Korea to invest 1.24 trillion won in key IT areas

The government said Wednesday it would invest 1.24 trillion won (about $1.1 billion) into the research and development of 10 key information technology areas over the next five years.

The key areas are core technologies for next-generation smart devices; key IT materials; big data and artificial intelligence; hybrid storage; total networks for fixed-line and wireless services; terahertz and quantum information technology; software platforms for unmanned systems; biosensors; life-care robots and power semiconductors.

The Ministry of Knowledge Economy targets 49.8 trillion won in sales and $19.7 billion in exports from the 10 sectors by 2020.

A panel of IT policy advisers endorsed the investment plans announced by the ministry’s R&D strategic planning team in a meeting Wednesday.

Hwang Chang-gyu, chief of the R&D strategic planning team and former chief executive of Samsung Electronics Co., stressed that R&D for IT should be bolstered for convergence with all other industries.

With a vision to realize a “smartopia,” the ministry set three policy goals for IT R&D: raising the competitiveness of major IT industry areas, software and material industries, plus fostering new growth engines for the future.

The strategies to achieve them include securing core technologies for next-generation smart gadgets and key IT materials, platform development for software and computing based on artificial intelligence, convergence of IT and other industries, and convergence and advancement of telecommunication and broadcasting networks.

“Korea’s IT sector posted record exports for two years in a row, helping the country’s trade top $1 trillion last year,” Knowledge Economy Minister Hong Suk-woo said.

“Convergence devices such as smart phones and tablet PCs drove up exports. In order to maintain competitiveness, we need strategies to prepare for rapid changes in the IT business environment.”

Last year’s IT exports amounted to $156.6 billion. Exports of smartphones and tablet PCs jumped 51.6 percent to $11.8 billion, and 205 percent to $2 billion, respectively. System semiconductor exports also surged 24 percent to $20 billion.

The growth of the global IT market is expected to slow this year amid persistent economic uncertainties.

The International Monetary Fund projects this year’s global economic growth at 3.3 percent this year, down from 3.8 percent last year.

Gartner, Inc., an IT research and advisory firm in the U.S., forecast that worldwide IT market growth would slow down from 6.9 percent last year to 3.7 percent this year.