‘IT Industry to Serve as a Driving Force
behind Our Economy for Next Decade’

Information & Communication Policy Dir.-Gen. Yoo makes the prediction during a forum

Yoo Pil-gae, director general of Information & Communication Policy Office at the Ministry of Information and Communication (MIC) forecast that production of the domestic IT industry is projected to be worth 261.8 trillion won during 2007, up 5.5 percent from last year.
Director General Yoo made the projection while speaking about the current status of the IT industry and policy direction during an information and communication forum organized by Korea Association of Information & Telecommunication (KAIT) at Seoul Marriott Hotel on July 25.
Director General Yoo said the domestic IT industry is expected to grow at a higher rate during the second half than the first half.
Taking a look into external conditions that brighten prospects for the domestic IT industry, Yoo cited that the global economy is forecast to post a stead growth of the latter half of a range of 4 percent, and despite financial uncertainties, stock prices on global markets showed signs of rising.
Externally and internally, demand is likely to pick up speed at a faster pace than expected earlier. The domestic economy is predicted to register a 4.6 percent growth this year over the previous year.
Director General Yoo predicted that in the service sector, mobile communication, broadband and broadcasting services are projected to grow in the second half of this year thanks to the WCEMA sector which is projected to boost during the second half. "In particular, semiconductor and display prices are expected to be stabilized to take the lead in growth,"he said.
The demand for replacing mobile handsets, primarily mid-sized ones, is predicted to pick up slowly, while the software industry is forecast to expand due to an expected rise in orders by large-sized IT consulting companies following the Cabinet approval of the Capital Consolidation Act, he said.
He said Korea's IT export industry is expected to grow at a higher rate in the second half than the first half.
Director General Yoo predicted that the IT exports are projected to surge 10.5 percent to $125.1 billion during the whole of the year, while the second half growth is likely to be higher the 7.8 percent increase recorded during the first half of this year. In particular, a steady demand in memory chips and display panels is expected to take the lead in IT export growth.
Mobile handset exports are expected to change into a growth mode with a growth rate projected to hover around about 4 percent during the whole of the year, departing from a -2.3 percent growth during 2006, he said. nw

Yoo Pil-gae, director general of Information & Communication Policy Office at the Ministry of Information and Communication (left photo), speaks during an information and communication forum organized by the Korea Association of Information & Telecommunication (KAIT) in Seoul on July 25.