Sign in Subscribe
Computer industry

Asia's IT Sector Booms in 1998

Strategic Insights

— 1 min read

In 1998, Asia's technology sector saw significant growth, with various developments in the construction, airline, and electronics industries. South Korea's construction industry introduced online public biddings for construction projects, while Pakistan International Airlines (PIA) signed a 15-year IT deal with the US-based SABRE Group. Meanwhile, Matsushita Electric Industrial Co. received a license for CD-ROM drive circuit technology from an US company, and Hewlett-Packard's Korean affiliate agreed to provide a $45 million loan to Dacom Corp. for an information system.

Key Takeaways:

  • South Korea's construction industry plans to introduce online public biddings for construction projects starting next year, with Kumho Construction set to be the first to attempt to use the Internet in its biddings.
  • PIA signed a 15-year IT deal with the SABRE Group, which includes outsourcing all IT functions to the US-based company.
  • The deal between PIA and SABRE Group follows a three-year consulting agreement signed between the two companies in March 1998.
  • Matsushita Electric Industrial Co. received a license for technology for CD-ROM drive integrated circuits from Oak Technology Inc. of the US and plans to apply it to commercial ICs by the end of 1999.
  • The license for CD-ROM drive circuit technology is expected to shorten IC design and development, allowing Matsushita Electric to supply CD-ROM drive manufacturers with specialized ICs at low prices.
  • Hewlett-Packard's Korean affiliate agreed to provide a $45 million loan to Dacom Corp. for a new information system, with the loan interest rate lower than the going rate.
  • The loan is a five-year loan, with the exact interest rate not disclosed.

Statistics:

  • 15-year duration of IT deal between PIA and SABRE Group
  • $75 million total value of consulting agreement signed between PIA and SABRE Group in March 1998 (including the 15-year deal)
  • $45 million value of loan provided by Hewlett-Packard's Korean affiliate to Dacom Corp. for information system
  • By the end of 1999, Matsushita Electric plans to apply CD-ROM drive circuit technology to commercial ICs

Sources:

  • Asia Pulse (http://www.asiapulse.com)
  • COMTEX (http://www.comtexnews.com)

Read more