T I A January 29, 2009 ICT Development in Korea YOUNG K. NOH IT Counselor Korean Embassy

ContentsContents Lessons from ICT Development Broadcasting and Telecommunications Convergence Status of ICT Korea

Government Key Success Factors Strategic investment for infrastructures Education on Internet usage Policy to promote competition Ideal Test-bed Aggressive marketing for more subscribers Low and flat subscription tariffs Many online content and game providers Private Sector (59.4%) (76.3%) 26 M. 34 M M. (69%) 14.7 M. (90.8%) ’02’07 ’02’07 ’02 ’07’ M. (67.9 %) 116 T. (0.4%) 5,699 T. (13.1%) 40.1 M. 3 I. Status of ICT Korea I. Status of ICT Korea Densely populated residential areas Large IT consumer Base - Technology savvy consumers Active technical innovation 43.4 M. ( 89.8 %)

I. Cutting-edge Service (1) : WiBro I. Cutting-edge Service (1) : WiBro KT/SKT KDDI Sprint NextelSprint Nextel ArialinkArialink NeuparaNeupara TVATVA OmnivisionOmnivision EtisalatEtisalat BayanaBayana Middle East Africa AltechAltech BTBT Telecom ItaliaTelecom Italia PortusPortus FTFT Europe North America South America Asia Pacific Broadband Access on the Move fast, seamless and affordable Provided WiBro Service Wibro VoIP demonstration (’08. 6 OECD ICT Ministerial Meeting ) Adopted as the international standard(itu) (’07.10) Adopted Int. Standard (IEEE802.16e) (’05.12) KT, SKT launched commercial Service (’ ) WiBro Speed improvement: 50~80Mbps (’07) To be Provided To be considered Indonesia, Malaysia, Croatia, Italy, Brazil, Japan, Taiwan, USA Uzbekistan New Zealand, Norway, Great Britain, Singapore Country Korea ( KT/SKT) ㆍ Venezuela 4 30 Mbps

World’s smallest TV - TV in my hand T - DMB S - DMB 7.6 Growth of DMB users (10,000) 1, France, Germany, China, Italy, Canada, Ghana, Indonesia, Netherland, Vatican, U.K, South Africa Country DMB Service Pilot service KOREA, CHINA(Beijing), GERMANY service Radio/TV Studio Disaster related information collecting center Wireless Mobile Network T- DMB Broadcasting Station Warning Control System Receiver DMB Transmitter 5 I. Cutting-edge Service (2) : DMB I. Cutting-edge Service (2) : DMB ,

6 online civil affairs services(G4C), home tax service single window service (G4B) for business support online citizen participation portal Portals for disclosing public administrative information I. Broadband Applications : e-Government/e-Commerce I. Broadband Applications : e-Government/e-Commerce ’01’03 Total transaction volume E-Commerce 1,308 trillion 119 trillion ’06 1,555 trillion 235 trillion 358 trillion (19.8%) 517 billion dollar

New paradigm called for as digital technology advancement and wider network bandwidth have stimulated convergence in network, service, equipment and content Integrated policy-making and regulatory functions between broadcasting and telecommunications to proactively respond to the digital convergence environment (Feb ’08) 7 I I Broadcasting and Telecommunications Convergence I I. Broadcasting and Telecommunications Convergence Korean Government promotes regulatory reform and market-friendly policies to create a dynamic market economy.

I I 방송과 통신의 융합 I I. 방송과 통신의 융합 2008’09’10’11’ Source: Media & Future Institute IPTV around the world 6 (million) Asia # of countries # of service providers Europe North American Others Household Total Source: Korea SW Industry Promotion Agency million (MRG 2005) Mega TV Service provider Service launch No. of subscribers (end of Feb ’06) Total : 1.35 million KT LG Dacom My LG TV thousand 5 thousand Hana TV Hanaro Telecom 858 thousand 8 Prospect of subscribers Real-time IPTV pilot service Passed the ‘Internet Multimedia Broadcasting Business Act’ Completed the legal framework for IPTV service - Real-time transmission, account separation, equal access to network content Award license to service provider and launch commercial service Pre IPTV in Korea I I Broadcasting and Telecommunications Convergence I I. Broadcasting and Telecommunications Convergence

Enacted Special Act (Dec’07), Complete digital transition by 2012 Establish national promotion agency, Organize joint promotional activity between government-broadcaster-manufacturer Improve digital reception environment by assisting the building of community reception facilities Draw up measures to utilize unused frequency after digital transition Settlement of DTV Transmission mode DTV Special Act Passed Termination of analog broadcasting in Japan Termination of analog broadcasting in Korea Start HDTV broadcasting (Metropolitan area) Start nationwide HDTV broadcasting Termination of analog broadcasting the US Termination of analog broadcasting in France I I Broadcasting and Telecommunications Convergence I I. Broadcasting and Telecommunications Convergence

Information Security Policies Ⅲ. Information Security Policies Upgrade security incident response mechanism by developing early response system Implement customized countermeasures Introduce security servers for 30,000 websites that handle personal information ” “ President Myungbak Lee The Internet should be a space of trust. Otherwise, the force of the Internet could turn out to be venomous rather than beneficial. In a nutshell, what is being menaced is the trust in transactions, a linchpin for the continued development of the Internet economy. In order to promote confidence in the Internet, all individuals and nations basically have to equip themselves with a systematic response system. More than anything else, cooperation between countries is urgently required. 10 “ ” Financial damages due to cyber incidents World (’06) Korea(’06) 4450 billion (KRW) 14.2 trillion (KRW)

- Public-Private Joint TFT - Global Cooperation against Cyber Terrorism Response to Hacking/Virus - Act on Protection of Personal Data - Strict Punishment on Privacy Infringement Protection of Privacy - Spam Mail Control - Obscene Material Control - e-Clean Korea Campaign Clean Cyber Environment Safe and Sound Digital Society Safe and Sound Digital Society 11 Information Security Policies Ⅲ. Information Security Policies

Non- disabled Disabled20s Over 50s Monthly Income over $3400 Low- income General Population Rural Digital Divide (Digital Opportunity Index) Source: Internet World Stats 12 10%20%30%40% 50%60%70%80%90% North America Oceania/Australia Europe Latin America/ Caribbean World Avg. Middle East Asia Africa 73.6% 59.5% 48.1% 24.1% 21.9% 21.3% 15.3% 5.3% Source: ITU, World Information Society Review Bridging Digital Divide Ⅲ. Bridging Digital Divide

Mid-to-Long Term Project for Bridging Digital Divide Full Broadband Nationwide Coverage -Optical Access Point to Households in Rural Areas - Satellite NW to Households in Isolated Areas PC Penetration in Digital Have-nots IT Training to Digital Have-nots - Practical IT Training to the Disabled, Senior Citizens, etc. 13 Bridging Digital Divide Ⅲ. Bridging Digital Divide

Importance of Broadband Infra Consideration for the digital have-nots Prevention of the malicious use of ICT  Essential for a successful e-Government/e-business environment  Development and testing of new technologies  Digital divide could be a serious problem in development process  Need ICT-education, policy, budget to bridge digital divide  Malicious use of ICT increase with the informatization  Preventive measures against hacking, virus, unsolicited mails and other negative uses 14 Some Lessons from ICT Development Experience Ⅲ. Some Lessons from ICT Development Experience