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Social Impact & Challenge to

Knowledge and Information Society- Korean Case -

Latin America ICT Conference 2008 ( Mexico City, CINVESTAV)

October 29, 2008

Kwon Young-il (Victor Kwon) kyi@nia.or.kr

Director of e-Government Division

National Information Society Agency (NIA)

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• NCA is a non-profit agency responsible for developing national IT policy and projects in the public sector– National Computerization Act in 1986, Informatization Promotion Act of 1996

※ NCA : National Computerization Agency

* Key Role

– National IT policy and Telecommunications Network Planning– e-Government Project Management– Information Systems Audit– Information Culture & e-Capacity Education– Information Resource Management Consulting

• NCA → NIA (October 4, 2006) by revision of Basic Act on Knowledge Information Society

※ NIA : National Information Society Agency

About NIA

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Table of Contents

Korean ICT Landscape1.

ICT Policies in Korea2.

Toward Ubiquitous Society 3.

Future Direction4.

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1. Korean ICT Landscape

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Korean War(1950) → Seoul Olympic(1988) → Japan-Korea FIFA World

Cup(2002) → Present(2008)

2002 World Cup

Advanced TechnologyIncheon International Airport

Building For the Future

New Songdo City

Korea Past and Present

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Overview of Korean ICT (1)

Business Week,

The INFO TECH 100

Source: Businessweek, June, 2006

LG Electronics

Samsung Electronics

KT

LG Telecom

KTF

Company Ranking

3

5

47

73

86

Samsung Electronics

LG Electronics

Korean Stocks Listed in LSE

SK Telecom

KT

Korean IT Companies in the World

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Overview of Korean ICT (2)

Digital Opportunity

Index

Country

Korea

Denmark

DOI Rank

1

3

Japan 2

(Source : IMD Competitiveness Yearbook 2005)

“Most competitive in ICT industry among

OECD countries” (Source : OECD, 2004)

0.80

0.77

0.76

(Source : ITU, May. 2007)

US 200.66

China 770.45

The world’s first and best in ICT Infra

Technological

Infrastructure

Country

Korea

Singapore

Hong Kong

Taiwan

63.35

62.72

61.18

60.45

Rank

2

3

4

5

US 68.93 1

Broadband

Subscribers

Country

Iceland

Japan

UK

France

26.7

17.6

15.9

15.2

Rank

1

11

13

14

Korea 25.4 2

(Source : OECD, as of Dec. 2005)

% Per 100

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Overview of Korean ICT (3)

ICT Contribution to Korean Economy (2007) :

GDP (16.9%) & Export (34%)

Account for 1.5% of overall 5% Economic Growth Rate

Portion of GDP

Contribution of GDP Rate

2007 ※source : IITA, KCNTI

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“Development of ICT infrastructure”

DEC., 2006 DEC., 2006

(No. of subscribers per 100 inhabitants)

Korea : 7.2

World Average : 9.9

IT Diffusion in Korea (1)

89

30.5

34.82 million

76.3%

2007

80.4%

2007

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※Source : NIDA

34.834.133.031.629.226.324.4

19.0

10.9

0

10

20

30

40

50

1 2 3 4 5 6 7 8 9

천

1999 2000 2001 2002 2003 2004 2005 2006 2007

(24.4%)

(44.7%)

(56.6%) (59.4%)(65.5%)

(70.2%) (72.8%) (74.8%) (76.3%)

40

30

20

10

0

(M)

Introducing Competition Policy with Flat & Low TariffEncouraging Private Sector to Invest on New IT ServicesProviding Low Cost PC & Internet Training for 10 million Citizens

Government

ServiceOperator

Aggressive & Strategic Investment in ADSLe-commerce, on-line game and e-learning market

Environment Sizable Market Available due to Tech-savvy Consumers Enthusiasm in Better Education60% of Total Population living in High-rise apartment

“Success Factors in Korean Broadband”

IT Diffusion in Korea (2)

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Technology Infrastructure Category No. 6

[World Competitiveness Yearbook, IMD] (2007)

Digital Opportunity Index (DOI) No.1 among 180 countries

[ITU] (2005~2007)

e-Government Readiness Index No.6 among 191 countries

[UN] (2007)

Broadband Penetration Rate No.7 among 30 OECD countries

[OECD] (2007)

ICT Development in Korea

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2. ICT Policy in Korea

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History of Broadband Policy

Informatization Promotion Act (’95)

’95~’97 ’98~’99 ’00~’01 ’02~’03 ’04~’05

Dial-up

(9.6~56Kbps)

Year

Policy &Promotion

Service

Tech-nology

Introduction of Broadband Internet (’98)

IT Training for 10 million (’00)

BcN Projectlaunch (’04)BB Apartment

Emblem(’99)

Free Internet Service to the schools (’00)

Surpass

10million BB

Internet Users

(’02)

BB mobile Internet platform (WiBro) (’06)

Privatization of KT (’02)

ADSL/Cable Modem

(2Mbps)

VDSL

(8Mbps)

KII-G Project completion(’05)

FTTx / LAN

(50Mbps)

Government Investment : 4.37 billion USD(1995~2005)

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By 2007, Nationwide Broadband Networks established covering 99% of the

population

- 90% of households have access to Broadband Internet (Over 2Mbps)

- 38% of households have access to Ultra-Broadband (Over 50Mbps)

Broadband at Home

National Broadband Status

Seoul2

Seoul1

Busan

Kwangju

Daegu

Daejeon

2000

3,950

2001

7,810

2003

11,180

Household Subscribers

2002

10,410

(Unit: thousands)

Broadband Penetration at Home

…

2006

13,900

2007

14,440

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Broadband Internet access for all primary and secondary schools

- Promoting informatization of schools and creating a foundation

of digital education

- Covered All Schools Nationwide with Broadband since 2001

Broadband at School

396

4,252

6,464

Under 2M : 396 (4%)

2M to 10M : 4,252 (38%)

Over 10M : 6,464 (58%)

96% of schools used over 2Mbps

Bandwidth (Speed)

98% of schools connected to fiber-optic cables

Access Method

10,866

184

62

Fiber-Optic Ethernet : 10,866 (98%)

Micro Wave : 184 (1.5%)

Satellite : 62 (0.5%)

※ Schools pay only 20% of the commercial price

Fiber-Optic Ethernet

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Bridge the digital divide for rural areas by 2008 (70 million USD, 2years)

- Broadband network construction for all rural areas in progress

Broadband Divide at Rural Areas

By 2002, broadband

Internet home pass

ratio was 81% in rural

areas

By 2005, broadband

Internet home pass ratio

was 84% in rural areas

By 2007, Broadband

Internet home pass ratio

will be 99% in rural

areas

※ Matching fund (ISP, Government) since 2006

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First in Broadband penetration 4 years in a row (OECD, 2005)

- Forth In Broadband penetration in a row (OECD, 2006. 11)

Broadband Index of Korea

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Korea’s Journey to e-GovernmentKey Managed

E-Government Infra.Development

(1987 ~ 2002)

Full-FledgedImplementation of

E-Government(2003 ~ 2007)

Further Advancementof e-Government(2008 ~ 2012)

Goal- Digitalization of government

business processes, establishment

of IT infra.

Key actions- Digitalization of government

business processes (patent,

customs, tax, etc.)

- Establishment of e-Government

infra.(high-speed internet network)

- 11 key initiatives (G4C,

e-Procurement, etc.)

Goal- Expansion of e-Government

services through digitalization of

overall government business

processes

Key Actions- Expansion and improvement of

services for citizens and businesses

- Enhanced administrative efficiency

and transparency through reform of

government work method

- Linkage and connection among

information systems

- 31 e-Government Roadmap Project

Goal- Integration of e-Government

systems for seamless delivery of

public services

Key Actions- Customer-centric citizen services

and enhanced public participation

- Intelligent administrative services

through digital government network

- Real-time public safety information

network

- Strengthened e-Government infra.

through enhanced privacy and

security

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31 e-Gov. Roadmap Projects (2003~2007)

2003 2004 2005 2006 2007

(2003) (2004) (2005) (2006) (2007)

Selectionof Projects BPR/ISP

SystemEstablishment

System Integration

Delivery of Integrated

Services

Innovating service delivery

Innovating the way government works

Innovating information resource management

Reforming the e-government legal system

4 Areas of

Innovation

$ 89 M $ 116 M

$ 230 M

$ 288 M $ 308 M

Imple-

mentation

Budget

Total : 1,031 million USD (2003 ~2007)

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National Informatization Index (NII)

History of the NII

o Created in 1993 for comparison between Korea and Japan

- 1994~1995 : Korea, USA, UK, Japan, Germany, France (6 countries)

- 1996~1998 : Korea, USA, UK, Japan, Germany, France, Hongkong, Taiwan,

Singapore (9 countries)

- 1999~2003 : Measuring of Computer, Internet, Communication, Broadcasting

sectors and expanding membership into 50 countries

- Updating and modifying indicators (2004, 2005)

Objectives

- To understand the current general condition and trends in information society

- To provide effective tool for information policy-making

- To measure Korea’s worldwide level in informatization

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Method of National Informatization Index

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NII – Informatization Level by Country

※ Source : 2007 Informatization White Paper In Korea : NIA

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Relations between GDP per capita & NII

Regression analysis of the relations between NII and GDP per capita

shows that NII is the indicator to forecast GDP per capita to the 77% of

accuracy rate.

NII

Korea

Taiwan

USAHK

Norway

Iceland

Greece

GDP per capita

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Relations between NII and DOI

Regression analysis of the relations between NII and DOI shows that NII is

the indicator to forecast DOI to the 90% of accuracy rate.

NII

DOI

US

A

Korea

Sweden

Japan

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Relations between NII and WCI

Regression analysis of the relations between NII and WCI shows that

NII is the indicator to forecast WCI to the only 62% of accuracy rate.

WCI (The World Competitiveness Index)IMD (International Institute for Management Development)

NII

WCI

KoreaJapan

US

A

Swedenchina

India

Italy

Singapore

Malaysia

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IT Policy History in Korea

Informatization Promotion

Basic Act (’95)

World’s First CDMA

Commercialization (’96)

World’s First Broadband

Internet (’98)

‘Cyber Korea 21’

Campaign (’99)

Master Plan for

Comprehensive

Informatization Policy(’95)

IT Training for 10 million

citizens(’00)

’95~’99 ’00~’03 ’04~’07

Internet Youth Volunteer (’01)

Digital Broadcasting (’01)

Privatization of KT (‘02)

e-Korea Vision (‘02)

Broadband IT Korea

Vision (‘03)

IT 839 Strategy(’04/’06)

u-Korea Vision (‘06)

WiBro Pilot Service,

DMB Service(‘05)

“ICT Initiatives in the Past Decade”

BcN Project Lunch (‘04)

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Basic Research

Financial Support

Service SpecDetermination

Legal System

Pilot ProjectLaunchLicense Approval

Competition Policy

Frequency Allocation

InternationalCooperation

Service BusinessPlanning

R&D Activity

InfrastructureInvestment

Job Creation

Cost Reduction

Mass Production

Global Marketing& Export

Government

Fair Competition

IPR Protection

Conflict Arbitration

Product/TechnologyDevelopment

Pilot Production

IP Creation

Private

Human ResourceDevelopment

National IR

Global Standardization

Application &Solution

Reinvestment for NextGrowth Engine

“Government Roles in Korean IT”

IT Policy History of Korea

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Information Mind

DEMAND FACTORS

Successful e-POLICY

SUPPLY FACTORS

E-CapacityEconomic Support

Network Infra

HW InfraApplication

Infra

IT TechnologyPolicy

IT Man PowerPolicy

Legal Support

InstitutionSupport

Demand & Supply Equilibrium Model

Theoretical Model of e-Policy

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3. Toward Ubiquitous Society

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8 Services

WiBro Service

DMB Service

Home N/W Service

Telematics Service

RFID-based Service

W-CDMA Service

Terrestrial DTV

Internet Telephony

Broadband Convergence Network

Ubiquitous Sensor Network

Next Generation Internet Protocol[IPv6]

3 Infrastructure

Mobile Telecomm Handset & Equipment

Digital TV

& Broadcasting devices

Home Network Devices

IT System-on Chip

Next Generation PC

Embedded SW

Digital Contents & SW Solutions

Telematics Devices

Intelligent Service Robot

9 ProductsService

Infrastructure

Product

“ IT 839 Strategy (2003 -2007)”

IT Policy History in Korea

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Implement IT projects, Stimulate demand within market, Foster IT

industry and Promote economic growth

Korean Government’s programs for Ubiquitous

society

BcN

RFID

USN

Intelligent

Robot

Home

Network u-City

Korean U-Life (1)

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9 pilot projects(Video Telephony, IPTV etc.) (2004~2006)

- Switchover from PSTN to BcN in Jeju Island

- Commercialization of 7 services(TV portals etc.)

Development of additional services (2006~ )

- WiBro-linked service, Two-way D-CATV etc.

12 pilot projects (Defense, Procurement, etc) to identify

potential RFID service models(2004~2006)

RFID adopted in public projects to facilitate

RFID take-up (2007~2010)

- Price of Tag : ’ $2 (2004) → $0.2 (2006)

BcN

RFID

USNOpening of the Motorola USN R&D Center

in Seoul & Joint-project with ETRI (2006. 11)

Korean U-Life (2)

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Intelligent

Robot

Develop 60 service models (home device control etc.)

and Pilot-apply to 1300 households(2006)

Provide Home N/W to 10 mill. Households by ’10

Release 5 types of ‘URC Robot’ at $1,000

and Provide to 1,000 households(2006)

Expand market by setting up robot retail system

and developing contents for robots(2007~ )

Sign u-City Construction MOU with MoCT

and Establish related legal framework (2006)

Develop and Provide standardized u-city Service

Reference Model (2007~ )

Home

Network

U-City

Korean U-Life (3)

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S-DMB Commercial Service (2005. 5)

T-DMB Commercial Service (2005. 12)

- Adopted as ETSI Standard(2005. 7)

- Demo’d at 2006 World Cup(Munich, 2006. 6)

※ Source : TU Media, KCC

Subscriber Growth

Cutting-edge u-Services : DMB

0

200

400

600

800

1000

1200

1400

1 2 3 4 512/05 12/06 12/07 8/086/05

(10,000)

7.6

T - DMB

S - DMB

48.9

384.4

1,439.4

997.3

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30Mbps

High Speed

Flat + Measured

Rate

Low Price

100km/h

Mobility

OFDMA / TDD technology adoptedIEEE802.16e standard accommodated (’05.12)

KT launched commercial service(’06.6/06)- WiBro Evolution : 50-80Mbps speed improvement(’07)

Cutting-edge u-Services: WiBro

Fast, seamless and affordable broadband access on the move

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World’s first W-CDMA Service (’03. 12)

HSDPA Service (SKT ’06. 5, KTF ’06.6)

※ HSDPA(High Speed Downlink Packet Access) :

W-CDMA 7times faster data download speed(2Mbps→14Mbps)

Download 3.1Mbps/Upload 1.8Mbps

※ Source : KCC

Subscriber Growth

KTF “Show”, SKT “3G+” and LGT

“OZ” Commercialized successfully

Cutting-edge Network Services : HSDPA

Revision A Service (LGT ’08.4)

0

200

400

600

800

1000

1200

1400

1 2 3 45/06 12/07 7/0812/06

HSDPA

1 16

501

1,277

(10,000)

Commercialize HSUPA from 2008

※ HSUPA data upload speed : 5.7Mbps

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Changes of All Sectors

( Internet + Mobile )

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Active Participation in Politics

Online Broadcasting of Parliamentary Activities

National Assembly Television INTERNET

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Active Participation in Politics

On-line Campaign

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Mini-Homepage (Cyworld)

Cyworld : Popular website used by 45% of Total Population

(22 million) creating their own virtual space

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Enhancement of Public Innovation

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Gaming population approx. 1.7 million (Charged subscribers exceeding 3 million)

Developed into a new industry called ‘e-Sports’ & Pro-gamers have become

popular occupations

On-line Game

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A new form of IT infrastructure-based local community aimed to

reduce the digital divide between the urban and rural communities

280 Information Network Villages have been

established since 2001

- Number of INVILs to grow to 305 by 2006

Provision of PCs, IT training and Internet networks

- enable e-commerce of local products and

offer online information on tourism programs

Help revitalize local economy through e-commerce

※ Major Achievements

- PC penetration : 21% → 67%

. Higher than % in other rural areas (44%)

- Online & Offline sales : USD 16.5 million

(Jan.-Sept. 2006)

e-Inclusion Case “Information Network Village”

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Anonymous Netizen Malice Reply

Side Effect (1)

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Illegal DealingsComputer related crime

(Gambling )

Side Effect (2)

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Global ICT Cooperation

Bridging the

Digital Divide

Government

Cooperation

Channel

InternationalOrganization

Activities

Promoting e-GovernmentCooperation

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Global ICT Activities of Korea

ICT HRD Program ICT Consulting

Information Access Center Internet Volunteers

Korea’s Efforts for Bridging the Digital Divide

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Global ICT Diffusion

: German, China(Beijing)

Commercial Services

: 11 Countries including UK, France,

Canada, Indonesia, Netherlands, etc.

Trial Services

D M B WiBro

: 40 countries including USA, Japan,

Singapore, Malaysia, Russia, Brazil,

U.K. Canada, France, Mexico, etc.

Reviewing Introduction

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4. Future Direction

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The Emergence of New Paradigm

: Governance, Citizens as decision makers

e-Gov.

Service

Broadband

Infra

ICT Index

e-Governance

ICT Growth Engine

& Knowledge Society

The emergence of knowledge-based society & advanced technology

The emergence of active citizens & increasing social needs on Innovation

Emergence of e-Governance

Public-Private Partnership

Technology & Market -Oriented

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Evolution of IT Society

Information Society Ubiquitous SocietyIndustrial Society

1960 20051990

Bank

School Corp.Mall

City Hall

학교 기업School Corp. Mall

Bank City Hall

e-Bank e-City Hall

e-Schoole-Mall

e-Corp.

Mass Production

Physical Space

Time/Space barriers

Cyber Space emerges

On-Line environment reduce

Time/Space barriers

(e-Gov., e-Learning etc)

Convergence of ‘Real World’ & ‘Cyber Space’

Road,Bridge, Tunnel

Products, Machines

Refrigerator, Washer

Cup, Flower-

PotsAnimal,

Plants

Glasses

Clothes,

Shoes

Car

Anytime

Convergence

CyberSpace

RealWorld

Anything

AnydeviceAnynetwork

Anywhere

5 Any

Objects becoming Intelligent

with micro computers

2007 ~

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National

Foresight

BcN

u-Environment

u-City

Intelligent Logistics

Infrastructure

Road/Traffic Intelligence

Geospatial

Intelligence

(GIS, LBS)

DataWarehouse

Feedback

DataMining

Convergence

New Knowledge SOC

• Social, Sector Intelligence

•Economic forecast

• Disaster prevention

• National risk management

Quality of Life

National Competitiveness

• Reduce uncertainty

• Enhance National forecast

Social Impact

Knowledge based SOC

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Muchas Gracias !!