Semiconductors, Korea's lead export, are like rice

I am told that back in the late 1970s when Korea's world-leading semiconductor industry was only a vision and long-term goal, policymakers and industry leaders referred to semiconductors (also called chips) as "rice" (쌀 in Korean as in the phrase

‘전자산업의 쌀’ 반도체). The purpose of the metaphor was to convey that semiconductors would be, like rice, a staple commodity. 

Today, there is abundant evidence that chips are a staple of the burgeoning global ICT sector. As reported this week by The Korea Times, they are now Korea's leading export, comprising 16 percent of 2017 exports. The dominance of semiconductors in Korea's export-led economy is illustrated in the accompanying graphic (click for a full size version), published in an article last month by The Korea Herald. As this article notes, commodity markets have their ups and downs and so there is risk in over-reliance on the semiconductor sector. There would be a similar risk if this nation were so heavily dependent on the export of rice.

Why Samsung and LG dominate Korea's smartphone market

A short but very interesting article in The Korea Herald helps to answer the question of why Samsung and LG are so dominant in the local smartphone market here in Korea.  Entitled "Foreign makers keep eye on changes in smartphone distribution" the article begins by noting that foreign smartphone manufacturers are paying attention to lawmakers' efforts to reform smartphone distribution channels. "Currently, the Korean smartphone market is dominated by two local firms -- Samsung Electronics with a 63.8 percent share and LG Electronics with 11.8 percent.  Apple holds an 11.9 percent share."
The article goes on to note that "The solid presence of Korean firms is partly driven by the nation’s unique distribution channels in which local telecom carriers entice customers by giving subsidies for Samsung and LG phones, based on prior arrangements between the carriers and handset makers.  They provide less subsidies for Apple phones, as they have no prior arrangement with Apple, and provide none to other Chinese and Japanese brands because their phones are not sold via mobile carriers but through their own stores or online."
Furthermore, " In Korea, only 8 percent of smartphone owners bought devices without going through telecom operators compared to the global average of 61 percent, according to the US research firm Strategy Analytics."
It would appear that the days of such overwhelming dominance by Samsung and LG are about to end.  Smartphones themselves are modular in nature and quickly become commoditized.  These trends suggest that Korea's leading companies, while not abandoning the design and manufacture of smart phones, need to move toward the software and services that these devices carry.

FIT Opening Ceremony -- October 19, 2017

A great opening ceremony. A great way to welcome FIT to SUNY Korea.

Korea's current buzzword: The 4th Industrial Revolution

In South Korea these days, the media are full of references to the "fourth industrial revolution."  Every week seems to bring news of another international conference or ministry pronouncement about this revolution, as if it were an accepted reality.  In fact, it is not universally accepted, and only in South Korea is the "fourth industrial revolution" so widely discussed and accepted.
I did a bit of quick research using Google Trends.   The first graphic (click for a full size version) shows patterns of worldwide search activity on Google for "fourth industrial revolution" and "third industrial revolution" from 2010 through the present.  Note that the "third industrial revolution" is the title of a book published in 2011 by Jeremy Rifken, who himself disputes the claim that we have entered a "fourth industrial revolution."  Not coincidentally, global search activity for "third industrial revolution" peaked in 2011, when Rifken's book was published.  Similarly, searches for "fourth industrial revolution" peaked starting in January of 2016 when Klaus Schwab convened the World Economic Forum around that theme and released his short book on the subject.

However, looking at global search patterns over time is only part of the picture.  As shown in the second world map graphic (click for a full size version) which I captured while hovering over the dark red shading on South Korea, the search intensity index for Korea was 100 or highest in the world.  The next highest index was 69 in South Africa.  Interestingly, there was 0 search intensity in South Korea for "third industrial revolution."
For those of you interested in why Rifkin disagrees with Klaus Schwab's contention that we've entered a "fourth industrial revolution," I refer you to his argument in the Huffington Post.   Despite being a buzzword here in Korea, perhaps there are good reasons that it hasn't caught on all around the world.

ITU Book launched October 11

The book mentioned in my previous post,  ICT-centric economic growth, innovation and job creation, was officially launched on October 11 in Buenos Aires Argentina. (click on the photograph taken at the launch for a full size version) A free copy of the book can be downloaded at this hyperlink.   Also, interviews with the experts who authored chapters can be viewed by clicking on their names under the photographs at the bottom of this ITU web page.  I authored Chapter 7, entitled "The Future of ICT-driven Education for Sustainable Development."