Growth of S. Korea's IT industry slows from 2005

By Nam Kwang-sik
SEOUL, Dec. 23 (Yonhap) -- The once explosive growth of South Korea's information
and technology (IT) industry has begun to slow down in recent years due to an
imbalance in the expansion of related sectors, a private report said Wednesday.

The country's IT industry grew by an annual average of 16.8 percent since 1989,
but since 2005 the pace of growth has fallen to within the 5-7 percent range,
according to the report by the Korea Chamber of Commerce and Industry.
The growth of South Korea's IT industry exceeded global standards throughout the
1990s, though in the past four years it has remained on par with other nations,
the report said.
The slowdown was attributed to a widening gap in the growth of three IT sectors
-- hardware and software, finished goods and parts, and large and small-and
mid-sized companies -- the report said.
Between 2000 and 2008, the hardware industry recorded an annual average growth
rate of 9.5 percent, while the software industry grew by an annual average of 7.5
percent.
Domestic production of key parts in the IT industry remains weak, while the
industry has a high level of dependence on foreign countries in the material and
equipment sectors.
While the nation's 20 largest IT companies posted an 8.1 percent rise in annual
average sales from 2000-2008, sales at other firms grew by just 4 percent
annually, the report said.
ksnam@yna.co.kr
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