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The World’s First and Best IT Powerhouse Close

The World’s First and Best IT Powerhouse

Korea is a global leader in the ICT industry.
Korea was the first country in the world to commercialize CDMA in 1996, LTE-A in 2013, and 5G in 2019. The country is acknowledged as a global ICT leader based on its high level of ICT related technologies and penetration rate.

"ICT Adoption in 2020"

※ ICT adoption: Evaluated based on the status of high-speed internet and active adoption of new technologies
※ Source: WEF(World Economic Forum) Global Competitiveness Report 2020

"Global Standing of Korea’s Digital Industry"

ICT Infrastructure

ICT Infrastructure Country, Ranking
Country	Ranking
Korea	1st
UK	2nd
Denmark	3rd
Finland	5th
Singapore	6th
US	7th
UAE	13th
Japan	14th
France	18th
China	20th

※ WIPO, Global Innovation Index 2022

ICT Export

ICT Export Country, Exports
Country	Exports
China	701.6
Hong Kong	319.6
Taiwan	182.9
Korea	$148.1B
US	138.4
Singapore	125.9
Vietnam	109.1
Malaysia	81.2
Germany	71.6
Mexico	66.6

※ UNCTAD 2020

e-Commerce Ratio

e-Commerce Ratio Country, Ranking
Country	Ranking
UK	1st
Korea	2nd
China	3rd
Indonesia	4th
US	5th
Australia	6th
Canada	7th

※ WIPO, Global Innovation Index 2021

Cyber Security Index

Cyber Security Index Country, Ranking
Country	Ranking
US	1st
UK	2nd
Korea	3rd
Japan	7th
US	8th
Australia	9th
Canada	13th
Canada	22th
Canada	33th
Canada	34th

※ ITU 2020

Govt AI Readiness

Govt AI Readiness Country, Ranking
Country	Ranking
US	1st
Singapore	2nd
UK	3rd
Canada	7th
Germany	8th
Korea	10th
France	11th
Japan	12th
Norway	13th
Australia	14th

※ Oxford Insights 2021

Mobile Internet Connectivity

Mobile Internet Connectivity Country, Ranking, Connectivity
Country	Ranking	Connectivity
Korea	1st	99.98%
Finland	2nd	92.8%
Slovenia	3rd	92.3%
Spain	5th	83.9%
Switzerland	6th	77.7%
Estonia	7th	75.2%
US	8th	72.0%

※ OECD 2021

Major Industry Leading the National Economy Open

Major Industry Leading the National Economy

In 2022, the ICT industry accounted for 13.0% of Korea’s GDP and led the nation’s economic growth.

In 2022, total production of the ICT industry reached KRW 560 trillion, up 5.1% year-on-year. A close look at the industry shows that ICT devices accounted for 70.3% of the industry's total production, up 5.9% year-on-year to KRW 388.4 trillion, ICT services accounted for 15.8%, up 3.2% to KRW 87.4 trillion, and software accounted for 13.9%, up 5.4% year-on-year to KRW 76.9 trillion. Especially noteworthy is the software sector, which is expected to grow the fastest at an average annual rate of 7.0% during 2017-2023.

"ICT Industry Production (Sales) and Outlook"

CAGR(2017~2023) : 2.9% (Unit : KRE Tr)

ICT Industry Production (Sales) and Outlook Year, Softwares, ICT Services, ICT Device, Total, Growth Rate
Year	Softwares	ICT Services	ICT Device	Total	Growth Rate
2017(A)	72.6	84.7	368.4	525.7	9.70%
2018(A)	76.9	87.4	388.4	552.7	5.10%
2019(A)	81	89.9	389.5	560.4	1.40%
2020(A)	85.7	92.8	405.8	584.2	4.30%
2021(A)	89.9	95.2	413.2	598.4	2.40%
2022(A)	94.3	97.6	419.7	611.6	2.20%
2023(A)	98.6	99.9	428.6	627.3	2.50%

※ Bank of Korea's classification of GDP by economic activity in the Korea National Account and the scope of ICT industry: ICT manufacturing and equipment are classified as Electrical and Electronic Equipment Manufacturing Industry' and ICT service industry is classified as Information and Communication Industry (telecommunications, publishing, broadcasting, film, information services).
※ KISDI 2023

In 2022, ICT exports reached a record high of USD 233.32 billion, imports reached USD 152.47 billion, and the trade balance stood at USD 80.85 billion.

The ICT industry contributed to the nation's economic growth by accounting for 30-40% of total exports.

"ICT Exports and Growth Rate"

CAGR(2017~2023) : 2.9% (Unit : USD Bn)

ICT Exports and Growth Rate Year, ICT Device, Growth Rate
Year	ICT Device	Growth Rate
2016	163	-6.0%
2017	198	21.6%
2018	220	11.5%
2019	177	-19.7%
2020	184	3.7%
2021	228	24.0%
2022	233	2.5%

※ ICT exports as a percentage of all industries: (2020) 35.8% → (2021) 35.3% → (2022) 34.1%
※ ICT exports trend (USD billion) : (2019) 176.86 → (2020) 183.51 → (2021) 227.61 → (2022) 233.32
※ Source: Ministry of Science and ICT, 2023

ICT Service and Software

In 2021, the overall market size of the data industry reached KRW 23.9 trillion by posting a significant growth of 15.5% year-on-year. The number of public data disclosed through the Digital New Deal policy reached 69,057, up by 24.3% year-on-year. In addition, the number of subscribers to the world's first commercialized 5G service in 2019 reached 29.6 million as of March 2023 and grew by 136.8% from 2020, while OTT service subscription rate reached 69.5% in line with accelerating digitalization.

"Size of Data Market and Counts of Disclosed Public Data"

Data Market Size - 2020 : KRW 20.0024 trillion, 2021(e) : KRW 23.0972 trillion (15.5% 증가) / Public Data Disclosure - 2021.03: 55,561 counts, 2022.03: 69,057 counts (24.3% 증가)

"5G and OTT Service Subscription Rates"

5G subscribers - 2020:11.8 million, 2022:28 million (136.8% 증가) / OTT service subscription rate - 2020:56.3%, 2022:69.5% (3.2%p 증가)

※ Source: ITSTAT 2022

In 2021, AI sales reached KRW 2.1 trillion by continuing a steep growth rate of 28.5% year-on-year. The use of AI learning data, which is needed for AI technology development and service innovation, reached 183,000 counts in June 2022, up by more than 40% year-on-year. Meanwhile, the cloud industry, which is an integral part of the digital transformation process, generated KRW 4.2 trillion in revenue in 2020 to post a significant year-on-year growth rate of 19.4%, while the use rate of cloud services by individuals grew by 2.5% from 35.3% in 2020 to 37.8% in 2021.

"AI Sales and Use of AI Learning Data"

AI Sales - 2020:KRW 1.7177 trillion, 2021(e):KRW 2.2065 trillion (28.5%증가) / Use of AI Learning Data (cumulative) - 2021:130,901 counts, 2022.06:183,623 counts (40.3% 증가)

"Size of Korean Cloud Industry and Types of Services"

Cloud Industry Sales - 2019:KRW 3.3714 trillion, 2020:KRW 4.0263 trillion (19.4%증가) / Cloud Service Use Rate (by Individuals) - 2020:35.3%, 2021:37.8% (2.5%p 증가)

※ Source : ITSTAT 2022

The Korean software industry exported USD 18.05 billion in 2021 to record an annual average of 9.9%. The number of software specialists also grew at an annual average of 7.7% to 352,000 in 2021.

※ Source: Ministry of Science and ICT’s Software Exports Survey, 2022

Where Digital Transformation Accelerates Open

Where Digital Transformation Accelerates

The rapid spread of cloud services in Korea was triggered by the saturation of wired and wireless network service penetration, the universalization of 5G services and the introduction of e-um 5G services, and the expansion of telecommuting and OTT services that have triggered data demand during the pandemic. Demands for data security, the biggest challenge to the expansion of cloud services, are expected to continue increasing while stable networks and security are expected to further accelerate the demand for digital transformation in the Korean manufacturing industry.

"ICT Areas with High Demands for Digital Transformation and
							Major Players"

ICT Areas with High Demands for Digital Transformation and Major Players Area, Company name, Businesses
Area	Company name	Businesses
Cloud Computing	AWS	After the launch of the Seoul Region in 2022, AWS is operating one Region with four Availability Zones. AWS is a leader in IaaS.
	Microsoft	Has two Regions in Seoul and Busan as well as a data center. Provider of Iaas, PaaS and SaaS integrated services.
	LG CNS	AWS, MS, Google colocation services No-code platform and NFT service
	DOUZONE	Offering a convergent solution combining existing ERP with AI, block chain and other new software technologies Business expansion on medical big data by using cloud
	Hancomm	Service expansion to subscription service based on Hancom Office SaaS, SDK, API, etc.
	DeepNoid	Low-code platform Deep:Phi used for AI education Offering industrial and medical AI platforms and universal AI platforms
DT & SW convergence	Posco	Automating manufacturing by operating data-combined AI furnaces Expanded new business areas from AI and robotics to software
	Samsung Medical Center	Developing self-driving ships based on unmanned/remote digital solutions Developing a smart shipyard with new software technologies including AI and big data
	Hyundai Heavy Industries	Developing self-driving ships based on unmanned/remote digital solutions Developing a smart shipyard with new software technologies including AI and big data
Cybersecurity	Ahnlab	Developing and providing various security solutions including online and mobile security solutions, game security, industrial security and network security devices Service expansion to cloud security and operation technology security
	SK Shielders	Launched with the merger of SK Infosec (data security) and ADT Caps (physical security) in 2021 Korea’s no. 1 data security service provider (Global Top 5 ranked by global data security agency CTA) and no. 2 physical security service provider
	Igloo Security	70% market share in domestic security control solution and public sector security service Owns a patent on self-driving security control technology

Digital Technology Innovation and Diffusion Strategy Open
Digital Technology Innovation and Diffusion Strategy

According to the Digital Innovation and Diffusion Strategy announced in June 2022, the Korean government plans to invest heavily in six major innovative technology areas (i.e., AI, AI semiconductors, 5G-6G, quantum, metaverse, and cybersecurity) to explore and expand domestic and global markets. The government will support startups, technology transfer, growth, and overseas expansion in order to create the market in early stages and achieve excellent results. It will also strengthen support for Information Technology Research Centers (ITRCs) and specialized graduate schools to foster top-tier gap-leading advanced research specialists and experts needed in the field. The main objectives of the strategy include accumulating technology in the six major innovative technology fields, transferring innovative digital technology, creating more than 3,000 technology startups, and training 30,000 top-tier talents.

"Rising as a Global Leader of Digital Transformation"
Objectives - Within Five Years by 2027

Obtaining best technology in six innovative technology areas (over 90% of world's no. 1)

Transfer innovative digital technology, creating more than 3,000 technology startups (Currently around 500 startups/year)

Train 30,000 top-tier talents constituting a key asset of economic security
Technology development
Investment - Focus investment in six innovative technologies by considering limited resources

AI

Semiconductors

5G · 6G

Quantum

Metaverse

Cyber security

System for Planning and Management - Conversion to mission-oriented system for technology cumulation

Mission-oriented : AS-IS (Planning focused on research demands, Presenting detail technologies), TO-BE(Planning focused on market demands, Presenting challenges (missions))

Technology cumulation : AS-IS (One-time support regardless of performance (around 5 years)), TO-BE(Continued support for researchers with high performance (3 years + 3 years + 5 years))

Market Expansion - y into the global market by creating early markets, developing businesses and supporting growth

Creation of early markets - Promote global expansion by applying technologies first in the domestic market

Building and investing in private network

Applied in government/public agency systems and projects

Support demonstration projects based on private demands

Promotion of business development - Startup by researchers and technology transfer for joint development

Tech startup : Financial support provided to researchers that begin startups and develop businesses

Joint development : Support joint development of companies that wish to develop products with researchers with good performance record

Acceleration of business growth - Strengthen government support to boost growth of innovative companies in six major areas

Financial support

Digital infrastructure

Business incubation

Exploration of overseas market

Talent Training - Training of top-tier gap-leading talents and customized experts (ITRCs and specialized graduate schools to focus on six areas and provided with more support + ITRCs and specialized graduate schools to focus on six areas and provided with more support)
※ Source : Ministry of Science and ICT, Digital Innovation and Diffusion Strategy (June 28, 2022)
ICT Clusters Open
ICT Clusters
ICT Manufacturing

In Korea, ICT clusters are distributed per region. By sector, smartphone clusters are located in the Seoul Metropolitan Area and the Daegu/Gyeongbuk area, and network equipment clusters are located in the Seoul Metropolitan Area.

"ICT Clusters Across Korea"
“ ICT Clusters in Korea ”

Seoul(Guro, Tehran, Sangam, etc): Digital content, information and communication, SW southeast: Information convergence parts

Banwol/Sihwa: electrical and electronic

Gyeonggi (Hwaseong, Pyeongtaek, Paju, Giheung, Icheon, Pangyo, Suwon): Semiconductor, display, network equipment (Samsung Electronics, SK Hynix, LG Display)

Incheon: Bio, digital signage, robots (content)

Chungnam (Cheonan/Asan): Display (Samsung Display, Corning Precision Materials)

Jeonnam Gwangju: Mining (optical communication, optical information equipment), home appliances(LG Innotek, Kumho HT, OE Solution, Samsung Electronics, Winia Electronics, Carrier)

Jeju: EV, smart grid

Gangwon:Multimedia content industry (Chuncheon), medical electronics (Wonju)

Chungbuk: ICT semiconductors, secondary batteries, etc. (SK Hynix, Dongbu Hitech, LG Chemical, W-SCOPE)

Sejong: Sejong High-tech Industrial Complex (Sejong Techno Valley)

Daejeon: Daedeok Special R&D Zone, intelligent robots

Gyeongbuk: Mobile and smart devices (Gumi, Gyeongsan), electronic parts, displays (Samsung Electronics, LG Electronics, LG Display, LG Innotek)

Daegu (Seongseo): Mobile, IT Electric and Electronic

Ulsan: Automobile, shipbuilding, electricity/energy (Samsung SDI)

Busan: Knowledge-based service and infrastructure (cultural content), Cloud/IOT, marine ICT
※ Source: Korea Electronic Information and Communication Industry Promotion Association
SW Convergence Clusters

The Ministry of Science and ICT is supporting ten clusters across the country to strengthen the capability of the digital industry based on specialized industries in each region. It is also supporting regions to develop new digital industries and pursue digital transformation.

"ICT Clusters Across Korea"
Stage 2. Incheon Songdo - Bio Information Service

Characteristics : Create new services using lifelog-centered public/business data, Foster new service-based global companies

Clusters : Around Jemulpo (approx. 120 million m2), Around Songdo (approx. 53.35 million m2), No. of companies: 597 companies. No. of workers: 58,434

Stage 1. Chungnam Cheonan - Convergent Display

Characteristics : Strengthening regional specialized industries by building a full-cycle ecosystem connecting materials, parts, modules, finished products, and services

Clusters : Around Asan (Chungnam) and Cheonan (254 million m2), No. of companies: 1,009 companies. No. of workers: 19,201

Stage 1. Chungbuk Cheongju - Intelligent Semiconductors

Characteristics : Develop intelligent semiconductor-based SW convergence products and manufacturing innovation services, Strengthening competitiveness of companies by fostering semiconductor software specialists

Clusters : Around Cheongju, Jincheon and Eumseong (Chungbuk) (2.789 billion m2), No. of companies: 557 companies. No. of workers: 37,221

Stage 2. Jeonbuk Jeonju - Smart Agriculture and Bio

Characteristics :Develop a data-based service platform based on smart farming + DNA, Supporting the creation of new services based on agricultural SW convergence by promoting business development based on business service platforms

Clusters : Four zones including Jeonju High-Tech Multi-Purpose Industrial Complex Zone (43,490 m2), Four zones including Iksan Food Cluster Complex (171,190 m2), No. of companies: 577 companies. No. of workers: 7,228

Stage 1. Daegu & Jeju - Smart City

Characteristics : Build smart cities based on city data and grow the SW convergence service industry based on core SW technologies such as AI, cloud, big data, and IOT.

Clusters : Daegu Suseong Alpha City (116,958 m2), Jeju Science Park (910,000 m2), No. of companies: 305 companies. No. of workers: 7,472

Stage 1. Gangwon Chuncheon - Tour Tech

Characteristics : Create an intelligent tourism ecosystem and cluster based on ICT convergence

Clusters : 854 Baksa-ro, Chuncheon, Gangwon Province (66,000 m2), No. of companies: 52 companies. No. of workers: 77

Stage 2. Gyeongbuk Pohang - Mobility

Characteristics : Build a DNA-based mobility service commercialization platform, Create a convergence ecosystem linking mobility-focused regional industries

Clusters : Gyeongsangbuk-do (Pohang, Gyeongsan, Gumi, Gyeongju, Yeongcheon, Gimcheon, Chilgok) (24.448 billion m2), No. of companies: 1,185 companies. No. of workers: 26,500

Stage 1. Nam-gu, Ulsan - Eco-friendly Autonomous Ships

Characteristics : Create a global ecosystem for eco-friendly/autonomous ships , Build a cluster that will serve as a hub for leading future markets of eco-friendly/autonomous ships

Clusters : Ulsan Techno General Industrial Complex (1.29 million m2), No. of companies: 907 companies. No. of workers: 6,406

Stage 2. Busan Centum - Smart Logistics

Characteristics : Build a city leading logistics services by fostering the smart logistics industry, Create a virtuous cycle for smart logistics industry and build a biz platform

Clusters : Centum City General Industrial Complex (1.178 million m2), Seokdae High-tech Industrial Complex (123,000 m2), No. of companies: 2,312 companies. No. of workers: 17,974

Stage 1. Gyeongnam Changwon - Knowledge-based Machinery Equipment Industry

Characteristics : Support businesses, technologies and industries. Build a knowledge-friendly SW convergence cluster, Support mechanical equipment SW convergence services and commercialization

Clusters : Gyeongnam Technopark IT Promotion Division (33,058 m2), Changwon National Industrial Complex (25,729 m2), Masan Free Trade Zone (957,093 m2), No. of companies: 3,080 companies. No. of workers: 128,488

Invest KOREA

ICT PM

Kang Hyeong Kon New Industry Promotion Team

T.+82-2-3460-7866 E.hkkang0@kotra.or.kr

Recommendation on Locations

BEST1

[Gwangju Metropolitan City Gwangsan-gu, Jeollanam-do Hampyeong County]

Bit-Green Industrial Complex

Designated area(m2) : 4,070,692
Management : Korea Industrial Complex Corporation
Nearby Railway : Hampyeong Station (30km)
Nearby Airport : Gwangju Airport (20km)

BEST2

[Jeollabuk-do Gunsan City]

Saemangeum District National Industrial Complex

Designated area(m2) : 18,495,346
Management : Saemangeum Development Agency
Nearby Railway : Gunsan Station (28km)
Nearby Airport : Gunsan Airport (15km)

BEST3

[Ulsan Metropolitan City Nam-gu]

Ulsan Techno General Industrial Complex(Ulsan Free Economic Zone)

Designated area(m2) : 1,286,977
Management : Ulsan Metropolitan City
Nearby Railway : Taehwagang Station (9km)
Nearby Airport : Ulsan Airport (15km)

BEST4

[Gyeongsangnam-do Miryang City]

Chunhwa Agricultural Industrial Complex

Designated area(m2) : 211,785
Management : Gyeongsangnam-do Miryang City
Nearby Railway : Sangdong Station (14km)
Nearby Airport : Gimhae International Airport (56km)

BEST5

[Incheon Metropolitan City Namdong-gu]

Namdong National Industrial Complex (Renewable Business District)

Designated area(m2) : 9,504,046
Management : Korea Industrial Complex Corporation
Nearby Railway : Bupyeong Station (9km)
Nearby Airport : Incheon Airport (32km)

BEST6

[Daejeon Metropolitan City Dong-gu]

Haso Eco-friendly General Industrial Complex

Designated area(m2) : 306,703
Management : Daejeon Metropolitan City
Nearby Railway : Daejeon Station (17km)
Nearby Airport : Cheongju International Airport (71km)

KOTRA site

Information and Communication Technologies