The International Herald Tribune today looks at South Korea's market-leading position in many areas of technology -- spurred, reporter Martin Fackler writes, by goverment support. "In South Korea, the government has established a strong record in strategic industries, even specific technologies, economists say," he writes. "But many also question how much longer this fast-rising economy will tolerate such paternalism."

"The government has had real successes so far, but it will get increasingly difficult to keep doing this," says Terence Lim of Goldman Sachs. "Korea's economy is outgrowing this old mentality of government dictating to the market."

South Korea's most significant successes thus far have been in wireless and IT, led by the country's Ministry of Information and Communication, which boasts a $1 billion new technology budget. Information Minister chin Dae Jae is the architect of the tech plan, called IT 839. Chin worked with Korean companies to pick technologies that would help the country "leap into the leadership position" in IT.

And it's paying off: WiBro, South Korea's version of WiMAX, launches in Seoul today, far ahead of international competitors. "WiBro is something we are very proud of," says Samsung Electronics VP Kim Byung Cheol. "We worked with government for rapid development."

But Fackler writes that the government-led strategy still has huge risks. Industrial policy "works fine when government is right," says Seoul National University professor Lee Keun. "But if the government chooses the wrong technology, and all companies follow it, this could be disastrous."