Korean TMT (Technology, Media, Telecoms) Sector and its Global Business Opportunities

Copyright © 2007 VEYOND PARTNERS

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This document provides an outline of a presentation and is incomplete without the accompanying oral commentary and discussion.

Korean TMT (Technology, Media, Telecoms) Sector and

its Global Business Opportunities

Yunho Chung (Veyond Partners)

Providing the Insights, Connecting the Industrywww.veyond.com

2© 2007 Veyond Partners. Strictly confidential

The future is South Korea

Tech firms try out latest in

world's most wired society

March 13, 2005

"It's still much more popular in Korea," said

Brooke Richardson, MSN lead product

manager. "It's not only that the U.S. is not so

advanced in broadband. Mobile phone usage

is not so high here either. MSN is bridging

the two worlds of PCs and mobile phones,

and Korea has that connectivity. We have

incubated some of our stuff in Korea, like

mobile instant messaging and mobile e-mail.

We have also launched services there that

the rest of the world was not ready for."

Lessons from South Korea:

When Broadband Meets the Mass

MarketIndeed, some operators are struggling to generate net

revenue growth from the switch to broadband, and

almost all countries still have a long way to go before

broadband becomes a mass-market phenomenon.

The lone exception is South Korea.

Korea’s experience has important implications for

other countries. We will focus here on three critical

questions: What has caused the rapid penetration in

Korea? How has broadband changed consumer

behavior? And which players are likely to make

money from broadband?

Broadband's future: Lessons from South Korea For years, the telecom industry has scrutinized developments in South Korea, where a combination of public support and strong demand has created the world's most ubiquitous broadband network. Now that the market is saturated, there are new lessons to be learned from the South Korean experience. South Korea's broadband providers can no longer rely on higher subscriptions to fuel profitability. Instead, they must look for new growth engines, such as home networking and faster broadband, and develop skills beyond building and running a vast network. Their triumphs and failures will continue to provide lessons for the industry in other countries.

USTR Foreign Trade Barriers –

Korea2004STANDARDS, TESTING, LABELING AND

CERTIFICATION

The U.S. government is seriously concerned

that a pattern of exclusionary practices is

starting to emerge

in the setting of standards for new

technologies in the field of next generation

mobile communications.

Telecommunication

As one of the world's most advanced

telecommunications markets, Korea is

actively commercializing a

variety of cutting-edge wireless technologies,

such as IMT 2000, cdma2000 1ev-do, and W-

CDMA, as well as introducing terrestrial and

satellite-based digital TV broadcasting.

South Korea leads the wayJuly 28, 2004"I didn't realize how much the Web had to offer until I got to Korea," said Renck, a programmer by training. "I couldn't appreciate it until I got here and saw what true high-speed access does to change your perception of how fast information truly moves.“…Cumulative revenue from online content has similarly exploded. Companies that provide online games and services like the Cyworld blogging site have penetrated all segments of society and become a national obsession. Corporate executives chronicle their daily lives through blogs.

Korea, the Digital Laboratory of the Globe

CEO of Google, Eric Schmidt



If you are in Korea…

Media (TV)

Banking Entertainment

Commerce(Payment)

Coupon

Telemetics



déjà vu

Déjà vu is the feeling that you have already experienced the things that are happening to

you now.



1. What is the most well known Social Networking Service in Korea?



2. Is Google the No.1 Search Engine in Korea?



3. Which company first started the commercialization of Mobile TV?

2006 will be a landmark year in the development of mobile TV, with the first commercial broadcast overlay networks outside Korea set to deliver live TV to mobile devices.



déjà vu ?



Korea. Here is future of the TMT world.

Mobile TV

WiBro(mobile WiMAX)

Web2.0

high-endhandset

Game(mobile & online)

N/WEquipment

IPTV

unifiedcommunication

m-finance

mobile OS/platform

mobileAdvertisement

FMC

m-music

NON-EXHAUSTIVE

Capability of Korean TMT

advanceddeveloped

Glo

bal Pla

yers

’ C

once

rn

high

low

Advanced Capability of Korean TMT

=High Concern of Global Players

Wireless N/WInfra

Broadband N/WInfra

RFID



MobileTV

2006 was a landmark year in the development of mobile TV, with the first commercial broadcast overlay networks outside Korea set to deliver live TV to mobile devices.Moreover, mobile TV of Korea will be the strongest ecosystem in the world.

Mobile TV



Web 2.0

Web2.0

Targeting

Text Multimedia

Mass

Niche

Contents Type

Technology heaven in S Korea (BBC, November 2006)

Cyworld is an online social network in the same vein as Myspace, but with penetration rates that would make Rupert Murdoch green with envy. An astonishing 90% of Korean twentysomethings have a cute or not-so-cute personal avatar, living in its own 3D homepage. There is an air of impatience about the Koreans - they want the latest technology, and they want it now. An overcrowded, impatient, technological playground - Seoul is a fascinating place, and a great city for Click to play around in.



Mobile WiMAX

MobileWiMAX

International Telecommunication Union Approves WiMAX Technology as New IMT-2000 Standard

Portland October 19, 2007 The WiMAX Forum is pleased to recognize the decision of the Radiocommunication Sector of the International Telecommunication Union (ITU-R) to include WiMAX technology in the IMT-2000 set of standards. This decision is of global importance to operators who look to ITU to endorse technologies before they invest in new infrastructure. The decision to approve the WiMAX Forum's version of IEEE Standard 802.16 as an IMT-2000 technology significantly escalates opportunities for global deployment, especially within the 2.5-2.69 GHz band, to deliver Mobile Internet to satisfy both rural and urban market demand.



Online Game

OnlineGame

•http://www.ncsoft.com/jpn/index.asp•LINEAGE, Guildwar (MMORPG)

•http://www.nhncorp.com/•7Poker, TETRIS, etc. (Web Board Game)

•http://www.gravity.co.kr/jp/index.asp•Ragnarok (MMORPG)

•http://www.neowiz.com/eng/•Community-based web board game

•http://www.webzen.co.kr/•MU (MMORPG)

•http://www.actoz.com/•1000year, Legend of MIR (MMORPG)

Leading Online Game Company

0

200300400500600700 628

465353

267

36

KoreaUSA

Europe Taiwan Australia

15882100

JapanChina

Unit: Million$

Online Game Market Worldwide (’04)



VEYOND PARTNERS’ main business model is to provide valuable Research/Insights/ Trends/Knowledge on Korean TMT (Telecom, Media & Technology) industry to the World.

It also provides the Professional Connecting Service and Consulting/Advisory Services to Global clients who want to utilize from Korea’s advanced Digital Economy experiences.

VEYOND PARTNERS is consisted with seasoned professionals having extensive knowledge and experiences on TMT Sector gained from global companies such as Accenture, Arthur D Little, AT Kearney, Yahoo, Hyundai and KTF.

Veyond Partners providing the one week Korean TMT session +benchmark tour named ‘ Journey to Korean Digital Media’ to Norwegian Media

Professionals

Veyond Partners



Why Veyond Partners?

Our service portfolio which includes Research, Consulting, and Venturing, rightly reflects the logical order of clients’ needs at each stage of the business.

Veyond Partners provides its clients with insightful and perspicacious market intelligence through its research service by leveraging its Korean roots.

By offering logical, proven, and practical solutions, Veyond Partners consulting helps its clients to solve business problems regardless of its nature such as what to, whether to and how to do so.

Further, Veyond Partners is willing to be long term partners throughout the clients’ venturing; it either helps to find the right partner in Korea or becomes a partner itself by utilizing its extensive business networks.

Veyond Partners stands by its clients as an advisor who is independent yet actively participating.



Veyond Partners’ Unique Value

Global Perspective&

Communication

Global Perspective&

Communication

Our members mostly have great career experiences gained from well established firms such as Accenture, AT Kearney, ADL, KTF, Yahoo, Hyundai to name a few.

Most of them are post graduate level educated from prestigious schools either from Korea/Abroad

All of them are energetic enough to venture out their well established previous careers and receiving strong reputation from their peer group.

Members of our firm come from diverse back grounds and industries such as Finance, Telecom, Technology, Marketing, Internet

Most of them are possessing significant industry experiences allowing them to have sufficient professional/personal networks which are really important to make the work happen

Expertise &

Professional Network

Expertise &

Professional Network

Our business is focusing not in Korean Local market as our primary strategy is providing professional services to Foreign Clients who want to investigate Korean market

We do understand not only the Korean market but also consider the delicate situation of our foreign clients and hence try to create our products in International perspective

Unlike many typical Korean workers we are confident and comfortable with communicating in ‘English’ as our working language is not Korean but English

We already have done several projects/assignments in English and have received excellent feedbacks from our business partners who were from Swiss, UK, Hong Kong, China, Norway

Also we are possessing great communication and project management skills in Korean business settings as most our members are ex-management consultants in major consulting firms



Veyond Partners’ Work - Consulting

ConsultingConsulting

Research

Conference

Thought Leadership

Venturing Advisory

• Developed New Media Channel business strategy focusing on Advertisement in order to enhance SK corporation’s Marketing Platform and best utilize its Marketing tool ‘OK Cashbag’

• Created OK Cashbag’s Mobile Marketing strategy in conjunction with SK Telecom’s 3rd Generation network initiatives. Also developed new business models which can best utilise the Mobile features for OK Cashbag

• Created SK Telecom’s Convergence Strategy which can best utilise the resource and capabilities of SK Telecom

• USIM based Marketing Aggregator model was suggested alongside with RFID, Digital Home to the Client



Veyond Partners’ Work - Research

Consulting

ResearchResearch

Conference

Thought Leadership

Venturing Advisory

• Provided research to ADL’s Due Diligence project for Digital Cable TV focusing on assessing methodology of Cable TV’s Capability/Capex/Opex

• Made a research report for Fitch Rating on Korean 3G Mobile market focusing on its characteristics and implications to the Global TMT industry

• Developed custom research for Accenture’s project to Major Korean Mobile Network Operator identifying the benchmark cases on how MNO can move beyond its own Telecom domain

• Provided research insights to Deloitte London Office’s project on 2012 Digital Media Landscape outlook reflecting the advanced status of Korean Digital Media Market



Veyond Partners’ Work - Conference

Consulting

Research

ConferenceConference

Thought Leadership

Venturing Advisory

• Chair Speaker of Mobile TV Asia summit in Singapore, on the theme of ‘Accelerating the uptake of Mobile TV in Asia’

• Gave speech and in-depth discussions to ‘Insights and Lessons from Korea & Japan’ Round Table Conference held in London

• Delivered presentation on ‘How UGC can be understood from the Mobile perspective’ focusing Korea’s advanced status of Digital Environment*

• Moderated the ‘Transforming Digital Television: The case for IPTV’ session with the special guests from Microsoft, TeliaSonera and Zattoo TV

* Material for the Conference can be downloaded from www.slideshare.net/veyond/yunho-chung



Veyond Partners’ Work – Thought Leadership

Consulting

Research

Conference

Thought Leadership

Thought Leadership

Venturing Advisory • Co- research with Professor Jan Ondrus on the different adoption patterns of Mobile Payment depending on the regions

• Appeared on Radio Television Hong Kong’s ‘Media Watch’ program as the Expert Interview delivering the Korean Mobile TV overview and evolution

• Provided the ‘Korean Digital Media Landscape and Dynamics’ to the Norwegian Journalists who are all covering the New Media Sector

• Authored the report on Mobile TV market in Korea providing insights, trends, statistics, patterns of 2 years Commercialisation experiences of Korean Mobile TV



Veyond Partners’ Work – Venturing Advisory

Consulting

Research

Conference

Thought Leadership

Venturing Advisory Venturing Advisory

ConfidentialClient

• Facilitated the two parties looking for the right business partner for sports contents distribution

• Providing investment advices on Telecom/Media sector understanding the market dynamics and emerging technology considerations

• Providing advisory service to a Boutique Investment house who wants to invest in pre-IPO Technology/Media companies

ConfidentialClient

ConfidentialClient



Clients’ Feedback on Veyond Partners’ Work

Yunho is an extremely bright and dedicated person who runs a great company with great people. He is an excellent mentor for his young collaborators. His wonderful vision about how human capital should be valued in the consulting business is exemplary. Moreover, Yunho is incredibly well connected in the Korean industry, which makes him an excellent contact to have in Seoul

Veyond Partners arranged the insightful journey to Korean Digital Media for our group of Norwegian journalists and editors to Korea in an impressive way. Yunho Chung, Managing Partner of Veyond Partners, is clearly very well connected in the Korean telecom and media industry. He also possesses expert views of the current status of - and on the future of mobile development, and the use of broadband and wireless communication in real business. On the more private side, he is also a warm and outgoing person you can trust! I can definitely recommend Yunho Chung both as a service provider and as a business partner

Professor, Jan Ondrus

Associate Director, Staale De Lange Kofoed

Veyond Partners is a unique and competitive business partner to ADL. They are equipped with talented personnel having insights and expertise on Telecom, Media, Internet sector and are always on the edge to others. Their professional services to us played crucial roles on our assignments and we have strong trust on their advices to us. We enjoy working with them and especially the more challenging the projects their participation proves to be critical.

Head of TIME Practice, (Telecoms, Information, Media, Electronics) Seoul

Hyeoksoo Lee

Head of New Business, Yohun Song

We work closely with Veyond Partners for our new business development projects continuously and they always proved to bring the ‘Beyond Value’ to us. Their strong expertise on Digital Market coupled with great insights on Marketing Strategy provided valuable inputs on developing our new businesses. They are not limiting themselves with ‘Rigid Management Methodologies’ which I have experienced several times while working with Global Management Consulting Firms and are always creative on providing the right solutions to us. Due to their valuable support, we have close ties with them both in consulting and advisory.



Explore Veyond Partners’ Web 2.0

www.koreaninsight.com www.youtube.com/veyond www.slideshare.net/veyondwww.flickr.com/people/18405208@N00


24© 2007 Veyond Partners. Strictly confidential 24

VEYOND HAUS, 310-13Sangsu-dong, Mapo-guSeoul, 121-829, Korea

Phone 82 2 2233 4445Fax 82 2 2233 4451

Yunho ChungManaging Partner, Veyond Partners

E-mail: [email protected]: www.linkedin.com/in/yunhochung

Veyond Partners’ WEB 2.0

Blog: http://www.koreaninsight.com

Slideshare: http://www.slideshare.net/veyond

YouTube: www.youtube.com/veyondYunho Chung is Managing Partner of VEYOND PARTNERS which he founded in 2005. VEYOND PARTNERS’ main business model is to provide valuable research/insights/trends, professional knowledge services of Korean TMT (Telecom, Media & Technology) industry to the World.

He started VEYOND PARTNERS to response to the Global TMT community’s strong need to know more on Korean TMT industry as he found that there were insufficient services available to serve that needs. VEYOND PARTNERS is consisted with seasoned professionals having extensive knowledge and experiences on TMT Sector gained from global companies such as Accenture, Arthur D Little, AT Kearney, Hyundai and KTF.

Prior to VEYOND PARTNERS, Yunho worked as a Management Consultant in Accenture focusing on Communication & High Tech Industry and during his time in Accenture he has done numerous projects serving clients in Wireless, Fixed, Online Company and more. He holds Master Degree in Management from LSE (London School of Economics).

Recently He appeared in several conferences/seminar/media including Wireless World Forum, Radio Television Hong Kong, Norwegian Institute of Journalism, SK Telecom delivering the speech on mobile related topics such as Mobile TV, UGC, SNS, WiBro, Web 2.0 and Blogging.

Korean TMT (Technology, Media, Telecoms) Sector and its Global Business Opportunities

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Transcript of Korean TMT (Technology, Media, Telecoms) Sector and its Global Business Opportunities