Report: South Koreans Putting $1.6 Billion In Web InfrastructureReport: South Koreans Putting $1.6 Billion In Web Infrastructure

Already a pacesetter in broadband usage, South Korean small businesses are preparing to invest $1.6 billion to improve their Internet infrastructure and solutions this year, according to a report released Monday by AMI-Partners.

The amount will account for 13 percent of the total IT and telecom spending in Korea underscoring the importance both business and government there place in developing high-speed technologies.

"Korea is the most prominent emerging superpower in IT spending and particularly in Internet adoption," said Avimanyu Datta, an AMI-Partners analyst, in a statement. "The deregulation of the telecom sector by the government resulted in the formation of one of the best telecommunication infrastructure in the world. This has helped fuel the enormous growth of the country's Internet and wireless market."

Noting that the South Korean economy grew 4.2 percent in 2005, AMI-Partners said the country has been in the forefront of 3G deployment and is hard at work developing prototypes and core technologies for fourth-generation mobile communications.

Datta said one of the reasons the Korean broadband model has been so successful is because Korean small and medium businesses view the Internet not just as an economical channel for communications but rather as a strategic growth driver to enhance their competitive position.

"South Korea is the most prominent emerging superpower in IT spending and particularly in Internet adoption," said Datta. "Almost all medium businesses and 81 percent of small businesses already have access to the Internet."