Chang W. Kim@chang1

Welcome to Korea!

50

80,000

20

20,000

?

Korean Internet

1997-2001

The good days

* Source: CIA, 2009

2009 GDP

China Japan S. Korea

$8,789 bn

$4,137 bn

$1,356 bn

* Source: CIA, 2009

2009 Export

China Japan S. Korea

$1,194 bn

$517 bn

$356 bn

% Broadband (of all subscribers), 2000

94%

51% 50%

42%

28% 27% 26%23% 22% 21% 19% 18%

10%5% 5%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Korea

Belgium

Canada

Hong K

ong

Taiwan

Japa

n

Singap

ore

Sweden

Austri

a

Icela

nd

Denmar

kUS

Nether

lands

Switzer

land

Finlan

d

* Source: ITU

Tiny country+

Large population+

Great broadband+

Group behavior

99.9% of 10-19 year olds, and

99.7% of 20-29 year olds use internet in Korea

* Source: NIDA

Avg 1,587 mins. spent online Feb 2009

(= 56 mins/day; Longest in Asia)

* Source: Comscore

11 million to online gaming site Aug ’08

13 times /month, 3 hours each time

* Source: Comscore

Oct 1999 Aug 2003

Sept 1999 Feb 2004

Oct 2002 Dec 2005

However…

Korean internet ~=

Portal Internal Referrer %

10%

67% 66%

36%

* Sourc e : Kore an Clic k

IE over 90%

Movie Download Market Size

Legal Illegal

KRW 20 bn

KRW 370 bn

* Sourc e : DCNA, 2009

47% of all internet users

illegally downloaded 55 movies a year

* Source: Korean Film Counsil Survey 2008

Korean Internet Service CAGR

Community, SNS

News Search

-11.4%+3.5% +4.6%

-0.4%

Email

* Sourc e : Kore an Clic k

MinihompiesClub, cafeBBS

-20%-8%-32%

Mobile data service / total ARPU

41.0%

32.4%

27.8% 27.2% 26.7%25.5%

17.4%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

Japan Austrailia UK China Hong Kong US Korea

* Sourc e : Mob ize n.pe .kr

Hope?

* Sourc e : Hang ye ore Ne w s pape r

700K iPhones sold in 6 months

(Only 7 countries more than 500K in 1 yr)

* Sourc e : Hang ye ore Ne w s pape r

500K iPhones

4 months (population: 48M)

7 months (population: 130M)

No more Galapagos!

2007 2008

KRW 570 bn

KRW 370 bn

2005 2007

0.3%1.3%

2008

5.1%

Illegal movie download % Legal movie download

Next Generation Entrepreneurs!!