1. 1 INFORMATIZATION Korean Experience Asia Pacific Regional Forum on ICT Applications May 18, 2011 Seungtaik Yang Ph.D. Korea Advanced Institute of Science & Technology (KAIST)

2. May 18, 2011 Seungtaik Yang Ph.D. KAIST 2 Current Statistics Broad-band Internet:17,224,000. (34%) Mobile Phones:50,767,000. (101%) Main Line Telephones:19,275,000. (38%) Internet Users: 35,600,000. (74%) Internet Banking Users: 59,206,000. (118%) Smart Mobile Phone Users: 10,000,000. (20%) (3/23/2011) ICT Production:11% of GDP Export Contribution (ICT):33.0% ICT Trade Surplus:190% of National Net * Note: % Penetration BOK Data 2010 * Note: % Penetration BOK Data 2010

3. May 18, 2011 Seungtaik Yang Ph.D. KAIST 3 Social Impacts Highest Penetration of the Broadband Internet 100% of Total House Holds use Broad Band Internet. Broad Band Internet Service became a Universal Service. Highest Penetration of the Broadband Internet 100% of Total House Holds use Broad Band Internet. Broad Band Internet Service became a Universal Service. Successful Completion of Seamless and Shadow Free Digital Mobile Infrastructure. The First Ubiquitous Digital Communication Environment. Successful Completion of Seamless and Shadow Free Digital Mobile Infrastructure. The First Ubiquitous Digital Communication Environment. Combination of the above Two Digital Networks completes the Most Essential Infrastructure for Knowledge Based Information Society. Combination of the above Two Digital Networks completes the Most Essential Infrastructure for Knowledge Based Information Society.

4. May 18. 2011 Seungtaik Yang Ph.D. KAIST 4 HOW KOREA DID IT FOUR STAGES FOUR STAGES BOOTSTRAP STAGE BOOTSTRAP STAGE HOW TO GET OUT OF THE POVERTY CYCLE. HOW TO GET OUT OF THE POVERTY CYCLE. BUILDING NATIONAL CONFIDENCE IN ICT. BUILDING NATIONAL CONFIDENCE IN ICT. INFORMATIZATI0N STAGE INFORMATIZATI0N STAGE HOW TO PERSUADE CONSERVETIVES. HOW TO PERSUADE CONSERVETIVES. WHERE TO START E-GOVERNMENT. WHERE TO START E-GOVERNMENT. BUILDING UBIQUITOUS NETWORK BUILDING UBIQUITOUS NETWORK DEVELOPMENT OF CDMA TECHNOLOGY. DEVELOPMENT OF CDMA TECHNOLOGY. COMPLETING SEAMLESS DIGITAL NETWORK BY COMPETITION. COMPLETING SEAMLESS DIGITAL NETWORK BY COMPETITION. PUBLIC PARTICIPATION STAGE PUBLIC PARTICIPATION STAGE HOW TO MAKE PUBLIC PARTICIPATE WILLINGLY. HOW TO MAKE PUBLIC PARTICIPATE WILLINGLY. WHAT IS THE IMPACT OF PUBLIC PARTICIPATION. WHAT IS THE IMPACT OF PUBLIC PARTICIPATION.

5. BOOTSTRAP STAGE(1) Policy Issues: Policy Issues: How to build a sustainable loop of Technology Development and Industrialization when there is no Technology Base and no Financial Resources. How to build a sustainable loop of Technology Development and Industrialization when there is no Technology Base and no Financial Resources. Solution: Solution: Use Potential Market which is under government control, such as telecommunications for source of R/D fund and for products of their own use. Use Potential Market which is under government control, such as telecommunications for source of R/D fund and for products of their own use. Let local industry produce the products. Let local industry produce the products. Use of the products generate more revenue, part of which can be used for further Technology Development. Use of the products generate more revenue, part of which can be used for further Technology Development. Thus completing a positive sustainable feedback loop. Thus completing a positive sustainable feedback loop. May 18, 2011 Seungtaik Yang Ph.D. KAIST 5

6. BOOTSTRAP STAGE(2) FLAGSHIP PROJECT: TDX Project FLAGSHIP PROJECT: TDX Project Development of a Digital Electronic Switching System Development of a Digital Electronic Switching System Project Period: 1982 ~1986 Project Period: 1982 ~1986 Total R/D Cost:US$40,000,000. (production setup cost excluded) Total R/D Cost:US$40,000,000. (production setup cost excluded) R/D Manpower:1,500 man-years R/D Manpower:1,500 man-years Partners:Samsung Electronics LG Information and Comm. Daewoo Telecom. Oriental Precision Partners:Samsung Electronics LG Information and Comm. Daewoo Telecom. Oriental Precision May 18, 2011 Seungtaik Yang Ph.D. KAIST 6

7. BOOTSTRAP STAGE(3) IMPACTS OF TDX PROJECT IMPACTS OF TDX PROJECT Successfully Built Confidence in Local Technology making it easier to take on ensuing large technology development projects. Successfully Built Confidence in Local Technology making it easier to take on ensuing large technology development projects. By 1988, telephone can be installed within one day after order. By 1988, telephone can be installed within one day after order. By 1990, Korea becomes an exporting country of Digital Electronic Switching System. By 1990, Korea becomes an exporting country of Digital Electronic Switching System. May 18, 2011 Seungtaik Yang Ph.D. KAIST 7

8. BOOTSTRAP STAGE(4) Encouraged by the Success of the TDX Project, Following 2 Mega Projects could be launched without too much opposition. Encouraged by the Success of the TDX Project, Following 2 Mega Projects could be launched without too much opposition. 4 MDRAM Project 4 MDRAM Project Development of an Indigenous Technology for production of 4 mega bit DRAM. Development of an Indigenous Technology for production of 4 mega bit DRAM. TiComp Project TiComp Project Development of Main Server Computer for Government Administration. Development of Main Server Computer for Government Administration. May 18, 2011 Seungtaik Yang Ph.D. KAIST 8

9. INFORMATIZATION(1) e-Government e-Government Status Status Organized Opposition from EDPS Center of Government. Organized Opposition from EDPS Center of Government. Inter-Department Competition. Inter-Department Competition. No Budget Allocation No Budget Allocation Solution Solution Distributed Networked Solution instead of existing Centralized Solution. A New Law was enacted to reflect this concept. Distributed Networked Solution instead of existing Centralized Solution. A New Law was enacted to reflect this concept. Project be financed by non-government fund initially, then government pays back by use rate. This avoided budgeting the development projects, annual use rate already budgeted was enough to pay back the financed cost in 10 years. Project be financed by non-government fund initially, then government pays back by use rate. This avoided budgeting the development projects, annual use rate already budgeted was enough to pay back the financed cost in 10 years. May 18, 2011 Seungtaik Yang Ph.D. KAIST 9

10. INFORMATIZATION(2) 1st PHASE -1986: 5 NETWORK PROJECTS 1st PHASE -1986: 5 NETWORK PROJECTS Administration Computer Network Administration Computer Network Resident Registration Administration Resident Registration Administration Real Estate Administration Real Estate Administration Automobile Administration Automobile Administration Customs Service Administration Customs Service Administration Employment Service Administration Employment Service Administration Economic Statistics Administration Economic Statistics Administration National Security Computer Network National Security Computer Network National Health Care Insurance Computer Network National Health Care Insurance Computer Network Education Computer Network Education Computer Network Research Computer Network Research Computer Network May 18, 2011 Seungtaik Yang Ph.D. KAIST 10

11. INFORMATIZATION(3) 1 st Phase went into full service by 1991. 1 st Phase went into full service by 1991. 2 nd Phase was expansion of computerization into other administration areas. 2 nd Phase was expansion of computerization into other administration areas. 3 rd Phase was mainly for G4C (Government for Citizen) Programs, that began services in 2002. 3 rd Phase was mainly for G4C (Government for Citizen) Programs, that began services in 2002. Korea is now ranked #1 for UNs e-Government Readiness Index. Korea is now ranked #1 for UNs e-Government Readiness Index. May 18, 2011 Seungtaik Yang Ph.D. KAIST 11

12. UBIQUITOUS NETWORK(1) CDMA Mobile System Development CDMA Mobile System Development Saturation of Analog Mobile System. Saturation of Analog Mobile System. Needed Leapfrogging in Digital Mobile Technology. Needed Leapfrogging in Digital Mobile Technology. Project Details: Project Details: Period:1991 ~ 1995 Period:1991 ~ 1995 R/D Cost:US$110,000,000. R/D Cost:US$110,000,000. Manpower:1,042 man-years Manpower:1,042 man-years Partners:Samsung Electronics Hyundai Electronics LG Information and Comm. Partners:Samsung Electronics Hyundai Electronics LG Information and Comm. May 18, 2011 Seungtaik Yang Ph.D. KAIST 12

13. UBIQUITOUS NETWORK(2) In April 1996, Worlds First Commercial CDMA Mobile Communications System in Service. In April 1996, Worlds First Commercial CDMA Mobile Communications System in Service. In 1997, Heavy Competition among 5 carriers. In 1997, Heavy Competition among 5 carriers. In 2000, Completion of Seamless Ubiquitous Digital Network. In 2000, Completion of Seamless Ubiquitous Digital Network. In 2006, Nationwide 3G Services. In 2006, Nationwide 3G Services. In 2011, Nationwide WiBro 4G Services. In 2011, Nationwide WiBro 4G Services. May 18, 2011 Seungtaik Yang Ph.D. KAIST 13

14. PUBLIC PARTICIPATION In 1997, Asian Financial Crisis generated many jobless people. To help these to get new job, 10 million Internet training program initiated. These people became main source of Koreas informatizing power. In 1997, Asian Financial Crisis generated many jobless people. To help these to get new job, 10 million Internet training program initiated. These people became main source of Koreas informatizing power. They made Korea the first country to make ADSL a commercial product, with which broad band network via telephone line became possible. They made Korea the first country to make ADSL a commercial product, with which broad band network via telephone line became possible. Thus use of Internet became a part of everyday life. Therefore people in Korea invest in broadband internet out of their own pocket competitively. This is why Korean government did not spend any budget for expansion of broadband internet. Thus use of Internet became a part of everyday life. Therefore people in Korea invest in broadband internet out of their own pocket competitively. This is why Korean government did not spend any budget for expansion of broadband internet. May 18, 2011 Seungtaik Yang Ph.D. KAIST 14

15. May 18, 2011 Seungtaik Yang Ph.D. KAIST 15 Summary This is the Summary of a Story how Korea worked so hard for last 30 some years to complete an Infrastructure and Test Bed for the Knowledge based Information Society. This is the Summary of a Story how Korea worked so hard for last 30 some years to complete an Infrastructure and Test Bed for the Knowledge based Information Society. We Hoped that The Test Bed would Automatically Develop or Revolutionize Services and Technologies for New Digital Industries. We Hoped that The Test Bed would Automatically Develop or Revolutionize Services and Technologies for New Digital Industries. But We are learning that Creation of New Digital Industry requires a lot more than a Test Bed, and it requires Participation of Many Creative Entrepreneurs Who Dare to Try out Their Ideas. But We are learning that Creation of New Digital Industry requires a lot more than a Test Bed, and it requires Participation of Many Creative Entrepreneurs Who Dare to Try out Their Ideas.

16. May 18, 2011 Seungtaik Yang Ph.D. KAIST 16 Future Issues Economical Broadband Mobile System: Economical Broadband Mobile System: To Revolutionize Video Distribution System. To Revolutionize Video Distribution System. To Create and Poster Multimedia Industry. To Create and Poster Multimedia Industry. To Provide the Ubiquitous Computing Environment. To Provide the Ubiquitous Computing Environment. Creation of New Digital Industry: Creation of New Digital Industry: To Poster Prosumer Environment. To Poster Prosumer Environment. To Promote Active Participation of All Citizen. To Promote Active Participation of All Citizen. Pro Business Environment: Pro Business Environment: Improvement of Digital Test Bed for creation of New Business. Improvement of Digital Test Bed for creation of New Business. Continuous Improvement of Business Environment to encourage creative young minds to start new businesses. Continuous Improvement of Business Environment to encourage creative young minds to start new businesses. Environment to nurture Collective Intelligence. Environment to nurture Collective Intelligence. Creation of Information Age Educational System: Creation of Information Age Educational System: Information Age is here already, but Industrial Age Educational System is still here. Information Age is here already, but Industrial Age Educational System is still here.