Korea has a long way to go before replicating the success of Silicon Valley.  However, the government is taking the initiatives to create IT clusters in Inchon.  The result of this attempt remains to be seen.

• Inchon, Korea

Since 1999, Korea has been establishing a software center in the coastal city of Inchon as the recovering nation builds a high-tech corridor, dubbed Songdo Media Valley, between Inchon and Seoul.

The entire Triport project includes the construction of a new international airport, expansion of the city's seaport and the Songdo Media Valley high-tech center. Songdo will be home to South Korean and non-South Korean high-tech companies as well as a Techno-Park research center, with a graduate school focused on information technology, a venture-capital center, tourism facilities, residential housing and parks on 858 acres of land reclaimed from the sea [13].

Inchon and South Korea's central government will spend an estimated USD 600 million to USD 700 million on basic infrastructure improvements for the Songdo high-tech center, including the construction of roads, a water-supply and a waste-disposal system, and the relocation of an IT graduate school to the area [13]. Arthur D. Little, which created the master plan, estimates the combined public and private investment in the Triport project will total USD 1.7 billion [13].

Tenants are scheduled to begin moving into Songdo in 2002 and begin operations in 2003. By 2006, officials project that over 2,000 companies will be operating in the Valley [13].  HP, Cisco, and Intel have ponied up part of the $833 million startup cost and signed on as tenants [14].  Approximately 50 of the 600 tenants are foreign companies. Participating South Korean companies include Hyundai Electronics and Daewoo Corp [13].

Skilled workers for Songdo Media Valley companies will be tapped from an IT-focused graduate school that will train software engineers, and a Technopark research center. The center will house South Korean research organizations funded by the Ministry of Industry, Commerce and Energy.

With a highly educated work force (18 percent of the labor force is college-educated and 60 percent of high school graduates go on to colleges and universities), South Korea has no shortage of high-tech workers, but the country wants to keep and attract the top international engineering talent [13].  Accordingly, the South Korean government has introduced new legislation that would loosen visa restrictions for engineers and other foreign professionals who want to work in South Korea.

• Daeduk Research Complex

In the early 1960's, Korean government began to establish a series of the National Development Plans for economic development.  With helping from low labor cost, financial and technological supports from foreign governments, Korea was able to accelerate developing national economy.  However, the government has realized the country need the advanced technology and expertise to increase the competitiveness of domestic product in the international market.  As apart of the National Development Plan, basic plan for the Daeduk Research Complex was drafted in January 1973.  As of 1999,  there were 51 R&D institutions, with 16,000 researchers, and 4 universities in Daeduk Research Complex.  Most of them are for manufacturing, basic and advanced science research institutes.  Four research institutes,  including Dacom, SK Telecom, and KT Research Institute,  are related to IT.  The Daeduk Research Complex is located in Taejon metropolitan area.  The research complex is located 150 Km from Seoul and 290 Km from Pusan. 

• Science Research Centers

Thirteen new university research centers have been designated as Science Research Centers or Engineering Research Centers in 1999 in addition to the existing 35 centers.  Each of these centers receive approximately USD 800 thousand of research funds every year for nine years.  In addition, ten research centers at local universities have been designated as Regional Research Centers in 1999.  These centers are selected based on their research performance.

 

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