Business Continuity presentation

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Promoting IT Industry in Korea
Young Nahn Baek Korea IT Industry Promotion
Agency Email ynbaek_at_software.or.kr Date 18th
October 2004
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Korean IT Present Future
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Global Status of Korean Economy
Source Korea National Statistical Office
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Global Status of Korean Information Society

• Global no. 1 in Broadband Internet Penetration

• Leader in Mobile Communication Penetration

• Leader in e-Government

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Global Status of Korean IT Industry
Share of IT Consumption in Total Household
Consumption
Korea 1st (6.3)
Germany 21st (3.4)
U.S.A 17th(3.7)
Source OECD (2002)
Share of IT Manufacturing in Total Manufacturing
Ireland 1st (17.1)
Japan 12th(9.8)
Korea 3rd(12.8)
Source OECD (2002)
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World Market Share of Korean IT Products
World market size Billion US
Market share

Memory LCD M-phone TV Internet Eq PC
Non-Memory Game SW
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IT Manufacturing The Engine of Growth Today
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The Engine Getting Old

• Manufacturing-biased
• 3rd in IT manufacturing, but 21st in IT
  Service among OECD
• Capital-intensive
• Capital/labor ratio of IT 155.2 (non-IT 99.5)
• Large Firm-centered
• Value-added share of SMEs in IT 14.5
  (non-IT58.3)

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SW The Engine of Growth Tomorrow ?

• Underdeveloped SW Industry in Korea
• SW 8.9 in IT Production 0.5 in IT Export
  (2003)
• But Relatively High Market Share of Domestic
  Firms

Market Share of Domestic Firms ranked among Top
15th
Source IDC
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Challenges facing the Korean IT Industry

• Changes in IT paradigm
• Convergence and Ubiquitous Computing
• Growing Competition
• Newcomers to IT hardware manufacturing

Moving up and Finding New Opportunities
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Where We Go from Here Ubiquitous Korea
Converged Services Balance in HW SW
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A Trinity of IT Policy Strategies
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A Trinity of Policy Strategies
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Informatization Policy Market Creation

• Advancing the Information Infrastructure
• Korea Information Infrastructure (KII)
• Utilizing IT for Change
• E-Government
• Bridging the Digital Divide

Creating New Demands for IT
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Competition Policy Fair Competition

• Liberalizing Markets
• Opening the Telecommunication Market
• Privatization of KT
• Monitoring Competition
• the Regulation by Korea Communications
  Commission

Enhancing the Competitiveness of IT Firms
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Industry Policy Facilitating Market

• Building Infrastructure for RD Education
• Supporting cooperation among Industry,
  Academia and Public Research Institutes
• Providing Information and directions
• Revising the Law and Regulation
• Transforming the legal system for information
  society

Promoting Entrepreneurship
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Adam Smith for IT Industry
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What Free Trade (ITA) Has Brought to Korea
Growing Share of IT Export !
Source Korea Customs Service
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From Hardware to Software

• Expansion of free trade to services and
  intellectual properties
• Issues concerning monopolistic market power in
  software and communication industry
• Promoting free trade based on fair competition
  and equal opportunities

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Thank You !!!