S. Korea's mobile Internet market expected to hit US$40 bln in 2017

By Kim Seung-yeon

SEOUL, March 3 (Yonhap) -- South Korea's mobile Internet market is forecast to be worth US$40 billion in 2017, a global consulting firm said Tuesday, driven by its advanced network coverage and robust demand for e-commerce and smartphone apps.

The mobile Internet market reached $28 billion for Asia's fourth-largest economy at the end of 2013, accounting for about 2 percent of the country's gross domestic product (GDP). This is according to data compiled by the Boston Consulting Group (BCG) based on 13 countries surveyed for a report commissioned by Google Korea.

South Korea will likely see a 10-percent expansion annually in its mobile Internet growth over the next two years, with the size of its e-commerce expected to grow 15 percent every year to $7 billion over the same period, the data showed.

South Korea, one of the most mature countries in the world in terms of mobile development, has both the infrastructure, such as the 4th generation network, and users who are willing to spend money on mobile applications and Internet shopping, which will be key to fueling growth, the BCG noted.

"The mobile Internet economy has emerged as a major industry over the last five years, and we anticipate it will grow more rapidly in the future," Ethan Choi, a BCG partner said at a press briefing.

South Koreans showed in the report a strong attachment to the use of their mobile devices and mobile-related activities. Two-thirds of those surveyed said they would give up chocolate, fast food or newspapers over mobile Internet use.

Sixty percent of the Koreans said they would rather quit alcohol and coffee, while 20 percent answered they would give up taking a shower.

The 13 countries surveyed, which make up more than 70 percent of the world's GDP, are estimated to generate $1.6 trillion in revenue from the mobile Internet market in 2017, growing by 23 percent annually.

elly@yna.co.kr
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