IT Strategy Springboard to Higher Income
IT Strategy Springboard to Higher Income
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  • 승인 2005.03.01 12:01
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National income stagnated at $10,000 for 10 years
The Roh Moo-hyun government is betting that its IT policy will boost per capita gross domestic product (GDP) to $20,000. From the early days of his inauguration, President Roh had underscored Korea's need to seek a next-generation growth engine in the IT industry to raise national income. Since then, IT-oriented economic policies such as the designation of other growth engines and IT 839 have been a leitmotif of the Participatory Government. The IT 839 strategy, among President Roh Moo-hyun government's IT policies, seems to be the most forceful effort to raise national income. Under the strategy, new IT services will be introduced and promoted to encourage investment in network infrastructure, which will produce synergistic effects by way of the development of cutting-edge devices, equipment, software and contents. As the boundaries collapse in IT between industries and products owing to convergence, this will create further growth momentum in which new industries will be created says Minister Chin Dae-je, of the Ministry of Information and Technology (MIC). MIC is taking responsibility for accelerating national income to $20,000 through implementing the IT839 strategy by introducing new IT services, building infrastructure and diffusing the IT industry's development model. The strategy aims to boost production by 380 trillion won and exports by $110 billion by 2007 through introducing new 8 services. They include: WiBro, DMB, home network, telematics, RFID, W-CDMA, ground-wave DTV, and VoIP. The IT839 strategy also encompasses nurturing 9 new growth engines: next-generation mobile communications, digital TV, home networks, IT SoC, next-generation PCs, imbedded S/W, DC.S/W solutions, telematics, and intelligent-model robots plus 3 new infrastructures, namely BcN, USN, and Ipv6. IT industrys boundaries collapse President Roh committed himself to achieving a national income of $20,000 in his New Year's press conference by 2008 and forecast that Korea's economy will achieve advanced level according to several indexes by 2010. Over the last 2 two years, the government has devised a roadmap to achieve these twin aims. This roadmap involves such projects as the next-generation growth engines, balanced national development, the New-deal all-around investment plan, national technology innovation system (NIS) strategy, venture activation policy, u-Korea strategy, nurturing the parts material industry and government innovation. All these policies focus on tasks to boost the Korean economy, and take national income, which has stagnated at $10,000 per capita for 10 years, to the $20,000-level. IT is central to Participatory Government policies to achieve this level of national income. Actually, it has been playing a pivotal role in increasing exports, thus helping to boost its annual average growth to 13.2% over the past two years in spite of a worldwide sectoral slump. Last year's 240-trillion won output and $74.7 billion in exports underpin the IT industry's role. The Participatory Government's IT offensive includes the following: * Accelerating the IT839 strategy * Strengthening national digital capability * Promoting cooperation between large and small companies, * Ubiquitous Korea strategy. Biggest focus is on DMB In his National Assembly address on Feb. 25, President Roh said: "If the next-generation growth engine projects are driven as planned, national state-of-the-art industrial competitiveness will be enhanced to new levels". He explained, "Developing such next-generation growth engines as planned will contribute greatly to achieving a national income of $20,000". Among IT segments such as home networks that President Roh mentioned, whose competitive edge will be heightened even more, some fields including Digital Multimedia Broadcasting (DMB) are expected to have a huge impact on national income. Designated a new growth engine digital TV will help facilitate the introduction of DMB for the first time in the world this coming May, casting particular focus on satellite DMB and terrestrial-wave DMB. In particular, the potential of these DMB segments are believed to be even greater than overseas markets such as China, Central and South America, and Europe because the Korean government and domestic manufacturers have assumed leadership in international standardization of the technologies.
Home networks also are expected to undergo dazzling growth this year and is likely to come into its own as a new growth engine when such networks will be installed in 3.5 million households next year. Next-generation mobile communications, a field that includes telematics that offers traffic guidance and emergency assistance by using locational information and mobile communication networks, looks set to begin full-scale growth this year. WCDMA service also is a field to be worth noting, since its growth potential is quite significant in the next-generation mobile communication segment, while digital contents as well as S/W solutions, too, are attracting interest as new growth engine resources.

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