About Korea
 

Telecommunication 
      Infrastructure.
 

Privatization and
      deregulation.
 

Internet Activity.
 

Electronic Commerce.
 

Hardware Manufacturing.
 

Software Development.
 

IT usage by households,
     business, government and
     military.
 

IT labor market.
 

IT geographics.
 

IT financing.
 

Government policies.
 

Legal environment.
 

Analysis: IT strength and
                   weakness.
 

Analysis: Impact on the 
                   Business.
 

Sources and links.
 

About the author.
 

IT Landscape in Nations
 
 
 
 

 

 

  IT in Korea 
 
 
 
 
 

Internet Activity










Internet Activity

The Internet usage in Korea is in a definite growth phase.   The number of Internet users is increasing rapidly;  the number of domestic Internet users increased from 216,192 people in 1993 to 3.1 million in 1997.  Currently, 4.6 million people are using the Internet [20].    According to the Fortune,  the number of Korean Internet users is ranked fourth place within the Asian countries following by Japan, Singapore, and Hong Kong [21].

The Samsung Economic Research Institute (SERI) reported the traffic increase on local service providers as indicative of the growing Internet usage.  Yahoo! Korea (www.yahoo.co.kr), the Korean language search engine and , estimates that  approximately one million people are visiting the site in a week.  Also, another portal site,  Daum Communications Corp. (http://www.daum.net), which is providing web-based free e-mail service such as hotmail.com, is experiencing a similar situation to Yahoo! Korea. The numbers of its users is growing dramatically. Recently, Daum Communications Corp. has taken just 5 months to secured 1 million additional registered users [22].

Fig 1,2,3, and Table 1 show the number and growth of Internet Service Providers, hosts, domains.
 
 

Table 1.  Number of  PC online Service Subscribers. [23]


 Classification
1997
1996
1995
1994
1993
PC online subscribers
3,117,553
1,711,013
718,188
427,623
216,192
Growth Rate
82.2%
138.2%
67.9%
97.8%
84.5%
Per 1000
67.79
37.57
15.93
9.58
4.89

Source:  National Statistical Office
 
 
 
 

Table 2.  Number of Internet Host and Domain in 1998 [24].


 In 1998
Number of Host
Number of Domain
Academic Institutes
77,653,000
373
Private Enterprise
72,510,000
17,317
Government, and Public Organization
506,000
117
NT Operating Institutes
20,879,000
33
Non-profit Organization
4,500,000
1,025
Research Institutes 
12,573,000
155
Regional Domain
2,851,000
322
Total
191,472,000
19,342

Source:  National Statistical Office
 
 
 

Table 3. Number of Internet Host per 10,000.


Classification
1992
1993
1994
1995
1996
'89-'96 Average Growth Rate
Korea
0.66
1.27
2.71
5.28
10.53
143.2%
U.S.
28.73
48.74
78.44
162.15
309.46
98.5%
Average European Countries
5.12
11.27
19.20
37.55
66.27
105.8%
Japan
1.27
2.86
5.80
12.77
39.59
132.2%
Singapore
3.43
6.45
14.23
28.82
133.53
136.3%
Taiwan
1.02
2.61
4.88
7.59
14.29
97.9%

Source:  Korea Network Information Center
 
 
 

Fig.1.Number of Host. [25]

Source: Korea Network Information Center
 
 

Fig 2. Number of  Domain [26]

Source:  Korea Network Information Center
 
 

Fig.3 Number of Internet Service Providers. [27]

Source:  Korea Network Information Center












List of Internet Service Providers in Korea.

In October 1999, there were 47 ISPs in Korea.  ISPs are divided into two classifications; Non-profit ISPs and commercial ISPs.  Followings are names of ISPs in Korea.

  Non-profit ISPs:      HPCNET, KOSINET, KREN, KREONET, PUBNET.

  Commercial ISPs:  AUNET,BORANET, CHOLLIAN, DOSITEL, DREAMX, ELIMNET, EYES, GAMENET, HANANET, HANQ, HITEL, INTET, JCITY, KOLNET, KORNET, KOTISNET, KTNET, LG INTERNET, NAUNURI, NETVALLEY, NOWNET, SDSNET, SHINBIRO, SK TELECOM, THRUNET, UNITEL, URIEL.

Number of PC online service subscribers has reached 4,955,000 people in January 1999.
Chollian has 1,402,000 subscribers (28.3%), Unitel has 1,159,000 subscribers (23.4%), Hitel has 1,402,000 subscribers (22.2%), Naunuri has 854,000 subscribers (17.3%), and Netsgo has 437,000 (8.8%). [28]
 
 
 
 
 

Promoting  One PC per Person.

As a part of the Korean government's policy, which direct for the Information Society, the government is promoting one PC per one person campaign.  By developing and distributing inexpensive PCs, applications, and the Internet service via the high-speed network, the government hope that the public are able to get access to PCs at offices or schools; or either public places or at home.
 
 

Table 4. Number of PC Supply [29].


Year
1997
1996
1995
1994
Total PC Supply
1,921,000
1,866,000
1,654,000
1,532,000
Per 1,000 people
418
410
367
343

Source:  National Statistical Office










One interesting trend in Korea is advent of PC game rooms and Internet Cafes. These are are widely used by young people.  In PC game room, there are 20 to 30 computers which have an Internet access and installed most popular game software, such as Starcraft.   Users of the PC game room are mostly people who don't have PC at home or don't have an Internet access. They pay average $1.5 per an hour and enjoy web surfing, chatting, and playing games.  By using PC rooms, every Korean is able to get access to the Internet.
 
 

Competition in High speed Internet Service

High-speed internet service providers estimated that the number of high-speed Internet subscribers will increase from 600,000 in 1999 to 3million by the year 2000.  The high-speed Internet service market will represent $1.6 billion by the year 2000 [30].  Six main service providers include Dream Line, SK Telecom, KT, Hanaro Telecom, Durunet, and Dacom are competing by introducing new services, and dropping down prices. 

The SERI expected that the number of PC online service subscribers will represent 10 million 
by the year 2002, and 75% of these people will use high-speed Internet service [31].
 
 

Domestic Portal Sites and Search Engines.
 



 
 










 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.