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CIAO DATE: 10/03

The Growth of Broadband Internet Connections in South Korea: Contributing Factors

Kyounglim Yun, Heejin Lee and So-Hye Lim

September 2002

Asia/Pacific Research Center

Abstract

In recent years, Korea has seen a remarkable diffusion in broadband Internet connections. This paper explores the actions and factors contributing to this diffusion from three viewpoints: public sector, private sector, and social.We suggest that the matching of demand and supply is the most important factor in the fast diffusion of broadband in Korea.In particular, fierce infrastructure competition has led to quality services at a low fixed price. We also consider two challenges that lie ahead: take-up of retail e-commerce applications, and the need to bridge the digital divide.

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