Sept. 14, 2006Sept. 14, 2006

Jung-Hee SongJung-Hee Song

IT Policy Advisor to IT Policy Advisor to

Ministry of Information and Communication,Ministry of Information and Communication,Republic of KoreaRepublic of Korea

VLDB2006

IT839 Policy IT839 Policy leading toleading to u-Korea u-Korea

IT839 Policy IT839 Policy leading toleading to u-Korea u-Korea

Dynamic u-Korea2JHSong 8/ 2006

IT Policy of Korea : IT8392

Overall Status of Korean IT Industry1

u-Korea Vision3

Table of ContentsTable of ContentsTable of ContentsTable of Contents

Dynamic u-Korea3JHSong 8/ 2006

Technological InfrastructureTechnological Infrastructure

Country

US

Singapore

Hong Kong

Taiwan

%

68.93

62.72

61.18

60.45

Rank

1

3

4

5

Korea 63.35 2

Broadband SubscribersBroadband Subscribers

Country

Hong Kong

Canada

Taiwan

Denmark

180.9

146.9

134.6

133.3

Rank

2

3

4

5

Korea 233.3 1

# of subscribers per 1,000 inhabitants

Broadband CostBroadband Cost

Country

Japan

Belgium

Hong Kong

Singapore

US$

0.09

1.15

1.27

2.21

Rank

1

3

4

5

Korea 0.25 2

# US$ per 100 kbps per month

World Best ICT InfrastructureWorld Best ICT InfrastructureWorld Best ICT InfrastructureWorld Best ICT Infrastructure

ITU reported that Korea ranked as #1

in Digital Opportunity Index at WSIS 2005.

IMD World Competitiveness Yearbook 2005

World Best ICT InfrastructureWorld Best ICT InfrastructureWorld Best ICT InfrastructureWorld Best ICT Infrastructure

Dynamic u-Korea4JHSong 8/ 2006

41.4%41.4%41.4%41.4%

MemoryMemory

LCDLCD

HHPHHP

DTVDTV

STBSTB

Air ConAir Con

RefrigeratorRefrigerator

MP3MP3

RobotRobot

CameraCamera

D. ContentD. Content

IT ServiceIT Service

Telecom Eq.Telecom Eq.

PCPC

SWSW

10%10%10%10% 20%20%20%20% 30%30%30%30% 40%40%40%40% 50%50%50%50%

5050 100100 150150 200200 250250 ($B)($B)

Market ShareMarket Share

48.348.348.348.3

46.746.746.746.7

106.6106.6106.6106.6

29.829.829.829.8

0.70.70.70.7

20.520.520.520.5

0.640.640.640.64

0.140.140.140.14

200.6200.6200.6200.6

0.480.480.480.48

148.5148.5148.5148.5

47.1%47.1%47.1%47.1%

27.8%27.8%27.8%27.8%

22.2%22.2%22.2%22.2%

18.4%18.4%18.4%18.4%

7.5%7.5%7.5%7.5%

6.9%6.9%6.9%6.9%

1.7%1.7%1.7%1.7%

1.7%1.7%1.7%1.7%

7.2%7.2%7.2%7.2%

1.5%1.5%1.5%1.5%

2.7%2.7%2.7%2.7%

23.523.523.523.5

35.635.635.635.613%13%13%13%

Market SizeMarket Size

Year2004 MS(%)Year2004 MS(%)

8.3%8.3%8.3%8.3%

197.4197.4197.4197.4

399.9399.9399.9399.92.2%2.2%2.2%2.2%

HHP ⇒ 2nd

Digital TV ⇒ 2nd

Telematics ⇒ 3rd

Home NW ⇒ 5th

Post PC ⇒ 3rd

Robot ⇒ 4th

IT SoC ⇒ 4th

Embedded SW⇒ 5th

DC & SW ⇒ 10th

HHP ⇒ 2nd

Digital TV ⇒ 2nd

Telematics ⇒ 3rd

Home NW ⇒ 5th

Post PC ⇒ 3rd

Robot ⇒ 4th

IT SoC ⇒ 4th

Embedded SW⇒ 5th

DC & SW ⇒ 10th

[Source : IITA][Source : IITA]

Worldwide Market Size & ShareWorldwide Market Size & ShareWorldwide Market Size & ShareWorldwide Market Size & Share

Dynamic u-Korea5JHSong 8/ 2006

ICT Industry & Economic Growth of KoreaICT Industry & Economic Growth of KoreaICT Industry & Economic Growth of KoreaICT Industry & Economic Growth of Korea

ICT contributes half of Korea economic growth recentlythrough productivity improvement in all industries

No. 1 in ICT contribution To TFP among OECD Members (1.02%)

IT Portion of Real GDP & Contribution rate to Economic Growth of ICT Industry

1996~2002 Contribution of ICT to Total Factor Productivity

Korea Finland Switzerland USA Japan

Source : OECD, The Economic Impact of ICT, 2004Sources : The Bank of Korea, KISDI

Contribution rate to Economic Growth

Portion of Real GDP [unit:%] [unit:%P]

Dynamic u-Korea6JHSong 8/ 2006

Sources : MIC/MOCIE of Korea

Unit : Billion $

20.822.224.830.038.0

PetrochemicalPetrochemicalGeneral MachineGeneral MachineMobile PhoneMobile Phone

SemiconductorSemiconductorAutomobileAutomobile

5 Major Item's Exports(’05)

2001 2002 20042003 2005(P) 2006(E)

38.546.3

57.574.7

78.0

88.3

25.6

28.529.7 29.3

27.628.0

ICT Exports (B$)

20

40

60

80

100

ICT Contribution to Total Exports (%)

ICT Exports Leading Korean Economic GrowthICT Exports Leading Korean Economic Growth

Dynamic u-Korea7JHSong 8/ 2006

Basic Research

Financial Support

Service SpecDetermination

Legal System

Pilot ProjectLaunchLicense Approval

Competition Policy

Frequency Allocation

InternationalCooperation

Service BusinessPlanning

R&D Activity

InfrastructureInvestment

Job Creation

Cost Reduction

Mass Production

Global Marketing & Export

Government

Fair Competition

IPR Protection

Conflict Arbitration

Product/TechnologyDevelopment

Pilot Production

IP Creation

Private

Human ResourceDevelopment

National IR

Global Standardization

Application &Solution

Reinvestment for Next Growth Engine

Government Roles in Korean ITGovernment Roles in Korean ITGovernment Roles in Korean ITGovernment Roles in Korean IT

Dynamic u-Korea8JHSong 8/ 2006

InfrastructureInfrastructure

ServiceService ProductProduct

8 Services HSDPA/W-CDMA Service WiBro Service Broadband Convergence DMB/DTV Service u-Home Service Telematics/Location-based ServiceRFID/USN ApplicationIT Service

Broadband Convergence NetworkBroadband Convergence Network u-Sensor Networku-Sensor Network Software FrameworkSoftware Framework

3 Infrastructure3 Infrastructure

Mobile Telecom/Telematics Devices

Broadband/Home NW Devices

Digital TV/Broadcasting Devices

NG Computing/Peripherals

Intelligent Service Robot

IT SoC/Convergence/Parts

RFID/USN Devices

Embedded SW

Digital Contents/SW Solution

9 Products9 Products

IT839 Strategy

IT Policy of Korea : IT839 StrategyIT Policy of Korea : IT839 StrategyIT Policy of Korea : IT839 StrategyIT Policy of Korea : IT839 Strategy

Dynamic u-Korea9JHSong 8/ 2006

Increased Social Awareness on Adverse Effects

Piracy of Personal Information, Illegal Harmful Information,

Internet Addiction become Social Issue

Informatization social issueInformatization social issue

Piracy count of Personal Information

Reported case of Illegal Harmful Information

Consultation count of Internet Addiction

Sources : Sources : KISA, KADO, KISCOM

Dynamic u-Korea10JHSong 8/ 2006

Increased Security Threat in Ubiquitous environment

The extentdegreetarget become enlarging according to

ICT convergence & diversity of information equipments

Increased Damage Impact

Information Leak, System Failure

Loss of Human Life & PropertyEnlarged Damage Coverage

Internet BcN

More extent of Target HW’s

PC Mobile Phone, networked Home Appliance

Ubiquitous threat issueUbiquitous threat issue

Dynamic u-Korea11JHSong 8/ 2006

Needs for Paradigm Shift of IT Policy

EconomicProblem

Convergence

IT

Socialㆍ CultureProblem

PoliticalProblem

EconomicProblem Solve Economic

Problem

Solve GeneralNational Problem

PoliticalProblem

Socialㆍ CultureProblem

TraditionalIndustry

ITIndustry

Nationwide IT Spreading StrategyNationwide IT Spreading Strategy

IT

Knowledge-based Information SocietyKnowledge-based Information Society Intelligence-based Information SocietyIntelligence-based Information Society

IT Spreading Strategy to Solve National Agenda such as Balanced IT Spreading Strategy to Solve National Agenda such as Balanced National Development, Low birth rate·aging Society, Culture, etc.National Development, Low birth rate·aging Society, Culture, etc.

Dynamic u-Korea12JHSong 8/ 2006

Advanced Korea based on IT World LeaderAdvanced Korea based on IT World Leader

ITIT PotentialsPotentialsITIT PotentialsPotentials

Convergence ConvergenceNew

Added ValueNew

Added Value

Intelligence IntelligenceProblem solving

CapacityProblem solving

Capacity

Network NetworkEfficient Tradingand TransactionEfficient Tradingand Transaction

Diversify DiversifyAcknowledgement and Coexistence

Acknowledgement and Coexistence

IT Mega-Trend 20 IT Mega-Trend 20

Advanced KoreaAdvanced KoreaAdvanced KoreaAdvanced Korea

Trend of National IncomeTrend of National Income

(unit:Thousands $)

Prospects of Korea 2025

-No.9 in GDP & No.3 ($52,000) in Per capita income in the world

Prospects of Korea 2025

-No.9 in GDP & No.3 ($52,000) in Per capita income in the world

Nationwide IT Spread-outNationwide IT Spread-outNationwide IT Spread-outNationwide IT Spread-out

Maintain IT as top national policy Guarantee safe IT use Narrow digital divide

Maintain IT as top national policy Guarantee safe IT use Narrow digital divide

Government

Innovate & strengthen competitiveness Invest in new IT convergence area

Innovate & strengthen competitiveness Invest in new IT convergence area

Participate in ubiquitous society Consciously use IT & productively use IT

Participate in ubiquitous society Consciously use IT & productively use IT

Individual

Guarantee Momentum to reach Advance Korea

Guarantee Momentum to reach Advance Korea

Company

Dynamic u-Korea13JHSong 8/ 2006

World-class IT clusterWorld-class IT cluster

R&D, architecture/manufacturing,assembly/test, pilot projectExhibition/conference, consultingservice, IPR, design support

Provide shared service in areas with easy access to foreign markets

Provide shared service in areas with easy access to foreign markets

New technology test-bedTest new business model

Dissemination of ‘Korean model’What works in Korea works in the world

Dissemination of ‘Korean model’What works in Korea works in the world

Architecture/manufacturing

Assembly/testR&D

Consulting service

Exhibition/conference

IPR management

DesignPilot

project

Korea as IT Hub of North-East AsiaKorea as IT Hub of North-East AsiaKorea as IT Hub of North-East AsiaKorea as IT Hub of North-East Asia