08-20-98 : Editorial: Millennium Bug

  

Governments and corporations around the globe are investing huge amounts of money and mobilizing multitudes of people to address the Year 2000 (Y2K) problem, also called the ``Millennium Bug,'' which arises from the inability of old computers to distinguish between the years 2000 and 1900.

 

Failure to solve the problem will result in disruptions in critical services _ financial transactions, power supply, air flights, tax audits. National defense may also be affected. To a considerable extent, a country's competitiveness will likely be contingent on its handling of the Millennium Bug. Some big international firms say they will not conduct transactions with companies that have not resolved the Y2K problem. Credit agencies also warn that credit ratings will differ depending on the extent of progress in addressing the problem.

 

Despite the significance of the matter, Korea seems to be lacking a sense of urgency. It is moving very slowly, causing concern that its competitive edge may significantly erode in the 21st century. Skeptics say it will be almost impossible for the nation to successfully enter the 21st century having not resolved the Millennium Bug.

 

The situation is especially serious in private businesses. A recent survey of 3,000 Korean firms showed that only about 20 percent are working to tackle the computer problem with adequate financing. Thirty percent replied that they have no plan to establish budgets for this matter. These statistics reveal the ignorance and indifference of many Korean corporate managers of the Y2K issue.

 

Compared with private firms, public agencies and corporations appear well on their way to solving the problem. They are implementing government-prepared four-phased steps under which the Y2K tests would be completed by August next year.

 

The relatively good progress in public sectors does not absolve the government of responsibility for the slow pace in private sectors. It must lead private firms. It should help companies solve the problem, lending money, if necessary. The first step is to calculate the exact amount of money needed for the nation to become free of the Y2K problem. Currently, estimates made by the government and private institutions differ, ranging from 800 billion won to 5.2 trillion won.

 

Small companies badly need a helping hand. Many don't know where to start. They need help from professional, technical consultants in deciding whether to repair their existing computer systems or to replace them with new ones before Jan. 1, 2000. The government must help firms obtain this consulting service and intensify efforts to educate companies and the public on the importance of fixing old computer systems.

 

Both the government and private companies are already suffering difficulties because of the crisis clenching the nation. Preparing extra funds and mobilizing computer engineers will be burdensome. However, the task of solving the Y2K problem must not be neglected.

 

We should do our best to avert a disaster that could arise from the inadequate handling of the computer problem. The Kim Young-sam administration failed to take preventive steps even when many analysts warned of an impending foreign exchange crisis last year. A similar mistake should not be repeated.

 

Money spent in removing the computer glitch is a necessary expense, a worthy investment for future growth. It is an investment needed for the nation to improve its competitiveness and to secure its credibility in the global community.

 

Korea is lagging behind advanced countries in efforts to repair old computer systems so that we can properly and effectively work in 2000. Korea can make concerted progress if the government and major industries apply the full breadth of their energies in addressing this serious situation.