The Korea Times
amn_close.png
amn_bl.png
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
amn_bl.png
Business
  • Tech
  • Bio
  • Companies
amn_bl.png
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
amn_bl.png
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to President
  • Letter to the Editor
amn_bl.png
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
amn_bl.png
Entertainment & Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
amn_bl.png
Sports
amn_bl.png
World
  • SCMP
  • Asia
amn_bl.png
Video
  • Korean Storytellers
  • POPKORN
  • Culture
  • People
  • News
amn_bl.png
Photos
  • Photo News
  • Darkroom
amn_NK.png amn_DR.png amn_LK.png amn_LE.png
  • bt_fb_on_2022.svgbt_fb_over_2022.svg
  • bt_twitter_on_2022.svgbt_twitter_over_2022.svg
  • bt_youtube_on_2022.svgbt_youtube_over_2022.svg
  • bt_instagram_on_2022.svgbt_instagram_over_2022.svg
The Korea Times
amn_close.png
amn_bl.png
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
amn_bl.png
Business
  • Tech
  • Bio
  • Companies
amn_bl.png
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
amn_bl.png
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to President
  • Letter to the Editor
amn_bl.png
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
amn_bl.png
Entertainment & Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
amn_bl.png
Sports
amn_bl.png
World
  • SCMP
  • Asia
amn_bl.png
Video
  • Korean Storytellers
  • POPKORN
  • Culture
  • People
  • News
amn_bl.png
Photos
  • Photo News
  • Darkroom
amn_NK.png amn_DR.png amn_LK.png amn_LE.png
  • bt_fb_on_2022.svgbt_fb_over_2022.svg
  • bt_twitter_on_2022.svgbt_twitter_over_2022.svg
  • bt_youtube_on_2022.svgbt_youtube_over_2022.svg
  • bt_instagram_on_2022.svgbt_instagram_over_2022.svg
  • Login
  • Register
  • Login
  • Register
  • The Korea Times
  • search
  • all menu
  • Login
  • Subscribe
  • Photos
  • Video
  • World
  • Sports
  • Opinion
  • Entertainment & Art
  • Lifestyle
  • Finance
  • Business
  • National
  • North Korea
  • 1

    People attempt to cut surging heating costs with creative solutions

  • 3

    BLACKPINK sets 6 more Guinness records

  • 5

    TXT brings together 'pansori' and fairy tale in new song 'Sugar Rush Ride'

  • 7

    Cabinet ministries turn deaf ear to watchdog's advice on sexual minorities

  • 9

    More Korean manufacturers enjoy Georgia's hospitality

  • 11

    National pension anticipated to be fully drained in 2055: NPS

  • 13

    Superintendent of Seoul Education Office gets suspended jail term

  • 15

    Opposition leader Lee claims innocence in corruption probe

  • 17

    12 websites still unavailable after Chinese cyberattacks

  • 19

    Wall Street climbs to hit best level in nearly eight weeks

  • 2

    Senior US general warns of possible looming war with China

  • 4

    Jang Keun-suk steps out of his comfort zone with 'The Bait'

  • 6

    ENA's new dating show to spotlight young adult's romance

  • 8

    Bad weather disrupts operation of Jeju airport again after 3 days

  • 10

    Seoul to work with Hanoi to pursue peace on Korean peninsula

  • 12

    Korea's rice consumption hits another low in 2022: data

  • 14

    SK E&S retains gov't support for Barossa gas project in Australia

  • 16

    Police to build disaster prediction system to prevent recurrence of Itaewon tragedy

  • 18

    Indonesia celebrates 50th anniversary of diplomatic ties with Korea via virtual event

  • 20

    LGES to capitalize on US IRA, Tesla partnership to continue record earnings

Close scrollclosebutton

Close for 24 hours

Open
  • The Korea Times
  • search
  • all menu
  • Login
  • Subscribe
  • Photos
  • Video
  • World
  • Sports
  • Opinion
  • Entertainment & Art
  • Lifestyle
  • Finance
  • Business
  • National
  • North Korea
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
Sun, January 29, 2023 | 02:28
Business
Lee and Co. changing KT to DNA
Posted : 2011-09-30 19:39
Updated : 2011-09-30 19:39
Print PreviewPrint Preview
Font Size UpFont Size Up
Font Size DownFont Size Down
  • facebook
  • twitter
  • kakaolink
  • whatsapp
  • reddit
  • mailto
  • link


Telecom firm to pay for value of software rather than development cost

By Yoon Ja-young

KT, the country’s leading communications company, surprised the software industry Thursday by announcing plans to nurture the sector. Most of all, it would be recompensing for the value of the software, instead of paying for only the labor cost of the developers.

The announcement comes as refreshing news in a country where the software industry hasn’t been paid its due remuneration. “KT may be small compared with conglomerates, but I believe our small effort will bear big fruit if other companies or the government agree with our initiative and determine that they should join it to save the software industry,” KT Chairman Lee Seok-chae said.

It is not the first time for KT to lead the initiative in the country’s IT industry. Under Lee, who had the insight to see a step further than others, the once state-owned company, which was a symbol of inefficiency, is suggesting where the country’s IT industry should head.

Information over technology

From the time he was inaugurated as KT chairman, Lee has pointed out that the IT Korea is strong at “T,” the hardware, but weak at “I,” the software, and has focused on strengthening the latter.

He was right. The country had to be ill at ease when Google announced the acquisition of Motorola. The country has powerful handset manufacturers like Samsung and LG, but the power was shifting to software. Those ruling the operating systems such as Google and Apple hold the keys, and hardware companies feel they can be replaced by other manufacturers at anytime.

Korea, meanwhile, accounts for less than 3 percent of the global software market.

The introduction of Apple’s iPhone helped KT increase its market share, but it has a bigger meaning for the country’s IT industry. It brought in overall change in the industry, leading to a second leap forward. Lee chose it as the trigger for transition from hardware to software and from a “walled garden” to an ecosystem.

“He saw the value of the iPhone in ‘software and content through an open market,’ not the handset itself,” a representative for KT said.

Applications from the App Store provided not only consumers with new experiences, but also developers with new business opportunities. The statistics back this up. During the first year since the introduction of the iPhone, young entrepreneurs beginning startups increased 32.4 percent.

The iPhone initiative by KT moved the government as well. Witnessing the importance of the software industry, it committed to investing 1 trillion won to the content industry for three years. Other mobile carriers and manufacturers also started expanding open partnerships with the software sector and small businesses.

Upon his inauguration, Lee led merger of KT with KTF, the telecommunications arm, and the convergence between wired and wireless helped it deal with the explosive growth in traffic. KT has led convergence in the industry, such as between IT and finance or between satellite broadcasting and IPTV.

To face Apple and Google, KT led the Wholesale App Community (WAC), the app store comprising of 60 mobile carriers and targeting their 4 billion users.

From government to IT leader

When Lee took charge of KT, there was concern as to whether the former top government official would fit the rapidly changing IT industry. However, he proved himself to be a successful IT CEO, with an endless innovation agenda.

Lee, majored in business administration at Seoul National University and holds a Ph.D. in economics from Boston University. He held leading government posts, including vice minister at the agricultural and finance ministry, and as minister of information technology.

When he was appointed, KT was in trouble. Its main business, wired communications, was falling, but the 100-year-old, previously state-owned company, wasn’t bracing for change.

The chairman changed the corporate culture, instilling a dynamic and young atmosphere.

He also showed a sixth sense in discovering talented people such as Pyo Hyun-myung, president of KT’s Mobile Business Group. Song Jung-hee, the senior executive vice president in charge of service innovation group at KT, is another.

Song, who earned a Ph.D. in electrical and computer engineering at Carnegie Mellon University, set up the country’s IT strategy regarding future growth engines while working for the government and in academia.

The chairman scouted her to be in charge of transforming the service business from a customer point of view, and Song proved her ability by leading the software industry nurturing plan and the joint venture on data center service business with Softbank.
Emailchizpizza@koreatimes.co.kr Article ListMore articles by this reporter
 
wooribank
Top 10 Stories
1People attempt to cut surging heating costs with creative solutions People attempt to cut surging heating costs with creative solutions
2Cabinet ministries turn deaf ear to watchdog's advice on sexual minorities Cabinet ministries turn deaf ear to watchdog's advice on sexual minorities
3More Korean manufacturers enjoy Georgia's hospitality More Korean manufacturers enjoy Georgia's hospitality
4Seoul to work with Hanoi to pursue peace on Korean peninsula Seoul to work with Hanoi to pursue peace on Korean peninsula
5Superintendent of Seoul Education Office gets suspended jail term Superintendent of Seoul Education Office gets suspended jail term
6SK E&S retains gov't support for Barossa gas project in Australia SK E&S retains gov't support for Barossa gas project in Australia
7Indonesia celebrates 50th anniversary of diplomatic ties with Korea via virtual event Indonesia celebrates 50th anniversary of diplomatic ties with Korea via virtual event
8LGES to capitalize on US IRA, Tesla partnership to continue record earnings LGES to capitalize on US IRA, Tesla partnership to continue record earnings
9KT&G aims to become global top-tier company KT&G aims to become global top-tier company
10Middle East 'sales diplomacy' picks up speed Middle East 'sales diplomacy' picks up speed
Top 5 Entertainment News
1BLACKPINK sets 6 more Guinness records BLACKPINK sets 6 more Guinness records
2Jang Keun-suk steps out of his comfort zone with 'The Bait' Jang Keun-suk steps out of his comfort zone with 'The Bait'
3Shunsuke Michieda overwhelmed by Korean fans' support for his coming-of-age film Shunsuke Michieda overwhelmed by Korean fans' support for his coming-of-age film
4Kim Hyun-joo says humanity is at heart of action film 'Jung_E' Kim Hyun-joo says humanity is at heart of action film 'Jung_E'
5TXT brings together 'pansori' and fairy tale in new song 'Sugar Rush Ride' TXT brings together 'pansori' and fairy tale in new song 'Sugar Rush Ride'
DARKROOM
  • Nepal plane crash

    Nepal plane crash

  • Brazil capital uprising

    Brazil capital uprising

  • Happy New Year 2023

    Happy New Year 2023

  • World Cup 2022 Final - Argentina vs France

    World Cup 2022 Final - Argentina vs France

  • World Cup 2022 France vs Morocco

    World Cup 2022 France vs Morocco

wooribank
CEO & Publisher : Oh Young-jin
Digital News Email : webmaster@koreatimes.co.kr
Tel : 02-724-2114
Online newspaper registration No : 서울,아52844
Date of registration : 2020.02.05
Masthead : The Korea Times
Copyright © koreatimes.co.kr. All rights reserved.
  • About Us
  • Introduction
  • History
  • Contact Us
  • Products & Services
  • Subscribe
  • E-paper
  • RSS Service
  • Content Sales
  • Site Map
  • Policy
  • Code of Ethics
  • Ombudsman
  • Privacy Statement
  • Terms of Service
  • Copyright Policy
  • Family Site
  • Hankook Ilbo
  • Dongwha Group