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NCA Second OECD Broadband Workshop Socio-Economic Effects and Policy Issues of Korea Broadband Internet June 5, 2002 Dr. Yoon, Byeong-Nam National Computerization.

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Presentation on theme: "NCA Second OECD Broadband Workshop Socio-Economic Effects and Policy Issues of Korea Broadband Internet June 5, 2002 Dr. Yoon, Byeong-Nam National Computerization."— Presentation transcript:

1 NCA Second OECD Broadband Workshop Socio-Economic Effects and Policy Issues of Korea Broadband Internet June 5, 2002 Dr. Yoon, Byeong-Nam National Computerization Agency Ministry of Information and Communication Republic of Korea

2 NCA Second OECD Broadband Workshop MIC, Republic of KOREA Abstract In the 21st Century, experts foresee a knowledge based society. –There are currently 500 million internet users worldwide. –Networked knowledge and information has become a powerful tool in enhancing international competitiveness. –The construction of the broadband infrastructure is one of the top priority policy in most country. –The Korean government strongly promoted informatization and the construction of the broadband infrastructure. –As a result Korea has the largest broadband penetration rate in the world. –The broadband internet is creating new markets and cultures. This presentation will discuss: –The current status of Koreas active broadband services. –Policy issues to promote more broadband services. –Socio-economic effects of the broadband services.

3 NCA Second OECD Broadband Workshop MIC, Republic of KOREA Introduction

4 NCA Second OECD Broadband Workshop MIC, Republic of KOREA Infocommunication Status ( Population : 47million ) Telephone Mobile Internet (in millions) 29 24

5 NCA Second OECD Broadband Workshop MIC, Republic of KOREA Broadband Internet Household [ Unit : million ]

6 NCA Second OECD Broadband Workshop MIC, Republic of KOREA Internet Usage at Home [ Unit : hours ] Monthly Average Access Time in Each Country

7 NCA Second OECD Broadband Workshop MIC, Republic of KOREA Revenue of Telecom Services (USD billion)

8 NCA Second OECD Broadband Workshop MIC, Republic of KOREA Digital Society and Policy Issues

9 NCA Second OECD Broadband Workshop MIC, Republic of KOREA National Grand IT Projects National Grand IT Projects since 1980 – TDX switch system in 1984 – CDMA mobile system in 1996 – National Basic Information System in 1996 – ATM Broadband Internet System in 2000 Cyber Korea 21 ( ) e-Korea Vision 2006 ( )

10 NCA Second OECD Broadband Workshop MIC, Republic of KOREA National Knowledge Management Project A consolidated national knowledge system through digitalization of knowledge information was needed. Information Knowledge Database Expansion and Consolidation System Construction Plan ( ) Act of Knowledge Resources Management (Jan. 2001) Digitalize the data in 5 fields: –Education, history, science & technology, culture, telecommunication Korea Institute of Science and Technology Information digitalized 9 DB (2000) Ministry Of Culture & Tourism digitalized 15 DB (2001) Korean Education Research & Information Service digitalized 14 major DB, $19 million US (2002)

11 NCA Second OECD Broadband Workshop MIC, Republic of KOREA National Knowledge Management Project

12 NCA Second OECD Broadband Workshop MIC, Republic of KOREA Cyber University [Unit : Thousand persons ]

13 NCA Second OECD Broadband Workshop MIC, Republic of KOREA Cyber University The internet manages all the universities administrative services. Tests, final exams, assignments the requirements for a degree are no different than off-line universities. There was a 170% increase in the number of registered students in 2002 totaling 16,700 students.

14 NCA Second OECD Broadband Workshop MIC, Republic of KOREA Work at Home The Samsung SDS introduced Work at Home as of March, 2002 KT introduced Work at Home for a Telephone directory Operator 114 since 1998 Korean Airline introduced Work at Home for the disabled flight reservation customer representative since 2001 Seoul Metropolitan Government is planning to introduce a trial "Work at Home as of May 2002 Established laws governing telecommuting on March, % of working employees have more than 2 jobs and one of them are conducted at home (Source : Jobkorea, survey)

15 NCA Second OECD Broadband Workshop MIC, Republic of KOREA Growth of Cyber Community

16 NCA Second OECD Broadband Workshop MIC, Republic of KOREA Political Cyber Community During the Presidential candidate elections, Internet votes were counted after the security identification. –April , 2002 –2.5% of the votes More than 81% of Congressmen have a personal homepage. 61.5% of Congressmen have planned or have used the Internet as means of raising political funds 84% of Netizens feel that the internet is an effective way to express ones political opinions.

17 NCA Second OECD Broadband Workshop MIC, Republic of KOREA Policy against Side Effect The Telecommunications Ethics Committee was formed to regulate Internet contents. –Suicide site, Abusive materials, Sexual contents, etc. Information Utilization Protective Division in Ministry of Information and Communication –Policy of private information protection, prevention of unwholesome information distribution

18 NCA Second OECD Broadband Workshop MIC, Republic of KOREA Internet Newspapers [Unit : Million persons ] As of Nov. 2001

19 NCA Second OECD Broadband Workshop MIC, Republic of KOREA Advent of Prosumers The netizens are no longer passive culture consumers but are active culture producers. –Through the development of computer programs, it is easier for users to publish books, produce short films, write music, etc. –More opportunities are available to be involved as aCulture Producer –There is an increase of internet broadcasts and DJs through internet chat sites. –Chollian (ISP, has created a personal broadcasting center (www.inlive.com) for netizens

20 NCA Second OECD Broadband Workshop MIC, Republic of KOREA e-Market Place Number of e-MP

21 NCA Second OECD Broadband Workshop MIC, Republic of KOREA Growth of the e-Commerce Market [ Unit : Billion USD ] Source : Ministry of Information and Communication

22 NCA Second OECD Broadband Workshop MIC, Republic of KOREA Ubiquitous Internet Stock Trading Stocks can be traded via cellphone and PDA anywhere. Customized stock trading alerts the investor when the stock reaches a certain price. Stock Exchange

23 NCA Second OECD Broadband Workshop MIC, Republic of KOREA Growth of the Internet Stock Exchange The total transactions in 2001 was $1.2 trillion US [ Unit : % ] Source : Ministry of Information and Communication

24 NCA Second OECD Broadband Workshop MIC, Republic of KOREA Growth of Internet Banking Users Koreas Population : 47 million [ Unit : millions ] Source : Ministry of Information and Communication

25 NCA Second OECD Broadband Workshop MIC, Republic of KOREA Summary of e-Korea

26 NCA Second OECD Broadband Workshop MIC, Republic of KOREA Broadband Services and Contents

27 NCA Second OECD Broadband Workshop MIC, Republic of KOREA Advanced Internet Service Policy The results of Cyber Korea 21: –Broadband penetration is over 8 million households –Multimedia contents (Movie, Games, Video, Audio, etc.) are actively use. Free of charge because of undependable service. –e-government, e-commerce, and e-procurement More security is needed. To guarantee the QoS and Security, –e-Korea vision 2006 –ATM MPLS technology

28 NCA Second OECD Broadband Workshop MIC, Republic of KOREA Certified Digital Signature Users [ Unit : million users]

29 NCA Second OECD Broadband Workshop MIC, Republic of KOREA Public Key Infrastructure Digital Signature Act (Feb. 1999) The Certification Authority supports a secure e-Commerce and e-Government environment. PKI(Public Key Infrastructure) was established to promote a safe and secure environment for networked services nationwide. –National procurement, e-education, e-civil services, etc. The government leads the public to use digital certificates and expects that the total number of users will reach 10 million by the year 2002.

30 NCA Second OECD Broadband Workshop MIC, Republic of KOREA Small Business Network Project Personal users have affordable access to the internet via services like ADSL, cable modem, etc. On the other hand, most small-mid sized businesses can not afford the expensive leased line service. Therefore, the government established Small Business Network Project on December 2001 The government supported 2.9 million small-mid sized companies through IT education, e-business services and hardware. In the year 2002, $15 million will be invested into the project.

31 NCA Second OECD Broadband Workshop MIC, Republic of KOREA Productive Business Management

32 NCA Second OECD Broadband Workshop MIC, Republic of KOREA Internet Advertisement Market [ Unit : millions Users]

33 NCA Second OECD Broadband Workshop MIC, Republic of KOREA Internet Advertising e-Commerce Consumer Protection Act on September Standards for internet shopping malls. –Protection of privacy. –Regulations regarding internet advertising must receive customers approval for s must be less than 30KB –Inform consumers on the risks and hazards on the internet. –Refund policies

34 NCA Second OECD Broadband Workshop MIC, Republic of KOREA Growth of the Monternet User [ Unit : millions users]

35 NCA Second OECD Broadband Workshop MIC, Republic of KOREA Growth of the Monternet User [ Unit : millions USD] [ Unit : millions USD]

36 NCA Second OECD Broadband Workshop MIC, Republic of KOREA Digital Economy

37 NCA Second OECD Broadband Workshop MIC, Republic of KOREA Production of the IT Industry The production of IT increased from 58.1 billion USD in 1997 to billion USD in 2000 and growth in production is expected for the time being. (USD billion) Note : Throughout this statistical profile, we use the current exchange rate 1,300Won/USD Source : Korea Association of Information and Telecommunication

38 NCA Second OECD Broadband Workshop MIC, Republic of KOREA Share of the IT Industry in GDP The IT industry has continued to have a growing share of the GDP from 8.6% in 1997 to 13.0% in Source : Korea Information Society Development Institute

39 NCA Second OECD Broadband Workshop MIC, Republic of KOREA Contribution Rate of IT to GDP The IT industry contributed to economic growth(GDP) with a mere 4.5% in 1990, which drastically increased to 50.5% in Source : Bank of Korea Note : contribution rate = (the real amount of value added increase from IT industry) / (the real amount of GDP increase)

40 NCA Second OECD Broadband Workshop MIC, Republic of KOREA ADSL Related Export Status [ Unit : millions USD ] Source : Ministry of Information and Communication

41 NCA Second OECD Broadband Workshop MIC, Republic of KOREA Thank You


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