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Opposite Policies for IT Industry 2008/11/07 By Ryu, Hyung-jung Similarity in the green ocean while difference in the media policy. This is the relationship between Obama’s policy and MB’s policy. The Obama administration’s economic policy will be different from the Bush administration. 1. Different Philosophy The Obama administration will be different from the so-called MB policy. While the MB policy focuses on the deregulation, tax cuts and privatization, the Obama administration focuses on the strong regulation, tax increase on the rich and the expansion of the government budget. The Korean government focuses on the small government while the Obama administration focuses on the strong government. Therefore, the conflict is expected in the cooperation between the two governments. The Clinton administration had revived the Super 301. Therefore, the Obama administration and the strong Democratic government will try to protect the trade. 2. They have similarity in the green energy policy. The both think the green energy will be the growth engine. Obama said that he will spend $150 billion for 10 years until 2018 to develop alternative energy like bio-ethanol. Other green energy industry like solar and wind energy will be nurtured. Until 2025, he said that the US will meet 1/4 of energy demand via new and renewable energy. President Lee also said the low carbon and green growth as a new national strategy in his Independence Day remark. In September, the Ministry of Knowledge Economy and the New Growth Planning Committee announced 22 new growth items including energy, clean coal energy. Green energy is an ideal item to the both government but not a real goal. The problem is the development and the commercialization. 3. The opposite approach to media The Lee administration focuses on the convergence of media and communications as new growth engine. It tries to allow double the newspaper and the broadcasting, the deregulation on the TV Network. It also tries to establish a private media lab. But, in the Internet, it tries to put heavy regulation on the anonymity and the cyber violation. On the contrary, Obama does not like the heavy possession of the media. On November 6, Bloomberg said that Obama is likely to overturn the allowance of the double operation for newspaper and broadcasting. In the internet, he will focus on the net neutrality that carriers do not differentiate the internet site at the same speed. Obama also focuses on the internet access, saying “the broadcasting company should develop local news system and public contents,” showing the difference in the philosophy between the two governments. 4. Focusing on IT Industry Obama said that the internet should be combined with all areas including education, health care and energy. His success will affect the IT industry as a whole. YouTube, blogs have supported him. Among his advisors, many have demanded the IT oriented drive for policy. Obama is also supported by the US information highway generation. Therefore, his government is likely to become the technocrat. On the contrary, the Lee administration’s new IT policy is focused on not growth but support to other industries. For the conservative administration, IT industry is not an engine for growth but a tool for other industries and the cyber violation. The Korea Trade-Investment Promotion Agency said “Since the inauguration of the Obama administration, the US will heavily conducted pro-IT policies. Korea should focus on this in its cooperation with the US. Korea should enhance the IT development to work with the US in the economic sector.” Korea should also focus on the technocrat for the IT industry.