Korea Internet White Paper 2013 English
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Transcript of Korea Internet White Paper 2013 English
● The Special Report and the Top 10 News on the Internet contained in this White Paper have been selected through discussion by the editing committee, which is composed of experts from the industry, academia, research institutes and the government.
● The numbers in the statistical tables and diagrams have been rounded off for the sake of convenience, and thus the sum of specific items may not always correspond with the total.
● The 2013 Korea Internet White Paper puts together the latest Internet issues and trends that occurred during 2012. Due to the presidential election and consequent reorganization of the government in 2013, the government agencies responsible for overseeing and helping to manage the ICT industry were changed from the KCC, MOPAS and MKE to MSIP, KCC and MSPA. For this reason, the responsible departments are mentioned in this document according to the current government organization.
● MSIP(Ministry of Science, ICT and Future Planning), KCC(Korea Communications Commission), MSPA(Ministry of Security and Public Administration), KISA(Korea Internet & Security Agency)
Notice
2013 Korea Internet White Paper
Publisher’s Message
By June of 2013, the number of Korean smartphone users exceeded 35 million, with 65% subscribing to LTE services. The paradigm is quickly shifting from the wired Internet to the wireless Internet. Also, as seen by the recent Gangnam Style craze that spread globally via YouTube, social media has proven to be a very powerful and irreversible aspect of contemporary life.
As the use of the wireless Internet has been rapidly increasing so too has the spread of malicious mobile codes and new frauds like smishing. Moreover, we are inundated with uncertain and unwanted information. It is imperative that we create an environment for invigorating Internet services safely in response to them. The Korea Internet & Security Agency is trying to become a leader in the global Internet arena by finding new growth engines combining information security with the Internet, diffusing a healthy Internet culture, and engaging in international cooperation.
It’s been already 14 years since its first publication. The ‘2013 Korea Internet White Paper’ reflects the policy paradigm for creating new jobs and markets through ICT convergence. The Special Reports section covers the mobile Internet, new Internet industries, and creative economy. Part 1, Infrastructure, handles the Internet infrastructure and new technological trends. Part 2, Services, covers Internet services, and business and convergence services. In Part 3, Utilization, the contents on the Internet industry, Internet use at home and abroad, and international cooperation are updated.
I hope this White Paper will be widely used as a basic reference for policy making, research and development of more efficient operations. I would now like to extend my gratitude to the writers, the editors and all those who have worked so hard for the publication of the ‘2013 Korea Internet White Paper.’
Lee, Ki JooPresident, Korea Internet & Security Agency
Infra
Service
1982•�Build SDN (TCP/IP){Seoul National
University - Korea Electronics Technology Institute (KETI)}
1983•Connect SDN-EUNET/UUCPNET•Start PSTN data service•Open Overseas Public Data Network
1984•Connect SDN-CSNET•Open first PSDN, Dacom-Net
1985•Connect SDN-PACNET
1986•�Assignment of first IP address (128.134.0.0)•�Introduction of country
domain (.kr)
1988•Connect SDN-MHSNET
1989•�Introduction of Education Network
(KREN) and Research Network (KREONet)•�Build SDN-HANA network (KT)
1982•First connection to the Internet
1983•Offer information search service
1984•Offer commercial Email service (Dacom)
1985•Offer Korean Email service• Introduction of PC communication
(Dacom)
1987•Offer H-Mail service•Start PC banking service
1988•�Start commercial PC communication
service (Chollian)•�Introduction of private BBS (The FIRST)•�Development of vaccine following first
virus attack (Brain)•�Start EDI service (Dacom)
1981•Establishment of Korea Telecom Authority
1982•�Establishment of Korea Data Communication co.,Ltd•�Prepare 1st Basic Plan for Computerization of
Administration
1983•�Enactment of Framework Act on
Telecommunication (first use of term, Information & communications)•�Prepare National Backbone Network Business Plan
1984•�Organization of National Backbone Network
Coordination Committee
1985•�Prepare National Administrative Network
Implementation Plan•�Hold first int'l computer network related
conference (PCCS)
1986•�Enactment of Act on Computer Network
Expansion and utilization promotion
1987•�Establishment of National
Computerization Agency (NCA)•�Prepare 1st National Backbone Network
Basic Plan•�Organization of Computer Network
coordination Committee
In 1982 when the SDN (System Development Network) was built, Internet service began in Korea. Since then, it has grown rapidly and broadband Internet subscribers had reached 18 million in 2012.Thereafter, Korea became the first in the world to launch commercial WiBro and HSDPA services, and confirmed its position as an Internet powerhouse. In 2012, Korea smartphone users exceeded 30 million. The country is now making efforts to become a world leader in the smart age.
History of the Korea Internet
Policy
2013 Korea Internet White Paper
1981~1984 1985~1989
1990•� Connect SDN-HANA to USA IP
based Internet
1993•�Open administration
information network (NATISNET)
1997•Start leased line service•�Start high speed national network
Internet service•�PC communication subscribers
exceed 3 million
1999• Internet users exceed 10 million•First assignment of IPv6 address
2000• Open commercial ATM exchange
network• Establishment of Korea ISP Association
(KISPA)
2001•�No. 1 in broadband
networks (OECD)
2002•� Broadband Internet
subscribers exceed 10 million •�No. 1 in broadband Internet
penetration
1994•�Introduction of Commercial ISP
(KT, Dacom, iNet)
1995•�Establishment of PC-Internet
connection•�Implementation of KIX Service
1996•Open ISDN public network
1991•�Start online issue service of
resident registration documents
1997• Start online stock trading service• First free Internet services for Email
and search, etc.• Introduction of portal sites (Netsgo)
1998•�Introduction of commercial
broadband Internet service (Thrunet)•Offer e-Government service
1999• Start ADSL service (Hanaro Telecom)•Start online banking service
2001•�Online banking subscribers
exceed 10 million•�Introduction of Internet
content rating service
2002•�Game market exceed KRW
3 trillion
1994•�Introduction of commercial
Internet service (KT)• Start text based MUD game service•�Open government authorities
websites (Blue House, etc.)
1995•Start 'WWW' service•�Start Internet café (Netscafé)•�Open Internet news & broadcasting
sites (JOINS, KBS)
1996•Start ISDN Internet servic•Start e-Commerce and First webzine service•�Introduction of first graphic based MUG game•Hold Information EXPO
1990•�Prepare Master plan Information
Society
1992•�Prepare 2nd National Backbone
Network Basic Plan•�Enactment of Act on Promotion of
Information and Communications Network Utilization, etc.
1993• Prepare National Information
Super Highway Basic plan
1998•�Prepare Information and Communications
Network Improverment Plan•�Prepare PC Communication and Internet
Utilization Promotion Plan
1999•Development of 'Cyber Korea 21'•�Enactment of Framework Act on Electronic
Commerce, Digital Signature Act•�Establishment of KRNIC
2000 • Completion of 2nd Stage National
Information Super Highway Project• Enactment of Software Industry
Promotion Act, Knowledge Information Resource Management Act• Prepare Personal Information Protection Guidelines• Implementation of 11 Initiatives for e-Government• Establishment of Korea SW Industry Promotion Agency (KIPA)
2001•�Enactment of Act on
Promotion of Information and Communications Network Utilization and Information Protection, etc.
2002•�Development of 'e- Korea
Vision 2006'
1994•�Establishment of Ministry of
Information and Communication (MIC)
1995• Prepare National Information super
highway master plan•�Enactment of Framework Act on
Informatization Promotion•�Establishment of Korea Internet
Safety Commission (KISCOM)
1996•�Prepare 1st Informatization Promotion
Basic Plan•�Organization of Informatization Promotion
Committee•�Establishment of Korea Information Security
Agency (KISA)
• Introduction of Commercial Internet Service
• Establishment of Ministry of Information and Communication
• Introduction of commercial broadband Internet service
• Internet users exceed 10 million
1990 1994 1998 1999 2001 2002
1990~1993 1994~1996 1997~2000 2001~2002
• No. 1 in broadband networks
• Enactment of Act on Promotion of Information and Communication Network Utilization and Information Protection, etc.
• Broadband Internet subscribers exceed 10 million
• Development of 'e-Korea Vision 2006'
InfraS
erviceP
olicy
2003•�1.25 Internet Security
Incident
2004•�Internet users exceed
30 million•�Start BcN pilot project
2003• Start VDSL (20Mbps)
service• Start mobile banking
service• Start of Hangul.kr service
2003•�Development of
'Broadband IT Korea Vision 2007'
2004•�Development of
'IT839 Strategy'•�Prepare BcN
Implementation Plan
•�No. 1 in Digital Opportunity Index (ITU)•�Pilot Internet service on
aircraft (Korean Air)•�International standardization
of 'WiBro' (IEEE)
• Introduction of commercial VoIP service•�Mobile banking users exceed
1 million•�Online game market exceed
KRW 1 trillion •�Start mobile e-Bidding
service
•�Prepare IPv6 Distribution Promotion Basic Plan•�Implementation of Real-
Name System for Internet Civil Service•�Prepare the Basic Plan on
Internet Address Resource Development, Promotion, and Managementt
•�No.1 in Digital Opportunity Index (ITU)• International
standardization of WiBro and T-DMB (ITU)
• Introduction of the 2nd level kr domain (QuickDom)• e-Commerce market
exceed KRW 500 trillion
• Implementation of Identity Verification• Introduction of i-PIN, an
alternative to resident registration number• Establishment of
Korea IT International Cooperation Agency (KIICA)
• No. 1 in Digital Opportunity Index (ITU)• Start FTTH service
• Introduction of world first WiBro, HSDPA service•�Online retail volume exceed
KRW 13 trillion •�Start mobile civil service
•�Development of 'u-Korea Basic Plan'• Prepare e-Learning Industry
Development Basic Plan• Prepare Online Game
Identity Theft and Hacking Prevention Plan• Development of 'u-IT839
Strategy'• Hold 1st Korea Internet
Award
2013 Korea Internet White Paper
•�Implementation of Identity Verification
• Development of 'Broadband IT Korea Vision 2007'
• Development of IT839 Strategy
• Internet users exceed 30 million
• Introduction of commercial VoIP service
• Introduction of world first WiBro, HSDPA service
• Development of 'u- Korea Basic Plan'
2003 2004 2005 2006 2007
2003~2004 2005 2006 2007
•�No. 2 in ICT Development Index • Implementation of Giga-
Internet Pilot Project•7.7 DDoS Attack
• Subscribers of VoIP exceed 6.5 million• Mobile banking users
exceed 10 million
• Establishment of Midlong-term Broadcasting Communication Network Development Plan• Establishment of Mobile
Internet Promotion Plan (Phase 1 & 2)• Launching of
integrated Korea Internet & Security Agency• Hosting of 36th ICANN
Meeting in Seoul• Establishment of Cloud
Computing Promotion Plan
•�30th anniversary of the Korea Internet•�Broadband Internet
subscribers exceed 18 million
• Smartphone subscribers exceed 30 million• IPTV service subscribers
exceed 6 million• LTE subscribers exceed
15 million
• Implementation the global K–startup program• Launch of the Korea
Internet governance council• Designate the Day of
information security (2nd Wednesday of July)
• Registrations of kr domains exceed 1 million•�Online banking
customers exceed 50 million•�Online game export
attains USD 1 billion •�Launching of
commercial IPTV service
• Establishment of the Korea Communications Commission• OECD Ministerial
Meeting on the Future of the Internet Economy•���Enactment of the Internet
Multimedia Broadcasting Business Act•���Prepare the 2nd Basic Plan on
Internet Address Resource Development, Promotion, and Management•���Prepare the Internet
Security Protection Plan
•�Broadband Internet subscribers Exceed 15 million• Commercialization
and service coverage expansion of WiBro Wave2
•�IPTV service subscribers exceed 3 million• Smartphone subscribers
exceed 7 million•�WiBro export attains
KRW 1 trillion
•�Opening of '☎118' Counseling center•�Development of IPv6
transition plan•�Establishment of the
Internet Cooperation Forum•�Establishment of Internet
Advertising Market Promotion Plan•�Organization of KIDS
(Korea Internet Dream Stars)
•�No. 1 in UN e-Government Development Index and e-Participation Index•�Completion of BcN
project
•�Launch of the LTE commercial service (SKT/LG U+)• Launch of the ‘.한국’
domain service • Smartphone subscribers
exceed 20 million• Internet banking users
exceed 70 million• Mobile banking users
exceed 20 million
• Establishment of the Plans for Promotion of the NFC-based Mobile Smart Life service• Opening of pan-
governmental policy council on cloud computing• Implementation of the
Personal Information Protection Act• Introduction of the Mobile
Ad Platform Certification Law
•�No. 1 in ICT Development Index•�Opening of the LBS
Business Support Center•�No. 1 in terms of the
number of subscribers to wireless Broadband Internet per a population of 100 people (OECD)•�3.4 DDoS Attack•�IPv4 assignment ended
• Establishment of Korea Communications Commission
• OECD Ministerial Meeting on the Future of the Internet Economy
• No. 2 in ICT Development Index
• No. 1 in UN e-Govern-ment Development Index and e-Participa-tion Index
• Smartphone subscrib-ers exceed 20 million
• Launch of the LTE Commercial service
• 30th anniversary of the Korea Internet
• Designate the Day of information security (2nd Wednesday of July)
2012201020092008 2011
2008 2009 2010 2011 2012
Internet at a Glance
MSIP, wired and wireless communication service subscription statistics, 2013 Internet Statistics Information System, isis.kisa.or.kr
>> Number of smartphone subscribers >> Number of ISPs(Unit : 1,000 persons) (Unit : ea.)
2011. 12 2013. 4
22,578
34,665
2012. 12
32,727
2013. 1
33,298
2013. 2
33,822
2013. 3
34,330
2004
78
2005
79
2006
106
2007
112
2008
125
2009
126
2010
127
2011
121
2012
119
2013 Korea Internet White Paper
Former KCC · KISA, 2012 Survey on the Internet Usage, 2013
>> Broadband Internet subscribers (Unit : 1,000 persons)
MSIP, Broadband Internet subscription (compiled), 2013
(Unit : %, 1,000 persons)
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Internet users Internet usage rate
78.0 78.4
65.570.2 72.8 74.1 75.5 76.5 77.2 77.8
29,22031,580 33,010 34,910 35,590 36,190 36,580 37,010 37,180 38,120
20102009 2012201120082007200620052004
18,254
17,224 16,349
15,475 14,710
14,043
12,191 11,921
17,860
>> Internet users and Internet usage rate
(Unit : KRW 1 billion, %)>> e-Commerce transaction volume (Unit : KRW 1 billion, %)
Type2011 2012p Annual
Componentratio
Componentratio
Growth amount
Growth rate
B2B 912,883 91.3 1,050,985 91.8 138,103 15.1
B2G 58,378 5.8 62,259 5.4 3,880 6.6
B2C 18,533 1.9 19,641 1.7 1,108 6.0
C2C 9,788 1.0 11,804 1.0 2,016 20.6
Total 999,582 100 1,144,689 100 145,107 14.5
※ p : preliminary Statistics Korea, 2012 Annual and Q4 e-Commerce and Online Shopping Trend, 2013
Type2011 2012p Annual
Componentratio
Componentratio
Growth amount
Growth rate
Product Range
Total Store 21,836 75.1 24,145 74.6 2,309 10.6
Specialty Store 7,237 24.9 8,203 25.4 966 13.3
Operation Type
Online 18,991 65.3 20,417 63.1 1,426 7.5
On-Offline 10,081 34.7 11,930 36.9 1,849 18.3
Total 29,072 100 32,347 100 3,275 11.3
※ p : preliminary Statistics Korea, 2012 Annual and Q4 e-Commerce and Online Shopping Trend, 2013
>> Online shopping transaction volume
677 785914
1,0241,151
1,3651,556
1,7472,023
2,2732,497
2,749
11 1214
1618
2123
2629
3336
39
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012e 2013e
Internet users Internet usage rate
※ e : estimate ITU, ITU Statistics, 2013
>> International Internet users and Internet usage rate (Unit : %, million persons)>> ICT development index ranks (as of 2011)
Rank Country (index) Rank Country (index)
1 Korea(8.56) 8 Japan(7.76)
2 Sweden(8.34) 9 UK(7.75)
3 Denmark(8.29) 10 Switzerland(7.68)
4 Iceland(8.17) 11 Hong Kong(7.68)
5 Finland(8.04) 12 Singapore(7.66)
6 Holland(7.82) 15 US(7.48)
7 Luxembourg(7.76) 17 New Zealand(7.34)
ITU, Measuring the Information Society 2012, 2012
>> Sales of the online music distribution (Unit : KRW 1 billion, %)>> Sales of the game industry
Small categorySales
RatioAnnual growth rate2009 2010 2011
Mobile music service business 77 55 122 13.9 121.0
Internet music service business 360 454 592 67.4 30.5
Sound source brokerage 60 64 87 9.8 36.4
Internet and mobile music contents production and
provision business 73 49 78 8.9 58.2
Total 570 622 880 100 41.4
TypeSales
(KRW 1 million)
Added value(KRW 1 million)
Added value ratio (%)
Export (USD 1,000)
Import (USD 1,000)
2006 7,448,900 3,655,175 49.1 671,994 207,556
2007 5,143,600 2,487,445 48.4 781,004 389,549
2008 5,604,700 2,808,000 50.1 1,093,865 386,920
2009 6,580,600 3,348,867 50.9 1,240,856 332,250
2010 7,431,118 3,768,320 50.7 1,606,102 242,532
2011 8,804,740 4,184,893 47.5 2,378,078 204,986
Annual growth rate 18.5 11.1 △3.2 48.1 △15.5
Ministry of Culture, Sports and Tourism · Korea Creative Content Agency, 2012 content industry statistics, 2013
Ministry of Culture, Sports and Tourism · Korea Creative Content Agency, 2012 content industry statistics, 2013
>> Sales of the Internet industry (Unit : KRW 1 billion, %)>> Revenues of e-Learning service providers (Unit : KRW 1 billion, %)
Type 2007 2008 2009 2010 2011 2012P CAGRAnnual growth rate
Infrastructure industry
1,499(5.5)
1,547(5.1)
1,659(5.0)
1,766(4.9)
1,511(3.9)
1,463(3.5)
△0.5 △3.2
Support industry
6,486(23.8)
7,937(26.1)
8,407(25.2)
9,358(25.9)
10,263(26.2)
10,955(26.4)
11.1 6.7
Utilization industry
19,278(70.7)
20,974(68.9)
23,289(69.8)
24,958(69.2)
27,345(69.9)
29,111(70.1)
8.6 6.5
Total 27,263 30,458 33,355 36,082 39,119 41,529 8.8 6.2
※ p : preliminary, ( ) is ratio ※ CAGR : Compound Annual Growth Rate for 2007~2012
KAIT, Broadcasting Communication Industry Report (Monthly/Yearly) (compiled), 2012
Type2010 2011 2012 Annual
growth rateSales
Componentratio
SalesComponent
ratioSales
Componentratio
Contents 509 22.7 538 22.0 516 18.8 △4.2
Solutions 224 10.0 235 9.6 237 8.6 0.6
Services 1,513 67.4 1,678 68.4 1,996 72.6 18.9
Total 2,246 100 2,451 100 2,748 100 12.1
NIPA, 2012 Survey on e-Learning Industry Trend (compiled), 2013
| Internet Statistics |
2013 Korea Internet White Paper
Top 10 Internet News
In just three years after the initial release of the Apple iPhone in Korea at the end of 2009, it became so popular that 7 out of 10 Koreans were soon using smartphones. According to the MSIP, the number of smartphone subscribers had exceeded 20 million in October 2011, 30 million in October 2012, and 34 million in April 2013. According to the ‘Smartphone Usage
Survey’ announced by the KISA in December 2012, the average smartphone usage time was 19.5 months with an average daily usage time of 102 minutes. Smartphones have truly become
an integral part of our daily lives. In particular, for some services such as transportation and maps, there are more mobile users than wired ones.
The rapid increase of smartphones is affecting competition throughout the entire Internet industry. Naver’s domination of the Korean mobile market continues, but the rapid progress of Kakao, spearheaded by KakaoTalk, Kakao Game and Kakao Story, stands out. In particular, Kakao has been able to create its own ecosystem with hit games like Anipang and Dragon Flight one after another. In addition, mo-bile apps like Kimgisa, for navigation, and Watcha, for movie recommendations, are very popular. To implement more smartphone based services, the MSIP has decided to more strictly enforce its policies for enhancing the wireless network infrastructure and supporting a system for fostering app developers.
Rapid increase in mobile Internet use
01
It was a video uploaded to YouTube that made Psy a global star overnight. In just four months Gangnam Style recorded 840 million views on November 24, 2012 to be ranked No. 1 on YouTube beating Justin Bieber. And by April 2013, that number had reached a phenomenal 1.5 billion. Psy, who primarily operates in the market of Korea, was ranked second on the US Billboard chart for 7 weeks in a row, and topped music charts in more than 30 countries, including the UK, Germany, France, Australia, Canada, Italy, Spain and Holland, definitively demonstrating the power of social media like YouTube, Twitter, LinkedIn and Facebook. Currently there are more than 5 million videos uploaded to YouTube and the number only increases with each passing day.
It is clearly evident that people are utilizing the power of social media to create business opportunities. Large and small corporations, including the likes of Sam-sung and CJ, now routinely upload videos to YouTube with each release of a new product, and they are also using Facebook and Twitter to promote their businesses.The LG Economic Research Institute has forecast that OTT (Over The Top), which uses the Internet to deliver broadcasts and movies, will become a keyword that will dominate the communication market in 2013.
Power of social media exemplified by ‘Gangnam Style’
02
In 2012, there were a number of very heated debates among political parties and the IT industry about how to foster new industries as growth engines for the economy, and about eliminating burdensome regulations. Leaders of the domestic ICT industry, including KISA and academia, invited presidential candidates to attend an Internet policy debate where they spoke with one
voice about fostering new industries and promoting self-regulation. They pointed out that in the US, companies such as Amazon, Apple and Google have created their own IT ecosystems with
which they are exercising their global influence to the fullest. And thanks to innovative venture capital corporations like Y-Combinator, successful startups like Pinterest and Square come into being one after
another. So participants discussed strategies on how to foster new Internet based industries to create jobs with sustainable growth. Among them, cloud-based services, big data and the Internet of things rose as key technologies. As a result, a guideline for introducing cloud based technologies and services for the private sector was prepared in December 2012, and a free web based office program that makes it possible to create documents without using Mi-crosoft’s proprietary Office software is becoming more popular. The MSIP also hatched a plan aiming at fostering 1,000 new Internet com-panies with hopes of creating 50,000 new jobs by 2017. The ministry is also putting the finishing touches on its Cloud Computing Development Act, and is planning to build a big data center for research and public use.
Fostering new Internet industries
03
LTE has emerged as the technology destined to replace 3G. As it is about 2.5 times faster than 3G, LTE makes it possible to transmit large files without nagging breaks. According to the smartphone usage survey conducted in the second half of 2012, LTE had by then accounted for 44.6% of all smartphone users, up 15.9% over the first half of 2012 (28.7%), whereas 3G actually declined from 71.3% to 55.4%. And competition for LTE subscribers will surely be-come fiercer when USIM (Universal Subscriber Identity Module) portability, – currently allowed only for 3G cell phones – is allowed for LTE smartphones starting on November 1, 2013.The spread of smartphones and full-scale provision of LTE services is segueing into the spectrum war among mobile carriers. As LTE subscribers average 1.84GB of traffic per month, which is about 1.6 times more than
for a 3G subscriber, it is very important for providers to get a good frequency band to provide high-quality service. In particular, open debate between KT and SK Telecom concerning the allocation of the 1.8GHz band, which has been used by the military, is intensifying. Meanwhile, in May of 2013 Japan’s KDDI unveiled its LTE-Advanced (LTE-A) technology, which has a transmission efficiency three times higher than the current LTE standard. So there is clearly a lot of competition in developing new mobile communication technology.
Opening the LTE era
04
| Internet News |
2013 Korea Internet White Paper
The KCC first announced its plan to limit the use of resident registration number (RRN) on the In-ternet in August 2012. By February of 2013, a 'clean Internet' without resident registration num-bers being used (and thereby making users vulnerable to a privacy breach) was realized. Users can now use their i-Pin, cell phone numbers and certificates instead of their RRN when signing
up for any kind of membership via the Internet. Service providers now have subscribers sign up to services by using e-mail and social network accounts. No RRNs can be collected or stored anymore.
The previous string of leaks and thefts of personal information and RRNs were attributed to the gov-ernment policy that required the storage of RRNs when signing up for Internet services.
After realizing the consequences, the Government banned, in 2012, the collection of RRNs by websites having more than 10,000 daily visitors except some sites legally required to collect personal information such as for Internet banking. The ban will be extended to all websites in 2013 and use of RRNs of exist-ing subscribers will be completely scrapped by 2014. As for financial sites, to which this law is not applied, the Financial Services Commission and the KCC are consulting with each other on whether to ban RRNs for non-financial business. However, despite the law being enacted, there was a scam in which 170,000 resident registration numbers were purchased and then used for signing up at websites to collect signup points. The perpetrator illegally gained hundreds of millions of Korean Won. So it is clear that leaks and theft of previously collected RRNs remain a potential problem that can happen at any time.
Internet without resident registration numbers
05
The 18th presidential election in 2012 showed just how much the focus of online campaigning is shifting to mobile SNS channels. In particular, the SNS election campaigns, which previously fo-cused on voters in their 20’s and 30’s, was extended in the 18th presidential election to include in their 50’s and 60’s, so we can see that SNS strategies of election campaigns will surely grow in im-portance. Until 2010 election campaigns were run with a focus on social networks, text messages and Twitter, but now the channels have been diversified to include podcasts, YouTube videos and mobile messengers starting with ‘Naneun Komsuda’ in 2011. In particular, Internet and SNS campaign tactics have become a crucial means of communication for all political parties in 2012.The greatest battlefield in SNS election campaigns, however, is still Twitter. Of all postings about candidates, messages equiva-lent to 10 times the sum of all messages in online news, cafes and blogs were found to have spread through Twitter. The daily
average number of tweets related to the presidential election during the 90 days prior to the election was 259,000, up 175% as compared to the number of tweets during the 90 days prior to the general election in April 2012. If one user tweeted about 4.1 times a day during the 2012 general election, the same user tweeted 8.7 times a day on average in the 2012 presidential election. However, there have been concerns about SNS being used to manipulate public opinion, and most politicians used SNS only as a means of one-way PR rather than as a means of two-way communication, so there is concern that this will turn out to be a fad.
Influence of SNS on elections
06
Top 10 Internet News
If the controversy over network neutrality between mobile carriers and content providers started in earnest in 2011, with concerns expanded to include platform neutrality and de-vice neutrality in 2012. Platform neutrality means that companies with smartphone plat-forms like Apple, Google, MS and Samsung Electronics should not take advantage of their
superior position to discriminate against other hardware and content providers. If neutrality is damaged, it may lead to unfair competition between companies and infringement of con-
sumers’ right of choice.In particular, with the mobile platform market primarily divided into the Google Android camp vs.
the Apple iOS camp, with Microsoft’s Windows claiming a small but growing fraction, Samsung Electronics decided to join the fray with its own OS called Tizen, making competition in this field tougher than any other. According to Matrix, a market researcher, Google’s Android OS accounted for 88.7% of the Korean market in 2012, up 6.2% over the previous year. The problem is that Google is asking that its search service be used preferentially with profits distributed in a way favorable to them. Apple also has issues such as not approving apps running counter to its service policy or intentionally delaying approval if they deem an app somehow not helping their ecosystem. Some say that pre-installing the applications of the mobile carriers or manufacturers on smartphones also hurts neutrality and limits the market freedom of businesses.
Mobile OS competition and platform neutrality
07
As the Park Geun-hye administration took office in 2013, one of the top policy agendas being implemented is the formation of a 'job-oriented creative economy'. The gist is to increase growth potential and create good jobs through convergence between industries and new and advanced technologies. To this end, the Government established the following strategies with a focus on three keywords, jobs, science and technology: creating the ecosystem for a creative economy, rein-forcing growth engines for job creation, making SMEs key players in the creative economy, devel-opment of science and technology through ingenuity and innovation, establishment of a disciplined market economic order, and operating the economy to support growth.Both private and public sectors are working hard to lay the foundation for startups, mutual prosperity and job creation. After the launch of the Global K-Startup program in April 2012, with its plan to foster tech firms in Korea, no fewer than 30 projects
deemed to have potential were selected through an initial idea contest of which 15 finalists received extensive support to startup and expand globally. With the launching of the new administration in 2013, this trend was further bolstered. D Camp, a startup center funded by venture investors, was soon established. Sam-sung Electronics invested KRW1.5 trillion to fund its Samsung Science & Technol-ogy Foundation. Kakao joined with the Small & Medium Business Administration and raised KRW 30 billion for its youth startup fund. Enterprises are now joining one after another.
Creation of ICT jobs through a win-win economy
08
| Internet News |
2013 Korea Internet White Paper
In April 2011 Apple filed a patent lawsuit against Samsung Electronics that ignited discus-sions throughout the global IT industry about what soon became a patent war that spread to more than twenty countries and involved several companies. The patent lawsuit between Apple and Samsung Electronics proved just how important seizing the initiative in the mo-
bile market is. Apple initially filed a slew of patent lawsuits against Samsung Electronics relating mostly to
design dress concerning UI features and even the shape of the exterior of its devices (iPhones and iPads). Samsung retaliated by filing countersuits arguing that Apple infringed on its 3G-related
wireless communication patents. Courts in the US, Germany and Holland sided with Apple, whereas courts in the Japan, Korea and the UK decided in Samsung Electronics’ favor. And everything is still topsy-turvy. As recently as June 2013, the US ITC decided that Apple violated Samsung Electronics’ patents and declared a ban on imports of some Apple products made in China into the US. But President Obama vetoed the ban in October.To make matters worse, Samsung Electronics and LG Electronics began arguing in March 2013 over the infringement of iris recognition patent technology. And Google and Microsoft are still involved in 5 patent lawsuits initiated in 2010 related to the X-Box.
Patent wars among IT giants
09
The market for wearable devices is currently divided into glasses as exemplified by Google Glass, and watches, which Apple, Microsoft, Samsung and LG have all indicated they would launch. Sensors for shoes (i.e. pedometers) and healthcare devices (i.e. heart rate monitors) are other categories in which all the major players (Apple, Google, Garmin, Samsung) including sports ap-parel companies (like Nike) are keenly interested in. With the launch of some devices, a variety of useful apps are being released, and as the supplier ecosystem is being created, new market op-portunities are opening up.According to market research firm Juniper, the wearable computing market, which was worth about USD 800 million in 2012, is expected to grow by nearly twice to USD 1.5 billion in 2014. In particular, Bluetooth (v4.0) near field com-munication technology is now going beyond cell phones to be equipped in everyday devices like toothbrushes and shoes.
The number of devices with built-in Bluetooth functions is expected to increase to 27 billion in 5 years. And the age of the Internet of Things will soon arrive. The advance of home appliance manufacturers into the smart consumer electronics market is also gaining traction. In November 2012, for example, Samsung Electronics announced its plan to connect its line of refrigerators, washing machines and TVs to their smartphones and tablet PCs, so soon they will all be controllable from anywhere and at anytime. LG Electronics has also released a line of smart washing machines equipped with NFC technology.
Growth of smart home appliances and wearable devices
10
Top 10 Internet News
1. Mobile Internet 20
2. New Internet Industry 22
3. Creative Economy and the Internet 24
1. Internet Infrastructure 28
2. Internet Resources 35
3. Internet Technology 38
1. Internet Services 46
2. Internet Businesses 54
3. Internet Convergence Services 59
4. Internet Services in the Public Sector 63
5. Internet and Society 68
1. Internet Industry and Usage 70
2. Promotion of the Internet 77
3. Internet Related Laws 88
4. International Cooperation 91
List of ISPs 96
Abbreviations 100
CONTENTSCONTENTS
20 / Special Report
1. Mobile Internet
Since the introduction of smartphones the focus of the mobile communication market has
quickly shifted from voice communication to Internet access with data traffic growing ex-
ponentially worldwide. In the domestic mobile communication market, smartphones were in-
troduced in the second half of 2009 and the focus of the market quickly changed to the mo-
bile Internet in 2010 when unlimited data rate plans were released.
To efficiently accommodate the exponential growth of data traffic and identify new business
models, mobile carriers are now building out 4G LTE (Long Term Evolution) networks. In Korea,
LTE was first launched in July 2011 and became so popular that by May of 2013 58% of all
smartphone subscribers were using LTE. Domestic carriers have been concentrating on cover-
age expansion of their LTE services.
Carriers also introduced multicarrier technology in 2012 which greatly helped improve aver-
age throughput in congested areas. Multicarrier is a technology that allows for switching to
another frequency when a signal cannot be allocated from a base station due to congestion.
In 2013 the hottest topic of LTE technology was LTE-Advanced. According to the 3GPP
REL.10 standard confirmed in June 2011, this technology increases throughput to a max. of
300Mbps. In relation to LTE-A, CA (Carrier Aggregation) technology has been in the limelight.
Recently efforts have been made in Korea to commercialize CA, which is seen as an essential
technology for LTE-A as it aggregates spectrum. LTE can provide 150Mbps throughput but re-
quires up to 20MHz of spectrum to achieve this. Most carriers around the world do not have
a 20MHz band in a continuous frequency band. To address this weakness, CA binds non-con-
tinuous frequency bands to put two carriers together to provide better service for the end-user.
In addition to CA, UL (Uplink)-MIMO technology is also being considered as it makes it possi-
ble to use two antennas to transmit data from the terminal to the base station to improve
throughput.
In July 2011, Korea became the 17th country in the world to provide commercial LTE service,
with SK Telecom and LG U+ launching services in Seoul first then quickly expanding to sur-
rounding areas. In January 2012 when PCS 2G service was terminated, KT launched its LTE
service in Seoul. At first network coverage was small and the number of LTE handsets was few,
so growth of the service was somewhat slow. But as LTE smartphones were rolled out in
Special Report /21
October 2011, it began to grow rapidly so that now the number of LTE subscribers is increas-
ing at the fastest pace in the world.
In December 2011, 5 months after the first launch of LTE service, the number of LTE sub-
scribers rose to 1.19 million and 3 million in March 2012, and exceeded 10 million in August
2012. In December 2012, LTE subscribers accounted for almost half of all smartphone sub-
scribers, i.e. 15.81 million. The number of LTE subscribers increased by over 10 times in just
one year and it continues to increase sharply, accounting for 30% of all mobile communication
subscribers.
Consumer preference for fast speed lead mobile carriers to aggressively build out their na-
tional LTE networks. This together with the government’s promotion policy has combined to
see Korea build an LTE-based broadband wireless Internet that is currently the fastest in the
world. In the first half of 2012, the national LTE network was also installed in major rural
communities, and LTE coverage was extended to major islands and offshore areas. By April
2013, the number of LTE subscribers exceeded 20 million, and is expected to exceed 30 mil-
lion by the end of 2013.
【Figure Special Report 1-1 】No. of LTE subscribers (Unit : 10,000 persons)
MSIP, wired and wireless communication service subscribers statistics, 2013
22 / Special Report
2. New Internet Industry
The ‘new Internet industry’ is defined as the infrastructure technology that can help imple-
ment ideas wisely by leveraging big data and convergence with various industries (Internet of
Things) in a customized manner (Future Internet) and inexpensively through cloud services.
【Figure Special Report 2-1 】Scope of the new Internet industry
MSIP, New Internet industry development plan, 2013
The global Internet of Things market is forecast to grow from KRW 27 trillion in 2011 to
KRW 47 trillion in 2015, and the domestic market is expected to grow from KRW 414.7 billion
in 2011 to KRW 1,347.4 billion in 2015.
【Table Special Report 2-1 】Global and domestic Internet of Things market forecast
Classification 2011 2012 2013 2014 2015 CAGR
Global market(KRW1 trillion)
26.8 29.2 35.6 42.5 47.0 11.9%
Domestic market(KRW100 million)
4,147 5,674 7,201 10,338 13,474 26.6%
※ CAGR : Compound Annual Growth Rate MSIP, New Internet industry development plan, 2013
Special Report /23
As the center of ICT mega trends, - such as smart devices, ‘big data’ and social media -
cloud computing is unquestionably the driving force behind the evolution of ICT. Enterprises
are increasing their use of cloud services to more efficiently utilize their IT resources.
Enterprises are increasingly finding it more productive and convenient to connect to and utilize
ICT resources in the cloud when needed instead of owning them. This naturally promotes in-
novation in the way we work as it is now possible to use smartphones and tablet PCs regard-
less of time or location. The global cloud computing market is forecast to grow from KRW 34
trillion in 2011 to KRW 92 trillion in 2015, and the domestic market is expected to grow from
KRW 160.4 billion in 2011 to KRW 735.7 billion in 2015.
‘Big data’ is also emerging as a new paradigm that can change the foundation of manage-
ment as it will not only improve productivity and competitiveness, but also find new business
opportunities. In the smart age as IT becomes an integral part of our daily lives, our social ac-
tivities, things, ‘life-log’ and personal data will all be combined seemingly seamlessly, thus the
influence of big data will only increase. Current forecasts see the global big data market grow-
ing from KRW 55 trillion in 2011 to KRW 194 trillion in 2015, while the domestic market is ex-
pected to increase from KRW 90.4 billion in 2011 to KRW 301.8 billion in 2015.
The Internet is not simply changing the lives of individuals, but also fostering a wide range
of influences on the entire nation as a basic infrastructure of the industry. Especially, 10 years
after the high-speed Internet revolution of the 2000’s, the wired communication network has
proven to be a powerful engine for national competitiveness and job creation. The global
Internet market is forecast to grow from KRW 2,190 trillion in 2012 to KRW 2,431 trillion in
2016, whereas the domestic market is expected to grow from KRW 37.7 trillion in 2012 to
KRW 45.35 trillion in 2016. The ‘Future Internet ’ is forecast to evolve from being a hard-
ware-oriented infrastructure to one centered on software as a result of the appearance of new
technologies like the SDN (Software Defined Network), which controls the network flexibly and
efficiently via software, and NFV (Network Function Virtualization).
24 / Special Report
Strategy Tasks
Creating an ecosystem where creativity is fairly compensated for and in which it is easy to
launch a new businessCommercial
Increasing investments in creative ideas and technologies
Creating conditions for easily launching a new business
Turning ideas and technologies into intellectual properties and promoting their protection and utilization
Initiating catalysts for commercializing creative assets
Building a startup safety net for providing a second chance
Making venture firms andSMEs leaders in the creative
economy and reinforcingglobal expansion
Laying the foundation for the growth of venture firms and SMEs
Helping venture firms and SMEs explore global markets
Promoting win-win cooperation between large corporations and SMEs
Resolving problems of venture firms and SMEs, e.g. manpower shortages
Building growth engines to create new industries and
new markets
Building new growth engines for existing industries by combining science and technology with ICT
Fostering new SW and Internet-based industries and high-value-added content industries
Creating new markets based on people-oriented technological innovations
Exploring new markets by finding and fostering promising new industries of the future
Promoting industrial convergence and market creation by rationalizing regulations
3. Creative Economy and the Internet
The government has defined the creative economy as ‘a new economic strategy for creating
good jobs by combining the imagination and creativity of citizens with science, technology and
ICT to create new industries and markets, and strengthening existing ones’.
In June 2013, the Korean government announced its ‘creative economy realization plan’,
which consists of 6 strategies and 24 tasks for realizing three key goals : creation of new jobs
and markets, strengthening the global leadership of the creative economy, and realizing a so-
ciety where creativity is valued and fully utilized.
【Table Special Report 3-1 】6 strategies for fostering a creative economy and tasks
Special Report /25
Fostering global-minded creative manpower with
dreams, talent and entrepreneurship
Fostering more convergence-oriented creative manpower
Expanding education for promoting entrepreneurship
Helping creative manpower go overseas then return to Korea
Reinforcing science, technology and ICT innovation competency, the foundation of the creative
economy
Improving the R&D system to reinforce potential and businesses
Reinforcing ICT innovation competency to accelerate the creative economy
Reinforcing industry-academia-research institutes-regional cooperation with a focus on job creation
Reinforcing the role of science, technology and ICT in solving global problems
Promoting a creative economy culture shared by citizens and
the government
Promoting a creative culture enabling creativity and imagination to be manifested
Convergence between public resources and ideas of citizens through government 3.0
Innovating how the government works to realize a creative economy
MSIP, et al., creative economy realization plan, 2013
Recognizing the limits of its catch-up strategy of the past 40 years, Korea has announced
that it would switch to the economic model of advanced countries like the US, the UK and EU
for creating markets and jobs. If this creative economy is compared to the existing creative
economy, the inputs (i.e. creativity and imagination) and the policy goals (i.e. revitalization of
the economy and job creation) are similar, but specific means and directions are a bit different.
If the means of the existing creative economy are the arts or culture industry and their con-
vergence with ICT, the new means of the Park Geun-hye administration’s creative economy are
utilization of science, technology and ICT, which are our strengths, and inter-industrial con-
vergence and convergence between industry and culture. Also, the government is emphasizing a
‘startup economy’ based on the Israeli-style investment system, as represented by the Yozma
fund.
Looking at the examples of the creative economy presented recently by the government, it is
a concept that encompasses the platform economy, the app economy, the startup economy,
the experience economy, the service economy, the digital economy and the knowledge
economy. One thing we should keep in mind regarding the fostering of new industries for job
creation is that an important feature of the Park Geun-hye administration’s creative economy
policy includes ‘convergence creation’, which is understood as the combining of various kinds
of knowledge and assets that Korea has accumulated to create new values.
Recently Japan’s Nomura Research Institute (which was the first to mention the ‘creative in-
dustry’ in 1990) presented its current vision of a creative society as being an advanced in-
26 / Special Report
dustrialized society that accommodates computers and network-based information, develops
them in a harmonious way, and is powered by revolutionary energy sources. Creation in the
creative economy is seen as a process that creates new values by looking to the past and con-
necting to the future, in other words, the past and future will not be disconnected.
Looking at the differences among the components of the existing creative economy, the crea-
tive class includes not only general experts, but also all components of the state, such as in-
dividual citizens, enterprises, government and civil society, and accordingly, the scope of spa-
tial policy has been extended from cities to the state, and the core areas were expanded from
culture and art to science and technology. Furthermore, unlike existing countries where the
creative industry is fostered as one of several growth engines, the scope of the creative in-
dustry includes all growth engines and industries with the aim of creating new industries and
jobs based on convergence among science, technology and ICT, inter-industrial convergence,
and convergence between industry and culture. In particular, unlike the UK and Japan, the
agency in charge in Korea is the MSIP, which emphasizes a contents-oriented creative industry
and ICT convergence. From the viewpoint of the expansion or evolution of the existing creative
economy, the government is emphasizing an ecosystem-centered creative economy, e.g. start-
ups and venture firms, cooperative enterprises, intellectual properties, knowledge buildup/ex-
pansion, Internet and ICT, and formation and promotion of the ecosystem for creating new
businesses.
In accordance with the creative economy strategy laid out in June of 2013, the shape of the
creative economy will be materialized by the 60 or so follow-up measures to be announced by
the end of 2013 and amendment of over 40 laws. Most importantly, however, the success of
the creative economy depends on its sustainability, and its need to fit the realities of Korea.
Also, efforts must be made to explore areas of science as yet not ventured into, and discover
and foster new technologies and creative industries to be the first movers in the global
market.
Part 1. Infrastructure /27
Part 1. Infrastructure
1. Internet Infrastructure
2. Internet Resources
3. Internet Technology
28 / Part 1. Infrastructure
1. Internet Infrastructure
A. Backbone Networks
1) IX (Internet eXchange)
These days the Internet is used as a medium for distributing vast amounts of information
and connecting diverse users. To achieve this there must be direct and indirect connection
among ISP’s that provide connection services. As Internet use has increased, many ISP’s have
come into being, and if there are many ISP’s, excessive line costs are incurred and too many
lines will increase investment costs and traffic. To ensure efficient networking, the IX (Internet
eXchange) has appeared.
The IX is an Internet interworking service for efficient traffic communication between ISPs.
For the purpose of connecting ISPs, each provider (ISP, etc.) interfaces its lines to major IX
NOCs (Network Operations Center) so that line costs are lowered and network paths provided.
Looking at the IX operations in Korea :
∙ the KTIX is connected to 18 ISPs and 2 IXs (total connection capacity approx. 1,804Gbps),
∙ the DIX is connected to 30 ISPs and 2 IXs (total connection capacity approx. 1,500Gbps),
∙ the SKBIX is connected to 12 ISPs and 3 IXs (total connection capacity approx. 1,795Gbps),
∙ the KINX is connected to 15 ISPs and one IX (total connection capacity approx. 371Gbps), and
∙ the 6NGIX, which operates on a nonprofit basis for IPv6-based traffic exchange, is con-
nected to 5 ISPs (total connection capacity approx. 4Gbps).
【Table 1-1-1 】Connections by IX (as of April 2013) (Unit : ea., Gbps)
Classification IX Operating agency No. of connected ISPs Total connection capacity
Commercial
KTIX KT 18 1,804
DIX LG U+ 30 1,500
KINX KINX 15 371
SKBIX SK Broadband 12 1,795
Nonprofit 6NGIX KISA 5 4
KISA
Part 1. Infrastructure /29
2) Commercial Internet Networks
A total of 119 Korean Internet commercial services, including Kornet (KT), Boranet (LG U+),
B-Net (SK Broadband), Sejongnet (Sejong Telecom) and Dreammax (Dreamline), receive IP ad-
dresses from KISA, and provide services such as leased lines and high-speed connectivity for
institutions and individuals using the Internet.
KORNET is a domestic infrastructure network for Internet connection. This high-speed in-
formation network is short for the ‘KORea-telecom-interNET’. From June 1994 until now,
KORNET has installed 2.5G~10Gbps high-speed networks in 90 or so locations across the
country, and built 20 or so international lines including the 140Gbps line connecting with the
US and provided service.
BORANET is the Internet communication network of LG U+. It launched a service to lease
Internet lines for enterprises in October 1994, and then extended the service to home users.
It also provides high-speed Internet customers with triple play service, i.e. voice, Internet and
broadcasting.
B-Net is the Internet network of SK Broadband. It launched commercial service in April 1999,
introduced Korea’s first IPTV service (Btv) in July 2006, and then released the first TPS product
in Korea (B Set) in January 2007. Currently 130 or so nodes are accommodating subscriber
section traffic around the country, and B-Net is connected to numerous foreign and major
Korean service providers to provide high-quality Internet service.
There is currently a total of 8 domestic submarine cable relay stations in Korea (Busan,
Geoje, Taean, Jeju, Goheung, Namhae, Hosan and Ulleung) and a total of 9 international sub-
marine cables. The total capacity of the entire network is about 27Tbps.
【Table 1-1-2 】Domestic and overseas submarine cables (Unit : bps, km)
Classification Cable name Construction sectionSystem capacity
DistanceYear
opened
Global
FEA13 countries including Korea - Japan - Hong Kong -
Middle East - Europe5G×2 29,000 1997
SMW- 335 countries including Korea - Northeast Asia -
Southeast Asia - Middle East - Europe160G 39,000 1999
CUCN Korea - US - China - Japan - Taiwan - Guam 20G×4 30,000 2000
APCN2Korea - Japan - China - Hong Kong - Taiwan -
Singapore - Malaysia5.2T 19,000 2001
KJCN Korea - Japan 2.88T 500 2002
30 / Part 1. Infrastructure
EAC Korea - Japan - Taiwan - Hong Kong 2.56T 10,600 2001
C2CKorea - Japan - Taiwan - China - Hong Kong -
Taiwan - Singapore - Malaysia7.68T 17,000 2002
FNAL Korea - Japan - Taiwan - Hong Kong 2.4/3.8T 9,600 2002
TPE Korea - China - Taiwan - US 2.56T 18,000 2008
Korea
Ulleung - Land Ulleung - Hosan 2.5G 159 1993
2 Jeju - Land Jeju - Goheung 2.5G×4 191 1996
3 Jeju - Land Jeju - Namhae 2.5G×2 236 2000
KT, International submarine optical cables, 2013
Korea also operates a fleet of geostationary satellites : Mugunghwa Satellite No. 5,
Mugunghwa Satellite No. 6, Condosat Nos. 1 and 2 (ktsat), which are used for communication
and broadcasting, MBSAT for DMB broadcasting (SK Telecom), and the Communication, Ocean
& Meteorogical Satellite (COMS). Korea also has low earth orbit satellites : Arirang Nos. 2 and
3 for observation. Earth stations are located in Seoul, Yongin, Geumsan, Boeun, Asan and
Yeoju, and satellite control centers are in Yongin and Daejeon. These earth stations aim at
such satellites as INTELSAT, INMARSAT, Asiasat, SES, JSAT, Apstar, etc.
【Table 1-1-3 】Domestic Mugunghwa satellites (KOREASAT)
Classification Mugunghwa #3 Mugunghwa #5 Mugunghwa #6 Condosat-1 Condosat-2
Orbit (Tokyo) 116° 113° 116° 75° 75°
Date launched 1999. 9. 5 2006. 8. 22 2010. 12. 30 1999. 9. 26 2013e
Launched by Ariane Sea Launch ArianeInternational
Launch ServiceAriane
Frequency band Ku/Ka Ku Ku C C, Ku
Polarization(for communication)
dual polarization dual polarization dual polarization dual polarization dual polarization
Beam coverage Korean peninsula
Korean peninsula, Japan, the
Philippines, Taiwan, Eastern China
Korean peninsulaAsia/Middle East/Africa
Asia/Australia
※ e : estimated KT, domestic satellite operations, 2013
※ Ku/Ka band : frequency band of the microwave used for satellite communication and satellite broadcasting
(Ku band : 12~18GHz or 10~18GHz, Ka band : 27~40GHz or 20~30GHz)
※ Dual polarization : uses both vertical and horizontal polarization of the electromagnetic wave
Part 1. Infrastructure /31
B. Subscriber Networks
1) Fixed Line Networks
Korea completed its government-led BcN project in 2010, six years after it commenced in
2004. The number of BcN subscribers using a connection faster than 50Mbps now exceeds
14.82 million, over achieving the original goal of 12 million by more than 20%. The BcN proj-
ect has enabled practically all cities, towns and rural communities to use 50M~100Mbps FTTH
and HFC-based broadband Internet services. For small farming and fishing villages with fewer
than 50 households, for which access to broadband Internet service was not commercially
practical, the farming and fishing village broadband subscriber network promotion project has
been operated since 2010. The FTTH-based broadband networks were implemented for about
38% (5,002) of 13,217 villages in total by December 2012. Also, the Giga Internet project,
which was launched in 2009, will offer the Giga Internet which is10 times faster than BcN, of-
fering speeds between 100Mbps and 1Gbps.
Aiming at more than 90% of Giga coverage across the country by 2017, Korea is now devel-
oping and demonstrating technologies for enhancing next-generation subscriber networks, such
as Giga Wi-Fi, 10GE-PON and the RF Overlay-based Giga Internet.
【Table 1-1-4 】Giga Internet implementation goals by year (Unit : %)
Year Early 2013 2013 2014 2015 2016 2017
Giga Internet penetration ratio
10.4(for 84 cities)
15.0 25.0 40.0 60.0 90.0
※ Number of households that can use Giga Internet : National Information Society Agency, Giga Internet enhancement stratege, 2013
The number of households that have facilities like the office equipment and
lines necessary for provision of Giga Internet service and can be serviced if applied for
※ Percentage of implemented (%) : Number of households that can use Giga Internet / total number of households
2) Wireless Networks
As smartphones and tablet PCs have become common place, it has become routine to con-
nect to the Internet from anywhere and at any and all times. To handle excessive traffic in
WMAN networks like WCDMA or LTE, domestic mobile carriers are actively installing Wi-Fi APs
(Access Point). To date, the three mobile carriers in Korea have installed more than 400,000
32 / Part 1. Infrastructure
APs, and general users are increasingly installing Wi-Fi APs in their homes or offices to reduce
costs and ensure faster connection. According to a March 2013 study released by IDC, Wi-Fi
services of global carriers are forecast to record about USD 4.2 trillion of sales in 2013.
As APs have proliferated, more than necessary were installed in some areas causing signal
interference and deteriorating transmission speed. To address this, starting in 2012, the gov-
ernment has been inducing the three major domestic carriers to jointly install APs in public
places so that more than 2,000 APs have been installed across the country, and by the end of
2013 an additional 2,000 APs will be installed in heavy traffic areas and inner city areas
around the country so that the public can have better access to the Internet.
In March 2013, KT and SK Telecom commercialized Gbps Wi-Fi service utilizing IEEE
802.11ac systems. As there currently are not many terminals with the IEEE 802.11ac chipset,
and APs are installed in a limited number of places, the actual usage rate is not very high. But
as the number of smartphones and tablet PCs supporting IEEE 802.11ac will surely increase
over time so will the number of APs expand in tandem.
Traffic per LTE subscriber in Korea is 1.6 times that of WCDMA subscribers, and data traffic
is increasing rapidly as the number of LTE subscribers is increasing sharply. So expansion of
the LTE bandwidth is being actively discussed. Unlike 3G, LTE transmission speed will improve
proportionally as bandwidth is increased. In other words, if the current 10MHz width of LTE is
increased to 20MHz or more, the transmission speed of LTE will be doubled. The government
finished auctioning the LTE spectrum in the 1.8GHz and 2.6GHz band in August 2013, but
when and how to allocate the spectrum adjacent to the 1.8GHz band owned by KT has become
a heated issue. KT wants to put this band up for auction and convert the 20MHz band into LTE
broadband, whereas SK Telecom and LG U+ are asking that the allocation be postponed so
that the three mobile carriers can start with LTE broadband.
As the use of multiple devices per person and M2M is firmly established, and demand for IP
addresses increases, KISA is trying to make IPv6 service available for LTE and Wi-Fi. This proj-
ect started in July 2012 with KISA and SK Telecom bearing the expenses. The IPv6 infra-
structure will be implemented on the wireless network of SK Telecom, and various kinds of
verification will be conducted to avert problems likely to happen when IPv6 is applied. This
project is also expected to greatly invigorate IPv6-based mobile services in the future.
Part 1. Infrastructure /33
C. Research Networks
1) Domestic Networks
As of June 2013, KOREN’s backbone has been providing 10G~60Gbps backbone lines among
6 nodes (including Gwangju~Jeju 1G) and 60 or so 1G~10Gbps subscriber lines. The backbone
transmission network consists of a single backbone network based on domestically produced
intelligent transmission equipment, the ROADM (Reconfigurable Optical Add-Drop Multiplexer).
The entire nation is segmented into three ‘multi-rings’ (the metropolitan ring, the Yeongnam
ring, and the Honam ring). If a problem occurs in the transmission network, the signal will au-
tomatically detour to another redundant route to prevent service interruption.
To make the research network more useful to future network research projects, e.g. DCN
(Dynamic Circuit Network) and open flow, mesh topology was added to the Daejeon-centered
star lamda (λ) test network. Optical cables were connected so that direct connection can be
made to each node without going through the Daejeon ROADM, and the viability of the research
and test network was improved. The test network was also improved for easier direct connection.
In 2012, KREONET built and successfully operated its 100Gbps high-performance infra-
structure, and designed a high-bandwidth advanced research service network, to which future
research network technology can be applied for advanced research and applications in the
metropolitan areas. With this infrastructure, KREONET will provide various researchers with fu-
ture network technology by 2015 that can link science and technology facilities, super-
computers and e-Science application resources around the country in an optimized way.
KREONET is also building and developing an advanced collaborative environment based on the
research network so that domestic and overseas researchers can more efficiently conduct
large-scale joint science and technology projects.
2) International Networks
TEIN (Trans Eurasia Information Network) is an ASEM (Asia Europe Meeting) cooperative proj-
ect to promote international joint ICT research between Asia and Europe. It is an international
research and test network connecting Asia and Europe. Currently, the 4th TEIN project is in
progress. The EC (European Commission) has established an Asia-centered TEIN management
institute for maintaining and managing long-term sustainable TEIN projects during the TEIN-4
period (January 2012~December 2015) and the establishment of the TEIN cooperation center at
34 / Part 1. Infrastructure
the 8th ASEM summit held in Belgium in October 2010. The TEIN Cooperation Center has been
fully operational since 2012 with financial support from the EU and participating countries.
The APII (Asia-Pacific Information Infrastructure) testbed is an APEC (Asia Pacific Economy
Cooperation) project established for co-prosperity of the Asia-Pacific region. In 1998 the
Korea-Japan testbed was started with lines connecting China, Japan, Singapore and the US.
Currently, a 10Gbps line is being operated between Korea and Japan, which is used for tele-
medicine, joint lectures, network monitoring, and future network-related studies.
GLORIAD is a high-speed global network that makes it possible to conduct studies by han-
dling various advanced application collaborative research and transmitting large amounts of
data generated from research systems and gigantic scientific experiments. It is a key compo-
nent of the US NSF International Research Network Connections (IRNC). 14 countries, including
Korea and the US, are linking their national research networks with the aim of supporting in-
ternational collaborative research in science, technology and education. As a core member of
GLORIAD, the Korea Institute of Science and Technology Information has been operating the
Korea-US and Korea-China international research networks with the support of the Ministry of
Education since 2005 with the aim of supporting global science and technology research
collaboration. Participants in GLORIAD are Canada, China, Denmark, Egypt, Finland, Holland,
Iceland, India, Korea, Norway, Russia, Singapore, Sweden and the US.
【Figure 1-1-1 】GLORIAD configuration and interworking
GLORIAD, www.gloriad.org
Part 1. Infrastructure /35
2. Internet Resources
A. IP Addresses and AS Numbers
Korea has been making efforts to stably secure IP addresses and AS numbers. As of the end
of April 2013, Korea has 112,261,632 IPv4 addresses, No. 6 in the world, and 5,231 IPv6 ad-
dresses (/32, 296), No. 8 in the world. Korea has 1,016 AS numbers making it No. 11 in the
world.
【Table 1-2-1 】Domestic and overseas Internet address resources (as of April 30, 2013)
IPv4 addresses by country IPv6 addresses by country As numbers by country
Rank Country Count Rank Country Count(/32) Rank Country Count
1 US 1,567,909,248 1 US 27,377 1 US 22,295
2 China 330,188,032 2 China 14,597 2 Russia 4,911
3 Japan 202,074,624 3 Germany 11,477 3 Ukraine 2,082
4 UK 124,069,520 4 Japan 11,238 4 Brazil 1,998
5 Germany 119,605,096 5 France 9,080 5 UK 1,904
6 Korea 112,261,632 6 Australia 8,614 6 Poland 1,834
7 France 95,823,632 7 EU 6,197 7 Germany 1,672
8 Canada 80,466,176 8 Korea 5,231 8 Canada 1,615
9 Brazil 58,245,888 9 Italy 5,104 9 Rumania 1,507
10 Italy 53,129,120 10 Argentina 4,253 10 Australia 1,467
11 Australia 47,824,640 11 Egypt 4,106 11 Korea 1,016
12 Russia 45,594,144 12 UK 2,501 12 Japan 998
13 Holland 45,407,744 13 Poland 2,471 13 France 964
KISA
36 / Part 1. Infrastructure
Rank Country Domain No. of registration Rank Country Domain No. of registration
1 Germany .de 15,347,959 16 Austria .at 1,197,314
2 UK .uk 10,153,840 17 Korea .kr 1,094,431
3 Holland .nl 5,155,652 18 Czech .cz 1,020,968
4 Australia .au 2,529,873 19 Hungary .hu 625,797
5 Italy .it 2,509,201 20 Norway .no 572,660
6 France .fr 2,537,351 21 Mexico .mx 631,143
B. Domains
There are two kinds of top national domains in Korea : ‘.kr’ and ‘.한국’. The ‘.kr’ domain was
launched as a three-tier system such as ‘abc.co.kr’ when introduced in 1986. The two-level
‘Korean alphabet.kr’ system was introduced in 2003, and the two-level English system, e.g.
‘abc.kr’, was introduced in 2006. By the end of December 2012, a total of 1,094,431 ad-
dresses had been registered in the ‘.kr’ domain.
Meanwhile, according to the demand of non-English speaking countries that want to use
their own languages for a domain, ICANN (Internet Corporation for Assigned Names and
Numbers), which establishes the global policy for the world’s Internet addresses, finalized its
plan in October 2009 to introduce multi-language top national domains. In response, the KCC
decided to use the Korean characters of ‘.한국’ for the top national domain. In February 2011,
ICANN delegated KISA as the authority responsible for managing the ‘.한국’ domain, and regis-
tration for ‘.한국’ domain names commenced on May 25, 2011.
To smoothly introduce the ‘.한국’ domain and prevent any confusion or conflicts likely to oc-
cur in the early stages, KISA handled the assignment of domain names in three pre-launch
stages. First instituted was a registration period during which government and public in-
stitutions were given the opportunity to register domain names first, then trademark holders
were added, followed by a lottery registration period during which registrants were given one
registration opportunity with those having identical requests being determined by lottery. The
pre-launch registration period started on October 6, 2011 and lasted 19 weeks. After the do-
main was launched, as with the ‘.kr’ domain, domain names have been registered on a first-
come-first-serve basis.
【Table 1-2-2 】National domain names registered by OECD member countries (as of Q4 2012)
Part 1. Infrastructure /37
7 Poland .pl 2,409,039 22 New Zealand .nz 517,037
8 Canada .ca 2,026,372 23 Turkey .tr 322,602
9 USA .us 1,790,879 24 Finland .fi 311,312
10 Switzerland .ch 1,752,794 25 Greece .gr 300,000
11 Spain .es 1,623,754 26 Slovakia .sk 304,611
12 Belgium .be 1,356,732 27 Portugal .pt 235,699
13 Japan .jp 1,321,621 28 Ireland .ie 182,002
14 Sweden .se 1,277,816 29 Luxembourg .lu 73,027
15 Denmark .dk 1,213,717 30 Iceland .is 41,967
※ Greek data as of December 2009 KISA
38 / Part 1. Infrastructure
3. Internet Technology
A. Technology Trends
5G refers to the fifth generation mobile communication technology evolution which is currently
under development. It refers to the move to go beyond the widely used 4G/IMT-Advanced standard.
Currently discussions on 5G-related international standardization are in the initial stage. In
January 2013, the UN International Telecommunication Union (ITU) started to discuss the vision
for 5G and dedicated spectrum for its implementation together with delegations of numerous
countries. Proposals for specific technical standards will be received during 2016, and efforts
are now being made to take the initiative at all levels.
The MSIP formed a 5G Forum involving industry, academia, research institutes and govern-
ment agencies on May 30, 2013 to take the initiative for shaping the global 5G market. The
MSIP is planning to establish its vision and technological innovation strategy for 5G service
through the 5G forum, and conduct R&D and standardization activities with regard to core 5G
technologies both at home and abroad. The forum consists of the Chairman Group, composed
of 9 institutions, including the Electronics and Telecommunications Research Institute, SK Telecom,
KT, LG U+, Samsung Electronics, LG Electronics, LG-Ericsson, KMW and DIO Interactive, an
Advisory Committee, a Steering Committee and four subcommittees (service, technology, spec-
trum and external cooperation).
Countries around the world are accelerating their efforts to develop and standardize 5G
technologies. In February (2013) China organized its government-led ‘IMT-2020 (5G) promotion
group’ for 5G research, while the European Commission decided to invest EUR 50 million this
year alone with the aim of commercializing the service by 2020. The UK is scheduled to invest
EUR 35 million to complete a ‘5G innovation center’ by 2015 where it will develop low-power
5G technology. As for Japan, NTT DOCOMO’s R&D Center is developing advanced 5G standard
technologies.
Part 1. Infrastructure /39
B. Standardization Trends
Internet standardization in Korea is mainly implemented by the TTA (Telecommunication
Technology Association) and IT standardization strategy forums. Internet-related IT standardization
strategy forums include the Future Internet Forum, the VoIP Forum, the Korea Ethernet Forum,
the Mobile Web Forum, the IPTV Forum Korea and the FN2020 Forum.
【Table 1-3-1】Key activities of the Internet-related IT standardization strategy forum
Name Key activities Website
Future Internet Forum
∙ Research on the standardization technologies regarding Future Internet in areas, such as Future Internet infrastructure, services, wireless, test-bed and policy areas
∙ Differentiation of standardization technologies through cooperation with TTA Future Internet Project Group (PG220) and expansion of the scope of activities and participating manpower
∙ International standardization activities (ISO, ITU-T, IETF/IRTF) related to the Future Internet
www.fif.kr
VoIP Forum∙ Standardization of connections to VoIP/MoIP service providers, such as
Internet phones and videophones∙ Activities related to ITU-T international standardization
www.voip-forum.or.kr
Korea Ethernet Forum
∙ IEEE 802’s role as the Mirror Forum in Korea - 802.3-based wired LAN/MAN3, 802.11-based wireless LAN/MAN11,
802.1 internetworking, and activities related to international stand-ardization, e.g. joint responses to/proposal of/reflection of the con-tributions of research organizations like the ITU-T and IETF
www.ethernet.or.kr
Mobile Web Forum
∙ Mobile OK-based mobile web standardization ∙ W3C mobile web international standardization ∙ Pilot service of mobile OK∙ Research on policies and technologies related to social network services
-
IPTV Forum Korea∙ Standardization of IPTV service and requirements∙ Activities related to ITU-T international standardization
www.iptvforum.or.kr
FN2020 Forum
∙ Presenting the development direction and evolution vision of the Future Network
∙ Identifying and presenting next-generation ultra-wide band network services and business models
∙ ITU-T, JTC1, 3GPP international standardization activities
www.fn2020.or.kr
KISA
40 / Part 1. Infrastructure
C. Future Internet
The cooperation among industry, academia, research institutes and the Korean government
to enhance its image as an Internet power stands out. In various future Internet-related fo-
rums, academia, research institutes and industries are actively conducting research and en-
gaged in discussions. Particularly the KCC established its ‘Internet development plan for the
future’ in June 2011, and proposed five global future Internet tasks to be carried out by 2015.
In particular, in the smart network implementation plan, the optical wired and wireless net-
works will be expanded and redesigned for faster transmission of contents. Also, for research
on market-oriented technologies, an institute consortium of industry, academia and research
will be formed, and for global competitiveness, an open research system will also be
established. Additionally, to proactively respond to future Internet standardization efforts of
countries around the world, the standardization steps were defined specifically.
Furthermore, investments are actively being made in R&D to realize the future Internet. The
strategies include enhancing the wired and wireless networks to prepare for an explosion of
data traffic, and development of technologies necessary for fleet-type R&D and construction of
the KOREN-based smart Internet infrastructure. Various projects are underway such as the de-
velopment of SDN technology to reorganize the recent network market for early realization of
the future Internet and securing global leadership, development of the core technology for op-
tical transmission, and development of the wired and wireless equipment integrated control
and management system, and smart Internet technology.
Discussions for concrete pursuit of national master plans were also conducted. The MSIP
launched its ‘Future Internet Technology Business Council’ in April 2013 to develop future
Internet technology and lay a foundation for reinforcing the competitiveness of the industry.
Communication service providers, equipment manufacturers and academia are participating in
the council to foster a virtuous circle that will tie together future Internet R&D technology with
commercialization. This council is composed of industry, academic, research and government
experts, including the MSIP, KISA, the National Information Society Agency, the Korea
Communications Agency, and ETRI (Electronics and Telecommunications Research Institute)
Together they will conduct R&D and verification tests, and collect and exchange various opin-
ions on pilot projects and connection policies.
Part 1. Infrastructure /41
D. Cloud Computing
In May 2011, Korea reflected upon the rapidly changing market environment and announced
its ‘cloud computing diffusion and competitiveness enhancement strategy’. According to this
endeavor, Korea established three objectives and five initiatives with the aim of becoming a
global cloud power by 2015. Among the five initiatives, the former KCC is in charge of the
‘creation of a cloud-friendly legal environment’, whereas the MOPAS is in charge of the
‘advancement of IT in the public sector and preemptive introduction of cloud services’. Three
government agencies are cooperating with one another to conduct the remaining three ini-
tiatives, which are ‘reinforcement of the global competitiveness of the cloud industry and serv-
ices’, ‘development of a global IT hub and Cloud Data Center’ and ‘establishment of a solid
foundation for invigorating the market’. In December 2012, the former KCC established its
‘Cloud Data Center diffusion strategy’ to reinforce the competitiveness of the domestic IT
industry. In addition, the MSIP is in the process of enacting a law for promoting the use of
cloud services and creating an environment for the safe use thereof.
【Table 1-3-2 】Directions of the ‘Private cloud data center diffusion strategy’ and 9 initiatives
Direction 9 initiatives
Building and operation of the Cloud Data Center and overseas
expansion support
∙ Presenting the Cloud Data Center operating standards∙ Providing incentives for the building and conversion of the Cloud Data Center∙ Overseas expansion support
Laying the foundation for the diffusion of the Cloud Data Center
∙ Cloud Data Center management and security technology development∙ Development and introduction of the Cloud Data Center evaluation system∙ Fostering Cloud Data Center manpower
Promoting the use of the CloudData Center
∙ Enhancing awareness of the Cloud Data Center∙ Supporting SMEs’ use of the Cloud Data Center∙ Promoting public demands for the Cloud Data Center
Former KCC, Private Cloud Data Center diffusion strategy, 2012
42 / Part 1. Infrastructure
E. NFC (Near Field Communication)
NFC is a non-contact wireless communication technology using the 13.56MHz bandwidth to
exchange data in 10cm. Unlike similar technologies, such as Wi-Fi and Bluetooth, NFC utilizes
a physical and intuitive non-contact method for communication between devices, thereby in-
creasing convenience.
NFC is now installed in most Android smartphones and is used for sharing information be-
tween devices that are physically close to each other. The embedded NFC chip typically sends
and receives small quantities of data and is increasingly being used to create various val-
ue-added services, such as payment, information certification, location-based information and
targeted advertising.
In May 2012 Korea joined hands with the Organizing Committee of the International
Exposition to help carry out the Yeosu Expo NFC pilot project. When carrying out this project,
code named ‘Myeongdong’, efforts were made to have visitors with smartphones be able to
experience some of the benefits enabled by NFC technology when visiting the ‘smart life expe-
rience hall’. Thanks to the Yeosu Expo NFC pilot project, about 210,000 visitors experienced
NFC services, which helped to publicize the technology which is still not so well known.
Based on the experience of operating the Yeosu Expo NFC pilot project, the national govern-
ment is cooperating with Seoul to provide services that citizens can use in everyday life. In
March 2013, the same NFC exhibit information service applied at the Yeosu Expo was applied
to 30 or so stores and 240 exhibits in 6 museums and exhibition halls in Seoul. Korea is also
planning to provide the world’s first mobile deferred payment transportation card service in
Ulsan. The transportation card service is a community-based service that is expected to con-
tribute greatly to invigorating the domestic NFC application service market. The mobile deferred
payment transportation card service will allow people to use their NFC-equipped smartphones
when using public transportation in place of the existing plastic card. Users will have a mobile
credit card with the deferred payment transportation card function issued to their smartphones.
When so equipped all they will have to do is touch their smartphone to the transportation card
terminal when boarding a bus and pay for it later. This service will be implemented in a way
compatible with the national transportation card policy, which has been under development by
the Ministry of Land, Infrastructure and Transport, so that user convenience will be enhanced.
By being the first to introduce the mobile deferred payment transportation card Ulsan will be-
come an ICT-based smart city.
Part 1. Infrastructure /43
F. IoT (Internet of Things)
M2M (Machine to Machine), which uses the mobile communication network for intelligent
communication between a person and a thing and between things, is now being extended to
the Internet, and is quickly evolving to include interaction with all information in the real and
virtual world. Accordingly, M2M is most likely to be extended to include the concept of IoT
(Internet of Things).
The M2M General Support Center, established in May 2011, is providing small and medium
sized M2M venture firms in Korea with an environment in which they can develop technologies
and services and conduct verification tests. In 2012 efforts were made to improve the testing
environment reflecting the opinions of enterprises using the M2M General Support Center and
domestic experts. To help domestic small and medium sized M2M venture firms with their
product development, Korea built a 4G (WiBro, LTE) system, purchased additional equipment
like radio shielding boxes, implemented a smart homecare service, and held two ‘business
partnership meetings’ to provide more business opportunities to the small and medium sized
venture firms. All of the efforts were favorably received.
To invigorate M2M in Korea and contribute to creation of new quality jobs, Korea provided
service experience education for students in related departments at domestic universities three
times, and offered basic M2M education for Seoul Digitech High School students in a bid to
foster entry-level technical engineers.
【Table 1-3-3 】M2M general support center operations (Unit : time, case)
Classification Usage Technology consulting New members
2011 180 11 114
2012 321 25 135
Former KCC, 2012 annual report, 2013
Part 2. Services /45
Part 2. Services
1. Internet Services
2. Internet Businesses
3. Internet Convergence Services
4. Internet Services in the Public Sector
5. Internet and Society
46 / Part 2. Services
1. Internet Services
A. Information Search
Looking at the market shares of key search portals in Korea, Naver and Daum, whose combined
market share is greater than 90%, accounted for 73.0% and 20.9% of the domestic search
market respectively, up 0.9% and 1.5% over 2011 respectively. Yahoo, however, which was
ranked No. 5 in 2011, saw its market share fall 0.7% from 2011 to 0.4% then withdrew from
the Korean market due to the appearance of Zum, a new search service that has appeared and
is gaining traction.
【Figure 2-1-1 】Share of the search market of key domestic portals (Unit : %)
※ Among others in 2012, Yahoo(yahoo.co.kr) accounted for 0.39% of the market Nielson Korean Click, www.koreanclick.com
At the end of every year, each portal site announces the most popular search words reveal-
ing the issues which attracted the attention of Koreans the most. In 2012, the two major
search engines of Korea, Naver and Daum, shared the same 5 words in their list of top 10
most popular search words. The words were : weather, Google, Nate, Kookmin Bank and
Nonghyup Internet Banking.
Meanwhile, Psy’s ‘Gangnam Style’ was viewed more than 900 million times in YouTube to
Part 2. Services /47
become the most viewed video ever, and was ranked No. 2 on the Billboard chart of the US,
the home of pop, for 7 weeks in a row. It was the most popular search word in both Nate and
Google.
【Table 2-1-1 】Top 10 search keywords of domestic portals
Rank Naver Daum Nate Google
1 Daum Naver Gangnam Style YouTube No. 1 Gangnam Style
2 Facebook WeatherThe Moon Embracing the Sun
(Korea TV Drama)The Moon Embracing the Sun
(Korea TV Drama)
3 GoogleNonghyup Internet
BankingControversy over Olympic
decisionFashion King
4 Coupon Kookmin Bank Devastating Typhoon Bolaven Dream High 2
5 Nate Lotto Ahn Cheol-soo’s move Diablo 3
6 Kookmin Bank Yahoo Rumors about Tiara’s trouble Olympics
7Nonghyup Internet
BankingNate Anypang fever
Diginity of a Gentlemen(Korea TV Drama)
8 Weather Facebook Diablo 3 limited Whitney Houston
9 bank Google IU’s excuse Kakao Story
10 TMON Shinhan Bank NARO launch cancelled North Face
Portal data (compiled), 2013
B. Contents
1) Video and Music
In 2011 the average sales per person in the Internet video provision market was KRW 254
million, with the average sales per company being KRW 205,339 million in 2012. The figures
increased about 20 times and 5 times respectively as compared to 2010.
48 / Part 2. Services
【Table 2-1-2 】Internet video provision business
Classification YearNo. of
companiesNo. of
employeesSales
(KRW 1 million)Average sales per
company(KRW 1 million)Average sales per
person(KRW 1 million)
Internet protocol TV(IPTV)
2011 3 470 404,303 10,337 254
2012 3 520 616,196 205,339 1,185
Ministry of Culture, Sports and Tourism and Korea Creative Content Agency, 2012 content industry statistics (compiled), 2013
According to the 2012 contents industry statistics of the Ministry of Culture, Sports and
Tourism and the Korea Creative Contents Agency, sales of online music were KRW 880 billion
in 2011, up 41.4% over the previous year, and an increase of 24.3% annually on average from
2009 to 2011. Looking at small categories, sales of Internet music service businesses were
KRW 592 billion accounting for 67.4%, up 30.5% over the previous year, and an increase of
28.3% a year on average. Sales of music via mobile services were KRW 122 billion (13.9%), up
121% over the previous year, and an increase of 26.5% a year on average. Sales of the sound
source brokerage business were KRW 87 billion (9.8%), up 36.4% over the previous year, and
an increase of 19.9% a year on average. Sales of Internet and mobile music contents pro-
duction and provision (CP) were KRW 78 billion (8.9%), up 58.2% over the previous year, and
an increase of 3.5% a year on average.
【Table 2-1-3 】Sales of the online music distribution (Unit : KRW 1 billion, %)
Small categorySales
RatioAnnual growth
rateCAGR
2009 2010 2011
Mobile music service business 77 55 122 13.9 121.0 26.5
Internet music service business 360 454 592 67.4 30.5 28.3
Sound source brokerage 60 64 87 9.8 36.4 19.9
Internet and mobile music contents production and
provision business73 49 78 8.9 58.2 3.5
Total 570 622 880 100 41.4 24.3
Ministry of Culture, Sports and Tourism・Korea Creative Content Agency, 2012 content industry statistics, 2013
2) Games
In 2011, the number of companies in the domestic game industry was 17,344 employing
about 95,015 persons. According to 2012 industry statistics, sales were KRW 8,804,740 million
Part 2. Services /49
with an added value of about KRW 4,184,893 million and an added value ratio of 47.5%. Over
the previous 5 years the number of game companies was cut in half, but sales increased 3.4%
a year on average, and exports increased a whopping 23.8% a year on average.
Exports in 2011 amounted to USD 2,378,078 thousand, up 48.1% over the previous year
and 10 times more than imports (USD 204,986 thousand). Looking at regional figures, exports
to China amounted to USD 907.29 million, accounting for 38.2% of the total, followed by
Japan (USD 652.55 million, 27.4%), Southeast Asia (USD 428.27 million, 18%), North America
(USD 181.25 million, 7.6%), and Europe (USD 152.36 million, 6.4%).
【Table 2-1-4 】Sales of the game industry
TypeSales
(KRW1 million)Added value
(KRW1 million)Added value
ratio (%)Exports
(USD 1,000)Imports
(USD 1,000)
2006 7,448,900 3,655,175 49.1 671,994 207,556
2007 5,143,600 2,487,445 48.4 781,004 389,549
2008 5,604,700 2,808,000 50.1 1,093,865 386,920
2009 6,580,600 3,348,867 50.9 1,240,856 332,250
2010 7,431,118 3,768,320 50.7 1,606,102 242,532
2011 8,804,740 4,184,893 47.5 2,378,078 204,986
Annual growth rate 18.5 11.1 △3.2 48.1 △15.5
Ministry of Culture, Sports and Tourism・Korea Creative Content Agency, 2012 content industry statistics, 2013
3) e-Learning
e-Learning refers to education that enables level-by-level learning regardless of time and
place using information and communication technology. It refers to all learning utilizing elec-
tronic means, ICT, radio and broadcasting technologies. It is also called Internet learning,
web-based learning, cyber learning, remote learning and electronic learning. e-Learning is dif-
ferentiated from traditional education in that it provides customized education for learners. If
traditional learning methodology was one-sided, learning by rote in limited time and space,
e-Learning is a new method of education focused on openness, flexibility and dispersibility.
E-Learners can learn what they want whenever and wherever they want.
The domestic e-Learning market has grown about 10% a year on average since 2004 with
1,614 companies turning over a total of KRW 2,747,800 million in 2012. Also, about 53.3% of
the population 3 years of age and older are currently engaged in e-Learning.
50 / Part 2. Services
【Table 2-1-5 】Domestic e-Learning industry (Unit : ea., KRW100 million, %)
Classification 2008 2009 2010 2011 2012 CAGR
No. of companies 1,145 1,368 1,549 1,656 1,614 △2.5
Total sales 18,704 20,910 22,458 24,514 27,478 12.1
Personal e-Learning utilization rate
45.0 48.3 49.0 52.8 53.3 0.5
National IT industry Promotion Agency, 2012 e-Learning industry status survey (compiled), 2013
After passing the Act on Development of e-Learning Industry and Promotion of Utilization of
e-Learning in January 2004, the government established several policies to improve the quality
of e-Learning and promote its use. It established the grounds for providing e-Learning support
for educational institutions by revising laws, and pushed ahead with ICT-based education,
e-Learning, u-Learning (Ubiquitous-Learning) and Smart Education.
In particular, the government carried out the five core projects of its ‘smart education strat-
egy’, i.e. the u-learning project for distributing digital textbooks, tablet PCs and IPTVs, online
teaching and offline evaluation, application of digital textbooks, reinforcement of the com-
petency of teachers, and creating a cloud-based educational environment. Clearly the govern-
ment has been making diverse efforts to support smart education.
4) Publishing and News
According to the ‘2012 e-book readership survey’, the first such survey conducted by the
Ministry of Culture, Sports and Tourism to understand e-book readership in Korea, the elec-
tronic publishing market, including books, magazines and newspapers in 2012 is forecast to
grow 25% a year on average.
【Table 2-1-6 】Estimated size of the electronic publishing market (Unit : KRW100 million, %)
Classification 2008 2009 2010 2011P 2012P CAGR(2008~2012)
Electronic publishing business
Internet & mobileelectronic
publishing works712 978 1,133 1,429 18,039 26.2
Internet & mobileelectronic
publishing service477 682 793 1,022 13,168 28.9
※ P : preliminary Ministry of Culture, Sports and Tourism, 2012 e-book readership survey, 2012
Part 2. Services /51
We can now read news content through various channels thanks to advances in Internet and
mobile technology. According to the ‘2012 Media Audience Survey’ of the Korea Press Foundation,
most people (57.4%) are now getting their news via the Internet. The proportion of people
reading news on the Internet was 62.6%, up 6.4% over 2011 (56.2%). However, the Internet
news utilization rate varied depending on age and academic background. It was found that the
utilization rate of young adults was very different from that of middle-aged and elderly adults,
and the utilization rate of middle school graduates or younger was very different from that of
college students or older.
【Table 2-1-7 】Internet news utilization rate (Unit : %)
Classification Utilization rate Non-utilization rate
Total 62.6 37.4
By age
18 ~ 29 94.7 5.3
30’s 90.6 9.4
40’s 73.7 26.3
50’s 41.5 58.5
60’s or older 10.7 89.3
By academic background
Middle school graduates or younger 12.9 87.1
High school graduates 60.3 39.7
College students or older 92.6 7.4
Korea Press Foundation, 2012 media audience survey, 2012
5) Animation
As the domestic cartoon industry kept evolving to include digital scanned cartoons, webt-
oons, e-books and mobile comics, the online platform for distributing cartoon contents has al-
so been expanding. Then domestic portals like Naver and Daum opened webtoon markets in
2005. Naver webtoons became so popular that the number of monthly webtoon readers
reached 17 million viewing more than 1.54 billion pages by March 2013. Since popular car-
toons became available on the Internet, a considerable number of bestsellers have been
webtoons. This encouraged many cartoonists to publish serial webtoons which spurred even
more readership. Now there are as many as 300 cartoonists officially publishing webtoons on
Naver, Daum and Nate, and consequently domestic cartoonists are not only exporting webtoons
52 / Part 2. Services
but also generating revenues through secondary industries like movies.
In 2006 the number of companies in the animation industry was 260, but after several years
of growth averaging about 5.6% the number reached 341 in 2011. In that year the industry
employed a total of 4,646 people with sales amounting to KRW 528,551 million thanks to the
increased sales in movie theaters and creative productions. This was an increase of about 1.8
times as compared to KRW 288,564 million in 2006. In 2011, the added value was KRW 223.1
billion, which was an annual average increase of 26% over the KRW 70.3 billion recorded in
2006, and an added value ratio of 42.2%. Exports amounted to USD 115,941 thousand, USD
100 million more than the import amount (USD 6.89 million).
【Table 2-1-8 】Domestic animation industry
Classification 2006 2007 2008 2009 2010 2011Annual growth
rate (%)
Sales (KRW1 million) 288,564 311,166 404,760 418,570 514,399 528,551 2.8
Export (USD 1,000) 66,834 72,770 80,583 89,651 96,827 115,941 19.7
No. of employees 3,412 3,847 3,924 4,170 4,349 4,646 6.8
No. of companies 260 283 276 289 308 341 10.7
Ministry of Culture, Sports and Tourism and Korea Creative Contents Agency, 2012 content industry statistics, 2013
C. Location Based Services
LBS (Location Based Service) refers to any service that provides location-based information
such as location tracking, public safety, and navigation information using the GPS of a mobile
device such as a smartphone or the base station data of mobile carriers.
On September 23, 2011, the KCC opened an LBS Business Support Center with a ceremony
at which officials from major communication and Internet service providers and organizations
like the Online Privacy Association and KISA were present.
The LBS Business Support Center was established to provide comprehensive information so
that small and medium sized LBS providers can make a smooth entry into the market and
grow their services. The LBS Industry Council is in charge of operations and provides counsel-
ing related to obtaining a business license, operational support, location information statistics
and trend analysis, help with common problems, and receives reports of illegal service pro-
Part 2. Services /53
viders and notifies them to related agencies.
The growth of the domestic smartphone market is leading to the growth of various applica-
tion, content and software markets, and the LBS market is also growing with a focus on vari-
ous LBS games and such services as LBSNS (Location Based Social Network Service) and LBS
advertising.
In particular, as large Internet service providers are introducing LBSNS services, the domestic
LBSNS market is also expanding. The services are breaking away from being a simple find-ori-
ented service and evolving to provide fun-filled services like Kakao’s Kakao Place, NHN’s Me2Day,
Daum Communication’s Daum map and Daum Dangol, KTH’s IMin, and SK Communications’s
Cyworld Flag.
D. Mobile Apps
As smartphone usage and app usage time change, the app environment also changes.
Various app markets like Google Play, Tstore, Amazon and Naver Nstore have appeared after
Apple’s App Store, but the market is primarily led by two giants, Google and Apple. In 2012
the global app market was worth about USD 15.4 billion with Apple accounting for 32% (USD
4.9 billion) of global app sales and Google having 8% (USD 1.2 billion). The three mobile car-
riers in Korea accounted for 1.5% (USD 230 million).
【Table 2-1-9 】Sales by app market (as of 2012) (Unit : KRW100 million)
Classification Service area Date opened Sales amount
OverseasGoogle (Google Play) Global 2008. 10 13,200
Apple (App store) Global 2008. 7 53,900
Domestic
SK Planet (Tstore) Domestic 2009. 9 1,979
KT (Olleh Market) Domestic 2010. 10 440
LG U+ (U+App market) Domestic 2010. 9 380
※ The app market sales of Google and Apple are calculated with USD 1 being KRW 1,100 IHS iSuppli and Gartner (compiled)
54 / Part 2. Services
2. Internet Businesses
A. e-Commerce
The total e-Commerce volume of 2012 was KRW 1,144,689 billion, up 14.5% as compared to
KRW 999,582 billion in 2011, and continues to grow.
【Figure 2-2-1 】e-Commerce transaction volume by year (Unit : %, KRW1 billion)
※ P : preliminary Statistics Korea, 2012 annual and Q4 e-Commerce and online shopping trend, 2013
Looking at e-Commerce volume in detail, B2B accounted for 91.8% of the total volume (KRW
1,050,985 billion), followed by B2G (5.4%), B2C (1.7%) and C2C (1%).
Looking at the annual growth rate of e-Commerce in 2012, B2B, which accounted for the
most in terms of volume, increased 15.1%, followed by B2G (20.6%), B2C (6.6%) and C2C
(6.0%).
Part 2. Services /55
【Table 2-2-1 】e-Commerce transaction volume (Unit : KRW1 billion, %)
Type 2011 2012p Annual
Component ratio Component ratio Growth amount Growth rate
B2B 912,883 91.3 1,050,985 91.8 138,103 15.1
B2G 58,378 5.8 62,259 5.4 3,880 6.6
B2C 18,533 1.9 19,641 1.7 1,108 6.0
C2C 9,788 1.0 11,804 1.0 2,016 20.6
Total 999,582 100 1,144,689 100 145,107 14.5
※ P : preliminary Statistics Korea, 2012 annual and Q4 e-Commerce and online shopping trend, 2013
The B2B market volume in 2012 was KRW 1,050,985 billion, up 15.1% compared to KRW
912,883 billion in 2011.
【Table 2-2-2 】B2B transaction volume (Unit : KRW1 billion, %)
Classification 2007 2008 2009 2010 2011 2012p
Total volume 464,456 560,255 592,965 747,090 912,883 1,050,985
Growth rate 26.8 20.6 5.8 26.0 22.2 15.1
※ P : preliminary Statistics Korea, 2012 annual and Q4 e-Commerce and online shopping trend, 2013
Looking at the B2B e-Commerce by transaction type, buyer-led B2B e-Commerce volume was
KRW 537,497 billion, up 7.7% compared to the previous year, and seller-mediated volume
based on multiple buyers connecting to the N2B site operated by the seller increased 27.8%.
However, broker-mediated volume decreased 2.8%. Seller-mediated volume accounts for
44.2% of the total, up 4.4% from the previous year, whereas buyer-mediated volume declined
3.6%, and broker-mediated volume by 0.8%.
56 / Part 2. Services
【Table 2-2-3 】B2B e-Commerce transaction volume (Unit : KRW1 billion, %)
Type2011 2012p Annual
Component ratio Component ratio Growth amount Growth rate
Buyer-led 499,005 54.7 537,497 51.1 38,492 7.7
Seller-led 363,285 39.8 464,288 44.2 101,003 27.8
Broker-led 50,593 5.5 49,200 4.7 △1,393 △2.8
Total 912,883 100 1,050,985 100 138,103 15.1
※ P : preliminary Statistics Korea, 2012 annual and Q4 e-Commerce and online shopping trend, 2013
Online shopping transaition volume in 2012 was KRW 32,347 billion, up 11.3% compared to
the KRW 29,072 billion in 2011.
【Figure 2-2-2 】Online shopping transaition volume (Unit : %, KRW1 billion)
※ P : preliminary Statistics Korea, 2012 annual and Q4 e-Commerce and online shopping trend, 2013
B. e-Finance
Internet banking refers to any financial service that enables people to handle various finan-
cial transactions such as fund transfer and checking balances over the Internet. Mobile banking
refers to any financial service that enables people to use mobile communication devices such
Part 2. Services /57
as handling financial transactions over the wireless Internet. In Korea, Internet banking for fi-
nancial transactions like fund transfer started in July 1999, and has become a normal
day-to-day financial service. Meanwhile, mobile banking, which started in October 1999, is
gradually growing into an independent means of payment thanks to the expansion of smart-
phone (which started in December 2009).
As of the end of December 2012, the number of registered users of Internet banking and
mobile banking was 86,430 thousand persons and 37,048 thousand persons respectively, up
15.5% and 56.2% compared to the previous year respectively. In 2012, the frequency of
Internet banking usage and amount of transactions were 45,728 thousand (up 17.2% annually)
and KRW 33,239 billion (up 4.1% annually) while the frequency of mobile banking usage and
amount of transactions during the same period were 12,946 thousand (up 68.2% annually) and
KRW 961.5 billion (up 47.3% annually).
【Table 2-2-4 】Internet banking and mobile banking service use (Unit : 1,000 persons, 1,000 cases, KRW 1 billion, %)
Classification 2009 2010 2011(A) 2012(B)Rate of increase/ decrease (B-A)
Growth rate
Internetbanking
No. of registered customers
59,206 66,502 74,817 86,430 11,613 15.5
Frequency of use(daily average)
26,538 33,355 39,023 45,728 6,705 17.2
Amount (daily average)
25,454 29,571 31,917 33,239 1,322 4.1
Mobilebanking
No. of registered customers
11,168 15,748 23,720 37,048 13,328 56.2
Frequency of use(daily average)
1,721 3,736 7,697 12,946 5,249 68.2
Amount (daily average)
266.2 415.6 652.6 961.5 309.0 47.3
Bank of Korea, 2012 Internet banking service use, 2013
C. Online Advertising
Online advertising, the main source of revenues in ICT services, is an essential industry that
can create various new services. Service providers like influential search engines and social
58 / Part 2. Services
network services (e.g. Google and Facebook) use advertising revenues to provide free content
to attract users and grow into global enterprises. The proportion of advertising sales to total
sales of NHN, Daum and SK Communications, the main portals of Korea, is 65%, 91% and
74% respectively. The average is 69%.
【Table 2-2-5 】Sales volume of the top three domestic portals (Unit : KRW100 million, %)
Company name2010 2011 2012
Total Advertising Total Advertising Total Advertising Ratio
Total 23,787 13,447 28,293 19,529 30,399 21,096 69
NHN 17,906 8,820 21,474 13,804 23,893 15,532 65
Daum 3,455 3,291 4,213 4,025 4,534 4,112 91
SK Communications 2,426 1,336 2,606 1,700 1,972 1,452 74
IR data of each company (compiled), 2013
In the age of feature phones when the wireless Internet was not used so much, mobile ad-
vertising was mainly SMS-based advertising, but the birth of smartphones and development of
the wireless Internet has led to the mushrooming of a variety of rich media advertising.
Recently, various kinds of advertising have appeared such as advertising utilizing characters in
game apps, banner ads using 3D, and compensatory advertising that pays points to viewers. In
2012, the mobile advertising volume (excluding message advertising) was KRW 216 billion, ac-
counting for 2% of the total advertising market. The advertising industry is paying keen atten-
tion to mobile advertising because its power is increasing as the smartphone adoption rate in-
creases bringing with it the possibility to use location or behavior information to provide cus-
tomized advertising.
In 2012 the domestic mobile advertising market volume was KRW 215.9 billion, up 184%
compared to the previous year, and is forecast to grow about 93% to KRW 416 billion in 2013.
In 2012 the global mobile advertising market volume was USD 8.4 billion, up 105.8% com-
pared to the previous year, and is forecast to grow about 61% to USD 13.5 billion in 2013.
Part 2. Services /59
3. Internet Convergence Services
A. IPTVs and Smart TVs
As the number of subscribers exceeded 7 million in May 2013, IPTV has become a paid
broadcasting media representing broadcasting/communication convergence. Since the service
was launched in 2009, the number of domestic subscribers has grown 47.6% a year on
average. Currently Korean IPTV accounts for 6.7% of the global IPTV market.
【Figure 2-3-1 】IPTV service subscribers (Unit : 10,000 persons)
Korea Digital Media Industry Association, press release - No. of IPTV subscribers exceeded 7 million, May 6, 2013
The domestic IPTV market is No. 4 following the US, France and China, with the global mar-
ket and Korean market forecast to grow annually by 9.1% and 7.4% respectively until 2017.
B. Smart Work
Smart work refers to a future-oriented work environment in which people can work con-
60 / Part 2. Services
veniently at anytime and from anywhere. Due to changes in the business environment, reduc-
tion of the working population and advances in IT technology, ordinary citizens are increasingly
interested in changes in the way we work. Recently in the business management environment,
the boundaries between industries have been collapsing due to the open ecosystem resulting
from IT-based convergence and the value chain in the industry is being diluted. Changes are
taking place in the way we work with the rise of collective intelligence, virtual collaboration
and crowd sourcing. Accordingly, unlike traditional enterprises focused on mass production and
low costs, enterprises opening a new business model with a focus on creativity and knowledge
production are appearing.
In 2012, Korea set the direction of a pilot project in line with its ‘plan to invigorate smart
work for the Socially Vulnerable Groups and SMEs’ announced in early 2012, and decided to
‘develop low-end welfare-type smart work service models’. To accomplish the goal of ‘diffusing
warm smart work’, this pilot project intends to encourage Socially Vulnerable Groups and SMEs
to adopt and utilize smart work, and find and diffuse early smart work business models.
Accordingly, a smart work environment was implemented for underprivileged groups not readily
accustomed to adopting ICT (traditional market merchants and non-regular janitors), and a col-
laborative service model capable of interworking and real-time image collaboration with vari-
ous terminals like tablet PCs, IPTVs and notebooks was implemented.
【Table 2-3-1 】2012 smart work pilot project model
Institution Service name Description
Xiilab(Seongnam,
Seongnam business district revitalization
foundation)
Building the business district revitalization
zone integrated management system
based on social contents
∙ Building a social network-based smart market environment for the business district and traditional market near Sujeong-ro, Seongnam
- market SNS and social customers management service - enhanced reality technology-based store information service - business district analysis and management service - Implementing and operating Smart Stores (offline)
KTDeveloping open
collaboration solutions
∙ Developing collaborative solutions capable of interworking with multi- media like iPads, IPTVs and notebook PCs
∙ Commercial service based on a new smart work rate plan∙ Operating open interface and association for interworking with SMEs
solutions
Happy ICT(Federation of
Alternative Janitorial Service Businesses)
Building a mobile janitorial service
management system
∙ Building a mobile office environment for non-regular janitors∙ Reducing the unnecessary time and cost of commuting to an office
by using mobile devices to remotely share work details, time and lo-cation between janitors and janitorial service providers
∙ Developing a smart work support system exclusively for janitorial serv-ices
National Information Society Agency
Part 2. Services /61
C. IT Convergence
IT convergence started with the enhancement of 1G IT, underwent convergence between 2G
IT and new technologies, and is now advancing to undergo absorb 3G IT and related industries.
1G was developed with a focus on the convergence of IT parts and products and functional
convergence, whereas 2G was the convergence between new technologies, defined as IT+xT
convergence. Due to the appearance of innovative technologies, 2G laid the foundation for
multidisciplinary consilient research. 3G is utilizing future IT to innovate the existing industry
and create new values by linking different industries. All in all, convergence among all in-
dustries is being actively promoted.
【Figure 2-3-2 】Evolution of IT convergence
ETRI
As Korea presented a strategy for promoting IT convergence, efforts are being made to re-
inforce the infrastructure. However, despite the market potential of IT convergence, market for-
mation has been slow, and core competencies like system semiconductors and software were
not good enough. So Korea has been limited in securing leadership in IT convergence in the
global market. For example, testing, certification and stability testing (simulation, etc.) take
about 2~3 years after an IT technology is commercialized and applied in key industries like
automobiles and shipbuilding. To overcome these limitations, various IT convergence projects,
such as IT convergence projects in key industries, IPTV-related projects, manufacturing IT con-
62 / Part 2. Services
vergence projects, and local government-related IT convergence projects, need to be carried
out under the leadership of the government and local governments, universities, research in-
stitutes and enterprises must expand their IT convergence-related organizations.
Part 2. Services /63
4. Internet Services in the Public Sector
A. G2C Services
G2C (Government to Citizen) service started with the provision of data based on data accu-
mulated in individual systems and was implemented with the aim of improving public con-
venience by integrating data and services dispersed among different agencies into a single
portal site to improve convenience (i.e. enabling users to access data more easily and reducing
the number of required documents and their processing time).
【Table 2-4-1 】Examples of G2C services
Classification Service Website
Administrativeservice
government service portal Minwon24 (www.minwon.go.kr)
National tax service Hometax (www.hometax.go.kr)
Provision of housing, health and welfare
information
Residential service portal OK residential service (www.oklife.go.kr)
government welfare information service Bokjiro (www.bokjiro.go.kr)
Food and medicine information service kifda (www.mfds.go.kr)
Citizens’rights
Integrated administrative information dis-closure service
Information disclosure system(www.open.go.kr)
Online suggestion system e-people (www.epeople.go.kr)
Administrative appeals Internet serviceCentral Administrative Appeals Commission(www.simpan.go.kr)
Individual public service websites (compiled), 2013
The government portal Minwon24 (www.minwon.go.kr) is the government’s main service
portal. It allows citizens to use the Internet to download documents at their convenience. To
incentivize people to use the online government services fees are reduced or waved. As of April
2013, the fee has been waived or reduced for 125 documents and services provided online.
64 / Part 2. Services
Service name Website Description
Enterprise supportplus
G4B(www.g4b.go.kr)
∙ Business portal that provides administrative and industrial information required throughout an enterprises’business cycle
National Logistics andTrade Information
Sharing & IntegrationService
National LogisticsInformation Center
(www.nlic.go.kr)
∙ User-centered logistics service that makes available the land / marine/ air logistics information dispersed among different agencies
SP-IDC(www.spidc.go.kr)
∙ Service that delivers comprehensive port information and supports information sharing and collaboration among logistic subjects
uTradeHub(www.utradehub.or.kr)
∙ e-Trade service that handles overall trade processes from marketing to commercial trade, logistics, customs clearance, and foreign currency exchange settlement
UNI-PASS(portal.customs.go.kr)
∙ Internet-based export/import customs clearance service that supports customs filing and approval, tariff payment and refund, and criteria review
SME policy information service
BizInfo(www.bizinfo.go.kr)
∙ Comprehensive information provision service, such as SME support business, SME policy, business guidance, comprehensive civil service counseling
B. G2B Services
The government’s G2B (Government to Business) services are designed to improve enter-
prise-related services, such as approvals and information provided to businesses in order to
improve efficiency and thus help enterprises improve their competitiveness. As documents have
been standardized and simplified, the time and cost of delayed administrative services have
been greatly reduced.
Typical examples are the provision of an integrated information service that links related
agencies so that the administrative procedure for business startup, factory construction, and
provision of integrated logistics, trade and customs clearance services, which used to be pro-
vided by separate agencies, are now all linked from the viewpoint of businessmen. Also, com-
prehensive policy information services are provided to SMEs, e.g. policy information related to
management of SMEs, prices of raw materials or overseas market information, and the pro-
curement processes of agencies and public institutions all went online so that transparent pro-
curement and civil service is provided to suppliers. Also, the patent service makes it possible
to electronically handle all patent procedures, such as intellectual property right application,
evaluation, registration, judgment and communication without having to pay a visit in person.
【Table 2-4-2 】Examples of G2B services
Part 2. Services /65
Nationale-Procurement
Service
Korea ON-linee-Procurement System
(www.g2b.go.kr)
∙ Single window for national e-Procurement that processes all gov-ernment procurement procedures and allows monitoring of oper-ations on the Internet
Patent information service
KIPOnet(www.patent.go.kr)
∙ Service that processes all patent-related procedures such as applica-tions and queries on progress over the Internet
Each G2B service website (compiled), 2013
C. G2G Services
e-Government is generally defined as the new government innovation strategy for improving
administrative efficiency by utilizing ICT to make it easier for citizens to access government in-
formation and services. Of the various e-Government services, the G2G service utilizes ICT to
improve the efficiency and transparency of inter-administrative agency processes and ultimately
increase the quality of government services for citizens and businesses and thus improve na-
tional competitiveness.
The government business management service breaks away from the usual business man-
agement method based on experience and practices to have all government work processes
managed systematically, such as system-based schedules, documents, tasks and instructions.
To this end, the government built its ‘On-Nara BPS System’ based on the BRM (Business
Reference Model), which systematically classifies the government’s functions, and the business
management card-oriented Blue House business management system (e-support).
The e-Document distribution service allows for online transfer of electronic documents not
only between administrative agencies but also between educational institutes and other gov-
ernment agencies. As part of the service, the delivery certification system was developed to re-
cord and manage the whole process of document distribution in order to certify document
transmission and receipt, and is now in operation. The Korean government began promoting
electronic approval and e-Document distribution in 1998 for the e-Document distribution
service. As of September 2012, the service had been expanded to a total of 1,864 government
agencies including 511 administrative agencies, and 1,353 public corporations, special corpo-
rations, and educational institutes. As a result, the majority of agencies in the public sector are
now able to distribute documents online.
66 / Part 2. Services
【Figure 2-4-1 】No. of Agencies using e-Document distribution services (unit : ea.)
MSPA
To provide information that can be used for nationwide resource allocation and management
of financial programs, including those of central, provincial and public agencies, with regard to
all processes of financial activities, such as revenue collection, budget compilation, execution,
management of funds and state-owned properties and settlement of accounts, the government
built and operates its own digital budget accounting system.
The government also established a strategic plan for system implementation in 2004, com-
pleted system implementation and test operations in 2006, and began to operate the system
in 2007. As a result, the government manages national revenues by linking the systems of the
National Tax Service, the Korea Customs Service, the National Police Agency (large collection
agencies) and the Korea Financial Telecommunication & Clearinghouse and the Bank of Korea
(banking network), and manages the budget by establishing mid-to-long-term and short-term
expense plans. Also, the government supports systematic management of acquisition, dis-
position, conversion and operation of national assets, and ensures efficient settlement of ac-
counts by accounting for transaction data occurring in the process of financial operations in re-
al time.
In particular, as revenues and expenditures are integrated with national properties and set-
tlement of accounts in the digital accounting system, the automatic journal enables users to
manage ledgers and settlement records without having to enter any additional data. The EBPP
(Electronic Bill Presentment and Payment) makes it possible to pay taxes and fines in various
ways, such as Internet banking and ATMs without having to visit public officials. In addition,
the G2B system of the Public Procurement Service enables fair and transparent bidding and
Part 2. Services /67
contracting, and EFT (Electronic Funds Transfer) makes it possible to transfer funds from state
accounts to the accounts of private businesses at will.
As a result, about 55,000 public officials in charge of managing state coffers at central ad-
ministrative agencies and some local governments are using the digital accounting system. As
of June 2013, a daily average of 15,000 public officials have been handing 35,000 trans-
actions, and as of December 2012, funds worth KRW 5.7 trillion are routinely transferred.
Consequently, the digital accounting system received the UN Public Service Award in May
2013. In particular, the Korean government was ranked No. 1 in the ‘Promoting Whole - of -
Government Approach in the Information Age’ sector in the final evaluation by the UN
Committee of Experts on Public Administration (CEPA).
68 / Part 2. Services
5. Internet and Society
Social networking services are not growing as fast as previously but have been used con-
tinuously, and related social issues have only grown and expanded as a result. In particular,
mobile devices are utilized much more frequently than PCs, so consumption of mobile games,
entertainment contents, and news has sharply increased.
Political conflict between conservative and left-leaning progressive groups became even more
radical during the two elections of 2012 with social networking services playing a central role.
As a result, there are growing concerns over this phenomenon. The ideological propensities of
citizens and their values tended to become more extreme as a result of online communication
in which the identity of participants is often anonymous. This problem of polarization caused
some to argue that expression of opinions must be legally regulated, while others argue that
freedom of expression must be tolerated. There is a sharp conflict of opinion on this point.
Practical discussions were raised concerning individual civil rights with regard to control of
personal information and the right to have information currently stored in cyberspace erased.
Along with the leakage of personal information, which has been a major social issue over the
years, issues concerning privacy, which is often exposed to the media and does not disappear
with the passage of time, were raised continuously. The public is deeply concerned about the
digital information that is stored in cyberspace and can be called into public attention when
wanted, so the right to have information permanently erased became a matter of keen interest.
In particular, if a person has paid a sufficient price for a mistake according to legal statutes
but continues to suffer consequences unreasonably because others deem it their prerogative to
remind the public of deeds past done, the social consensus is that this matter cannot be ig-
nored under the pretext of freedom of speech and the characteristics of media storage.
Part 3. Utilization /69
Part 3. Utilization
1. Internet Industry and Usage
2. Promotion of the Internet
3. Internet Related Laws
4. International Cooperation
70 / Part 3. Utilization
1. Internet Industry and Usage
A. Internet Industries
According to the ‘statistics on wired and wireless communication service subscribers’ by the
MSIP, the number of wireless Internet subscribers in Korea was 50.42 million in 2012, which
was up 2.3% over 2011 (49.3 million). As the number of smartphone users has been increas-
ing, the number of wireless Internet users has also been increasing.
Moreover, according to ‘broadband Internet subscribers’ data, as of December 2012, the
number of domestic broadband Internet subscribers was 18.3 million, with KT having the larg-
est number of subscribers (approx. 8.04 million, 44.0%), followed by SK Broadband (approx.
4.39 million, 24.1%), System operator (approx. 2.96 million, 16.2%), and LG U+ (approx. 2.74
million, 15.0%).
【Table 3-1-1 】Broadband Internet subscribers (Unit : 1,000 persons, %)
Provider 2007 2008 2009 2010 2011 2012
KT 6,516(44.3) 6,712(43.4) 6,953(42.5) 7,424(43.1) 7,823(43.8) 8,037(44.0)
SK Broadband 3,658(24.9) 3,544(22.9) 3,847(23.5) 4,002(23.2) 4,192(23.5) 4,394(24.1)
Dreamline 2(0.0) 1(0.0) 0(0.0) 0(0.0) 0(0.0) 0(0.0)
LG U+LG Dacom 68(0.5) 29(0.2) 12(0.1)
2,773(16.1) 2,810(15.7) 2,743(15.0)LG Powercom 1,721(11.7) 2,182(14.1) 2,510(15.4)
System operator 2,507(17.0) 2,786(18.0) 2,811(17.2) 2,826(16.4) 2,857(16.0) 2,960(16.2)
Relay operator 16(0.1) 13(0.1) 11(0.1)
199(1.2) 178(1.0) 120(0.7)
Network System Operator
58(0.4) 50(0.3) 42(0.3)
Special CategoryTelecommunications
System Operator164(1.1) 158(1.0) 163(1.0)
Total 14,710 15,475 16,349 17,224 17,860 18,254
※( ) is year-end market share MSIP, wired and wireless communication service subscribers statistics, 2013
Part 3. Utilization /71
The portion occupied by the utilization industry, which accounts for most of the total Internet
industry sales (70.1%) increased by 0.2%p over 2011. The portion occupied by the infra-
structure industry decreased by 0.4%p as compared to 2011. The portion of the support in-
dustry for sales volume did not change much from 2011.
【Table 3-1-2 】Sales of the Internet industry (Unit : KRW1 billion, %)
Type 2007 2008 2009 2010 2011 2012P CAGRAnnual
growth rate
Infrastructure industry
1,499(5.5)
1,547(5.1)
1,659(5.0)
1,766(4.9)
1,511(3.9)
1,463(3.5)
△0.5 △3.2
Support industry
6,486(23.8)
7,937(26.1)
8,407(25.2)
9,358(25.9)
10,263(26.2)
10,955(26.4)
11.1 6.7
Utilization industry
19,278(70.7)
20,974(68.9)
23,289(69.8)
24,958(69.2)
27,345(69.9)
29,111(70.1)
8.6 6.5
Total 27,263 30,458 33,355 36,082 39,119 41,529 8.8 6.2
※ P : preliminary, ( ) is ratio KAIT, Broadcasting Communication Industry Report (Monthly/Yearly)(compiled) 2012
※ CAGR : Compound Annual Growth Rate for 2007~2012
B. Internet Usage
1) Individuals and Households
According to the ‘2012 Survey on Internet Usage’ by the former KCC and KISA, the Internet
usage rate (ratio of persons who used the Internet at least once in the last one month to total
population) of people aged 3 and older was 78.4%, up by 0.4%p over the previous year. The
number of Internet users was 38.12 million (up by 9.4 million over the previous year). The
Internet utilization rate was merely 59.4% (26.27 million) in 2002, but thanks to the rapid ex-
pansion of the broadband Internet infrastructure, the Internet utilization rate increased by 19
percentage points and the number of broadband Internet users increased about 1.5 times in
the last 10 years.
72 / Part 3. Utilization
【Figure 3-1-1 】Internet users and Internet usage rate (Unit : %, 1,000 persons)
※ 2003~2005 : Population age 6 and older Former KCC and KISA, 2012 Survey on the Internet usage, 2013
After 2006 : Population age 3 and older
The Internet usage rate for males and females aged 3 and older was 83.6% and 73.2%,
respectively. The number of male Internet users was 20.33 million and the number of female
Internet users 17.79 million.
【Figure 3-1-2 】Internet usage rate and Internet users by gender (Unit : %, 1,000 persons)
Former KCC and KISA, 2012 Survey on the Internet usage, 2013
The Internet utilization rate of the younger generations was almost 100% : teens (99.9%),
those in their 20’s 99.9%, and those in their 30’s (99.5%). The Internet usage rate for those
Part 3. Utilization /73
in their 60’s (38.5%) was relatively lower than those of other age groups, but rose sharply by
15.6 percentage points.
【Figure 3-1-3 】Internet users and Internet usage rate by age (Unit : %, 1,000 persons)
Former KCC and KISA, 2012 Survey on the Internet usage, 2013
Internet users spent a weekly average of 16.3 hours on the Internet (daily average of 2.3
hours). Almost half (48.0%) of them used the Internet 14 hours and more per week (14~21
hours : 25.2%, 21~35 hours : 16.8%, and 35 hours or more : 6.0%).
【Figure 3-1-4 】Weekly average Internet usage Hours (Unit : %)
Former KCC and KISA, 2012 Survey on the Internet usage, 2013
74 / Part 3. Utilization
2) Business
As of December 2011, 57.2% of all establishments had access to the Internet, up 17.4 per-
centage points over the previous year. Most businesses with more than 10 employees had ac-
cess to the Internet, whereas the Internet access ratio of those employing less than 10 people
went up by 18.3 percentage points (1~4 employees 50%) and 13.4% (5~9 employees 89.5%)
respectively. This big increase over 2005 can be attributed to greatly improved Internet speeds,
service reliability and coverage that reduced the gap of Internet access among establishments
with different numbers of employees.
【Figure 3-1-5 】Internet access rate by establishment size (as of December 2011) (Unit : %)
Former MOPAS・National Information Society Agency, 2012 Informatization Statistics (compiled), 2013
C. Worldwide Internet
1) Global Internet
Korea has proven its standing as an Internet powerhouse as it was highly ranked in various
ICT related indices published by international organizations like the UN and the International
Telecommunications Union, as well as by private institutions like the World Economic Forum
and the International Institute for Management Development.
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【Table 3-1-3 】International ICT related indices
Organization Index nameRanking (out of total)
Remarks2006 2007 2008 2009 2010 2011 2012
UNe-Government
development index- -
6(192)
-1
(192)-
1(193)
Holland 2nd
UK 3rd
ITUICT development
index1
(180)1
(181)-
2(154)
1(159)
1(152)
1(155)
Sweden 2nd
Denmark 3rd
WEF
Network readinessindex
14(115)
19(122)
9(127)
11(134)
15(133)
10(138)
12(142)
Sweden 1st
Singapore 2nd
Technical Readiness,Global Competitiveness
Index
12(125)
7(131)
13(134)
15(133)
19(139)
18(142)
18(144)
Sweden 1st
Luxemburg 2nd
IMDTechnical Infrastructure,World Competitiveness
Index
6(53)
6(55)
14(55)
14(57)
18(58)
14(59)
14(59)
Hong Kong 1st
US 2nd
JapaneseMIAC
ICT National competitiveness index
- - -2
(24)1
(25)1
(30)-
Not announcedin 2012
KISA
2) Asia-Pacific Region
According to the ITU, the number of Internet users in the Asia-Pacific region in 2012 ac-
counted for 44.8% (1,133 million) of all Internet users worldwide. The Internet utilization rate
of the Asia-Pacific region was 28.8%, lower than the global average of 35.7%, but the annual
growth rate of Internet users in the region between 2000 and 2012 was 841.9%, which was
higher than that of Europe (393.4%) and North America (153.3%).
【Table 3-1-4 】Internet users and broadband Internet subscribers in Asia-Pacific (Unit : million persons, %)
Classification 2008 2009 2010 2011 2012e 2013e
Internet users 612(16.2) 721(18.9) 868(22.5) 999(25.6) 1,133(28.8) 1,269(31.9)
Broadband Internet subscribers
151(4.0) 183(4.7) 214(5.5) 251(6.4) 275(6.9) 303(7.6)
※ Figures in ( ) mean the Internet users and Broadband Internet subscribers per 100 persons ITU, ITU Statistics, 2013
※ e : estimate
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3) Americas
According to the ITU, the number of Internet users in the Americas, including both North and
South America, was 542 million in 2012. The region is expected to account for 21.7% of all
Internet users worldwide. However, the proportion is gradually decreasing as the number of
Internet users in developing countries in the Asia-Pacific region and Africa is increasing.
【Table 3-1-5 】Internet users and broadband Internet subscribers in Americas (Unit : million persons, %)
Classification 2008 2009 2010 2011 2012e 2013e
Internet users 403(44.2) 424(46.1) 458(49.3) 502(53.4) 542(57.2) 582(60.8)
Broadband Internet subscribers
111(12.2) 120(13.1) 131(14.1) 141(15) 152(16) 164(17.1)
※ Figures in ( ) mean the Internet users and Broadband Internet subscribers per 100 persons ITU, ITU Statistics, 2013
※ e : estimate
4) Europe
According to the ITU, the number of Internet users in Europe was 443 million in 2012, with
the Internet utilization rate being 71.2%, accounting for 17.7% of the total global Internet
users. At ‘EU 2020’ held in March of 2010, the European Commission announced its in-
formatization vision and strategy for the next 10 years. At the Digital Agenda Summit in
October 2011, the EC also announced its plan to invest USD 12,557 million to develop a new
advanced fiber-optic communication broadband infrastructure to support the European broad-
band market. Also, the EC proposed an Amendment of the Data Protection Rules in the first
half of 2012 to strengthen personal information protection.
【Table 3-1-6 】European Internet users and broadband Internet subscribers (Unit :million persons, %)
Classification 2008 2009 2010 2011 2012e 2013e
Internet users 367(60.2) 387(63.2) 411(66.9) 428(69.0) 443(71.2) 467(74.7)
Broadband Internet subscribers
125(20.6) 136(22.2) 145(23.6) 154(24.8) 161(25.8) 168(27.0)
※ Figures in ( ) mean the Internet users and Broadband Internet subscribers per 100 persons ITU, ITU Statistics, 2013
※ e : estimate
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2. Promotion of the Internet
A. Promotion of Internet business
1) Creating a Win-Win Internet Infrastructure
In 2012 the global economy was in recession as exemplified by the Euro Zone crisis and the
‘fiscal cliff’ in the US. The Korean economy was also affected recording its lowest growth rate
ever of 2.3% as a result of the global financial crisis that started in 2008. Despite these eco-
nomic conditions, Internet companies have been continuously engaged in win-win cooperation
and social contribution activities to invigorate the Internet ecosystem and improve global
competitiveness. The government established a startup program to reinforce the competitive-
ness of Korean Internet enterprises through its Internet committee for co-prosperity, and tried
to foster a healthy Internet business environment by inducing co-prosperity through coopera-
tion among enterprises. To share and communicate through social contribution programs,
Internet enterprises have been engaged in various educational activities, PR and promotional
campaigns. The result is that the number of domestic venture firms increased from 4,934 in
1999 to 28,193 in 2012. The annual average growth rate was 14.3%.
The KCC announced its ‘Global K-startup Program’ in 2012. Based on a cooperative relation-
ship with portals and mobile carriers, this program identifies innovative Internet startups, fos-
ters them systematically, and joins hands with Google to reinforce overseas investor relations
support and global expansion efforts.
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【Figure 3-2-1 】Global K-startup incubation process
Former KCC, press release - global K-startup : fostering future Internet blue chip, February 15, 2012
2) Promotion of the Wireless Internet
The MSIP is continuously operating and expanding its SMAC (smart mobile app development
support center) which it launched in cooperation with mobile carriers, portals and related
agencies. SMAC has been operating 6 centers in major metropolitan areas since 2011 where
mobile carriers like KT, LG U⁺ and SK Telecom have been testing and verifying apps being
developed. To promote balanced development of the app ecosystem by improving the gen-
erally poor environment of regional app developers and building new infrastructure, the gov-
ernment began to create a mobile app developer test environment and provide developer
education. An increasing number of people are demanding that outstanding mobile developers
in rural communities be provided the same app development infrastructure and environment as
well, so SMAC installed regional centers in 5 additional regions (Chungcheong, Honam, Gangwon,
Daegyeong and the Southeastern region). These centers provide all the state-of-the-art test
terminals necessary for app development for domestic and foreign smartphones and tablet PCs,
waive data charges incurred during mobile app development and testing, and offer develop-
ment space.
3) Improvement of the Internet Usage Environment
The non-standardized Internet environment, far from global standards, began to congeal in
the late 1990’s when non-standard technologies dependent on a certain OS and browser had
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to be used in connection with the creation of new services, such as Internet banking.
Furthermore, in the smart mobile environment, triggered by the iPhone and attendant iOS, the
use of a greater number of devices (smartphones, tablets, TVs, etc.) is worsening the problems
of the non-standard Internet environment in Korea. The government found a practical answer
to these problems in HTML 5 which it sees as the next-generation web standardization tech-
nology and thus made nationwide efforts to introduce, utilize and promote it.
HTML 5, the latest evolution of HTML, has a built-in ability to handle a wider variety of ap-
plications and multimedia unlike HTML 4.1 that requires Flash player and media players to
provide rich contents. HTML 4.1 and older versions used to operate using only text and
hyperlinks. In July 2012, the plan to promote HTML 5 to reinforce the global Internet com-
petitiveness of Korea was announced. According to this plan, the government prepared a total
of 15 policy projects, including standardization of web-based certificates, the development of
3,000 HTML 5 professionals over a 5-year period, and supporting the conversion of public and
private websites to HTML 5.
The first project was to use web-based certificates. ActiveX, a non-standard technology, will
no longer be used, and ‘certificates’ will be called directly by the web browser according to in-
ternational standards. To this end, the ‘web-based digital signature function’ and the ‘certificate
management technology’ need to be developed and standardized. The government aims to
have them standardized by 2014, and if successful, it will consult with the Financial Services
Commission and the MSPA to use them for e-Commerce like online shopping.
The second project is to foster 3,000 HTML 5 professionals over a 5-year period. HTML 5 is
expected to allow domestic companies to break away from the restrictions of global platform
companies and therefore leap forward toward the global market, but the responses of domestic
companies have so far been inadequate mainly because there are too few HTML 5 professionals.
According to statistics, more than 30,000 people need to be re-trained or newly trained by
2017. To address this issue, the MSIP launched a comprehensive educational program to reach
its goal of training 3,000 HTML 5 professionals within 5 years.
The third project is to support the conversion of 200 public and private websites to HTML 5.
Korea is far behind other countries in the adoption of HTML 5 (Korea 11.7%, overseas 44%).
Accordingly, the government is planning to support 200 influential public sites and SMEs in
poor technological condition with their conversion to HTML 5 over a three-year period. In addi-
tion, the government will provide SMEs and venture ICT companies with information on tech-
nology trends, and have 20 HTML 5 documents translated every year so that local developers
will be able to more easily understand it.
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4) Web Accessibility
Tim Berners Lee, inventor of the world wide web (www), defined the web as ‘a space where
everyone can easily share information regardless of disabilities’. He also stressed the im-
portance of web accessibility by saying that web contents must be created in such a way that
anyone with any sort of a disability can easily access it. With this in mind, the government
passed two laws, the Framework Act on National Informatization and the Act on the Prohibition
of Discrimination of Disabled Persons & Consequences for Infringement of their Rights, Etc. In
particular the latter stresses that both the disabled and non-disabled be able to use the web
equally. According to this law, the web accessibility of public institutions became mandatory in
April 2009, and the websites of all corporations had to comply with web accessibility stand-
ards starting on April 11, 2013.
To ensure the effectiveness of these laws, the government established web accessibility
standards, and established the ‘Guideline for enhancing the convenience of information access
and use for the disabled and elderly’. In 2011, the government established the ‘Mobile appli-
cation accessibility guideline’ as the first in the world to do so.
Also, to operate the web accessibility quality certification system, self-enforced in the private
sector, including the National Information Society Agency, as a fair, reliable and unified form of
certification, the government partially amended the Framework Act on National Informatization
on May 22, 2013, and laid the legal foundation so that the Minister of Science, ICT & Future
Planning can operate it as a national arbitration certification system.
B. Creation of the Internet Culture
1) Reducing Internet Dysfunctions
The ‘digital divide’ is being defined differently by different scholars and in different reports.
The Framework Act on National Informatization defines it as ‘a gap in opportunities to access or
use information and communication service due to social, economic, regional or physical con-
ditions’. Meanwhile, Internet addiction also has many definitions, but the National Information
Society Agency in charge of Internet addiction defines it as ‘the state in which there is a with-
drawal symptom when disengaged from the Internet and a high tolerance when using the
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Internet with problems in daily life resulting’. Here, a withdrawal symptom means that one
feels extremely deprived and anxious if not able to use the Internet, and tolerance means that
one needs more and stronger contents to be as satisfied as previously.
Meanwhile, looking at the digital divide among ordinary citizens and underprivileged groups
in terms of the Internet utilization rate, in 2012, the average Internet utilization rate of the un-
derprivileged like the elderly, low-income group and farmers and fishermen, was 46.8%, up
1.2% over 2011. Accordingly, the digital divide between ordinary citizens and underprivileged
groups was 31.9 percentage points, down about 0.8 of a percentage point from 2011.
【Table 3-2-1 】Internet utilization rate and gaps of the underprivileged groups (Unit : %, %p)
Classification2008 2009 2010 2011 2012
Utilization rate Gap Utilization rate Gap Utilization rate Gap Utilization rate Gap Utilization rate Gap
Whole population 77.1 - 77.6 - 78.3 - 78.3 - 78.7 -
Underprivileged groups
Disabled 51.8 25.3 52.7 24.9 53.5 24.8 54.4 23.9 55.5 23.2
Elderly 35.6 41.5 37.6 40.0 39.3 39.0 41.1 37.2 42.6 36.1
Low-income group
54.6 22.5 55.7 21.9 56.5 21.8 57.4 20.9 58.5 20.2
Farmers & fishermen
35.2 41.9 36.2 41.4 37.5 40.8 38.9 39.4 40.2 38.5
Average 41.7 35.4 43.0 34.6 44.3 34.0 45.6 32.7 46.8 31.9
National Information Society Agency, 2012 digital divide index and survery, 2013
※ The gap is the difference in Internet utilization rate between ordinary citizens and underprivileged groups
※ The average is the weighted average considering the size of each underprivileged group
2) ICT Ethics Education
The government launched its ‘10 million informatization education plan’ in June 2000 to im-
prove the information utilization ability of the entire nation and promote informatization
throughout the nation. As a result, basic and practical informatization education was offered to
all citizens to raise their ability to utilize computers and Internet information. Just 2 years later
in June 2002, the goal of teaching 10 million people was accomplished earlier than planned.
However, although the government made such efforts, as informatization progresses, the num-
ber of underprivileged groups like the disabled and the elderly kept increasing, and the digital
divide began to worsen. Korea responded to this development by establishing and executing
its ‘informatization education for 5 million underprivileged citizens’ in 2004, and established its
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‘second general plan to eliminate the digital divide (2006~2010)’ in 2005. The government
then more intensively provided informatization education for four underprivileged groups (the
disabled, the low-income group, the elderly, and farmers & fishermen).
As informatization progresses, the digital divide has deteriorated the opportunities for people
to engage in social activities and enjoy a more balanced life. This became a major factor in
hindering social unity. Accordingly, the government provided informatization education to give
underprivileged groups like the disabled and the elderly opportunities to improve their quality
of life and induce social unity through informatization. It is continuously reinforcing informatiza-
tion education for underprivileged groups by developing and supporting various customized
educational contents. In particular, the government trained 306 professional instructors in
2012 to help eliminate the ‘mobile divide’. Those instructors provided smart mobile education
for 16,105 underprivileged citizens.
The government is trying to ensure that citizens can use information in a safe and healthy
environment even as the digital environment is rapidly changing as ICT devices are increasingly
being used every day and new media appears. Korea has been making efforts to protect citi-
zens from information pollution, such as SPAM and obscene content, and infringement of civil
rights, such as violation of copyrights and cyber bullying. For example, Korea has been provid-
ing lifecycle-based information and communication ethics education for teenagers, teachers
and parents since 2002 to cultivate proper digital etiquette and promote a sound information
cultural environment.
In particular, as the age of Internet users continues to get ever lower, the government ex-
panded the targets of its information and communication ethics education to include children
in 2011 and completed its lifecycle education curriculum. Starting with 525 state-run and pub-
lic kindergartens in 2011, the targets were then expanded to private kindergartens in 2012. In
total Internet safety education was given at 1,002 kindergartens around the country. In partic-
ular, as the Nuri curriculum for children 3~4 years of age was to be introduced in 2013, a pilot
project was launched in 2012 to provide the curriculum to 157 kindergartens. Currently all
kindergartens with children 3~4 years of age are teaching the same curriculum. Also, as day-
care centers were also included information and communication ethics education facilities for
infants was reinforced. The curriculum was provided to 22,000 smart kids in 2011 and 45,000
in 2012, and Internet etiquette education will be given to 50,000 smart kids in 2013. The gov-
ernment is trying to establish Internet safety and ethics education as a core and essential part
of the education curriculum for children.
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3) Enhancing Internet Ethics
Everyone must be aware of and practice Internet ethics so that social problems caused by
the Internet can be resolved. Accordingly, the KCC and the KISA operate a youth organization
to promote a sound Internet culture, prevent cyber bullying, and enhance Internet ethics. Their
‘Korea Internet Dream Star’ and ‘Beautiful Internet World’ campaigns are conducted every year.
In particular, the Korea Internet Dream Star, which celebrated its 3rd anniversary in 2013, se-
lects different topics and targets every year, whereby it helps teenagers to learn Internet ethics
for themselves, and use it properly. The Beautiful Internet World campaign is an Internet cul-
tural movement for all citizens intending to create a sound Internet culture.
The ‘Korea Internet Dream Star’, which targets elementary and middle school students who
are the future leaders of the Internet society, is a youth organization that was established to
develop young leaders who have a sound understanding and appreciation of high ethical val-
ues in the Internet society by operating programs that teach proper use and understanding of
the Internet.
Through the ‘Korea Internet Dream Star’ program, youth can develop their ability to crea-
tively express their thoughts and properly accept others’ opinions, as well as participate in
various activities (education, campaigns, experience/exploration, social contributions, etc.) to
improve their ability to take the leadership in fulfilling their social responsibilities in the evolv-
ing Internet society.
On September 12, 2012, the government hosted its first ‘International Internet Ethics
Symposium’ in Seoul jointly with the Korea Society of Internet Ethics to share information on
the Internet ethics issues and responses of different countries. At this symposium, not only
great scholars of Korea, but also famous foreign scholars in Internet ethics, such as Prof.
Charles Ess of the University of Oslo (Norway), Prof. Michael Zimmer of the University of
Wisconsin-Milwaukee (USA), Dr. Arkadiy Kramer, Chair of the Russian Association of Networks
& Services, Prof. Yoshinori, Ezawa of Kansai University (Japan) and Prof. Peng Hwa Ang of
Nanyang Technological University (Singapore) were invited. They all gave presentations on the
emergence of Internet ethics, their necessity, the Internet ethics problems of different countries
and their responses, and participated in panel discussions featuring open Q&A sessions.
4) Online Protection of Children
The diffusion of the Internet enriches the lives of children and youth by providing them with
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opportunities to access limitless information as well as enjoy a rich cultural life including on-
line education, games, videos and music, but also exposes them to a variety of social dysfunc-
tions and detrimental content. In the online world, children are exposed to an increasing varie-
ty of risks that are getting more serious day after day, such as distribution of illegal contents,
cyber violence, pornography, online game addiction and online frauds.
To protect children and youth from illegal and harmful contents in the ever changing broad-
casting and communication environment, the Korea Communications Standards Commission
built its Green I-Net (www.greeninet.or.kr) in 2008, and has since been providing programs to
respond to harmful information on the Internet, such as supporting the filtering of information
harmful to teenagers, grading information harmful to youth, preventing infringement of cyber
rights, and managing Internet information usage time. The government also formed an emer-
gency response hotline council consisting of 30 Internet service providers like portals, P2P and
web-based storage/services to prevent the distribution of illegal and harmful information on
the Internet in a bid to monitor obscenities like child pornography. As a result, Internet pro-
viders like portals reinforced their monitoring to prevent youth from uploading obscene materi-
als, and conducted strict self-inspection to check whether affiliated contents are legal or not.
C. Internet Security
1) Information Security
2012 witnessed a variety of security threats, and intrusion incidents continuously occurred.
Hacking of enterprises with the aim of stealing personal information, and DDoS (Distributed
Denial of Service) attacks targeting game companies, portals and DNS servers continued
throughout 2012, and sophisticated phishing attacks, which induce financial information leaks
and payments, resulted in direct financial losses.
To do its part in suppressing such attacks, the MSIP and the KISA operate the KrCERT/CC
(Korea Computer Emergency Response Team Coordination Center) to detect, analyze and re-
spond to signs of abnormal web traffic in advance, prevent intrusion incidents, analyze dam-
aged systems and malicious codes, establish countermeasures, and quickly respond to in-
trusion incidents jointly with related agencies to prevent proliferation of damages.
Part 3. Utilization /85
【Figure 3-2-2 】The intrusion incident response system of KrCERT/CC
KISA
To prevent the occurrence of zombie PCs and infection of PCs with malicious code, the gov-
ernment constantly hunts for the source of malicious codes and deletes them as quickly as
possible. Also, the national PC cyber monitoring system opens a popup window on zombie PCs
to inform their user that their PC had been infected and provides them with a dedicated
antidote.
2) Personal Information Protection
According to the ‘2012 Information Security Survey’ conducted by KISA, 9.9% of Internet
users aged between 12 and 59 experienced damage due to an invasion of personal information
and privacy, and the average number of times they experienced such damage was 3.2. These
figures are down by 0.8%p and up by 0.6 times from 2011 respectively. Speaking of the types
of damage due to personal information and privacy invasion, more than half of the respondents
mentioned personal information being leaked due to :
∙ neglect of the service provider (55.3%),
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∙ the service provider using the personal information for a purpose other than the original
purpose or providing it to a third party without the consent of the subject (32.7%),
∙ the service provider collecting personal information and using this information for the pur-
pose of telemarketing without giving notice or enrolling membership without giving notice
(30.1%),
∙ game items, cyber money or characters being stolen due to stolen IDs and passwords (15.1%),
∙ failing to enroll in a website or incurring economic damage as a result of a stolen resident
registration number (12.4%).
As the amendment to the Act on Promotion of Information and Communications Network
Utilization and Information Protection, Etc., which reinforces personal information protection in
information and communication, went into effect in August 2012, various programs regarding
personal information use and protection came into being. Accordingly, information and commu-
nication service providers are prohibited, in principle, from collecting and using the resident
registration number of the user unless the personal identification authority or law permits, and
various new systems, such as the personal information expiration system, the personal in-
formation usage notification system, and the notification and reporting of personal information
leak to minimize the damage, were introduced.
The biggest change to the personal information protection policies due to the amendment of
the Act on Promotion of Information and Communications Network Utilization and Information
Protection, Etc. is the prohibition of the information and communication service providers from
collecting and using resident registration numbers (RRN) on the Internet. The collection and use
of RRNs was prohibited from August 2012, and the RRNs already in possession were to be de-
stroyed within two years after the date of enforcement. Accordingly, the KCC and the KISA
opened the ‘Internet RRN Clean Center’ in May 2012 to support the RRN restriction policy.
They also support laws on restriction of collection and use of RRN, technology counseling, RRN
conversion support for small businesses, and provision of alternative RRN.
3) ☎118 Service
KISA began to provide its ‘☎118’ service on January 18, 2010. This service collects com-
plaints on hacking, viruses, personal information invasion, SPAM and inconveniences experi-
enced during the use of the Internet, provides counseling and handles complaints 24 hours a
day throughout the year. ‘☎118’ not only receives reports on various damages, such as PCs
Part 3. Utilization /87
infected by viruses, unauthorized collection and use of personal information, and continuous
reception of SPAM, but also inquiries on personal identification on the Internet, micropayment
damages, and domain names. Citizens experiencing inconvenience or having questions regard-
ing the Internet can simply call this number anytime for a quick answer.
4) Professional Manpower Development
As damage to the economy and social fabric is worsening due to recent sophisticated in-
formation intrusion incidents, public interest in information protection is sharply increasing.
Accordingly, the government is emphasizing the necessity of fostering information protection
professionals and enhancing citizens’ awareness of information protection to reduce the un-
necessary social costs of cyber threats, and reinforce the ability to proactively respond to so-
phisticated information intrusions. For example, the government has developed and provides
systematic information protection education programs for ordinary citizens, and carries out var-
ious educational projects targeting those working in the knowledge information security in-
dustry to reinforce their expertise. Also, more recently, the government has expanded its cus-
tomized information protection education to various groups, such as college students, ordinary
citizens and public officials interested in information protection.
To enhance the level of information protection and Internet ethics, the government is provid-
ing various education programs, such as its information protection lecture tours for ordinary
citizens and security managers in enterprises, and professional education for diffusion of in-
formation protection knowledge. The general curriculum is provided in the form of a national
lecture tour in which students can select the courses they want from among 7 modules (i.e.
understanding of information protection, recent trends in security, prevention of internal in-
formation leaks, etc.) so that customized education can be provided. The professional courses
are offered in the form of practical training with a curriculum consisting of core contents that
information protection experts need (such as how to respond to a DDoS attack, network
breaching and web hacking) and lectures on the recent trends in security technology. In 2012,
32 sessions of the ‘basic education’ and 22 sessions of the ‘professional education’ were car-
ried out with a total of 4,040 people being trained.
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3. Internet Related Laws
Internet related legislation can be mainly divided into laws related to the Internet infra-
structure and usage environment (distribution of and access to the Internet, manufacturing and
distribution of information systems like terminals and storage units, Internet address resource
management, electronic payment means, communication billing, digital signatures, e-Documents,
information security, etc.) and laws related to Internet usage/utilization (e-Commerce, e-Banking,
e-Learning, online games, online contents, IPTV, Internet media, location-based information
services, u-Health, e-Government, u-City, etc.). They can be further classified into laws related
to the design and building of Internet infrastructure, Internet information security, Internet in-
dustry promotion, and Internet user protection.
【Table 3-3-1 】Internet related laws (as of May 2013)
Type Key related laws
Design and building of Internet
infrastructure
Telecommunications Business Act, Framework Act on Telecommunication, Internet Address Resources Act, Framework Act on National Informatization, Act on Promotion of Information and Communications Network Utilization and Information Protection, etc., Digital Signature Act, etc.
Internet information security
Act on the Protection of the Information and Communications Infrastructure, Act on the Promotion of the Information and Communications Network Utilization and Information Protection, etc., Electronic Government Act, Act on Prevention of Divulgence and Protection of Industrial Technology, etc.
Internet industry promotion
Information and Communications Technology Industry Promotion Act, Framework Act on Electronic Transactions, Electronic Financial Transactions Act, Electronic Trade Facilitation Act, Contents Industry Promotion Act, e-Learning Industry Development Act, Game Industry Promotion Act, Act on the Promotion of Newspapers, etc., Internet Multimedia Broadcast Services Act, Act on the Protection, Use, etc. of Location Information, Act on the Construction, etc. of Ubiquitous Cities, etc.
Internet user protection
Act on the Promotion of the Information and Communications Network Utilization andInformation Protection, etc., Framework Act on National Informatization, Protection ofCommunications Secrets Act, Personal Information Protection Act, Use and Protection of Credit Information Act, Copyright Act, Act on the Protection, Use, etc. of Location Information, Act on Consumer Protection for Electronic Commerce Transactions, etc., Electronic Government Act, Act on Reporting and Using Specified Financial Transaction Information, Special Act on the Refund of Damages from Telecommunication Financial Scams, etc.
Legal Knowledge Information System (compiled), likms.assembly.go.kr/law
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Name Date of Enactment・Revision Description
Framework Act on National
Informatization
Partial Amendment(March 22, 2013 Passed by
the National Assembly,March 23, 2013 Announced)
∙ As the Government Organization Act was amended, the Minister of Security and Public Administration was replaced by the Minister of Science, ICT & Future Planning to take charge of national informatization.
∙ The President's Council on Informatization Strategies was abolished.∙ The Chairmanship of the Chief Information Officer Council was
changed to be co-chaired by the Minister of Science, ICT & Future Planning and Minister of Security and Public Administration.
Framework Act on National
Informatization
Partial Amendment (April 29, 2013 Passed by the
National Assembly, May 22,2013 Announced)
∙ Informatization plans were reflected in large-scale investment proj-ects (Article 13)
∙ Plans to prevent and eliminate Internet addiction were estab-lished and a certification system was introduced (Article 30, and Articles 30-2 through 30-8 were added)
∙ The certification system for enhancing information accessibility of the disabled and elderly was introduced(Articles 32-2 through 32-4 were added)
∙ Sound information and communication ethics was established(Article 40)
Electronic Government Act
Partial Amendment(February 26, 2013 Passed by the National Assembly, April 5, 2013 Announced)
∙ Regulations for consigning management of e-government projects to experts (Article 64-2 was added)
∙ Duties of the e-government project manager, etc. (Article 64-3)
Electronic Financial Transaction Act
Partial Amendment (April 30, 2013 Passed by the
National Assembly,May 22, 2013 Announced)
∙ This law was not applied to financial companies not conducting electronic financial transactions. (Article 3-3)
∙ The responsibilities of electronic financial service providers subjected to a successful security breach/hacking were clarified (Article 9-1)
∙ Information technology plans were established and submitted(Article 21-4 was added)
∙ It was made mandatory to analyze and evaluate the vulnerabilities of the electronic financial infrastructure facilities (Article 21-3 was added)
∙ Electronic infringements were prohibited and responses to in-trusion incidents were defined(Articles 21-4 through 21-6 were added)
∙ Investigation of subsidiary electronic financial business operators was reinforced (Articles 40-4 through 40-6 were added)
Speaking of revision and enactment of domestic laws related to the Internet during the first
half of 2012~2013, there hasn’t been much activity due to the adjourning of the National
Assembly (May 31, 2012), the presidential election (December 19, 2012) and the reshuffling of
the government, but the agency in charge of Internet-related laws was changed pursuant to
the government Organization Act. The Internet addiction prevention and Internet accessibility
programs were guaranteed, measures were taken to respond to intrusion incidents in electronic
financial transactions, and the Game Rating Board was abolished.
【Table 3-3-2 】Revision/Enactment of Internet related laws and description (as of May 2013)
90 / Part 3. Utilization
Game Industry Promotion Act
Partial Amendment (April 30, 2013 Passed by the
National Assembly, May 22, 2013 Announced)
∙ The Game Rating Board was abolished and the Game Management Board was established (Article 16)
∙ The Game Management Board was incorporated (Article 16-2 was added)
∙ To audit and supervise the Game Management Board, the status of the auditor was changed from non-permanent to permanent(Article 17-2)
∙ The targets of the rating business consigned to the private sector were extended from online games only to include arcade games, but those games restricted to adults (i.e. prohibiting anyone under the age of 18) were excluded from consignment to the private sec-tor (Article 24-2)
∙ To consign the follow-up management authority of the Minister of Culture, Sports and Tourism to the Board, legal grounds were established (Article 42-2)
∙ The time limit for government support of the Game Rating Board was deleted (Article 5 of the supplementary provision was added)
Act on Consumer Protection for
Electronic Commerce
Transactions
Partial Amendment(April 30, 2013Passed by the
National Assembly)
∙ For small-sum transactions less than KRW50,000, in case of pre-paid mail order sales, mail order business operators will allow consumers to use an escrow service or enter into a Consumer Indemnity Insurance Contract if the consumer chooses to do so in order to pro-tect the rights of the consumers (Paragraph 1 of Article 24-3 was deleted)
Act on the Establishment and
Operation ofthe KCC
Partial Amendment(March 22, 2013Passed by the
National Assembly,March 23, 2013
Announced)
∙ Broadcasting and advertising policies, programming and evaluation policies, terrestrial broadcasting policy, broadcasting and commu-nication market research, broadcasting and communication user pro-tection, promotion of viewers‘rights, personal information pro-tection ethics, and broadcasting frequency management are stipu-lated in the duties of the KCC (Article 11-1).
∙ The provisions regarding the licensing and re-licensing of and chang-ing the license of businesses related to new media, such as a sys-tem operator business and satellite broadcasting are now included in the considerations and decisions of the KCC (Article 12-8).
MOLEG (compiled), www.law.go.kr
Part 3. Utilization /91
4. International Cooperation
A. Internet Governance
One of the results of the ITU-WCIT (World Conference on International Telecommunications)
meeting held in December 2012 was that Internet governance emerged as an important issue.
Since then, the role of the government in Internet governance and decision-making processes
attracted public attention, and at the WTP (World Telecommunication/ICT Policy Forum), held in
May 2013, among the 6 core agendas addressed, Internet governance-related issues, such as
the ‘multi-stakeholder model’ and reinforced cooperation, and the ‘expanded role of the gov-
ernment in Internet governance’, proposed by Brazil, were intensively discussed. Meanwhile,
the ICANN (Internet Corporation for Assigned Names and Numbers), which sided with the pri-
vate-centered decision-making structure, established plans to expand the role of the govern-
ment in the decision-making process, such as establishment of the relationship between the
board of directors and the GAC (Government Advisory Group), and improvement of the proce-
dure for GAC participation in the policy development process. In this way, recent international
discussions on Internet governance are focused on the Internet governance decision-making
system based on the multi-party cooperative model and the role of the government in the model.
Internet governance based on the multi-party cooperative model has been recently discussed
in Korea as well. The ‘Korea Internet Governance Alliance’, which was launched in April 2012,
hosted the 2nd Korea Internet Governance Forum at Konkuk University last May where it an-
nounced current discussions on Internet governance in the international community, and of-
fered an opportunity to freely discuss the direction of Korea’s future responses. Also, as
Internet use in the Asia-Pacific region has been increasing sharply the APIGF (Asia-Pacific
Internet Governance Forum), which was established to identify issues reflecting regional char-
acteristics and respond to changes in international Internet governance, is scheduled to be
held in Songdo, Incheon in September 2013.
92 / Part 3. Utilization
B. Cooperation with International Organizations
Countries around the world and many international consulting groups began to take interest
in the enormous influence of the Internet. The original work scope of the ITU was limited to
communication, but as the scope of communication has expanded with the passage of time,
member countries have been debating constantly the extent to which the meaning of commu-
nication stipulated in the charter of the ITU must be expanded and how the ITU will participate in
the discussions on the Internet, which have been spreading organically and multi-dimensionally.
The OECD has paid attention to the creation of the ‘new economy’ by using the term
‘Internet economy’, and predicted that it would lay the foundation for future economic activities.
Not only the OECD, but also other international organizations are taking interest in the Internet
economy. In particular, many developing countries are considering ICT (information & communi-
cation technology) as being the foundation for future economic growth, and are interested in
the Internet and ICT technology in terms of fostering both an Internet economy and knowl-
edge-based economy. As the influence of the Internet grows, countries around the world and
many international organizations are engaged in heated debates to determine the direction of
future Internet policies and ensure the development of the Internet.
C. Supporting Overseas Exports
1) Global Marketing Support
To proactively respond to the changes in the global information, communication and broad-
casting market environment, the MSIP and the KISA are working hard to lay the foundation for
making inroads into overseas markets and cooperate with countries around the world based on
the global ICT market forecast and opinions of the industry. They support overseas consulting,
and hold overseas road shows and broadcasting contents showcases.
Before building information, communication and broadcasting systems, they study the legal
systems, markets and technologies of the target countries, and provide overseas consulting to
analyze the technological and economic feasibility and expected benefits. This consulting serv-
ice has helped foreign countries adopt Korean technologies and services at an accelerated
pace, and provided various overseas consulting services in 2012.
Part 3. Utilization /93
【Table 3-4-1 】Overseas consulting in 2012
Country Project Overseas partner Project period
Rwanda Government security Development Commission 4. 25 ~ 10. 24
Kazakhstan Radio management systemTelecommunication Technology
Support Analysis Center4. 25 ~ 9. 25
Belarus Emergency rescue system Ministry for Emergency Situations 7. 11 ~ 12. 31
IraqGovernment satellite communication
networkDepartment of Telecommunication 7. 13 ~ 11. 30
KISA
KISA provides face-to-face consulting and demonstrations of technologies in countries wish-
ing to introduce the outstanding services and technologies of Korea, and hosts overseas road
shows to reinforce the foundation for entry into the markets of those countries.
In 2012, the agency reinforced its market exploration and export consulting to provide prac-
tical business support for SMEs, and hosted road shows tailored to the needs of domestic
companies wanting to make inroads into overseas markets and in consideration of the target
countries’ intentions to introduce Korean technologies and services, thereby helping Korean
technologies and services penetrate overseas markets. To date, KISA has hosted a total of 6
overseas road shows in the Commonwealth of Independent States, key Southeast Asian coun-
tries, and countries interested in the strategic products of Korea.
2) Support for SMEs Marketing Efforts
KISA has provided comprehensive support to help SMEs solve the problems they face related
to information, communication and broadcasting as well as Internet companies with all their
export needs from overseas expansion planning and execution to follow-up management.
First, the agency appointed experts on trade data, overseas market research, certification in-
formation, contracts and laws as consultants, and operated an overseas expansion consulting
center within the agency to provide continual consulting services both online and in person
with regard to their difficulties trying to penetrate overseas markets. Second, KISA selected
promising SMEs with potential for expansion into overseas markets, and made sure that they
would receive one-on-one customized consulting from consulting companies well versed in
those countries which the SMEs hope to make inroads into.
94 / Part 3. Utilization
3) CONEX Operation
The MSIP and the KISA have been providing timely and accurate information on overseas
market trends for domestic enterprises and information, communication and broadcasting serv-
ice providers who hope to penetrate overseas markets but have difficulties due to a lack of
relevant information.
To this end, the agency is using the information, communication and broadcasting overseas
information system (CONEX) to select countries and products with the most potential for suc-
cess in the market based on the demands of local enterprises, such as the countries they want
to penetrate and countries with information needs. In particular, in 2009, KISA started to grad-
ually increase the number of countries of which they collected information. In 2013, the agency
increased the number from 40 to 58 reflecting its information, communication and broadcasting
strategy and market research. Also, KISA provides special in-depth reports and regular reports
covering 14 strategic products, such as smart 4G, mobile TV, Internet-based TV and broad-
band, as well as information on overseas expansion, which individual companies cannot obtain
easily. KISA provides this information to help domestic companies with their effort to make in-
roads into overseas markets in a practical manner.
To provide overseas market information conveniently, KISA provides an online web service
named CONEX (http://conex.kisa.or.kr). Particularly, in 2012, to keep pace with the diverse con-
nection environments of users, the agency built a website for mobile access (http://m.conex.or.kr)
that has an especially user-oriented environment, and in 2013 it is planning to improve the
design and search capability to make it easier to find desired information.
In addition, KISA sends online newsletters to subscribers twice a week so they can receive
overseas market data more quickly. Also, as new information appears, the agency informs sub-
scribers via social networks like Twitter and Facebook so they may have access to the latest
information immediately.
96 / Appendix
List of ISPs
(as of June 2013)
No. Company Name Phone No. URL
1 GANGWONNET +82-33-241-4435 www.igbn.co.kr
2 GTP +82-31-500-3004 www.gtp.or.kr
3 KCNNET +82-63-850-8575 www.kcn.tv
4 NOWCOM +82-2-590-4073 www.nowcom.co.kr
5 NIBDIGITAL +82-32-882-9660 www.nibtv.co.kr
6 Netropy +82-70-7432-2345 www.netropy.co.kr
7 VAAN +82-2-2016-0841 www.nexg.net
8 KOREAONLINE +82-2-2039-7749 www.kol.net
9 DOTNAME +82-70-7090-0828 www.dotname.co.kr
10 HIPASS +82-42-624-5181 www.daejon.com
11 DUZON +82-2-6233-5393 www.duzon.com
12 DICN +82-51-831-5775 www.dicn.net
13 DURUAN +82-2-6330-8044 www.duruan.co.kr
14 DREAMX +82-2-6007-6009 www.dreamline.co.kr
15 LDCC-SAFEGUARD +82-2-2626-3933 www.ldcc.co.kr
16 HCLC +82-2-831-0510 www.funp.co.kr
17 VTOPIA +82-2-563-2245 www.vtopia.co.kr
18 SAMSUNGSDS +82-70-7015-6504 www.sds.samsung.co.kr
19 DIRECT-HOSTING +82-2-2029-0342 www.sds.co.kr
20 SCSNET +82-55-740-3121 www.iscs.co.kr
21 SEJONGNET +82-2-1688-7380 www.sejongtelecom.net
22 SMILESERV +82-70-7549-7062 www.1000dedi.net
23 SSEN +82-2-3397-1665 -
24 SINC +82-2-3397-1207 www.sinc.co.kr
25 SIMPLEXINTERNET +82-2-6276-1572 www.simplexi.com, www.cafe24.com
26 CYBERONEIDC +82-2-829-3066 idc.cyberone.kr
27 CDNETWORKS +82-2-3441-0491 www.cdnetworks.co.kr
28 CNM +82-70-7410-4703 www.cnm.co.kr
Appendix /97
No. Company Name Phone No. URL
29 CMBDONGBU +82-53-744-5700 cmbtg.tv
30 CMBSUSUNG +82-53-744-5700 cmbtg.tv
31 CST21 +82-2-573-9262 tel.cst21.com
32 CMBKWANGJUNET +82-62-461-9684 www.cmbkj.tv
33 CMBI-NETDJ +82-70-8110-7395 www.icmb.tv
34 CMBPLUSONE +82-70-8125-0119 cmbds.tv
35 CMBI-NETHK +82-70-8110-7144 -
36 CJ-HELLOVISION +82-2-2600-2941 cjyc.net
37 DITIZONE +82-70-8145-1031 www.abn.co.kr
38 KPIN +82-2-2273-9744 www.kpin.net
39 INET +82-70-8220-7748 www.inet.co.kr
40 INDICLUB +82-2-1566-5670 www.ilinkkorea.co.kr
41 JIGUNET +82-2-420-8241(125) www.iosystem.co.kr
42 IP4NET +82-2-6925-0042 www.ip4.co.kr
43 broadNnet +82-80-8282-106 www.skbroadband.com
44 SK-NET +82-2-6400-4297 www.sk-net.com
45 SK-TELECOM-NET +82-2-6100-4573 sktelecom.com
46 SKTelink +82-70-7400-1716 www.sktelink.net
47 NHN-NET +82-31-600-6045 www.nhncorp.com
48 GIN +82-2-2156-9000 www.kr.ntt.com
49 ELIMNET +82-2-3149-4923 www.elim.net
50 LXN +82-2-887-6112 www.lxnetworks.co.kr
51 LG-NET +82-2-6710-3486 www.lgcns.com
52 PUBNETPLUS +82-2-2089-7755 www.pubnetplus.ne.kr
53 LGTELECOM +82-2-6290-1680 www.lguplus.com
54 BORANET +82-2-6928-3087 www.dacom.net
55 KIDC +82-2-2086-2924 www.kidc.net
56 Xpeed +82-2-6928-3087 www.powercomm.com
57 YBN +82-33-749-3551 www.ybn.co.kr
58 TTNet +82-2-2101-0150 www.tt.co.kr
59 OK-NET +82-2-2107-3600 www.ok-net.net
60 SHINBIRO +82-2-1666-0120 www.shinbiro.com
98 / Appendix
No. Company Name Phone No. URL
61 ONAIRIC +82-70-7897-7171 -
62 ULNETWORKS +82-2-396-0100 www.ul-net.co.kr
63 ESONET +82-2-3281-1007 www.esocom.com
64 eGIOSNET +82-2-2116-8035 www.egios.com
65 EHOSTIDC +82-2-3476-0478 www.ehostidc.co.kr
66 IIAC +82-32-741-5685 www.airport.kr
67 JCNIDC +82-70-7704-7742 www.jndinfo.com/idc
68 JNDINFO +82-31-226-9399 www.jndinfo.com
69 GDSYS +82-70-7337-7355 www.gdsys.co.kr
70 GNJ +82-70-8795-0792 gnj.kr
71 RayNet +82-2-2109-5000 www.raynet.co.kr
72 CMBMUTINET +82-41-858-0100 www.cmbtv.com
73 TELEHOUSE SEOUL +82-2-310-0461 www.kddi.co.kr
74 KINXINC +82-2-2187-6380 www.kinx.net
75 KORNET +82-2-500-6630 www.kornet.net
76 PUBNET +82-2-3674-5890 www.pubnet.ne.kr
77 KTFWING +82-31-727-1093 www.ktf.com
78 KITINET +82-2-2222-9232 www.ktn.co.kr
79 KOREACENTER +82-2-2627-6634 koreacenter.com
80 KOINS +82-2-767-7128 www.kosocm.co.kr
81 CROSSONNET +82-2-6207-6208 www.crson.net
82 WIZCDN +82-2-2015-3419 www.clunet.co.kr
83 GSD +82-70-8188-5083 www.gstv.co.kr
84 GINAMHANVITNET +82-70-8188-2082 www.tbroad.com
85 TBROADNAKDONG +82-70-8188-9089 www.digitalbusan.net
86 NAMDONGNET +82-70-8188-6092 www.tbroad.com
87 QRIXINTERNET +82-70-8188-9743 www.tbroad.com
88 digitalbusanet +82-70-8188-9089 www.digitalbusan.net
89 DONGDAEMUNCABLEINTERNET +82-70-8188-5770 www.dcncatv.co.kr
90 SAEROMNET +82-70-8188-6092 www.tbroad.com
91 QRIXNET +82-70-8188-5083 -
92 TBROAD +82-70-8188-1088 www.tbroad.com
Appendix /99
No. Company Name Phone No. URL
93 VITSSEN +82-70-8188-3082 www.tbroad.com
94 JEONJU-HANVITNET +82-70-8188-8085 www.tbroad.com
95 CHUNGBUVITSSEN +82-70-8188-7086 www.tbroad.com
96 TBROAD-HANVIT +82-31-480-9449 www.tbroad.com
97 TCNINTERNET +82-53-254-2940 www.tcnhinet.com
98 PIRANHA +82-2-1644-7568 www.turbonet.co.kr
99 HINETWORKS +82-2-1544-4450 www.hilineisp.net/
100 HAIONNET +82-2-3281-3456 www.haion.net
101 KREONet +82-42-869-0707 www.kreonet.re.kr
102 KREN +82-2-880-5364 www.kren.ne.kr
103 EDUNET +82-2-2118-1471 www.keris.or.kr
104 KDATA +82-31-234-0445 -
105 KDTIDC +82-2-2062-7671 www.kdtidc.com
106 KTNET +82-2-6000-2705 www.ktnet.co.kr
107 SIGNGATE +82-2-360-3227 www.signgate.com
108 KOREN +82-2-2131-0466 www.ngix.ne.kr
109 SEODAEGUCLEANNET +82-53-567-6000 www.scs5.co.kr
110 PCBNET +82-54-275-3581 www.pcbtv.net
111 CABLENET +82-70-8145-7747 www.kctvjeju.com
112 UPASS +82-61-270-1542 www.hbc24.co.kr
113 KCTVNET +82-62-417-6070 www.kctv.co.kr
114 URINET +82-70-8145-6300 jbclife.com
115 GCS +82-70-8145-6143 www.gcs.co.kr
116 NARA-CABLE-TV +82-31-894-0122 www.naraspeed.net
117 SAERONET +82-70-8109-4694 www.saeronet.com
118 HCN +82-70-8109-1656 www.hcn.co.kr
119 HYOSUNGCDN +82-2-6288-6507 www.hyosungitx.com
120 JCN +82-52-928-0025 www.jcntv.co.kr
100 / Appendix
Abbreviations
3GPP 3rd Generation Partnership Project
6NGIX IPv6 Next Generation Internet eXchange
A
APII Asia Pacific Information Infrastructure
ASEM Asia Europe Meeting
B
BcN Broadband convergence Network
BRM Business Reference Model
C
CA Carrier Aggregation
CDNI CDN Interconnection
CERT Computer Emergency Response Team
CP Contents Provider
CRM Customer Relationship Management
D
DCN Dynamic Circuit Network
DDoS Distributed Denial of Service
DMB Digital Multimedia Broadcasting
DOCIS Data Over Cable Service Interface Specification
E
E-PON Ethernet Passive Optical Network
ESNet Energy Science Network
F
FedRAMP Federal Risk and Authorization Management Program
Appendix /101
FIA Future Internet Architecture
FIND Future INternet Design
FPS First-Person Shooter
FTTH Fiber To The Home
G
5G Fifth-Generation
G2B Government to Business
GE Gigabit Ethernet
GEANT Gigabit European Advanced Network Technology
GENI Global Environment for Network Innovations
GEPON Gigabit Ethernet Passive Optical Network
GLORIAD GLObal RIng network for Advanced application Development
GPS Global Positioning System
gTLD generic Top Level Domain
H
HFC Hybrid Fiber Coax
HTML5 HyperText Markup Language version5
I
IAR Internet Address Resource
ICT Information & Communication Technology
IDC Internet Data Center
IGF Internet Governance Forum
IoT Internet of Things
IP Internet Protocol
i-PIN Internet Personal Identification Number
IRNC International Research Network Connections
IX Internet eXchange
K
KINX Korea Internet Neutral eXchange
KIX Korea Internet eXchange
KOREN KOrea advanced REsearch Network
102 / Appendix
KORNET KORea-telecom interNET
KREN Korean Research & Education Network
KREONET Korea Research Environment Open NETwork
L
LBS Location Based Service
LTE Long Term Evolution
M
M2M Machine to Machine
MIMO Multiple Input Multiple Output
MoIP Multimedia over Internet Protocol
N
NFC Near Field Communication
NGN New Generation Network
NII National Information Infrastructure
O
OS Operating System
OSCARS On-demand Secure Circuits and Advanced Reservation System
P
PON Passive Optical Network
PPSP P2P Streaming Protocol
R
R&D Research and Development
RF Radio Frequency
ROADM Reconfigurable Optical Add-Drop Multiplexer
S
SDN Software Defined Network
Appendix /103
SNS Social Network Service
T
TCP Transmission Control Protocol
TDM Time Division Multiplexing
TEIN Trans Eurasia Information Network
TPE Trans-Pacific Express
TPS Triple Play Service
TRS Telecommunication Relay Service
U
UAAG User Agent Accessibility Guidelines
UBcN Ultra Broadband convergence Network
UCC User Created Contents
UFB Ultra-Fast Broadband initiative
UHDTV Ultra High Definition Television
UI User Interface
ULP Ultra Low Power
USB Universal Serial Bus
USN Ubiquitous Sensor Network
V
VM Virtual Machine
VOD Video On Demand
VoIP Voice over Internet Protocol
W
WiBro Wireless Broadband
Wi-Fi Wireless-Fidelity
2013 Korea Internet White Paper
Edited by
Korea Internet & Security Agency (KISA)
Vice President Jae Myung Lim ([email protected])
General Manager Ji Yul Yoo ([email protected])
Researchers Hwa Jo ([email protected])
Do Yeon Hwang ([email protected])
Published by
Ministry of Science, ICT and Future Planning (MSIP)
Complex-Gwacheon, 47, Gwacheon-ro, Gwacheon-si, Gyeonggi-do,
Korea, 427-700
Tel : +82-1335
http://www.msip.go.kr
Korea Internet & Security Agency (KISA)
Daedong B/D, Garak-dong 79-3, Songpa-gu, Seoul, Korea, 138-803
Tel : +82-2-405-4118
http://www.kisa.or.kr
Printed by
Myung-Jin C&P Co., Ltd
Tel : +82-2-2164-3000
Fax : +82-2-2164-3020
All rights reserved by MSIP & KISA.