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Cities and Private Companies Challenge Becoming Smart Together!
- Newly pursue the ‘Smart City Challenge Project’ based on a suggestion by the private sector for cooperation among local governments and companies, etc. to select six projects for a total of 9 billion KRW in investments
□ A new type of smart city establishment/outreach project will be pursued starting this year that will efficiently solve urban issues and integrate innovative technologies and services by utilizing creative ideas by the private sector such as companies, universities and local governments.
ㅇ The Ministry of Land, Infrastructure and Transport (Minister Kim Hyun-mee) will begin receiving applications for the ‘Smart City Challenge Project (project for smart city suggestions by the private sector)’ contest for the assertive participation by the private sector and to reflect the demands of local governments and citizens from bottom-up from the 15th.
□ The Smart City Challenge Project is a competitive contest project that benchmarked the ‘challenge project’ held in the US in 2016.
ㅇ This year, a total of 9 billion KRW in government funding will be set aside to select six projects and establish plans focusing on private companies/universities (ideas/investment) + local governments (public/citizens) (Stage 1, 1.5 billion KRW funding per project), and after additional evaluations, it will pursue projects in earnest for outstanding cases (stage 2, under review).
□ In pursuing the Smart City Challenge Project, the government intends to focus on the assertive and leading participation and investments by the private sector such as companies, unlike past local government support projects, to grant maximum project autonomy that fits the bottom-up method.
ㅇ For this, the local government + companies, etc. will organize a consortium in advance to apply to this project.
ㅇ Applicants for the project will have flexibility in planning for various sectors such as urban issue status analysis, establishment of business plans and goals, private-government (governance) system and budget planning, etc.
- In particular, plans are to allow flexible composition and utilization of support funding (1.5 billion KRW) per project in ‘establishing business plans + substantiating representative solutions’, etc.
□ Meanwhile, unlike the United States that pursued the project only on the transportation sector, this project will be pursued to solve urban issues that cause discomforts to citizens in various fields such as transportation, energy, environment and safety.
ㅇ Plans are to spread the integrated smart solutions to other parts of the nation and foreign nations as well through commercialization, etc. while also planning to establish an innovative industry ecosystem focusing on cities with the participation of various entities including small and large companies, start-ups, universities and research institutes.
ㅇ It is also planning to promote the integration of innovative technologies and services related to the fourth industrial revolution during the pilot project (representative solution substantiation) and the main project by utilizing the ‘regulation sandbox’ program*.
* Use of the Industry Convergence Promotion Act (Jan ‘19), Information Communication Convergence Act (Jan ’19), Special Regional District Act (Apr ‘19) or introduction of the ’Smart City Regulation Sandbox’ (planned for ‘19) to substantiate urban unit solutions
□ For this challenge project, following the public invitation in January, local government + company, etc. alliances should be organized to submit proposals, and after evaluating documents and presentations, six projects will be selected by the end of April.
ㅇ Afterwards, business plans and representative solution substantiation and testing operations will be carried out until the end of the year, and after the final evaluation, plans are to select the best projects and begin pursuing the main project by next year.
Select consignment institute [Jan ’19] (MOLIT)
→ Make guideline, announce project eligibility [Jan ’19] (MOLIT)
→ Evaluate documents and presentations and select 6 projects [Apr ’19] (Evaluation Committee)
→ Enter MOUs for project [May ’19] (Consigned Institute)
→ Planning, design and construction [Second half of ‘19] (Local governments / companies)
→ Outreach, feedback and main project [‘20] (MOLIT, Consigned Institute)
□ MOLIT Urban Economy Division Manager Lee Jung-hee said, “This project is based on the assertive participation and free ideas of the private sector and it will help expand smart cities by applying to domestic local governments experiencing similar urban issues.”
ㅇ She added, “Furthermore, by having local governments, small and large companies, start-ups, etc. participate together, we plan to establish an innovative industrial ecosystem and help contribute to creating jobs through outstanding success cases.”
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