CeBIT Hannover, one of the world's most acclaimed exhibitions in the field of information and telecommunications, will kick off its 21st annual event on March 9. In 2005, the exhibition certainly lived up to its reputation as a world-renowned showcase for IT products, with the participation of 6,246 companies from 69 countries, demonstrating their technological prowess to over 470,000 visitors. For this year, too, global companies such as Microsoft, IBM, Dell and HP have been preparing for the event determined not to dent their reputations. On Korea's part, too, such big names as Samsung and LG are set to take part, while KOTRA and the Korea Electronics Association plan to assist small and mid-sized IT enterprises (SMEs) for their participation in the Korean Pavilion with 124 booths. To SMEs in the IT field, CeBIT, Hannover, Germany is highly important. Whereas the CES held annually in Las Vegas in the United States in the early part of the year has a distinct characteristic of being a showroom for displaying new products, CeBIT has maintained its fame as an exhibition where IT companies reap the fruits through the signing of contracts with buyers. For some time, Korean companies have taken part in CeBIT and satisfactorily demonstrated Korea's strength in the IT field. In the case of Incheon-based IT companies, too, 13 companies have succeeded last year in concluding contracts worth 23.58 million dollars. In some cases, the contract money has far surpassed a company's yearly revenue. For the past three years, Korea's IT industry has led the nation's economy with a 19% growth on average, accounting for about 15% of the GDP and 27% of exports. It has secured the world's top competitiveness in the fields of semiconductors, mobile phones and PDPs while quite a number of competitive SMEs have also sprung up. Nevertheless, the energetic IT industry is virtually dependent on a few conglomerates. From the perspective of job-creation, SMEs acting as the basis of the nation's economy, the competition in the domestic market has become ever fiercer, with a limited market. Moreover, these SMEs are faced with growing difficulties due to the relentless chase by latecomers of developing nations, including China. Under such circumstances, I would like to make few suggestions to Korean IT SMEs to capitalize on the CeBIT and become world-renowned global companies. Firstly, it is important that they unfold marketing and compete in overseas markets with their own brands. For some time, many IT companies have adopted the Original Equipment Manufacturer (OEM) method for export as they have regarded it to be less risky, possibly due to the considerable hurdles in making inroads into overseas markets. And yet, these companies should do away with the practice of engaging in price competition with rival companies from developing nations for the sake of creating high values and securing mid and long-term marketing channels. They should compete with their own brands while properly managing buyers from drifting away and enhancing the market recognition of their brands. Since CeBIT Hannover is the world's top stage for buyers, it is time to find ways to overcome challenges in the global market through one's own brands, however difficult and tiresome it may be. Secondly, it is advantageous to make the best use of IT promotion agencies at home and abroad. As there will be more than 6,000 companies immersed in stiff competition for marketing at CeBIT, it is essential to secure overseas distribution channels and unfold various sales activities. However, it requires time and energy to have a good grasp of local markets and prepare countermeasures. Today, IT promotion agencies, including KOTRA and the Korea Electronics Association, share information on overseas markets and have been engaged in a mission to assist the carefully-selected IT companies seek opportunities overseas under the umbrella of 'IT Korea.' Accordingly, if one makes the best use of putting such cooperation into practice, one can bring about new breakthroughs by saving considerable time and money and raise the chances of a business success. Thirdly, the benefits of participating in overseas exhibitions can be elevated only when sought relentlessly. An instance of this can be seen in a company that succeeded in concluding a contract through a re-encounter with a buyer at GITEX following a similar one at CeBIT. By making prearrangements with buyers for encounters at Hannover, one can expand human networking. Moreover, when one wins the confidence of buyers through continuous participation in exhibitions and contacts with buyers, the subsequent fruits will be enriched. The competition among nations and companies in the world IT market is growing more and more intense. If it were not a global IT company with a worldwide network, the opening of overseas markets by SMEs alone is thought to be extremely difficult. Moreover, the stiff competition among SMEs and the business environment surrounding the world market have become and continue to be more unfavorable to SMEs with the passing of time. Nevertheless, the future prospects are bright, as Korea's image as a high-tech power has already been disseminated and the expectations for 'IT Korea' have resulted in the choosing of Korean products. I hope that Korean SMEs in the IT field can expand their technological power and growth prospects through 2006 CeBIT and lay the basis for becoming invaluable players on the global scene.