Busan Ranks 8th Globally and 2nd in Asia on the Path to a World-Renowned Innovation Hub
- Contents
-
Busan Ranks 8th Globally and 2nd in Asia on the Path to a World-Renowned Innovation Hub
□ Busan Metropolitan City (Mayor Park Heong-joon) has secured the 8th spot worldwide and 2nd in Asia as a smart city, underpinned by its unwavering commitment to the digital transformation.
○ This latest evaluation reaffirms that Busan remains a smart leader on the global stage.
□ Busan came in 8th out of 77 major cities in the Smart Centres Index 12, issued by Z/Yen in the United Kingdom.
○ The Smart Centres Index assesses competitiveness across three dimensions, grounded in 134 authoritative datasets from reputable entities such as the Organisation for Economic Co-operation and Development and the World Bank, alongside consultations with specialists from around the globe.
<Overview>
- (Name) The Smart Centres Index ※ ‘Centre’ refers to cities or hubs.
- (Publication Frequency) Twice annually ▸ Commenced in July 2020; currently in its 12th edition
- (Publisher) Z/Yen, a London-based consultancy founded in 1994
- (Methodology) Analysis of 134 statistical indicators and expert surveys
□ Since the city’s debut in 2021 at the 62nd spot, Busan has steadily climbed the list, reaching 8th in the latter half of 2025.
○ Busan has claimed the 2nd position in the Asia-Pacific region three times consecutively, solidifying its smart city credentials.
<Performance Trend>
3rd Edition (June 2021, first entry): 62nd → 4th Edition (November 2021): 41st → 5th Edition (May 2022): 27th → 6th Edition (November 2022): 22nd → 7th Edition (May 2023): 19th → 8th Edition (November 2023): 15th → 9th Edition (May 2024): 14th → 10th Edition (November 2024): 13th → 11th Edition (May 2025): 12th → 12th Edition (December 2025): 8th
□ Busan fell within the top 15 in all six areas of Competitiveness: ▲ Technology Factors, ▲ Business Environment, ▲ Human Capital, ▲ Infrastructure, ▲ Financial Services, and ▲ Reputational.
○ ▲ Technology Factors: 11th, ▲ Business Environment: 10th, ▲ Human Capital: 9th, ▲ Infrastructure: 9th, ▲ Financial Services: 8th, and ▲ Reputational: 10th. Compared with the 11th edition, Busan achieved gains in Technology Factors (12th → 11th), Financial Services (13th → 8th), and Reputational (11th → 10th).
○ The rise in Technology Factors is attributed to actions accelerating the shift toward a forward-looking destination embedded with cutting-edge applications: ▲ the creation of a power semiconductor specialization park, ▲ the formation of digital twin experimental zones, ▲ the launch of a blockchain cluster initiative (2024–2026, 20 billion won), and ▲ the designation of autonomous vehicle testbed districts and related service deployment.
○ The Financial Service category showed the most significant increase, reflecting Busan’s proactive policies: ▲ the early fulfillment of the target for Busan’s Fund of Funds (1.2268 trillion won) and ▲ the establishment of the Busan Future Industry Transition Fund (2.3 trillion won)—the first among municipalities pursuing sectoral structural advancements.
○ Further contributions to overall growth include: ▲ strategic investment attraction in high-tech fields (16 trillion won, the greatest amount recorded under the 8th popularly elected administration) and ▲ the operation of the Busan Digital Innovation Academy (training 10,000 professionals).
□ For the three dimensions of the Smart Centres Index—▲ Innovation Support, ▲ Creative Intensity, and ▲ Delivery Capability—Busan posted the strongest results in Innovation Support, emphasizing its dedication to regulatory enhancement and innovation-enabling measures.
○ Busan reinforced its corporate assistance mechanism by means of organizational restructuring in March 2025, expanding the One-Stop Business Support Team under the Digital Economy Office into the Business Support Division. It also continuously fosters a business-friendly climate via the Enterprise Governance Reform Joint Task Force and the Public-Private Regulation Detection Unit.
○ The Busan Startup Investment Agency was set up to serve as a platform for IT startups and venture investment, thereby forging a regionally anchored ecosystem. Through the reorganized Future Technology Strategy Bureau, the city nurtures next-generation domains: ▲ R&D, ▲ AI, ▲ bio-health, and ▲ big data.
□ Busan is poised to become recognized as a smart pioneer by adopting tech-oriented solutions in its core local industries to generate high-value-added sectors, while cultivating spheres of emerging innovation: ▲ AI, ▲ big data, ▲ quantum computing, ▲ robotics, and ▲ biotechnology.
○ In March 2025, the Busan Artificial Intelligence Strategy was unveiled to outline a blueprint aligned with the AI era. The city also inaugurated the Quantum Science and Technology Institute in October 2024 to broaden the quantum technological landscape beyond the Seoul Capital Area.
○ As the Eco Delta Smart City National Pilot City Project (2025–2039) progresses into full swing, Busan aims to realize a smart leadership model equipped with data-driven urban management, integrated mobility, robotics, and other digital breakthrough systems.
□ Mayor Park stated, “Whenever smart city rankings are released, Busan demonstrates a remarkable upward trajectory and proves its enduring potential. We will strive to turn Busan into a world-class metropolis, Korea’s southern innovative epicenter, and a place one would wish to live in again if born anew.”
