 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
IT Labor Market in Korea
IT Labor Market
Korea is one of the fast growing countries
in the world in terms of ecomonic growth. Like other industries,
the rapid growth of the Information Technology and computer related industry
has lead to a shortage of experts and highly skilled technicians in the
industry. The Korean government has recognized that there will be
a serious labor shortage in a future, and has started to support educational
institutions, as well as implement training programs. With the support
of the MIC, the number of technical experts and graduates with IT
background is increasing. According to the Korea Information Society
Development Institute (KISDI), there was 9,097 companies [59],
and 543,839 people were employed within the
industry in 1997.[60]
Also, the KISDI expected that 74,716 IT labor will be produced in
2000 and 81,236 IT labor will be produced in 2001. [61]
Table 1. Total Number of Businesses in
the IT industry. [62]
| Classification |
1994
|
1995
|
1996
|
1997
|
|
Telecommunication Services
|
1,531
|
1,841
|
2,040
|
2,123
|
|
Hardware Sector
|
3,683
|
3,917
|
4,424
|
4,921
|
|
Software and computer-related services
|
668
|
1,451
|
1,556
|
2,053
|
|
Total
|
5,837
|
7,209
|
8,020
|
9,097
|
Source:
Korea Information Society Development Institute(KISDI).
Table 2. Number of employees in IT industry.
[63]
|
Classification
|
1994
|
1995
|
1996
|
1997
|
|
Telecommunication Services
|
98,547
|
107,804
|
122,980
|
128,672
|
|
Hardware Sector
|
197,180
|
256,109
|
354,582
|
373,735
|
|
Software Sector and computer related
services
|
22,070
|
31,574
|
38,338
|
41,432
|
|
Total
|
312,797
|
395,487
|
515,900
|
543,839
|
Source:
Korean Information Society Development Institute (KISDI)
Table 3. Expectation of Labor Supply
in IT Industry. [64]
|
Year
|
Telecommunication Sector
|
Hardware
Sector
|
Software
Sector
|
Total
|
|
1998
|
4,910
|
27,494
|
37,412
|
69,816
|
|
1999
|
5,312
|
28,228
|
43,031
|
76,571
|
|
2000
|
5,547
|
31,023
|
44,664
|
81,234
|
|
2001
|
6,553
|
33,638
|
46,965
|
87,156
|
|
2002
|
6,683
|
34,936
|
49,801
|
91,420
|
|
2003
|
6,741
|
35,411
|
50,957
|
93,109
|
|
1999 - 2003
|
163,236
|
163,236
|
235,418
|
429,490
|
Source:
Korea Information Society Development Institution(KISDI)
Table 4. Number of Technical Experts
in IT industry. [65]
|
Classification
|
1996
|
1997
|
|
Telecommunication Services Sector
|
68,101
|
71,287
|
Hardware
Sector
|
44,947
|
50,402
|
|
Software and Computer related Services
Sector
|
35,167
|
38,237
|
|
Total
|
14,8215
|
159,926
|
Source:
Korea Information Society Development Institution (KISDI)
Literacy Rate and English Fluency.
Literacy rate, a percentage of people who
can read and write and age 15 and over, of total population was 98% in
1995. This rate is higher than that of China (81.5%), Singapore (91.1%,
established in 1995), Taiwan (94%, established in 1998), and the U.S. (97%,
established in 1979). [66]
Spoken by all of Korean people, Hangul,
official name of Korean language, is the main language in Korea.
However, the government understand that fluency in English will bring more
opportunities in international market and electronic commerce because English
is the most-used language in the Internet. English is widely taught
in middle school(junior high) and high school in Korea. Table 5 shows
composition of population by educational attainment.
Table 5. Composition of Population by Educational
Attainment (over 25 year old) [67]
|
Classification
|
1980
|
1985
|
1990
|
1995
|
|
Primary school graduates & under
|
55.3%
|
43.4%
|
33.4%
|
26.6%
|
|
Middle school graduates
|
18.15%
|
20.5%
|
19.0%
|
15.7%
|
|
High school graduates
|
18.9%
|
25.9%
|
33.5%
|
38.0%
|
|
Junior College, University graduates
& over
|
7.7%
|
10.2%
|
14.1%
|
19.7%
|
Source:
National Statistical Office of Korea.
Average Wage.
Although National Statistical Office of
Korea doesn't specify average earnings of employees in IT industry,
the level of average earning of IT workers in 1996 can be estimated by
comparing table 6,7, and 8.
Table 6. Monthly Average Earnings
of Regular Employee by Industry. (Korean won) [68]
|
Classification
|
1995
|
1996
|
1997
|
1998
|
|
Average of all industries
|
1,324,283
|
1,350,965
|
1,463,300
|
1,426,797
|
|
Mining and Manufacturing
|
1,124,578
|
1,262,275
|
1,328,031
|
1,286,604
|
|
Mining
|
1,194,911
|
1,379,913
|
1,534,912
|
1,524,520
|
|
Manufacturing
|
1,123,895
|
1,261,168
|
1,326,241
|
1,284,477
|
|
Electricity, Gas, and Water Supply
|
1,608,239
|
1,916,933
|
2,078,546
|
2,021,708
|
|
Construction
|
1,384,194
|
1,501,257
|
1,623,638
|
1,502,275
|
|
Wholesale and Retail Trade
|
1,173,833
|
1,316,805
|
1,426,564
|
1,396,727
|
|
Hotel and Restaurant
|
994,539
|
1,111,722
|
1,202,060
|
1,178,028
|
|
Transport, Storage, and Communication
|
1,069,896
|
1,260,149
|
1,398,487
|
1,350,622
|
|
Financial Intermediation
|
1,827,553
|
1,986,514
|
2,054,171
|
1,966,540
|
|
Real estate, Renting, and Business
Active
|
1,140,981
|
1,242,137
|
1,362,199
|
1,329,334
|
|
Education
|
1,933,864
|
2,036,663
|
2,201,732
|
2,190,137
|
|
Health and Social Work
|
1,220,734
|
1,346,951
|
1,462,004
|
1,484,093
|
|
Other Community, Social, and Personal
Service
|
1,540,382
|
1,725,670
|
1,819,933
|
1,764,817
|
Source:
National Statistical Office of Korea.
Table 7. Monthly Average Earnings of Employees
in IT Industry in 1996.[69]
|
Classification
|
Average Wage in Korean won
|
|
Telecommunication sector
|
2,104,646
|
|
IT hardware sector
|
1,275,274
|
|
IT of the office equipment
sector
|
1,671,056
|
|
Software and computer related sector
|
1,367,501
|
Source:
Korea Information Society Development Institute (KISDI).
Table 8. Monthly Average Earnings
of Technical Experts in Software Industry in 1998. [70]
|
Classification
|
Number of Respondent
|
Average Wage in 1998 (unit:won)
|
Average Wage in 1997 (unit:won)
|
|
Superior Technical Expert
|
3,623
|
144,962
|
142,203
|
|
High-Class Technical Expert
|
4,880
|
15,5352
|
117,410
|
|
Mid-Class Technical Expert
|
8,703
|
92,668
|
97,488
|
|
Below the Mid-Class Technical Expert
|
17,598
|
70,896
|
69,405
|
Source:
Korea Software Industry Association(KISDI).
Software Professionals.
Korea Software Industry Association (KOSA)
provides the number of technical experts in software industry and distribution
of technical experts. According to the KOSA, there was a 65.2% increase
in the number of technical experts in 1996 and 18.3% increase in 1997.
Table 9. Yearly Summary of Technical
Experts in Software Industry. [71]
|
Classification
|
1994
|
1995
|
1996
|
1997
|
Percentage Increase in 1995
|
Percentage Increase in 1996
|
Percentage Increase in 1997
|
|
Number of Technical Experts
|
20,916
|
24,658
|
40,736
|
48,175
|
17.9%
|
65.2%
|
18.3%
|
Source:
Korea Software Industry Association.
Table 10. Distribution of Technical
Experts.
[72]
|
Classification
|
Number of Technical Experts in
1996
|
Percentage
|
Number of Technical Experts in
1997
|
Percentage
|
Percentage Increase in 1997
|
|
Superior Technical Expert
|
3,836
|
9.4%
|
4,510
|
9.4%
|
17.6%
|
|
High-Class Technical Expert
|
6,157
|
15.1%
|
7,265
|
15.1%
|
18.0%
|
|
Mid-Class Technical Expert
|
11,250
|
27.6%
|
13,634
|
28.3%
|
21.2%
|
|
Below the Mid-Class Technical Expert
|
19,493
|
47.9%
|
22,766
|
47.2%
|
16.8%
|
|
Total
|
40,736
|
100.0%
|
48,175
|
100.0%
|
18.3%
|
Source:
Korea Software Industry Association.
Table 11. Total Population. [73]
|
1998
|
1997
|
1996
|
1995
|
|
Estimated mid-year Population
|
46,430,000
|
45,991,000
|
45,545,000
|
45,093,000
|
|
Annual Population growth Rate
|
0.95%
|
0.98%
|
1.00%
|
1.01%
|
Source:
National Statistical Office.
With the given data above, software expert
per 1000 people can be calculated by dividing the number of software expert
by total population.
Table 11. Software Technical Experts
per 1000.
|
Classification
|
1996
|
1997
|
|
Number of Experts
|
40,736
|
48,175
|
|
Total Population
|
45,545,000
|
45,991,000
|
|
Technical Experts per 1000
|
0.89
|
1.05
|
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.
|