The South Korean government has set aside 50 billion won (US$48.87 million) over the next five years to seek out new revenue from the Internet of Things (IoT) market.
The country's Ministry of Science, ICT and Future Planning and Ministry of Trade, Industry and Energy will invest 37 billion won from 2015 in the development of core technologies in IoT, reported Yonhap News Agency. The investment will also look at the development of micro-electromechanical system (MEMS) sensor chips as well as broadband sensing devices.
Another 12.3 billion won will come from Korea's private sector, giving an overall investment of 50 billion won. The government also has plans to groom specialists in IoT technologies.
Government officials noted that the country's overall production value of IoT MEMS sensors was targeted to grow to 230 billion won by 2020, compared to 70 billion won last year. Focus on this market segment is part of the government's efforts to reduce South Korea's reliance on imports in the sector, noted the report.
According to IDC projections, the IoT ecosystem is expected to be worth US$8.9 trillion in 2020, encompassing sensors, networking, and related technology. The number of connected devices is expected to hit 212 billion by end-2020, the research firm predicted, adding that the market will expand at a compound annual growth rate of 7.9 percent.