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What challenges is South Korea’s Technology Industry facing?

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South Korea is a thriving market for its technology industry. Samsung and LG Electronics Industries are the major ICT companies at the forefront of innovation. The cybersecurity market is also growing rapidly due to the rise of cyber threats.

The cybersecurity product and service market in South Korea reached $3.3 billion in 2020 and is expected to continue growing. But the shortage of skilled tech professionals, with thousands of unfilled software developer jobs, is a major challenge in the technology industry.

Companies as well as the South Korean government are offering several initiatives for training, attracting, and retaining workers and talented international people with massive compensation and flexible work arrangements. The South Korean technology industry is a well-known leader in innovation and growth, but it faces several challenges.

Let’s scrutinise the challenges:

  1. The Korean government has urged the private sector to overcome the recent loss of competitive advantage in items with mature technology.
  2. Due to the industry’s resource constraints and heavy reliance on manufactured exports, the nation is particularly exposed to shocks brought on by any downturn in technology.
  3. Lack of access to finance in the technology sector hinders investment in the R&D department.
  4. Large enterprises are also facing challenges with anticompetitive behaviour in the technology sector.
  5. The dominance of the native language in South Korea makes it difficult for international investors to invest in the country’s technological sector.
  6. Charging stations lack the infrastructure needed for the growth of the electric vehicle market in South Korea.

There is also a need for balance between the dominance of large corporations, SMEs, and startups in the technology innovation ecosystem. The development of artificial intelligence (AI) and big data applications hampers the lack of data utilisation and other data skills.

Cyberattacks and other IT-related threats and crimes are often difficult to handle and pose security and privacy issues. Once the challenges are addressed, the growth and competitiveness of South Korea’s technology industry can be enhanced. This is what is presumed from the expert’s view.

Sources:- Sciencedirect, South Korea information, GP Meridian, Statista, Foreign Affairs, weforum, Pearson and Partners, The Diplomat, nature, storm 4

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