Computer Software in South Korea

A Hot Tip about IT and Telecommunications in South Korea

Posted on: 4 Jan 2010


Korea’s global leadership in wireless communications and broadband Internet access services has spawned tremendous demand for all types of software, especially for specialized and innovative technologies, providing opportunities for sales of advanced and highly specialized U.S. software solutions. Despite the current economic downturn, the overall software market is expected to maintain steady annual growth of 5 percent attributed to continued market demand in new IT services, Software as a Service (SaaS) as well as packaged software.


There is a new trend in the software services market, driven by Software as a Service (SaaS) and Web 2.0, offering more flexible and interactive online services, through which software developers/users can conveniently purchase and customize the software to their needs at lower costs. The software distribution market is also transitioning from traditional PC bundling and packaged/licensed purchases to web-based distribution services. The new software service and distribution models are expected to influence software market growth over the next several years.


U.S.-source packaged software accounts for more than 80 percent of Korea’s software import market, and U.S. suppliers are expected to remain the principal suppliers of packaged software to Korea for the next several years. Technological advancements in Korea’s software sector are still behind that of the U.S. and Japan, a result of Korea’s relatively recent computerization and an acute shortage of highly qualified software engineers. Korea’s systems integration companies and software developers are actively trying to develop partnerships with global leaders in every segment of IT services and solutions to deliver total solutions to clients in a time-to-market manner and to target the domestic and global market at the same time. U.S. suppliers will continue to enjoy the competitive advantages of strong project management and marketing skills, compared to Korean firms and third-country suppliers.


The overall market demand for packaged software has been growing in relation to the development of Korea’s advanced IT infrastructure and related services in the ecommerce and telecom segments and will continue to grow at an average annual rate of 7 percent for the next five years. The fact that the Korean government has increased efforts to strengthen its IPR protection and enforcement through the Computer Program Protection Law (CPPL) has also contributed to the strong growth in demand for both Korean and imported packaged software.


Best Prospects/Services

  • IT services/Software as a Service (SaaS) in telecom and public sectors
  • Internet protocol TV solutions/storage technology
  • Enterprise resource management and integration projects



The market demand for IT services, SaaS, digital content, and security software are forecast to experience stable growth, driven by strong enterprise demands from efficient resource management policies through business intelligence solutions and integrated services.


Companies should also expect continued investment in Ultra Broadband convergence Network (UBcN) which is expected to launch by 2013, as well as growing demand from Internet Protocol TV (IPTV) and Voice over Internet Protocol (VOIP) services.




Read the full market research report

Posted: 04 January 2010

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