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Title The Korean communications industry Overview
Date 2009-03-28 Read 2611
The Korean communications industry was analyzed to have a value of approximately KRW 268 trillion as of 2007 after an annual growth average of 6.5% (2002-007). Of this figure, the broadcasting and communications service market comprised 20.4% of the total, at a value of KRW 54 trillion; the broadcasting and communications device market comprised 71.1%, at a value of KRW 190 trillion; and the software and computer-related service market comprised 8.5%, at a value of KRW 23 trillion.
An observation of each market reveals that the broadcasting and communications service market has achieved only a small average annual growth of 0.9% (2002-007). However, as the convergence businesses that are beginning to be newly introduced to the market are also thought to be entering a phase of popularization, the broadcasting and communications service market is expected to experience a full-scale growth in the coming future. The wired/wireless backbone communications service market comprised the largest proportion of the broadcasting and communications service market, at 63.1%, with a market value of KRW 34 trillion in 2007. The broadcasting service market, the second largest, was analyzed to comprise 17.3% of the entire market, at a value of KRW 9.4 trillion, but was shown to be in need of new impetus for growth, as its average annual growth rate was only 0.5%. On the other hand, the value-added communications service market, comprising network connection/management and content provision services, was analyzed have led the overall broadcasting and communications service market's growth, with a high average annual growth of 17.9% despite still having a somewhat small market scale.
The domestic production value of the broadcasting and communications device market in 2007 was approximately KRW 190 trillion, with an annual average growth rate of 8.8% (2002-007). Categorically, the components industry, which manufactures semiconductors, display panels, etc., was shown to lead the overall market (CAGR: 15.1%), while the communications device market has also shown a high growth rate of 10%. Of the communications device market, the wireless communications device market, which manufactures mobile phones, etc., has been shown as having achieved a particularly high rate growth.

On the other hand, the domestic production value of the information device market, which produces computers and peripheral devices, has been analyzed to have decreased.
The software and computer-related service market was analyzed to have a domestic production value of approximately KRW 22.8 trillion in 2007, with an annual average growth of 4.6% (2002-007). Of this figure, computer-related services, which include consulting and system maintenance/repair, were shown to have led the market growth, with an annual average growth rate of 8.8%.
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