South Korea Information Technology Report Q1 2015
Headline Expenditure Predictions
Key Trends And Developments
- Computer Hardware Sales: KRW13.2trn in 2014 to KRW13.4trn in 2015; growth of +1.5% in local currency terms. Diminished first-time buyer opportunities across the desktop, notebook and tablet markets mean hardware spending growth will underperform software and services.
- Software Sales: KRW5.7trn in 2014 to KRW6.1trn in 2015, growth of 8.1% in local currency terms. The cyber-security software market is poised for strong growth due to tensions with North Korea, with local firms expected to benefit.
- IT Services Sales: KRW8.6trn in 2014 to KRW9.3trn in 2015, growth of 8.6% in local currency terms. South Korea's leading position in emerging technologies, such as cloud computing, big data analytics and the Internet of Things will drive IT services growth outperformance in 2015 and over the medium term.
The rapid growth of the cloud computing market is expected to be the headline development in the South Korean IT market in 2015. Local enterprises have been relatively slow to adopt cloud services such as software and infrastructure-as-a-Service in South Korea compared to rivals in Western Europe, and especially the US. However, as education levels increase and more global vendors invest in the market, we expect the strength of local...
The South Korea Information Technology Report features Business Monitor International (BMI)'s market assessment and independent forecasts covering personal computers and software; semi-conductors, memory chips, integrated circuits and general components; the internet and IT solutions. It analyses analyses regulatory changes (licensing, customs and intellectual property protection) and competitive landscapes comparing IT companies by products, sales, market share, investments, projects and expansion strategies.
BMI's South Korea Information Technology Report provides industry professionals and strategists, corporate analysts, IT associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on the IT industry in South Korea.
- Benchmark BMI's independent IT Industry forecasts for South Korea to test other views - a key input for successful budgetary and strategic business planning in the Korean IT market.
- Target business opportunities and risks in South Korea's IT sector through our reviews of latest industry trends, regulatory changes, and major deals, projects and investments in South Korea.
- Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. KPIs and latest activity).
BMI Industry View
Summary of BMIs key industry forecasts, views and trend analysis covering IT, regulatory changes, major investments and projects and significant national and multinational company developments.
Industry SWOT Analysis
Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the IT sector and within the broader telecommunications, political, economic and business environment.
BMI Industry Forecast
Historic data series (2010-2013) and forecasts to end-2019 for all key industry and economic indicators, supported by explicit assumptions, plus analysis of key downside risks to the main forecast, including:
Information Technology Risk Reward Index
- IT Sector: Industry value (USDmn); IT sector contribution to GDP (%); value of hardware, software and services industry (USDmn); PC, peripherals and software imports and exports (USDmn); PC, peripherals and software sales (USDmn); number of PCs (000); PCs per 100 inhabitants; internet users (000); internet users per 100 inhabitants; broadband subscribers (000); broadband subscribers per 100 inhabitants.
- Economy: Economic growth (%); nominal GDP (USDbn); unemployment (%); interest rates (%); exchange rate (against USD).
BMIs Risk Reward Indices provide technology manufacturers, service providers, and IT vendors/leasing agents looking for opportunities in the region with a clear country-comparative assessment of a markets risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and demographic data points to provide indices of highest to lowest appeal to investors, with each position explained.
Country Market Overview
Structure, size and value of the industry sectors including hardware, software and services; overview of the industry landscape and key players; assessment of the business operating environment and the latest regulatory developments and government authority.
BMI Macroeconomic Forecast
BMI forecasts for all headline macroeconomic indicators to end-2019 including real GDP growth, inflation, fiscal balance, trade balance, current account and external debt.
Full analysis of the competitive landscape within the hardware, software and services sectors.
Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMIs industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.
Cross-border analysis of country markets in the region, commenting on IT penetration (PC and internet) and market growth drivers (IT market size and IT market compound growth).
The information Technology Reports draw on an extensive network of primary sources, such as multilateral organisations, government departments, industry associations, chambers and company reports.
*Company profiles are not available for every country. Those reports instead contain information on the current activities of prominent companies operating in the market.
We downgraded our outlook for IT spending growth in South Korea in the Q1 2015 update to reflect a weakening of the economic outlook, but we still expect it to outperform the majority of developed markets 2015-2018with robust growth rates, particularly in comparison to EU markets . The South Korean IT market is forecast to grow at a CAGR of 5 . 5 % 2015 -2018 to reach a value of KRW 34 trn in 2018. One reason for a relatively bullish outlook is the relatively underdeveloped software and services segment in South Korea, which give s great potential for growth when considered in the context of government efforts to promote emerging technologies.
BMI Industry View
Table: IT Industry - Historical Data And Forecasts (South Korea 2011-2018)
Developed Markets, Investment Spending To Support Growth
Outlook Not All Rosy
Table: Economic Activity (South Korea 2009-2018)
Industry Risk Reward Ratings
Table: APAC IT Risk/Reward Ratings - Q4 2014
Industry Trends And Developments
Table: Regulatory Authorities
Table: Major Cyber Attacks And Information Leaks
Table: Hewlett Packard
Table: SK Hynix
Table: Penta Security Systems
Table: Infraware Inc
Table: Sales By Division (KRWmn)
Table: Operating Margin By Division (%)
Asia Pacific Overview
Table: South Korea's Population By Age Group, 1990-2020 ('000)
Table: South Korea's Population By Age Group, 1990-2020 (% of total)
Table: South Korea's Key Population Ratios, 1990-2020
Table: South Korea's Rural And Urban Population, 1990-2020
Industry Forecast Methodology
Risk/Reward Ratings Methodology
Table: It Risk/Reward Ratings Indicators
Table: Weighting Of Components
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