South Korea's new Songdo city provides a spectacular example of a smart city, which is developed as an aerotropolis, and a ubiquitous city (U-City). An intriguing aspect of the development of the new Songdo city is that supportive formal and informal institutions are the primary reason why the U.S.-developed smart city technologies have been first implemented in Korea rather than anywhere else. Nonetheless, these institutions also pose challenges that are yet to overcome. This article aims to provide new insights into how formal and informal institutions have shaped the development of the new Songdo city and its adoption and acceptance by the targeted end users.