Wednesday, October 27, 2010

IT Development !

IT Development !

Ever wondered why South Korea chose to develop itself in IT?
South Koreans businesses discovered that they could successfully compete abroad. Diversification in production and trade proved generally successful in the 1970s and therefore, the goverment made a bold move to expand South Korea's heavy chemical industries, investing in steel, machinery, gadgets and electronics.
Do you know that the government in South Korea worked together with the Chaebols?
Chaebols cooperation is essential to subsequent economic growth and also to help turn economy away from consumer goods and light industry towards heavy, chemical, and import substitution industry. The government also provides blue prints for industrial expansion. President Park Chung Hee used Chaebols as a mean for economic growth and also depended on exports that reversed Syngman Rhee’s policy of reliance on imports. Chaebols are able to grow due to two factors; foreign loans and special favors. Government would select companies to undertake projects and channel funds from foreign loans and even guarantee repayment, should a company be unable to repay foreign creditors. This is successful due to expansion of Korea export which resulted in diversity of goods which also brought about major growths in electronics and high technology industries.
For your information, many companies benefited through the IT development. For example, Samsung group earned an annual revenue of US$173.4 billion in 2008 which includes products such as Electronics, LCD, mobile phone, and semi-conductor. LG group earned US$102 billon involving products such as electronics insurance, chemicals, and telecom trades.


Do you think Korea IT is impressive? No? The actual fact is that, IT IS !!! Samsung and LG are ranked second and third largest mobile phone companies in the world in the first quarter of 2010. 90% of Koreans also own mobile phones whereby they use them to watch Digital Multimedia Broadcasting (DMB) or view websites. Three major wireless communications providers are SK telecom, KT, and LG telecom. They provide coverage in all major cities and other areas. Korea also develope online games that are popular worldwide which make them wealthier.
Response questions

1. Do you think these Chaebols would have been so successful without the help of the government?

2. Which product was first recognized by the world produced by Samsung? What inspired Samsung to create that product?

Group Name : Nobody
Done by : Tricia (Leader), Steffi, Geraldine, Thaddeus, Amzar, Brandon :D


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