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The World’s First and Best IT Powerhouse Close

The World’s First and Best IT Powerhouse

Korea is a global leader in the ICT industry.
Korea was the first country in the world to commercialize CDMA in 1996, LTE-A in 2013, and 5G in 2019.
Korea is evaluated as a global ICT leader based on its high level of ICT related technologies and penetration rate.

※ Source: WEF (The World Economic Forum) The Global Competitiveness Report 2020
※ Source: 2021 Work Plans, Ministry of Science, ICT and Future Planning

Smartphone and network equipment manufacturers, in particular have risen to prominence in the global market. Korea’s mobile communication services are leading global innovation.
Korean smartphone makers are promoting 5G and foldable phones, gaining premium leadership, and at the same time, strengthening the mid to low-end smartphone lineup, maintaining the no. 1 position in terms of global smartphone sales.

※ Share of Samsung Electronics’ foldable smartphones (Counterpoint, % (10,000 units)) : (‘20)73(204) → (‘21e)88(792) → (’23e)75(2,100)

"Market Share Trend of the Top 5 Companies in the Global Smartphone Market"

(Unit : %)

Market Share Trend of the Top 5 Companies in the Global Smartphone Market Rank, 2015, 2016, 2017, 2018, 2019
Rank	2016		2017		2018		2019		2020
1st	SAMSUNG	22.5%	SAMSUNG	20.5%	SAMSUNG	20.9%	SAMSUNG	19.2%	SAMSUNG	18.8%
2nd	APPLE	15.9%	APPLE	14.4%	APPLE	14.0%	HUAWEI	15.6%	APPLE	14.8%
3rd	HUAWEI	7.3%	HUAWEI	8.9%	HUAWEI	9.8%	APPLE	12.6%	HUAWEI	13.5%
4th	OPPO	5.1%	OPPO	5.7%	XIAOMI	7.3%	XIAOMI	8.2%	XIAOMI	10.8%
5th	vivo	4.6%	vivo	4.8%	OPPO	6.5%	OPPO	7.7%	OPPO	8.3%

※ Source: Gartner (Sales)

Major Industry Leading the National Economy Open

Major Industry Leading the National Economy

As of 2020, the ICT industry accounted for 11.4% (USD 177.5 billion) of the total GDP, driving the growth of the Korean economy. Mobile phones, in particular, are one of Korea’s top 15 export items, accounting for 2.2% of total exports in 2020. The commercialization of 5G service is continuously boosting the sales of the telecommunication service industry.

※ Mobile phone exports (USD 100 million) : (‘17)190 → (’18)146 → (‘19)120 → (’20)112
※ Telecommunication service sales performance (KRW trillion) : (‘17)38.0 → (’18)37.3 → (‘19)36.5 → (’20)37.1

(Unit : KRW billion)

ICT Industry Production (Sales) Rank, Years
Rank	2016	2017	2018	2019	2020
ICT Total	4,310,446	4,716,630	5,017,265	4,628,612	4,793,643
Equipment	3,090,158	3,427,552	3,679,382	3,227,288	3,320,840
Service	726,886	748,828	766,745	781,574	808,327
SW	493,402	540,251	571,139	619,750	664,477

※ Source: Ministry of Science and Technology Information and Communication, ICT Major Items Survey
※ Korean Statistical Information Service (KOSIS) [Go to KOSIS]

Go to e-Country Indicator

Strengthening 5G Business of Global Companies in Korea Open
Strengthening 5G Business of Global Companies in Korea

Global ICT companies that have entered Korea are expanding their 5G related businesses.

Ericsson, a Swedish company that has led the telecommunication market since 2G by investing in Korea, is currently increasing investment in 5G R&D jointly with a Korean operator. Finland's Nokia is supporting overseas network quality and performance improvement based on its various experiences in Korea. Nokia provides virtualization and solutions for next-generation network infrastructure, such as 5G.

(As of December 2020)
Ericsson LG (joint venture of Ericsson and LG Electronics)

Investor : Ericsson

Country : Sweden

Location : Seoul

Items : Wired/Wireless exchange equipment, transmission equipment, communication system

Number of employees : 668 (As of December 2019)

Sales

’17year : 2.4 KRW billion

’18year : 2.0 KRW billion

‘19year : 4.5 KRW billion
Nokia Solution Networks Korea

Investor : Nokia

Country : Finland

Location : Seoul

Items : Telecommunication equipment, system

Number of employees : 274(As of December 2019)

Sales

’17year : 1.7 KRW billion

’18year : 1.1 KRW billion

’19year : 4.9 KRW billion
Furthermore, numerous global companies are investing in 5G, AI, cloud, e-commerce, O2O, games, and video. In line with the era of great digital transformation, investment in e-commerce and online platforms is expected to continue the growth.

※ Foreign direct investment in digital new deal (Ministry of Trade, Industry and Energy, Investment Promotion Division, USD 100 million): (H1 2020) 14.5 → (H1 2021) 33.3 (+129.3%)
※ Foreign direct investment in ICT (Ministry of Trade, Industry and Energy, Investment Promotion Division, USD 100 million): (H1 2020) 10.2 → (H1 2021) 31.7(+210.8%)

5G+ Strategies and Digital New Deal Open

5G+ Strategies and Digital New Deal

In April 2019, the Korean government announced the 5G+ Strategy for the early commercialization of 5G and to foster new 5G-based industries. Its aim is to focus investing in 10 key 5G-based industries and five key services, and to promote new 5G+ based industries, and ultimately to occupy 15% of the global market by 2026. The government and public sector will preemptively adopt 5G and build a cooperative structure between the public and private sectors.

"10 Key 5G+ Based Industries and Five Key Services"

※ Source: Ministry of Science and ICT, 5G+ Strategy for Realizing Innovative Growth

In July 2020, the Korean government announced the Korean version of the New Deal and its investment plan to focus on D.N.A. which stands for data, network, and AI. Its goal is to accelerate the use and convergence of data, 5G, and AI across all industries by building a nationwide 5G network and promoting AI convergence projects. Prompt digital transformation, such as the expansion of virtual transactions and education, in the past year contributed to overcoming the COVID-19 crisis and demonstrating a solid recovery trend.

In July 2021, the Korean government revised and announced the New Deal 2.0 Strategy in order to preemptively respond to the rapidly changing environment. The government aims to spread digital convergence and the achievements of New Deal 1.0 throughout the economy and society as well as to foster hyper-connected new industries, such as metaverse, cloud, and blockchain.

※ Digital New Deal financial investment in 2022: (New Deal 1.0) KRW 8.6 trillion → (New Deal 2.0) KRW 8.7 trillion or more
※ Digital New Deal cumulative financial investment by 2025: (New Deal 1.0) KRW 44.8 trillion → (New Deal 2.0) KRW 49 trillion

"Digital New Deal 1.0 and New Deal 2.0"

Digital New Deal 1.0 and New Deal 2.0 New Deal 1.0 (current) “Economic-based digital transformation promotion”, New Deal 2.0 (revised) “Digital convergence expansion”
Digital New Deal
New Deal 1.0 (current) “Economic-based digital transformation promotion”	Strengthening the D.N.A. ecosystem Data·5G·AI convergence and utilization Promote digitalization of industries	Digital transformation of education infrastructure Smart schools, online-offline convergence learning	Fostering virtual industries Virtual medical care, care service infrastructure, support online business of small businesses		SOC digitalization Digitalize transportation and disaster management, smart industrial complexes, cities, and logistics system
New Deal 2.0 (revised) “Digital convergence expansion”	Strengthening the D.N.A. ecosystem Expand my data industry (revision of the Personal Information Act) and support the use of pseudonymous information Enact three acts on digital economy transformation Establish a joint R&D global cooperation system for 6G	Advancement of virtual (integration) Early construction of high-performance WiFi for elementary, middle, and high schools Operate Dr. Answer Clinic and promote intelligent emergency medical service Qualitative advancement of smart stores using smart technologies (IoT, AI, etc.)		Fostering hyper-connected industries, like metaverse Build an open metaverse platform and support the production of a variety of metaverse content Demonstrate 5G/AI-based robot/service convergence to solve social problems Promote multi-ministerial large-scale blockchain technology convergence and connection projects Discover intelligent IoT service and spread and expand application	SOC Digitization Expand smart city data hub

※ Source: Korean New Deal 2.0

Telecommunication Equipment Manufacturing Development in Metropolitan Area, Daegu/Gyeongbuk Area Open
Telecommunication Equipment Manufacturing Development in Metropolitan Area, Daegu/Gyeongbuk Area

In Korea, ICT clusters are distributed per region. By sector, smartphone clusters are located in the metropolitan area and Daegu/Gyeongbuk area, network equipment clusters in the metropolitan area, and 5G network infrastructure in the metropolitan area and spread throughout the nation.
“ ICT Clusters in Korea ”
- Seoul(Guro, Tehran, Sangam, etc): Digital content, ICT, SW: Information convergence parts
- Banwol/Sihwa: electrical and electronic
- Gyeonggi (Hwaseong, Pyeongtaek, Paju, Giheung, Icheon, Pangyo, Suwon): Semiconductor, display, network equipment (Samsung Electronics, SK Hynix, LG Display)
- Incheon: Bio, digital signage, robots (content)
- Chungnam (Cheonan/Asan): Display (Samsung Display, Corning Precision Materials)
- Jeonnam Gwangju: Mining (optical communication, optical information equipment), home appliances(LG Innotek, Kumho HT, OE Solution, Samsung Electronics, Winia Electronics, Carrier)
- Jeju: EV, smart grid
- Gangwon:Multimedia content industry (Chuncheon), medical electronics (Wonju)
- Chungbuk: ICT semiconductors, secondary batteries, etc. (SK Hynix, Dongbu Hitech, LG Chemical, W-SCOPE)
- Sejong: Sejong High-tech Industrial Complex (Sejong Techno Valley)
- Daejeon: Daedeok Special R&D Zone, intelligent robots
- Gyeongbuk: Mobile and smart devices (Gumi, Gyeongsan), electronic parts, displays (Samsung Electronics, LG Electronics, LG Display, LG Innotek)
- Daegu (Seongseo): Mobile, IT Electric and Electronic
- Ulsan: Automobile, shipbuilding, electricity/energy (Samsung SDI)
- Busan: Knowledge-based service and infrastructure (cultural content), Cloud/IOT, marine ICT
※ Source:　Korea Electronic Information and Communication Industry Promotion Association

Invest KOREA

ICT PM

Kang Hyeong Kon New Industry Promotion Team

T.+82-2-3460-7866 E.hkkang0@kotra.or.kr

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Nearby Airport : Gwangju Airport (20km)

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Nearby Airport : Gunsan Airport (15km)

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Nearby Airport : Ulsan Airport (15km)

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[Daejeon Metropolitan City Dong-gu]

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Nearby Railway : Daejeon Station (17km)
Nearby Airport : Cheongju International Airport (71km)

Invest KOREA

KOTRA site

Information and Communication Technologies

"ICT Penetration(ICT Adaption, 2020)"

"Digital Competitiveness Index"