Building a Sustainable Tomorrow: Busan’s Opportunity and Strategy in APEC 2025

Xiuli Chen

30 Oct 2025 — 26 min read

Introduction

APEC 2025, hosted by South Korea under the theme “Building a Sustainable Tomorrow: Connect, Innovate, Prosper,” is centered in the historic city of Gyeongju. This major summit brings global attention not only to its host city but to the nation as a whole. In particular, the decision to hold certain high-profile meetings outside Gyeongju has spread the spotlight across other Korean cities. Notably, Busan – the country’s second-largest metropolis – has emerged as a key location on the sidelines of APEC. Busan’s significance was underscored by the highly anticipated bilateral meeting between Chinese President Xi Jinping and U.S. President Donald Trump in Busan, about 85 km from Gyeongju. Security considerations and Busan’s superior infrastructure likely drove this choice. This convergence of global leaders in Busan represents a tremendous opportunity for the city to showcase its strengths. It also prompts a broader question: How can Busan and other South Korean cities leverage APEC 2025 to drive sustainable development, connectivity, and innovation? In this report, we analyze the comparative benefits APEC 2025 offers to major Korean cities (such as Seoul, Incheon, and Daegu) and then focus on Busan’s unique history, economic structure, cultural assets, and challenges. The aim is to provide Busan’s policymakers and strategists with clear insights, from a global strategic perspective, on how to capitalize on APEC 2025 to advance long-term prosperity in line with the summit’s theme.

APEC 2025: A Nationwide Opportunity for South Korean Cities

While Gyeongju hosts the main APEC Economic Leaders’ Week, cities across South Korea are drawing benefits from the year-long APEC 2025 events. The government deliberately spread ministerial and preparatory meetings to multiple locales, boosting regional involvement. This strategy aligns with South Korea’s goals of balanced development and showcasing different regional strengths.

Seoul (Capital City): As the political and business hub, Seoul naturally serves as a gateway and command center during APEC. The preparatory Informal Senior Officials’ Meeting took place in Seoul in late 2024, and many delegates transit through the capital. Seoul’s global connectivity and diplomatic infrastructure allow it to host bilateral meetings and press events around APEC. For example, South Korea’s president engaged in trade talks with the U.S. president on the summit sidelines (finalizing a major investment deal), reflecting how national-level agreements tend to be unveiled during APEC, often with Seoul’s support. The capital’s businesses also use APEC as a platform to form international partnerships, leveraging the presence of global leaders.
Incheon (Gateway and Free Economic Zone): Incheon, adjacent to Seoul, is leveraging APEC to bolster its status as a global gateway. Home to Korea’s main international airport and the Songdo International City free economic zone, Incheon directly hosted key APEC events. Notably, the APEC Women and the Economy Forum 2025 convened in Songdo, Incheon on August 12, 2025, bringing international delegates to the city. Incheon’s established infrastructure (modern convention centers and smart-city initiatives in Songdo) made it a natural choice for high-level meetings on digital innovation and inclusion. The city has already been a magnet for investment – it was designated the nation’s first free economic zone in 2003 and attracted major firms like Samsung Biologics to its biotech cluster. By hosting APEC forums on topics like the digital economy and food security, Incheon can highlight its success as a tech and logistics hub, potentially drawing further foreign investment and partnerships. The influx of APEC visitors through Incheon Airport also boosts its profile and the local service economy.
Daegu (Regional Industrial City): Daegu, while not an official APEC venue, stands to indirectly benefit from the summit’s nationwide impact. As a major city in Korea’s southeast, Daegu’s industries (textiles, machinery, and electronics manufacturing) could see opportunities from any trade facilitation or supply chain agreements arising from APEC. Local enterprises can participate in APEC-related exhibitions or side events to seek foreign business ties. Moreover, Daegu’s proximity to Gyeongju positions it to capture spillover tourism: international delegates and journalists may undertake cultural excursions or pre/post-summit visits to nearby cities. Daegu’s rich cultural heritage and tech parks (e.g. its emerging robot and green energy sectors) can be marketed during APEC to attract attention. The city can also learn from APEC’s focus on sustainability and innovation by formulating its own strategies to upgrade old industrial zones into smart clusters. In essence, Daegu and other regional cities can use APEC 2025 as a catalyst for local development agendas, aligning with national efforts to rebalance growth beyond the capital area.

Overall, the APEC 2025 summit acts as a catalyst across South Korea. From Seoul’s diplomatic stage to Incheon’s gateways and Daegu’s regional initiatives, cities are leveraging the event to promote infrastructure improvements, global networking, and urban branding. This broad engagement ensures that the benefits of APEC – increased tourism, investment inquiries, and policy focus – are shared nationwide. With this context, we now turn to Busan, which has emerged as a focal point of APEC 2025 and holds perhaps the greatest untapped potential to “connect, innovate, prosper” in the years ahead.

Busan: Profile of a Global Port City at a Crossroads

Busan’s coastal skyline, including the Gwangan Bridge and Haeundae high-rises, reflects its growth as a modern metropolis and international port.
Busan is South Korea’s second-largest city, with about 3.4 million residents, and has long been known as the nation’s primary maritime gateway. Situated on the southeastern coast, Busan’s history and identity are deeply tied to its strategic port and its role as a crossroads of trade and culture. Understanding Busan’s background – its historical significance, economic and industrial structure, cultural assets, and current challenges – is crucial to formulating a development strategy that leverages APEC 2025.

Historical Significance and Resilience

Busan’s history is marked by resilience and global connectedness. The city rose to prominence as a trading port centuries ago due to its natural harbors and proximity to Japan. In the 15th–19th centuries, Busan was one of the few places where Korea permitted limited foreign trade (notably with Japan), planting early seeds of its cosmopolitan character. Its modern history further underscores its importance: during the Korean War (1950–53), Busan became the temporary capital of South Korea, a final stronghold never captured by invading forces. The city harbored millions of war refugees and served as the logistical lifeline for UN forces. This crucible of war-time adversity forged Busan’s identity as a dynamic, open city. “Busan laid the foundation for leaping from the ashes of war to becoming a surprising economic powerhouse,” notes one analysis. After the war, Busan spearheaded Korea’s economic recovery through manufacturing and trade, helping drive the nation’s transformation from aid recipient to donor status over 70 years. The presence of the only United Nations Memorial Cemetery in Busan today attests to its international historical importance. Busan’s heritage – from ancient trade links to its pivotal war role – endows it with a rich narrative that can be highlighted on the global stage. This historical legacy contributes to Busan’s unique appeal and is a foundation for its aspiration to be a “global hub city”.

Economic and Industrial Landscape

Economically, Busan has evolved into a major industrial and service center with one of the world’s busiest ports. The Port of Busan is a core engine of the city’s economy and of South Korea’s trade. As of 2023, Busan Port handles over 75% of Korea’s total container traffic and more than 97% of the country’s transshipment cargo. It has consistently ranked as the world’s second-busiest transshipment port (after Singapore) and within the top 6–7 container ports globally. This means that Busan is a linchpin in global supply chains, connecting the Asia-Pacific region with Europe and North America. The port’s success has spurred a huge logistics industry (warehousing, freight services, ship repair) and attracted related manufacturing such as shipbuilding equipment and container manufacturing. Busan’s industrial structure historically centered on manufacturing industries – including shipbuilding, machinery, automotive parts, and steel – alongside a vibrant fisheries sector given its coastal location. Over time, the economy has diversified, with the service sector now at the center of Busan’s industrial structure. Wholesale and retail trade, transportation, finance, and tourism are significant employers, reflecting Busan’s role as a commercial hub. According to Invest Korea, the city’s industrial profile still shows manufacturing and construction as major components, but services account for the majority of jobs and investment. In recent years, Busan has made strides in attracting high-tech and knowledge-based industries. In 2023 the city drew a record KRW 4 trillion of new investment, including projects in future-oriented sectors like R&D centers, secondary battery production, and IT convergence. Foreign investors have shown interest as well – over 700 foreign-invested companies operate in Busan, with 71% of that investment value in services (especially wholesale/logistics) and 22% in manufacturing. This indicates growing confidence in Busan as more than just a port – it is seen as a multifaceted business location.

Looking ahead, Busan’s economic strategy is to transform and upgrade its industrial base by embracing the Fourth Industrial Revolution (4IR). The city is aiming to integrate advanced technologies (AI, big data, IoT) into traditional sectors and nurture new industries. Busan was designated a regulation-free zone for blockchain technology, for example, to spur fintech and digital innovation. A national “Global Hub City” special act is under consideration to let Busan create special districts for finance, logistics, and high-tech industries with regulatory and tax incentives. Local leaders emphasize that Busan’s development can “serve as a counterforce to capital-centric development,” providing more balanced growth for Korea. In summary, Busan’s economic backbone remains its port and industrial legacy, but the city is actively pivoting towards a modern, innovation-driven economy – a transition very much in spirit with APEC’s emphasis on connectivity and innovation.

Cultural Assets and Soft Power

Beyond hard infrastructure, Busan boasts rich cultural resources and a vibrant urban lifestyle that bolster its global appeal. The city’s cultural strengths can be powerful levers for promoting Busan internationally:

Global Festivals and Tourism: Busan is renowned for hosting Asia’s most prestigious film event – the Busan International Film Festival (BIFF) – often dubbed the “Cannes of Asia.” Every autumn, BIFF draws filmmakers, celebrities, and cineastes from around the world, underscoring Busan’s stature as a creative city. This festival, along with numerous other events (music concerts, international conventions at BEXCO, etc.), has put Busan on the cultural map. The city’s scenic beaches (such as Haeundae and Gwangalli), coastal mountains, and seafood cuisine also make it a popular tourist destination. Nearly 3 million foreign tourists visited Busan in 2024, an all-time high, showing a strong post-pandemic tourism recovery. The APEC year provides an opportunity to further market Busan’s attractions – for instance, delegates and journalists can experience sites like the historic Jagalchi Fish Market or the colorful Gamcheon Culture Village. Busan’s bid to host the World Expo 2030 (though ultimately unsuccessful) likewise showcased its cultural and urban charm to a global audience. These efforts contribute to Busan’s soft power and global name recognition.
Maritime and Historical Culture: As a port city, Busan’s identity is intertwined with the sea. The city celebrates this with attractions like the Busan Sea Festival and museums dedicated to maritime history. The UN Peace Memorial Hall and heritage sites from the Korean War era highlight Busan’s role in modern history, offering unique storytelling angles for visitors. The local culture – including the distinctive Gyeongsang dialect spoken in Busan – is often featured in Korean films and TV, giving the city a somewhat tough, friendly, and energetic image in popular culture. Busan’s people are proud of their city’s moniker “Dynamic Busan,” reflecting a down-to-earth vibrancy distinct from Seoul’s pace.
Educational and Creative Capital: Busan is a regional center of education and R&D, with numerous universities and a growing startup scene. The city has positioned itself as a hub for film and visual content (it brands itself as a “film city”), and it nurtures creative talent through institutions like the Busan Cinema Center. There’s also a push in developing design, fashion, and gaming industries – Busan hosts an annual international game exhibition (G-STAR) that draws global participants in the video game industry. All these cultural and creative strengths enhance Busan’s attractiveness to global investors and visitors. They also provide the city with a well of stories and images to promote itself during APEC and beyond.

Strategic Location and Connectivity

Busan’s geography gives it a strategic advantage that few cities can match. Located on the Korea Strait, Busan is the closest major Korean port to Japan and a short shipping distance from China, placing it at the heart of Northeast Asian maritime commerce. It is the terminus of the trans-Korean railway line (with plans, in more optimistic geopolitical scenarios, to link via North Korea into the Trans-Siberian Railway – creating a true Eurasian rail route from Busan to Europe). Even today, Busan’s port connects to over 500 ports in 100+ countries, underlining its role in global logistics. Domestically, Busan anchors the southeast industrial corridor: it is part of a metropolitan region with Ulsan (an industrial powerhouse in shipbuilding and petrochemicals) and Pohang (steel production), forming a manufacturing belt that complements Busan’s trade and distribution functions. This regional synergy means Busan can serve as the export-import funnel for Korea’s industrial heartland.

Connectivity is a theme Busan is actively investing in. The city is expanding its port capacity on a massive scale: a new Jinhae New Port project (US$10 billion investment) is underway to double container throughput by 2045. This will give Busan the ability to berth the world’s largest megaships and handle nearly 40 million TEUs (twenty-foot equivalent units) annually – potentially making it the third-largest port in the world by capacity. Plans include smart-port technology and eco-friendly operations to keep Busan competitive amid changing global shipping trends. Additionally, a new international airport on Gadeok Island is set to open by 2030 to replace or supplement the current Gimhae Airport. This Gadeok Airport is projected to significantly improve Busan’s global air connectivity, with experts estimating it could create over 110,000 jobs and allow direct flights from Busan to many more overseas destinations. As it stands, many international travelers bound for Busan must transit via Incheon/Seoul; a larger local airport will change that, boosting tourism and business travel to Busan. The city is also well-connected by Korea’s high-speed rail (KTX), highways, and coastal ferry routes, making it a transportation nexus. All these factors illustrate that Busan is geographically and infrastructurally positioned to be a leading node of connectivity – aligning perfectly with APEC’s pillar of enhanced regional linkages. The Xi-Trump meeting itself underscored Busan’s strategic location: the two leaders opted to meet in Busan partly for security and logistical ease, flying into Busan’s airport away from the main summit bustle. This event symbolically put Busan on the map as neutral ground conducive to diplomacy.

“Why Busan?” vs. “Why Not Busan?”

In making a case for Busan’s development – especially to “connect, innovate, prosper” in a sustainable future – it is vital to assess both its strengths and its weaknesses. Busan has immense assets, as outlined above, that argue “Why Busan” is an ideal engine for growth. At the same time, the city faces structural challenges that have raised the question “Why not Busan” in some national debates (for example, Busan’s failed Expo 2030 bid prompted reflections on its drawbacks). Here we analyze these positive and negative factors:

Key Strengths and Opportunities (Why Busan?)

Major Logistics and Trade Hub: Busan’s port capabilities are unparalleled in Korea. The concentration of container traffic in Busan (three-quarters of the nation’s total) gives it an economic gravity that policy can build upon. The port’s continued expansion and modernization (smart logistics systems, green port initiatives) will strengthen Korea’s position in global trade and ensure supply chain resilience for the region. This is a strategic asset not just for Busan but for the entire country’s export-driven economy. It justifies further investment in port-related infrastructure and industries in Busan. Moreover, as APEC promotes regional economic integration, Busan can serve as a physical and digital gateway linking APEC economies. Its role as a transshipment hub means it facilitates trade between other countries (e.g., transshipment cargo between China and Japan or Southeast Asia and the U.S. passes through Busan), giving it a role in broader Asia-Pacific connectivity.
Robust Industrial Base with Diversification Potential: Busan’s diverse industries provide a platform for innovation. Traditional strengths in shipbuilding, automotive parts, and machinery ensure that a skilled workforce and supplier network are in place. These industries, while facing global competition, are ripe for upgrades through technology (e.g. smart factories, advanced materials). Meanwhile, Busan’s growing service and tech sectors – including finance, ICT startups, and content creation – offer new avenues for growth. The city has been positioning itself as a financial center specializing in maritime finance and derivatives; the Busan International Financial Center (BIFC) hosts several financial institutions and could attract more with supportive policies. Busan also was chosen to host a branch of Korea’s stock exchange and some public financial corporations, seeding a financial industry cluster. If the proposed Global Hub City Special Act passes, Busan could offer generous incentives and deregulation in designated districts to lure companies (foreign and domestic) in fintech, logistics tech, biotech, etc. In short, Busan has a foundation of heavy industry and is actively broadening into high-tech and services – a dual strength that can yield a resilient, innovative economy.
Cultural Appeal and International Events Experience: As discussed, Busan’s vibrant culture and global events experience are major pluses. It successfully hosted the APEC summit once before (in 2005) and learned how to manage an international event, leaving behind infrastructure such as conference venues and upgraded urban amenities. It also hosted the Asian Games in 2002 and regularly manages large festivals (BIFF, etc.), proving its capability in tourism and event logistics. This track record instills confidence that Busan can deliver on big projects. Additionally, Busan’s appealing lifestyle – seaside living, a more relaxed pace than Seoul, and an affordable cost of living – can be marketed to attract talent and investors. In fact, Busan has started promoting itself as a “worcation” destination for digital nomads (combining work and vacation), highlighting its quality of life. APEC’s emphasis on inclusive growth could dovetail with Busan’s attractive living environment to pilot initiatives in remote work, the creative economy, and related areas.
Political Backing for Development: In the wake of the Expo 2030 bid loss, there is a strong national-level commitment to Busan’s development. Top leaders, including President Yoon, have assured that major projects in Busan – like the Gadeok Island airport and North Port redevelopment – will proceed regardless of the Expo outcome. Both ruling and opposition parties appear to agree on the need to revitalize Busan’s regional economy, given its political importance as a swing region. This bipartisan acknowledgment means Busan is likely to receive continued public investment and policy support (for example, budget allocations for infrastructure, special laws, and other measures). Such support is a strength, as not all cities have the central government’s attention the way Busan does now. If these promises translate into tangible outcomes – e.g. an operational new airport, a flourishing redeveloped port district – Busan will become even more competitive and attractive for future international events and business.
Geopolitical and Strategic Value: Busan’s location also gives it strategic importance in broader geopolitical terms, which can be leveraged for international cooperation. The fact that U.S. and Chinese leaders chose Busan for a critical meeting shows that it can host high-stakes diplomacy. In the future, Busan could position itself as a neutral venue for dialogue on trade, climate, or security for APEC and other fora. It is also a key city in terms of security logistics – the Korean Navy’s operations and a significant naval base are in Busan, underscoring its role in regional security (anti-piracy, protection of sea lanes). With APEC’s agenda increasingly encompassing the sustainability and security of supply chains, Busan’s strategic value is a strength that can translate into leadership on initiatives such as green shipping corridors or disaster-resilient ports, in partnership with other APEC port cities.

Key Weaknesses and Challenges (Why Not Busan?)

Despite its many strengths, Busan faces several interrelated challenges that have, at times, made observers question its readiness or suitability for major initiatives. These weaknesses must be candidly addressed:

Population Decline and Brain Drain: Perhaps Busan’s most pressing challenge is demographic. The city’s population has been shrinking steadily since the mid-1990s. Busan has lost about 600,000 people over the past 30 years, dropping from 3.88 million in 1995 to around 3.27 million in 2024. This decline is driven by a combination of factors: an aging population (Busan has one of the highest elderly proportions in Korea), very low birth rates, and – critically – an exodus of youth to Seoul and other regions. Young graduates often leave Busan in search of better job opportunities in the capital area or other industrial cities. In one survey, 8 in 10 university students in Busan said they planned to leave after graduation. This brain drain saps Busan of the very talent and entrepreneurship needed for its reinvention. It also means a shrinking local labor force. If not arrested, these trends could lead to a vicious cycle of economic stagnation. There is even worry that Busan could lose its status as Korea’s second-largest city to Incheon in the near future, as Incheon’s population has been rising while Busan’s has fallen. The concentration of opportunities in Seoul (which, with Incheon and Gyeonggi Province, now accounts for over half of Korea’s population) is cited by Busan’s youth as a significant source of frustration. Essentially, Busan’s human capital challenge – retaining and attracting skilled workers – is a weakness that could undermine its growth prospects if unaddressed.
Economic Stagnation and Industrial Decline: Busan has struggled with the decline of some of its traditional industries. The port and shipbuilding sectors have faced global downturns in the past decade. Large shipyards in nearby provinces overshadowed Busan’s smaller shipbuilders, leading to closures (for instance, the Yeongdo Island district, once a shipbuilding hub, saw its factories shuttered and population halved from the 1980s to the 2020s). Manufacturing employment has shrunk, and many of the city’s large conglomerate-run factories (which were never as numerous as in Ulsan or Seoul) have not been replaced. Busan’s GDP growth has lagged behind the national average at times, and without new engines of growth, there’s been a sense of relative decline. The term “hollowing-out” is often used – as Busan’s young people and companies relocate, some neighborhoods and industrial parks have emptied out. This was one reason the Expo 2030 bid was so important to local leaders: they saw it as a catalyst to revitalize the regional economy and infrastructure. The failure of that bid was a blow to morale, revealing a perception that Busan lacked the global clout or polish of competitor cities (Busan only secured 29 votes versus Riyadh’s 119 in the BIE vote). Some analyses blamed strategic missteps in promotion, but underlying it is the reality that Busan must catch up in economic dynamism. Unemployment and underemployment among youth in Busan have been higher than in Seoul, feeding the migration issue. If Busan cannot create high-paying, future-oriented jobs, its ambitious plans (such as attracting AI and robotics firms) may falter. This is a structural weakness that requires long-term remedies, such as aligning the education and workforce and fostering startups.
Seoul-Centric Bias and Visibility: A related challenge is overcoming Seoul's dominance in Korea’s political and economic life. Policies, funding, and corporate headquarters are heavily Seoul-centric. Despite rhetoric about balanced development, critics say Busan and other regions often get second priority. This can affect Busan’s visibility on the international stage – global investors or events might default to Seoul unless Busan makes a special effort. For instance, major foreign business delegations often visit Seoul and perhaps Incheon’s Songdo, but skip Busan. The city’s branding and marketing efforts need to work hard to combat the tendency to equate South Korea with just Seoul. President Yoon’s administration, after the Expo loss, emphasized it will continue investing in Busan to ensure balanced growth. However, Busan officials must keep advocating for their city. The “why not Busan?” question sometimes arises from this Seoul bias – e.g., if a big project or office ends up in Seoul instead of Busan, local media will ask why not Busan? Changing this mindset requires Busan to demonstrate its capacity and advantages continuously.
Infrastructure Gaps and Urban Issues: While Busan has good infrastructure overall, some gaps represent weaknesses. The most cited is the current airport (Gimhae Airport), which is small and nearly at capacity, with limited long-haul flights. Until the new Gadeok Airport is realized, Busan’s international air connectivity remains constrained, which can deter investors and tourists (many still have to take an extra domestic flight or a 3-hour train from Seoul to reach Busan). Another challenge is urban transit in Busan – its hilly terrain and waterways make well-connected transportation planning complex. Some parts of the city are not as well-connected by metro lines, and traffic congestion can be an issue in the central areas. Busan’s urban regeneration is a work in progress: pockets of urban decay remain, such as old port warehouses and aging hillside residential quarters. Although projects like the North Port redevelopment are targeting these, they will take time to complete. Furthermore, climate and environmental resilience is a looming concern – as a coastal city, Busan is vulnerable to typhoons, coastal flooding, and sea level rise. The port and low-lying areas have experienced flooding during extreme storms. This means Busan must invest in climate adaptation (sea walls, drainage, etc.) to secure its future – failing to do so would be a significant weakness given the sustainability focus today.
Recent Setbacks in Global Competition: The loss of the World Expo 2030 bid revealed weaknesses in Busan’s global strategy. Analysis pointed to a late start in lobbying and perhaps an overestimation of support. It highlighted that Busan, despite enthusiasm, lacked sufficient international alliances or a persuasive narrative compared to rivals. The episode caused local disappointment and even political fallout (with criticism of officials for not delivering). While the city is already moving forward – considering a 2035 Expo bid – the incident showed that Busan must sharpen its international outreach and brand appeal. It needs to communicate better “why Busan” on the world stage, learning from this failure. In practical terms, the Expo loss also means some anticipated investments may slow: specific infrastructure projects were tied to the Expo plan and now need to be justified on their own merits. The city must ensure those plans (for example, smart city zones and cultural venues in the port area) still move forward to avoid reinforcing the narrative that “Busan can’t deliver.” In short, Busan has to overcome any perceptions of weakness by demonstrating concrete progress and strategic savvy in attracting global opportunities.

Why not Busan? These challenges – demographic, economic, perceptual – are real, but they are not insurmountable. In fact, Busan’s leadership is aware of them and has already launched initiatives to tackle each issue, from youth employment programs to large-scale urban renewal. The presence of these weaknesses means that Busan’s development strategy must be highly proactive and inclusive, ensuring that growth benefits residents (to stem out-migration) and that the city differentiates itself globally.

Strategies for Busan’s Development: Connecting, Innovating, Prospering

To fully leverage the opportunity presented by APEC 2025 and to achieve the vision of “Building a Sustainable Tomorrow,” Busan should pursue a multifaceted development strategy. This strategy should harness Busan’s strengths, mitigate its weaknesses, and align with broader global trends and APEC priorities. Below are key strategic recommendations for Busan’s policymakers and stakeholders, organized under the themes Connect, Innovate, Prosper – reflecting both the APEC 2025 theme and core pillars of sustainable urban growth:

1. CONNECT: Enhance Infrastructure and Regional Integration

Prioritize World-Class Connectivity – Busan must cement its status as a premier connectivity hub in Asia. This includes physical infrastructure (ports, airports, rail) and digital connectivity (telecommunications, data networks). The ongoing port expansion (Jinhae New Port) should remain a top priority, with a focus on timely completion and deploying smart logistics tech to improve efficiency and environmental performance. By 2045, Busan Port’s capacity will nearly double, matching the scale of the world’s top ports, which will attract more shipping lines and commerce. The city should work closely with the Ministry of Oceans and Fisheries to ensure this expansion keeps pace with global standards (automation, low-carbon operations). Likewise, the Gadeok Island New Airport project must stay on schedule for a late-2029 opening. Once operational, the new airport will directly connect Busan to many APEC economies, boosting tourism and investment. Busan can prepare by developing new tourism products and business districts around the airport (e.g., an aerotropolis concept with logistics parks and hotels).

On digital connectivity, Busan should leverage its status as a high-tech testbed (e.g., the blockchain regulatory sandbox) to roll out next-generation networks (5G/6G, Internet of Things in public infrastructure). A connected city is also more attractive to foreign businesses. Integration with regional neighbors is another aspect of connectivity: Busan should strengthen transport links with Ulsan, Pohang, and Daegu to form a more integrated southeastern economic zone. Projects such as improved expressways, intercity metro connections, or cooperative industrial zones can make the region function as a single mega-hub that competes with the capital region. Busan’s port could better serve Ulsan’s manufacturing export needs, for instance, through dedicated freight rail lines or coastal shipping services. Additionally, Busan can initiate more international sister-city collaborations focusing on connectivity and smart infrastructure. Sister ports (like Shanghai, Singapore, Los Angeles – all of which Busan has relationships with) could jointly develop “green shipping corridors” to reduce carbon emissions in line with APEC’s sustainability goals. By championing such initiatives, Busan positions itself as a forward-looking connector city in the region.

2. INNOVATE: Foster a Dynamic, Knowledge-Based Economy

Accelerate Industry 4.0 and Smart City Projects – Busan should aggressively pursue industrial transformation through innovation. The city’s plan to adopt Fourth Industrial Revolution technologies across sectors needs to be implemented with clear milestones. For example, traditional manufacturers in Busan could be supported to adopt robotics and AI for higher productivity. The local government can expand tech incubators and R&D grants in areas aligning with Busan’s strengths: maritime technology (like autonomous ships, port logistics software), green energy (offshore wind power maintenance, hydrogen supply for port machinery), and urban solutions (smart water management, as flooding is a concern). One signature initiative is the Busan Eco-Delta City (EDC) – a national pilot smart city district being built from scratch in Gangseo-gu. This project should remain a showcase of innovation: it integrates cutting-edge tech for water management, zero-energy buildings, autonomous vehicles, and AI-assisted living for citizens (especially elderly). Early phases, like the Smart Village with 56 smart homes (already housing residents), are yielding lessons that can be applied citywide. Busan should ensure that successful innovations in EDC (e.g. hydrothermal energy use, AI health services, smart mobility) are scaled up to the rest of Busan over time, thereby transforming the urban fabric. The city’s pursuit of innovation also involves human capital: partnering with universities to align curriculum with future industries (for instance, more programs in marine engineering, AI, and content creation). Encouragingly, Busan plans to create hubs for robotics and AI industries – possibly by building innovation parks or offering tax breaks to tech firms. These should be expedited to signal that Busan is open for high-tech business. Startups and creatives can be drawn by emphasizing Busan’s affordable living costs compared to Seoul and its unique coastal lifestyle, as part of an overall talent attraction campaign.

Promote a Culture of Entrepreneurship and Globalization – To truly innovate, Busan needs to cultivate an environment where new ideas and businesses flourish. This means reducing red tape for startups, expanding co-working spaces, and providing venture funding (perhaps through a Busan Innovation Fund co-financed by government and local chaebol companies). The city can leverage APEC 2025 as an opportunity to host an APEC Innovation & Startup showcase during the summit period, inviting entrepreneurs from APEC economies to Busan to pitch ideas, hack solutions for smart ports or sustainable cities, etc. Such an event would put a spotlight on Busan’s creative energy. Busan’s numerous universities could increase programs that encourage student entrepreneurship, keeping more youth engaged locally. In addition, Busan should further internationalize – attract foreign institutions (like international schools, research labs, cultural centers) to set up branches in Busan. This increases the city’s global connectivity beyond commerce. For instance, Busan could aim to host more international conferences (leveraging its convention facilities) in fields like marine science, climate change (it already hosted the 2025 World Climate Industry Expo alongside APEC’s Energy Ministerial), and film/media. Each such gathering adds to the city’s innovative milieu and global linkages. A concrete goal could be to become the “APEC Innovation Hub” – the city that leads within APEC on smart city development, port digitalization, and creative economy initiatives. Given APEC’s focus in 2025 on digital society and sustainability, Busan could propose pilot programs (with APEC support) such as a cross-border fintech sandbox or an APEC Creative Content exchange centered in Busan. By positioning itself at the forefront of innovation agendas, Busan will attract attention and resources to fuel its own growth.

3. PROSPER: Inclusive and Sustainable Growth for Long-Term Prosperity

Invest in People – Talent Retention and Quality of Life: Prosperity must be about people. Busan’s development plans will mean little if its population continues to drain away. Therefore, a centerpiece of Busan’s strategy needs to be talent retention and attraction. The city government should intensify programs that connect local graduates to local employers – for example, expanding internship and mentorship programs in Busan-based companies, and publicizing success stories of careers in Busan. As one returning young professional noted, Busan can offer a good quality of life with lower living costs than Seoul. This cost advantage (more affordable housing, cheaper groceries and dining) should be advertised as a selling point for settling in Busan, especially as remote/hybrid work becomes common. Moreover, Busan should increase support for startups and SMEs so that ambitious youth see opportunities to create their own ventures locally rather than moving away. Creating a vibrant urban environment is also crucial: the city’s ongoing urban regeneration – turning old docks into cultural spaces, rejuvenating downtown streets – should continue to make Busan a more attractive, “hip” city that young people want to live in. Busan’s success in reviving areas like Yeongdo (with cafes and culture replacing derelict factories) shows how urban renewal can change perceptions. The local government can incentivize creative businesses (art studios, design firms, tech incubators) to move into these regenerated zones with rent subsidies, creating funky districts that retain talent (similar to how disused warehouses in New York or London became startup hubs).

Additionally, addressing the aging population is vital for inclusive prosperity. Busan can become a model “age-friendly city” by deploying technologies and services that help the elderly live comfortably – for example, smart healthcare services (like the AI-assisted health monitoring in Eco-Delta City) and community programs to keep seniors active. This not only improves quality of life but can spin off new industries (health tech, elderly care services) providing jobs. Busan’s prosperity strategy should ensure that growth is inclusive across ages and communities. For instance, training programs can help middle-aged workers from declining industries re-skill for new jobs (Busan has initiated such efforts for those in their 40s-50s, often called the “sandwich generation” facing job insecurity). An inclusive approach will also involve balanced development within Busan – bridging the gap between well-off areas like Haeundae and more deprived districts. The North Port redevelopment is planned not just as a commercial project but to create cultural and leisure spaces for citizens; such projects elevate livability for all residents. When people feel their city is improving their daily lives, they are more likely to stay and contribute, creating a virtuous cycle of prosperity.

Green Growth and Resilience: Sustainability is integral to “prosperity” in the APEC theme. Busan’s growth must be environmentally sustainable and resilient to climate impacts. The city should continue its push to be a “green city that always thinks of the environment,” as its vision states. This means expanding public transport and electric mobility to reduce emissions (perhaps aiming for a fully electric bus fleet, given Busan’s dense urban core). Busan can also pursue renewable energy aggressively: the strong winds off its coast and nearby Ulsan have led to proposals for large offshore wind farms – realizing these would create green jobs and power industries cleanly. The port itself should implement green port measures: shore power for ships to cut engine emissions, LNG or hydrogen fuel facilities for ships, and extensive recycling of waste from ships. The APEC Energy Ministers’ Meeting held in Busan in 2025 produced a joint statement emphasizing cleaner energy and climate resilience – Busan can take up that mantle by transforming into a low-carbon port city leader. On resilience, city planning must adapt to rising sea levels and extreme weather. Building sea walls or surge barriers in vulnerable coastal spots, restoring wetlands as natural buffers, and upgrading drainage infrastructure are all important. The smart city systems being introduced can help here too – e.g., IoT sensors for flood early warning, as mentioned in Busan’s smart city initiatives. Busan could collaborate with other APEC coastal cities (like San Francisco or Jakarta) on exchanging best practices for climate resilience, perhaps through an APEC urban resilience network. By mainstreaming sustainability into its development, Busan not only safeguards its future but also enhances its international reputation as a responsible city. This can attract environmentally conscious investors and events (for instance, future UN climate conferences or green investment forums could consider Busan as a host if it has a strong green profile).

Leverage Global Networks and Branding: Finally, Busan’s strategy for prosperity should include a strong global engagement and city branding component. The city should capitalize on APEC 2025 to forge lasting networks. For example, Busan could establish an “APEC Cities Forum” in which major cities from APEC economies meet periodically (Busan can initiate this as a follow-up to 2025) to discuss urban innovation and trade facilitation. This would keep Busan plugged into international policy dialogues. Continuing to bid for global events is also worthwhile – Busan should not be discouraged by the Expo result. Instead, learn and refine the approach for future bids (e.g., possibly bid for Expo 2035 as hinted, or other events like the Summer Youth Olympics or large congresses). Each bid, win or lose, raises Busan’s international profile and spurs local improvements. Busan’s branding should emphasize its unique identity: a historic yet modern ocean city bridging continents, a city of dynamic culture and innovation. This narrative can be promoted via international media – for instance, leveraging the buzz around the Xi-Trump meeting in Busan to tell Busan’s story to global audiences. Busan’s leadership, including the mayor and local businesses, should continue proactive outreach: attending global forums, twinning with cities, hosting roadshows for investors abroad. The goal is to entrench Busan in the worldwide consciousness as “the other great city of Korea”, a must-visit and must-invest place after Seoul. Over time, as Busan transforms through the above strategies, it will bolster this brand organically – a city that not only hosts high-level meetings but also exemplifies the summit’s very theme of connectivity, innovation, and shared prosperity.

Conclusion

Hosting APEC 2025 has offered South Korea a platform to distribute growth and showcase multiple cities, and Busan stands out as a prime beneficiary and key player in this effort. The convergence of world leaders in Busan – from ministerial delegates in the spring to Presidents Xi and Trump in the autumn – has shone a spotlight on the city’s capabilities and potential. Busan has used this moment to press forward with critical projects like its port expansion and smart city plans, aligning with APEC’s focus on sustainable, innovation-driven growth. In comparison with Seoul’s dominance and Incheon’s rise, Busan’s experience illustrates both the challenges of a regional metropolis and the opportunities when national attention and global engagement intersect. By examining “why not Busan” as well as “why Busan,” we recognize that Busan’s journey to revitalize itself is not without obstacles – yet the city’s inherent strengths provide a strong foundation for success.

Looking ahead, Busan’s development will require persistent strategic focus: connecting infrastructure to opportunity, innovating industries and governance, and ensuring prosperity reaches all citizens. The APEC theme “Connect, Innovate, Prosper” resonates strongly with Busan’s own roadmap. If Busan implements the recommended strategies – enhancing connectivity (from ports to people), fostering an innovation ecosystem, and promoting inclusive, green growth – it can emerge as Northeast Asia’s model city for sustainable development. This would not only vindicate Busan’s selection for high-profile meetings but also validate the city’s aspirations on the world stage.

For Busan’s policymakers and partners, the task now is to seize the momentum of APEC 2025. The summit’s legacy for Busan should be more than memories of motorcades and meetings; it should be a tangible acceleration in Busan’s transformation into a truly global city. With concerted effort, Busan can turn the attention and opportunities from APEC into lasting gains – increasing its appeal to investors, keeping its young talent at home, and contributing even more to South Korea’s and the region’s prosperity. In doing so, Busan will answer both “why Busan?” and “why not Busan?” with the same outcome – by becoming a city that is impossible to overlook in the making of a sustainable, connected future for the Asia-Pacific.