1. Korea IT Industry March , 2004
Catalyst To Fastening Digital Opportunities
Korea
IT Industry
March , 2004
Paul, Chang
Managing Director/PH.D.
International Cooperation Agency for Korea IT(ICA)

2. CONTENTS
IT Industry Briefs
The Role of ICA

3. Korea IT Industry Briefs

4. Korean Economy Overview
Korean Economy Key Indications
Size of Korean Economy(2003)
Population : 47.9 Million
GDP : Billion US$
Per Capita GDP : 14,000 US$
Korean Economy & Trade(2003)
Export : Billion US$
Import : Billion US$
Trade Surplus : 15 Billion US$

5. Korean Economy Overview
Korea in the World Economy $
4th
(Ranking in the World)
(Ranking in the World)
12nd
12rd
13th
26th
Population
Import
Export
GDP
Foreign Exchange
Reserve (2003)

6. Korean Economy Overview New Economic Policy Directions
Short Term Measures
Early Execution of the Government Budget
Holding IR Meetings (New York, London)
Attracting Foreign Investment
Long Term Measures
Establishing of a Free and Fair Market Economy
 Accounting System & Corporate Governance
 Deregulation
Promotion of Science & Technology including IT

7. Weight of Korean IT Industry
Trade Influence of IT industry in Korean Economy
Export (US$ Bill)
Import (US$ Bill)
57.6 (29.7%)
36.4 (20.4%)
IT Sector
IT Sector
Non-IT Sector
IT Sector
136.2 (70.3%)
Non-IT Sector
Non-IT Sector
142.4 (79.6%)
128.4 (79.7%)
Trade Surplus in IT Sector : 21.1 Bill US$
Total Trade Surplus : 15 Bill US$

8. Weight of Korean IT Industry
Contribution of IT industry in Korean Economy
“Making Substantial Contributions to the Korean Economy”
Production
(KW)
380T 
209T W
15.6%
19.3% 
% in GDP
110B
57B 
Export
(US$)
2003
2007
(Korea National Statistical Office)

9. The Prospect of Korean IT Export
Weight of Korean IT Industry
The Prospect of Korean IT Export
[100 mill US$]
383
2001
2002
105
152
200
400
800
366
549
767
2003
2005
2007
207
287
IT Trade Surplus
IT Export
464
[Average 16.2% growth from 2003 to 2007]
1000
600
1,000
We expect the Korean IT export will grow at a CAGR 16.2% to We will achieve the export size 76.7billion$, trade surplus 28.7 billion$ in 2005 in line with such a annual growth rate.
However, there are some stumbling blocks such as overall world economy slowdown including IT sector and Korean economy’s uncertainty due to North Korean Nuclear threat. Thus the estimated IT export size may be a little reduced compared with above estimation. But also, there are some positive driving point, for example, the wide spread of 2.5G and wireless internet as well as the growing demand on transition to 3G. From these IT paradigm changes, Korean IT export size will grow continuously.

10. Weight of Korean IT Industry
Share of IT Industry in GDP
IT share in GDP
16.5%
16.3%
15.5%
14.9%
13.0%
12.9%

11. Weight of Korean IT Industry
The Korean IT Ranking in the World
E-stock Trading
 1 St
Broadband Internet Penetration Rate
 1 St
Internet Penetration Rate
 4 th
Development of Mobile Communication
 7 th
IT Export
 8 th
E-government Index
 15 th

12. Status of Korean IT Industry
Numbers of PCs
The numbers of PCs: 6.3 million (1996) to 24 million ( )
The number of PCs per 100 Capita reached 65.5% ( )
PC’s (1,000 unit)
Per 100 capita

13. Status of Korean IT Industry
Numbers of Internet Users

14. Broadband Internet Users
Status of Korean IT Industry
Korean Informatization
Subscriber(million)
Penetration rate(%)
100.0%
69%
32.4
56%
50.0%
28.6
36%
17.2
22.6%
10.6
Internet Users
Mobile Phone
CDMA2000 1x
Broadband Internet Users

15. Status of Korean IT Industry
Status of Broadband Internet subscribers
Unit : person
(2004.1)
6,495,419
6,000,000
5,000,000
3,839,872
4,000,000
3,000,000
916,989
2,000,000
1,000,000
This slide shows the types of broadband internet access and their subscribers.
xDSL, especially ADSL internet service accounts for nearly 55% followed by cable modem usage with about 33% share.
Recently, maybe since the late of 2002, the state-of-the-art technology, VDSL, which has 52 mega bit per second as downloadable bandwidth, has been taking the place of ADSL.
4,780
ADSL
Cable Modem
Apartment LAN
Satellite

16. < Broadband internet user(% of 100 persons, 2003. 12, OECD) >
Status of Korean IT Industry
Subscribers of Broadband Internet Service
< Broadband internet user(% of 100 persons, , OECD) >
Korea
17.2
Hong-Kong
14.9
Canada
11.2
Taiwan
9.4
USA
6.9
Japan
7.1

17. Market Share In the World
Status of Korean IT Industry
The Position of Korean IT hardware : 4th in the world
Market Share In the World
100.0%
59%
43.8%
50.0%
33.8%
26.8%
DRAM
TFT-LCD
Mobile Phone
CDMA

18. Mobile Hand-Sets Sales of Korea
World Mobile Phone market: 460 mil. (CDMA:73.25 mil. – GSM: 274 mil.)
Korea: CDMA:43.40 mil. (59%) – GSM: mil. (24.5%)
2000
2003
CDMA
2,785 (53.6%)
2,421
GSM
2,457 (10.2%)
24,199
4,340 (59%)
2,985
6,724 (24.5%)
27,414
Korea
Except Korea
Unit : 10 thousand unit

19. Initiatives for “Broadband IT Korea”
Key Strength of the Korean IT industry
World-Class Broadband IT Infrastructures
Large Domestic IT Consumer Base
Ideal Test-bed for technology Innovations
Talented Engineering Pool for Advanced R&D activities
Launching National R&D Flagship Projects
Starting Next Generation Telecom. $ broadcasting services
Strengthening Global Competitiveness

20. Korean IT Export Vision
IT as a Frontier of Economic Growth
Build the international cooperation in IT industry
Strengthen the Overseas marketing in IT sector
Focusing on the promising IT products
Korean IT export visions is entering into the world 5th rank IT export country by achieving IT export 400 billlion $ and trade surplus 100 billion$ by 2007.
In order to achieve this goal, ICA is promoting various projects such as building IT support system, strengthening overseas marketing and building international cooperation system in IT industry.
Establish support system for IT SME
Entering into World 5th in IT Export,
Will achieve IT export $400 billion and trade surplus $100 bill by 2007

21. The Role of ICA

22. CONTENTS
Introduction
Activities of ICA
ICA Roles
ICA’s Global Network

23. Introduction Gateway to the Hub of the Global IT Business, ICA Korea
Subsidiary of Ministry of Information and Communication
Promoting ICT Trade
Introducing new ICT Technologies into the oversea market
Matching Korean Partners with foreign governments and companies
global core center of IT Cooperation network

24. Activities of ICA Working for international cooperation in 2003
Korea-Germany Mobile Business Forum 2003
Korea-East Europe ICT Business Development Forum(’03.4)
: Czech, Poland, Bulgaria
Road show in France(’03.10)
Korea-China IT Biz Development Day(‘03.10)
SMEs Roadshow for Investment(’03.11)
Algeria ICT Cooperation (’03.12)
Korea-Malaysia/Indonesia ICT Forum(’03.8)
Korea-Brazil ICT Cooperation Meeting(’03.10)
India SME matchmaking Program (’03.12)
Australia Broadband Summit
Korea-Chile ICT Cooperation Meeting(‘03.10)

25. Activities of ICA Working for international cooperation in 2004
Hungary/Poland-Korea ICT Forum(’04.11)
Russia-Korea ICT Forum(’04.9)
Germany/France-Korea ICT Forum(’04. 4)
America-Korea ICT Forum(’04.11)
China-Korea ICT Forum(’04.9)
Japan-Korea ICT Forum(’04.3)
Spain/Italy-Korea ICT Forum(’04. 10)
Korea-Thailand ICT Forum(’04.3)
India-Korea ICT Forum(’04. 5)
Korea-South America (Brazil & Mexico) ICT Forum(’04.4)
Indonesia/Malaysia – Korea ICT Forum (’04.7)

26. Roles of ICA
To support efforts to cooperate with the World’s IT Industry
- Sending ICT delegation mandated to open global IT Markets
- Supporting domestic companies to discover a new market
- Holding seminars for foreign investment
- Forming an advisory team for foreign investment
To support domestic IT companies to venture overseas market
- Operating a consortium of domestic IT export companies for overseas market
- To help domestic IT industry to become globalized
- Providing a framework for international cooperation in ICT area
This slide shows ICA Visions and Goals.
The ICA visions in 2003 are summarized in 5 categories.

27. Roles of ICA To research & analyze overseas market
- Building and Operating the IT trade information system
- Finding promising IT export Items and research for their markets
- Publishing the white paper for export of the IT industry
To campaign the vision of IT Korea
- Producing public relations materials for IT Korea
- Holding seminars for International Cooperation for Global IT Korea
This slide shows ICA Visions and Goals.
The ICA visions in 2003 are summarized in 5 categories.

28. ICA’s Global Network Foreign Partners for Global IT Network
 AEEMA (Australian Electrical and Electronic Manufacturer’s Association)
 ARIES (Romanian Association for Electronics and Software Industry)
 CIAJ (Communications and Information network Association of Japan)
 CAN (Computer Association of Nepal)
 ESC (Electronics and Computer Software Export Promotion Council of India)
 HKCR (Economic Chamber of the Czech Republic)
 ITAHK (Internet and Telecom Association of Hong Kong)
 TEEMA ( Taiwan Electrical and Electronic Manufactures’ Association)
 Association of CDMA Network Operators of Russia
This slide shows ICA Visions and Goals.
The ICA visions in 2003 are summarized in 5 categories.

29. ICA Business with France
To set up cooperation network
- ICA MOU with French Northern France Expert (NFX)
- ICA Business Exchange with Paris Regional Development Agency for
IT development
- Cooperation between ICA and Sophia Antipolis with information exchange
To facilitate business exchange
- Digiport dispatched broadband delegations to Korea for business meetings
- Korean IT companies have meetings with French companies in DICON2003
- Korean IT Delegation will visit France in April
This slide shows ICA Visions and Goals.
The ICA visions in 2003 are summarized in 5 categories.

30. Future Cooperation between Korea and France
Strength of Korea and France
Korea
World Class IT Frontier
High Tech. in IT
IT Hub in East Asia
France
Traditional IT Giant in Europe
Most Advanced in the field of Culture and Content
Economic Leader of EU

31. Future Cooperation between Korea and France Best Cooperation Sector
Digital Content
o Establishing Cooperation Network between Korea
and France in Digital Content (game, character, movie….)
o Promotion of Business Exchange in Digital Content
BEST IT PARTNER