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IT in Korea

IT Usage by Households, Business,
Government and Military

IT Usage by Households
General trend of IT usage is growing. Domestic demand for computers has increased significantly since last year. Although an aftermath of an economic panic is not gone yet, demand for PCs increased notably in this year due to the government's policy which promote distribution of Internet PCs for the public by introducing inexpensive Internet PCs. By promoting the distribution of inexpensive Internet PCs, numbers of PC users and online subscribers as well as sales of electronic shopping malls are increasing.
PCS and cellular service market is hot in Korea. The number of mobile telephone (cellular and PCS) has increased significantly since 1993. Last year, Korea ranked 7th in the world in terms of mobile telephone( cellular and PCS) subscribers, with 5,640,000 subscribers; Korea ranked 11th in supply rate per population. [53] Increasing demand for 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..

Table 1. Number of PC Supply [54].

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

Table 2. Number of PC online Service Subscribers. [55]

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 3. Number of Mobile Telecom, Radio Paging, PC online Service Subscribers. [56]

Classification 1997 1996 1995 1994 1993

Mobile telephone subscribers 6,828,169 3,180,989 1,641,293 960,293 471,784

Per 1000 148.47 69.84 36.40 21.51 10.68

Source: National Statistical Office

IT Usage by Businesses
As the number of Internet users is increasing significantly, as well as electronic market, businesses are trying to target them by opening electronic shop. Although the Internet usage is still in a nascent stage, the number of electronic shops and Internet-based businesses is growing quickly. According to the Samsung Economic Research Institute, internet-based businesses are expected to maintain energetic growth for the next several years with the sales of $ 1.7 billion in 2005. [57] Also, telecommunication related businesses are focus more on electronic commerce and other Internet-related services, such as portal service. Dacom announced that the company will launch a portal service in 2001 and expand its network facilities to offer high-speed Internet access. [58]

IT Usage by Government
Korean government is trying to create efficient government by digitizing the government data and reorganizing work processes with information technology as the primary tool. Also, the government encourages use of an EDI system. The EDI system is now in use on trial basis in some purchasing government agencies, but it will be extended to public organizations to promote utilization of IT in the business sector. The government planned to create new jobs by boosting Internet industries. By boosting electronic commerce, Internet-related businesses, such as ISPs, will need more labor and more ventures, such as electronic intermediaries, will be established.

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.