Can Korea adapt to the post-PC era?

The stock market value of Google surpassed that of Microsoft for the first time on the New York Stock Exchange on Monday, ranking as the 4th most valuable listed company. A mobile Web-based software company has outpaced a PC-based software rival, a signal that the PC era is fading. American and British media said the Google milestone is a harbinger of an IT market shift from PC to mobile.

Having been No. 1 in stock market value for 30 years, Microsoft was beaten by Apple in 2010 and by Google after two years. Microsoft had led the PC era with its Windows operating system, but was eventually knocked down due to its slow shift to mobile. Google, on the other hand, transformed the industry paradigm with new businesses, including its Android operating system and mobile advertising. The rise of Google stems from the power of securing software talent across borders and adapting to market changes.

The competitiveness of hardware products including mobile phones, TVs and cars depends on software. Against this background, technology convergence is expanding between hardware and software centering on mobile and the Web. The number of software companies among the world`s top 100 corporations in stock value has doubled in the past 20 years. Korea is a manufacturing powerhouse but lags behind in software. Manufacturers including Samsung Electronics, Hyundai Motor, POSCO, Hyundai Mobis and Kia Motors are among the top listed companies in the main Korean stock index KOSPI. Failure to adapt to changes will only dent Korea`s reputation as an IT powerhouse. If squeezed out in the global competition for software, the country will have a lower chance of securing next-generation growth engines and creating jobs for the younger generation.

To become a software powerhouse, Korea should resolve problems like its small domestically oriented market and low productivity. The software industry accounts for less than 2 percent of GDP. Back in 2010, no Korean company was among the top global 100 IT companies. Utilizing software in industries to the level of the U.S., the U.K and Japan will boost GDP 1.43 percent. In other countries, software companies are listed as places where most people want to work, which is not the case in Korea. Talented software workers are lacking mainly due to low compensation, students avoiding majoring in software and poor education. These factors are worsening Korea`s business competitiveness. Practical education by linking industry and academia is crucial to fostering key software professionals for the future of Korean companies.