South Korea to Invest 2 Trillion Won in IT Projects to Boost Economy

Strategic Insights -

The South Korean government plans to inject 2 trillion won (approximately US$1.8 billion) into five information-technology (IT) projects as part of its efforts to revitalize the economy. The massive investment will be used to upgrade the national disaster management system, promote automobile information services, and support various other initiatives, including a nationwide database network project and digital multimedia broadcasting for mobile phones. These projects aim to create new job opportunities and stimulate economic growth. The move comes as South Korea's economy faces challenges due to declining export growth, a consumer credit bubble collapse, and mounting household debts.

Key Takeaways:

  • The South Korean government will invest 2 trillion won (approximately US$1.8 billion) in five IT projects to boost the economy.
  • The projects include upgrading the national disaster management system, promoting automobile information services, and supporting various other initiatives.
  • The IT projects are expected to create 20,000 new jobs and a 800 billion won economic windfall by 2007.
  • The telematics business is forecast to create 70,000 new jobs by 2009.
  • The government's investment will be used to upgrade the national disaster management system, stimulate economic growth, and promote job creation.
  • The Ministry of Commerce, Industry and Energy will spend an additional 7.2 trillion won in four ongoing government projects.
  • The South Korean government's economic stimulus package for the IT industry will support the nationwide database network project, the program to supply personal computers to low-income families and remote area schools, and digital multimedia broadcasting for mobile phones.

Statistics:

  • 2 trillion won (approximately US$1.8 billion) - total investment in five IT projects.
  • 20,000 - number of new jobs expected to be created by 2007.
  • 800 billion won - economic windfall by 2007.
  • 70,000 - number of new jobs expected to be created in the telematics business by 2009.
  • 7.2 trillion won - additional investment in four ongoing government projects by the Ministry of Commerce, Industry and Energy.
  • 5% - target for economic growth by the South Korean government.

Sources:

  • Yonhap
  • Asia Pulse
  • Ministry of Information and Communication
  • Ministry of Commerce, Industry and Energy