Government to Spend $341 million on IT Workforce Training

The Korean government has announced that it will spend $341 million to fund a four year program aimed at enhancing the country's information and communication technology sector.  According to the Joongang Daily, the money will be used primarily to train basic researchers for the corporate world, with lesser emphasis on training for employees of government agencies and in the IT convergence sector.  The money will be given primarily to universities across Korea to develop training programs and provide students with financial support.  The primary emphasis of this new funding, in a departure from past patterns, will be on graduate level training rather than undergraduate.

Korea's IT Growth Slows Since 2005

Citing a report by the Korea Chamber of Commerce and Industry, an article in the Joongang Daily notes that the growth of South Korea's IT Sector has slowed noticeably since 2005.  From 1989 until 2004 the sector grew at an annual average of 16.8 percent, but since 2005 the pace has fallen to the 4 to 7 percent range.  The report attributed the slowdown to three widening gaps.



1. Between software and hardware.  Between 2000 and 2008 the hardware industry recorded annual growth of 9.5 percent, while the software industry grew at an annual average of 7.5 percent.

2. Between finished goods and parts.  The report noted that domestic production of key parts in the IT industry remains weak.

3. Between large and smaller companies.  While the nation's 20 largest IT companies posted an 8.1 percent rise in average annual sales from 2000-2008, sales at smaller firms grew by just 4 percent annually.