Starting Line
Local IT service giants who are already banned from entering the local public IT business due to restrictions may also find themselves unable to penetrate the overseas electronic government market due to political roadblocks.
The Ministry of Security and Public Administration (MOSPA) in charge of electronic government (E-Government), and the Ministry of Science, ICT, and Future Planning (MSIP), in charge of the software industry promotion act, have conflicting opinions over conglomerates’ entry into th overseas E-Government market, making it difficult for big companies to enter the E-Government business overseas.
MOSPA demanded of the MSIP on May 1 to bend its rules, since local conglomerates cannot enter foreign E-Government markets due to their inability to place orders locally. MOSPA argued that the conglomerates should be made exceptions, so that they can order locally for their overseas E-Government business for projects such as military, national security, police, and electricity.
MOSPA’s associate says, “In case of Official Development Assistance, where Korea gives financial support, big companies cannot enter the bid because they are governed by local law. Local companies will be defeated by major foreign companies if large companies like Samsung and LG cannot use their brand names and expertise.”
In particular, Business Process Re-engineering, Information Strategic Planning (BPR-ISP), which sets up mid-long term information planning, is a local aid business that usually gets implemented first on locally-raised aid funds, to be followed by the main infrastructure business paid for by the relevant government.
According to the ministry’s analysis, once small and medium-sized companies are done with BPR-ISP, more often than not they cannot proceed with the main infrastructure business, to their loss. MOSPA is calling on MSIP to change their policy on the matter.