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IT in Korea

Hardware Manufacturing

Hardware Production
According to the Federation of Korean Information Industries( FKII ), the total size of the Korean computer industry was 9.1 trillion won and domestic demand for computers reached 6.2 triillon won in 1997.[39]

Table 1. Statistical Data of Computer Industry in 1997 [40]

Classification In 1997

Total Production 9.1 trillion won

Domestic Consumption 6.2 trillion won

Export $ 5.31 billion

Import $ 2.29 billion

Source: The Federation of Korean Information Industries

Currently, the FKII reported that production and export by Korean computer industry is predicted to reach $10.92 billion and $ 6.4 bilion, respectively, in this year for a corresponding increase of 23.7% and 37.7% over the last year [41]. The report also forecasted that computer sector, including PCs, printers and monitors, will continue to grow through year the 2002, and reach to $17.23 billion in production and $10.75 billion in export.

Table 2. Major Trading Countries in 1997. [42]

[Unit:1,000 US$]

Export Import

Country USD Percentage Country USD Percentage

U.S. $2,132,967 40.10% U.S. $832,310 36.28%

Germany $440,374 8.28% Singapore $46,2481 20.16%

U.K. $435,988 8.20% Japan $43,6764 19.04%

Netherland $401,100 7.54% Taiwan $10,2473 4.47%

Singapore $285,196 5.36% Malaysia $78,685 3.43%

France $276,790 5.20% China $71,249 3.11%

Japan $188,487 3.54% Thailand $61,280 2.67%

Canada $152,697 2.87% Ireland $51,554 2.25%

Hong Kong $134,687 2.53% U.K. $32,535 1.42%

Australia $113,039 2.12% Spain $21,561 1.94%

Others $758,298 14.25% Others $142,935 6.23%

Total $5,319,624 100.00% Total $2,293,826 100.00%

Source: The Federation of Korean Information Industries

PCs
1.9 million units of PC, contributing 1.7 trillion won, were sold in domestic market in 1997 and domestic demand for PCs reached 1.81 million unit as of the end of November 1999, an increase of 65 % over the same period last year [43]. Because of the economic crisis, general demand for PCs was declined. However, demand for PC has risen because of introduction of inexpensive Internet PC, which is a part of Korean governmet's policy to promote distribution of PCs.
PC was Korea's fifth largest export item in the forst half of this year. Korean-made PCs ranked thrid in the U.S. market and forth in Japan.
Major PC manufacturers are Samsung Electronics, Hyundai Multicap, LG-IBM, Daewoo Telecom, TriGem Computer, and Hyunju Computer. Samsung Electronics holds about 40% or the domestic PC market. Daewoo Telecom and LG-IBM each takes 10% of market.

Table 3. Production, Domestic consumption, Export, and Import of PCs.

Classification Term: 1997

Production 1.6 trillion won

Domestic Consumption 1.7 trillion won

Export $204 million

Import $333 million

Source: The Federation of Korean Information Industries

Table 4. PC Distribution and Number of Users per PC.

Classification 1994 1995 1996 1997

PC Distribution 1,490,000 1,654,000 1,866,000 1,921,000

Estimated number of PCs 4,459,000 5,349,000 6,354,000 6,931,000

Number of Users per PC 10 8.4 7.2 6.6

Source: The Federation of Korean Information Industries

Monitors.

Table 5. Production, Domestic consumption, Export, and Import of Monitors.

Classification Term: 1997

Number of Monitors produced 19,881,000 units

Production 2.5 triillion won

Domestic Consumption 1.1 triillion won

Export $ 1.5 billion

Import $ 61 million

Source: The Federation of Korean Information Industries

Printer

Table 6. Production, Domestic consumption, Export, and Import of Printers.

Classification Term: 1997

Number of Printers produced 927,000 units

Production 536 billion won

Domestic Consumption 710 billion won

Export $ 150 billion

Import $ 330 million

Source: The Federation of Korean Information Industries

Semiconductor.
Korea is one of leading countries in production of semiconductor. Korea's big three chip makers-Samsung Electronics, Hyundai Electronics, and Anam Semiconductor - produce approximately 38% of the world's semiconductors.
Although Samsung Electronics Co. ranked first in semiconductor production in 1998, the company ranked seventh in sales with $6 billion. Samsung Electronics Co. produce more memory chips than any other company in the world despite the price down of 16 megabyte chip.
LG Semicon ranked nineteenth with sales of $2.1 billion. Now, Korean semiconductor manufacturers have an advantage: the depreciation of Korean currency caused by economic crisis makes their products more competitive. According to the Hyundai Research Institute, the total amount of semicondictors exported by Korean manufacturers next year is estimated to reach $25 billion, the higher ever. Also, the overall rate of increase in semicondictors exports is expected to 47.3% in next year.

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.