In order to increase Korea’s information technology industry, the government announced that it will invest 1.2 trillion won ($1.04 billion) in the sector next year according to the Ministry of Knowledge Economy.



This increase in the 2011 budget represents a 11.4 percent increase from 2010. The government’s efforts will focus on research and development in IT convergence, light-emitting diodes, three-dimensional devices and new mobile communication applications.



In order to boost the overall national economy, officials stated that, “It is crucial for the country to become a leader, not a follower, in the field of IT.” The ministry noted that Korea will be able to build its reputation as a strong IT country despite competition from Apple’s popular iPhone devices.



Some of Korea’s major electronics firms released smart phones and tablet computers and strategically do well in the global market through marketing and good quality and brand recognition. Smart phone exports during the first 11 months of this year amounted to $5.6 billion, a 166.5 percent jump from the previous year.


The ministry has set a production target of 5 percent growth next year and a 10 percent rise in exports. The global IT sector is expected to expand by 3.5 percent next year. The government did say however that there is room for improvement. One of the main complaints about Korea’s IT industry is that it lacks convergence and competency in the component and equipment sectors and is too focused on hardware instead of software.”