone, Seoul will invest almost £300 million in digitisation of its services, with about a third of the money earmarked specifically for harnessing metaverse-related technologies.

Regulatory Changes

The Korean government has eased regulations to facilitate the deployment of next-generation technologies. A regulatory sandbox announced in 2018 has been expanded and now covers 25 use cases. Coupled with the connection between smart city projects and national economic policy, technologies showcased in the national pilot smart cities could be deployed nationwide.

Opportunity Areas for UK Companies

Areas of opportunity for UK companies include the main components of smart city projects, such as autonomous vehicles, smart grids, renewable energy, drones and robotics, as well as the technologies enabling these services, such as data analytics, AI, blockchain and IoT.

"As of 2024, many of the initial residents of Sejong City have already moved in, with the city continuing to develop and expand its infrastructure."

Mobility is a priority across Korean smart city projects, in particular in Sejong City, where mobility services such as on-demand buses will be key. The biggest opportunities for UK companies in mobility are in autonomous vehicles, where technologies such as driving platforms, AI, and machine vision will be in strong demand. Energy efficiency and clean energy generation figure prominently in many city projects. The biggest opportunities for UK companies in relation to energy are in ESS, where local firms lack capacity, and in data analytics, as energy management platforms will need to analyse data to maximize savings.

The Korean education system has not fully utilized the benefit of Korea’s hyper-connected society. A reform in education is foreseen in a way that could have nationwide implications through the establishment of special schools. Opportunities for UK companies are in edutech: rapid growth in online education during the pandemic has created demand for platforms and technology that can facilitate delivery and management.

A diverse range of projects have sought to further improve Korea’s already strong infrastructure through the addition of connectivity. The biggest opportunities for UK companies are in big data and blockchain. Sejong and Busan will also utilize blockchain to store patient information and facilitate transactions for consumers and enterprises. Busan’s £9 billion digital transformation of its port, the fifth-largest in the world, will also offer opportunities for big data, AI and smart logistics solutions.

Market Entry Checklist

UK businesses looking at the Korean market should consider both business-related and cultural factors before setting out. These might include:

• Do we have a strong differentiator that sets us apart from our competitors in the market?
• Do we have a strong track record in other major markets?
• Are we willing to localise the product for the market and/or for local regulations?
• Are we ready to provide a Proof of Concept (PoC) at little or no cost to the customer?
• How do we provide after-sales support?
• Do we understand the local regulations, particularly in relation to data?
• Do we need to adjust our business model to adapt?

UK businesses can approach the Korean market through direct sales from the UK, by appointing a local channel partner or by setting up an office in Korea. Each has its own benefits and drawbacks and these should be given strong consideration before entering the market. With the right strategy and local support, Korea offers great opportunities for UK tech companies looking to expand overseas.