2018ICTIndustryOutlookofKoreaCopyrightⒸ2018KoreaInformationSocietyDevelopmentInstituteAllrightsreserved.Nopartofthisbookmaybereproducedortransmittedinanyformofbyanymeans,electronicormechanical,includingphotocopying,recording,orbyanyinformationstorageandretrievalsystem,withoutpermissioninwritingfromtheauthors.Allrequestsforpermissiontoreproduceortranslateallorpartofthisbookshouldbemadeto:18,Jeongtong-ro,Deoksan-myeon,Jincheon-gun,Chungcheongbuk-do,27872Rep.ofKOREAPhone:+82-43-531-4383Fax:+82-43-531-4099MessagefromthePresidentExternally,theglobaleconomyhasbeenshowingstrongersignsofrecoveryasthestablerecoveryofadvancedeconomiesandthegentlesoft-landingoftheChineseeconomyaredrivingupworldtradeandproductionaswellasdemandforinvestmentworldwide.ThishascontributedtotheimprovementoftheexportenvironmentforKorea,leadingtoincreasesininvestments,mostlyinthemanufacturingindustrythathastakenafavorableturninexports.Besidesthis,domesticdemandalsoenteredintoaslowrecoveryphasewiththeresolutionofpoliticaluncer-tainty,amidrisingexpectationsforpoliciestoboostdomesticdemand.Asaresultofimprovedexternalandinternalmacroeconomicconditions,thegrowthrateoftheKoreaneconomyreboundedin2017.TheKoreanICTsectoralsoreboundedsuccessfullyonthestrengthofanexportboominmajorICTgoods,includingsemiconductors,whichwasdrivenbyincreasingdemandforICTproducts.ThedemandarosefromtheglobaleconomicrecoverycoupledwiththeadventoftheFourthIndustrialRevolution.Despitetheseachievements,however,thelong-andmid-termoutlookontheKoreanICTsectorisnotallthatbright:Koreaisstillvulnerableintermsofcom-petitivenessorscaleinthefieldsthatshouldformthecoreoffuturegrowthintheICTsector,suchasartificialintelligence(AI),bigdata,andsoftware.Thestrategiesthathavemadeitpossi-bletocreatesuccessstoriesintheICTsectorarenowconsideredtohavestartedtoworkasstructurallimitations.Hence,inordertohelpdevelopICT-relatedgovernmentpoliciestoensurecontinuousgrowthintheICTsectorbasedonastructuralunderstandingoftheKoreanICTsec-torandtherecentenvironmentsurroundingtheICTsector,thisstudyaimstoprovidedataonthesectorincludingthecurrentstateandforecastsfortheKoreanICTsectoraswellasitscom-petitiveness.ThepurposeofthisstudyistoassesstheperformanceoftheKoreanICTsectorin2017andprovideprojectionsonproduction,exportsandsubscriptionsforeachICTindustryin2018,takingintoaccountvariousissuesraisedwithinthesector.ItalsointendstoanalyzetheglobalcompetitivenessoftheICTsectorbasedonmajorglobalcompetitivenessindexesandexaminenewgrowthbusinessesinordertodrawpolicyimplicationstobeconsideredinplanningfuturestrategiesfortheICTsector.ThisreportoutlinesthecurrentstateandissuesofKorea’sICTsectorinthreeparts.PartIdescribesthetrendsandoutlookfortheKoreanICTsectorinfivecategories:communicationsservices,broadcastingservices,informationservices,communicationsandbroadcastingequip-ment,andsoftware.PartIIprovidesinternationalcomparisonsofKoreaandothercountriesintheICTsectortofindoutwhereKorea’scompetitivenessliesandwhereimprovementsneedtobemade.Lastly,PartIIIlooksintotheFourthIndustrialRevolution,whichhasextensiveeconomicandsocialrippleeffects–arevolutionbroughtaboutbyICT-basedintelligentdigitaltechnologytransformation,whichisrepresentedbyAIandICBM(IoT,cloudcomputing,bigdata,mobile).The2018ICTIndustryOutlookofKoreaisthe17thofitskindpublishedannuallybytheKoreaInformationSocietyDevelopmentInstitute(KISDI).Inthisyear’sreport,wehaveendeavoredtoprovidemorecomprehensiveandbetter-structuredinformationontheKoreanICTsector.Wehopethatourreaderswillmakefulluseofthereportintheirdecision-makingprocessesongovernmentpolicyorcorporatestrategyorforotherpurposes.Wealsolookforwardtoyourhonestandcandidopinionsabouthowthisreportcanbeimproved.Thankyou.Kim,Dae-HeePresidentKoreaInformationSocietyDevelopmentInstitute5ContentsMESSAGEFROMTHEPRESIDENT····················································································3INTRODUCTION·······················································································································9PARTICURRENTSTATUSANDOUTLOOKFORKOREA’SICTSECTOR···············111.ICTSectorinGeneral·············································································································132.CurrentStateandOutlookbyIndustry···············································································17PARTIIINTERNATIONALCOMPARISONSOFCOMPETITIVENESSINTHEICTSECTOR······················································································································391.AchievementsandExportCompetitivenessoftheICTSector···········································432.InvestmentsinTechnologyDevelopmentandInnovationLevels·······································493.HumanResourcesEnvironment····························································································554.FinancialandEntrepreneurialEnvironment·······································································595.LevelsofICTInfrastructureandItsUtilization··························································