Information Technology Reference
In-Depth Information
such as WiBro, Digital Multimedia Broadcasting,
Home Network Service, Telematics Service, and
Internet Telephony (VoIP). These services, avail-
able over a converged network, were intended to
ensure Internet access at any time in any place
(Ministry of Information, 2004).
In terms of competition, both DSL and Cable
have been unbundled (de-monopolized and made
competitive). This has had the result the making
of Korea into one of the most truly competitive
nations in terms of the levels of domestic ICT
competition. In turn, this high level of competition
has made for comparatively low costs and high
rates of subscription by Korean consumers. Indeed,
Korea is the world's leading nation in household
broadband penetration, with 94.5 percent of
households having access in 2008 (OECD, 2009)
and has the lowest costs for broadband access in
the OECD (Mathiason, 2008).
The importance of foreign direct investment in
the Korean economy can be seen in the table below.
With policy reforms to allow increased foreign
participation in the Korean economy, including
the purchase of troubled corporations, the value
of FDI between 1997 and 2000 quadrupled and its
share increased from 2% of business financing to
13%. In 1998, FDI was equal to some 14.8% of
Total Gross Domestic Investment in the Korean
economy. Although there has been some fluctua-
tion in investment levels over recent years, 2004
data show a strong resurgence in foreign interest
in Korea's economy.
In addition to the MIC's overall policy plans,
the Korean government has launched a number
of specific broadband-related initiatives, many of
them with an eye to bridging the digital divide.
Among these has been the Public Fund Program,
wherein the government provided low-interest
loans to providers to ease the financial burden of
bringing access networks to small and medium
sized cities.
An additional initiative the government has
taken to close the digital divide was to provide
3,000 free internet access points in public places,
such as post offices and community centers. The
government has also provided PCs and Internet
infrastructure to schools. Further, within the
context of its “Plan for Promoting ICT Use and
Distributing PCs to Children of Low Income
Families,” the government provides discounted
ICT access and a PC to those who otherwise could
not afford it (ITU, 2003).
Further, the government has launched IT
literacy programs, targeted at social groups that
traditionally would not have access to computers
or the Internet, such as housewives, the elderly,
and prisoners. More than eight million people were
trained between 2000 and 2002. The government
has also started offering high school education
programs that are broadcast over the Internet,
increasing the demand for PCs and Internet con-
nectivity in family homes (ITU, 2003).
Beyond government initiatives, Korean culture
has played a large role in determining ICT adop-
tion. Some cultural characteristics prevalent in
Korea include a high valuation placed on family
relationships, social advancement, (as well as
on social status in general,) and on learning and
education (Davies, 2006).
These cultural values promote hard work and
personal development, and education is seen as
a key means for achieving economic and social
success. Another cultural characteristic at play is
the “copycat syndrome” or “keeping up with the
Joneses” scenario. If one household subscribes
to broadband Internet service, other households
in the neighborhood will subscribe to an equal or
superior service in order to maintain their social
standing (Davies, 2006). Both of these social
characteristics have promoted the adoption of
ICT within the Korean society.
One downside of the cultural propensity for
ICT uptake has been the widespread addiction
to gaming. Most see this addiction spreading in
reaction to the high level of societal pressure to
excel in one's performance: gaming offers an at-
tractive—and addictive—form of escape.
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