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South Korea Accelerating Software Exports in 2011
With many local companies actively making inroads into the global information technology (IT) service sector,
the South Korean industrial circle expect exports of US $10.7 billion worth of software in 2011. According to the
official data released by the Ministry of Knowledge Economy, this year’s exports will jump by 17.1 percent on-year
as software companies become more competitive on the international market by offering reliable programs that
meet overseas requirements.
Large domestic conglomerates including Samsung SDS are seeking to sell their IT service software in overseas
markets, changing the conventional business strategy that focuses on the domestic market.
The official reportedly said that if all goes according to plan, outbound shipments of IT service software could
soar 36 percent to $1.4 billion, with sales of so-called package and embedded software products posting solid gains
this year after expanding steadily in the past, adding that South Korea’s software market will grow 8.4 percent
from 2010 to reach 41.4 trillion won ($37.1 billion), surpassing the average growth prospects of the global software
sector.
The nation according to the released official data will spend more than 214 billion won this year to encourage
software-related research and development, infrastructure building and training of experts, thus breaking the past
investment volumes that are only amounted to 280 billion won from 2003 through 2010. The hot areas attracting
support from the government include next-generation mobile software and programs that can improve energy
efficiency and national defense, human-computer interaction, quality improvement and product certification, etc.
South Korea’s exports of IT-related products increased by 4.8 percent in February from a year earlier on the
back of steady global demand for semiconductors, mobile phones and TVs.
The nation exported US$11.18 billion worth of IT products abroad in February, despite a drop in the number of
workdays due to the three-day-long Lunar New Year holiday during the month, and economic uncertainties
triggered by unrest in some North African countries. February’s increase marked the 17th month in a row that
exports of locally made IT products grew compared to the year before.
By sector, exports of semiconductors increased 9.7 percent on-year to $3.67 billion in February, with outbound
shipments of mobile phones rising 5.7 percent to $ 1.98 billion. The gain in mobile phone shipments was mainly
due to the 351.6 percent surge in smartphone exports posted by such companies as Samsung.
Overseas shipments of TVs rose 16.1 percent on-year as South Korean companies continued to dominate the
global flat-screen, LCD and plasma display panel TV markets.
By region, exports to China, including Hong Kong, gained 6 percent to $4.95 billion, with gains for Japan and
ASEAN increasing 22.5 percent and 6.2 percent, respectively.
Outbound shipments to Latin America, the Middle East and Africa all rose compared to the year before,
although exports to the United States, the world's largest consumer market and the European Union fell 4.4 percent
to $1.26 billion and 8.8 percent on-year to $1.25 billion, respectively.
An impressive fact is that imports of IT products rose 12.8 percent on-year to $5.85 billion in February, with the
nation’s trade surplus hitting $5.33 billion during the month.
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