South Korea is a world leader in the production of IT hardware, and the software & services industry is developing rapidly and has exposure to key growth areas. The spending outlook is relatively strong for a developed market, particularly for software & services where a high-value enterprise mix, a broad ecosystem of ICT vendors and a conducive policy environment will be important drivers. The hardware outlook is more mixed due to the maturity of the PC market and potential for retail spending cannibalisation by mobile devices, but our positive forecast for premium household income growth offsets some of this drag. We forecast total IT spending will increase at a CAGR of 5.1% over 2016-2020.
Latest Updates & Industry Developments - Computer Hardware Sales: KRW11.4trn in 2016 to KRW13.2trn in 2020, a compound annual growth rate (CAGR) of 3.8%. There is pent-up demand after contraction over 2013-2015 and premium income gains are another positive, but there is downside from potential PC sales cannibalisation by smartphones. - Software Sales: KRW6.4trn in 2016 to KRW8.1trn in 2020, a CAGR of 6.0%. Key verticals such as financial services and the government are expected to increase spending, particularly on advanced solutions. - IT Services Sales: KRW8.8trn in 2016 to KRW11.1trn in 2020, a CAGR of 6.2%. Government and private sector initiatives, along with high quality network infrastructure, mean South Korea is positioned well for cloud computing and Internet of Things growth.
Table Of Contents
South Korea Information Technology Report Q3 2016 BMI Industry View ... 7 SWOT 9 IT SWOT .. 9 Industry Forecast .. 11 Latest Updates ... 11 Structural Trends ... 11 Table: Enterprise Trends - GVA By Vertical (South Korea 2015-2020) . 15 Table: IT Industry - Historical Data And Forecasts (South Korea 2013-2020) 17 Industry Risk Reward Index . 18 Table: Asia Pacific IT Risk/Reward Index, Q3 2016 . 21 Market Overview ... 22 Hardware . 22 Software ... 28 Cloud Computing ... 32 IT Services 36 Industry Trends And Developments 42 IT Hardware Trade 42 Table: Developed APAC IT Hardware Trade 42 Table: South Korea IT Hardware Trade, 2010-2015 . 43 IT Industry Analysis 44 Table: IT Hardware Industry Performance, 2009-2014 46 Table: Software and Services Industry Performance, 2009-2014 48 Regulatory Development .. 49 Table: Regulatory Authorities 49 Competitive Landscape 55 E-Commerce . 55 IT Vendors 56 Table: Hewlett-Packard (HP) 56 Table: AhnLab 57 Table: Infraware Inc 58 Table: Penta Security Systems 59 Table: SK Hynix . 60 Table: TmaxSoft . 61 Regional Overview 62 Demographic Forecast . 67 Demographic Outlook .. 67 Table: Population Headline Indicators (South Korea 1990-2025) . 68 Table: Key Population Ratios (South Korea 1990-2025) 68 Table: Urban/Rural Population and Life Expectancy (South Korea 1990-2025) 69 Table: Population By Age Group (South Korea 1990-2025) . 69 Table: Population By Age Group % (South Korea 1990-2025) 70 Methodology .. 72 Industry Forecast Methodology 72 Sources 74 Risk/Reward Index Methodology ... 74 Table: IT Risk/Reward Index Indicators 75 Table: Weighting Of Components 76