A Study focused on how Korean IT Service Firms were financially impacted since the restrictions on participation of large firms

  • Abstract
  • Keywords
  • References
  • PDF
  • Abstract

    The restriction of participation in public informatization projects by firms with cross-shareholding restrictions in the Republic of Korea, was enforced in January 2013. This study analyzes the financial performances of small and medium sized IT firms in Korea three years prior and 3 years after the restrictions on participation of large firm. We verified whether there were any differences between medium and small IT service firms before and after restrictions on participation of large firms. A sample of 121 small and medium-sized IT services firms were classified into 3 groups and statistical techniques (T-test and one-way ANOVA) were used for the purpose of the analysis. In the three years after the restriction of participation of large corporations, the total assets and sales of the medium and small IT service firms were positive, but the operating profit and net profit were negative. Particularly, the negative effects were more pronounced for medium-sized. The reduction effect of medium and small-sized IT service firms is different from the first legislative purpose of enforcing the restriction system of large enterprises, so we suggest the policy to be revised.


  • Keywords

    Accounting; IT Service; IT Marketing; IT Policy; Management Information

  • References

      [1] Yoo HS, Kang SH, Yoo JH (2016), "Research on Advancement of Software Ecosystem in Public Sector", Software Policy & Research Institute, 2016-002, pp.1-8, available online: https://spri.kr/posts/view/21800?code=research

      [2] Kim MA(2015), "The Problems of Restrictions on Large Business Participation in the IT Service Industry", KOREA ECONOMIC RESEARCH INSTITUTE, pp.15-29, available online: http://www.keri.org/web/www/research_0201?p_p_id=EXT_BBS&p_p_lifecycle=0&p_p_state=normal&p_p_mode=view&_EXT_BBS_struts_action=%2Fext%2Fbbs%2Fview_message&_EXT_BBS_messageId=350483

      [3] Lee HK(2015), "Research for the development of software industry ecosystem", The Korea Society of Management Information System International Conference, pp.3-16, available online: http://www.kmis.or.kr/kmis/sub02/sub02_view.asp?Idx=1282&sBcode=A01

      [4] Choi SI, "An Approach to Promote the Public Sector System Integration Market in Korea", The Korea Institute of Electronic Communication Sciences, Vol. 8, N.11, (2013), pp.1725-1731.

      [5] Kim DS, An YH, "The Entry Regulation Against Large Firms in Software Procurement", The Legal Studies Institute of Chosun University, Vol. 21, No.1, (2014), pp.201-227.

      [6] Kang CH, "Law, policy review and development proposal for restrictions on participation in large-enterprise public SW projects", KOREA ECONOMIC RESEARCH INSTITUTE, Vol. 2015 No. 11, (2015), pp.47-59.

      [7] Sin IH, Lee DC, Sin EH. Jeon JY, Park DS, Hwang SG(2015), "A Study on Impact and Improvement of Major Firm Limitation in Public SW Market",National IT Industry Promotion Agency, pp.1-6.

      [8] Kang US(2009), "A study on a growth model for IT service firms in Korea [Doctoral thesis]", Kookmin University, pp.31.

      [9] Yoo HS, Kang SH, Kim JY(2016), "Institutionalization plan of a Split-Ordering System for Strengthening the Public SW ecosystem", Software Policy & Research Institute, 2016-007, pp.2, available online: https://spri.kr/posts/view/18499?code=issue_reports

      [10] Software Policy & Research Institute(2016), "2016 WHITE PAPER OF KOREA SOFTWARE INDUSTRY", Ministry of Scicnce and ICT, Software Policy & Research Institute. pp.90-94, available online: https://www.spri.kr/posts/view/21850?code=annual_reports

      [11] Lee HS, Lee YS(2018), "Improvement plan of Public SI and Cloud Procurement system", Software Policy & Research Institute, pp.19-22. available online: https://spri.kr/posts/view/22057?code=research

      [12] Economic Statistics System[Internet]. available online: https://ecos.bok.or.kr

      [13] Data Analysis, Retrieval and Transfer System[Internet]. available online: https://dart.fss.or.kr/

      [14] KOREA ENTERPRISE DATA[Internet]. available online: http://www.cretop.com/




Article ID: 21182
DOI: 10.14419/ijet.v7i3.33.21182

Copyright © 2012-2015 Science Publishing Corporation Inc. All rights reserved.