Smart media industry has been paid considerable attention to by policy makers and scholars, particularly who are concerned about innovation and growth. In March 2018, Seoul metropolitan government announced massive public investments on the industry along with the other three promising strategic industry. The development plan of Seoul seemed to be in harmony with the plan of central government, in sense that the two plans are focusing the Sangam DMC districts. This study makes the definition of Smart Media Industry and identifies the technological and market changes in the industry. In doing so, the study uses the modified value-chain framework, which is C-N-P-D network (Contents firm – Network firm – Platform firm – Device firm). According to statstical analysis and interviews, Seoul smart media industry can be characterized by higher concentration of contents development firms and less device manufacturing firms, in comparison with Gyeonggi-do Province. In addition, due to lower level of technological gap between prior media technology and smart media technology, which is partly attributed to technology standardization efforts of global developers such as Google, old and new media industry can be found to be easily converted into smart media industry. Taken together, this study proposed the customized policy for Seoul smart media industry, suggesting open innovation system/ procurement strategies and spatial strategies for Sangam district.