1. Korea’s IT Policies and Korea-China Cooperation
October 25, 2011
Dr. J. Y. Kim
Executive Director, Int’l Cooperation Division of NIPA

2. Contents Today’s IT Industry in Korea IT Industry Trends1 2 3 4
Today’s IT Industry in Korea
Korea’s IT Policies
Korea-China Cooperation Programs
IT Industry Trends

3. 1. Today’s IT Industry in Korea

4. 1. Today’s IT Industry in Korea
IT as the Driving Force of the National Economy
IT industry in Korea occupies about 30% of total exports as a core growth
engine for Korean economy.
Total Export vs. IT Export (2010)
Total Trade Balance vs. IT Trade Balance 78 58 59
-13 40
‘08
‘09
‘10 + =
IT Trade Balance
Total Trade Balance
[Unit: $ Billion]
-71
-19
Trade Balance except IT
$ Billion
IT Export
Total Export
$ Billion 41
‘08
‘09
‘10
-37
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5. 1. Today’s IT Industry in Korea
Leading Items
NO.1in the world
NO.2in the world
Displays with a Global Market Share
(46.5%)
Mobile Phones with a
Global Market Share (30.2%)
Semiconductors with a Global Market Share(42.8%)
※ UN e-Government Readiness Index (’10) World’s No.1,
ITU Information and Communications Development Index (’10) World’s No.3 ,
EIU Government Broadband Index (gBBi) World’s No.1
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6. 1. Today’s IT Industry in Korea
Korea e-Government from Catch-up perspective

7. 2. IT Industry Trends

8. 2. IT Industry Trends Increasing Importance of IT and Software
IT industry is showing a high growth rate with an annual average of 10.7% growth since 2002.
Particularly, the source of competence in the IT Industry moved from hardware to software.
Average annual economy
growth since ‘02
Software portion in the product development cost
Transition of the competitiveness of mobile phones
Process of hardware manufacturing was
mobile phone’s competitiveness.
Software (OS,UI) makes
mobile phones competitive.
53.7%
52.7%
45.5%
Electronic
information
Communication
device
Medical device
IT Field
General
2.9%
10.7%
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9. 2. IT Industry Trends
Convergence is Essential for Creating a New Growth Engine
Expansion of the concept of the single line method to the productive improvement method
This change is based on fusion and application for the productive improvement of the country and the entire industry.
** “Convergence” needs to be capitalized.
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10. 3. Korea’s IT Policies

11. 3. Korea’s IT Policies Competency Level-up
in the global IT convergence market
IT Convergence
Diffusion
Next-generation Mobile Technology Development
Human
Resources
Development
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12. 1) IT Convergence Diffusion
3. Korea’s IT Policies
1) IT Convergence Diffusion
New market creation by converging IT
with manufacturing and service industries
- Automobile, Shipbuilding, Robotics, Healthcare, Smart Grid, etc.
Deregulation for the new IT convergence markets
- Medical Treatment, Automobile, Machinery, etc.
Promotion of embedded software and
system-on-chip development
- Supporting world best softwares and star fabless companies
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13. 2) Next-generation Mobile Technology Development
3. Korea’s IT Policies
2) Next-generation Mobile Technology Development
World’s 1st demonstration of the 4G mobile communication system (January 2011)
Strengthening mobile related softwares
- Technology development
- Application testing support, etc.
Creation of new mobile markets
- Mobile RFID, Mobile cloud computing infrastructure
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14. 3) Human Resources Development
3. Korea’s IT Policies
3) Human Resources Development
Nurturing next-generation creative and
talented engineers
- Software MAESTRO program, etc.
- Program for high level engineers (Architects)
Cooperation between school and industry
- Resolving skill mis-matches between universities and industries
- IT mentoring : Students training in the IT companies
- Increase of internship programs
- IT job fair (Job Expo 2011,Seoul)
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15. 4. Korea-China Cooperation Programs

16. Cooperation Procedure
4. Korea-China Cooperation Programs
1) IT Consulting
National Informationization Master Plan
Feasibility Study for a specific project
Cooperation Procedure
① Project Identification
MKE(Korea)
Counterpart
NIPA
② G2G Cooperation MOU ③
Executive
Committee ③ ④
Working Group
ADB, IDB, AfDB
World Bank
KOAFEC for Africa ⑥
KEXIM, KOICA ⑤
Project Execution
Dept. of Budget
Budget Arrangement
Support ⑥
Economic
Development Board
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17. Public Sector Solution Industry-Specific Solution
4. Korea-China Cooperation Programs
Cooperation Areas
E-Government Sector
Public Sector Solution
Industry-Specific Solution
Resident Management System (NID)
Tax Management system
Customs Management system
Procurement system
Education Management System, E-Learning
Land Registration system
Financial Information Management system
e-Security (Police, Crime control, 911)
Immigration Management Systems etc
ITS (Subway, Railway) system (fare collecting equipment, etc)
Election management system (vote counting equipment, etc)
Post Office system (Auto-classification equipment, barcode reader)
Surveillance system based on DVR, FOM(Fiber Optic Mesh), etc
Airport Information system
Auto Giro system (Giro reader, OMR equipment)
Hospital Information system (PACS)
Network Integration (WAN, LAN equipment)
EAI(MFC) for electronics, Assembly lines, semi-conductor, etc
Plant and engineering embedded SI system
Home trading system, Core banking system
POS system (Barcode), Retail, Logistics, Pos…
Wireless Internet Platform (WIPI), Billing System
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18. 4. Korea-China Cooperation Programs
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19. 4. Korea-China Cooperation Programs
Consulting Projects in 2011
- Master Plan (3 projects)
- Feasibility Study (14 projects)
- Cooperation with International Organization (6 projects)
→ World Bank-NIPA Cooperation : 5 consulting projects
Russia ITS for Saint Petersburg
Kazakhstan Mobile Platform
Bangladesh Mobile Application
Uzbekistan Mobile Payment
Mongolia Health
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20. 4. Korea-China Cooperation Programs
2) Capacity Building – Annual Conference
Title : Sharing Experience in IT Service 2011(8th)
Format : Conference & Reference site tour (3-day program)
Date : November 23~25, Seoul, Korea
Key Values
Sharing experiences with CIOs and IT decision-makers from other countries
Experiencing and benchmarking advanced information systems of Korean IT industries
Developing cooperation between NIPA and other countries’ organizations
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21. 4. Korea-China Cooperation Programs
3) Senior Experts(Retired from Public & Private Sectors)
Provides IT consulting services,
related to the socio-economic development
67 Experts in 25 Countries
- Areas : Government Data Center, Postal Information System,
e-Trade System, Port Logistics System, etc.
- Countries : Uzbekistan(SMB policy), Ajerbaijan
(IT Management and Water Treatment),
Kyrkyzstan(IT and Economic Policy)
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22. Thank you 22