Hardware vs. Software: Korea's Growing Dependence on Manufacturing

The Joongang Daily and other media are reporting today on a new Bank of Korea report that shows Korea's increasing dependence on its manufacturing sector over the past nine years.  (Click on the accompanying graphic to see a full size version)  Last year the manufacturing industry created total value worth $257.4 billion, or 30.6 percent of the country's total.  This represented the first time that the percentage from manufacturing exceeded 30 percent and it was also a significant increase over earlier years.

In terms of the focus of this blog, it is significant that Korea's manufacturing industries are led by electronics.  In other words, these figures reflect a heavy reliance on the manufacture of semiconductors, mobile handsets, flat screen television sets and computer monitors and other electronic components.  This compares with relatively small production of software and content, which comprises by far the bulk of the global ICT industry.  The Bank of Korea also reported that last year's exports tied to the manufacturing sector were 5.6 times greater than exports by the service sector.

According to an official from the Knowledge Economy Ministry, “There is a need to develop high-value service sectors such as medical, information technology, finance and insurance in addition to low-value service sectors such as retail and lodging.”

Speed: The Giga-Korea Project

Recent posts have noted South Korea's continued world leadership in broadband internet connection speeds, and its demonstration outside the lab of a new, fast advanced-LTE technology.  To place this country's emphasis on internet speed, present and future, in context one needs to consider the newly-announced Giga-Korea project.  Under the banner of "Giga Korea," both the private and public sectors will push ahead with a mega-scale network R&D plan from 2012 to 2020. By means of it, the government intends to turn Korea into the country where the world’s finest mobile telecom service is provided.

As reported by The Electronic Times, the KCC (Korea Communications Commission) and Knowledge Economy Ministry announced the three-phased blueprint to achieve mobile communication leadership for the future on January 26. The participants, including several other ministries, are going to come up with the relevant details by the middle of this year. The total budget for the project amounts to 10 trillion won.

NationwideTest of State-run English Exam

As reported in The Korea Times, a pilot test for the National English Ability Test or NEAT was held in Seoul and 17 cities across the nation on Saturday.  The domestic test, designed to compete with TOEIC and TOEFL, will officially start next year and the government hopes that it will be used as key data for universities and companies to recruit students and employees.  A total of 4,000 applicants took the test, which consisted of four sections -- reading comprehension, listening comprehension, speaking and writing.  NEAT offers three levels of tests, one for adults to evaluate business skills, and the other two for  high school students. The tests have been developed by the Korea Chamber of Commerce & Industry, Korea University, Seoul National University, Sookmyung Women’s University and Hankuk University of Foreign Studies.