The paradigm of the global economy is evolving from the industry-oriented economic system of the past to knowledge economy and creative economy. With the global financial crisis, the past development models focused on the manufacturing or knowledge/information industries are now converting to a creative economy. In other words, it is changing into an economic paradigm where cultural soft power based on human emotion, creativity, imagination and individual experiences are the core to competitiveness and growth.

In order to overcome its limitations of corporate strategies and industrial structures, as well as limitations of its employment structure, it has made an attempt to convert to economic industry policies in the future. This study examines the case of Japan pursuing policies to realize a value creation economy and to deduce implications for Korea.

As the regional development paradigm shifts from a knowledge-based society to a creative society, the level of contribution to regional development by creative industries that create wealth by utilizing intangible resources such as individual creativity, sentiments and imagination is growing. In order to become a model city of urban regeneration using cultural arts and creativity as a medium for a true creative city, and to reap success as an urban regeneration strategy as an alternative for past urban development planning, there is a need to benchmark the case of Japan’s creative city and examine their success factors.

The research was conducted through literary reviews on related data of Japan and Korea, as well as interviews with experts.

The contents of creative economies were introduced and the reason for the voicing of value creation economy focusing on Japan and the background for creative economy and creative city were examined.

In the creative economy contents of the Japanese industry, changes of Japan’s industrial policies were introduced, and as part of the new industry policy the following were examined. First, finding potential domestic demand and acquiring global markets through value creation. Second, value creation through various human resource capital. Third, science technology and human resource policies to realize creative economies.

Afterwards, the concept of creative cities and the creative city cases of Kanazawa and Tsuchiura cities were introduced.

In each case of pursuing creative economies, first, the system for pursuing creative economy by local governments, second, the direction for pursuing creative economy by companies, third, work-life mix, fourth, NPO through public regeneration/creation, and fifth, system for pursuing creative communities were examined.

For implications in pursuing creative economy in Korea, first, pursuing ‘social demand creative’ creative economy (① economic environment and importance of ‘social demand creative’ creation, ② differentiation of product competitiveness, ③pursuing creative strategies according to global trend changes), second, promotion of creative economic in the cultural sector (emotional value creation, ②promoting creative economy in the cultural sector, ③fostering creative economy through cultural exchange), third, development of human resources and reshuffling financial services and social infrastructure (①value creation management, ②creative human resource development and creative education by universities, ③reform in financial services, ④construction of social infrastructure, ⑤economic system that promotes creation), fourth, increasing competitive edge against Japan, fifth, direction of establishing creative city (①attracting creative human resources with individual qualifications and establishing creative environment, ②will and leadership to successfully lead creativity, ③assertive use and innovation of cultural heritage resources, ④construction of dynamic network and trust, ⑤pursuing community participation and cultural governance strategy, ⑥hardware strategic factors, ⑦approach method for establishing creative city), and sixth, restoring inter-personal relationships and cooperation through the community and experts to increase base for creative culture were proposed.

Japan's economy have recorded a real growth of 1.6% CAGR from 2002 to 2007 and seemed to grown out from the low growth trend continued since the 1990s bubble burst but as Japan underwent global financial crisis in 2008, the great earthquake of East Japan and Fukushima nuclear accident, a long term economic downturn is continuing thus the need for value creative economy is emerging strongly.

Japan, despite the threatening situation of the previous industries due to aging and long term depression, etc, are pursuing a variety of industrial policies in the sense of deriving a new growth engine while sustaining the previous competitiveness. Although the new industrial development strategy of Japan is entering the early phase of industrialization, they are focusing on the sectors with real possible growth as major industries within a short period time considering the future growth. In the creation strategy of new industries, action programs and policies for achieving the goal of each one's future on the 3 major industries(high-tech new industry group, demand-response industry group and local regeneration industry group) are specified. The development sectors of new industrial creation strategy has inherited and developed into 'a new economic strategy' and 'industrial structure vision (2010).'

‘In order to secure the world market by excavating the potential domestic market through 'value creation', first, the transition into polygonal industrial structure from single structure should be promoted by supporting new industry creation. Challenging industries such healthcare industry, child care support services, human resources industry and new energy industry, etc, are the sectors having social demand thus institutional reorganization and policy support should be made towards the formation of new markets. Strengthening of competitiveness through policy support on the high-tech industry that becomes the source of new competitiveness and the creative industry utilizing the advantage of Japan should be implemented. In addition, Japan should promote the advancement of industries such as agriculture, forestry, fishery and distribution in order to vitalize the consumption while enriching people's lives. Also, reorganization of local business environment should be made through negotiation with opposing government and at the same time the marketing, finance and information should be supported in order to secure the new markets. Furthermore, by promoting the institutional reorganization to facilitate the domestic reflux of overseas profit, it is being incorporated into the domestic growth. In order for the companies to raise the profit by taking advantage, company's competencies should be mobilized and the price competition should be converted to value creative competition. Innovation for creative new industries and new businesses should be accelerated and the 'future pioneering research projects' for systematically promoting the basic studies and studies towards commercialization should be made.

For creative economy, various countries of the world are moving towards the creative industry. The industrial sectors included in the 'Cool Japan Strategy' promoted in Japan covers a wide range of sectors such as contents(animation, cartoons, movies, music, etc), fashion, design, food, housing, traditional culture, local specialties and tourism, etc. The Cool Japan Strategy has established itself as national strategy sectors centering on the contents, food and tourism, etc from 'industrial structure vision' and 'new growth strategy' announced in Japan on June 2010.

On June 8th 2010, 'Cool Japan Room" was established inside the Ministry of Economy, Trade and Industry for facilitating the entry of cultural industry into the world which is the strategic industrial sectors of Japan as well as actively promoting the policies for distribution and human resources development of domestic and abroad. The cultural industries of Japan such as design, animation, fashion and movies, etc are expected as one of the strategic sectors that support the economic growth of Japan. As the window of policy on the cultural industry, it is associated with the relevant government and private parties in domestic and abroad, and conducts the distribution of Japan's cultural industry due to development of overseas market and hosting events in domestic and abroad, and fosters the creative talents in conjunction with the universities and talent matching. For the deployment of Cool Japan to the overseas, the system that sells the goods and contents of Japan to the world should be further strengthened, and a variety of goods and contents existing in various parts of Japan such as traditional crafts, produce, fashion, interior, art, design, pop-culture and regional lifestyle, etc, should be rediscovered, exported and made into a flow of connection for attracting tourists.

To 'create value' by 'various human capital', an environmental reorganization where a variety of talents can exert maximum ability according to each given environment is important. In order to enhance the company's competitiveness, a strategy for fostering talents to maximize the organizational performance while supporting the demonstration of ability by discovering a variety of talents are needed. It is creative opportunities for youth to build international experiences while promoting the creation of convergence meetings and facilitation of industrial association formed with knowledge and talents of other sectors. The creation and promotion of 'human resources' industry is conducted in order to create the flow of new labor movement where leading talents with ability and experience can play in the new growth sectors by receiving reeducation. In order to promote the employment of young people, a faithful vocational training and the elimination of mismatch with small to medium sized enterprises are supported. Facilitation of reeducation for middle-aged and elderly people with ability and experience, creation of venture enterprises for talents within the company, and policies on reorganization of good working environment for female, elderly and disabled are being promoted.

The basic plan for the 4th scientific technology announced on August 19th 2011 targets the years from 2011 to 2015, and the main topics are; scientific technology of Japan to complete its role as part of the policy for the social development of Japan and furthermore, proposing the innovative policy for scientific technology of Japan in order to contribute to the development of scientific technology of the world. In the level of strengthening the common ground for strengthening the industrial competitiveness, an open strategy suitable for generic technology required for the development of materials and advanced materials with international competitive technology having high-value, high market share and promising future growth is promoted.

The basic plan for developing the vocational skills are being collected and enforced in order to deploy the policies for faithful public vocational training due to association with industry, government and academia, development of human resources utilizing private education and training, and the realization of technology respected society. Currently, the 9th basic plan for the development of vocational skills(2011-2015) are being established and implemented. The main contents are structuring the frame of development policy for vocational skills in order to expand the job security, deployment of the vocational skills development corresponding to the supply and demand of labor trends, securing of vocational education and training opportunities according to the characteristics of workers, development of vocational skills of manufacturing workers and promotion of techniques, and reorganizing the promotion system of vocational skills development policy. The Ministry of Education, Culture, Sports, Science and Technology has established and implemented the 'The Education Reform Plan for the 21st Century.' It is promoting the educational reform in the sense that it must secure the dominance of politics, economy and education in the rapid economic growth of surrounding nations including Korea and China and at the same time of needing the development of human resources who will lead the future society. To achieve this, the restructuring of higher education institutions such as incorporating the National University as well as selecting and supporting the core research bases through 'the 21st century COE program' are being made.

The concept of creative cities is based on the belief that culture can play an important role in urban renewal. In recent years, in regional development promotion policy, the rise of the 'culture', in other words, the phenomenon called the rebuilding of local and city policy by the power of culture is rising. Especially, as the world underwent economic crisis and sever financial difficulties, for urban regeneration, an independent solution away from conventional development-type policies are been sought. The local governments are trying to secure the identity of new city brand that binds the local residents and establishes comparative advantage or competitive advantage with other regions by maximizing the use of their resources.

1) Examples of creative city in Kanazawa

Kanazawa of Japan is a representing city which has developed the traditional industry and cultural art resources, rather than as local incidental residue, but as the driving force of regional development by the local residents as the principle(Jung Ah Ryu, 2009: 259). They are sublating the uniform policy projects and inefficient budget commitments and promoting the local independent policy projects by meeting the flow of international changes with local conditions. Although a creative city do not necessarily need to be a cultural city, but on the other hand, in order to creatively solve various problems of the city, an understanding on the unique cultural art of that city is essential(Sang Oh Im, 2008: 17). The cultural contents which becomes the basis of cultural industry is emerging as a key area of knowledge and information society, and basically the cultural contents are products derived from the culture and art sector and serves as the intermediary goods of cultural contents industry.

2) Example of creative economy in Tsuchiura

For the natural environment conservation, the central government and local governments are focusing on the promotion of supporting the infrastructure reorganization, academic studies, related researchers and establishments. In the future, combining the natural environment conservation with daily lives of citizens by the deployment of businesses that connects the natural environment protection groups and organizations with local area has been raised as challenges. While reaffirming the richness of nature, even if something special are not made, a business focusing on the natural environment and specialty inherited from ancestors are being promoted. The future direction of Tsuchiura city is to promote the conservation of natural environment, development of regional industry, expansion of population interchange, interconnection of citizens in the community, child care support and expansion of community welfare such as elderly welfare. By setting the goal as 'echo lifelong learning city', each realization potential can be increased. Currently, they are at the phase of raising the standard by conserving the environment in the traditional natural environment zone, evolving the type of 'coexistence' that forms the balance as the role allotment which is oriented towards the expansion of population interchange due to industrial vitalization, providing the formation of community with information and knowledge for environmental conservation through association and collaboration with each zone, and with 'coexistence' of obtaining the information and experience of the people gathering into the local society.

With the decrease of future population and tax revenues, each local government is faced with the need to review whether the project is worthy of investing the public funds and who will be operating it(direct, referral, assisting, etc). Thus various attempts are being made and during such process, new changes that include creation of new jobs are occurring. For representing examples of creative economy promoted in the level of local governments, there are 1) the case of Kamiyamamachi: satellite office, 2) the case of Onozo city: integrated administrative assessment system, and 3) the case of New Industry Research Organization(NIRO) which is a public foundation.

With the emergence of industrial structure innovation and IT social media, and with the arrival of changing waves in the future, it is expected that enterprises will be faced with a situation of recreation. If the electric cars become the mainstream, the previous automotive super enterprises will be difficult to maintain the size. Despite knowing but difficult to change, how will they cope with the reality of being unable to move because of excessive size? It requires reevaluation of administrative and legal framework and fundamental changes enough to change the whole OS of the society beyond a simple upgrade.

Although having individualized products and system features, advanced functions and high reliability is an important responsibility of the enterprises, the challenges which are faced by many countries and regions are becoming complicated challenges which cannot be truly solved with such individual devices and systems. A technology that accumulates and interprets the various phenomenon of the society in various angles as a database is being developed. The creative social innovative projects are the shortcut of building a sustainable society.

Currently, where the evolution of technology innovation and new communication techniques are accelerating and emerging markets are expanding rapidly, an opportunity to secure employment and tax revenues by promoting the incorporation of high value-added venture companies and establishing the business model commonly used in the world utilizing the financial resources of Japan has arrived. The proposed promotion direction according to such is as follows. 1) Promotion of platform enterprises and establishing high value-added venture companies, 2) introduction of regulatory reforms for growth and dynamic resources, 3) establishing national brand and organizational reform of intellectual property agency, 4) university reform and fostering of challenging leaders, and 5) formation of autonomous regions by founding high value-added small to mid-sized enterprises and venture companies.

'Work, life and mix' refers to one of the work methods suitable for mothers with children and it is the concept which becomes the basis of 'children-friendly work' being supported by the mothers themselves. In the future, a time will come where trying not to bring 'personal reasons' to the company will be difficult. Therefore, it is effective to start creative flexible companies and society system that can cope with personal reasons. The solutions can be found through cooperation and role allotment between mothers and companies and by not just concluding on the issues of mothers as individual assignments but raising it as local issues.

'Limitations on budgets' due to economic recession after the bubble economy and 'difficulties of identifying the needs' due to diversified and sophisticated needs of citizens are occurring. Not just entrusting the 'public' to the administration based on such background but the activities of NOP(nonprofit organization) that deploy voluntary activities for citizens to solve the social issues by themselves are being raised. NPO has quickly and flexibly made a major contribution in the revival of affected areas where the administration cannot respond and since then in 1998, the NPO law was enforced. The role of NPO is to accurately identify and predict the future while including the current and potential social issues and challenges, and proposing and creative new social aspects, values and systems.

As the opportunities for NPO to be active in society are growing, the movements that require the system for assessing NPO is also becoming active. In order to support the NPO corporations, NPO tax reform of 2011, amendment of NPO Act and the setting of accounting standards for NPO corporation was carried out.

In the future, many challenges such as natural environment conservation, development of local industry, expansion of population interchanges, citizen's interconnection in the community, child care support, elderly welfare and substantial local welfare, etc, are being raised. By setting the goal as 'eco lifelong learning city', it is important to increase each realization potential.

Changes in people's values, changes of work, style(working method), life, style(living method) and changes in demand are taking place. The 'exchange' business having a completely different quality than the previous tourism by providing place to experience and opportunity to purchase through the 'exchange' with 'liver' and not just introducing a cheap store to the consumers are gaining popularity.

To the regions and communities, the type of learning called the effective 'community service learning' introduced as lifelong learning, provides sense of accomplishment and enables the people to know the desired role in the local community by interchanging with a variety of people beyond the generation, realizing the local issues in the surround area, thinking about what they can do themselves and by actually working at the site, they will be able to give the meaning on the learning by themselves with higher desire to learn.

The influence of social and economic environment on the realization of creativity is increasing(柳川範之, 2009). First, if there is no profitability outlook due to increased development costs, the promotion of development becomes difficult. Second, it is not easy to identify what creations are needed due to complexity and opacity of social environment. Therefore, the creation of future 'social demand generation type' is required.

It is being made so that selection of technology comes first before being exposed to the market competition and such selection is made by the government and standardization agencies. Since the victory or defeat is concluded during the initial phase of technology development, it is important to form the camp during the development phase with development personnel, a user and a secondary user. Here, there is a need to add the social scientific perspectives. A strategy for creative a better environment is also needed. It requires providing of talents for standardization agencies, securing international bargaining power and structuring of organizational models for the consortium to function properly.

Since the demand structure and the social system of the world are fundamentally being changed, the creative economy also should be in line with those changes with preemptive modification on its directions. Due to the population explosion in Asia of its middle class, the demand for consumer durables and item of personal preference, etc, are sharply increasing. Therefore, such points should be noted for the domestic creation strategy. The integration of smart devices such as tablet PC and smart TV, etc with cloud service is expected to trigger bigger changes than the changes brought by the smartphones(Sung Geun Im, 2012: 3-37). Such smartphone revolution is providing important social values such as efficiency, diversity, opportunity, universality, etc, beyond the mere convenience and creative new business models. As the society becomes advanced and progress into knowledge-based society, the scientific technology is acting as key driving force for economic growth, industrial development and solving welfare and social issues. Among them, scientific technology related life extension such as nano, bio and gene, etc, are emerging as the future growth engine.

In terms of economy, the value creation is changing from wealth to service and the production of experience, and the 'impression' becomes the core of the experiential value(同志社大学, 2010). The elements of experiential value consists of ①joy, ②artistic value, ③non-daily value and ④educational value. The creation of such experiential value will be expanded through the five senses of human.

Recently, the culture is developing through the fusion with technology and economy. Especially, the information communication revolution represented by digitization and networking has changed the speed and range of cultural diffusion(Sung Geun Im, 2012: 3-37). The diversity of culture is also in the increasing trend. As the contents industry are recognized as the high-growth, high value-added and with high employment creation effect, the countries around the world are proposing promotion policies.

With the rise of cultural power and demand on cultural exchange and cultural industries of Asia, it is predicted that the axis of mental, economical and cultural power of the 21st century international society will change from the western regions to Asian regions along with the shifting of manufacturing-centered industry to knowledge and sensitivity industry(Jung Sook Jung, et. al, 2012). A some sort of exotic curiosity of people around the world on the culture and civilization of Asia including Korea, and interactive cultural communication and sympathy phenomenon such as Chinese wave, Japanese wave and Korean wave within Asia is on the path of continuation and expansion without severance.

In the global era, a shifting of paradigm is being made from one-way exchange to bidirectional transversal exchange. Accordingly, the cooperation entities of cultural exchange are also changing from the two countries to multinational countries and from government-centered to private-centered. At the same time, the exchange contents have also expanded from traditional art to modernㆍinterdisciplinary art, and not only for traditional art but it has expanded into the tourism and cultural industry products. The advancement of information communication technology brought development of new media and platforms enabling the cultural experience of various countries in real-time basis during daily lives allowing to interact with the people of the world. In addition to face to face approach, as real-time conversation and sympathy with the people of the world was made technically possible, a new definition and attempts were needed on the concept and methods of cultural exchange. Also in cultural exchange, as the entity was shifted from the government-centered to private-centered, the governance involving various entities, in other words, it is being evaluated as an advanced system of governance between private and government entities which are not led by the government.

Enterprises are social organization that creates value by strategic systematization of intellectual management resources and strategic involvement on uncertainty. Therefore, it requires forward looking strategic risk management thinking in financial indexical management. The evolution rate of enterprises and evolution rate of human assets need to be matched. The enterprises should be able to socially maximize the value creation.

In the transition period where the past growth paradigm is losing its dynamism, for a sustainable economic growth, a policy for enhancing the contribution of total factor productivity of economic social system is required, and to achieve this, development of excellent human resources and technological innovations, etc, are positioned as an important policy issues. Therefore, the advancement of backward system and practices of social base while improving the competencies of each individual is important than anything.

The investment on human resources include educational system and policies for the development of human resources, vocational training system and policies for supplying proper technology and functions required by the industry, and workforce policy at the level of industry and enterprises for placing a person with the right talent in the right position. Active attention and establishment of policy on the development and deployment of competitive talents required in the knowledge-based economic society is needed.

Although policy alternatives such as inflow of foreign labor, enhancement of economic activity participation of elderly and females, extension of retirement age, etc, are important, the dominant outlook is that overcoming the growth recession due to aging only with quantitative growth strategy will have its limits. In order to mitigate such growth recession, an enhancement of labor productivity and total factor productivity through accumulation of human capital, research and development, and technical innovations, etc, are needed.

The crisis and challenges of Korean economy is reforming the previous paradigm of human resource development under the development-economy centered on manufacturing and export into a new paradigm of human resources development that can cope with knowledge-based economy and global competition, where in its center, is fostering competitive talents with quality in advanced industry structure(Ha Nam Bang, 2012).

Fostering talents with quality that can produce knowledge is the core strategy for national development. Here, the university should be the basis for creative unique knowledge and technology as the principal responsible for leading role and the growth engine of national development. In the future, in order to secure our competitive advantage in the 21st century in Northeast Asia, it requires pursuing of continuous innovation and upgrade in qualitative aspects of labor while coping with the crisis of aging in quantitative aspects of labor. Japan's educational system is made to organizationally link the educational front and industrial sites where the culture that emphasizes functionality and technology is positioned in the school's educational front thus the strength of Japan's economy comes from harmonizing basic science and manufacturing technology. Currently, Japan is seeking the advancement of vocational training according to the environmental changes in the labor market. The basis of innovation-led industrial development strategy is the improvement of technology innovation and productivity and to achieve this, the paradigm of human resources development must also change.

The selection of previous infrastructure and utilization of private vitality which needs to be sustained within constrained budget is required. Especially, the unit cost elevation is expected with the outlook on nationwide reduction of working age population. It needs to be overcome with the selection and concentration and by utilizing private funds.

The promotion of new union beyond the barriers of enterprises, industries and borders are required. Beyond the framework of enterprises, reorganizing of soft infrastructure that effectively combines the technologies and skills are demanded.

When looking at the characteristics of industrial competitive strategies of Korea and Japan, although the structural advancement and strategic new industry is similar, it is showing slightly different characteristics in its contents. Korea has a goal of becoming the world-class country by high value-adding through fusion and so forth (Cheol Cho, et. al, 2012). Japan's plan is to strengthen the position as the manufacturing powerhouse by connecting the previous manufacturing and materials technology with high-tech sector. The economic strategies of previous industries of Japan can be evaluated as taking relatively defensive measures. Monozkuri policy and small material industry strategy are weak in creative new values. Therefore, Japan's advantage regions are likely to be reduced due to the ongoing pursuit of Korea. Korea is emphasizing on the high value-adding through fusion and fostering of materials sector but realizing this still remains as a challenge. Already, in some high value-added sectors of IT, it has surpassed Japan, and in materials sector which is evaluated as being inferior to Japan, the demand is expanding based on the parts industry of Korea and through this, the development of materials industry in Korea is being promoted. Over the past 10 years, through the fostering strategy of parts and materials industry, Korea is getting closer to Japan except for the core parts. There is a high probability that Korea can expand into the sectors of materials occupied by Japan.

In the high-tech new industrial sectors, Japan is pursuing the development strategy in detailed core sectors forming complex competitive structures thus the positioning of Korea can be difficult. Because the development sectors of both countries are matching, Korea must create a niche market through the value chain within the product or through differentiation. Although for a short-term, the competitive structure of Korea and Japan is expected to change rapidly until 2015 thus efforts will be needed for adapting to such changes.

In the past, the focus on the growth of the city was based on where the enterprises were concentrated within the city and where the clusters were formed, but as the creative class that creates wealth with individual knowledge and creativity became the source of creation of the city, thus an interest on configuring the environment to attract the creative class or to provide the cities desired by them are increasing(Sang Oh Im, 2008). To be a creative city, a leadership with vision is required for willingness to successfully lead the creativity to act as increasing the productivity with new ideas. For the requirements of successful leadership in the digital age, the followings can be said to be required; a strong curiosity and imagination, skillful communication, cosmopolitan character of not being bound by one view of the world, understanding of complexity, sensitive to the range of human needs, cooperating with others as a leader and providing sources rather than following and leading the business with one's own idea, etc.

As shown in Kanazawa case, the cultural heritage resources should be well utilized. A successful creative city can be created by attracting the old culture into today's lives and by recreative as today's industry. In addition, the city environment itself should be recreated by creatively using the historical culture as well as protecting the cultural heritage within the city(Dong Jin Kang, 2008: 24).

For the development of creative industries, support for specialized creative enterprises, building of convergence center, providing a common space and a variety of convenience facilities are needed for the creative industries to form clusters. In addition, educational program should be established in order to foster creative talents.

Forming collaborative partnership and close network between each sector of society becomes the source of discovering innovative ideas and creative agenda of the city. It must be a network of dynamic communication for the public interest between the parties and not just a simple network for socializing.

For the regeneration strategy of creative city using the culture as the medium, in order to form the spontaneity, cooperativity and fellowship between the participants, shared understanding and cooperation on the execution of service through the formation of consensus between the participants is important(Soon Bok Seo, Young Jin Ham, 2008: 260-261). And the local government should lead the changes of management methods for public services based on the participation and sharing of information and authority not through command and control but by voluntary efforts and commitment away from the existing system of traditional bureaucratic model.

Above all, in the hardware sector, the expansion of public spaces in the city and diversity of cultural facilities are required(Hee Yeon Lee, 2008: 13). When the formal and informal meetings are actively made in the public spaces of the city and when the meetings, public lectures, seminars and discussions are vitalized, the exchange of ideas will naturally take place through free discussions with other people while being stimulated and challenged as they encounter new ideas and information.

For the network of trust and cooperation to operate, incentive to free-ride of network members must be overcome. It is important to create a suitable model for local conditions with continuous participation of citizens according to community-based cooperation strategy, and in addition, it is also important for mayors to play the role of proposing visions and ideas by exerting the leadership.

With significant changes of the time and society, the values, lifestyle and working methods of the people are also changing significantly. Creative economy means the discovery of perspectives through the collaboration between the parties and citizens which were not found within the belonging institutions, and providing better wealth and service by connecting the professionals, the parties and citizens(服部点子, 2011). In the local community, new values are being created between the citizens through the program that ask the elderly for a favor and discovering a new role by talking their experiences to the other people in the self help group, etc. In recent years, with the low fertility, aging issues and the increase in local challenges, the activities of citizens have become vitalized and at the same time the necessity of connecting the active citizens with professionals are being raised.

The world, along with the transition into the 21st century, a full-fledged implementation of knowledge-based society is underway. Although Korea has achieved remarkable results such as joining the OECD with the success of late industrialization, the problem awareness on the changes into the knowledge-based society and systematic response efforts are still behind compared to developed countries(Ha Nam Bang, 2012). Due to the globalization of economy and the revolution of information and communication, the 'developing country-type development-growth model' that rely on the inputs of traditional production factors such as land, labor and capital, etc, have met its limits, and in the future, 'developed country-type competitive policy' based on the quality of human resources such as high quality workers, creative entrepreneurs, knowledge and technology of high value-added are required.

The East Asia, while having high regional economic dependency, has unmaintained institutional framework for capturing economic cooperation. It has complicated issues such as history, lack of group leadership which can bind the regions and has high dependency on the United States due to security. Even the systematic cooperation is deployed competitively and in various ways according to the interests of each country. The Northeast Asia in 2015 may have political and military tensions but they will pursue mutual security and cooperation within the Northeast while seeking their own global strategies.

The three nations of Northeast Asia – Korea, China, Japan – must built a close cooperative system in order to counter other economic blocs such as the EU or NAFTA. By sharing areas that they are both strong and weak in, while jointly developing and exchanging human resources for the future, it will be necessary to create a cooperative system of policies, sentiments and inter-companies and inter-nations. It is necessary to find areas requiring strategic cooperation, while also constructing a human and knowledge network that can complement each other.

The cultural exchange between Korea, China and Japan is an important sector that acts as a buffer within the relationship of political conflicts and economic competition. Friendly and positive effects of cultural exchange cooperation are expected to act as a catalyst of cooperation between Korea and Japan who are now in impasse.