The Public Sector
TU Wien Bibliothek
The Public Sector
TU Wien Bibliothek

Journal Article

Title The development of New Songdo City between the poles of Smart City Planning, Real Estate investment and Financialization
Author Huber, Isabel ; Meier, Arne ; Peters, Kilian
Published on 02 Dec 2024
Published by Der Öffentliche Sektor - The Public Sector
Published in Volume 50 • Issue 1/2 • 2024 , pages 77-87
AC AC17383367
DOI 10.34749/oes.2024.4697

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Abstract (English)

Smart City concepts have increasingly been connected with large scale urban development projects in cities around the world. While promising a new way of urban life, questions are raised if their implementation keeps up with the promises. At the same time, the realization of large development projects often aims to facilitate foreign investments in a city and is thus influenced by processes prone to financialization and entrepreneurial urbanism. This study is set to explore the intersection of smart city development, real estate, and financialization It examines how smart city initiatives, designed to promote urban innovation and economic growth, are intertwined with financial practices, using New Songdo City in South Korea as a case study. The project is characterized by significant private sector involvement, particularly from real estate developers and multinational tech companies like Cisco, which provide smart infrastructure and data services. The study highlights how financialization, through mechanisms like land speculation and international investment incentives, drives urban development, often prioritizing profit over local needs. Furthermore, the found evidence suggests that the implemented smart city appliances do function as profit-generating assets for the technology-firms involved. Thus, the study concludes that the smart city model of New Songdo City serves more as a speculative marketing tool to attract investment rather than a sustainable urban solution that improves residents' quality of life.

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Creative Commons Attribution-NonCommercial 4.0