Socio-Economic Effects and Policy Issues of Korea Broadband Internet

1
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

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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.

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• Introduction

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Infocommunication Status
( Population 47million )
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30
30
24
24
25
20
(in millions)
15
Telephone
10
Mobile
Internet
5
0
1997
1998
1999
2000
2001
5
Broadband Internet Household
Unit million
6
Internet Usage at Home
Unit hours
Monthly Average Access Time in Each Country
7
Revenue of Telecom Services
(USD billion)
8

• Digital Society
• and Policy Issues

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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 (1999-2002)
• e-Korea Vision 2006 (2002-2006)

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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
  (19992003)
• 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)

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National Knowledge Management Project
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Cyber University
lt Cyber University gt
lt Cyber University Students gt
Unit Thousand persons
13
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
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, 2001
• 10 of working employees have more than 2 jobs
  and one of them are conducted at home (Source
  Jobkorea, survey)

15
Growth of Cyber Community
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Political Cyber Community

• During the Presidential candidate elections,
  Internet votes were counted after the security
  identification.
• April 18 - 27, 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.

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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
Internet Newspapers
Unit Million persons
As of Nov. 2001
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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 a Culture Producer
• There is an increase of internet broadcasts and
  DJs through internet chat sites.
• Chollian (ISP, www.chollian.net) has created a
  personal broadcasting center (www.inlive.com) for
  netizens

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e-Market Place
Number of e-MP
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Growth of the e-Commerce Market
Unit Billion USD
? Source Ministry of Information and
Communication
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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.

23
Growth of the Internet Stock Exchange
The total transactions in 2001 was 1.2 trillion
US
Unit
? Source Ministry of Information and
Communication
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Growth of Internet Banking Users

• Koreas Population 47 million

Unit millions
? Source Ministry of Information and
Communication
25
Summary of e-Korea
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Broadband Services and Contents
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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

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Certified Digital Signature Users
Unit million users
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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.

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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.

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Productive Business Management
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Internet Advertisement Market
Unit millions Users
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Internet Advertising

• e-Commerce Consumer Protection Act on September
  2000.
• Standards for internet shopping malls.
• Protection of privacy.
• Regulations regarding internet advertising
• must receive customers approval for emails
• must be less than 30KB
• Inform consumers on the risks and hazards on the
  internet.
• Refund policies

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Growth of the Monternet User
Unit millions users
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Growth of the Monternet User
lt Revenue for the wireless internet gt
lt Profit from the contents services gt
Unit millions USD
Unit millions USD
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• Digital Economy

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Production of the IT Industry

• The production of IT increased from 58.1 billion
  USD in 1997 to 109.9 billion USD in 2000 and
  growth in production is expected for the time
  being.

(USD billion)
Source Korea Association of Information and
Telecommunication
Note Throughout this statistical profile, we
use the current exchange rate 1,300Won/USD
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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
  2000.

Source Korea Information Society Development
Institute
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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 2000.

Source Bank of Korea
Note contribution rate (the real amount of
value added increase from IT industry) /
(the real amount
of GDP increase)
40
ADSL Related Export Status
Unit millions USD
? Source Ministry of Information and
Communication
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• Thank You