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Korea`s Major Manufacturing Industries : History and Vision

Author Park(J.K) Ju(h) Kim(J.H) Date 1997.10.01 Page 0
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The Korean computer software and service industries got their start in the late 1960s when computers were first introduced into Korea. The industrial base of the Korean computer software and service industries was formed in 1980s when computers were being widely used. Since then, the market size of computer software and service industries has grown remarkably. The reasons for this surge are the spreading global informatization and the growth in popularity of PC users in Korea. The latter trend was thanks to the planned information-related big-size projects in the public sector and the fact that many companies established their own information systems. Although the Korean computer software and service industries has expanded quantitatively, it has done so by depending on the developed countries. The industry has grown without the quality improvement largely because of the expansive technological gap between Korea and the developed countries. Therefore, the Korean computer software and service industries is still, in fact, in the initial stage of development. The structural problems in the Korean computer software and service industries need to be solved to make adjustments and essential improvements to high value-added industry in order to enhance the global competitiveness. The government must establish a foundation for informatization which will create the viability of the private companies through new demand creation. Also, the government must create a favorable industrial enviornments with appropriate laws and institutions and industrial infrastructure, all of which will bring to the nation an efficient supply of inputs such as technology, labor and capital.Companies have to invest more on the technology-intensive than on labor-intensive processing and concentrate their efforts on reengineering so as to make more high value-added products.