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Korea looks to AI, data hubs to power next-generation smart cities
A conceptual rendering of the proposed smart hub city development in Cheonan. Courtesy of Cheonan City
By Lee Kyung-min
The Ministry of Land, Infrastructure and Transport unveiled Friday the winners of its 2026 smart city initiative, a multiyear project that will funnel millions of dollars into provincial cities to tackle urban decay and demographic challenges using artificial intelligence (AI) and centralized data networks.
The central government selected the city of Suwon as its primary hub-type demonstration city, while naming Busan and Seongnam as specialized smart districts. Additionally, South Gyeongsang Province and Taean County were selected to pilot sophisticated data hubs — regional platforms designed to collect, clean and analyze real-time urban data spanning transit, environmental metrics and consumer habits.
Under the initiative, the selected regional governments will receive up to 16 billion won ($11.7 million) each in matching state funds over a three-year period. Rather than simply funding physical infrastructure like sensors and cameras, the 2026 program marks a distinct shift toward operational software, utilizing generative AI agents and predictive algorithms to manage daily civic life.
In Suwon, a major city just south of Seoul, municipal authorities plan to partner with automotive giants Hyundai Motor and Kia to deploy physical AI systems. The blueprint includes autonomous valet parking robots, on-demand car-sharing networks tailored for working parents and automated robotic deliveries in traditional open-air markets. To bridge the digital divide, the city will also launch mobile literacy clinics to train elderly residents to navigate the automated services.
Further south, Busan will transform its Centum City tech district into an open-source testing ground for urban AI. The city intends to deploy an array of autonomous security robots and use an AI-driven multiagent system to streamline the city's central traffic and emergency control rooms.
Meanwhile, Seongnam will merge transit with tech-driven health care. Cooperating with Seoul National University Bundang Hospital and Kakao Healthcare, Seongnam plans to establish monitoring networks that trace the daily routines of vulnerable elderly populations via AI, while rolling out autonomous medical shuttles and remote-controlled driving aids.
Even rural coastal areas are slated for digital makeovers.
Taean County will implement an AI-backed coastal safety network called Taean Anshim-Hae (Safe Ocean). The platform will synthesize marine and weather data to automatically flag high-risk situations like rip currents or stranded swimmers, triggering automated alerts to emergency services.
Lee Ki-bong, the director of urban policy at the ministry, emphasized that the true measure of the program’s success would depend on the long-term management by local leaders rather than flashy technology.
"The true completion of a smart city does not stop at building glamorous infrastructure," Lee said. "It lies in local governments taking the initiative to responsibly operate these systems."
This article was published with the assistance of generative AI and edited by The Korea Times.