Hefty Investment in IT Sector
MIC to invest 963.4 billion won in R&D for info and communication technology

The Ministry of Information and Communication announced recently that it will invest a total of 963.4 billion won this year in the area of information and communication research and development, which is up 10.1 percent from last year.
Of the funds to be invested, 707.6 billion won will go to the technology development, personnel training 114.5 billion won, research infrastructure 107.8 billion won and 33.5 billion won in standardization.
The ministry plans to publicly collect research subjects under '2006 Information-Communication Research and Development Plan'and select research organizations and the research subjects by March.
The ministry is to place its focus on the development of IT-SoC industry, including IT parts, R&D on material, and others, which was announced under its 'Policies to Strengthen Competitive Edge of IT Parts and Material Industry.'The plan is targeted at reducing imports of core IT parts and materials, which are caused by the deficiency of technologies and raise the price competitiveness of those products and foster them as a high value-added industry. The IT industry has been faced with difficulties due to the shortages in technology levels, although the industry has been able to meet 55 percent (90 trillion won) of total production, and 45 percent of exports (32 trillion won). The sectors that have been facing the toughest times include IC controlling smart electricity, LPD modules for hand phones, LCD for high pressure electricity, and core parts for hand phones.
In the case of the IT-SoC industry, imports of IT parts and material accounted for 63 percent of total needs, but most of its firms are weak in terms of finance and technology with most foundries engaged in consigned production. MIC plans to strengthen the IT parts and material industry by helping start-ups in the IT-SoC industry, providing support to them in terms of designing, and production, testing and inspection, in addition to marketing-to help them grow in all aspects of their operations. MIC also plans to secure a design module for semiconductor chips to make it accessible for all medium and small firms in the industry.
The Electronic Technology Research Institute (ETRI) will set up the IT fusion parts research institute to facilitate the development of core IT parts fusion technology and the technology to make leading parts. At the same time, the ministry will help develop core technologies for leading parts not yet competitive enough and continue to push technology research on new IT growth engine products and material to enhance the country's IT technology research capacity.
The ministry also aims to produce some 1,000 masters and doctorate degree holders in the IT area and 5,000 experts by 2010.
MIC's key strategy is to create import substitute of foreign IT parts amounting to around 1.5 trillion won by reducing the reliance on foreign IT parts and expand the country's IT part exports to new markets around the world including China and lead the global market for those products.
In the meantime, MIC has adopted the "Broadband IT Korea Vision 2007"designed to deliver innovative administrative services using the world's best open e-government, enhancing the international competitiveness of Korean companies through industry-wide integration of information technology, realizing a digital welfare society where everyone can play a leading role through the deployment of BcN and the promotion of new IT growth engine sectors, and leading the global information society by strengthening international cooperation.
MIC expects that the strategy will revolutionize administrative management, delivery of civil services, and information resources management with a goal of building the world's best open e-government. This will be in accordance with the e-government roadmap.
The Computer Emergency Response Team Coordination Center (CERTCC) was set up to create a safe and credible cyber space by protecting networks from increasingly sophisticated cyber attacks. To prepare for an integrated fixed and wireless environment, the government will build an e-signature certification system that allows users to use a single certificate for e-signature, and enhance Korea's competitiveness in encryption technology through the development of a standard encryption algorithm. nw

MIC Minister Rho Jun-hyong.