Porter Diamond

Overview
Korea is one of the new developed countries in terms of Information and Telecommunication. Current IT landscape in Korea indicated various factors that can enhance Korea's competitive advantages. The detailed analysis below is based on Michael E. Porter's Diamond Framework for Competitive Advantage of Nations (1)
　
1. National IT Strengths in Korea
Korea's Competitive Advantages

　1.1 Factor Endowments
Korea is one of the most advanced countries in terms of Telecommunication Infrastructure and its usage of it. The continuous effort by Korean government to improve Information Technology infrastructure has been a major driver of IT development in Korea. Over 90% of nation area is wired with broadband internet network and Internet penetration rates is 51.6 % as well as onefor computing, at 77%. This well-established infrastructure plays positive role in attracting foreign investment in Korea and also facilitate the development of domestic IT industry. (Telecommunication Infrastructure Computing & Internet Diffusion)
The total number of IT workforce in Korea accounted for 447,000 (2.1% of total national workforce). The overall level of education in Korea isrelatively high and especially there are many skilled IT professionals and labor forces. Korean government has planned to support educational institutions such as colleges and private institutes related to IT skills and The number of programs containing higher education in computer science is increasing. Therefore the supply and the quality of Korea's IT workforce is expected increased. In addition,since there are social perceptions that  IT skills is most important and demanding in Knowledge-based society and that it is hard to survive without proper knowledge or skill related to IT, Koreans has adapted state of the art technology relatively rapidly. (IT Workforce)
Korean IT policies has focused on improvement in IT infrastructure, facilitating the usage of information technology,enhancing favorable environment for development of IT industry and on educating citizen under "Cyber Korea 21", visionary national IT industry development plan. This continuous and somehow aggressive government effort for IT plays a significant role in development of IT industry combined with huge investment from private sectors and also in attracting foreign investment. (National IT policies)
DaeDeokValley is an important IT cluster that provides technological Know-how to small, medium-size firms, share information between R&D units to facilitate the development of technology. The IT cluster in Korea also has attracted foreign investment in IT industry in Korea and furthermore several joint research and development projects with well-known foreign companies and universities. Theseactivities will enhance the national IT competitiveness for sure. (IT Geographic)
In addition, the geographical location of Korea can be regarded another factor for IT advantages. Close to Central China in which newly has developed Information and Telecommunication industry, Korean IT professionals and companies have entered into their IT market. Through export of CDMA technology, Korea also has plannedto establish solid network among the south Asia nations.
　
1.2 Demand Conditions
Korea has shown the high computing and Internet penetration rate since 1998. This also indicates the large user base of Internet and creates sophisticated internet usage pattern. The adoption rate of Internet by gender, by age indicated the widespread of internet usage in Korean people. This is attributed that thegovernment efforts to balance the technological development among region and among age groups through government investment and several education program is effective. (Commuting & Internet Diffusion  Internet Usage by Sectors) The large, balanced Internet user base and demand for better service, higher quality through technological development will encourage the further development of IT...