The South Korean government has said it plans to inject up to USD 1.4 billion in the next five years in a bid to become one of the top five leaders in the information technology (IT) convergence sector.

The plan, outlined at a weekly economic policymaker meeting, calls for concerted research and development (R&D) support in sensors, computing, networking and actuating, which are the four main components of the cutting-edge industry.

IT convergence can fuel growth of traditional businesses such as shipbuilding, automobiles, machinery, energy, and defense areas by creating more value. It can also churn out a range of new products like smartphones.

The Ministry of Knowledge Economy said if investments by both the government and private sector bear fruit, the country should be able to raise the percentage of locally made IT convergence parts and components from just 10 per cent of the total current demand to 30 per cent by 2015.

It said the country's global ranking could rise from outside 10th place to levels on par with the United States, Japan, Germany and some leading European countries.

"Despite gains made in the IT sector as a whole, the country effectively lags behind global IT convergence leaders in terms of original technology and innovation skills," said Jeong Marn-ki, head of the ministry's IT industry policy office.

He said South Korea can no longer be content with following leaders and using foreign-made parts in its IT products if it wants to get ahead.