Spatial structure and inter‐firm networks of technical and information producer services in Seoul, Korea

Abstract

A spatial and sectoral reorganisation of producer services has begun to change the urban structure of Seoul. In addition to the existing centre of the CBD, two areas, Kangnam and Yongdeungpo, have emerged as the new centres of producer services in Seoul resulting from relocations from the CBD and the location of firm start-ups and spin-offs, so creating a multi-centred structure. There is a difference between the centres related to the fact that Kangnam is specialised in advanced services and has strong local networks among service firms, firms in Yongdeungpo have strong forward linkages to nearby manufacturing firms and to larger producer service firms, while firms in the CBD are relatively older and have much more intensive overseas ties. This outcome illustrates that shifts in the organisation of producer services in favour of outsourcing have been felt in shifts in spatial patterns. These new structures illustrate that producer service location and operation have a powerful influence upon the pattern of development in Seoul.During the last two decades, the growth of producer service activity has been remarkable in the large metropolitan areas of the developed countries. The development of producer services has resulted in structural changes within metropolitan areas, including synergies among firms, giving rise to agglomeration economies, and reducing transaction costs.Producer services' relatively high rate of spin-off effects and functional flexibility boost local industries via proximate inter-sectoral linkages and lead Asia

Spatial Evolution of Producer Service Sectors and Its Influencing Factors in Cities: A Case Study of Hangzhou, China

“…Transformations in information technology and suppliers have forced an increasing number of companies in central areas to implement suburban expansion strategies [31,36]. Existing studies on metropolitan areas include New York, Atlanta, Los Angeles, Washington DC, Montreal [37], Sydney [38] and Seoul [39]. Many small cities that have good transport conditions and communication infrastructures and are within an hour's drive to a metropolis have also become a place to develop service sectors [40].…”

Research on the Influence of Modern Service Industry Agglomeration on Urban Economy Transition

“…Researchers on the evolution of the law of modern service industry development also started from the producer services, evolution of productive service industry can examine industrial agglomeration from the perspective of development and changes. Sam and Kee-Bom (1998) analyzed the development of producer services agglomeration of Seoul [18] . Around 1980, Secondary industry gradually spread from the city to the suburbs of Seoul and even spread to the surrounding cities, and producer services providing outsourcing services for the manufacturing gradually concentrated in the central area of Seoul, the combined effect came into play.…”

Developing China's West: Producer services in metropolitan Xi'an

“…This pattern is similar to the results of a study of reconfigured Seoul, Korea which noted the spatial effect of high inter-firm network links between service firms in various sectors, and the reduced attraction of a crowded downtown for new service industries. This caused migration to outlying areas of new clusters along with linkages to older manufacturing districts (Park and Nahm 1998). Beilin and Xingcheng districts form long-standing agglomeration areas along with the new hi-tech Yanta District.…”