VLDB 2006 IT 839 Policy leading to u-Korea

VLDB 2006 IT 839 Policy leading to u-Korea Sept. 14, 2006 Jung-Hee Song IT Policy Advisor to Ministry of Information and Communication, Republic of Korea

Table of Contents 1 Overall Status of Korean IT Industry 2 IT Policy of Korea : IT 839 3 u-Korea Vision JHSong 8/ 2006 2 Dynamic u-Korea

World Best ICT Infrastructure IMD World Competitiveness Yearbook 2005 Technological Infrastructure Broadband Subscribers Rank Country 233. 3 1 Japan 0. 09 1 Hong Kong 180. 9 2 Korea 0. 25 2 146. 9 3 Belgium 1. 15 3 Taiwan 134. 6 4 Hong Kong 1. 27 4 Denmark 133. 3 5 Singapore 5 Country % Rank Country US 68. 93 1 Korea 63. 35 2 Singapore 62. 72 3 Canada Hong Kong 61. 18 4 5 Taiwan 60. 45 Broadband Cost # of subscribers per 1, 000 inhabitants US$ Rank 2. 21 # US$ per 100 kbps per month ITU reported that Korea ranked as #1 in Digital Opportunity Index at WSIS 2005. JHSong 8/ 2006 3 Dynamic u-Korea

Worldwide Market Size & Share 50 Memory 100 Air Con 46. 7 29. 8 0. 7 Robot Camera D. Content IT Service Telecom Eq. PC SW JHSong 8/ 2006 Market Size Year 2004 MS(%) 27. 8% 22. 2% ⇒ 2 nd HHP Digital TV ⇒ 2 nd 18. 4% Telematics ⇒ 3 rd 23. 5 13% 8. 3%35. 6 Home NW ⇒ 5 th Post PC ⇒ 3 rd Robot ⇒ 4 th IT So. C 0. 48 7. 5% 0. 14 7. 2% ⇒ 4 th Embedded SW⇒ 5 th 20. 5 6. 9% ⇒ 10 th DC & SW 148. 5 2. 7% 399. 9 2. 2% 1. 7% 0. 64 1. 7% 200. 6 [Source : IITA] 197. 4 1. 5% 10% ($B) 41. 4% 106. 6 Refrigerator MP 3 250 47. 1% HHP STB 200 48. 3 LCD DTV 150 20% 30% 4 50% Market Share Dynamic u-Korea

ICT Industry & Economic Growth of Korea ICT contributes half of Korea economic growth recently through productivity improvement in all industries ü No. 1 in ICT contribution To TFP among OECD Members (1. 02%) IT Portion of Real GDP & Contribution rate to Economic Growth of ICT Industry Portion of Real GDP Contribution rate to Economic Growth 1996~2002 Contribution of ICT to Total Factor Productivity [unit: %] [unit: %P] Switzerland. USA Japan Korea. Finland Sources : The Bank of Korea, KISDI JHSong 8/ 2006 5 Source : OECD, The Economic Impact of ICT, 2004 Dynamic u-Korea

ICT Exports Leading Korean Economic Growth ICT Exports (B$) ICT Contribution to Total Exports (%) 88. 3 100 80 60 38. 5 40 46. 3 74. 7 57. 5 29. 7 29. 3 2004 28. 5 20 78. 0 27. 6 25. 6 2001 2002 2005(P) 2006(E) 5 Major Item's Exports(’ 05) Unit : Billion $ Automobile Semiconductor 38. 0 Mobile Phone 30. 0 24. 8 General Machine 22. 2 Petrochemical 20. 8 Sources : MIC/MOCIE of Korea JHSong 8/ 2006 6 Dynamic u-Korea

Government Roles in Korean IT Service Spec Determination Basic Research IPR Protection International Cooperation License Approval Pilot Project Launch Conflict Arbitration National IR Frequency Allocation Financial Support Fair Competition Policy Human Resource Development Legal System Private Governmen t Mass Production Pilot Production Job Creation Infrastructure Investment JHSong 8/ 2006 Cost Reduction R&D Activity Service Business Planning Product/Technology Development Application & Solution Global Standardization IP Creation Global Marketing & Export Reinvestment for Next Growth Engine 7 Dynamic u-Korea

IT Policy of Korea : IT 839 Strategy Service Product Mobile Telecom/Telematics 8 Services 9 Products Devices HSDPA/W-CDMA Service Wi. Bro Service Broadband Convergence DMB/DTV Service u-Home Service Telematics/ Location-based Service RFID/USN Application IT Service Infrastructure Broadband/Home NW Devices Digital TV/Broadcasting Devices NG Computing/Peripherals Intelligent Service Robot IT So. C/Convergence/Parts Broadband Convergence Network u-Sensor Network Software Framework JHSong 8/ 2006 3 Infrastructur RFID/USN Devices Embedded SW Digital Contents/SW Solution 8 Dynamic u-Korea

Informatization social issue Increased Social Awareness on Adverse Effects Piracy of Personal Information, Illegal Harmful Information, Internet Addiction become Social Issue Sources : KISA, KADO, KISCOM Piracy count of Personal Information JHSong 8/ 2006 Reported case of Illegal Harmful Information 9 Consultation count of Internet Addiction Dynamic u-Korea

Ubiquitous threat issue Increased Security Threat in Ubiquitous environment The extent degree target become enlarging according to ICT convergence & diversity of information equipments Increased Damage Impact Information Leak, System Failure Enlarged Damage Coverage Internet Loss of Human Life & Property Bc. N More extent of Target HW’s PC Mobile Phone, networked Home Appliance JHSong 8/ 2006 10 Dynamic u-Korea

Nationwide IT Spreading Strategy Needs for Paradigm Shift of IT Policy Economic Problem IT Political Problem Socialㆍ Culture Problem Solve Economic Problem Solve General National Problem Knowledge-based In formation Society Traditional Industry IT Economic Industry Problem Convergence IT Political Problem Socialㆍ Culture Problem formation Society Intelligence-based In IT Spreading Strategy to Solve National Agenda such as Balanced National Development, Low birth rate·aging Society, Culture, etc. JHSong 8/ 2006 11 Dynamic u-Korea

Advanced Korea based on IT World Leader IT Potentials Nationwide IT Spread-out Convergence New Added Value Government Maintain IT as top national policy Guarantee safe IT use Narrow digital divide Company Innovate & strengthen competitiveness Invest in new IT convergence area Individual Participate in ubiquitous society Consciously use IT & productively use IT Advanced Korea Trend of National Income (unit: Thousands $) Intelligence Problem solving Capacity Network Efficient Trading and Transaction Diversify Acknowledgement and Coexistence IT Mega-Trend 20 JHSong 8/ 2006 Guarantee Momentum to reach Advance Korea 12 Prospects of Korea 2025 -No. 9 in GDP & No. 3 ($52, 000) in Per capita income in the world Dynamic u-Korea

Korea as IT Hub of North-East Asia World-class IT cluster Provide shared service in areas with easy access to foreign markets R&D, architecture/manufacturing, assembly/test, pilot project Exhibition/conference, consulting service, IPR, design support Architecture/ manufacturing R&D Design Dissemination of ‘Korean model’ What works in Korea works in the world Pilot project Exhibition/ IPR conference management Consulting service New technology test-bed Test new business model JHSong 8/ 2006 Assembly/ test 13 Dynamic u-Korea