From hardware to software: Dynamic and creative city Busan

KDI School of Public Policy and Management, Associate Prof. Yu-Min Joo Outline

(1) City context and challenges (2) Assets and resources (3) City’s CCIs vision and strategies (4) Enablers (5) Social, spatial and economic outcomes (6) Lessons learned and conclusion City context and challenges

Population by Regions, 2019

14000000 12000000 10000000 8000000 6000000 Gangwon 4000000 Incheon Seoul 2000000 0 Gyeonggi

South Chungcheong North Chungcheong Sejong

Daejeon North Gyeongsang GRDP by Regions, 2019 Daegu 500,000,000 North Jeolla 450,000,000 400,000,000 Ulsan 350,000,000 South Gyeongsang 300,000,000 250,000,000 200,000,000 Gwangju Busan 150,000,000 100,000,000 South Jeolla 50,000,000 0

Busan: The largest port in the country.

Source: KOSIS Jeju City context and challenges: No longer a “growing” city

Population of Busan (1966-2019) Percentage of population aged 65 years old or more in Busan (1970-2019)

Source: KOSIS Source: KOSIS City context and challenges: Deindustrialization

Location Quotient (LQ) for manufacturing employment in Busan, 1995 and 2000. Industries 1995 2000 Clothing and fur products 1.6 (2) 2.15 (2) Leather, shoes, bags, and saddlery 5.42 (1) 5.75 (1) Wood productions 1.40 (4) 1.33 (5) Metal manufacturing 1.31 (5) 1.44 (3) Metal assembly products 1.43 (3) 1.33 (4)

Source: Modified from Ryu, 2003

• Heavy-chemical industrialization has been promoted in industrial new towns (Ulsan, Pohang, Changwon, Gumi,Geoje, Gwangyang, and Yeosu) along the Southeastern coast since the 1970s. • Knowledge-intensive industries are lopsided concentrated in the capital region. • Example: In 2011, 74.8% of employment in knowledge-intensive business services are located in the capital region; 4% in Busan (Source, Lee and Park, 2013). City context and challenges: Deindustrialization

Number of employees in the manufacturing and service and Social Overhead Capital (SOC) industries (1995-2017) 1995 2000 2005 2010 2017 National Manufacturing (%) 23.6 22.7 18.1 16.9 16.8 Service & SOC (%) 64.5 66.1 73.9 76.4 78.2 Seoul Manufacturing (%) 23.1 21.7 15.2 10.8 8.7 Service & SOC (%) 76.4 77.8 84.7 89.1 91.1 Busan Manufacturing (%) 26.5 25.1 18.1 17.1 16.8 Service & SOC (%) 70.3 72.0 80.3 82.1 82.3 Source: modified from Kim, 2019 Busan GRDP / GDP (%), 1985-2019 9 8 7 6 5 4 3 2 1

0

1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Assets and resources

“A deteriorating industrialized port city and cultural desert” (Hassink &Lee, 2018)

Number of firms in cultural industries (% national total) 1999 Film Animation Game Broadcasting Music Total

Busan 2.3% 0.9% 2.6% 5.3% 1.2% 2.7%

Seoul 81.6% 94.5% 84.9% 54.9% 59.4% 77.4%

Capital 86.6% 96.3% 94.1% 63.6% 69.8% 84.9% region Source: 2000 statistics on cultural industries

However… • A vibrant art and cultural hub during the Japanese colonization and especially during the Korean War. • 1924: Chosun Kinema Company (Korea’s first film producer) opened in Busan. • Local theaters have long served as cultural spaces for citizens and workers in Busan throughout its industrialization (Samil: 1944-2006; Borim: 1955-2007; Samsung: 1955- 2007). • Busan Youth Biennale took place from 1981-1995, voluntarily organized by local artists, before Korea’s first Biennale in Gwangju in 1995. Assets and Resources

International festivals: • Busan International Film Festival (BIFF) 1996~ present Asia’s largest and internationally acknowledged film festival. • Busan Biennale 1998 ~ present Integrated three different art events (Busan Youth Biennale, Sea Art Festival, & Busan Outdoor Sculpture Symposium) • Busan International Art Fair (BIAF) 2007~present • Art Busan 2011~ present Recorded the highest art fair sales in Korea in 2021, exceeding KIAF. Privately founded by a housewife/company manager born and raised in Busan: Sohn, Younghee.

Cultural infrastructure: • Busan Cinema Center 2011. • Busan Museum of Contemporary Art 2018. • Dream Theater 2019 • Busan International Art Center 2021 • Busan Opera House 2023

Other notable mega-projects: • Busan North Redevelopment project 2008~2022.

Urban revitalization/regeneration projects with arts and culture. • Creative City Division, Busan City Hall 2010~ present Busan’s CCIs vision and strategies

• 2001: Master plan titled “Ocean Capital” • 2005: Dynamic Busan 2020 Road Map Overall vision: to become the “Ocean Capital” of the 21st century. • 2007: 2020 Culture city project. 2020 Culture city project: • To promote cultural industries as the new development drive in knowledge-based economy. • To build the image as a cultural city and to provide citizens with cultural welfare by developing landmark cultural facilities. A culture city based on art and entertainment.

Promotion of cultural Develop a city of Development of cultural industries based on film entertainment, exhibition, spaces and landmarks (Asia’s Cineport Busan) and leisure • Build a world-class • Build a Busan film museum • Build Busan Film Center museum. • Build Busan Art Center • Build one-stop center for • Build ocean them park. • Build National Busan film production • Build national ocean library • Build Busan Cultural museum. • Expand exhibition and Contents Complex • Build cultural temple convention facilities. experience town. Busan’s CCIs vision and strategies

• 2001: Master plan titled “Ocean Capital” • 2005: Dynamic Busan 2020 Road Map Overall vision: to become the “Ocean Capital” of the 21st century. • 2007: 2020 Culture city project. Busan as a city of film: • 1996: BIFF (Busan International Film Festival) locally initiated. • 2000: Busan announced its vision to become the hub of film industry in Asia. • 2004-2011: Ministry of Culture and Tourism designated Busan as Cine Culture City. • 2014: UNESCO Creative City of Film. • 2021: Designated deputy coordinator of UNESCO Creative City of Film. • 2011: Soft Power City • A new development paradigm along 3C’s (Creativity, Coexistence, and Cross-Border). • 2015: Busan 2030 vision and strategies: Smart Busan Overall vision: to focus on people, technology and culture. • 2019: Busan culture 2030 vision Overall vision: citizen-led, happy culture, global maritime cultural city • 4 key values: maritime, diversity, creativity, innovation. • 4 goals: • Maritime cultural city, where culture enables local and global communications. • Inclusive cultural city, overflowing with diversity. • Integrated creative city, where creativity builds cultural ecosystem. • Cultural governance city, together with citizens. Creative city Busan

Creative City Busan

City of Film Culture City

BIFF Maritime culture Subculture Openness Against the mainstream Free spirit Independent character Early adopters Younger generation Accustomed to fast changes Catalyst for social change Capability to create something out of nothing -Asian Film Academy Enabler: City of Film -Busan Asian Film School -7 universities: film related depts. -Korea Academy -BIFF -Cinemahouse of Film Arts -Cine Culture City hotel (closed -Busaners -Domestic & down-COVID-19) passionate abt. international -Residency film network by key programs experts -Haeundae beach -Financial support hotels from the city hall -Old (20%) and local neighborhood Maritime culture companies theaters (closed) Subculture BIFF (initiator) Asia, Young, Non-competition -UNESCO Creative City Network -BMDB CINEMA -Busan Film -Korea’s Commission advanced ICT -Asia Project environment -Long history of Market Korean cinema -BCC(Foundation) -Unique urban -Independence of environment BIFF -Haeundae beach: modeled after Cannes film festival -Unique strategy -Artists with Enabler: Culture City strong Busan identity -Busaners valuing culture -Local cultural planners / -National funding activists / liaison (Culture City -Unique urban actors project; Sanbok landscape Renaissance -Empty homes, project) schools, & -BCF: Financing factories subculture projects Maritime culture Subculture

-Busan Cultural Foundation -Korea’s -Creative City advanced ICT Division (Busan environment City Hall) -Yeongdo Culture City Center -Active … international exchanges -First city to promote culture diversity Social, spatial, and economic outcomes

Busan Cinema Center Social • Internal branding • Community activities • Growth of talents

City of FILM

Spatial Econ External • KIFF plaza • branding • Busan Cinema • Tourism Center • MICE (public use) • Film industry / Centum cluster(?) Cultural industry firms (national %) Busan Film Anima Game Broad- Music Total -tion casting 1999 2.3 0.9 2.6 5.3 1.2 2.7 2018 4 4 6 3 6 6 Social, spatial, and economic outcomes

Social

The root of creative city Busan • Inclusive Creative city for

governance resilient Busan • Culture for everyday life • Community development • Pursuit of SDGs

Culture City sustainable development Econ Spatial • Tourism • More • Regeneration livelihood • Cultural opportunities places for for local neighbor- residents hoods • Pursuit of SDGs Conclusion and lessons learned

The seed of creativity: BIFF Maritime cultural characteristics Subculture = City of Film & Culture for SDGs

Implications for international community:

• People are the most critical asset.

• Actively search and nurture local strengths and uniqueness.

• Be open minded and learn from others. Networking is important.

• Funding matters. But…

• Governance: the government is kept at arm’s length, allowing the local experts to carefully plan and manage projects.