• Written by I-ON Digital IR Team

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The Ultimate debate: ‘Save the Korean SW’ 2014

‘The Ultimate debate’ aiming to save the Korean SW industry took place on April 12th at Gangnam Startup Alliance Center. Starting from 2p.m, participants had passionate discussion during 6 hours. Dr. Byung-ho SONG, professor of Sangmyung university, Mr. Sang-bum ROH, CEO of OK JSP, Mr. Jaecheol OH, CEO of I-ON Communications, Mr.Min-suk LEE, president of NHN NEXT and many in the SW industry participated in the event.

Mr. Jaecheol OH put emphasis on necessary changes of industry structure: general mindset considering SW as service should be changed in priority to break out of the SW ecosystem’s vicious circle; structure has to turn from man-month to man-hour system.

Focusing on “How could Korean SW industry effectively develop in a 5-year-time?”, SW market, suppliers, relevant experts discussed about ‘must-do’ list. The discussion is summarized below:

1. 1. What the government must do:
   1. 1) Breakaway industry structure of service delivery (SI Industry -> user-centered market: increase of SW market value)
      Today, SW Industry’s fundamental problem stems from ‘free service’ and if such perception doesn’t change, Korean SW future is very uncertain.
   2. 2) The copyright and license agreement separation
      The copyright and license agreement should be separated to change the general perception of the buyer (ordering body). The common sense that SW is an object of purchase and not a service delivery has to be established to develop industry.
   3. 3) Improvement of sub-subcontracting structure
      Request of information disclosure: the disclosure of contracts could be a solution.
   4. 4) Man/Month -> Man/Hour
   5. 5) The IT Human Resource white paper
      - IT job perception can change through information disclosure about annual income level and career (can be seen as jobs for life, promising future)
      - Regulation to prevent developers’ rating system
   6. 6) Accurate standards system (revenue, man/hour, etc.)
      -SW industry is characterized by the composition of small entities. By proposing accurate standards, encourage fair competition and regulate monopolization (prevent 50% exceeding monopolization, provide opportunities of common development)
      - The government should be less present in the market (Its purchasing power amounted to several hundreds of billion is only 2-3% of the market)
   7. 7) Government-level SW deploy prohibition, which deter SW industry. (Government should principally propose standards and carry out its practice).
      
2. 2. What the SW institutions must do:
   
   1. 1) SW association, Policy research institute and SW experts’ continuous debate organization
   2. 2) Association or leading-figure creation to communicate and deliver the discussed content during debates
   3. 3) SW Star companies development and marketing (through public institutions supports, NIPA, etc.) to change perception about IT human resource
   4. 4) Developer community’s support – foster new talent
      
3. 3. What SW industry people must do:
   
   1. 1) Willing attitude for SW policy improvement
      - Hana JANG member of the National Assemply: Bill proposal for sub-subcontractor structure change by Ministry of Science, ICT and Future Planning. SW industry people should actively support relevant actions (for the moment the proposal is objected strongly).
   2. 2) Campaigns and funding to fight against negative prejudice about IT Human Resource and SW industry
   3. 3) Association or leading-figure creation to communicate the SW industry people’s opinion to the Government and policy maker
      - Desperate need to give actively opinions and deliver IT knowledge
      - Study of SW policy history and laws
      - Multiply possibilities to talk, debate and carry out realization plan