Korean local governments have been planning for u-City construction with great efforts. Such efforts are needed in order to reflect the urban characteristics of each city, to promote local economic growth, and to have a sustainable operation model. Thus it is critical at an earlier stage to set a strategic direction based on urban environment analysis, which will lead to a feasible implementation of u-City. This paper derives issues and suggests improvement methods based on a case study on the USPs (u-City Strategy Planning’s) of ten local governments. It is expected that the improvement methods will greatly reduce risks involved in u-City construction and contribute to better provided local-specific u-services.