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

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.