IT in Korea
Analysis: IT Strength and
Weakness
IT Strength and Weakness
Advance factors: Advanced factors( e.g., communication
infrastructure, sophisticated and skilled labor force, and technological
know-how) are the most significant for national competitiveness.
Within the advanced factors, the highly skilled
labor force is one of Korea's strength. Korea was able to develop
economy by utilizing excellent domestic work force(highly educated and
working). Literacy rate, a percentage
of people who can read and write and age 15 and over, of total population
was 98% in 1995. The rate is higher than that of many other industrialized
countries. The government projected the
plan to upgrade communication Infrastructure to provide high speed network
services. In some areas within the IT industry(e.g., semiconductor),
Korea has already gained technological know-how and built sophisticated
manufacturing facilities.
However, IT literacy in regard to electronic commerce
is low in Korea. Most Korean Internet users have been on the Internet
for only a year or two years, and the Internet shopping malls and electronic
shops are still in an embryonic stage. Also, English fluency is low
in Korea. English fluency is
needed to bring more opportunities in international market and electronic
commerce because English is the most-used language in the Internet; similarly,
electronic businesses, which based in English spoken region and want to
target Korean consumers, need to use Korean language on their web site
because Korean consumers, like other Asian consumers, prefer electronic
shopping mall with their own language.
Demand condition: The rapid growth of demand
condition of the Korean consumers increases the national competitiveness.
For example, increasing demand for high quality cellular and PCS service
stimulated the IT industry, and Korea has succeed in commercializing CDMA
cellular technology for the first time in the world. With the CDMA
technology, Korea was able to advance into the international market of
CDMA equipment and handsets. Demands for IT related products (e.g., PCs,
peripherals, communication equipment, high-speed Internet services) are
high.
Governmental Support: Most Korean industries, including
IT industry, benefit from government's support. The government's
investments on the nation's communication infrastructure, R&D programs,
and higher education by improving the general skill and knowledge
level of the population and by stimulating advanced research at higher
institutions increased national competitiveness. By deregulating
existing regulations and introducing competition in telecommunications
sector, the government opened domestic market for foreign competitors.
As a result, domestic IT arena will be more competitive and developed result
from high competition.
Related industries: Technological and supply
leadership in Korea semiconductor industry provides opportunities to success
in computer hardware and other electronic products.
This report was completed in December 1999
for the class
Impacts of National Information Technology
Environments on Business
taught in the program of the MOGIT
(Management of Global Information Technology)
at the
Kogod School of Business at American
University in Washington, D.C.
