IT in Korea
Government Policies
R&D Programs
Korean government truly understand that telecommunication
industry plays an important role in the information society and global
communications network system is essential for today's economic activities.
The Ministry of Information and Communications (MIC) is actively promoting
R&D programs in order to develop telecommunication sector. In
order to develop information and telecommunication technologies, Korean
government finances both the public and the private sector. To enhance
the existing national information infrastructure, the government projected
the plan to build Korean Information Infrastructure (KII).
Approximately 32 trillion won will be invested in building the Korea Information
infrastructure (KII) by 2010, according to the MIC. To provide high
speed network services as fast as 1.5 to 2 Mbps at a reasonable rate by
2002, the government will upgrade local loops by combining use of fiber
optic cables, Integrated Services Digital Network (ISDN), xDSL, and satellite
communication. The cost of upgrading telecommunication networks is
projected at $8.67 billion: $6.67 billion will be spent on building backbone
network and local loops, and $2 billion will be spent on completing digitization
of local exchange networks. According to the MIC, the government's
spending on R&D was 236.6 billion won in 1997 and 230.3 billion won
in 1998. [78]
Major Goals of R&D Programs [79]
In the Information and Communication Policy
Statement, the government stated basic policy objectives of R&D programs.
1. Producing qualified experts in IT industry.
2. Promoting growth of venture firms.
3. Promoting growth of the software industry.
Government's objectives in IT policies
In order to reflect the developments in the international
telecommunications market and to promote competition in a telecommunication
market environment that facilitates the realization of an advanced information
society in Korea, the government revised telecommunication laws, including
the Telecommunication Business Act. The government Followings are
summary of objectives in the government's policy statement:
1. The government will minimize government
intervention and observe market principles; The government will continue
to increase the competitiveness of the telecommunication industry and response
to the demand for new advanced telecommunications equipment and services.
2. The government will enhance transparency
of policies and regulations; Under the WTO agreements, the government will
provide non-discriminatory treatment to foreign owned or foreign-origin
suppliers to telecommunications equipment and services. The government
will license telecommunications service providers, both for domestic and
foreign firms, through a transparent process.
3. The government will apply industrial policies
for preventing possible market failure; The government will permit facility
based service providers to use satellite systems other than INTELSAT and
Koreasat for either voice of data communications using their own
facilities.
4. The government will adjust policy priorities
among employment, export, and investment issues; Tariffs applicable to
information technology products will be amended in accordance with the
result of the ITA negotiations. [80]
VIsion for the Korea's Information Society * [81]
* Following contents are from the Information
and Communication Policy Statement.
Korean government has realized that the
world is now transformed to the knowledge-based information society, and
information and knowledge are key resources of creating added value in
the industry. To be transformed to the industry, the government
presented a plan, which composed of three phases, in 1996. Key policies
directions are as followings:
I. Increase Productivity by Informatization.
1. Reengineering the government.
- Reengineering the government by connecting
government agencies with a high-speed network, delivering high quality
on-line services to the public, and distributing the government's reports,
statistical data, and policy statements.
- Informatization in civil services.
2. Support firms to restructure by promoting
electronic commerce.
- Informatization to innovate the high
cost structure.
- Promoting electronic commerce.
- Informatization for stronger competitiveness
of the financial industry.
3. Informatization for better quality of
life.
- Building IT environment for education/
- Informatization in health care and welfare.
- Informatization in national safety and
environmental management.
- Informatization in culture.
- Informatization in local community.
II.Establishing better environment for
informatization.
1. Building the Korea information superhighway.
- Building the high speed network.
- Establishing Test-bed network and local
pilot project.
- Building Asia-Pacific Information Infrastructure
(APII).
2. Overhauling the relevant laws and regulations.
3. Providing better environment for the
use of telecommunication service.
- Promoting one PC per person.
- Improving the national IT literacy.
- Developing and distributing useful content.
- Undertaking various publicity campaigns.
4. Providing effective security measures.
- Privacy and on-line distribution of
indecent materials
- Providing safe and reliable of computer
networks.
5. Solving the Y2K problem.
III. Fostering the information and communications
industry.
1. Expanding supply base for information
and communications experts.
2. Encouraging R&D in information
and communications technologies.
3. Fostering small and medium size firms
and venture firms in IT and software industry.
4. Deregulation and competition in telecommunication
sector.
5. Creating better environment for foreign
investors.
6. Promotion of the radio and broadcasting
industry.
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.
