The Evolution of Korean Information Infrastructure and Its Future Direction: A System Dynamics Model

Abstract

The recent technological and industrial revolution dictates a new approach in constructing Korean Information Infrastructure. Lacking past data on the newly emerging markets, econometrics methodologies cannot accurately forecast future paths of advanced networks, let alone dynamic impacts of public policies. In this paper, we have built a system dynamics model of the Korean Information Infrastructure and simulated diverse policy measures including market integration and government initiative in investment for experimenting their effectiveness. The most counterintuitive result of our research is that the market integration policy will facilitate CATV networks at an early stage until the year 2010, but will result in a diminished market size in the long run. With the system dynamics approach, we can enhance our understanding of the complex policy systems and get valuable insights through learning by modeling and simulation.