Hardware vs. Software: Korea's Growing Dependence on Manufacturing

The Joongang Daily and other media are reporting today on a new Bank of Korea report that shows Korea's increasing dependence on its manufacturing sector over the past nine years.  (Click on the accompanying graphic to see a full size version)  Last year the manufacturing industry created total value worth $257.4 billion, or 30.6 percent of the country's total.  This represented the first time that the percentage from manufacturing exceeded 30 percent and it was also a significant increase over earlier years.
In terms of the focus of this blog, it is significant that Korea's manufacturing industries are led by electronics.  In other words, these figures reflect a heavy reliance on the manufacture of semiconductors, mobile handsets, flat screen television sets and computer monitors and other electronic components.  This compares with relatively small production of software and content, which comprises by far the bulk of the global ICT industry.  The Bank of Korea also reported that last year's exports tied to the manufacturing sector were 5.6 times greater than exports by the service sector.
According to an official from the Knowledge Economy Ministry, “There is a need to develop high-value service sectors such as medical, information technology, finance and insurance in addition to low-value service sectors such as retail and lodging.”

Speed: The Giga-Korea Project

Recent posts have noted South Korea's continued world leadership in broadband internet connection speeds, and its demonstration outside the lab of a new, fast advanced-LTE technology.  To place this country's emphasis on internet speed, present and future, in context one needs to consider the newly-announced Giga-Korea project.  Under the banner of "Giga Korea," both the private and public sectors will push ahead with a mega-scale network R&D plan from 2012 to 2020. By means of it, the government intends to turn Korea into the country where the world’s finest mobile telecom service is provided.
As reported by The Electronic Times, the KCC (Korea Communications Commission) and Knowledge Economy Ministry announced the three-phased blueprint to achieve mobile communication leadership for the future on January 26. The participants, including several other ministries, are going to come up with the relevant details by the middle of this year. The total budget for the project amounts to 10 trillion won.

NationwideTest of State-run English Exam

As reported in The Korea Times, a pilot test for the National English Ability Test or NEAT was held in Seoul and 17 cities across the nation on Saturday.  The domestic test, designed to compete with TOEIC and TOEFL, will officially start next year and the government hopes that it will be used as key data for universities and companies to recruit students and employees.  A total of 4,000 applicants took the test, which consisted of four sections -- reading comprehension, listening comprehension, speaking and writing.  NEAT offers three levels of tests, one for adults to evaluate business skills, and the other two for  high school students. The tests have been developed by the Korea Chamber of Commerce & Industry, Korea University, Seoul National University, Sookmyung Women’s University and Hankuk University of Foreign Studies.

Employment Effects of Mobile Broadband Boom in Korea

An article in The Korea Times caught my eye this morning.  Entitled "Mobile boom proving as economic catalyst?" it offered some details about the impact of the current mobile broadband boom and "smartphone shock," on employment patterns in South Korea.  In particular, government figures show that the number of creative one-person enterprises in the country increased sharply last year on the strength of the explosion in internet devices and content.  According to the Small and Medium Business Administration (SMBA), the nation's one-man enterprises reached 235,000 in 2010, up 15.7 percent from the preceding year, and the number accounts for about 1 percent of the economically active population.
The number of people who want to develop applications has been on the increase, said an instructor at a local information technology educational institution, which offers an education service on applications. Reportedly, those who are familiar with computer programming can develop an application after a one-month course.
The government report also said that more than 60 percent of those who established one-man creative enterprises had earned bachelor's degrees or higher academic qualifications.

Korea Tests Operational 4G Mobile System

Korea has become the first country in the world to demonstrate a high-capacity, super speed mobile telecommunications system outside of laboratory conditions.  As reported by Yonhap, the state-run Electronics and Telecommunications Research Institute (ETRI) tested a Long-Term Evolution Advanced (LTE-Advanced) system. The accompanying photo of the test was published in The Korea Herald. (click to see a larger version)The technology acquired meets 95 percent of the requirements needed for a functional 4G mobile communications system, he said, adding technologies not yet developed must wait for the creation of a worldwide standard on 4G telecommunications that is expected to be set by the International Telecommunication Union in April.  The research took over five years and cost ETRI an estimated 64 billion won (53 million dollars) to complete.  According to Yonhap, ETRI reported acquiring 24 patents related to LTE-Advanced and has applied for intellectual property protection on 500 processes learned during the research and development stage. South Korean companies may hold least 23 percent of all patent rights on 4G communications technology, up from 19 percent for 3.9G and 10 percent for 3G wideband code division multiple access, it added.