1. : The Korea’s Strategy for Trade Facilitation
uTradeHub
: The Korea’s Strategy for Trade Facilitation
Ah Rom Lee

2. e-Trade Implementation
About KTNET
e-Trade Implementation
Standards
uTradeHub Services
My presentation is divided into 4 parts, 2

3. About KTNET
Let me introduce KTNET briefly. 3

4. 12 million transactions per month
KTNET Profile
1991
500+ documents
Invested by KITA
Paperless Trading services
12 million transactions per month
100% customs automation
47,052companies
Customers
4,900 Shipping/ Airline / Logistics companies
100 financial Institutions / banks/ insurance companies
KTNET is evaluated as the world’s first-class Paperless Trading service provider.
“Korea was ranked as one of the top three economies with Paperless Trading environment”, Assessment Report On Paperless Trading of APEC Economies 2005.
KTNET was established in December 1991, by the law, Trade Business Automation Act.
Now we provides Five Hundred (500) kinds of electronic documents and automated customs process 100%.
We handles more than 12 million transactions each month.
APEC says Korea's Paperless Trading infrastructure, made and operated by KTNET, is recognized as one of the most exemplary models with its state-of-the-art information technology.
* KITA: Korea International Trade Association 4

5. KTNET’s Paperless Trading network
Other
European
Countries
Germany
France EU
ASEAL
U.K.
Manifest Data
report agent
Trade Firm
Forwarder
Shipping Line
Bank
Japan
China
KTNET
Singapore
Chinese Taipei HK
Malaysia
Thailand
Macau
PAA
Korea Customs Service
Global Network Service Provider
Customs Broker
This slide shows you the Service Network of KTNET.
As you can see from this picture, Korea's trading companies, banks, shipping companies, and insurance companies are utilizing KTNET's system to exchange electronic documents and to process trade related businesses with government agencies.
The network is not just limited in domestic region, but has an especial alliances such as Pan Asian eCommerce Alliance and Asia Europe Alliance for Paperless Trading to enhance international networks.
TRAXON
Bonded Transportation
ARINC
Airline
CyberLogitec
Inspection Company
AT&T 5

6. e-Trade Implementation
- What we have done

7. Korea’s e-Trade Development
Single Window
Development
MOVE to INTERNET
Starting Web-based Service
Certificate of Origin
Letter of Guarantee
Delivery Order
Establishment of electronic trade platform
e-Trade Document Repository
Integrated and consolidated one-stop trade services
SERVICE EXPANSION
Import Clearance
Manifest Submission
Tariff Refund
INITIAL SERVICE
ESTABLISHMENT
L/C, E/L, I/L
Insurance
Export Clearance
Comprehensive Trade Automation Plan (1989) & Act (1991)
KTNet founded (1992)
Phases
1st
2nd
3rd
(1990~1999)
(1999~2002)
(2003~)

8. Concept of Single Window
Korean Case
User
Trade Chain
License/
Certificate
Authority
Customs
Service
Electronic
Single Window
Bank
Global
Network
Logistics
Company
Traders

9. uTradeHub Project Goal
To cope with Korea’s growing trade volume by upgrading the
Electronic trading system into a single window system
Project Period
2004 ~ 2007
Project Cost
About 30 million (USD)
Ministry of Knowledge Economy (MKE)
Korea International Trade Association (KITA)
Korea Trade Network (KTNET)
Leading Agencies
Year1
Building Core
Infrastructure
(2005)
Year 2
Introducing
eTrade portal
(2006)
Year 3
Realizing uTrade
by eBL & eNego
(2007)

10. Legal Infrastructure Enacted Trade Automation Act (1991)
Digital Signature Act
Trade
Automation
Act (1991)
e-Trade
Facilitation Act
(2005)
Commercial
Law (2007)
Foreign Trade Act
Electronic Transactions Act
Enacted Trade Automation Act (1991)
Revised the Act into ‘e-Trade Facilitation Act’ (2005)
Established legal basis for circulation of e-Trade documents
Defined role of service providers specializing in e-Trade
Revised Commercial Law (2007)
Introduced electronic bill of lading and specified the operating rules including title registry

11. Korea’s e-Trade before uTradeHub

12. Korea’s e-Trade with uTradeHub

13. Standards

14. Standardization Objective Korea Domestic & Int’l Standards Int’l
-To guarantee openness and interoperability of uTradeHub with international standards so that electronic trade documents may be exchanged among related entities domestically and internationally
- For uTradeHub to illustrate best practices of trade facilitation through national single window platform
Domestic
& Int’l
Standards
Korea
- Guidelines for development of XML Electronic messages(v3.0), Korea Institute for Electronic Commerce (KIEC)
- KIEC XML CC Library, KIEC
Int’l
-Core Component Technical Specification, UN/CEFACT TMG, 2003
- XML Naming & Design Rules, UN/CEFACT ATG, 2004
- UN/CEFACT Modeling Methodology, UN/CEFACT TMG, 2002

15. Standardization Process of uTradeHub
Business Process Analysis
Selection of docs for standardization 1
Analysis of Docs
CC abstraction and analysis
Standardization 2
Standards registration at Korea EDIFACT Committee (KEC) 3
Process
Analysis
(‘05.09)
Document
Standardization
(‘06.01 ~ ‘06.12)
Standards
Registration
(‘07.04~11)

16. Standards Evaluation at KEC
TAG
Technical Advisory Group’s Evaluation
Observing standards guidelines?
Technologically acceptable/desirable? SG
application
No. of Docs
Trade: 25
Financing and payment: 57
Logistics: 6
Customs : 6
Insurance: 8
Standards Group Evaluation
- Accommodating industry specific business requirements?
- Reflecting standardized business process?

17. uTradeHub Services @

18. Business Process in uTradeHub
Insurance
Export insurance
Credit Evaluation
Caro insurance
Requirements Certification
Import requirement certification (customs director)
Import requirement certification (recommendation)
Certificate of Origin
Customs
Customs clearance
Shipping and transportation
Shipping request
e-B/L
Cargo delivery
e-D/O (Master/House)
Bonded delivery request
Delivery allocation request
Financing and Settlement
Letter of Credit
e-Negotiation

19. Featured Service : MFCS
FFM,FWB,FSB
(Cargo-IMP)
Airline
(Overseas)
ARINC/
SITA
Airline
Integrated M/F
(KEDIFACT)
M-M/F
Carrier
Internet
(TCP/IP
MFCS
KCS Cargo Management
System
VAN
H-M/F
Forwarder
Functions
Collects manifest information from air lines/ocean carriers/forwarders
Consolidate data and submit to the Customs for comprehensive management of all cargoes entering/exiting Korea.
Benefits
Reduces cost of managing/distributing documents related to arrival and departure of ships, loading/unloading of cargo
Increases effectiveness/correctness of cargo related information 19

20. Shipping Companies/ Forwarders E-DO and e-LG Mgt system
Featured Service : e-DO
② Issuance of e-LG
④ access and authentication of e-L/G
Shipping Companies/ Forwarders ①
Bank
① Application
for e-LG
E-DO and e-LG Mgt system
② ‘
⑥ Notification
of e-DO
③ Submission of e-LG
⑤ Issuance of e-DO
Warehouses
Traders
Functions
provides convenient and timely ways for traders to pick-up import cargo without full set of shipping documents required for the pick-up of the cargo
Benefits
Saves cost by electronic procedure of application/issuance/notification of LG and DO
Convenient authentication of originality of LG and DO by way of electronic password methods, thus streamlining offline procedures
Increases effectiveness/correctness of cargo related information 20

21. Featured Service : e-LC Service
L/C work process before e-L/C
Advising
bank
EDI
Negotiating
Exporter
Printed on Paper
Paper
Notification
Negotiation
L/C work process after e-L/C
internet
internet
Negotiating
bank
Advising
bank
Notification
Negotiation
Exporter
e-L/C information saved in Trade Document Repository (TDR) and shared by banks
All processes (notice, transfer & negotiation) are electronically handled and recorded
As the negotiation result is shared by all banks, no risk of fraudulence or loss of L/Cs 21

22. Featured Service : e-B/L Service
e-B/L Management
System
Shipping Request
e-B/L
Title Registry
E-B/L notification/inquiry
Traders
Portal
e-TDR
e-B/L issuance/ inquiry UI
EAI
e-B/L information inquiry
Negotiation
Shipping Request
Shipping Request
e-B/L
e-B/L
e-L/C balance management system
Banks
Shipping Lines
Forwarders
Create and transfer BL electronically
Remove paper based operation
Manage related endorsement records