To Look for Breakthrough

MIC Minister Rho and IT CEOs discuss ways to revive slumbering IT industry

Information-Communication Minister Rho Jun-hyong and CEOs of key IT companies and related organizations agreed that the IT industry will sustain its role as a major contributor of exports, sharing some 32.2 percent as it had done in the past.
The minister invited the CEOs and heads of the related organization to a bull session held at Lotte Hotel on July 19 to talk about the second half performance of the key industry in the country as its H1 performance appeared somewhat slower than expected earlier in the year. They agreed that the industry will do better in the H2 and do its usual share in boosting exports as it was expected to do.
Present at the meeting included such notable CEOs as Nam Joong-soo, president of KT, President Kim Shin-bae of SK telecom, President Choi Ji-seong in charge of the Information Communication Sector of Samsung Electronics, Director Ahn Seung-kwon of the MC Business Headquarters of LG Electronics, Chairman Hwang Ki-soo of the IT SoC Association, President Yoon Seok-kyung of SK C&C,
representing the SW/DC industry, President Baik Jong-jin of Hangul and Computer Co., President Sok Jong-hoon of Daum Communication and others. Those from the IT related organizations included Chairman Suh Seung-mo of KOIVA, Sok Ik-ho of KISDI and Chairman Yoo Byung-chang of the SW Industry Association.
The participants generally concurred with the current performance of the IT industry in exports as somewhat down beat, but said it will pick up in the second half with mobile phones leading the overseas sales, affirming once again the industry is a major growth engine for the national economy.
During the meeting, KISDI projected that IT exports will grow 12.8 percent year-on-year, beating the first-half growth of 7.8 percent. The second-half projection is higher than the record set in the same period last year of 10 percent, showing that the exports of IT products has turned around and on the path of growth. The participants all agreed that the industry will recover its usual expansion pace and they are ready to boost facility investment and production. For instance, LG Electronics will produce 4.3 million mobile phones in the second half, up from 3.5 million in the first half, while Samsung Electronics is expected to turn out 150 million units in the second half, compared to 130 million produced in the first half.
With regard to facility investment in the mobile communication service, Minister Rho said enough investment went into the image communication sector in the 3rd generation communication equipment industry to set off a vibrancy in the sector's service. He asked for continuous investment in new services such as WiBro. KT said it will plow some 2.8 trillion won into the fiber cable subscriber network (FIFTH) and IPTV, among others, as targeted originally.
IT service firms such as SK C&C expects the demand for IT systems in the finance industry will rise with the enforcement of the Capital Market Consolidation Act in 2009.
The meeting also agreed to make joint efforts to push the exports of equipment-SW-service on a continuous basis.
In the meantime, KISDI said at the meeting that the world economy is projected to grow 4.9 percent this year due to high economic growths in Japan, Europe and developing countries, despite the slow down in the U.S. economy this year. The national economy, in the meantime, is projected to expand 4.6 percent a bit higher than initially projected helped by increases in exports, consumption and facility investment which will touch off a gradual improvement in the domestic economy.
The IT industry's output is to rise 5.5 percent this year reaching 261.8 trillion won with its H2 growth registering 6.4 percent, 3.6 percent higher than 3.6 percent rise for the H1. Its exports will expand 12.8 percent in the H2, higher than 7.8 percent for the H1. nw

MIC Minister Rho Jun-hyong holds a luncheon with CEOs of key IT companies July 19.

MIC Minister Rho, 4th L, is lined up with IT CEOs for a photo session at Lotte Hotel in downtown Seoul, where they met for discussion on ways to boost the industry.