R&D Investment Focuses on Basic Science
The government has decided to shift the focus of its mid and long-term R&D investment to basic science, biotechnology, nanotechnology and new materials from information and electronics.
It will also find out 90 specialization technologies as a means of strengthening effectiveness of the state R&D project and developing more basic technologies. These steps were included in the nation's R&D project total road map decided at the 22nd state science technology committee held at Hotel Lotte in Seoul on December 21.
Under the road map, the government's R&D investment will be classified into four fields: an investment portion increase sector in biotechnology, energy, resources, environment and basic science; an investment portion gradual rise sector in materials, nanotechnology, space, aviation, maritime, construction, transportation and safety; an investment portion gradual decrease sector in machinery and manufacturing process; and an investment portion decline sector in information and electronics.
The government will also actively develop 90 specialization technologies to lead the world's technology market. Among them are next-generation network-based technology, mobile Internet and 4th-generation mobile communication technology, ubiquitous sensor network (USN) technology, information protection technology and stem cell application technology.
Government confirms informatization projects
The government has held a meeting of the Informatization Committee confirming 573 informatization projects for 2007, which require a budget of US$3.66 trillion.
This day the committee has confirmed the following informatization plans: informatization promotion enforcement plan by sector, IT architecture basic plan for public sector, 2006 informatization performance evaluation results, 2007 plan for narrowing the information gap, and the basic plan for knowledge information resource management.
According to the informatization promotion enforcement plan by sector, it includes 104 projects that require a budget of US$485 million. The typical ones among these projects are: RFID-based network building among companies, industrial information projects in the trade, science and development, and patent information management.
Through these efforts, the rate of e-commerce is to be increased from 19.5% in 2005 to 26% in 2007. The informatization plan related to the e-government includes 198 projects that require a budget of US$823 million. Main projects are: a computer center for government organizations, job management system, and administration information sharing. The informationintensive plan for people's everyday life covers 217 projects with a budget of US$2.24 trillion. The major projects in the plan are: the activation of e-learning, RFID-based waste management, e-passports, and disaster-related wireless networks.
Government Approves Arirang Plan
The Korean government has held a meeting of the National Space Council, the top deliberative body over space development policy, at the Lotte Hotel in Seoul on December 19, 2006 and approved the multi-purpose satellite Arirang 3A development plan that requires a budget of US$227 million.
The Arirang 3A is a sequel satellite of the Arirang 3 that is scheduled to be launched in 2009. In addition to the Arirang 3, which is to be equipped with an optical camera with a 70 cm-level degree of definition, the Arirang 3A has an infrared camera, which has a function to discern an object and take a picture of it.
If this infrared camera is added to the Arirang 3, it can extend its function into detecting wildfire and flood damage, analyzing the heat island situation, conducting surveillance of the waste water from the factories, and observing the activity of a volcano. Furthermore, it can recognize the starting of a car and landing and taking off of an airplane, so that it can be used for military purposes.
MOCIE
Plans to Promote Backbone Companies
Adopted five policy tasks The Ministry of Commerce, Industry and Energy (MOCIE) announced that it will increase the 700 backbone companies (0.5% of total domestic companies) to 1,400, or 1%, by 2015, which amounts to the level of advanced countries. Here the backbone company refers to the companies that have more than 300 employees and sales of 40 billion Korean won (US$43 million). There is no legal definition on the backbone company, but the business groups are excluded in this definition of a backbone company. In order to promote and increase the backbone companies, the MOCIE has adopted the following five policy tasks: promotion of M&A among the backbone companies or small and medium companies, strengthening of global innovation capacity, promotion of backbone companies that go together with large companies, expansion of the companies that produce parts and materials, helping potential small and medium businesses to develop into backbone companies.
First of all, concerning the promotion of M&A among the backbone companies or small and medium business, the MOCIE plans to make current M&A clauses more flexible, so that they can be applied to many companies of middle standing instead of being confined to only venture companies. Also the existing M&A-related clauses will be changed into more market- friendly ones.
Secondly, in order to strengthen the global innovation capacity of many medium- sized companies, the government will expand the technology management education and also strengthen the R&D program suitable to the companies of middle standing. Thirdly, to make both large companies and medium-sized companies go together, the government will help them to commonly develop a new technology, pursuing a symbiotic effect, improving a cooperation system between large companies and many small suppliers, eventually enhancing the efficiency of purchase, production, and logistics.
Fourthly, to support the potential companies that are supplying parts and materials, the MOCIE will help them to expand their investment in both domestic market and overseas market, while supporting their launching into the global market. Finally, to make potential small and medium businesses grow into backbone companies, the government will push ahead with a stimulation package, which includes R&D, equipment setup, manpower education, and standardization.
Korea Aims for Top Four Technology development is the key to the future
Korea aims at becoming one of the world's top four industrial superpowers through technology development of future prospective industries, Minister of Commerce, Industry and Energy Chung Sye-kyun said.
At a ceremony to proclaim the vision of future industrial technology held at Westin Chosun Hotel in Seoul on December 21, Chung said that the government will exert its best efforts to become one of the world's top 10 in economy and top four in industry by developing future-oriented new technologies.
Related to this, the government has selected 15 strategic technologies consisting of seven main industrial technologies, four prospective technologies and another four basic technologies.
The seven main industrial technologies are semiconductors, displays, automobiles and shipbuilding, textile clothing, production systems, chemical process materials and metal materials.
The four prospective technologies are biotechnology, next-generation robotics, digital convergence and next-generation medical equipment, and the four basic technologies are nanotechnology, production, cleanliness and knowledge service. Experts from industries, universities and research centers have so far been showing keen interest in the 15 strategic technologies.
At the same time, the Ministry of Commerce, Industry and Energy has decided to supplement the existing industrial technology R&D system and actively support future-oriented technologies based on results and quality growth.
About 60 percent of the nation's R&D budgets for industrial technology will be spent for development of the 15 strategic technologies.
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MIC
MIC Selects Advanced Information Technologies
The Ministry of Information and Communication (MIC) held the second meeting of the IT-based Future Technology Review Committee at the MIC office on December 19. Kim Su-sam, vice president of Hanyang University, is also the chairman of the committee. It has selected 21 advanced information technologies, which can be categorized into three groups: the first is an advanced information technology group, the second is an IT-based convergent technology group, and the last is an IT-based expanded technology group.
These three groups include 7 technologies each.
The advanced information technology group includes the following typical technologies: least-consuming battery technology, high-precision global positioning system, super large capacity information processing technology and intellectual terminals, and high capacity all-purpose networks.
Kim Su-sam, chairman of the Future Technology Review Committee, said: "We hope this research results will play an important role in the future information technology development, so that it will make contribution to building a strong IT nation in the 21st century."
Planning Knowledge Information Resource Management
On December 14, 2006, the Ministry of Information and Communication (MIC) held a meeting of the Knowledge Information Resource Management Commission, confirming the basic plan for knowledge information resource management for the next five years from 2007 to 2011, and decided to invest US$1.97 billion during this period. This basic plan aims to help the accumulation of knowledge information and the enhancement of distribution efficiency of knowledge and information, so that this effort may contribute to making Korea a top knowledge nation in the 21st century. The MIC plans to take advantage of the accumulated information infrastructure, experiences and know-how for the implementation of this basic plan.
Outline of basic plan
To make it easy and convenient for the government, enterprises, and the general public to retrieve and use the knowledge information of high quality, this basic plan aims to build a productive utilization system. To this end, the MIC will step up the exploration of strategic industries including software, radio frequency identification (RFID), and intellectual robots. By capitalizing on the National Knowledge Portal (www.knowledge.go.kr) as a typical portal of public information, the government plans to build a nationwide knowledge network, eventually making it easy and convenient to make use of various kinds of knowledge and information that is produced by both public sector and private sector.
Digitalization of knowledge information resource
The basic plan has been made from the judgment that the existing resource management system needs an overall supplement.
In fact, the government had already electronically built the utilization system of knowledge and information. However, it has little prevailed in the aspect of usage. To complement this weak point and to increase the rate of utilization, digitalization of knowledge and information will be made on the basis of a demand survey. As mentioned above, the basic plan aims to build a nationwide network by capitalizing on the national knowledge portal. To this end, the current 908 organizations linked to the national knowledge portal will be expanded to 1,500 organizations. Also, a new technology such as knowledge information architecture standard model will be introduced for the sake of convenient retrieval and smooth information distribution.
Confirming Development Direction
IT 839 strategy 2007 On December 18, the Ministry of Information and Communication (MIC) held an IT 839 strategy meeting and confirmed the technology development direction of information and communication, which focuses on activating the market for the newly developed services and on commercializing new technologies. According to the implementation direction, in 2007 the government plans to develop the third generation evolution system that will increase the speed of WCDMA to 30 Mbps, 15 times faster than its current speed. Also, it plans to complete the development of mobile phone-embedded RFID reader technology and gigabit-level data cable transmission systems, while stepping up the commercialization of these technologies on a full-scale basis.
To this end the government has decided to invest US$502 million in the development of IT growth engine and original technology. US$120 million of the budget will be used for the development of 51 new technologies for the ubiquitous computing society to come since 2010.
The new R&D tasks for the ubiquitous computing society include the portable Internet WiBro technology to be applied to the national defense, 3 dimensional DMB technology, projection input output technology, and airplane embedded software technology. An official of the MIC said: "The new services such as WiBro and DMB are slow in being spread in the market, and so the MIC will focus on activating the market of new services, create new demand and induce investment in line with growth momentum."
November Marks New Record for IT Exports
According to the Ministry of Information and Communication (MIC) on December 4, 2006, IT exports in November increased by 9.9% year on year to US$10.9 billion, recording an all-time high as a monthly exports. In particular, for three months since last September 2006, the monthly exports have exceeded the US$10 billion level. As a result, the total exports until November have reached US$103.9 billion. The IT imports for November have stood at US$5 billion, thus recording a trade surplus of US$5.9 billion.
The reason for favorable export trends in November comes from a seasonal factor such as Thanksgiving Day and Christmas Holidays. By item, thanks to the launch of Windows Vista, the exports of semiconductors have recorded an all-time high of US$3.9 billion per month. Mobile phones also have reached a new monthly high of US$2.5 billion since the beginning of this year. Due to the increasing demand on large-size LCD TV, the panel exports has also reached US$1.6 billion a month.
Three IT export items -- semiconductors, mobile phones, and panels -- have all showed a favorable trend. By region, exports to China have increased by 14.7% to US$4 billion a month year on year, reaching a monthly record of US$4 billion for the first time in history. The exports to the USA have also increased by 15.7% to US$1.2 billion. The MIC said: "As both semiconductors, which are recently enjoying special demand because of Windows Vista, and panels are dominating the global market, the favorable trend of IT exports is expected to be continued for the time being and the total IT exports for 2006 are expected to reach US$113 billion, slightly exceeding the forecasted figure of US$112.4 billion for 2006."
MND
Another Kind of Telephone Evolution
Starting up a VOIP system in January The Ministry of National Defense (MND) has decided to set up an IP Centrex-based Internet Telephone Network for the nationwide 3,666 companies of reserve forces, which is to provide a Voice over Internet Protocol (VoIP) service starting from January 2007. To this end, the MND has recently signed a contract with Big Itel for the establishment of a VoIP system and service provision. Recently, some government organizations including the Ministry of Information and Communication, Ministry of Labor, and Korea Customs Service are now conducting a test before the full-scale introduction of a VoIP service. Ahead of these organizations, however, the MND has aggressively decided to set up the VoIP system, consequently stirring up other public organizations to introduce this system. The quality and security of VoIP service will be tested in the reserve forces, and then if it proves to be agreeable, this system will be expanded to the whole front line troops of the army.
Stock Market Promising IT Stocks for 2007
Around the year end most securities companies usually present their promising stocks for next year. Individual investors cannot help paying attention to these hopeful stocks recommended by securities companies. In most cases, if the analysis and recommendation of the securities companies is correct and reliable, it will make great contributions to the reliability and reputation of those companies. What are promising IT-related stocks for 2007 Let's see the recommended stocks by 10 domestic major stock companies including Samsung and Daewoo.
Eight out of ten securities companies have recommended Samsung Electronics and Hynix Semiconductor as promising stocks for 2007. Thanks to the launch of Windows Vista, analysts believe that demand for semiconductors will continue to expand steadily. Daewoo analyzes: "Owing to Windows Vista, the memory market for 2007 is expected to increase by 29% to US$60.6 billion, thus recording an all-time high. For this reason, we advise weight expansion for semiconductorsrelated stocks." Woori Investment Securities also said: "By the effect of the Windows Vista launch, the DRAM industry is expected to meet with stable growth and the NAND industry also is forecast to grow continuously along with diverse applications."
Meanwhile, in the KOSDAQ market, NHN, Daum and In Tops are attracting an investors' attention. Following Samsung and Hynix, many securities companies are recommending the Internet portal NHN. Samsung Securities forecasts: "Based on its solid market share of 69% in the search ads market, it is expected to show a continuing growth." Daum Communication has been recommended for its growing online ads market and new service of user created contents. As for the typical mobile phone parts maker In Tops, Daeshin Securities said: "It is expected to hold the top position as a main case supplier to Samsung Electronics at home and abroad." As for other promising stocks, there are KT recommended by 4 securities companies, and Samsung Electromagnetic, LG Electronics, and Core Logic that are recommended by 3.
Software Manpower Continuing Shortage of Skilled Software Manpower
2007 shows no signs of increase The Korea Software Technology Promotion Association has made a survey of 115 major domestic software companies in order to find out the reality of manpower employment and education of domestic software companies from September to November 13. According to the survey, the total manpower employment for 2007 is scheduled to be 2,079 persons, 19.8 persons per company. This year of 2006, the total manpower recruitment has stood at 1,985 persons. Compared with the year of 2006, employment for 2007 has increased by 5%.
Tmax Soft, the system software company, has employed 500 persons this year, but it plans to hire 550 for 2007, 10% increase over the previous year. BICNS, the CRM specialist, also plans to recruit 30, 10% over this year of 2006. Another software developer Winez is going to employ 200 for 2007, which employed 146 in 2006. An official of this company said: "Sudden increase of software manpower employment comes from rapidly growing sales. In fact, large software projects demand a sudden employment of skilled workers. However, the software companies are still in want of skilled manpower. There is a wide gap between the manpower required by the industry and the manpower supplied by educational institutions. In fact, the total software manpower required by the software industry is 2,468 for 2007, but the actual employment plan of the industry stands at 2,079. As a result, the shortage of software manpower amounts to 16%.
KISDI
IPTV Gaining Popularity Overseas First
On December 7, 2006, the Korea Information Society Development Institute (KISDI) released a report on IPTV Business Developments and Outlook in Europe. According to the report based on the estimation of the Gartner Group, the number of IPTV subscribers in Europe reached 1 million last year, but this year it is estimated to reach 3.3 million, and in 2010 it is forecast to reach 17 million. The report has revealed that France, Spain, Germany, and Switzerland had introduced IPTV, now stepping up the inducement of subscribers, and the BT Group of the UK has recently launched in the IPTV service.
In the ITU Telecom World 2006 held in Hong Kong, PCCW, the IPTV service provider in Hong Kong attracted many people's attention. Since it began its IPTV service in August 2003, PCCW has secured 560,000 subscribers. Also, the state-run telecommunication company in Taiwan is expected to secure 100,000 subscribers by the end of this year, targeting to increase its subscribers to 1 million within three years.
Meanwhile, in contrast with overseas IPTV service providers' aggressive efforts, Korea has not yet clarified its commercialization schedule for IPTV. Last month after a lot of turns and twists, the two telecommunication service providers have started to conduct a model service, and the government has announced the schedule of commercialization, which is expected during the period of 2007. But still it is not clear whether it will be done as scheduled.
On December 6, 2006, the government prepared and notified the legislative bill on the establishment of the Broadcasting and Communication Commission, a preliminary name, which is to take control of domestic broadcasting and communication industry. But as the opposition party is opposed to the bill, it will not be easy to pass the National Assembly.
