ABSTRACT
This chapter attempts to trace the development and performance of the Korean informatics industry, selected aspects of government policies and institutions that have greatly shaped its growth, and the problems and difficulties as well as the future prospects facing the industry. Korea is a relative latecomer to the new information age. Informatics production in Korea is primarily by electronic firms producing a wide variety of electronics. Korea has very aggressively sought foreign direct investment both as an effective way to attract needed capital for development and advanced technology by providing a wide array of special tax and other incentives. The government's policies have been instrumented through various means: economic plans, trade barriers, subsidies, special tax breaks, research and development expenditures, research institutes, educational and manpower policies, foreign capital and technology inducements policies, and special legislation. In developing its electronics industry, particularly in the area of informatics, Korea has relied on foreign technology.
