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Korea ICT Industry
2010. 11. 24
Taewha HONG
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Contents
1. ICT Status in Korea
2. Key Success Factors
3. ICT for Sustainable Growth
Appendix: Introduction of ETRI
1. ICT Status in KOREA
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ｏ ICT Industry is at the core of Korean Economy
− ICT Exports: $120.9 bil. (2009)
− Share In Total Export: 33.3% (2009)
− Contribution Rate to the economic growth: 23.4% (2009)
− ICT helped Korea overcome 1997 financial crisis and recent economic downturn
38.1 36.6 35
31.1 33.3
0
10
20
30
40
50
0
100
200
300
400
500
2005 2006 2007 2008 2009
Total Export
ICT Industry Exports
Share(%)
ICT and Economic Growth
ICT Industry Export
Source: National IT Industry Promotion Agency, Korea (2010)
USD (Bil.)
(%)
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Flagship Products
Source: Gartner, Displaysearch
Global Competitiveness of Korea ICT Industry
NAND Flash ($13.6 B)
LCD-Panel ($64.2 B)
DRAM ($22.7 B)
Volume of Global Market (‟09)
Handset (1,140 M units)
FPTV ($96.4 B)
SEC, HYNIX (50.5%)
SEC, LGD (52.5%)
SEC, HYNIX (55.4%)
SEC, LGE (30.2%)
SEC, LGE (35.7%) Share of Korea
(‟09, Production)
60%
40%
20%
M/S
ｏ Flagship products are Memory Semiconductor, Display Panel, and Mobile Handset
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ICT Development Path of Korea
ｏ During last 30 years, Korea‟s ICT has been grew up into the first-level in the world for a short period and draw up the growth of national economy
• Global Market Share : rank 2 (24.8%) • Amount of export : $18.6bil('07)
1980 1990 1999
• Subscriber 14.7mil (Diffusion of Households: over 90%)
• Subscriber 43.49mil (Diffusion : 93.2%)
Establishing self-supporting foundation
TDX Development Establishment of basic communication infra
Ensuring global competitiveness
CDMA commercialization Rapid growth of mobile communication
Overcoming economic crisis
Global economic crisis Introduction of R&D competitive principle
Leading global market
IT 839 strategy Obtaining original technology: WiBro, DMB
Localization of foreign equipment
Overseas original technology marketing
Short period, technical R&D Obtaining individual original
technology
1989 1998 2003 2004
TDX • Estimated total sales : 5 Bil. euro (by 2010) • Solution of domestic wired market blocking
Mobile Service High-Speed Internet
WiBro DMB
2008
Mobile Phone
• Adoption of 3G mobile as ITU Standard • Start of domestic equipment export
• Adoption as Europe standard(ETSI)(„05) • Promotion of people's convenience through free T-DMB
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Primary ICT Service results of Korea
□ Commercial service year of ICT in Korea
CDMA High-speed
Internet DTV WCDMA DMB WiBro
1996 2001 2005 1998 2003 2006
E-government HSDPA
The first service in the world
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Infrastructure
□ Korea is at global top-level in ICT infrastructure and service penetration
Status of Korea ICT Infrastructure
Category 2004 2005 2006 2007 2008 2009
Broadband Internet Services
subscribers(1,000 households) 11,921 12,190 14,042 14,709 15,474 16,348
subscribers % 25% 25% 29% 31% 32% 34%
Internet
User(1,000 persons) 31,580 33,880 34,910 35,590 36,190 36,580
User % 70% 73% 75% 76% 76% 77%
Mobile Phone services
subscribers(1,000 persons) 36,586 38,342 40,197 43,497 45,606 47,944
subscribers % 77% 80% 84% 90% 95% 98%
e-Commerce Transaction Volume (Trillion KRW) 314 358 413 516 630 671
Internet Banking Subscriber (10,000 persons) 2,427 2,674 3,591 4,470 5,260 5,921
Source: Korea Communications Commission, Bank of Korea
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Internet Usage Environment
Average Measured Connection Speed (Q2 2010)
Rank Country Avg. Mbps
1 Korea 17
2 Hong Kong 8.6
3 Japan 8.0
4 Romania 6.8
5 Netherlands 6.5
6 Latvia 6.3
7 Sweden 5.5
- Global 1.8
High Broadband Connectivity (Q2 2010)
Rank Country % above 5 Mbps
1 Korea 75%
2 Japan 60%
3 Netherlands 49%
4 Romania 48%
5 Hong Kong 46%
6 Latvia 43%
7 Belgium 40%
- Global 22%
Source: Akamai, ‘The State of the Internet’, 2nd Quarter, 2010 Report
ｏ Korea is ranked at the top of the Internet Connection Speed and High Broadband Connectivity areas
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Korea’s Position in Global ICT Indices
□ Korea is top-ranked in major ICT Indices
ｏ E-Government Development Index [UN, ‟10]: #1 Korea (/192 Countries)
ｏ E-Participation Index [UN, ‟10]: #1 Korea (/192 Countries)
ｏ ICT Development Index [ITU. ‟10]: #3 Korea (/159 Countries)
ITU Development Index (ITU, 2010)
Internet Household
Country % Rank
Korea 94 1
Iceland 87 2
Netherland 86 3
Sweden 84 4
Norway 84 5
Mobile Broadband
Country % Rank
St Vincent & the Grenadines 133 1
Luxembourg 83 2
Japan 76 3
Korea 71 4
Singapore 65 5
Broadband Subscriber
Country % Rank
Sweden 41 1
Denmark 37 2
Netherland 35 3
Switzerland 34 4
Korea 32 7
Proportion of households with Internet
Mobile Broadband subscriber per 100 inhabitants
Fixed Broadband subscriber per 100 inhabitants
2. Key Success Factors
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Key Success Factors
Intensive & strategic investment in Broadband and CDMA
Promotion of e-commerce
Dense Residential Environment (Apartment Complex)
Key Success Factors
Introduction of Competition
Incentives to encourage Investment in New Services
Provision of low cost PC & ICT Training for 10 million citizens
Enthusiasm for Education, New Tech and Devices
Users
In
du
strie
s
Go
vern
me
nt
ICT adoption by traditional industries
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Technical Issues
ｏ Project planning and strategy
− HDTV : 3 years planning, exact trend forecasting
ｏ Role sharing of R&D strategic plan
Digital Contents
S/W solution
N.G. Battery Intelligence Robot Future Automobile
Bio tech
Digital TV Display
Intelligence Home Network N.G. Semiconductor
N.G. Mobile Communications
Low
Technology Maturity
National capacity High Low
Private initiative
Private + Government initiative
Government initiative
High
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Market Issues
ｏ R&D investment & commercialization plan
※ Terrestrial DMB: R&D, service plan, standardization
※ Intelligence Robot: strategically drive for initiative
ｏ Active participation of manufacture and supplier
※ Handset: co-work of part manufactures and assemblers
ｏ Market forecast
※ TFT-LCD: aware of the limitation of CRT, aggressive investment
※ System IC: identification the need from change of paradigm
※ International standard: international std. for global market
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Management Issues
ｏ Strong policy by government
※ TDX: committed by suppliers, driven by government
ｏ Consistent and constant policy
※ DRAM: 4M(‘86)-16M(89)-64M(‘91)-256(‘93)
ｏ Chain of Government–Institute-University-Manufacture-Supplier
− Government: coordination, standardization
− Institute and University: core technology, test evaluation, IPR
− Industry: commercialization
ｏ Competition and cooperation
− Remove duplicated investment, uncertainty
3. ICT for Sustainable Growth
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Green ICT
□ Green ICT Productivity
ｏ Cyber meeting
ｏ Transportation Information Systems
ｏ Electronic Document Systems
ｏ Cloud Computing
ｏ Smart Grid & Renewable Energy Sources
Workplace School Company
Zero Carbon Commuting
Reducing Paper Consumption
Realize Eco-Friendly Classroom
Provide Environment-Friendly Products and Services
Telecommuting Bicycles Netbook & e-Paper
Digital Textbook Electronic Blackboard IPTV
Low-power LED laptop Solar-powered Mobile phone
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ICT Convergence
□ Convergence between ICT & other Industries
ICT
Construction
Automobile
Medicine
Shipping
Logistics
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Future Growth of ICT
Past Growth Future Growth
HW Driven SW Based
Convergence IT Utilization
Convergence btw. ICT & other industries based on S/W development and increased ICT utilization across all industry sectors
Paradigm Shift
Protect Environment Stimulate Economic Growth
Exploit Environment
Future Growth of ICT
Strategic Goals of Korean Government
Convergence
SW
ICT HW
Broadcasting & Communications
Internet
Creating 10 ICT-converged Industries
Promoting SW Companies with Global Competitiveness
Providing Global No. 1 Service by Next Generation Network
Building more Secure and faster Internet Environment
Strengthening the Initiative of Mobile Phone, Display Panel, and Semiconductor Promoting Equipment Industries
Appendix: Introduction of ETRI
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About ETRI: General Information
ｏ Government funded, Independent R&D organization
ｏ Established for the ICT R&D in Dec. 1976
ｏ 11 Lab. Buildings in 342,814m2 of Daejeon Campus
ｏ Economic effects for 30 years: 104.57 Trillion Kwon
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Vision and Management Strategy
Smart & Green Technology Innovator
International Standard Patent
INNOVATION National Strategic
Technology
Development World Class technology
INTELLECTUAL ASSET IPR maintenance
INDUSTRY TECHNOLOGY Commercialisation
Creative Management with Constant modification and Innovation
Planning System between Creation and Innovation
Global Open R&BD Platform
New IPR Biz Strategy
New Tech Transfer Biz called
“Eco-System”
Innovative Personnel
Development
<Innovation> <Intellectual asset> <Industry>
Vision
Goal
Strategy
Technology Transfer
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Personnel, Budget & IPR
Government funded projects: 79.8%
Industry funded projects: 5.0%
Government research grant: 6.5%
Royalty & other income: 8.7%
[2006. 12. 31. 기준]
[March 2010]
Int’l Patent
Int’l Standard
US$50M
18case
US$40M
34case
Patent Application 3,326case 3,484case
2007 2008 Total 2009
3,986case
US$28M
28case
$539 million USD
30,725case
171case
US$526M
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ETRI’s Major Achievements
World Semiconductor Market Leadership
1 Telephone per household & Nationwide Automation of Telephone System
DRAM
TDX
CDMA
Terrestrial DMB
WiBro
First Commercialization of CDMA System & Contribution to Domestic Industry· Economy
World First Terrestrial DMB Service in Korea in 2005
World First Service of High-speed Mobile Internet
Continuous Creation & Expansion of New ICT Service Markets in Korea ETRI’s 30-year Contribution to Korean Economy (estimated)
: 104.6 billion USD (per input of 4.4 billion USD) * 1,000KW/USD
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Role of ETRI in Korea ICT Innovation
ｏ Core of Technology Community
− ETRI plays the key role in Korean ICT Community the by securing core technologies such as TDX, DRAM, CDMA, Terrestrial DMB, Wibro, etc.
ｏ Guide of the national ICT market
− ICT Innovations in Korea was conducted strategically through nationwide ICT roadmap
− Because of the ETRI’s status as a government funded research institution, ETRI’s technologies had good chances of being adopted as standards in Korean ICT market
ｏ Quick Commercialization of Technologies and its halo effect
− TDX, CDMA, Wibro, Terrestrial DMB, etc.
ｏ Organization of Technology Community and provide knowledge base for private sectors
− Provide knowledge base through Joint R&D with commercial firms
− ETRI’s technology transfer mechanism allows SMEs to commercialize new technologies
