Changes in the software industry will occur within 5 years
Discussion on strategies for entering the global market, including resolving labor shortages and securing references.

“Software is eating the world. Change will take place within five years. This is just like the current administration's term. The changes within this term will determine the next 30 years.”

There are 215 unicorn companies worldwide with a market value exceeding $1 billion (as of September 2017, according to CB Insights). Among the top 100 companies, the U.S. accounts for 51, China for 24, and Korea for 2. Although the domestic software industry has been sustained by government support, industry insider Kim Kyu-dong, CEO of JDF, states that "compared to international standards, the investment is less than that of a single company like Google."

In the U.S. and China, a culture has been established where established companies invest in and nurture startups and new unicorn companies. Software development itself constitutes R&D. It is not a one-time process. Customers pay a price and expect continuous maintenance. Consequently, from a company's perspective, 'management costs alone' amount to nearly 25%. In Korea, this figure ranges from a minimum of 8% to 15%.



A gathering to discuss the future direction of the software industry among industry professionals was held at Software Concert 2017.

Lim Jong-hyuk, CEO of H2O Technology, stated, “Software is a value that breathes life into objects,” arguing that value enhancement is the key to success. It was pointed out that the foundation of quality lies in adherence to procedures, and that it is difficult to lead the market without standardization.

He said that while value and quality are issues that must be resolved through human action, the reality of software is that the most difficult problem is the shortage of 'people'.

Cha Young-il, Vice President of Metavuild, also agreed that the biggest obstacle in the software industry is the lack of skilled personnel. He emphasized that securing references in the domestic market is the most essential element for entering overseas markets.

Policy efforts are necessary to foster a healthy software ecosystem. In Korea, a powerhouse in IT infrastructure, if the government becomes a buyer, it can serve as a reference that resonates in global markets, including developing countries.

In addition, it was suggested that efforts for product standardization and localization should also continue.

Saltlux CEO Lee Kyung-il also acknowledged that talent is a challenge for the software industry. Noting that while the workforce output is increasing in the U.S., China, and India, it is decreasing in Korea, he stated, “Those who went abroad to study are not returning, and the average age, which used to be in their 20s, is rising to their 40s.”

He emphasized that intensive cooperation among industry, academia, and research institutes is ultimately necessary regarding methodology. He agreed that changes in the software industry would occur within five to seven years at the shortest. He predicted, “Successful companies will not be defined by how many licenses they sell, but rather by how much they have absorbed artificial intelligence, created diverse cultures, and successfully integrated them within the organization; this will be the measure of a company's performance.”