The process of economic globalization has changed the access to technology and the conditions under which strategically important technology can and will be generated and transferred, and then not necessarily in favor of the technologically advanced nations. In many countries, access to core technological capabilities is regarded as the most important factor in strengthening national competitiveness. This shift has affected South Korea to a great extent, because the nation cannot develop further without inventing its own core technology. Inevitably, this requires vast amounts of capital and takes a long time, but not to be outdone South Korea has invested heavily in high?tech areas such as IT, BT, ET, and NT. To the extent that the country is successful, technological and economic convergence can be achieved. In line with this new trend of the global economy, building innovative local clusters has become one of the core strategies to develop the nations further. In particular the role and potential of localized innovation processes within clusters have been attracting considerable interests among scholars and policy makers alike. It may not be unique that Seoul Metropolitan City has transformed ts old industrial area mainly based on low?tech to a high?tech area. However, it may be useful to look at clearly why it grows so rapidly. Arguing that it is imperative to actively react to the process of economic globalization, this paper looks at an attempt to restructure existing industrial complexes, turning them into innovative clusters at local level. This contribution also tries to identify the tasks and strategies necessary to build locally embedded innovative clusters and how to best analyze these. Keywords : Innovative cluster, transition, globalization, low?tech, high?tech, economic growth SUMMARY 1 Chapter 1. Introduction 3 Chapter 2. Theoretical Backgrounds 6 Chapter 3. Industrial Complexes in Korea 10 3.1. Background 10 3.2. Seoul Digital Complex 11 3.3. Development Path and Characteristics 15 Chapter 4. Successful Factors for Seoul Digital Complex 18 4.1. Background 18 4.2. Low Level of Regulation and Cost 18 4.3. Comparative Competitiveness in Location 19 4.4. Network Effects 21 Chapter 5. Analysis on Seoul Digital Complex 22 5.1. Background 22 5.2. Strength of Seoul Digital Complex 22 5.3. Weakness of Seoul Digital Complex 23 5.4. Opportunity of Seoul Digital Complex 23 5.5. Threaten of Seoul Digital Complex 24 Chapter 6. Conclusions 27 References 29 URL : http://www.stepi.re.kr:8080/app/report/rss.jsp?cmsCd=CM0013