South Korea is shaping up to be a lucrative business and investment market for Australian information technology companies.
That's the message Peter Linford, Senior Trade Commissioner at Austrade, delivered at a recent seminar in Melbourne to promote investment and trade in Korea.
Mr Linford believes the new era of Korean political co-operation has been accompanied by astounding economic growth. A few weeks ago the Prime Ministers of North and South conducted an historic meeting to end the Cold War political hangover between them, and more negotiations are planned in the near future.
Fast-growing e-conomy
Austrade estimates Korea's economic growth to be more than 8 percent per
annum for the next five years.
"The comeback of the Korean market from the Asian crisis a few years ago is incredible", said Mr Linford. "Figures suggest it is the fastest growing economy in Asia".
He believes the country's IT sector looks particularly promising, so promising in fact that Cisco System's CEO John Chambers is said to rate it third in the world below the United States and United Kingdom.
"Software production growth in Korea is estimated to be at 32 percent per annum for the next 10 years, and the IT service sector is forecasted to grow 25 percent until 2010", said Mr Linford.
"Internet usage is very high. There are about 46 million people in Korea, and about 15.6 million of them are currently Internet users. This figure is expected to rise to 20 million by December 2000", said Mr Linford.
"As well as this, Korea has the second largest number of domain numbers after the US, and the majority of these are commercial dotcoms", he said.
The Korean Government says it is committed to continuing these trends.
Government to invest in IT
The Korean Ambassador to Australia, His Excellency Mr Shin Hyo-Hon, says a
multi-billion dollar investment by the Korean Government in IT will be
implemented over the next ten years to lay the foundation for what he called
"a culture of innovation."
"Since the meeting between North and South, business opportunities have increased. The economic reform process has brought about rapid recovery in the Korean economy, fueled by information technology", said Mr Shin.
He also stressed that Korea is the perfect entry point into the massive Chinese market.
The unprecedented level of political co-operation between North and South Korea has also facilitated a new relationship with Australia.
"The relationship between the two Governments is very good. A free trade agreement may take a little bit of time, but a statement of intention [by the two countries] in itself is an indication of the level of commitment", said Mr Linford.
"The Korean Government recognises that strategic alliances are essential", he said.
Net radio's example
Savvy Australian IT companies such as online radio network DigitalOne are
hearing the message.
DigitalOne just signed a content agreement with Korean ISP Thrunet to supply music entertainment services for Thrunet's Internet radio broadcasting, and for the development of a Korean Internet radio station.
Founder and Chairman of DigitalOne, Chris Murphy, who was rock band INXS' manager and founded MMA Music Publishing, says there are exciting opportunities in Korea's new economy for Australian IT companies.
"I took time out to try and find out what the future was going to be rather than just diving in. And it was the most important thing I've ever done", Mr Murphy said.
But Mr Murphy also recommends making moves right now to develop IT investment and growth potential in Korea.
The window of opportunity there is getting smaller and smaller as more and more businesses realise its potential, he said.
