3 hours Ago By Korea IT Times
Korea IT Times celebrates its 20th anniversary with insightful columns from local and international thought leaders. Following contributions from experts from all walks of life in J uly , August , and September , we are pleased to present our October contributors. B y Chair Professor Cho, Sung Kap (skc1777@anyang.
ac.kr) Every year, CES in Las Vegas showcases world-class IT solutions and products. Organizations and individuals put a lot of effort into demonstrating their capabilities and gaining customer recognition, with new releases usually launched in February.
A few years ago, the former chairman of Mercedes-Benz said in a special lecture, "We are not a car manufacturer, we are a software company," and coined the phrase "Software is eating the world," predicting the expansion of the AI era led by software and semiconductors. In modern society, AI is driving innovation and development across all sectors, playing an irreplaceable role as a critical component. AI improves our lives in many ways, from routine communication to global business functions, and strengthens the foundations of health, security and education.
The impact of these advances is measured by market capitalisation, which reflects a country's value creation, and the intangible value of patent technology. Therefore, the list of the world's top 10 and top 100 companies is an indicator of a nation's standing. The announcement of the top 10 global companies by market capitalisation on 4 October did not include any South Korean IT companies.
Although South Korea's R&D budget accounts for 5.2% of its total national budget - a higher percentage than the United States (3.2%), Japan (3.
2%) and Germany (3.1%) - and ranks second in the world, it is curious that an IT leader like South Korea is not on this list. To satisfy this logical curiosity, let's explore the reasons why.
Below are the top 10 companies and their countries of origin (source: Statistics Korea, KOSIS). Apple, $3.448T: USA Microsoft, $3.
092T: USA Nvidia, $1.064T: USA Alphabet (Google), $2.065T: USA Amazon, $1.
957T: USA Saudi Aramco, $1.743T: Saudi Arabia Meta (Facebook), $1.707T: USA Berkshire Hathaway, $995.
11B: USA TSMC, $939.51B: Taiwan Broadcom, $825.01B: USA (Note: B stands for billion, T stands for trillion) Excluding companies from Taiwan and Saudi Arabia, eight of the top ten are American, accounting for 80% of the top 100's revenues.
What national policies facilitate such business growth, and how do differences in education systems affect the creation of these outcomes? It is critical to approach IT solutions, including commercial software such as Oracle, ERP, Java, Android, PowerPoint and Excel, with creative thinking. While there is national support to nurture start-ups and grow them into unicorns, practical results remain limited. It is crucial to re-evaluate and reform policies through post-mortem analysis.
Creative thinking should be respected and understood from an early age, supported by an education system that encourages it from kindergarten. For example, when children are asked "What is 1 plus 1?", the answer is usually "2", which is praised as correct. But if a child answers "3" and is reprimanded, it stifles creativity.
Instead, teachers should encourage children to explain their reasoning, such as imagining a scenario where two bananas become three after being shared. Such nurturing environments encourage creativity and the fearless pursuit of innovation from an early age. In addition, American citizens receive an early education in the 3Ss (Servant, Sacrifice, Share & Love) and honesty, which is firmly embedded from the family dinner table to educational institutions and corporate environments.
This social structure prevented forgiveness in cases such as Nixon's Watergate scandal. The success of American IT companies, which dominate the world's top ten with eight out of ten, is attributed to the combination of a culture that accepts failure, an education system that encourages creativity and a social framework that supports innovation. In Silicon Valley, institutions such as Stanford University work with industry in seamless clusters, contributing to a virtuous cycle of growth supported by a huge market and government support.
A Culture Unafraid of Failure Vibrant venture culture: Silicon Valley's venture ecosystem encourages constant creation and investment in new ideas, supported by a social norm that avoids stigmatising failure - resulting in fearless entrepreneurial endeavour. Legal protection: With a robust intellectual property system, entrepreneurs can safely protect their ideas in the U.S.
In addition, well-structured bankruptcy laws allow individuals to recover and start over after failure. Changing social perceptions: The understanding that growth comes from learning from failure is spreading, positively changing societal views on failure. Creative education system Hands-on education: The American system emphasises building real-world problem-solving skills alongside academic knowledge through project-based learning and STEAM education, fostering creativity and analytical skills.
Respect for diversity: Schools provide environments where students from different cultural backgrounds interact, sparking creative ideas and equipping them with the skills needed in a global age. A culture of lifelong learning: With its emphasis on continuous learning, American society rewards those who continually update their knowledge and skills, which are scientifically assessed based on recent performance. Project-Based Learning (PBL): This method allows students to define problems and seek solutions, developing innovative problem-solving skills.
Coding and Systems Education: Focusing on logical thinking and problem solving, this education ensures proficiency in computer programming. Other factors Investment environment: With abundant capital and a sophisticated financial system, investment in promising startups in the US is smooth and active. Global market: The US offers the largest market and is the hub of innovation, providing a prime environment for global companies to thrive.
In conclusion, the success of American IT companies is the result of the harmonious interaction of a failure-tolerant culture, creative education and supportive social systems that have developed over time as social, educational and cultural assets. Korea must continue its efforts to build such systems. About the Author Cho, Sung Kap, PhD, is Chair Professor at Anyang University, President of the Korea Youth Behavioural Science and Culture Institute, and President of the Korea Internet Ethics Promotion Association.
He has been involved in the prevention and resolution of ethical concerns related to Internet infrastructure in the context of the Fourth Industrial Revolution. This has included the development and operation of programmes through national agencies, including the Information and Communication Ethics Committee, the Internet Ethics Certification Examination, and the Internet Ethics Leadership Training Programme. Professor Cho has previously held several prominent positions, including President of Seoul Institute of Technology (Uzbekistan), Head of IBM Korea, Vice President of Hyundai Information Technology, and Professor at Korea University.
He has also served as Chairman of the Asia-Europe Meeting (ASEM) ICT Working Group, President of the Federation of Korean Information Technology Societies, and Vice President of Sehan University. His remarkable achievements and contributions have been recognized with awards such as the Presidential Award, the Order of Industrial Service Merit and the Moran Medal of the Order of Civil Merit..
