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Korea’s IT Industry Heavily Depends On Hardware

By March 15, 2017 at 1:33 am
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Korea's information technology (IT) industry is said to be heavily dependent on hardware and it is not really focusing on software which made them lagged far behind the global trend.

According to the Institute for Information and Communications Technology Promotion, Korea just has 15 percent when it comes to its software business as compared to a 6 percentage point gain ten years back. While for hardware shares, they accounted for more than 50 percent that already included that of Samsung Electronics.

This report presented by the IICTP classified and categorized the IT industry into eight categories namely, IT services, IT hardware and communications equipment, semiconductors, software, the Internet, home appliances and the electronics parts as reported on Korea Times.

The same report also presented that China and the United States are no so much of dependent on the hardware business but on the software business. The ration between software and hardware industry in the United States was 62 percent which was 50-50 split ten years back. For China, its software proportion was 58 percent and its hardware was 42 percent.

Like Korea, another country was also dependent on hardware and that was Japan. The said country had a high dependence on hardware as its share was accounted for 69 percent the previous year.

Even if they are both hardware dependent, Japan still has the higher dependence on hardware compared to Korea. The reason was that Japan does not depend much on a few specific sectors except for the electronics parts.

Still, from the report presented, the global trend now is that industries are now shifting their focus on software from hardware which affected almost the top 100 IT firms. Among these top companies, the number of software companies significantly increased from 24 to 51 in 1990 and in 2015. Korea needs to adjust to this in order to fit in the global trend.

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