1. Single Window in Korea Ki Hyun OH Acting Vice President of KTNET - The Present and the Future UNECE UN/CEFACT

2. Contents Paperless Trade in Korea The Korean Single Window, KTNET The Future of Single Window Global Interoperability between S/W’s Paperless Trade in Korea The Korean Single Window, KTNET The Future of Single Window Global Interoperability between S/W’s

3. Paperless Trade in Korea

4. Copyright© 2006 KTNET All Right Reserved. Bottleneck in trade process 19-28 days for customs clearance International trade in Korea Rapid growth of trade volume Tons of trade documents $545 billion in 2005 More than 620 boxes Export 0 50 100 150 200 250 300 197119741977198019831986198919921995199820012005 CAGR 18% * CAGR: Compound Annual Growth Rate

5. Copyright© 2006 KTNET All Right Reserved. Problems of paper based trade Government  Complex regulation  Lack of transparency  Difficult monitoring Decrease National Competitiveness  High transaction cost  Long lead time  Incorrect processing Enterprises Copyright© 2006 KTNET All Right Reserved.

6. Government has driven S/W for paperless trade Designated KTNET as ‘Korea Customs Process Automation Agency’ in November 1992. Established KTNET in December 1991 by the initiative from MOCIE to simplify the trading procedures and to realize the rapid distribution of trade information Trade Business Automation - MOCIE Customs Process Automation - KCS * KCS : Korea Customs Service * MOCIE : Ministry of Commerce, Industry and Energy to automate customs clearance procedures by computers Copyright© 2006 KTNET All Right Reserved.

7. Benefits from paperless trade Savings about $2.6 billion in 2004 Storage Logistics HR Fee Operation Before After Reduced processing time Source: Hyundai Research Institute, 2006 Export Import Tax 1+day 2+day 4hours 2min 2.5hours 10min Saved trade related costs Source: KCS, 2002 Copyright© 2006 KTNET All Right Reserved.

8. The Korean Single Window, KTNET

9. Copyright© 2006 KTNET All Right Reserved. KTNET Profile 1991 Invested by KITA 300+ documents Paperless trade services 12 million transactions per month 100% customs automation 38,217 companies Customers * KITA: Korea International Trade Association KTNET is evaluated as the world’s first-class paperless trade service provider. “Korea was ranked as one of the top three economies with paperless trade environment”, Assessment Report On Paperless Trading of APEC Economies 2005.

10. Copyright© 2006 KTNET All Right Reserved. KTNET, the Single Window Trade Firm Customs Broker Korea Customs Service Bonded Transportation Inspection Company Airline Shipping Line Forwarder Manifest Data report agent Bank Bonded Warehouse Singapore Chinese Taipei Malaysia Thailand Macau Other European Countries Germany France Chinese Taipei ASEAL U.K. KTNET Japan China PAA SCM Hub China HK

11. Copyright© 2006 KTNET All Right Reserved. GlobalBusiness CertificateAuthority B2B & B2G e-Document transaction via Van or Internet National Certification Agency Ensuring documents safety KTNET provides 4 main businesses KTNET Business Area Alliance of Single Window (PAA & ASEAL) e-Trade project with Overseas Government (Kazakhstan, Azerbaijan, Mongol) e-DocumentExchanges Electronic Document Authority Any service required for document life cycle management

12. The Future of Single Window

13. Copyright© 2006 KTNET All Right Reserved. Development path of S/W 1 st Stage 2 nd Stage 3 rd Stage Foundation of public e-Trade Platform based on EDI e-Customs Service - EDI Service for Export/ Import Declaration - Duty Drawback Commerce & Trade Finance e-Logistics Internet-Based Service Initiate Global Service such as PAA & ASEM Expansion of Global Service Overseas e-Government PRJ - Kazakhstan/Mongolia/ Azerbaijan Establishment of U-Trade Platform Electronic Document Authority 1990 ~ 1997 Establishment 1998 ~ 2003 2004 ~ Expansion & Internet Global Service & U-trade Platform

14. Copyright© 2006 KTNET All Right Reserved. U-Trade Platform Korea’s U-Trade Platform Project Goal To upgrade the present paperless trade system to cover Korea’s growing trade volume with the latest IT technology ※ Trade volume in 2005 : USD 545 billion Project Period 2004 ~ 2007 Project Cost About 30 million (USD) Leading Agencies Ministry of Commerce, Industry and Energy (MOCIE) Korea Customs Service (KCS) Korea International Trade Association (KITA) The Future Advanced Single Window, U-Trade Platform  A system, enabling traders to process e-documents related to exports and imports via Single Gateway based on the Ubiquitous ICT

15. Copyright© 2006 KTNET All Right Reserved. Vision of the Single Window Public Authority issued documents (ex: Certificate of Origin) Validation & Acceptance of e-Doc by Customs and OGA “Seamless Paperless Trade” U-Trade Platform Invoice, Packing List, Delivery Schedule, Delivery just in time, Purchase Order, Payment Notice, Shipping Order, and other private docs. Private (B2B) Documents Administrative (B2G) Documents

16. Global Interoperability between S/W’s

17. Copyright© 2006 KTNET All Right Reserved. Alliance of S/W’s Globalization has increased Korean companies’ overseas activities.  more demands for networking with overseas factories, branches and business partners. KTNET has initiated and led global alliance of S/W’s such as PAA and ASEAL. PAA (Pan-Asian eCommerce Alliance) ASEAL (Asia-Europe Alliance) Chinese Taipei China Macau KoreaJapan Thailand Singapore Malaysia HongKong France U.K Germany Chinese Taipei

18. Copyright© 2006 KTNET All Right Reserved. e-Customs with overseas  Sharing the experience of Korean Customs System and its operation know-how with Kazakhstan Customs  BPR/ISP Consulting Final Report on 10 th March, 2006  F/S Consulting Project Kick-Off Meeting on 4 th April, 2006  F/S Consulting Project Kick-Off Meeting on 21 st April, 2006 Korea’s paperless trade infrastructure has been benchmarked by many foreign Government agencies and companies  Based on professional experience, KTNET actively participating in foreign e-Government projects as follows Kazakhstan's "Customs Service Modernization BPR/ISP Project" Azerbaijan's "Customs Modernization F/S Consulting Project" Mongolia's "Customs Modernization F/S Consulting Project"

19. basecamp@ktnet.com www.ktnet.com Thank you