Information Technology and Economic Development April 27, 1999 Hwang, Euihwan Director, Technology S

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Information Technology and Economic
DevelopmentApril 27, 1999Hwang,
Eui-hwanDirector, Technology Standards
DivisionMinistry of Information
CommunicationRepublic of Korea
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?. Preface 1. Three Changes in World Economy
o Liberalization of Trade - Abolition of
various kinds of tariff and non-tariff
barriers in the international trades (WTO
system) o Microeconomic Globalization -
Globalization of business activities and
positive deployment of cross-border
investments o Macroeconomic Globalization
- Reinforcement of mutual correlation and inter
dependency in economic activities among
countries
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2. Significance of Information Technology in
Changes of World Economy
Change in Priority of Production Factors Labor
and Capital ?Information Technology(IT)
o Microeconomic Globalization - Global
mechanism of companies in production and
marketing through computer and communication o
Macroeconomic Globalization - Imperative
relation with global diffusion of
information
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?. Relationship between Information Technology
and Economy
Information Technology and Paradigm Shift of
Economy
Agricultural Society
Knowledge and Information-based Society
Industrial Society
Labor
Farmer
Knowledge Worker
White Collar Worker
Energy
Intermediate Resource
Informatization
Industrialization
Knowledge
Rate of Transformation from Information to
Knowledge
Rate of Yields
Value -Added Rate
Main Resources
Land
Information
Energy
Product
Farm Product
Knowledge
Product
Product Site
Research Institute, University
Factory
Farm
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1. Information Technology and Macroeconomic
Changes ? Changes in Production Structure o
Growth of the Knowledge and Information-Based
Services (Production of Service
Industry/GDP) - USA 49 (1959) ? 62
(1994) - Korea 50 (1995) ? 67 (1998)
o Relation between Information Technology and
Service Industry - Existing Service Industry
(banking, distribution industry)
Enhancing efficiency and expanding business area
through information technology -
New Service Industry (information processing
service including software)
Creating high-tech industry from information
technology
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? Changes in Investment Structure o Changes in
Investment Pattern with Information Technology
- Investment in facilities for high production
capability ? Investment in information
communications for high productivity
and rapid decision o Increase of Investment in
Information Communications (Investment in
Information Communications/Total Investment)
- USA 9.6 (1960) ? 17.5 (1993) -
Korea 15.5 (1990) ? 21.4 (1995)
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? Changes in Employment System o Change in
Employment Structure - Reduction of
employment in manufacturing industry -
Enlargement of employment in knowledge and
information- intensive service industry
o Change in Occupational Categories -
Decrease in employment for farming, fishing and
manual labor - Increase in demand for experts
with creativity and information
technology o Change in Working Types -
Increase in telecommuting works and SOHO
business - The number of telecommuting
workers in USA 4 millions (1990) ? 11
millions (1997)
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The Growth Rate of Employment by Country and by
Occupational Categories ()
Reference Colecchia A. and G.
Papaconstantinou, "The Evolution of Skills in
OECD Countries and the Role of Technology," STI
Working Papers, 1996. 8 Labor
Statistics Yearbook of 1998, Ministry of Labor,
Republic of Korea
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2. Information Technology and Microeconomic
Changes Changes in Business Activities Based on
Information Technology
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?. Influence of Information Technology on Koreas
Economy
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?. Koreas Policy to Promote the Growth of
Information Technology, Information
Infrastructure and Information Industry - Cyber
Korea 21 -
A Creative Knowledge and Information-Based Society
Boosting New Business through Information
Technology and Infrastructure
Growth of National Productivity through
Information Technology and Infrastructure
o Government Achievement of Electronic
Government o Enterprise Establishment of
Management on Knowledge and Information
o Promotion of New Internet-Based Business o
Promotion of RD for Information Technology
Reinforcement of Information Infrastructure for
a Creative Knowledge Information-based Society
o Hardware Basis Upgrading Telecommunication
Networks o Software Basis Information
Education and Legal/Institutional Reforms
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1. Strengthening Information Infrastructure for a
Creative Knowledge and Information-Based
Society ? Upgrading Telecommunication
Networks o Reinforcement of Basic Network
Internet Service 100 times (150Mbps 2Gbps)
as fast as Current Service - Establishment of
high-speed communication network over 144
call zones - Digitalization of local
exchange networks o Reinforcement of Subscriber
Network High Speed Services (1.5 2Mbps) at
Low Cost - Utilization of fiber-optic cables,
ADSL, CATV, ISDN, WLL and satellite
communication
Strengthening Information Infrastructure,
Enabling Anyone to Access High-speed
Communication Services Anywhere and Anytime
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? Information Education and Legal/Institutional
Reforms o Information Education -
Special education programs on computer for 10
million students, 900 thousand civil
servants and 600 thousand military
servicemen o Legal and Institutional Reforms
for a Knowledge Information-Based
Society - Intellectual asset evaluation
system, Computer Program Protection Law,
Electronic Signature Law
Strengthening Information Infrastructure,
Enabling Anyone to Access High-speed
Communication Services Anywhere and Anytime
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2. Increasing the National Productivity by
Utilizing Information Technology and
Infrastructure ? Digitalization of
Administrative Work Efficient and Transparent
Electronic Government o Digitalization of
Administrative Work - Paperless Office and
Electronic Document Interchange o Electronic
Civil Service - Database of information on
residence, real estate and automobiles
- Civil Service KIOSK (transportation terminals,
subway stations and post offices)
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? Enhancing Corporate Productivity by Using
Information Technology o Information System
for Manufacturing Industries - Promotion of
corporate informatization through EDI of
government procurement activities -
Introduction of CALS in eight major industries
including automobile and electronics o
Information System for Service Industry,
Agriculture and SOC - Joint utilization of
customers credit information in financial
sector - Internet shopping malls for the
agricultural and fishing products -
Integrated Logistics Information System and
National Geographical Information System
(NGIS)
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3. Promoting New Businesses by Utilizing
Information Technology and Infrastructure ?
Promotion of Internet Industries Providing
Contents and Creating New Jobs o Promotion of
Internet Industries including IP and ISP -
Vitalization of electronic market places on
information super highway o Promotion of
Software and Multimedia Contents Industries
- Establishment of Seoul Soft Town
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? Promoting RD and International Cooperation in
Information Technology o Expansion of
Investment in RD of Core Information
Technology - CDMA, IMT-2000, ATM switches,
ASIC, Satellite Equipment, ADSL o
Introduction of Advanced Information
Communications Services - Digital Television
Broadcasting Service (2001)