22% of the South Korean population have a broadband connection at home. Being a broadband world leader is only one of many unparalleled South Korean success stories.

The world's largest software company Microsoft recently opened its first mobile innovation lab in South Korea. "This demonstrates the superiority of Korea's IT infrastructure as well as the competitiveness of Korea's research and development environment," boasted Jin Dae-je, Minister of Information und Communication, at the opening ceremony.

That kind of pride is more than justified. Three quarters of South Korea's 48 million use the Internet, having a cutting edge mobile phone is a must for anyone living in the densely populated cities. "Enthusiasm for technology is everywhere. Koreans use electronic devices like we use pens," says Jens Dodel, Project Manager at Roland Berger Strategy Consultants. The automotive expert cites electronic devices in personal vehicles as an example. "In South Korea, DVD players in cars are just as standard as highly developed electronic solutions." This particular affinity to technical devices has transformed the country in a few decades. While South Korea used to be a developing country, it is now a technological hot spot.

Training StarCraft

South Koreans' love of video games has driven development. For example, a fad among college students is to spend every available moment playing multiplayer strategy games like StarCraft. Only a high-speed Internet connection and high-end computer can ensure that such games can be delivered with good quality and in real time.

As a result, the South Korean government has established an optimal framework to ensure that the country keeps up with technological developments. One project, for example, is the creation of the Broadband Convergence Network, an integrated service environment that combines wired and wireless communication. Some lines transmit 100 Megabits of data per second, which is 50 times faster than what is usually offered in Europe or the United States.

Another success factor is the so-called latecomer's advantage: watch, listen and learn very carefully from other countries or companies, and then simply produce something better, faster and cheaper. By practicing this very concept, South Korea now has a successful automotive industry, the biggest ship building docks in the world and the most efficient steel industry. "The absolute discipline is particularly impressive. It influences everything from serving food at a company canteen to the punctuality of public transit, working hours and even holidays. Individual desires always come second to the well-being of the company," Dodel points out.

"Brain Korea 21"

Education is another field in which Korea is outstanding. One fifth of its annual government budget is earmarked for the Ministry of Education – no other public institution is granted the same amount of funds. Under the "Brain Korea 21" program, the government is investing heavily in universities and building entirely new centers of learning, particularly in science. The overall aim is to join the ranks of the top global universities and to collaborate on equal terms with the world's leading graduate schools, particularly American universities. Forty percent of South Korea's young adults have university degrees, a rate which ranked the country third in a recent international study.

In 2000 and 2003, policy makers from around the world took notice when South Korea ranked in the top 5 across all categories of the OECD's PISA study for students aged 15. Poignantly, in the category of "problem solving", introduced to test the pupils ability to think "outside the box", Korea ranked number one of the 41 countries involved.

It is no wonder, then, that such performance is making companies in other parts of the world, such as Silicon Valley, nervous. The San Francisco Chronicle, a local daily, has already predicted the end of the US's computer market dominance. Recently, a headline read "The future is South Korea".

If you have any questions or concerns, please feel free to contact us: