S. Korea aims to be IT industry leader: minister

SEOUL, June 16 (Yonhap) -- South Korea will strive to become a "true" information
technology (IT) leader by building up its software, parts and manufacturing
machinery sectors, a senior official said Wednesday.
Knowledge Economy Minister Choi Kyung-hwan told a meeting of local entrepreneurs
that the country's IT industry is mainly centered on memory chips and display
areas, and unable to compete effectively in more value-added businesses.
"The country, in reality, is a major IT importer since it relies heavily on
foreign-made components and manufacturing machinery to make products," he said.
"Such reliance has limited growth potential."
He said that to overcome such weaknesses the government will help local companies
make inroads into software businesses and system-on-chip (SoC) manufacturing.
Both software and SoCs are more value-added than conventional memory
semiconductors and displays, and have potential to bolster the country's overall
growth potential. SoCs refer to integrating all components of a computer into a
single integrated circuit.
In 2009, South Korea exported US$15.8 billion worth of memory chips, but bought
$17.7 billion worth of SoCs from abroad.
Choi added that in order to give small software companies a chance to grow and
market their products, Seoul can take steps to control large electronic
conglomerates that have been cited for abusing their market dominating positions.
To strengthen the country's IT competitiveness, steps will be taken to localize
components and manufacturing machines, and further develop the rechargeable
battery industry, Choi said.
"A broad plan to build up the semiconductor industry is expected out in July,
with policies aimed at promoting development of software to be announced by the
end of this month," the minister said.
yonngong@yna.co.kr
(END)

Delete & Prev | Delete & Next