[Title Page]
Message from the President / Dowhan Kim
Contents
Introduction 10
PART I. Current Status and Outlook for Korea's ICT Sector 12
1. ICT Sector in General 14
2. Current State and Outlook by Industry 18
2.1. Communications Services 18
2.2. Broadcasting Services 23
2.3. Fixed-Mobile Content 30
2.4. ICT Equipment 31
2.5. Software 42
PART II. International Comparisons of Competitiveness in the ICT Sector 44
1. Export Competitiveness of the ICT Sector 48
2. Investments in Technology Development and Innovation Levels 52
3. Human Resources Environment 56
4. Financial and Entrepreneurial Environment 60
5. Levels of ICT Infrastructure and Its Utilization 64
6. Industry-Friendly Policies and ICT Legislation 68
PART III. Trends in Domestic and Foreign Virtual Reality Industries 74
1. Concept of Virtual Reality and Background of Its Emergence 76
1.1. Concept 76
1.2. Background for the Emergence of Virtual Reality 77
2. Current State of the VR Market 80
2.1. Subscribers and Market Sizes Worldwide 80
2.2. Domestic Market Size 81
2.3. Current State of VR Investments 82
3. Virtual Reality Ecosystem 84
3.1. Devices 84
3.2. Networks 85
3.3. Platforms 86
3.4. Content 88
4. An Analysis of Major ICT Companies' VR Strategies 90
4.1. Facebook 90
4.2. Google 91
4.3. Sony 92
4.4. Samsung Electronics 92
Conclusion 94
References 96
Table 1-1. Production in the ICT Sector 15
Table 1-2. Export and Import Forecasts for ICT Equipment 16
Table 1-3. Long-and Mid-Term Revenues for Communications Services 18
Table 1-4. Broadcasting Service Revenue Forecasts 23
Table 1-5. Cumulative Subscribers for Satellite Broadcasting Services 26
Table 1-6. Long-and Mid-Term Revenue forecasts for the Fixed-Mobile Content Market 30
Table 1-7. Communications Equipment Production and Exports 31
Table 1-8. Mobile Handset Production and Exports (including Components) 33
Table 1-9. Broadcasting Equipment Production and Exports 34
Table 1-10. Digital TV Production and Exports 35
Table 1-11. Information Equipment Production and Exports 37
Table 1-12. Electronic Component Production and Exports 38
Table 1-13. Semiconductor Production and Exports 39
Table 1-14. Display Panel Production, Exports and Imports 40
Table 1-15. Software Production and Exports 42
Table 2-1. Number of SCI Papers in 2014: High-Ranking Countries 54
Table 2-2. SCI Citation Counts per Paper 54
Table 2-3. Korea's Rankings on the ICT Development Index, 2014-2016 64
Table 2-4. Korea's Rankings on the UN E-Government Development Index 69
Table 3-1. Comparisons of Premium HMD Products 84
Table 3-2. Affordable HMD Products 85
Table 3-3. Facebook's Strategy for Virtual Reality Ecosystem 90
Table 3-4. Google's Strategy for Virtual Reality Ecosystem 91
Table 3-5. Sony's Strategy for Virtual Reality Ecosystem 92
Table 3-6. Samsung's Strategy for Virtual Reality Ecosystem 93
Figure 1-1. Trends of Subscriptions for Fixed Telephony Services 19
Figure 1-2. Subscriptions and Penetration Rates for Broadband Network Services 20
Figure 1-3. Subscriptions and Penetration Rates for Broadband Network Services by Technology 21
Figure 1-4. Trends of Subscriptions for Mobile Phone Services 22
Figure 1-5. Traffic Trends in the Mobile Communications Service industry 22
Figure 1-6. Terrestrial Broadcasting Advertising Revenues and Their Shares of Total Revenues 25
Figure 1-7. Cable Broadcasting Service Subscribers 26
Figure 1-8. Average Annual Household Ratings for Terrestrial and Pay Channels 27
Figure 1-9. Trends of Percent Revenue Breakdowns for Program Providers 28
Figure 1-10. IPTV Subscribers 29
Figure 1-11. Market Shares by IPTV Service Providers 29
Figure 1-12. Percent Revenue Breakdowns for Fixed-Mobile Content Services (2016) 31
Figure 2-1. Total ICT Goods, 2013 and 2014 48
Figure 2-2. ICT Goods Exports (Percentage of Total Goods Exports), 2013 and 2014 49
Figure 2-3. ICT Service Exports 50
Figure 2-4. ICT Service Exports (Percentage of Total Service Exports), 2013 and 2014 50
Figure 2-5. R&D Expenditure in Information Industries, 2013 52
Figure 2-6. ICT-Related Technologies, 2010-13 53
Figure 2-7. Technological Cooperation between Companies, 2016 55
Figure 2-8. Knowledge Transfer between Companies and Universities, 2016 55
Figure 2-9. Availability of Skilled Labor, 2016 56
Figure 2-10. Availability of Qualified Engineers, 2016 57
Figure 2-11. Information Technology Skills, 2016 57
Figure 2-12. Brain Drain as a Hindrance to Competitiveness, 2016 58
Figure 2-13. Quality of Math and Science Education, 2016 59
Figure 2-14. Science in Schools, 2016 59
Figure 2-15. Number of Days to Start a Business, 2016 60
Figure 2-16. Start-up Procedures, 2016 61
Figure 2-17. Venture Capital, 2016 62
Figure 2-18. Funding for Technological Development, 2016 62
Figure 2-19. ICT Use for Business-to-Business Transactions, 2016 65
Figure 2-20. Business-to-Consumer Internet Use, 2016 65
Figure 2-21. Level of Response to Address Cyber Security, 2016 66
Figure 2-22. Importance of ICTs to Government Vision of the Future, 2016 68
Figure 2-23. Government Success in ICT Promotion, 2016 69
Figure 2-24. Laws Relating to ICTs, 2016 70
Figure 2-25. Scientific Research Legislation, 2016 71
Figure 2-26. Ease of Doing Business, 2016 71
Figure 2-27. Intellectual Property Rights, 2016 72
Figure 3-1. Reality-Virtuality Continuum 77
Figure 3-2. Number of Active Virtual Reality Users Worldwide 80
Figure 3-3. Virtual Reality Software and Hardware Market Size Worldwide 81
Figure 3-4. Korean VR Market Size 82
Figure 3-5. VR vs. AR Financing History, 2011-2015 82