SMEs lagging in infotech despite gov`t funds

Despite the government¡¯s policy to support small- and medium-sized enterprises (SMEs)¡¯ attempts to boost their level of information technology, a recent survey shows that the current economic slowdown has brought these efforts to a virtual halt.

Matrix2B, a company specializing in trade solutions, announced Monday the results of a survey of the information technology level at about 3,000 companies.

The poll was conducted using its trade electronic data interchange (EDI) solution. According to Matrix2B, the growth rate in the introduction of software, which approached 870% (561 firms newly introduced) in 1997, plummeted to 144% (276 firms newly introduced) in 1998, when Korea was placed under the International Monetary Fund (IMF)-led retrenchment policy. The figure rose to 257% (1,425 firms newly introduced) in 1999 thanks to the economic recovery, but fell once more to 137% (872 firms newly introduced) in 2000 due to the economic slump.

Based on the results, Matrix2B concluded that the increase rate in the introduction of software closely coincides with economic trends, indicating that economic slowdowns have a greater impact than government support measures on information technology levels at smaller companies.