Market OverviewSouth Korea's IT market is projected to continue to strengthen this year, after signs of a continued upturnin consumer demand in the first half of 2010. South Korean IT spending is expected by BMI to increasefrom US$16.1bn in 2010 to around US$20.3bn in 2014. There will be a number of key growth areasincluding notebook PCs, IT outsourcing, hosted applications and industry-specific software applications.Going into 2010, the consumer segment continued to drive IT market growth due largely to increasedconsumer sales of notebooks. Corporate IT spending should also pick up, however, as businessconfidence improves following a resurgence of orders in the wake of the economic slowdown. New cloudcomputing offerings are expected to fuel further demand from end-users to utilise this technology anddrive investment in data centres.In the consumer segment, growing broadband penetration and rising demand for notebooks will continueto be growth drivers. In the enterprise segment, the industry trend is towards specialised vertical-specificapplications. Demand for advanced IT services such as outsourcing is expected to show a strong growthtrajectory.Industry DevelopmentsSouth Korea has announced that it is to spend US$224.5mn to prepare to launch fully fledged cloudcomputing services in 2010. Around 73% of the funds will come from the state, with the money beingused to develop technology and build infrastructure required to support the service. The government willalso move to reform potential administrative and legal barriers to cloud computing, which it aims tocomplete by 2013.In Q210, the South Korean communications regulatory lifted a briefly imposed ban on imports of theApple iPad for personal use. The ban had been in place because the iPad's wireless networking featureshad not yet certified, but the local media had delighted in exposing South Korean celebrities who had thegadget.South Korea plans to invest KRW400bn (US$341.1mn) by 2013 to help develop the domestic softwareindustry. In March, the government announced that it would spend US$27.4mn in 2010 on support for asoftware training programme that will aim to produce more software entrepreneurs. The government'sambition is for South Korea to become a global software power as well as a leading hardware producer.Competitive LandscapeIn July, South Korea's biggest wireless operator SK Telecom was reported to be in talks with Apple tooffer the iPad. SK's main rival, KT Corp, has exclusively offered Apple's iPhone, but the US technologyfirm reportedly preferred to work with multiple vendors in South Korea. Meanwhile, in August, KT Corpsaid that it would release an Android-powered tablet PC made by South Korean manufacturer Enspert.The banking and financial services sector is a key target for vendors. In May, US consulting companyAccenture signed an eight-year collaboration agreement with local company Hanhwa S&C to jointlymarket IT solutions and services to insurers, securities firms and banks in South Korea. Hanhwa will helpAccenture tailor its financial services solutions to the South Korean market. For its part, IBM announcedin April that it won a seven-year contract to provide technology and services to Dongbu Insurance,South Korea's second largest non-life insurer.Computer SalesAccording to BMI projections, sales in South Korea's PC market will be worth around US$3.4bn in 2010,with single-digit growth from 2009. Total PC revenues including notebooks and desktops are forecast torise to US$4.0bn in 2014 at a compound annual growth rate (CAGR) of 4%.The main driver in 2010 will remain notebooks, with shipments driven by demand for slimmer, lighterand more attractive models with multimedia and entertainment features as well as wireless connectivity.3G wireless network expansion will also help to drive sales. Laptops already dominate the consumer PCmarket, accounting for more than 60% of household PC sales in some quarters of 2009.SoftwareSoftware spending is forecast at US$5

1. Find Industry reports, Company profiles
ReportLinker and Market Statistics
>> Get this Report Now by email!
South Korea Information Technology Report Q4 2010
Published on October 2010
Report Summary
Market Overview
South Korea's IT market is projected to continue to strengthen this year, after signs of a continued upturn
in consumer demand in the first half of 2010. South Korean IT spending is expected by BMI to increase
from US$16.1bn in 2010 to around US$20.3bn in 2014. There will be a number of key growth areas
including notebook PCs, IT outsourcing, hosted applications and industry-specific software applications.
Going into 2010, the consumer segment continued to drive IT market growth due largely to increased
consumer sales of notebooks. Corporate IT spending should also pick up, however, as business
confidence improves following a resurgence of orders in the wake of the economic slowdown. New cloud
computing offerings are expected to fuel further demand from end-users to utilise this technology and
drive investment in data centres.
In the consumer segment, growing broadband penetration and rising demand for notebooks will continue
to be growth drivers. In the enterprise segment, the industry trend is towards specialised vertical-specific
applications. Demand for advanced IT services such as outsourcing is expected to show a strong growth
trajectory.
Industry Developments
South Korea has announced that it is to spend US$224.5mn to prepare to launch fully fledged cloud
computing services in 2010. Around 73% of the funds will come from the state, with the money being
used to develop technology and build infrastructure required to support the service. The government will
also move to reform potential administrative and legal barriers to cloud computing, which it aims to
complete by 2013.
In Q210, the South Korean communications regulatory lifted a briefly imposed ban on imports of the
Apple iPad for personal use. The ban had been in place because the iPad's wireless networking features
had not yet certified, but the local media had delighted in exposing South Korean celebrities who had the
gadget.
South Korea plans to invest KRW400bn (US$341.1mn) by 2013 to help develop the domestic software
industry. In March, the government announced that it would spend US$27.4mn in 2010 on support for a
software training programme that will aim to produce more software entrepreneurs. The government's
ambition is for South Korea to become a global software power as well as a leading hardware producer.
Competitive Landscape
In July, South Korea's biggest wireless operator SK Telecom was reported to be in talks with Apple to
offer the iPad. SK's main rival, KT Corp, has exclusively offered Apple's iPhone, but the US technology
firm reportedly preferred to work with multiple vendors in South Korea. Meanwhile, in August, KT Corp
said that it would release an Android-powered tablet PC made by South Korean manufacturer Enspert.
The banking and financial services sector is a key target for vendors. In May, US consulting company
Accenture signed an eight-year collaboration agreement with local company Hanhwa S&C to jointly
market IT solutions and services to insurers, securities firms and banks in South Korea. Hanhwa will help
Accenture tailor its financial services solutions to the South Korean market. For its part, IBM announced
in April that it won a seven-year contract to provide technology and services to Dongbu Insurance,
South Korea's second largest non-life insurer.
South Korea Information Technology Report Q4 2010 Page 1/5

2. Find Industry reports, Company profiles
ReportLinker and Market Statistics
Computer Sales
According to BMI projections, sales in South Korea's PC market will be worth around US$3.4bn in 2010,
with single-digit growth from 2009. Total PC revenues including notebooks and desktops are forecast to
rise to US$4.0bn in 2014 at a compound annual growth rate (CAGR) of 4%.
The main driver in 2010 will remain notebooks, with shipments driven by demand for slimmer, lighter
and more attractive models with multimedia and entertainment features as well as wireless connectivity.
3G wireless network expansion will also help to drive sales. Laptops already dominate the consumer PC
market, accounting for more than 60% of household PC sales in some quarters of 2009.
Software
Software spending is forecast at US$5.6bn in 2010 and is expected to be the fastest-growing segment of
IT spending. As the market focus moves from hardware to services and solutions, the share of the market
accounted for by software should rise, with enterprises seeking greater leverage from their investments.
However, software piracy in South Korea is above the global average and remains a problem.
The trend in the South Korean software market is towards specialised vertical-specific application
packages for industries such as auto, pharmaceuticals, financial services and healthcare. Vendors such as
Microsoft and Oracle are trying to keep ahead of smaller competitors by targeting key client groups with
industry-specific software.
IT Services
IT services sector is projected to account for about 40% of the domestic IT market in 2010 with spending
of US$6.3bn. CAGR for the segment is estimated at 7% over the 2010-2014 period. Sectors such as
government, telecoms, healthcare and banking should continue to supply demand for implementation,
consulting and managed services.
Outsourcing has become a significant factor and is estimated to account for up to 24% of IT services
spending. In recent times, traditional IT services providers have faced strong competition for a share of
the outsourcing market from internet data centres (IDCs). South Korea's IDC sector has been expanding
at a 20% rate thanks to aggressive investments in capacity.
In July, Microsoft announced that it was partnering LG Uplus to launch cloud computing services in
South Korea. The two companies said that they would first form teams to study technical and business
feasibilities. The partners hoped to help South Korean businesses improve productivity through delivery
of cost-effective, easy-to-use services and applications such as enterprise resource planning (ERP),
human resource (HR), customer relationship management (CRM) and other business solutions on
demand.
E-Readiness
South Korea has one of the most sophisticated mobile telephony markets in the world. Given the dramatic
increase in 3G subscriber numbers seen by KTF, SK Telecom and LG Telecom as well as increased
marketing for 3G services by KTF, BMI is expecting this healthy growth to continue.
There is some confusion as to what technologies South Korea's operators regard as 3G. All three
operators have had CDMA2000 1x networks since at least 2001, which the International
Telecommunication Union defines as third generation. However, KTF and SK Telecom did not regard
their networks as IMT-2000 until they upgraded to CDMA2000 1x EV-DO in 2002. Both SK Telecom
and KTF have now upgraded to W-CDMA-based HSDPA networks, launched in 2006, which are 3.5G.
LG Telecom has lagged behind on the technological front and only in April 2009 did it commercially
launch a CDMA2000 1x EV-DO Revision A network and start offering '3G' services.
Table of Content
Executive Summary . 5
South Korea Information Technology Report Q4 2010 Page 2/5

3. Find Industry reports, Company profiles
ReportLinker and Market Statistics
SWOT Analysis .... 8
South Korea IT Sector SWOT 8
South Korea Political SWOT . 9
South Korea Economic SWOT .. 10
South Korea Business Environment SWOT ... 11
IT Business Environment Ratings .. 12
Asia IT Business Environment Ratings .... 12
Table: Asia Pacific IT Business Environment Ratings . 12
Asia Regional IT Markets Overview 15
South Korea Market Overview ... 22
Government Authority 22
Background . 22
Hardware .... 23
Software . 24
Services .. 26
Industry Developments ... 28
Industry Forecast Scenario ... 31
Table: South Korea, IT Sector (US$mn Unless Otherwise Stated) .... 33
Internet .. 34
Table: South Korea Telecoms Sector - Internet - Historical Data & Forecasts .... 34
Macroeconomic Forecast .... 35
South Korea ' Economic Activity .. 36
Competitive Landscape ... 37
Hardware .... 37
Software . 38
IT Services .. 40
Broadband .. 43
Table: South Korean Broadband Market, June 2009 ... 44
Table: South Korea Broadband Access Types By Operator, June 2009. 45
IPTV . 45
WiBro 47
Wireline Developments ... 48
Table: Wireline (Fixed-Line And Broadband) Developments . 48
Company Profiles ... 49
Samsung . 49
BMI Methodology ... 51
How We Generate Our Industry Forecasts ... 51
IT Industry .. 51
IT Ratings ' Methodology .... 52
Table: IT Business Environment Indicators .. 53
Weighting .... 54
Table: Weighting Of Components .. 54
Sources .. 54
South Korea Information Technology Report Q4 2010 Page 3/5

4. Find Industry reports, Company profiles
ReportLinker and Market Statistics
Fax Order Form
To place an order via fax simply print this form, fill in the information below and fax the completed form to:
Europe, Middle East and Africa : + 33 4 37 37 15 56
Asia, Oceania and America : + 1 (805) 617 17 93
If you have any questions please visit http://www.reportlinker.com/notify/contact
Order Information
Please verify that the product information is correct and select the format(s) you require.
South Korea Information Technology Report Q4 2010
Product Formats
Please select the product formats and the quantity you require.
Digital Copy--USD 530.00 Quantity: _____
Contact Information
Please enter all the information below in BLOCK CAPITALS
Title: Mr Mrs Dr Miss Ms Prof
First Name: _____________________________ Last Name: __________________________________
Email Address: __________________________________________________________________________
Job Title: __________________________________________________________________________
Organization: __________________________________________________________________________
Address: __________________________________________________________________________
City: __________________________________________________________________________
Postal / Zip Code: __________________________________________________________________________
Country: __________________________________________________________________________
Phone Number: __________________________________________________________________________
Fax Number: __________________________________________________________________________
South Korea Information Technology Report Q4 2010 Page 4/5

5. Find Industry reports, Company profiles
ReportLinker and Market Statistics
Payment Information
Please indicate the payment method, you would like to use by selecting the appropriate box.
Payment by credit card Card Number: ______________________________________________
Expiry Date __________ / _________
CVV Number _____________________
Card Type (ex: Visa, Amex…) _________________________________
Payment by wire transfer Crédit Mutuel
RIB : 10278 07314 00020257701 89
BIC : CMCIFR2A
IBAN : FR76 1027 8073 1400 0202 5770 189
Payment by check UBIQUICK SAS
16 rue Grenette – 69002 LYON, FRANCE
Customer signature:
Please note that by ordering from Reportlinker you are agreeing to our Terms and Conditions at
http://www.reportlinker.com/index/terms
Please fax this form to:
Europe, Middle East and Africa : + 33 4 37 37 15 56
Asia, Oceania and America : + 1 (805) 617 17 93
South Korea Information Technology Report Q4 2010 Page 5/5