1. Dr. Yeongi Son President/CEO 2004. 04 Korea’s Informatization Policy & International Cooperation - Focusing on the Digital Divide

2. Contents Informatization Policy of Korea I. Informatization Policy of Korea Status of the Digital Divide in Korea II. Status of the Digital Divide in Korea Korean Policies to Close the Digital Divide III. Korean Policies to Close the Digital Divide Lessons from Korean Experiences IV. Lessons from Korean Experiences KADO’s Vision V. KADO’s Vision 1

3. I. Informatization Policy of Korea

4. Computer Penetration Rate : 47% (22.49M units) Mobile Telephone : 67% (32.5M People ) Internet Users (26.3M, 59% of the total population) 5th ITU Mobile Internet Index 7th UN e-Government Index 13th Broadband Internet Penetration Rate (10.4M households, 70% of the total households) 1st Current Status of the Korea IT 3

5. Korea’s Progress in Informatization & IT Industry Poor Telec. Infra. (~early 80) Basis of Information Society (’80~early ’90) - Competition Among Telecom Operators - Immediate Installation & Voice Call Service - 1st & 2nd Rounds of National Back-bone N/W Building Project - Dev. & Distribution of Home-grown TDX, Host Computers - 7% Teledensity (100% Dependency on Imported Equipments) - Poor Informatization Towards the 21st Century IT Leader 4

6. Korea’s Progress in Informatization & IT Industry Push for Informatizaiton Informatizaiton (mid ’90) Informatization for New Take-Off (late’90~’02) - Basic Plan For the 1 st & 2nd Informatization Promotion - Implementation of 11 Tasks of e-Gov. - Development of ADSL, Digital TV, TFT-LCD Tech. - Competition among Carriers - Informatization Promotion Act - Dev. of CDMA Tech. - Strategies to the Goals of the Participatory Government Towards the 21st Century IT Leader Across the Nation of the Nation ofInformatization(’03~ 5

7. Key Success Factors 1 Legal Framework Legal Framework Tentative Law on Expansion of Telecom Facilities– 1979 ▶ Issue Telegraph & Telephone Bonds Telecommunications Basic Act – 1983 ▶ Introduce the Concept of the Information Society and Information & Communications ▶ Draw Up Policy, Promote the IT Industry, Develop Technologies, Foster H/R Informatization Promotion Basic Act – 1995 ▶ Set out Informatization Promotion Basic Plan ▶ Create an Information Implementation Committee Law on the Use and Promotion of Information and Telecommunications Network - 1986 ▶ Facilitate the Dev. of National Back-bone N/W and Set Up a Nationwide N/W Council 6

8. Key Success Factors 2 Strong Policy-Push Framework Strong Policy-Push Framework Reorganize the Gov. Body ▶ Set Up Communications Policy Bureau in 1982 ▶ Create Communications Policy Office in 1991& Information and Communication Bureau (Responsible for IT) ▶ Establish MIC in 1994 ▶ Set up Information Planning Office in 1996 Support Wings ▶ KADO(’84) ▶ ETRI(’85) ▶ KISDI(’87) ▶ NCA(’87) ▶ KISA(’96) ▶ KIPA(’98) Implementation Framework corresponding to the Knowledge & Information-based Society Implementation Framework corresponding to the Knowledge & Information-based Society 7

9. Key Success Factors 3 ▶ Development in ’70 : Upgrade Telecommunications Facilities ▶ 5th Gov.(’80) : Automate Telephones Nationwide, Open the Era of One Tele. Per Household ▶ Civilian Gov.(Mid ’90) : Roll Out Broadband N/W ▶ People’s Gov. (’98~ ’02) : Make Korea the Most Computer Literate Country Worldwide ▶ Develop Tech. & Promote the Industry (TDX/CDMA/ADSL etc.) ▶ Build Back-bone & Broadband N/Ws Strong Commitment of the Top-Policy Maker Strong Commitment of the Top-Policy Maker ▶ Enthusiastic for Education, Receptive to New Tech. & Equip. ▶ Cultural Characteristics for Racing Ahead ▶ Intensively Invest in Strategic Items (B/B Internet, CDMA) ▶ Expand e-Commerce & Apply IT to the Conventional Industries Gov. Enterprises Individuals Policy-led Changes & the Private Sector’s Swift Reaction Policy-led Changes & the Private Sector’s Swift Reaction 8

10. Key Success Factors 4 Bold Policy Decision Bold Policy Decision Locally Developed TDX (‘82~’91) – R&D Investment (W142B) Home-grown Host Computers (‘87~’91: Host Com. I, II, III, IV) - R&D (W63.5B) Broadband N/W Project (’95~ Present) - Investment (W17.14T) (Gov.: W1.12T) Develop & Commercialize CDMA System (’90~’96) - R&D (W99.6B) 9

11. Key Success Factors 5 Balanced Development in Informatization(Demand) & IT Industry(Supply) Balanced Development in Informatization(Demand) & IT Industry(Supply) Gov. Strong Policy Drive Expand Wire & Wireless Telephone, Build Broadband N/W Induce Competition Among Providers in line with Market Principles Expand the ProvisionFacilitate Demand Provide Computer Education Provide Free B/B Internet Access to All Primary & Secondary Schools Spread IT Culture (ex: PC Cafes, Online Games) Virtuous Cycle of the Development of Informatization & the IT Industry Virtuous Cycle of the Development of Informatization & the IT Industry 10

12. Richer Society Transparent & Fair Society Continuously Upgrade IT Infrastructure Ensure Security and Reliability Public Sector Private Sector Knowledge & Information-based Society Across the Nation National / Social Informatization Privacy Protection Privacy Protection Bridge Digital Divide Bridge Digital Divide National Informatization Policy Overview Inclusion Society 11

13. II. Status of the Digital Divide in Korea

14. Status of the digital divide in Korea(1) President - S uggesting & S ummits http://http://www.cwd.go.kr/warp/app/home/en_home President - S uggesting & S ummits http://http://www.cwd.go.kr/warp/app/home/en_home KADO – Acting for closing the digital divide http://www.kado.or.kr/ KADO – Acting for closing the digital divide http://www.kado.or.kr/ MIC - Master P laning http://www.mic.go.kr/eng/index.jsp MIC - Master P laning http://www.mic.go.kr/eng/index.jsp 13

15. Internet Usage (July, 2003) Status of the digital divide in Korea(2) Gender Male Female Education Middle School graduates and below College graduates and above Occupation Manual workers Office workers Age 50 and above 6 - 19 Housewives CategorySub-category Internet Users(%) 70.7 57.5 5.8 82.1 47.0 31.8 88.7 23.2 91.3 14

16. Internet Usage (July, 2003) Status of the digital divide in Korea(3) Internet Usage among People w/ Disabilities Monthly Income Less than $ 1,250 More than $ 2,500 CategorySub-category Internet Users (%) 22.9 67.2 Region Metropolitan Cities Rural towns 86.1 44.2 % out of the Total 64.0 Age 7 - 19 CategorySub-category Internet Users (%) 69.0 50 - 695.9 % out of the Total 24.1 15

17. III. Korean Policies to Close the Digital Divide

18. Cyber Korea 21 (March,1999) Digital Divide Act (rev.) (Jan, 2003) Information Strategy Meeting (April,2000) 3. Korean Policies to close the digital divide (1) Closing the Digital Divide 17

19. 3. Korean Policies to close the digital divide (2) IT Productivity IT Literacy Establishment of basis of IT Partnership Promoting e-Policy and Informational Mind Supporting Contents-based Projects IT Accessibility Affordable Access Expanding Capability In Utilizing Information Promoting Information- Based Productivity Information Access Environment Supporting IT Usage Capability 18

20. 3. Korean Policies to close the digital divide (3) Closing the digital divide Access to Telecommu nication Services Infrastructur e for Telecommun ication Services Productive Information Life Narrowing the Global D.D Contents for the Elderly and the disabled & Measurement of the D. D. Provision of IT Learning Opportunities 19

21. 3-1. Infrastructure for telecommunication services Fiber-optic Backbone Network Linked all 144 telecommunication service districts (155Mbps to 5Gbps) (2000) Telecommunications Accessibility Guideline for the disabled and the elderly (2002) Services providers and Product manufacturers to ensure a minimum level of accessibility “Telecommunication Accessibility Promotion Standard Forum” (www.iabf.or.kr) Broadband Service in Rural Areas by 2005 Special loan of 150 billion W (approx. 120 million $) to accelerate the network construction Satellite Internet service to hinterland 20

22. Community Internet Access Center 3-2. Access to telecommunication services (1) 수신 차단 방안 강구 More than 25,000 “PC Bang” (2002) - Affordable price at less than $1 per hour Internet-Cafe (PC Bang) 21 Year Local Gov KADO 2000 21 63 2001 120 555 2002 66 248 2003 50 120 KADO supports 986 Access Centers since 2000 Local Government supports 257 Access Centers since 2000

23. 3-2. Access to telecommunication services (2) - Up to 30 ~ 50% discount on telephone service charges for the disabled & the low- income - Up to 50% voluntary discount to the disabled for high-speed Internet service - 256 Kbps Internet access to all schools at free of charge - 34,363 refurbished PCs (2002) - 50,000 Internet PCs with 5- year free Internet access to the low-income students with high GPAs (2001) - 3,000 PCs to the disabled (2003) - 6,940 Assistive Technology to the disabled (2003) Discount of telecommunication service charge Provision of ICT Devices 22

24. 3-3. Provision of IT learning opportunities National plan of IT training program for 10 million people Providing IT learning opportunity to 10 million by 2002 National plan of IT training program for 10 million people Providing IT learning opportunity to 10 million by 2002 Type200020012002Total Students in Low-income Household 53,7341,929,3311,598,339 4,481,404 Residents in Local Communities 1,265,0622,949,9371,143,841 5,358,840 Farmers 33,161 75,738 20,271 129,170 Prison Inmates 23,075 70,767 26,356 120,198 Housewives 299,947 124,212 9,844 434,003 People with Disabilities 13,680 47,354 39,544 100,578 The Elderly 36,330 361,875 44,530 442,735 Others 1,870,521 746,8911,020,852 2,738,264 Total 3,595,5106,306,1053,903,57713,805,192 23

25. Assessment of the Digital Divide 3-4. Online Contents & the Measurement of the digital divide 수신 차단 방안 강구 20 types of contents such as rehabilitation, health, social events, transportation, leisure, welfare (in 2002) 10 more contents made available in 2003 수신 차단 방안 강구 The status of the digital divide is assessed twice per year Special surveys on the disabled, the elderly and the urban low income families from 2002 Support to the construction of online contents for the elderly & the disabled 24

26. 3-5. Productive Information Life Prevention of ICT Misuse Training Internet addiction counselors Developing ICT Ethics Education Operation of Internet Addiction Center - Group/Individual, Offline/Online, -Counseling Juvenile: for prevention of cyber-crime 25

27. Founding Member of the Development Gateway Foundation (2001.12) 제목 2 3-6. Narrowing the global digital divide 수신 차단 방안 강구 Global digital divide program initiated by the World Bank 5 million dollar contribution & IT Training Center opened in 2002 Trained 150 persons through 10 courses per year Special projects for Closing the digital divide in ASEAN Infrastructure & HRD Technical Assistance Forum & Symposium Projects Description  Holding symposium on the digital divide from 2002 every year  Building community access center in ASEAN countries  Providing IT education to ASEAN countries  Sending experts of e-Gov, telecommunication Infra, IT policy etc. to ASEAN countries  Technology Transfer through cooperation between ETRI and PTIT  Supporting the non-governmental information and communication council of ASEAN+3 26

28. Korea IT Learning Program 3-6. Narrowing the global digital divide by KADO (1) In 2003 In 2004 e-Gov. CIO Course(63), e-Gov. Consultant course(70) Mobile Engineer course(37) 4 mid term, 14 short term courses, 316 people National Informatization CIO, National Informatization Consultant, Mobile Engineer, SI(e-Gov.), Mobile Commerce, e-Government Policy, Telecommunication Policy course, etc. 27 3 mid term courses, 167 people

29. Korea Internet Volunteers Programs 3-6. Narrowing the global digital divide by KADO (2) www.kiv.or.kr In 2002, 2003 In 2004 Sending IT skilled volunteers to the organizations of developing countries to help develop IT capacity In 2002, 381 volunteers (108 teams) to 28 countries in Asia, East Europe, Africa for 15-25 days In 2003, 345 volunteers (87 teams) to 42 countries about 300 volunteers (75 teams) to 30 countries Equipped with laptop PC, digital camera and education materials. 28

30. Building Internet Education and Training Center for developing countries 3-6. Narrowing the global digital divide by KADO (3) 2 countries 6 persons, 10 days Cambodia Romania, Vietnam, Egypt 12 persons, 10 days 2004 2002~2003 Korea Internet Access Center 29

31. IV. Lessons from Korean Experience

32. Constructing telecommunication network Promoting the willingness to use IT Strong leadership 제목 3  Giving incentives early IT users and telecommunications service providers  The transparency of transaction, reduce corruption involved  Providing the programs for increasing IT usage ability Lessons from Korean Experience 31

33. V. KADO’s VISION

34. KADO’s Vision and Mission Providing Info Access Environment Providing Info Access Environment Expanding Human Capabilities In Utilizing Info Expanding Human Capabilities In Utilizing Info Preventing misuse of Info & Building Sound Cyber Culture International Cooperation Reducing the national info gap, building a digital welfare society and creating a venue for future info society and promotion of sound cyber culture Reducing the national info gap, building a digital welfare society and creating a venue for future info society and promotion of sound cyber culture VISIONVISION MISSIONMISSION ROLEROLE The leading agency to pioneer a national and World-wide attempt to move toward a knowledge and information-based society The leading agency to pioneer a national and World-wide attempt to move toward a knowledge and information-based society 33

35. Main Working Areas Equal Information Access Opportunity Informatization Education International cooperation Sound & productive Digital Society e-Korea Education Distribution of Refurbished PCs and Special Contents On-line Informatization Education Lessoning Cyber Crimes Korea Internet Volunteers Internet Access Center Building Information Access Facilities Korea IT Learning Program Protective Counseling against Internet Addiction Toward a Digital Welfare Society Toward a Digital Welfare Society Support of Info Education for each Government Sector 34

36. Thank you 감사합니다