1. KBA 1 Korea’s Advances in Biometrics Market & Technology Alex H. Choi Korea Biometric Association

2. KBA 2 Outline of Presentation  Introduction  Trend of Conventional Technologies  Emerging Technologies  Market Requirements  Korean Market Trend  Future Expectations  Conclusion

3. KBA 3 Introduction – Status Quo  Korean Biometrics Market (KBA 2003)  70% of citizens aware of “what the biometrics are”  84% are positive to bio-passport  From fingerprint scan to face, iris, hand vascular technology  2002 domestic revenue: 23 Million US$  Market growth has been always below expectations

4. KBA 4 Trend of Conventional Technologies  Fingerprint scanners  Personalized Applications  Mouse, Notebooks, Mobile phone, USB sticks  Face Recognition  Multi-modal approach to overcome accuracy  Machine readable travel documents  Iris  Non-security applications  Diagnosis/Entertainment

5. KBA 5 Trend of Conventional Technologies

6. KBA 6 Emerging Technologies  Vascular Pattern Biometrics Techsphere Hand Vascular Hitachi Finger Vein Fujitsu Palm Vein

7. KBA 7  Hand vascular pattern (Techsphere) Raw Image Extracted Vascular Pattern (Example of the selected small area) Noise removal algorithm Adaptive algorithm Binary image Emerging Technologies

8. KBA 8 Revenue by Technologies Finger 64.7% Hand Vascular 2.9% Iris 5.9% Face 8.8% Speaker 5.9% Signature 5.9% Multi-modal 5.9% 2002 Finger 53% Hand Vascular 5% Iris 7% Face 21% Speaker 4% Signature 4% Multi-modal 7% 2003

9. KBA 9 Market Requirements  Accuracy – FAR, FRR  How accurate the FAR should be? – BA’s report  0.01% - 0.0001%  Robustness to forgery  Prof. Matsumoto’s vulnerability research – artificial fingers and irises  Copy from residual features  Perceptive acceptance  Convenience and posture – psychological refusal  Intimidation  Needs of minimal contact area and natural posture  Usability  The percentile of unspecified population who can use a specific biometric system  Key to the wide applications for physical access control

10. KBA 10 Characteristics of Asian Market  Lack of vertical market  Vendors rely on their own applications  Barrier to quick market growth  Face and Iris technologies in Asia  Biometrics middleware  Quick growth expected  Key to the volume growth of biometrics industry  Especially for T&A applications, middleware is very important along with standardization activities  ISO/IEC JTC1 SC37 Biometrics

11. KBA 11 Korean Market Trend  Personalized applications  Fingerprint technology is eagerly seeking applications in logical access control, banking, e-commerce (internet user verification).  Large scale access control  Hand vascular pattern system is well accepted by industry due to its high usability  IBS, Construction, Factory T&A, Police, Government  Biometrics middleware  Quick growth expected  Key to the volume growth of biometrics industry  Especially for T&A applications, middleware is very important along with standardization activities  ISO/IEC JTC1 SC37 Biometrics  Government applications waiting for standards  Interoperability and BioAPI

12. KBA 12 Government sector’s plans qImmigration Control –Ministry of Justice, Immigration Bureau –Based on Multi-modal Biometrics (Fingerprint, Vascular pattern, Face) –I-PAS card; Foreign immigration and visitors service qBio-passport –Ministry of foreign affairs and trade –Storage of biometric data in passport/visa qSeafarer’s travel document –Ministry of maritime affairs and fisheries –18,000 seafarers qCorrection institutions –Ministry of justice –Access control for correction institutions –Parole control 40 million /year Passport 30 million 18,000 Seafarer’s TD

13. KBA 13 Private sector’s  Banking  ATM, Internet banking, Rental safety box  Medical  Patient ID, Patient record control, e-prescription  Logical Access Control  PC login, Database access control, Enterprise network access  Physical Access Control  Secure access, IDC, Dormitories  Time & Attendance  Government, Construction companies, Factories  Search of lost children

14. KBA 14 Card + Biometrics  Security, convenience, and portability  RF card + Biometrics  Smart card + Biometrics  Data protection (both biometrics data and others)  Enables large scale deployment  Store-on-card  Match-on-card  Sensor-on-card

15. KBA 15 Future Expectation in Revenue  Korean Market Growth Rate Expectation KBA 2003

16. KBA 16 Conclusion  Vendors started to sell solutions, not illusions  Users now understand what biometrics can do (5 yrs)  Market growth rate: Always under expectation  Is problem in Technology or Market?  Market growth rate: Expectable now  Applications diversified  Biometrics, Market driven or Technology driven?

17. KBA 17 Contact Thank you !! alexchoi@tech-sphere.com