1. Status of e-Commerce in Korea Sangwon Lim Senior Researcher Korea Institute for Electronic Commerce Sangwon Lim Senior Researcher Korea Institute for Electronic Commerce Oct. 14, 2005

2. ▣ KIEC A Bridge between government and private sector A steppingstone for international cooperation A creator of an e-Business friendly environment A hub of Korea’s e-Business industry Korea Institute for Electronic Commerce, established pursuant to the Framework Act on Electronic Commerce, is dedicated to promoting e- Business as a driving force in the digital economy.

3. Infrastructure e-Business Research and Survey Development, Dissemination and Promotion of Standard e-Documents Support for Cultivating e-Business Human Resources Support for e-Business Technology Development Promotion of the e-Learning Industry Operation of Electronic Commerce Resource Center eTrust Authorization Program Electronic Commerce Mediation Commerce e-Business Week and e-Business Award Evaluation and Accreditation of e-Business Venture Participation in and Cooperation with Global Bodies in e-Business Cooperation with Major e-Business Leading Countries Government for Business (G4B) Promoting the e-Health Industry Designation of Accredited Electronic Document Repository Promotion Global Cooperation Enhancement Major Activities

4. ▣ Korea eCommerce Market YearTotalB2BB2GB2COther 2002172,832151,34916,1664,902415 2003228,445201,06421,0285,924429 2004305,286(100)271,578(89)26,583(8.7)6,262(2.1)863(0.2) e-Commerce Volume (Unit: Million USD) (Source: Korea National Statistical Office, May 2005)

5. E-Marketplace Business AreaNumberPercentage Chemistry146.0 Construction146.0 Agricultural, dairy & marine products, F&B198.1 Steel93.8 MRO239.8 Textile146.0 International Trade3314.1 Healthcare135.6 Oil52.1 Machinery & Industrial Materials2611.1 Electronics2611.1 Other3816.2 Total234100 (Source: Korea National Statistical Office, May 2005)

6. G2B (Government Procurement) YearTotalPurchase of Goods & ServicesConstruction 200216,1666,6029,564 200321,0288,17512,853 200426,583(100)9,541(35.9)17,043(64.1) (Unit: Million USD) (Source: Korea National Statistical Office, May 2005)

7. Cyber-shopping Mall NumberPercentage General Retailers32210.7 Specialized Retailers3,12289.3 Total3,444100 (Source: Korea National Statistical Office, May 2005)

8. ▣ KEBIX (Korea e-Business Index) e-Business e-Business - “e-business means strategically and systematically transforming and innovating business processes within and across firms by electronically networking various business actors, thereby improving operational efficiency and creating value” e-Business Index - Quantifiable values by evaluating the e-business status of companies comprehensively Scorecard - Objective assessment tools for diagnosing and comparing the specific situations, and scoring the core factors selected from the conditions Basic Definition

9. Environment Resource & Infrastructure Process People Value Customers, Suppliers, Government Policies that influence That influence the e-Business of an enterprises Computers, networks, security, and disaster recovery etc. for implementing e-Business e-Transformation of tasks and business processes CEO, executives, and employees carrying out e-business Effects and values acquired from the e-business The e-business scores is calculated based on only 3 areas: ‘Resources & Infrastructure’, ‘Process’, ‘People’ The evaluation on the ‘Environment’ and ‘Value’ not included in the e-business index score, but employed for analyzing the relationship between e-business and its performance Components of e-Business

10. I Environment (5) Customer Environment e-business readiness and infrastructure of customers Supplier Environment e-business readiness and infrastructure of suppliers IT Environment skills and service level of e-business enablers Policy and Industry Environment - environment of legal & institutional - environment of related associations & leading company II Resources & Infra (4) IT Investment financial resource for e-business initiative Computing & Network Implementation level of computing & network infra Security & Risk Mgt system/ process/ guideline for security & risk management DB & Integration management of DB and its integration III Process (4) Supply-side Process e-business in work processes for purchase & procurement Operation Process e-business in production and service development Sell-side Process e-business in sales and customer management Supportive Process e-business in personnel/ financial/ intellectual mgt IV People (5) CEO recognition and will of CEO on e-business Executives recognition and will of executives on e-business e-Business Org. & personnel capability and support of e-business org. & personnel Whole Org. & Personnel e-business mind and readiness of whole org. & personnel V Value (2) Overall Value value and benefit creation from e-business general Value by Process value and benefit creation in primary activities

11. Industry-Specific Scorecard Industry-Specific Scorecard Manufacturing(1) & Non-manufacturing(11) Scorecard Textile Petrochemistry Steel Machinery Electronics Motors Pulp/Paper Food/Beverage Manufacturing 12 Scorecard 12 Scorecard Non-Manufacturing Wholesale/Retail Construction Transport Telecommunication Public Services(3) Finance(4) Environment, Resources & Infrastructure, People  Identical across industry Process and Value  Differentiated across industry Environment Resources & Infra ProcessPeopleValue Identical Differentiated Industry-Specific Scorecard

12. ▣ KEBIX in Petrochemical in 2004 Overall Index Score Category 200220032004 WeightIndustryTotalPetro-Chem.WeightIndustryTotalPetro-Chem.WeightIndustryTotalPetro-Chem. Total Index 100%50.853.5100%51.653.7100%49.349.7 Environment15%60.759.8----54.046.4 Resources & Infrastructure 20%50.149.812%54.354.916%53.753.4 Process35%49.252.551%50.452.639%47.948.3 People30%48.354.137%52.454.945%48.749.7 Value-- -----44.341.5 (MOCIE, Dec. 2004)

13. Environmental Score Category 200220032004 WeightTTLPetro-Chem.TTLPetro-Chem.TTLPetro-Chem. Needs---68.860.466.257.4 Customer30%61.457.054.649.355.141.2 Supplier30%57.658.552.547.352.541.8 IT---56.256.3-- Industry20%65.7 ---- Competitor-----57.253.7 Laws & Systems ---54.049.050.346.8 Policy, etc. 20%59.260.0---- TTL100%60.759.755.751.354.046.4 (MOCIE, Dec. 2004)

14. Resources & Infrastructure Score

15. Process Score

16. People Score

17. Value Score

18. ▣ KEC (Korea EDIFACT Committee) KEC Structure KEC TAG KEDIFACT Sub-Committee ebXML Korea Committee Secretariat : KIEC Iron & Steel Committee Automobile SC …. Total of 31 SCs Procure- ment Committee Ad-Hoc Special Committee

19. SCDomainSCDomainSCDomain 1Trade11Iron & Steel21Industrial Tools 2Finance12Health Care22Agriculture/dairy 3Customs13Procurement23Construction 4Land Transport14Ship-building24Precision Chemistry 5Air Transport15Textile25 Mold & Die Industry 6Sea Transport16Electricity26Petroleum 7Insurance17Heavy Industry27Corrugated Packing 8Distribution18Bio-industry28Furniture 9Electronics19Watch & Clock29Logistics 10Automotive20Fastener30Culture & Tourism 31Cross-industry List of 31 SCs

20. Thank you!