Globally - Influential Information Technology Journal
JANUARY 2006 / Vol.19 www.ittimes.co.kr
Bright Future Dawns
For Software Industry
New ‘Post-IT839 Strategy Focuses on SW Industry Growth
U.S. $7.99 / KOR. 8,500 per copy
N.America, Europe, Oceania China RMB 56 Korea Won 8,500 Philippines Pesos145
US$7.99 Fiji US$7.99 Macau HK 549 Singapore SS10.90(Inc.GST)
Australia A$8(Inc.GST) Hong Kong HK$47 Malaysia RM16,50 Taiwan NTS200
Bangladesh TK 160 India Rs12- New Zealand NZ$9.00 Thailand Baht150
Brunei B60 Indonesia Rp29.000 Pakistan Rs160 Tonga US$7.99
Cambodia US$7.99 Japan Y1000 Papua New Guinea K10 Vietnam US$7.99
New Year’s Message
Korea IT Times Plays Vital Role
In Promoting Korea’s IT Industry
Dear readers, executives and staff members of Korea IT Times, the New
Year has begun with renewed hope for us all. I wish all of you bright
prospects and happiness in the Year of the Dog.
Last year, South Korea developed the portable Internet WiBro in the
Internet field for the first time in the world and its technology was adopted as
the international standard.
Along with this, its terrestrial Digital Multimedia Broadcasting (DMB)
technology was also adopted as the European standard.
Domestically, the commercial service of DMB started last year for the first
time in the world, tiding over many difficulties.
I think, in the course of attaining such favorable results, Korea IT Times,
an IT-specialized monthly magazine, has played an important role to
enhance interest and understanding of the domestic IT industry both at home
Minister of Information and and abroad by offering the nation’s IT-related information and trend faithful-
ly and properly.
As the Korean minister in charge of the IT industry, I express my thanks to
Korea IT Times once again.
In the New Year, I wish Korea IT Times will continue heralding the
nation’s advanced IT industry and trend to all over the world, greatly con-
tributing to promotion of IT exchanges and cooperation between Korea and
other countries and between domestic and foreign enterprises.
KOREA IT TIMES January 2006 _ 3
Contents January 2006 / Vol.19
32 Software Industry 26
EU-Korea Boosting Cooperation in R&D and SMEs
Blueprint to Elevate the Infrastructure for Research
“Ubiquitous,” the Word on Everyone’s Lips in 2006
60 CES Special
IT Wagging Economy’s Tail in Year of the Dog 27 IT ‘Globalution’ Era
‘U-World,’ the new future of KT
Exciting Year Ahead Offers New Hope
All Set for CES 2006
Hanaro and Thrunet Joining Hands in 2006
Opinion/ Korean Wave
30 Malaysians Embracing Korean Pop Culture
Cover Story/ Post IT839
32 IT Wagging Economy’s Tail in Year of the Dog
34 2005, Bonanza Year for IT Korea
Cover Story/ Software Industry
38 From IP Powerhouse to SW Giant?
40 “IT Powerhouse to SW Powerhouse”
Technology & Standards Graphic Design _ Kim In-ki
42 Agency for Technology and Standards
Transforming National Standards and Certification Chairman & Publisher Kim Tae -sub
Executive Advisor Han Kon- ju
President & Publisher Monica Jung Younboo
Technology Fund 52 Korea-China Game Industry Association Executive Director Shin Hyun Doo
3 New Year’s Message: MIC Minister Chin Dae-je 44 Korea Technology Credit Guarantee Fund Ideal Game Partners Editor- in- Chief Monica Jung Younboo
Korea IT Times Plays Vital Role In Promoting Korea’s IT Industry Mecca for Venture Financing 53 Game Business Circles’ challenge Editorialist
Senior Editor Peter W.Strydom
Technology What Awaits the Game Industry? Managing Editor Yeo Hong Il
6 Publisher’s Message: Editorial Director Lee Kyung Hwan
46 Super High Touch Co. Ltd. 54 MGAME Corp.
Post-IT839 strategy must heed past mistakes IT Industry Editors Kim In Ki
“Food Traceability System” Going Global The Rise of MGAME Lee Chung Moo
SW & game industry, two vital axes of future Korean economy Business Editor Lee Kang- Soon
Game Special On-the-scene Report Senior Reporter Jeffrey D. Bohn
7 Editorial: Contributing Writers Koo Won-hum
48 An Explosive Entertainment Phenomenon 56 Japan: Gateway to Japan
Korea’s Road to ‘U-World’ through Global Standards Staff Reporters Yeon Choul Woong
49 Ministry of Culture and Tourism 57 Malaysia: Truly Asia! Lee Suk Woo
New Year’s Message Tackling Global Game Markets International Show/ CES 2006 Photorgrapher Shin Sung-won
10 President: Are you still worried about the economy as we begin 50 Korean Association of Game Industry 60 CES is Here!: Korea sweeps CES Innovation Awards
Advertising Manager Shin Doo hyo
Art Director Kim in-ki
the New year? A Next-Generation Industry 62 All Set for CES 2006 Designers Cho Hee-sang
Ryu Mi Ja
New Year’s Policy Direction 63 Samsung Electronics: Leading Global Electronics Market in 2006 Internet Manager Bok Dong-kyu
12 National Assembly’s Commerce, Industry and Energy 64 LG Philips LCD: Showcasing Innovative Suite Business Manager Kim Chang ho
Win-win Strategy Required for SMEs and Conglomerates
48 Game Special 65 LG Electronics: CES 2006 Innovation Awards for Korean Firms
Sales & Marketing Manager Yoon Jong-jin
66 $100 Bil. Electronics Exports Breakthrough Publication Team Manager Yoon Hee-Joo
Korea Information Processing Society An Explosive Financial Auditor
Bold Plans for Korea’s Top-Level Academic Society in 2006 Entertainment 68
New Products/ Texas Instruments
Proving Texas is Bigger and Better Correspondents
16 Korea Information Science Society Phenomenon 69 YongPyeong Int’l Ski Festival
James Joo young-hoon
Choi Young-zun. Lee Sung-ki
New Horizons in 2006 for Computer Engineering Field Korea’s Ski Mecca Southeast Asia Lee Jin-bok
Far East Kim Moon-soo
Accreditation China Chun Jong Sung
News Panorama Oceania You In-kyung
New Year’s Activity 70 KDC: Cutting-edge 3D Imaging SW Asia Choi Duk-hee
M.East Chung Jung-ja
18 2014 PyeongChang Olympic Winter Games “Dynamic u-Korea1” Overseas Sales/Distribution Agents ( Reference: www.ittimes.co.kr)
PyeongChang: Going for Gold in 2014 71 SAS Ranks No. 1 Business Intelligence Vendor in Asia Pacific Korea IT Times Guide
Published by KDC Times Co of the KDC Group
New Year’s Message 72 Communication-Broadcasting Fusion Sets Trends for 2006 5F, Hyundai Intellex Bldg, 261, Nonhyeon-dong, Gangnam-gu, Seoul,
73 BMC Customers Day 2005: Putting the Customer First korea(135-010)
20 Human Resources Reform Tops Agenda for 2006 Tel: (82-2)3459-0664//0621/0678/0671~79
21 Targeting $1 trillion in trade 74 Korea Ranks 1st in ITU’s Digital Opportunity Index Http://www.ittimes.co.kr
76 Wireless Mobility Comes of Age E-mail: email@example.com
23 Korean Economy Gathering Momentum for Growth Under the pertinent registration No. RA-09536 on Oct.2, 2003
24 Corporate Power and Competitive Edge in Human Resources 77 Redback Networks Receives Leading Lights Award for Best Advertising
Investment Potential Te l: (82-2)3459-0664 Fax: (82-2)569-5160/69
Needed Subscription & Circulation
Tel : ( 82-2)3459-0678/0583
Traders’ Companion in Year of the Dog IT Essay/ Digital Hallyu (III) Subscription Rate by Air Mail
24 Defining Year for a Korean IT Icon 80 Time to Rethink “Dynamic Korea” Brand Newsstand in South Korea: US$ 7.99(8.500 won)per copy
Within South Korea: US$86.30(91.800won)per year(12 issues)
Far East:US$129.50per year(12 issue)
Southeast Asia: US$ 215.80 per year(12 issues)
N. America, Europe, Oceania, SW Asia, M.East: US$ 268.90
Per year ( 12 issues)
* Post-IT839 strategy must heed past mistakes Korea’s Road to ‘U-World’ through Global Standards
* SW & game industry, two vital axes of future Korean economy Possession of original technologies is key to competitiveness in world markets
n his New Year’s address, President Roh Moo-hyun upper hand in the tech world through standards, thus, signifies
s the IT policy of Korea’s Ministry of Information &
I stressed the nation should be confident, as “Korea is a an enormous power in the global market.
A Communication (MIC) steps up to the ‘Post- IT839 policy’ as from
this year, it is timely to review the performance thus far of the IT839
policy and its accomplishments and failures.
It is an undeniable fact that the IT839 policy has decisively upgraded
Korea’s IT level one or two notches. However, policy-planners must heed
dynamic nation whose people have acted up to its potential.”
As President Roh has said, Korea is undoubtedly a
dynamic country that has a proud history of immense progress
in various fields.
In the IT field, in particular, the nation has taken giant
As a matter of fact, it has become a fact of life in the IT
field that the opportunity to take part in the making of global
standards is not given to any country or company that does not
possess a technological prowess. Accordingly, the making of
global standards for information technologies is led by
strides in such fields as and with respect to semiconductors, developed nations that possess most of the original
voices pointing out that there were some negative aspects to the IT839 policy,
TFT-LCDs, Internet accessibility, and Internet users’ technologies.
such as unrealistic goal presentations, as well as outlook, deepening the existing
fascination with Cyberspace, making Korea ranked tops in a Since original technologies are those that form the basis of
market’s stagnation, insufficient objectivity of selections, production structure
recent survey for the UN’s “Digital Opportunity Index.” numerous branches of commercialized ones, the situation is
inefficiency, absence of profit models and double investment concerns,
Furthermore, the nation has recently achieved a milestone of such that it becomes hard for latecomers to rid themselves of
preventing the IT839 policy from accomplishing all what was originally
breaking the $100 billion mark in the annual export of electric the technological veils shadowed by developed nations.
goods. The gap in the competitive strengths between the two can
Aside from these, the recent adoption of the mobile easily widen under the burden of billing for royalties.
In addition to this ambitious IT839 policy, “From IT powerhouse to SW
Internet WiBro by the IEEE 802.16 committee as the mobile Moreover, if the situation develops to such a stage where it
powerhouse” is another initiative of the MIC to achieve production of 53 Kim Tae-sub version of WiMax is much anticipated to drive the nation becomes compulsory to use only the technologies recognized
trillion won, exports of $5 billion, and 10 Korean global 100-level companies. Chairman and Publisher
down an even more dynamic road in 2006 following the as global standards, the developing nations, as well as the
As one of the main promotional tasks for the nation’s SW industry development,
commercialization of DMB service and mobile television. underdeveloped, would incur greater burdens of paying the
we will pay attention to the progress of the “SW Industry Development
On the corporate side, too, there are plentiful cases of enormous sums of royalties.
Strategy” such as IT service companies’ specialization, embedded nurturing of high-grade SW
bright prospects. Samsung Electronics, for instance, has In order to break the vicious cycle, it is necessary to have
manpower, nurturing of leading companies to spearhead SW packages, and nurturing of first-rate
teamed up with TV operator Omnivision to deploy the mobile comprehensive development models linking the overseas
digital content companies.
WiMAX service in Venezuela. The agreement, which was marketing of information technologies with the activities
At the same time, Korea’s mushrooming game industry is developing firm roots as one of the
signed on December 16, 2005, will see the first WiMAX related to bring about global standards. Above all, this is
growth engines of the Korean economy. The nation’s game industry, the market size of which had
deployments being rolled out in the city of Caracas during the necessary not just for the sake of a nation’s economic growth
grown to 4.3 trillion won in 2004, a 9.6% rise from the previous year, is estimated to have increased
third quarter of 2006, and six other cities by the end of 2009. but also for the sake of technological advancement that could
by about 10% to 4.8 trillion won in 2005. In this respect, the January 2006 issue of The Korea IT
Field trials for the mobile Internet are also under way in a be made through competition on the global level as a whole.
Times intensively explores various facets of the game industry through several interviews with
number of regions including the United States, Japan and It is true that Korea has for some time seen quite a number
industry leaders and experts such as Kim Yeong-man, chairman of the Korean Association of Game
South America. All these developments are in a way sufficient of achievements made with regard to global standards.
Industry (KAOGI), Lim dong-keun, chairman of the Korea China Game Industry Development
for the nation to proclaim that it has stepped ahead of others in Nevertheless, things are not so amicable for people in the IT
Assciation ( KCGA), and newly established Game Industry Division director of MCT (Ministry of
commercializing the technology, a testimony showing the world to sit idly by.
Culture & Tourism).
nation’s emergence as a tech leader in a market which, Almost all the tools of civilization today are in the process
according to Samsung Electronics, is forecast to grow to $4.2 of converging with information technologies, such as the
Buoyed by excellent technology power and products, continuous economic growth, and the
billion in 2010, compared with $500 million this year. combination of voice with data, the integration of wireless
initiatives of leading enterprises, this New Year’s IT market in Korea is also forecasted to expand
Likewise, the IT industry, which accounts for about 15% of with fixed lines, the convergence between broadcasting with
by 5~10 percent, according to a survey carried out among some of the CEO’s of the world’s major
the nation’s GDP and 30% of exports, has played a key role in telecom, and the coupling of IT with home electronic
placing the nation as the 11th largest trading economy in the products.
world. Moreover, the world has become and continues to be
We are hopeful that Korea’s IT industry will again prove its worth to the national economy by
In the case of mobile phones, in particular, Korea has made intertwined through the Internet, thus placing the government
paving the way for new horizons of growth for the Korean IT industry even though there is a
conspicuous headway as can be seen by Korean mobile phone and various institutions, and companies engaged in
proviso that the government regulatory measures should be controlled, along with ‘excessive
manufacturers vying for a top place in the global market, international operations on a platform more global than ever
competition,’ so that Korea’s IT industry can develop without hindrances.
where already one out of four mobile phones are now Korean- before.
made ones. Undoubtedly, times have also been demanding them to
Behind all the dazzling figures, however, is the 1.4 trillion display wisdom to focus in key areas and make concerted
Kim Tae-sub won Korea had to pay in royalties to QUALCOMM for the efforts for Korean firms’ venturing out beyond the nation’s
past three years. QUALCOMM’s stature in the CDMA field is borders and for making global standards through which the
so solid, industry watchers say, that its prowess in the nation can claim to be truly dynamic when it comes to making
WCDMA field, too, will persist for years. The holding of an contributions for the benefit of all.
6 _ January 2006 KOREA IT TIMES KOREA IT TIMES January 2006 _ 7
New Year’s Message / President
Are you still worried about
the economy as we begin the New Year?
Fellow Citizens, The New Year of 2006 has dawned. I wish all of you a very
WANT TO DO
happy and prosperous New Year. Our profound consolation goes out to the resi-
dents of those regions that suffered serious damage from an unprecedented
snowstorm. Please do not be too discouraged.
The government will do everything in its power to assist you. Fellow
Citizens, Are you still worried about the economy as we begin the New Year?
Please do not be consumed with worries. For the economy is turning around.
The country has now completely gotten over the crisis that brought on the IMF
bailout plan. The adverse consequences of the crisis are all but gone as well. KOREA?
Let SBC help!
Nonetheless, life of ordinary people is still difficult financially. In the New
Year, the Government will make extensive efforts to further improve their eco-
nomic situation. We have had a fair share of confusion and instability arising
Roh Moo-hyun, from various conflicts. It will rather change in the New Year, however.
President of Republic of Korea
Most of the major problems that have hindered us appear to have been
straightened out. This year, we should be able to prepare for the future in a more
serene atmosphere. The Republic of Korea is a dynamic country. When we look
back upon the past 30 years, it has changed enormously. And this pace of
The Most Reliable Route to
changes will continue for some time. While I believe that we still need to run for
our goals, we also need to adjust the speed and make preparations for the future
Qualified Korean Manufacturers
calmly, reflecting upon the past and rectifying mistakes.
We cannot be optimistic about our future in 20 or 30 years if we continue with
the old paradigm. We have to engage in creative and open-minded thinking as
we chart strategies for the future. Yet concerted efforts of a few people thinking
this way would not usher in a brighter future. All of our citizen shall join forces.
Fellow Citizens, Let us see farther and think more profoundly.
Let us talk with one another with open minds. Let us build a society where
everyone takes collective responsibility for the decisions that have been arrived
at through a democratic process. Let us respect the rules of our own making and
let us cooperate and carry out our own promises.
By doing so, trust shall be built among us and we will finally become one. Have you ever considered out-sourcing products or components?
But don’t know where to start?
And a bright future will be assured. Fellow Citizens who I hold in respect, The
Here’s Korean partner for you.
Korean people have always accomplished anything and everything that we have The Best solution to strategic alliances with a Korean manufacturer is now within
set out to. With hope and confidence, let us march forward together. Fellow your reach through SBC.
Citizens, I wish all of you a Happy New Year.
1 0 _ January 2006 KOREA IT TIMES
New Year’s Policy Direction National Assembly’s Commerce, Industry and Energy Committee
Win-win Strategy Required “To help SMEs escape
from hardships this
for SMEs and Conglomerates year, the committee
Q: Would you outline the policy
direction of the National Assembly’s
Commerce, Industry & Energy
It is because the selection finally put
an end to a 19-year-old controversy over
where to build the low and intermediate
will actively Committee for 2006? level radioactive waste dump and laid the
encourage SMEs to
A: Although we exerted best efforts foundation for its construction.
o tide over mounting difficulties, small and medium-sized and electronics
T enterprises (SMEs) should seek a win-win strategy with
large companies or public corporations in 2006,
according to one of Korea’s senior lawmakers.
sectors as a
means of making
South Korea an
establish a win-win
strategy with large
for reform of the Commerce, Industry
and Energy Committee last year, there
are still many problems to be solved.
In 2006, we will redouble efforts to
It is also quite significant in that the
way the nuclear waste site was chosen
suggests a new model for a democratic
procedure in promoting state projects in
“In 2005, SMEs faced serious difficulties stemming from IT powerhouse in
companies or public
make it a “pleasant commerce, industry the future.
sluggish domestic consumption, worsened financial the world, he
& energy committee, which works At the same time, the energy basic
environment, and shortage of raw materials in the wake of a said, “Frankly
together with the people.” law concerning the overall state
surge in oil prices,” Rep. Kim Yong-gap, chairman of the speaking, many
And, I plan to spread such a changing operational means in the energy sector
National Assembly’s Commerce, Industry and Energy supporting
climate to all sectors of the National was passed at the National Assembly.
Committee, said. measures are
Rep. Kim Yong-gap, Assembly. The year 2005 was a really meaningful
In an interview with the Korea IT Times, Kim said, “To help being sought in the Science, Technology, Information and
chairman of the National year.
SMEs escape from such hardships this year, the committee will Communication Committee, rather than in the Commerce, Assembly’s Commerce, Industry &
Q: A number of important issues
actively encourage SMEs to establish a win-win strategy with Industry and Energy Committee.”
were settled in the commerce, indus- Q: What are your hopes and aspi-
large companies or public corporations.” From the industrial aspect, however, the Commerce, Industry
try and energy in 2005. Would you rations for Korea’s industries and its
Noting that one of the most important issues to be dealt with & Energy Committee is also seeking a variety of supporting
comment on your impressions and people?
by the committee this year is active supports for SMEs, Rep. means for the IT and electronics industries.
appraisals on the matters? A: The year 2005 was a very difficult
Kim said, “Both the government and the National Assembly In particular, we are exerting all-out efforts for improving the
A: In fact, there were many epoch- year for all of us, including small and
should work together to inject fresh vigor into SMEs and the environment surrounding venture companies, he said. “Our society is in making decisions and changes in the medium-sized enterprises.
domestic economy.” Commenting that some venture companies failed to use
“In addition, I am making a strong push for revamp of supporting funds for their business projects properly in the past,
serious difficulties commerce, industry and energy in 2005. However, I think that the bigger
While serving as chairman of the difficulties we are facing, the greater
relevant laws and regulations this year to remove long-lasting resulting in business failure, Rep. Kim said that the committee owing to the Commerce, Industry & Energy joys and glories we will receive in the
conflicts between city gas suppliers and district heating plans to establish a stabilized supporting tool for venture
suppliers,” said Rep. Kim companies this year. polarization Committee at such an important time, I
felt a heavy burden personally, but I
Our society is in serious difficulties
To solve the chronic problem, we should make access to the “In keeping with this, venture entrepreneurs are also required
issue from the state’s energy strategic aspects, he said adding, “I to faithfully keep sound entrepreneurship and strive to make a
phenomenon and dealt with the matters with great owing to the polarization phenomenon
pleasure. and conflicts between different interest
am now in consultation with the Ministry of Commerce, success in the venture business,” said the veteran lawmaker. conflicts between In particular, I think, the year 2005 groups.
Industry and Energy regarding the matter.” Asked about main issues he dealt with in 2005 as chairman
As for the National Assembly’s plan to lend support for IT of National Assembly’s Commerce, Industry and Energy different interest deserves to be registered as epoch- Accordingly, I hope that all people
will join hands and work together to
making in the promotion of state projects
Committee, Rep. Kim said, “While taking office
as the committee chairman, I placed top
groups.” as Gyeongju in North Gyeongsang build a wealthy and healthy country this
Province was selected as the nuclear year.
priorities on several matters personally.”
waste dumpsite through a vote.
Firstly, I decided to make a “pleasant
commerce, industry and energy committee
together with the people.” necktie, and requested participating public servants to follow “Accordingly, I’d like to let many people know more about
Secondly, I was resolved to remove me. the activities of the Commerce, Industry and Energy Committee.
traditional authoritarianism from the National For the first time in the history of the National Assembly, I In line with this, I exerted best efforts to herald the committee’s
Assembly. carried out on-the-spot parliamentary inspections of many activities to the people in a sincere attitude, while striving to
Related to this, I changed desk and chair of places, including a conventional market, a candle light enliven the national economy,” he said.
the committee chairman to ordinary ones of demonstration spot and a nuclear reactor, to hear people’s actual As a result, our committee was selected as the best standing
general committee members, while removing a voices and reflect them to enacting laws and regulations. committee in the parliamentary inspections of government
gavel. In fact, he said, the Commerce, Industry & Energy offices. And, we could do many things for boosting the national
In summer, I presided over the committee Committee does not attract keen attention from the people, economy through parliamentary inspections of government
meetings, while taking off jacket and without a considering the importance of its business. offices and budget screening.
Taking into account that the National Assembly is the most I cannot be 100% satisfied with the committee’s activities in
Rep. Kim inspecting local retailer’s direct route to reflect public opinions of the people, I think, it 2005, but I think the committee has reached a satisfactory level.
merchandise has a problem.
1 2 _ January 2006 KOREA IT TIMES KOREA IT TIMES January 2006 _ 1 3
Inauguration Message / Academia
Korea Information Processing Society
Bold Plans for Korea’s Top-Level
Academic Society in 2006
Three major international conferences to be held in Korea
An inaugural New Year Message with famous foreign academic societies
delivered by the newly elected chairman such as IEEE or ICEIC, we will seek ways
Byun jae-il of the Korea Information to invite heads of the academic societies to
Processing Society (KIPS) and member of Korea and herald KIPS to foreign coun-
the National Assembly of Korea, who took tries, as well as activate bilateral personnel
Assemblyman Byun jae-il,
office as from January 2006...Ed. exchanges. chairman of the KIPS
In particular, we will newly establish an
ince its establishment in 1993, KIPS international cooperation committee to lent papers actively and improve quality of
(www.kips.or.kr) has developed attract famous international academic sem- the English papers.
remarkably, with the number of its inars on information and science and make Fifth, we will carry out overall busi-
members exceeding 10,000 in 2005. thorough preparations. nesses to secure stable financial sources of
As a head of the nation’s top-level acad- Thirdly, I will map out ways to boost KIPS.
emic society, I feel a great responsibility activities of each study groups and branch- To this end, we will request special cor-
for management of KIPS. es. Related to this, I will liquidate study porate members to subscribe to KIPS,
I will set 2006 as the year for another groups with little performance decisively while mapping out a method to activate
leap forward for KIPS. Related to this, I and work out proper measures to boost dormant members who have delayed the
will place top priorities on the following activities of each study groups and branch- fee payment for a long period.
eight projects: es. Also, we will make all-out efforts for In addition, we will activate the acade-
Firstly, I plan to bolster cooperation and active and sound management of KIPS by mic-industrial cooperation committee and
business ties between KIPS and informa- liquidating committees with little perfor- hold short-term lectures or workshops,
tion and communication-related institu- mance decisively and establishing new which will be helpful to the finance of
tions and businesses. committees to push for fresh projects. KIPS, creating a profit generating model.
I will meet with heads of the Ministry of Fourth, we will push for improvement Sixth, we will offer a member manage-
Information and Communication and other of the top three academic journals (theses, ment service by building Article
relevant institutions and companies and academic papers, papers written in Contribution Management System
seek ways to enhance bilateral cooperation English) in terms of both quality and quan- (ACOMS).
between KIPS and its counterparts. tity. We will activate an express screening We will open the comprehensive infor-
Secondly, I will attract and hold system. In case that many papers are wait- mation network now in test in the first half
advanced international academic confer- ing for publication, we will expand edition of 2006 to provide KIPS members with
ences and symposiums. At present, KIPS volume to contain more papers. speedier, more convenient and high-quality
has held the three international academic At the same time, we will activate an services.
conferences-Asia-Pacific International express screening system by keeping the Seventh, we will map out a plan for
Symposium on Information Technology deadline for screening thoroughly. We will informatization of secretariat. In prepara-
(APIS), Asian Language Processing and seek ways to encourage other papers to tion for an era of globalization, we will
Information Technology (ALPIT) and quote KIPS papers frequently in their refer- conduct education programs for informati-
International Conference on Computer and ences. zation and foreign languages for staff
Information Science (ICIS). Along with this, we will shorten the members of the secretariat.
We will make full-scale preparations paper screening period and continue pub- Through effective division of business-
and extend full support to the top three lishing the KIPS papers written in English, es and a business circulation system, we
international events in order to put them on which made a debut in 2005. will revamp the climate of the secretariat
the list of Lecture Notes in Computer In linkage with such international acad- and maximize business efficiency.
Science (LNCS) in the immediate future. emic conferences as APIS and ALPIT Eighth and lastly, we will map out ways
Through close business cooperation organized by KIPS, we will publish excel- for independence finance of KIPS.
1 4 _ January 2006 KOREA IT TIMES
Inauguration Message / Academia
Korea Information Science Society
New Horizons in 2006 for Computer
Engineering Field Accreditation
KISS playing leading policy role for Korea to be a global software power
ith the inauguration of the new president on Jan. 1, 2006 pursued in the New Year, building upon the existing ‘IT839
as an impetus, the Korea Information Science Society Strategy,’ the newly inaugurated president expressed his support
(www.kiss.or.kr), with a long history and an for it. He explained that MIC’s initiative also to proclaim 2005
authoritative academic society in the fields of domestic as the first year of software industry nurturing was desirable, in
computers, as well as software, is transforming itself. that software development is a one of Korea’s priorities. In
As one example, this Society which is being assessed as a conjunction with its policy presentation for Korea to become a
distinguished academic institution in Korea in terms of society software power, he underlined that the Society’s role was
scale, active member numbers, academic activity and so forth, is important.
striving to change the existing Korea Computer As examples of industries Korea could
Congress (KCC)-its academic general meeting, develop even more, he named solutions for
which will be held on June 21~23, 2006 in game, animation development, worldwide IT
Yongpyeong, Gangwon Province, Korea-to one services, embedded software for mobile
in which members can enjoy the Congress with applications and so forth.
their families, by developing a variety of The president further emphasized the
programs. importance of international academic
The newly inaugurated president, Kim exchanges. In fact, the Korea Information
Dong-Yoon, Ph.D./Dean & Prof., Graduate Science Society has been representing Korea
School of Information Communication & in International Federation of Information
Technology, Ajou University, revealed his Processing (IFIP) and assumed leadership of
further plans to activate this Society’s several academic conferences’ establishment,
academic activities in an exclusive interview such as ICOIN, JWCC, DASFAA, APSEC and
with the Korea IT Times to commemorate his WAAC.
inauguration. Its academic exchange collaboration with
To begin with, he stressed that the Society overseas institutions includes IFIP
would consolidate its firm groundwork as the Prof. Kim Dong-Yoon, president of
(International Federation for Information
competent society of computer engineering Korea Information Science Society Processing), IEEE (The Institute of Electrical
field accreditation. Second, the Korea and Electronic Engineers), IEEE/CS (The
Information Science Society will upgrade its current phase one Institute of Electrical and Electronic Engineers/Computer
notch higher by inviting papers of higher quality through its Society), ACM (Association for Computing Machinery), IPSJ
online paper contribution system, in which graduate school (The Information Processing Society of Japan), KOCSEA (The
students also can submit their theses, and by publishing an Korean Computer Scientists and Engineers Association in
English journal. Kim elaborated on his plans, adding that America), and IEICE-ISS (The Institute of Electronic,
reinforcing the Society’s Web site also is one of the main Information and Communication and Systems Society).
priority projects in 2006 New Year for young professors to be For reference, this Society’s registered members number
able to easily access academic information, job information and 17,307 persons and institutional member amounted to 362 as of
lecture materials. 2005.
As the largest bottleneck in carrying out such projects, Kim Expressing his hopes for the future, Kim stressed that the
identified the financial problem as the most important subject of Korean Information Science Society has to first of all serve as a
discussion, pointing out that to some degree, the government’s foundation for academic research, and in that respect, he would
support for special IT-related academic societies is necessary. do his best to enhance awareness of IT, and to universalize IT.
Concerning the so-called evolving ‘Post IT839 strategy’ of Beyond this, he hoped to develop software technology through
the Ministry of Information & Communication (MIC) to be educational-industrial collaboration and to create jobs.
1 6 _ January 2006 KOREA IT TIMES
New Year’s Activity 2014 PyeongChang Olympic Winter Games
PyeongChang: Going for Gold in 2014 Q: Would you comment on the gov-
ernment’s support for PyeogChang
striving to host the 2014 Winter
Q: What will be the benefits of the
PyeongChang Winter Olympics if the
Olympics? A: In my opinion, South and North
Reviving bid for 2014 Winter Olympics, after narrow 2010 loss to Vancouver A: President Roh Moo-hyun has Korea have already united into one in
extended full support to PyeongChang and terms of sports.
and Borjomi-Bakuriani of Georgia. leap forward in the competition,” he said. the government’s supporting committee, In many international sports events,
In an interview with Korea IT Times, Asked about the merits of led by prime minister, was newly set up to including the Sydney Summer Olympics,
Han said, “To attain the long-cherished PyeongChang, the chairman said that help the city attract the 2014 Winter the Busan Asian Games, and the Daegu
dream for the 2014 Winter Olympics, we PyeongChang is blessed with natural Olympics. Universiade, South and North Korean
will actively push for strategic resources such as the most ideal altitude, In particular, the government has athletes entered the sports stadiums
international public relations activities this enough quantities of fallen snow and decided to spend 30.5 billion won in simultaneously.
year. optimum snow quality. budgets this year for expansion of relevant At the same time, we are pushing
“Related to this, we will actively In addition, all sports stadiums are infrastructure, including construction of ahead with constituting a single team of
participate in the IOC observer programs, located within one-hour distance of Han Seung-soo, chairman of the sports stadiums and transportation South and North Korea for the 2008
including the Turin 2006 Winter Olympics Yongpyeong in PyeongChang. 2014 PyeongChang Olympic Winter networks. Beijing Summer Olympics.
Games Bid Committee
to be held in Italy on Feb. 10-26 and the “Accordingly, we can offer convenient The National Assembly will also create The PyeongChang’s hosting of the
2006 AIPS Congress set for May in Qatar, traffic networks and up-to-date facilities, a similar committee to extend full supports 2014 Winter Olympics, if realized, will
while maintaining close relations with helping participating players display their to PyeongChang in the immediate future. also greatly contribute to settling down
dignitaries in the world’s sports circle and skills to the maximum extent with the best peace on the Korean peninsula and the
the press,” said Han. conditions,” said Han. Q: How about preparations for world’s peace.
The chairman said the Bid Committee In terms of regional impact, the 2014 sports stadiums to host the 2014
would continue to improve international Winter Olympic Games in PyeongChang Winter Olympics? Q: Would you introduce
confidence in PyeongChang’s hosting will also allow the area to develop as one “The PyeongChang’s A: A total of 13 sports stadiums are PyeongChang’s competitors for the
ability and upgrade the awareness of the of the major centers of Asia winter sports, needed. We will supplement the existing 2014 Winter Olympics?
PyeongChang region. greatly contributing to the development
hosting of the 2014 six sports grounds and are pushing for A; At present, seven cities-two in Asia
“At the same time, we will actively and spread of the winter sports in the Winter Olympics, if building seven new sports arenas. and five in Europe-are engaging in fierce
he year 2006 is a very important year push ahead with the 2006 ‘dream Asian region. Ski competition will be held in competition. They are PyeongChang,
for Pyeongchang, a country in program,’ which will invite 117 young Along with this, the hosting of the realized, will also Yongpyeong, Bogwang, Sungwoo and Salzburg of Austria, Almaty of
boys and girls from 30 countries in the Winter Olympic Games, as did the 1988 Jungbong ski resorts; speed skating, Kazakhstan, Sochi of Russia, Jaca of
Gangwon Province, which is going
world where winter sports are not Seoul Summer Olympic Games, can
greatly contribute to figure skating and short-track events in Spain, Sofia of Bulgaria and Borjomi-
all-out to achieve its long-cherished dream
of hosting the 2014 Winter Olympics, developed to experience winter sports and further contribute to peace on the Korean settling down peace on Gangnung; and ice hockey competitions Bakuriani of Georgia.
according to Han Seung-soo, chairman of to promote cultural exchange and peninsula, he said. in Wonju. We will begin construction for All of the cities are powerhouses for
the 2014 PyeongChang Olympic Winter international friendship,’ he said. In addition, in the course of attracting the Korean peninsula three sports stadiums for ski jump, winter sports, so competition is expected
biathlon and cross-country in April this to be fiercer than in 2010. For instance,
Games Bid Committee. Under the dream program operating
over 7 years from 2004 through 2010,
the 2010 Winter Olympics, PyeongChang
has secured enough competitiveness,
and the world’s peace.” year for completion in October 2007. The Salzburg, Sofia and Jaca are challenging
Until Feb. 1, 2006, PyeongChang will
submit Q&A documents to the about 100-200 players as well as coaches accumulating relevant know-how and 2008 Biathlon World Cup and the 2009 the Winter Olympics for the third time,
International Olympic Committee (IOC), from 20-40 countries every year are building personnel and material networks World Championships will be held in the and Sochi is challenging it for the second
and the IOC will select candidate cities for trained free of charge in six sports such as with dignitaries in the world’s sports sports stadiums. time.
the 2014 Winter Olympics among the alpine and cross country skiing, circle.
bidders on June 22 this year, he said. snowboarding, speed skating, short track, At the IOC general meeting on July 2,
After conducting on-the-spot surveys of and figure skating. Gangwon Province has 2003, where the 2010 Games hosts were by three votes to Vancouver. days of rapid growth. One consequence is country.
candidate cities during the February- already fixed 15 international matches determined, Korea’s PyeongChang City, a The failure was bitter but also left it that the region has preserved undefiled Gangwon has three national parks-
March period of 2007, the IOC will under the program. non-factor in the bidding period compared with something too. Now Gangwon nature with both mountains and beaches, Sorak, Odae and Chiak Mountains. Sorak
determine the final bidder to host the 2014 “Gangwon is, no doubt, endowed with to the well-known Western competitors, Province, home of PyeongChang, is favored for holiday destinations. Mountain especially is one of the best-
Winter Olympics on July 7, 2007. a great natural environment for winter surprised the officials present. known in the winter sports scene, and is The region is also considered a known tourists’ spots.
Apart from PyeongChang, a total of six sports. However, most of all, it is heartfelt The city was top in the first round, past named as one of the favorites in the “parental place” of the nation, since it The well-preserved natural
cities are officially bidding for the hosting support from its residents that made the Canada’s Vancouver and Austria’s bidding for the 2014 event. includes Baekdudaegan, the biggest environment in Gangwon Province is used
of the 2014 Winter Olympics-Salzburg of province what it is now. Now also with Salzburg. However, three votes short of Gangwon Province escaped the mountain range in Korea, which crosses in lots of movies and TV dramas, which
Austria, Almaty of Kazakhstan, Sochi of full-scale support from the government, winning the bid outright, PyeongChang uncontrolled development, which took the peninsula and also is the source of 14 led to a rise in foreign visitors to the
Russia, Jaca of Spain, Sofia of Bulgaria PyeongChang is looking to make a big had to go into a second round, which it lost place over much of the country during the mountain regions, and many rivers in the region.
1 8 _ January 2006 KOREA IT TIMES KOREA IT TIMES January 2006 _ 1 9
New Year’s Messages
Kim Jin-pyo, deputy prime Lee Hee-bum, minister of Kang Shin-ho, Chairman Sohn Kyung-shik, Chairman of Kim Jae-chul, Yoon Jong-yong, Wolfgang Slawinski Yim Chu-hwan, president of
minister and minister of commerce, industry and Federation of Korean the Korea Chamber of chairman & CEO, KITA vice chairman of Samsung Chairman of IT & Telecom the Electronics and
education and human energy Industries (FKI) Commerce and Industry Electronics Committee, EUCCK Telecommunications Research
resources development (KCCI) Institute (ETRI).
Human Resources Reform Now, the development and management of excellent man-
power from the national dimension has become an essential
Fifth, we will extend active supports for fostering talented
people who will lead the national growth through universities'
To let the people's high educational fever work as a loco-
motive power to achieve $20,000 or $30,000 in per capita
Tops Agenda for 2006
issue for survival of the people. strategies for specialization and bolstering of competitiveness. national income, it is very important for the government to
Related to this, we need to enhance efficiency through A social sense of sympathy that rapid and bold reforms of carry out high-level educational policies satisfying consumers'
Kim Jin-pyo, deputy prime minister and minister of education and merger and coordination of policies related to human resources universities are needed to enhance national competitiveness demands.
human resources development development, which are now scattering in government min- has already been created. To do so, the ministry will carry out effective and desirable
istries. Accordingly, each university should refrain from seeking educational policies through endless reforms.
he Year of the Dog has begun and we greeted the new As the ministry in charge of development of human department-style management and make best efforts to con- We will carefully listen to the voices of the people and
morning, anticipating the nation's another take-off in resources, the Ministry of Education and Human Resources centrate on a few competitive fields. reflect opinions of those concerned to implementation of edu-
advancing the era of $20,000 in per capita national income Development will set up the "human resources reform head- We will accelerate such academic-industrial cooperative cational policies.
through education. quarters" and launch the "national human resources commit- projects as universities' structural reform, NURI project and I hope the Korean people will actively participate in the
Last year, we introduced a ubiquitous learning system and a tee," whose chairman is president, this year. school enterprises, which started in keeping with the inaugura- ministry's efforts and extend full support.
scholarship lending system under the government's guarantee, In particular, the ministry will construct infrastructure, tion of the Participatory Government. I once again wish all Korean people good health and happi-
injecting fresh vigor into our society. which forecasts demand and supply of national manpower At the same time, we will improve the operation system for ness in the New Year.
In the New Year, we will also continue all-out efforts to from the pan-ministry dimension and offer information on national universities, while pushing for introduction of a sys-
offer confidence and hope to the Korean people. education and labor market. tem for professional graduate school in the law, medical sci-
Based on results and reflection in 2005, we plan to place
Targeting $1 trillion
Along with this, we will create the World Human ence and management sectors, and the second-phase BK 21
first priorities on the following policy projects in 2006: Resources Development (HRD) Forum to possess a global- projects.
Firstly, we will exert best efforts to actively foster talented level channel for cooperation in human resources policy, while We will actively foster excellent graduate schools in many
people armed with creative and leading learning power.
Secondly, we will push ahead with building an "education
pushing ahead with effective HRD policies for the people.
Fourth, we will converge our energy on the construction of
regions in linkage with regional strategic industries, move of
public institutions and creation of reform cities.
safety network" to cut off transfer of poverty from generation a lifetime occupational educational system, which calls for Along with this, we will go all-out to foster basic studies, Lee Hee-bum, minister of commerce, industry and energy
to generation through education and remove educational alien- lifelong education through smooth implementation from the root of creating knowledge, while strengthening research
ation from our society. school to job site and from job site to school. activities on basic studies. he Year of the Dog opened with great hope. I wish all of
To remove educational gap between regions and between In keeping with an increase in liquidity of labor market and In keeping with the trend of globalization and liberaliza- you good luck throughout the year.
income brackets, we will stage campaigns to foster regions early entry into an aging society with a low birth rate, we will tion, the government will improve English educational sys-
placing first priorities on education and welfare and expand a also build a "supporting system for lifetime design from the tems dramatically for primary and middle schools, while In particular, I deliver my New Year greetings to all
scholarship system for students attending technical junior col- national dimension" in order to enhance the function linking actively supporting overseas advancement of the nation's e- Koreans working in the overseas trade, industrial sectors.
leges from low-income families. work, learning and employment. learning, now on the top level in the world. Last year, the Ministry of Commerce, Industry and Energy
To actually guarantee educational chances for poor people, In order to actively foster manpower satisfying the demand (MOCIE) exerted best efforts to recover the vitality of the
the government will establish hospital schools in the country by industries, the ministry will reform a vocational education Based on high educational fever, Korea has entered the national economy and make the nation an advanced industrial
for children staying in hospital for a long period and strengthen system for vocational high schools and junior colleges. ranks of economic powers in just a half century, while achiev- powerhouse.
an educational system for children of foreign workers here. At the same time, we will maximize development and use ing democracy simultaneously. Thanks to efforts and ardor of all Korean people, we
Thirdly, we will establish a foundation to actively foster of human resources in all walks of life, including soldiers, However, if we fail to absorb such high educational fever achieved considerable results and regained hope for the bright
excellent manpower equipped with high international competi- female workers, aged people, and adults with low academic with a right educational policy, education may work negative- future.
tiveness. background. ly to the national management. Despite difficult conditions both at home and abroad,
2 0 _ January 2006 KOREA IT TIMES KOREA IT TIMES January 2006 _ 2 1
New Year’s Messages
However, there are still many tasks and difficulties ahead
of us. We have to carefully watch such uncertainties of the
global economy as international oil prices and rapid changes
in currencies of major countries.
Domestically, I feel concern that local government
elections set for this year may be overheated and hamper the
national unity. Without facility investment, our growth
potential cannot grow. In particular, creation of more jobs,
enhancement of domestic consumption, persistent expansion
of exports, and stabilization of ordinary people’s life are very
important issues for this year.
To enter ranks of advanced countries, Korea should solve
such difficult problems and the main body to tide over these
difficulties is enterprise.
Song Kwan-ho, president of Kim Sun-bae, president of Nam Joong-soo, Cho Young-chu, Kwon Soon-yub, CEO of
National Internet Development International Cooperation president & CEO of KT CEO of KTF Hanaro Telecom In the New Year, enterprises should go all-out to activate
Agency of Korea (NIDA) Agency for Korea IT (ICA) the national economy by conducting active investment.
Along with this, we should create more jobs to improve life
of the people.
Korea continued its strong exports and finally surpassed $500 future development vision. Also, enterprises need to improve their image through
billion in the trading volume for the 12th in the world. Through the investment activation policy, we will create transparent management and righteousness-pursuing
It represents more than 1,000 times the $500 million more jobs, especially for young people. management, making people to boast of Korean companies
recorded in 1963 in trading volume. Excellent industrial environment is very important to make and have a pride as a Korean.
Along with this, large and small & medium-sized compa- domestic enterprises those with sound financial status and
In the meantime, as Korean enterprises approach toward
nies joined together last year, seeking a win-win strategy for powerful competitiveness. We will strive to improve industri- the top of the world, competition in the global society has
mutual survival. It will be an important key for the Korean al environment this year. become fiercer than ever. Enterprises should make strenuous
economy to attain the bright future of the Korean economy. In line with this, we will encourage enterprises to strength- Kang Shin-ho, Chairman Federation of Korean Industries (FKI) efforts to secure a superior position in the global market and
Through the policy for the nation’s balanced development en their R&D systems and bolster systems for protection of gain a respectable image as a corporate citizen in the global
being propelled by the Participatory Government since its intellectual property rights, while actively fostering industrial e welcome the New Year 2006, the Year of the Dog society
inauguration, regional industries have gradually gained vitali- manpower. in with hope. I wish all executives and staff members There is hope for us. Enterprises should take an initiative
ty. Along with this, we will continue fostering the nation’s of FKI member companies and their homes good luck in helping the national economy regain vigor. Let’s tide over
At the same time, we exerted all-out efforts to find out and growth industries, including automobiles and electronics. In this year. difficulties of today through enterprises’ best efforts to make
foster new growth engines and carried out a strategy for the next-generation growth engine sectors, we will preoccupy Looking back on last year, we faced many difficulties. the country healthier and powerful and let the Korean people
development of the parts & material industry. the future market through early industrialization, maximizing From the beginning of last year, a number of enterprises have bright hope.
As a result, we could build a firm foothold where the the "Blue Ocean" effects. faced hardships owing to a surge in international oil prices Let’s have wisdom in preparation for the future, while
nation’s parts & material industry can develop into a supply Unfortunately, world-famous experts and institutions and a hike in raw material prices. accepting the reality we have and refraining from laying
base to the world. anticipate that high oil prices will continue this year. Due to sluggish facility investment and domestic blame upon the past activities.
Amid an unprecedented surge in oil prices, we supplied To tide over such difficulties, we will expand overseas consumption, the economy recovery was delayed and there We attained great results in the World Cup finals four
energy resources stably for industrial development and stabi- resources development and jack up the energy self-supply were worries that an inequality phenomenon has deepened in years ago as all Korean people joined force together. Like
lization of people’s life through close cooperation with ratio to over 10%, while making best efforts for development each sector of the economic society. this, let’s again combine all the energies of the nation on the
resources-rich countries. of new & reproductive energy. However, I think, 2005 was the year when we found hope World Cup finals set to open this year. In particular,
Despite various results we attained last year, the Korean In 2006, we will make a strong push for the nation to enter among various difficulties. enterprises should take a lead in making 2006 the year of
economy still has many problems to be solved. the "era of $1 trillion in trade at an early date. Through the successful hosting of the APEC Summit and another take-off through harmony and challenge.
The recovering pace of the domestic consumption is slow To do so, we should expand conclusions of free trade CEO Summit, we could boast of our potential power to the Celebrating the Year of the Dog, I wish all Korean people,
and business sentiment felt by ordinary people, small and agreement (FTA) with more foreign countries and actively world once again. including workers and entrepreneurs and their families, good
medium-sized companies and self-employed persons is still participate in the World Trade Organization (WTO) system. In terms of corporate management, our enterprises luck, love and peace.
difficult. Also, we will create favorable managerial climate in which succeeded in exporting more than $250 billion worth of
As the minister in charge of actual economy, I, along with foreign enterprises can advance into the nation freely in keep- goods and services by tiding over many crises and enhancing
MOCIE officials, will make best efforts to build a foundation ing with the nation’s trading volume standing at the 10th in competitiveness of their products, jacking up the status of the
for the nation to rank in the world’s top four in industry and the world. Korean economy in the global market.
top eight in trade before 2008. Once again, I wish all of you good health and happiness in The morning of the New Year broke with hope. Many
Recently, the Korean economy is showing signs of recov- the New Year. people anticipate that domestic consumption will regain its
ery in many sectors, including consumption and investment. strength and the economy will see a modest growth this year.
Related to this, we will actively push for a policy to acti- I believe that the Korean economy is gathering new strength
vate investment according to characteristics of industries and for another take-off, ending the long-lasting slump.
2 2 _ January 2006 KOREA IT TIMES KOREA IT TIMES January 2006 _ 2 3
New Year’s Messages
Corporate Power and reborn as a Chamber of Commerce admired and trusted by
I am self-confident that the KITA has become a true
messenger of the trading industry through powerful reform in
occasion of the Winter Olympics and the Germany World
Cup, we can upgrade brand status further this year.
Competitive Edge in
I believe that corporate power and competitive edge in the past several years. And I request you to have keen 2006 is the year for Samsung Electronics to establish a
human resource can be strengthened only when all the interest in the association’s activities, extending full firm foothold for leap into the top class in the world.
Human Resources Needed
members of an organization are rearmed with innovative supports. To attain the target, Samsung Electronics will further
minds, and when outcome-oriented organizational culture To meet rising demand for trade and market information bolster foundations of the eight growth engine businesses
takes root. by global trading circles, in particular, the KITA upgraded and actively foster seed businesses.
Sohn Kyung-shik, Chairman of the Korea Chamber of
Commerce and Industry (KCCI)
Since the nation’s economic crisis in the late 1990s, it has the status of its Washington office to a headquarters in the At the same time, in our absolute No. 1 projects,
become an inescapable challenge for us to make endless United States and established a branch in Singapore at the including memory, display, mobile phone and DTV, we will
or the past year, the Korea Chamber of Commerce and changes and innovations. And, we are left in a situation end of last year. introduce reformative products in terms of cost, quality and
Industry was able to carry out the planned tasks helped where our survival is uncertain if we go against such a tide of On the occasion of the expansion of the overseas design, to the market in advance, keeping the market
by the wholehearted support and participation by KCCI transformation. organization, I hope KITA members will make the best use leadership continuously.
members. Whether we are dragged down by changes or take this of the overseas networks for expansion of their export This year is the third year since Samsung Electronics has
Now that the New Year has dawned, I will spare no effort challenge as a new opportunity all depends on the choice we markets. begun to solidify the foundation to leap toward the top class
in protecting the rights and enhancing the welfare of KCCI make. In this vein, I am humbled to ask for your unwavering Along with this, I request you to actively use trade in the world. Accordingly, 2006 is the very high point for our
members. interest and support so that the Chamber of yours can take manpower fostered through the “Trade Academy,” consisting company to advance into the world’s top level.
To this end, I will stand at the forefront in breaking the firm root as a top business institution that embraces all, true of a trade master course and an IT master course. Despite In 2006, we should discard the way of thinking as a
bottlenecks that hinder Korean businesses by requesting the to its name. serious difficulties in getting a job, almost all graduates of follower and secure a creative leadership to lead the nation’s
government to find solutions to any rules and institutions Lastly, but not the least, you have shown kind support the Trade Academy obtained jobs, proving their excellent industrial development.
unfavorable to making investment. despite all the difficulties last year. Thank you, and I wish ability. All executives and staff members of Samsung Electronics
I will also focus on invigorating the local economies. I you the very best. At the same time, the KITA will come out with effective should make all-out efforts to make our company a top in the
will make suggestions to the government jointly with local countermeasures against the DDA negotiations whose world this year by changing their sense of value, way of
Chambers of Commerce, and play the role of an intermediary deadline was extended until the end of this year. thinking and working methods.
Traders’ Companion in
between the government and local firms so that substantial It will also make best efforts to maximize interest of the
assistance can be made to local SMEs. nation’s trade industry in the FTA negotiations with ASEAN,
Canada, Mexico, India and MERCOSUR. Along with this, it
Year of the Dog
Moreover, I will further activate CEO breakfast meetings
and the Advanced Management Program and enhance the will push for FTA with giant economic blocs, including the
Cooperation in R&D
effectiveness of our operations. By doing so, KCCI can
provide accurate management information and expedite the Kim Jae-chul, chairman & CEO, KITA Finally, I sincerely hope you, traders, will have a valuable
communication with policy makers of the government. year in which you can enjoy splendid harvests.
In addition, I plan to upgrade KorChamBiz, the shering in the Year of the Dog, I wish you and your
comprehensive web site that provides information on more trading companies the best of luck for 2006.
than 200,000 companies and 1.2 million products, and Wolfgang Slawinsk, iChairman of IT & Telecom Committee,
Last year, Korea’s trading volume surpassed the $500 EUCCK
increase users’ convenience along with thorough after-
billion mark to become the 12th in the world, making a
for a Korean IT Icon
management. Through such efforts, KorChamBiz can
consolidate its place as a leading business portal in the turning point for the nation to enter the $20,000 era in terms n the past year the European Union Chamber of
nation. of per capita national income in the near future like in most Commerce in Korea together with the European
In the midst of an ever-changing business environment countries with the trading volume of over $500 billion. Yoon Jong-yong, vice chairman of Samsung Electronics Commission started activities for cooperation between
with free trade agreements and negotiations on the Doha Looking back over the past century, there were many ups Korean and European SME’s, especially in the field of IT &
Development Agenda, KCCI will assist the global and downs. Until the middle of the 20th century, our country apitalizing on Turin’s Winter Olympics and Germany’s Telecom. Furthermore the European Chamber of Commerce
management of member companies through systematic could not escape from the absolute poverty. FIFA World Cup in 2006, Samsung expects watershed supported local governments to present the idea of Korea as
cooperation with Chambers of Commerce around the globe. Since the latter part of the 20th century, however, the year to become true global leader a test bed and to promote partnerships between Korean and
For resolving labor shortages, KCCI will continue to nation has developed into the world’s 11th economic Considering managerial environment for 2006, the Year European companies and organizations to create a benefit for
carry out the project to foster and supply technicians and powerhouse and the 12th trading power at a rapid pace in an of the Dog, domestic enterprises are expected to face no less both.
engineers sought by industries through our human resource unprecedented short period through perseverance and ardor than difficulties than last year, such as the Korean won’s For the year 2006 we will continue with the started
development agencies operated in 8 locations around the of the Korean people and an effective strategy to become a appreciation against the dollar and high oil prices. activities and intensify the cooperation for R&D in the field
nation. trading power. The domestic electronics industry will also face stiff of Biotech, IT, Transportation, Nanotechnology, Security
Furthermore, we will do our part in preparing measures to In 2006, Korea is expected to enter the era of $1 trillion in competition in securing a leadership in the industry because and Space technology, based on the 7th Framework program
restructure the rigid education system so that tailor-made, trade volume and $30,000 in per capital national income with of the collapse of the four “walls,” -wall of price, wall of of the European Union. A program offering EU based
high-quality workforce can be fostered and catered to the its exports exceeding $300 billion in just two years since it technology, wall of value added and wall of region. companies (also Korean companies in Europe) and other
labor market. surpassed the $200 billion in 2004. In 2006, particularly, such broadband services as DTV, participating countries R&D funding. Currently the EU and
Also, we will successfully carry out such tasks and devote The Korea International Trade Association (KITA) will DMB, Wibro will be provided in earnest, offering electronics Korea are preparing a cooperation paper and supporting tools
our energies on making internal innovations in order to be make best efforts to expand the nation’s trading volume makers new business opportunities. for easer participation of Korean companies and institutions
persistently this year. Also, if we make the best use of special demands on the within this program.
2 4 _ January 2006 KOREA IT TIMES KOREA IT TIMES January 2006 _ 2 5
New Year’s Messages
The European Chamber of Commerce understand itself as basic technologies. In addition, we will reinforce the R&D launched for the ubiquitous network era. 2050 will be the world’s second highest after that of the US
a supporting organization for application preparations and activities for verifying the technological soundness and And, in so doing will NIDA take the lead for the nation to are precious results made through our efforts.
fact finding missions on the European and Korean territory marketability of the end results of the basic research. At the be regenerated and stand at the forefront in bringing in the As a result of the IT industry’s rapid progress, we are now
finding the right partner for cooperation and would welcome same time, we will strive to carry out advanced research future society of the world. able to stand on a par with leading countries of the world.
new Members participating in these programs. based on leading intellectual property rights with heightened Furthermore, NIDA will actively take part in the decision And yet, our aims don’t allow us to be complacent. The
I am wishing all the readers of Korea IT Times and the applicability. To this end, we plan to set up a special making of international bodies concerned with the major world’s top-notch ‘IT Korea’ and ‘u-Korea’ that leads the
Korea IT Times redaction a successful Year 2006 that this committee for both the basic research and the development issues related with the Internet and raise Korea’s role in the world’s IT industry forward are the very future we should
journal remains as important paper for the IT & Telecom of next-generation technologies. global stage, while strengthening its Internet governance achieve.
industry and will grow well. Sixth, we will make the ongoing innovations firmly home and abroad. This year, too, ICA will be at the forefront in
rooted in our operations. In succession to last year’s, we will Along with this, NIDA plans to make contributions in the disseminating the global brand ‘u-Korea’ together with all
continue to develop innovative cultural movements and carry setting up of government policies on the Internet through in- the IT family with warm hearts and solidarity. In this age of
Blueprint to Elevate
out the innovative missions and contests. depth research on issues and statistical data related with the IT Globalution (Global+Revolution), characterized by
Seventh, we will continue to administer educational Internet. It will also take the lead in protecting the rights by endless competition where winners and losers become clear,
programs to secure and foster high-caliber human resources. resolving conflicts over Internet addresses. we will strive to do the best in assisting the government and
the Infrastructure Above all, we will endeavor to nurture experts in the fields
of patents and international standards through various
In 2006, too, I hope that the Korean people can show
undiminished interest and support. Thank you.
businesses to enhance the IT industry’s competitive edge in
the world market.
for Research training programs and activities that include the enticement
of high-quality manpower from abroad. In addition, we will
IT ‘Globalution’ Era ‘U-World,’ the
Yim Chu-hwan, president of the Electronics and exert efforts to foster international negotiations experts so
Telecommunications Research Institute (ETRI). that they can deal with such matters as technology transfers
T new future of KT
oday, we the researchers at ETRI are faced with a host Lastly, we will make sure that technology-related Kim Sun-bae, president of International Cooperation Agency for
of issues that demand us to make changes in the midst of Korea IT (ICA)
information is protected and ethical management is put on a
rapidly changing global paradigms. To properly respond
solid foundation. Nam Joong-soo, president & CEO of KT
to this call of duty, I would like to introduce some tasks we isseminating the global brand ‘u-Korea’ in the
In a comprehensive survey of moral transparency
will be actively engaged in this year. competitive era of IT Globalution (Global+Revolution) he year 2005 had been a year in which the whole
conducted on 325 institutions by the Korea Independent
First of all, ETRI will continue to make improvements to Commission Against Corruption, ETRI was found out to be telecom market was in the doldrums. The IT industry
research facilities. In line with our master plan to revamp the Despite unfavorable economic circumstances that have stagnated with not many new services to speak of. The
among the top 2 percent of the surveyed in terms of ethical
research environment, and we plan to build a new research engulfed the nation home and abroad, including the surge in year 2006, however, will be a year in which we will be
management. I am pleased to say and take pride in the fact
hall and a dormitory and remodel the dining hall. oil prices and the unstable currency markets, the IT industry opening the new ‘Ubiquitous Wonderland’ by overcoming
that this is an outcome made possible through our
Secondly, we will lay down the foundation for adopting a in Korea has achieved an unprecedented and remarkable feat such circumstantial difficulties.
implementation of the ethics manifesto we have adopted last
new personnel management system. After a series of in 2005 with the backing of the government and the private We at KT already have had the experience of playing a
year and that in turn resulted in the enhancement of ETRI’s
discussions based on a joint study by the management and sector. leadership role in building a new realm of business in the
trustworthiness to its clients.
labor, we will search for rational ways to improve the As the world economy has gradually recovered, Korea’s telecom market through the high-speed Internet service. Ours
personnel management system. This includes the deliberation export of IT products, such as LCDs, mobile phones and is a company with an unlimited potential, having received
of various employment systems such as the dual-ladder semiconductors, has increased to replace its historic highs. international attention in the building of the ‘Broadband
system, fellowships and the “salary peak system.”
After this process, we will undertake to implement the
"Ubiquitous," the Word on The IT industry’s place in the nation’s economy, too, has
been further lifted.
Now that the era of full-blown convergence is in front of
chosen personnel management system in a harmonious
framework between the labor and management. The adoption
Everyone’s Lips in 2006 The achievements made by the nation’s economy and the
IT industry were highly appraised from abroad, too. The
us, we should make the year 2006 a year that inspires the
stagnant IT market with new energies and, at the same time,
of a new personnel management system will open a new Song Kwan-ho, president of National Internet Development
Organization for Economic Co-operation and Development lays down a basis for opening the ‘U-World,’ the new future
chapter of cooperative culture between the labor and Agency of Korea (NIDA) (OECD) has revealed that Korea was ranked the first among of KT.
management. 30 OECD nations in a ratio found by comparing a country’s
To achieve this goal, I plan to embark on the following
Thirdly, we will concentrate our energies in the uring the next decade or so, the household name in the share in IT exports to OECD countries with its total exports three missions.
development and commercial use of new technologies that IT field shall be none other than “ubiquitous.” A variety to the region. Moreover, the International First, I will materialize the “momentum for the future
can act as engines of growth in the IT field. of technologies and cultures will also be put on display Telecommunication Union (ITU) ranked Korea on top in the growth of KT.” This year, the new services we have
Fourth, we will devote our minds to develop technologies in 2006 for the ubiquitous era. ‘Digital Opportunity Index (DOI).’ Assisted by such ambitiously prepared will be in full swing. WiBro will be in
that can lead us through today’s world of digital Under such circumstances, the National Internet progress in the IT industry, Korea’s ranking in a the global spotlight as it will usher in the word’s first
convergence. To this end, we have restructured the Basic Development Agency of Korea (NIDA) will faithfully competitiveness report was raised to the 12th place in 2005 commercial service of the mobile Internet. The IP media is
Research Laboratory and Future Technology Research execute its basic task of stably managing and operating from the 29th in 2004, making a jump of whopping 12 levels. also closing in on us as another opportunity. Through these,
Division into IT Convergence Research Center so that we Internet addresses such as ‘kr’ domains and IP addresses. The Morgan Stanley’s observation that the year 2005 will KT can once again uphold its stature and create new values.
can strengthen the convergence and materials development At the same time, it will focus on developing future be the year for Korea, not China or India, and Korea is On top of this, I will embrace the “essence management”
technologies. network technologies, such as RFID and IPv6, and actively successfully moving towards a developed nation, and of making preparations and investing by taking into account
Fifth, we will strengthen the research for original and assist the government in its pursuit of the ‘IT839’ project Goldman Sachs’ forecast that Korea’s GDP per capita in the future ten years from now. I will build a further
2 6 _ January 2006 KOREA IT TIMES KOREA IT TIMES January 2006 _ 2 7
New Year’s Messages
sophisticated network and develop corresponding contents Dog.
and services. I will also foster experts who can operate these In 2006, various topics of conversation are awaiting us.
and create new values such as the ‘U-City’ by expanding the The World Cup, which once made the Korean peninsula a
existent faculties and operations. festival place filled with excitement and pleasure in 2002,
I believe that KT can bring about a turning point for will reopen this year, attracting keen attention from the
making a leap forward this year when such momentum for Korean people again. Politically, provincial elections will be
growth materializes. held, confirming the direction of public sentiment. First of
Secondly, I will seek to make customers not simply all, the economy, now in sluggishness, should gain strength
satisfied but impressed. again, improving the life of the people.
As we are all aware, KT is serving 80% of the population In the field of mobile communications, there is joyful
as its customers. However, we have to be mindful of the fact news in 2006. The HSDPA service, which offers not only
that customers can leave us at any time. If we fail to win the screen call but also high-speed data service, will begin in
hearts and minds of customers, and fail to impress them, any earnest, providing customers with state-of-the-art service. I
cutting-edge service becomes meaningless. am confident that Korea’s top-level communication services
And yet, the quality of service we provide is still far from will attract keen attention from foreigners in the Germany’s
‘customer impression.’ The so-called ‘push marketing’ from World Cup.
the standpoint of a supplier must cease. Moreover, we must In 2005, there were pleasant developments, but there were
develop new ‘customer care programs’ such as the private many gloomy things. Continuing feuds in the political
“Internet doctor” system, and unfold specialized marketing circles, damages from disasters, controversies over study on
according to customer needs. stem cell, and youth unemployment have made our mind to
Thirdly, it is time to seek the ‘win-win management.’ be tough. In the New Year, I hope that our society is filled
Nowadays, a growing number of companies are choosing with harmony and virtue of sharing. I wish that all Korean
to provide ever more assistance to their partners under the people will “have a good time” and the domestic IT industry
view that “the competitive strength of a subcontractor is none will enhance the status of Korea on the world stage.
other than my own.” What this means is that the mutually
survival management of our times, which is characterized by
Hanaro and Thrunet
convergence of services and global competition, is gradually
becoming the criterion for our survival.
The bolstering of mutually survival relations through the
stable labor and management and the consolidation of win-
win structure by sharing the fruits with partners is the very
Joining Hands in 2006
key to the survival this era demands of us. Kwon Soon-yub, CEO of Hanaro Telecom
I wish to make the year 2006 a year in which the pride of
all the KT family can be regained. And, I will do my best to wish to thank all the Korea IT Times family who have
make KT be recognized as a company that impresses worked so hard last year to inform the world Korea’s
customers. Happy New Year! Wonderfully KT! Thank you. progress in the IT field with in-depth reporting.
In today’s world of convergence and ubiquitousness at its
very heart, information technologies (IT) have enabled these
new concepts to prevail. I believe that Korea IT Times will
Exciting Year Ahead continue to play a major role in the global tide of
convergence between the media and IT, as well as the
Offers New Hope coupling of media with interoperability and mobility.
In today’s rapidly changing digital world, I hope that
Cho Young-chu, CEO of KTF Korea IT Times can present future visions, always mulling
over ways to provide more useful information. I pray for its
he history of the dog traced back to about 18,000 years endless progress in the years ahead.
ago and it is a domestic animal with the longest history In 2006, Hanaro Telecom, together with Thrunet, will
among mammals. As the dog has seen the development restart as a corporate family and be always alongside
of the life of mankind side-by-side, we can feel the image of customers through meticulous services with cutting-edge
a faithful friend from the dog. Accordingly, we expect that technologies. Thank you.
warm humane feelings will be filled in 2006, the Year of the
2 8 _ January 2006 KOREA IT TIMES
OPINION / Korean Wave
Malaysians Embracing Korean Pop Culture
Growing popularity of Korean dramas, POP stars and cuisine
s with most Asian countries which swept across the country. dramas is the heightening
A have begun to embrace Korea like
never before, the screening of
Winter Sonata on Malaysia’s terrestrial TV
In contrast, some movie
vendors gave a simple
reason for the phenomenal
appreciation for Korean
culture, fashion and even
2 years ago, starring Bae Yong Jun and take off of Korean
Choi Ji Woo, marked the beginning of the entertainment, which are Korean Culture
“Hallyu”(Korean Wave) phenomenon in good looks and talent. In Malaysia there are
Malaysia. They believed the reason two other major races
In a local newspaper interview here, why Korean dramas are besides the main ethnic
opinions were gathered from soap drama selling so well is because group, Malay. Over the
fans. Most said that “Korean dramas have Malaysians were attracted years, little “Towns” such
love stories that are more compelling”. to the good looking actors as Chinatowns and Little
Some even said that in Korean dramas, the and actresses. Regardless Indias have emerged in
love between the guy and girl is very pure of the reasons why K- Kuala Lumpur to cater to Kuala Lumpur’s famous Petronas Towers
and everlasting, believing that if they fall drama is so loved by the needs of the two other
Ryu Jong-Hun, chief executive
in love it is forever. These dramas, which Malaysians, it has director of KOTRA Kuala Lumpur major ethnic groups here. citing reasons that more students are into smaller suburbs outside Kuala
touch on the fast disappearing aspects of definitely created a new in Malaysia However, little known to gaining interest in the language which is Lumpur. Not surprisingly, since the K-
life in Asia, like filial piety, old-fashionedfollowing of not only most Malaysians, the believed to be sparked by the fascination drama Dae Jang Gum has sparked an
romance and male chivalry, have captured Korean dramas but all things related to Korean society here has quietly built up its with the Korean culture from watching interest in Malaysians to sample Korean
many Malaysian hearts and brought in the Korea here in Malaysia. own community in Kuala Lumpur, Today, the little town Korean dramas. cuisine. Consequently, this has also led to
wave of Korean sentiment which has As a result, booming alongside Korean whereby small Korean businesses Seen around cities in Malaysia also, eateries such as hawker centers and food
flourished catering to meet the demands of
which was once known more and more apparels and accessories courts serving Korean cuisine to cater to
the Korean community in Malaysia. only to the Korean from Korea are sold in retail outlets as
well as stalls in shopping centers here. K-
the curiosity of the average Malaysian.
Today, the little town which was once
known only to the Korean community has community has been drama which has created a wave for K- All this rush of Korean TV dramas in
been nicknamed “Korean Town” by Pop, has now not only outranked Japanese the Malaysian terrestrial and satellite
Malaysians living in Kuala Lumpur. The
nicknamed “Korean pop stars in terms of popularity but also in channels has created a following in which
existence of the Korean Town was brought Town” by Malaysians fashion stakes. There are more and more is believed to be the contributing factor of
to light to the general public when from the younger generation who are the boom of South Korea tours in the past
newspapers covered articles on the new living in Kuala Lumpur. emulating the dressing of Korean stars as two years. It is believed that the allure with
“Town” in Malaysia. This sudden surge of well as adorned with fashion accessories Korea began by watching the breathtaking
interest in the Korean culture here was made famous in dramas such as Stairway backdrops in K-dramas and has attracted
prompted by the growing popularity of to Heaven. Having said that, K-pop music many Malaysian tourists to Korea. Besides
Korean dramas. Once only catering for the itself has yet to make such deep impact as that, Malaysians were also flocking to
Korean community, Korean Town is Taiwan pop music in Malaysia. shooting locations just to soak in the
slowly attracting locals to patronize their Korean Music & Pop stars Nevertheless, the sight of one day having surroundings made familiar by sitting
businesses, such as restaurants, Recent newspaper articles covering Malaysians singing to along to Korean through hours of K-drama. As a result of
supermarkets, beauty salons and retail performances by Korean acts, has also tunes in karaoke is very likely. K-dramas, Malaysians has unconsciously
outlets. Korean Town is one of the reported that Malaysian K-pop fans have ignited a desire be in Korea as well as
platforms for Korean culture to take off started learning writing Korean and have Korean Cuisine relate to Korea by visiting the country.
and reach out to those who are keen to been seen holding up message boards For the past two years, Korean With the emergence of the Korean film
experience and be a part of the Korean scrawled with Korean words. In addition restaurants, which in the past were mainly industry in Asia and the rest of the world,
culture without having to leave the to that, language schools here has noticed concentrated in the city centre, began Malaysia has joined in the world’s
Young Malaysians eager to discover more about “Hallyu”. country. an increase in Korean language studies sprouting outside the vicinity of the city fascination with all things Korean.
3 0 _ January 2006 KOREA IT TIMES KOREA IT TIMES January 2006 _ 3 1
Cover Story / POST IT839
IT Wagging Economy’s Tail in Year of the Dog
By Peter W. Strydom / Senior Editor
we listen to music, watch TV, play games,
communicate and manage and share per-
retrospective of the Koran economy, and sonal information," he said. "2006 is
particularly the IT and electronics industry, going to be a big year for the digital
offers useful pointers to its future direction in In this sense, Korea is by no means
2006, the Year of the Dog in the Lunar Calendar. lagging in the global race to be ahead of
the game in this fiercely competitive new
Despite the doomsayers’ gloomy forecasts and trend in the digital IT industry. In fact
reflections on the economy, there was simultaneous Korea has been planning for these
changes for several years already, backed
growth in domestic demand and exports during 2005 by strong support of the Korean govern-
and this trend is almost certain to continue in 2006. ment and particularly the Ministry of
Information and Communication (MIC).
The Korea government’s IT industry
In the IT field, some remarkable mile- products such as mid-to large size LCD nurturing policy, 'IT839,' will be trans-
stones were reached in 2005. Korea devel- monitors, printers, MP3 players and PMPs forming into 'Post IT839' in the New
oped the portable Internet WiBro in the taking over and leading the market. Year, as the IT839 policy evolves into its
Internet field for the first time in the world The reason for the less than optimistic next dynamic stage. According to this
and its technology was adopted as the forecast in SERI’s outlook, is that the Post IT839 counterplan, VoIP will be sub-
international standard. semiconductor industry is hampered by stituted by knowledge-based IT service
Along with this, its terrestrial Digital excess in global supply. Nevertheless, among eight new services and among
Multimedia Broadcasting (DMB) technol- Korean chipmakers will likely increase three infrastructures, and USN & IPv6
ogy was also adopted as the European their influence in the global stage, with will be united. Instead, software infra- MIC Minister Chin Dae-je(screen) explains that the IT839 policy is evolving into its next dynamic stage.
standard. companies like Hynix rebounding from structure is expected to be added
Domestically, the commercial service setbacks over the past few years. In reality, WiBro (Wireless nient and safe communication use envi- fledgling robotics industry, when last year
of DMB started last year for the first time According to Choi, Byong-Sam of Broadband) technology developed by ronment by improving various legal mea- it released dozens of network-based
in the world, tiding over many difficulties. SERI, Korea's mobile communications Korea has been adapted as the world stan- sures, together with proactively meeting robots in the Seoul metropolitan area for a
Exports, especially IT-related prod- operators can expect intense competition dard, and terrestrial wave DMB (digital
“Technology has the challenges of the convergence era, trial run. And in 2006, the ministry plans
ucts and electronic products, were pre- in the domestic market in 2006, in addi- multimedia broadcasting) began its full- revolutionized how we such as communication/broadcasting to support local firms in commercially
dominant, thanks to the recovery of the tion to challenges they face in advancing scale broadcasting, while telematics as fusion. launching the home-based machines with
global IT industry in the second half of into new markets overseas. In other well as intelligent-model robots etc. and listen to music, watch TV, By introducing and implementing an amazingly low price range of between
last year. According to the Samsung words, as he pointed out, this year could achieved a number of breakthroughs. these eight information communication 1 and 2 million won, due to outsourcing of
Economic Research Institute (SERI) in its be an opportunity for Korea's mobile Such efforts by the government are
play games, services, the government has prepared the most of their functions.
review of the Korean economy in 2005, communications industry to rise to a new certainly reaping benefits in terms of communicate and groundwork for launching five new ser- These so-called "smart robots" require
this trend is expected to continue in 2006, level, by providing services at lower rates WiBro, DMB and Telematics, not to men- vices, namely WiBro, DMB, Home net- three basic functions of sensing, process-
despite the slowdown in the economy in and sophisticated features such as global tion semiconductors, mobile communica- manage and share works, Telematics, and RFID (Radio ing and action but Korean innovators have
2006 reflecting weakening economic roaming through cooperation with their tion terminals, and TFT-LCD. In particu- Frequency Identification), in addition to succeeded in reducing costs by outsourc-
growth in the United States and China. counterparts overseas lar, 2005 was the first year when terrestri-
personal information. activating three existing services, namely ing most sensing and processing capabili-
SERI forecasts that the economy will During his speech this month at the al wave DMB began its full-scale broad- 2006 is going to be a big W-CDMA, DTV, and VoIP (Voice over ties by hooking up to outside servers
grow 4.8 percent in 2006, given the con- CES show in Las Vegas. Microsoft Corp. casting as well as overseas marketing Internet Protocol). through the mobile broadband Internet.
tinuing robust exports and rising domestic Chairman Bill Gates painted a picture of a inroad efforts started to bear fruit. year for the digital One example of Korea being complete- MIC expects several types of robots from
demand. However SERI sees the most digital world in which many devices,
notable industrial trend in 2006 as being a including cell phones, computers and tele-
First of all, the government is activat-
ing eight cutting-edge IT services as part
lifestyle.” ly in step with the trends outlined by Bill
Gates in his keynote speech at ICE is the
high-end to low-end will soon go on sale
and the number of models will increase as
slowdown of the IT industry in specific visions, will seamlessly complement one of its 'IT 839' policy to reinforce the infor- Information and Communications the new-concept robots catch on among
areas, with mobile phone and monitor sec- another. mation communication service industry's -Bill Gates- Ministry’s (MIC’s) strong support since Koreans.
tors slowing down. Instead, it sees new IT "Technology has revolutionized how competitiveness, plus fostering a conve- 2004 for the rapid growth of Korea’s
3 2 _ January 2006 KOREA IT TIMES KOREA IT TIMES January 2006 _ 3 3
Cover Story / POST IT839
is being beefed up considerably.” Since 2004, the government has been Targeting innovative ICS
According to him, China is rapidly pursuing the so-called ‘IT839 Strategy’ to By introducing and implementing these
2005, Bonanza Year for IT Korea
emerging as a significant threat to Korea, ensure the IT industry’s global eight information communication services,
which aims to be a global test bed in the competitiveness, as well as creating new the government has prepared the
ICT industry field and a hub in Northeast value-added exports. In other words, by groundwork for launching five new
Asia. promoting service creation, infrastructure services, namely WiBro, DMB, Home
Director-General Kang Dai-young of construction, and technology development networks, Telematics, and RFID (Radio
By Yeo hong-il / Managing Editor
the ICT Cooperation Bureau, MIC, who in a seamless way, the government is to Frequency Identification), in addition to
chaired this conference cautioned: secure a pre-circulation structure for the IT activating three existing services, namely
Supported by IT839 strategy, Korea’s hi-tech IT industry conquers global markets
“China’s superior IT companies are industry and pursue the IT industry’s W-CDMA, DTV, and VoIP (Voice over
orea’s representative IT industry world’s best IT infrastructure, with a city symbolizing the growth of China, was proactively acquiring overseas companies growth engines. Internet Protocol).
K nurturing policy IT 839, will be
transforming into ‘Post IT839’ in
the New Year, as it evolves into its next
subscription rate of mobile communication
amounting to 76% of the entire
population-with 11. 92 million high-speed
an opportunity to experience first-hand the
actual meteoric rise of China, which is
Korea’s largest ICT-associated trade
on the basis of their substantial foreign
exchange reserves,” adding that he was
impressed by the progress of China’s
cutting-edge industry, which is developing
Such efforts by the government are
certainly reaping benefits in terms of
WiBro, DMB and Telematics, not to
mention semiconductors, mobile
In the case of WiBro, service users can
access high-speed Internet cheaply and
freely in any place and at any time, plus on
stage. Internet subscribers, making it No. 1 in the partner, as well as the largest competing the move as well. The government selected
Korea’s Ministry of Information & world, as well as its 31.58 million Internet country of IT Korea hub strategy. on an enormous scale and speed in the
Communication (MIC) has reportedly users, making Korea No. 2 in the world. The speed and performance of growth fields of electronics, computer and
decided to change from new year to a The year 2005 was a year that saw the in China is astonishing and especially in communication equipment.
‘Post IT839 policy’, reviewing the IT839 first fruits of the government’s IT839 the ICT field, China has emerged as a Issues discussed through this
policy’s performance and boundaries in its policy, which it has been pursuing since factory of the world on the basis of the conference were that Korea has to move in
‘Strategic Conference for the first half of last year for the sake of the IT industry’s country’s 1.3 billion population in addition the direction of innovation, sharing “First of all, the government is activating eight
collaboration and competition, not
2006’ held on Dec. 26 in Cheonan.
According to this Post IT839
revitalization, as well as new value-added
to growing into one of the world’s three
largest logistics strongholds as the three competing as an unconditional enemy of
cutting-edge IT services as part of its ‘IT 839’ policy
counterplan, VoIP will be substituted by In reality, WiBro (Wireless Broadband) largest global aviation special forwarding China. With this as an impetus, to reinforce the information communication service
knowledge-based IT service among eight technology developed by Korea has been companies such as DHL, FedEx, and UPS, participants were of the same opinion in
new services and among three adapted as the world standard, and all selected China as their Asia hub. that Korea should seek win-win industry’s competitiveness, plus fostering a convenient
cooperation with China in the IT field,
infrastructures, and USN & IPv6 will be terrestrial wave DMB (digital multimedia MIC Minister Chin explained: “In
plus utilizing China’s emergence as a new
and safe communication use environment by improving
united. Instead, software infrastructure is broadcasting) began its full-scale addition to infrastructure competitiveness
expected to be added. broadcasting, while telematics as well as regarding manufacturing as well as growth opportunity for Korea’s IT various legal measures, together with proactively
Experts agree that over the past three intelligent-model robots etc. and achieved logistics, China is proactively launching industry by enhancing its understanding of
years, IT839 policy has decisively a number of breakthroughs. overseas investment inducement too by China’s IT industry. meeting the challenges of the convergence era, such as
upgraded Korea’s IT level one or two leveraging corporate groundwork with
IT industry growth engines
notches. However, critics say that there are Rising to the China challenge technology power. Needless to say their
some negative aspects to the IT839 policy. Recently, a strategic discussion meeting ICT-associated corporate competitiveness IT exports have grown to be a key
One participant at the Conference was held in Shanghai, China in the industry of Korea both nominally and
contended that there must be a definition interests of promoting Korea’s information virtually just 10 years after Korea began IT
of IT839 policy from the standpoint of and communication technology (ICT) exports in earnest in the 1990s. IT exports
users, and not just from the perspective of business circle’s overseas inroads, as well as of November 2005 reached US$71.7 communication terminals, and TFT-LCD. its business providers in January 2005 and
business providers. as Korea’s positioning in the global market bil., despite global IT business’s In particular, 2005 was the first year when is scheduled to provide users with
In its ‘IT839 strategy assessment and under the guidance of the Ministry of sluggishness, won appreciation and high terrestrial wave DMB began its full-scale personalized good quality contents
policy direction in coming years’, the Information & Communication (MIC). oil prices. broadcasting as well as overseas marketing inexpensively and conveniently by
National Assembly is also concerned that This unprecedented meeting attracted In an ‘IT 839 Globalization Strategic inroad efforts started to bear fruit. completing commercialization of the
the IT839 policy has a profit model as well exceptional interest among Korea’s IT Conference’ held under the supervision of First of all, the government is activating WiBro system and terminal development
as double investment concern. business circle in that it provided ICA (International Cooperation Agency eight cutting-edge IT services as part of its by the end of 2005.
Regarding IT839’s negative aspects, participants with an opportunity to assess for Korea IT) and KAIT (Korea ‘IT 839’ policy to reinforce the With regard to satellite DMB, a
participants named unrealistic goal IT Korea’s global phase according to Association of Information & information communication service broadcasting service that offers a variety
presentations as well as outlook, China’s rapid emergence and adopt more Telecommunication) on Dec. 7, 2005, industry’s competitiveness, plus fostering of contents such as music and video
deepening the existing market’s realistic approaches to recent policy issues MIC vice minister Rho Jun-hyong, has a convenient and safe communication use through cellular TV and PDA on the
stagnation, such as insufficient objectivity such as consolidating the system committed to the Ministry’s support for environment by improving various legal move, it began commercial service in May
of selections, production structure’s dimension’s support system for export domestic IT companies’ overseas measures, together with proactively 2005. Satellite DMB is planning to prepare
inefficiency, profit model absence and activation which showed signs of slowing marketing efforts, particularly for DMB, meeting the challenges of the convergence the groundwork for launching WiBro
double investment concern. down in the first half of the year. WiBro, D-TV, and Telematics, which have era, such as communication/broadcasting service by securing up to 300,000
In particular, the background that this been the most successful recently among fusion. subscribers by the end of 2005 and
However, Korea is equipped with the meeting was held in Shanghai, the iconic the IT 839 items. terrestrial DMB also was slated to
3 4 _ January 2006 KOREA IT TIMES KOREA IT TIMES January 2006 _ 3 5
Cover Story / POST IT839
communication service use environment of such as IT SoC, next-generation PC, The kernel of the so-called ‘IT 839
the highest level in the world, providing 20 imbedded S/W, DC & S/W solution, Strategy’ is to maximize the IT industry’s
million subscribers with broadband service “MIC is to develop a intelligent-model service robots, and so ‘value chain effect, aiming to accomplish
of 50~100Mbps notch by 2010. forth, by contrast, so far private IT annual production of 380 trillion won,
In 2005, MIC was planning to design as knowledge-based society corresponding investment appeared to be and export $110 billion by the forthcoming
well as construct a BcN model network for centering on Internet and very insufficient even though MIC invests 2007 through organic connection between
1,350 households in six metropolitan huge sums with an aim for the nation to eight new services, three infrastructure
cities, including Seoul, Busan and mobile communication into achieve the era of national income of developments and nine new growth
Gwangju. For reference, BcN is a next- $20,000 per capita earlier. engines. In other words, eight services,
generation network in which users can use an “intelligenization” According to information MIC recently three infrastructure developments, and
quality-guarantee-model broadband digital society, such as provided to the National Assembly, nine new growth engines, have to create
multimedia service that fused governmental funds account for 80% of synergy effects through mutual close
communication, broadcasting, and digital home, digital the total 474.7 billion won (approx. $460 relationships under a common
Internet, safely and seamlessly, anytime, million), consisting of governmental denominator, called the ‘Ubiquitous Age’.
and anywhere. enterprise, and e- invested expenses of 377.8 billion won In addition to such economic ripple
In the case of RFID/USN demand Government, by leveraging and private invest expenses of 96.9 billion effects which lead to expect production
activation, MIC is planning to nurture won. Accordingly, private-initiative induction benefits of 380 trillion won in
RFID/USN as a promising industry of the IT839 strategy.” commercial investment needs to be about 2007, an important value of IT 839
future and to universalize u-Life in actual attracted more briskly. Strategy lies in that it presents a vision of a
life by 2010 through demand activation Clearly, the engine needed to full-scale u-Korea era; that is, a conversion
commence full-scale broadcasting within system IMT-2000 service in which high- associated with U-IT hub construction. Ipv6 experimentally to home network accomplish $20,000 GDP per capita by from the knowledge-based society to an
2005, with business provider selection and speed screen and data service are possible, To promote demand for RFID/USN, model households in 2005. revitalizing the Korean economy, which intelligent-based society.
a TV broadcasting station permission. not to mention voice service by using MIC is planning to nurture RFID/USN as For this area, the government has has maintained its national income at the Namely, MIC is to develop a
Concerning home networks, a service 2GHz band’s frequency, the government is a promising industry of the future and to invested roughly 12.7 billion won (approx. $10,000 level over 8 years, has no knowledge-based society centering on
which allows homes to transform into striving to allow the service to be launched universalize u-Life in actual life by 2010 $12.50 million) in 2005 including 8.5 alternative but to seek the solution in IT Internet and mobile communication into an
convenient information living spaces by as soon as possible by constructing a W- through demand activation associated with billion won for core technology and science technology. “intelligenization” digital society, such as
linking all information in the household’s CDMA network applying HSDPA U-IT hub construction. development, 3 billion won for Ipv6 In this regard, even more interest and digital home, digital enterprise, and e-
electric equipment through a home technology for the sake of a differentiation The Ministry, which invested roughly activation, and 1.2 billion won for address expectations are being directed toward the Government, by leveraging IT839
network, a lready, 1,300 home network with established CDMA service in 23 27.5 billion won (approx. $27 million) in resources management/ authentication. ‘IT 839 Strategy’ to claim the 21st century strategy.
model households have been constructed cities last year, and 84 cities in 2006, to 2005 for core technology development, In the case of nine new growth engines, miracle.
and convertible tests are being done provide nationwide service and by and standardization propulsion etc. in this
through constructing common test introducing a differentiated charge system. field, has driven public sector service
environments for home network service. In the case of VoIP, the government expansion in 2005, as it has great success
In the case of telematics, a car has vested VoIP discernment number potential, by investing 4 billion won
multimedia service which offers traffic (070) separately in the interests of (approx. $39 million).
guidance, as well as Infortainment, by communication market’s competition Regarding the dissemination of Ipv6,
using location information and wireless facilitation as well as enhancing MIC is designing to solve the problem of
communication network, Jeju, (an convenience for the people and has Internet address resource shortages
international free city), has a telematics authorized business providers in 2005. fundamentally by converting to an all-Ipv6
model city project under way and is In the case of D-TV service too, the foundation by 2010 and to nurture the
expected to provide users with diverse government is planning to construct a next-generation Internet industry as well as
model services such as travel, traffic, Jeju nationwide D-TV broadcasting network by service.
culture, leisure facilities and so forth. 2006 and is scheduled to complete Currently, Ipv4 address resources,
In the case of RFID, a service that terrestrial-wave broadcasting’s which remain at 4.3 billion, are expected
offers information as well as surrounding digitalization by 2010 as planned. to be depleted in about 2006, whereas Ipv6
environment information by attaching address resources whose quality and
electronic tags to all objects and by using MIC invests in core technology security level are excellent, are infinite.
wireless communication technology, the development Following Ipv6 model network
government is promoting model projects, Concerning infrastructure construction enlargement construction to 113
with priority given to public fields with for three cutting-edge technologies, institutions plus offering Ipv6-based 10
significant success potential and ripple namely BcN, USN (Ubiquitous Sensor model services etc. in 2004, MIC has
effects for the purpose of initial market Network), and IPv6, an axis of the so- enforced VoIPv6 model service for public
creation and private utilization facilitation. called IT839 strategy, the government is institutions in addition to providing Ipv6-
Regarding W-CDMA, an asynchronous planning to forge an information based WiBro model service and applying
3 6 _ January 2006 KOREA IT TIMES KOREA IT TIMES January 2006 _ 3 7
Cover Story / Post IT839--Software Industry
From IT Powerhouse
to SW Giant? By Yeon Choul-woong / Staff reporter
Production of 53 trillion won, exports of $5 billion in SW industry within 5 years
o secure Korea’s location as an SW (software)
T powerhouse in the coming years, Korea’s Ministry of
Information & Communication (MIC) is planning to
nurture the SW industry intensively as national
Through a report meeting regarding “SW Industry Development
Strategy” held in COEX in Seoul at the beginning of December
2005, MIC Minister Chin Dae-je presented to President Roh Moo-
hyun concrete policy plans, such as IT service companies’
specialization, imbedded SW high grade manpower nurturing,
leading company nurturing, which spearheads package SW, and
digital content first-rate company nurturing, as the main
promotional tasks for SW industry development.
As an SW industry feature leading up to 2010, which will be
embodied through such policy promotion, he forecasted production
of 53 trillion won, exports of $ 5 billion, and 10 global 100 mark a product. Its importance is on the rise Master/Doctor notch from 11 laboratories planning to continuously secure large-
companies. thanks to the advance of digital in 2006 to 20 laboratories by 2010, scale references such as the second
President Roh urged smaller companies and larger companies to convergence, but there is a great shortage establishing a new SW special graduate integration computerization center plus
cooperate for their coexistence, mentioning that the government of high-grade manpower who can design school for the education of cutting-edge launching public SW spread
will concentrate national capacity in the development of this field SW and understand HW. For a solution, SW technology manpower, and examines dissemination.
now that SW is important as part of the national infrastructure. the government is planning to nurture a scheme to utilize high-grade SW Regarding the digital content field,
He further underscored the importance of manpower nurturing superior human power with practical technology manpower in North Korea as Korea has secured global competitiveness
and public market creation for the competitiveness strengthening of experience by targeting large development well as overseas from diverse angles. in the online game field on the basis of IT
the SW field, praising MIC’s timely initiative to present its policy projects in which education-industrial- In the case of the package SW market infrastructure of the highest level in the
vision from “IT powerhouse to SW powerhouse.” laboratorial complexes takes part in joint too, domestic companies are suffering world. Accordingly, the government is
First of all, in as far as Korea’s IT service industry was projects, plus offering new technology from the difficulties in penetrating markets planning to help domestic companies make
concerned, it has attained growth through e-Government and acquirement opportunities through joint owing to the source technology shortage active inroads into overseas markets on the
corporate informatization etc. in the meanwhile, but owing to IT research support with global enterprises and market domination by global basis of such competitiveness.
service market saturation by informatization maturity and and universities as well as laboratories in enterprises and in securing profitability on To maintain dominance of global
specialization shortage due to domestic market dependency its Korea. account of excessive competition between markets for online game, which secures
global competitiveness is still insufficient. In addition to such plans, MIC is companies in the small domestic market. global competitiveness, MIC is scheduled
To solve these problems, the government is actively planning to support short technology To solve this problem, the government to accelerate overseas market inroads
endeavoring to create a public market by identifying large public power of smaller companies’ workforces is planning to concentrate its efforts on through facilitating connections between
informatization projects of national system innovation dimension, through the establishment of imbedded public SW’s spread and dissemination for Korea’s superior technology and overseas
plus driving strategic overseas market inroads by developing e- SW technology support centers, while at the sake of fostering the domestic SW funding, while beefing up localization
Government as well as WiBro & DMB’s construction experience, the same time the ministry increases SW industry development groundwork through support, such as language or platform
an IT839 outcome, as knowledge service. field university laboratory (ITRC) for source technology security. For the public conversion.
Imbedded SW is the core element which decides value-added of manpower nurturing of SW field SW activation of server field, MIC is
3 8 _ January 2006 KOREA IT TIMES KOREA IT TIMES January 2006 _ 3 9
Cover Story / Post IT839--Software Industry
Rally” as an impetus, it is necessary to
“IT Powerhouse to SW Powerhouse”
carry out common research and practice
tasks, the chairman explained, adding that
the coexistence collaboration’s success
model has to serve as a momentum for the
domestic SW industry to be able to
advance into global markets.
Fourthly, he proposes that the
Korea’s software industry to emerge as a global player government add its support, recognizing
SW as national infrastructure and the
s the Korean government shifts the Meeting” held last month at COEX, Seoul. private sector also has to solve chronic and
A IT industry’s axis from IT
powerhouse to SW (software)
powerhouse from 2006, the importance of
Concerning the government’s nurturing
will for SW industry, Choi assesses that
the government also is showing SW
fundamental obstacles such as unfair
transaction behavior between large
companies and smaller companies and so
the SW industry as a core IT industry is industry nurturing will conspicuously as
rapidly gathering strength. the importance of the SW industry Last but not least, Choi emphasizes that
Korea’s SW industry is the fastest emerged in 2005. the establishment of “SW Promotion
developing industry among all the IT In reality, several attempts at nurturing Department” over at the least “bureau” is
industries and it is also an industry which the SW industry were attained as the necessary since there are boundaries for
SW industry development strategy report meeting with a theme, “From IT Powerhouse to
boosts other industries’ productivity and government supported domestic SW SW Powerhouse”.
current MIC SW Promotion Team’s
efficiency. As a next-generation growth obligatory purchases by public “Team” unit office organization to propel
engine, SW is the core of the IT industry, organizations and smaller SW special projects in 2006, the chairman added that another industry groups, chairman Choi SW industry-associated law system
which enhances the value of a product by councils by proclaiming the year 2005 as KOSA will drive forward priority projects reveals the Association’s plan that it will improvement, technology/human power’s
being embedded in all sorts of IT products, “SW industry’s first leap ahead year”. such as selling SW at a fixed price, global carry out a role for consulting support by infra construction, new growth engine
and is a core infrastructure that decides In MIC’s “SW Industry Development marketing support, business price as well fields in the interests of member project’s core support and so forth. He
global competitiveness in a knowledge- Strategy Report Meeting” held recently, as system improvement about the unit cost company’s SW export and as SW export concluded his interview by stressing that
based economy. the ministry has committed to nurture SW of wages, the Association’s phase commercial house. to attain SW powerhouse, this should be
H.K.Choi, chairman of the KOSA and CEO of accompanied by all means.
In the light of this growing importance the Daou Tech Inc. along with a slogan, “From IT powerhouse strengthening as a hub association of the He asserts that the conversion “from IT
of the SW industry, H.K.Choi, chairman of to SW powerhouse” by addressing five SW industry and reinforcing customer code to SW code” can’t be realized
the Korea Software Industry Association posting 60.7 percent according to KISDI. core policy directions such as IT service service. without through ultimately SW export
(KOSA http://www.sw.or.kr) and CEO of Choi notes that MS’s average profit enterprise’s specialization as well as In conjunction with the SW industry industrialization.
the Daou Tech Inc., elaborated on the rate over recent five years (‘99~’03) becoming larger, SW field’s high-grade circle’s profitability improvement and all “Chairman Choi stressed
remains three-times with 47.6 percent in
relative importance of SW in an interview manpower nurturing, package SW leading sorts of irrational system improvements as Develop collaboration success model! that the Association has
with The Korea IT Times: “The growth comparison to Samsung Electronics’ 15.6 company nurturing, digital content first- well, Choi explains that the Association is For the collaboration development
rate of the top 10 HW enterprises in the percent.
Accordingly, Korea’s SW industry can
rate company nurturing, and SW cluster progressing with improvements. scheme of domestic SW industry, Choi prepared a framework for
world is no more than 1 percent whereas construction. In regard to overseas exhibition support proposes that relevant SW industry circle
the growth rate of the 10 superior position substitute the existing industries such as Chairman Choi stressed that the as well as overseas market pioneering, exert themselves so that it can settle as a
the SW industry to be able
manufacturing whose difficulty is
SW enterprises is 6 percent according to
OECD in 2004. Moreover, in comparison anticipated owing to the emergence of
Association has prepared a framework for
the SW industry to be able to emerge
Choi said that KOSA is planning to groundwork infra equipped with to emerge rapidly as a
support differentiated exhibitions’ competitiveness by preparing close
with 1999, the production scale and powerful competing countries such as
India and China and is a core strategic
rapidly as a core of the next-generation participation for the SW field so that the cooperation system in technology core of the next-
employees of the domestic SW industry in national IT strategy as the government Association may give substantial help to development between the government and
2004 have increased over three times, 13.8 industry for Korea lacking natural decided to move to “Post IT839” policy by member companies even though it reduces an educational-industrial-laboratorial
generation national IT
resources and human resources are ample,
times in the case of amount of exports, and
over 2.5 times in terms of engaging to be able to achieve new job creation and
altering IPv6 with software in IT839’s
software infrastructure from 2006. This is
the number of exhibitions to take part in. complex as well as SW superior strategy as the
In particular, in the event of large-sized manpower nurturing field.
company number.” continuous economic growth, Choi said. of course the result of efforts that as SW exhibition such as CEBIT in Germany, Second, he points out that for the sake government decided to
The chairman further underscores the meanwhile has been excluded from the KOSA is planning to operate, laying of balanced growth of domestic SW
importance of nurturing the SW industry, “SW industry’s first leap ahead year” “IT839” policy, the government’s IT emphasis on pre-marketing for the purpose industry, global competitiveness boost,
move to “Post IT839”
As is generally known, the government
adding that SW is a high value-added
has proclaimed the year 2005 as “SW
policy, business circle’s concern was high, of 1 to 1 business meeting of participating and fair competition market’s enlargement, policy by altering IPv6
industry by comparison with but the Association supports the companies by composing thoroughly SW- Captive Market large group companies
manufacturing or service industry in world industry’s first leap ahead year” and importance of SW and proposed this to the oriented Korean pavilion. hold has to be opened externally for with software in IT839’s
market. In terms of value-added by President Roh Moo-hyun has pledged to competent ministries, he commented. Pointing out that SW industry smaller transparent transaction and to improve fair
industries too, in reality service and convert from “IT code” to “SW code”
companies holding a large majority, is competition constitution.
manufacturing are no more than 50.1 when addressing SW employees in “The Conversion “from IT code to SW code” fragile relatively in terms of funds as well Third, with “the SW Industry from 2006.”
percent and 27.4 percent whereas SW is SW Industry Development Strategy Report As for the Association’s priority as human power part in comparison with Development Collaborative Proclamation
4 0 _ January 2006 KOREA IT TIMES KOREA IT TIMES January 2006 _ 4 1
Technology & Standards
/ Agency for Technology and Standards
EU, the United States of America and tem operation is to induce industry technol-
Prevention-oriented India. ogy's innovation by boosting the utilization
security management of new Korean technology and by enhanc-
Certification product preferential pur-
system established in
ing efficiency of technology development
Standards and Certification
Korea and international With regard to strengthening certifica- In fact, preferential purchases by public
standardization to be tion control of NT and EM, she said that institutions of certification products have
prioritized in 2006 the Agency is planning to enforce an inte-
gration certification system from 2006 to
increased from 69.1 billion won in 2003
(approx. $ 67 million) to 104.1 billion won
operate a new technology certification sys- in 2004 (approx. $101 million), showing an
tandards are being utilized national standardization system in a com- Proactive confrontation to Technical tem more effectively and systematize sup- increase of 50.7percent in comparison with
S everywhere in our daily lives
nowadays, from a simple screw, or a
toothed wheel, to cutting-edge technology
prehensive way and by activating private
standard development such as group stan-
Barriers to Trade
Concerning finding solutions to techni-
cal barriers, the Administrator added, "As
port policies which has been operated by
ministries, such as the Ministry of Science
& Technology (MOST): (NT, EM, KT),
the Ministry of Construction and
the preceding year.
Besides such preferential purchase sup-
port, the Agency for Technology and
Standards is also supporting exhibition par-
such as IT, NT, BT and traffic signal each nation's standards are established
systems. Focusing on international standardiza- according to their needs and goals, differ- Administrator Kim Hye-won
Transportation (MCT): (CT), and the ticipation expenses for the purpose of
Moreover, services such as safety of tion activity ent systems between nations come to act as Ministry of Environment (ET). expanding marketing of certification prod-
food and consumer products are now In addition to promoting visible projects potential trade barriers. In recent years, Declaration Center (Shinmungo)" within In addition, she has committed herself ucts.
increasingly taking into consideration the of different standards unification between standards as well as certification systems which relevant enterprises can address to supporting Korean industry technology's
interests of socially-alienated people, such South and North Korea to boost inter- are on the rise in terms of examples which problem firsthand regarding irrational tech- innovation by operating new product certi- Big contribution toward Korea becom-
as the aged and the disabled, as well as ser- Korean economic exchanges effectively, are utilized as Technical Barriers to Trade nical barriers and demand their scrapping, fication more effectively and by supporting ing an industrial power
vices such as finance and transportation. Kim is planning to support overseas market (TBT) for the sake of their country industry as well as improvements from counterpart new product's commercialization more As Korea's national standardization
Accordingly, there is a necessity for initiatives through strengthening interna- protection among globalization trends of import countries. actively. institution, Kim underscores that the
enlarging the scope of standardization for tional standardization activity. To this end, commerce." In addition, the Agency for Technology Kim went on to say that the Agency Agency for Technology and
established industrial the Administrator She further indicated that in recent and Standards has Mutual Recognition would boost its certification policy, laying Standardization has carried out a cen-
emphasis on the improvement of three cer- tripetal role for Korea to be a standardiza-
products and manufac- “Kim notes that the role said the Agency for international trade, factors in the system Agreement (MRA) negotiations within
FTAs between regions as well as nations tification system elements such as inspec- tion hub at home and abroad and promote
turing-oriented technol- Technology and including technology regulation stand out
ogy to include aspects of allotment-coordinating Standards will in bold relief as important barriers that under way to solve Technical Barriers to tion, support and its operation method in standardization collaboration between min-
such as service, securi- spare no efforts to influence trade between countries. Trade ultimately, she said. relation to the government's new technolo- istries.
ty, and the environ-
function is necessary in support internation- To minimize technical barriers, bottle- As part of such MRA negotiations, the gy certification system such as NT/EM etc. Fully aware of this important mission,
ment. conjunction with al dissemination as necks from which Korea's export business Agency has wrapped up MRA negotiations Ms Kim added that the Agency for
Technology and Standards has streamlined
she said that the Agency for Technology
and Standardization will focus its priority
In this regard, well as world mar- circles are suffering, the Agency for with Singapore in the fields of electric sup-
Administrator Kim standards between ket domination by Technology and Standards is providing plies security as well as communication certification procedures to facilitate rele- on establishing an advanced country-model
Hye-won, Agency for leading technology them with real-time information through its machinery & tools with a form of quasi vant companies' technology development, security management system centering
ministries to advance from Korea home-page by analyzing technology signature in June 2005. Kim explained that while at the same time endowing them with around quicker and more efficient security
S t a n d a r d s such policies at a pan- through nurturing restrictions from counterpart countries the Agency for Technology and Standards certification product's sales route support
as well as incentives by securing fairness
management, confronting pending issues
and taking pre-emptive measures from next
(www.ats.go.kr), specialized man- whose influence is expected to be signifi- is actively pursuing MRAs with countries
Ministry of Commerce, ministry level.” power, information cant to Korea's export business circles. or emerging markets whose amount of of its inspection. She went on to explain year. As part of such projects, she proposed
Industry & Energy, in sharing about She added that currently a TBT investi- trade with Korea is significant, such as the that the goal of NT/EM certification sys- that the Agency will unfold consumer
an exclusive interview with the Korea IT international standard movement and gation research team in which approxi- security-network construction business
Times, outlined the Agency's plans for next international standards development/pro- mately 100 persons in 10 fields take part
Current State of International Standardization Activity (as of the end of 2005) preferentially next year including the intro-
year, saying that it is important to establish posals. from the government, associated institu- Present Membership of ISO/IEC Technology Committee
duction of industrial products noxiousness
an integration and dissemination system of Mrs. Kim points out that such efforts tions and enterprises, is being operated and warning system, strengthening inspection
Classification Technology Korea joining P member
national standards, as well as technology are unlikely to succeed through the govern- the Agency for Technology and Standards of goods on the market and boosting secu-
Committee number P members O member Total joining rate
standards, and to consolidate Korea's com- ment's efforts alone, since recent standards' is constructing an information support sys- TC 282 224 50 274 rity protection of products for children.
plicated certification system. trends are far-reaching, massive in terms of tem with trade-related organizations such SC 620 475 98 573 77.5% The administrator concluded her
The Administrator, who took office at their scope and depth and are based on as the Korea Trade-Investment Agency The sum total 902 699 148 847 remarks by emphasizing that the Agency
the beginning of this year as a representa- mutual consensus. In that respect, Kim (KOTRA) and the Korea International for Technology and Standards will be
tive case of the appointment of top techni- notes that the role of allotment-coordinat- Trade Association (KITA) in the interests International Standardization Conference Hosting as well as Participation reborn as a technology innovation support
cal position women at the Ministry of ing function is necessary in conjunction of swift information collection on technical Classification Conference Hosting Conference Participation organization, as well paving the way for
Commerce, Industry and Energy with standards between ministries to barriers. 2004 2005.11 2004 2005. 11 more inroads into global markets for core
(MOCIE), further stressed that it is the advance such policies at a pan-ministry In particular, Kim explained that from Hosting number 39 39 529 544 technology by upgrading next-generation
Agency's task to develop standards with level. 2006, the Agency is planning to establish No. of countries and 330 848 - - core technologies such as IT, BT, NT
high market relevance by consolidating the and operate a "Technology Barriers No. of participants 2,026 3,453 1,664 1,881 swiftly to international standards.
4 2 _ January 2006 KOREA IT TIMES KOREA IT TIMES January 2006 _ 4 3
Mecca for Venture Financing Subscribe
KOTEC consolidating role as nation’s credit guarantee fund, while private institutions “The underlying policy of KOTEC’s operations for
replace government in confirming and appraising venture businesses 2006 seeks to strengthen SMEs to innovate
by the government to
ince its designation in May 1998 as a total assets exceed a cer-
technologies. To this end, he said, KOTEC will carry
S venture guarantee institution in
accordance with the Special Act on
restructure the venture
The definition of a ven-
Ventures Promotion that went into effect in
tain amount and ratio.
Han Lee-hun, chairman
out comprehensive evaluations on technologies and
marketability rather than financial profile or current
1997, Korea Technology Credit Guarantee
Fund (KOTEC: www.kibo.co.kr) has
ture firm is also sched-
uled to be rewritten to
and president of
KOTEC, "most SMEs
state of business, and employ financial resources made
grown to become the nation's leading ven- mean a technologically that lack credit securi- available through guarantee savings in big long-term
ture appraiser and guarantee institution, outstanding company ties but possess pio-
conducting a total of 8,245 venture invested, guaranteed, neering technologies projects.”
appraisals as of the end of 2004, the and credited by venture can enjoy benefits as
largest number of approvals among the 16 finance institutions on venture firms. The gov-
appraisal bodies in the nation. their own account. ernment has put for-
As of the end of November 2005, the Along with such a ward a motion to allow
fund has also provided over 3.13 trillion transformation in the credit guarantee
won in financial assistance to a total of environment for ven- providers specialize
5,372 ventures, accounting for 56.8 per- ture financing, the gov-
Han Lee-hun, chairman
their operations. When focus more on the sound execution of its work-outs and differentiate guarantee Open a Window
cent of 9,456 venture firms in the nation.
In the meantime, private institutions,
ernment has opened an
access through which
and president of KOTEC this goes into effect,
KOTEC can exclusive-
operations in 2006. Specifically, it plans
to form and operate a guarantee portfolio
rates according to performances.
Since KOTEC's foundation in April to the IT World
instead of the government, are set to companies that have ly deal with credit guar- in order to control the risk and place guar- 1989, the total amount of guarantees that
assume the task of confirming and already been credited by KOTEC can be antees and take up an unrivalled place as a antee assets on a more sound footing. have been made has amounted to 113 tril-
appraising venture businesses according recognized as venture firms if the amount Mecca for venture financing." Moreover, it plans to enhance corporate lion won as of the end of November 2005. A reliable partner for
to a legislative motion to be put forward of credits guaranteed and their ratios to Han said that the underlying policy of will to reimburse guarantees and induce Of this, P-CBOs (Primary-Collateralized
KOTEC's operations for 2006 seeks to rollovers with short maturities to long Bond Obligations) accounted for 2.3 tril-
strengthen SMEs to innovate technolo- ones by expanding guarantees with over lion won while 1.7 trillion won was made success
gies. To this end, he said, KOTEC will three-year maturities, the redemptions of for the underwriting of local credit guar-
carry out comprehensive evaluations on which are made on installment. In addi- antees held by credit foundations.
technologies and marketability rather than tion, KOTEC plans to continuously In 2005, KOTEC has strived to
financial profile or current state of busi- increase the ratio of technology-appraised strengthen a tailor-made credit assistance Korea IT Times
ness, and employ financial resources guarantees, out of the 11.6 trillion won framework based on a guideline to focus
total guarantee balance, from 20.8 percent on providing in-depth assistance to SMEs.
made available through guarantee savings
in big long-term projects. For 2006, he as of the end of November 2005 to 60 per- Even though the credit assistance to the right information
added KOTEC has allocated 7.2 trillion cent by 2009. have been provided to innovative compa- to survive in a
won, out of the 10.5 trillion won guaran- To share profits and disperse risks, nies in 2005 was set at 6.8 trillion won, it
tees to be provided in the year, for innova- KOTEC plans to expand profit-shared is forecast that the amount would not have competitive world
tion-leading venture firms. commitments linked with tech-appraised exceeded 5.93 trillion won, or 87.2 per-
"As I have said, we will continue to assurances. It plans to share investment cent of the set target. KOTEC attributes
strengthen our assistance to innovation- profits made together with venture capi- the reason for this shortfall to the loss
leading companies that are the growth tals that provide partial guarantees with inevitably incurred in the process of
engine of the nation's economy. By doing guarantee ratios of 30 to 50 percent in the resolving the capital shortage that has
so, we can increase the average guarantee underwriting of BCs and CBs. At the arisen from the extensive undermining of Korea IT Times:
balance ratio assigned to these firms from same time, KOTEC plans to expand com- the 2.3 trillion won in Primary- http://www.ittimes.co.kr
60 percent in 2005 to 80 percent by panies required to pay guarantee fees to Collateralized Bond Obligation (P-COB) Phone: 82-2-3459-0621
2008," Han added. all clientele in addition to those entitled to guarantees made within a short timespan
KOTEC chairman & CEO Han welcomes Chinese delegation’s visit to KOTEC In the meantime, KOTEC plans to guarantees as venture start-ups and for in 2001.
4 4 _ January 2006 KOREA IT TIMES KOREA IT TIMES January 2006 _ 4 5
Super High Touch Co., Ltd.
Dynamic Supply Chain Management
“Food Traceability System” Going Global Application cases with Time Barcode
Case study #1: Imported French wine comes attached with the Time Barcode, choose according to the evaluated
traceability project in Korea the wine box or pallet locked with history of the wine that has traveled
Since 2005, several French wine Active RFID Black Box. The Active from France to the restaurant.
importers have had a wine traceability RFID Black Box would be recorded If some wine exceeded the
Global interest shown in Korea’s food supply chain traceability technology project in Korea with Time Barcode and from wine manufacturing processing temperature range or suffered from
Active RFID Black Box. temperature to shipping and arrival rolling or direct rays of the sun etc., then
s Super High Touch Co., Ltd. constructing Dynamic consumers, adding that Wines such as Bordeaux and temperature etc. All of the Active RFID customer could check the red graph of
successfully implemented its
"Food traceability system" for the Seoul
has SCM system to the
Company (KGC) for
facturers can monitor
Burgundy imported from France to
Korea via container ship, need a
minimum of about 35 days in the
container. The container temperature of
Black Box data transferred to database
per lot of delivery.
In the wine store (Enotica Galleria
Department Store in Apgujung, Seoul) ,
the shipping period. The French wine
would have a comparative advantage of
its traceability system with Time
Barcode label on the bottle of wine and
metropolitan area and plans to implement the first time in the stocks by store and by
the system in the European Union (EU) world on the basis of time elapsed and can 70 ~ 80 Celsius degrees during when the the France wine with time barcode could active RFID black box.
and Korea Ministry of Health and Welfare, intellectual property prevent over/ ship passes the equator during summer be verified with FIVE (Food
this system is attracting international rights the company undersupply. time. If the wine passed the equator Information Verifier and Evaluator) Case Study #2: KGC Time barcode
interest regarding whether it may actually holds in 107 countries He pointed out: more than 7 days at the hot season, then terminal via database of delivery Since 2004, KGC has Dynamic
improve food safety and quality by at home and abroad as "You can not avoid the wine would be changed to vinegar temperature, rolling of shipment, ultra Supply Chain Management with Time
computerizing the food supply chain of 2005. From May, oversupply with because of high temperatures and ship’s violet or sunshine from direct ray of sun Barcode for red-ginseng product
traceability from farm to store. 2005, the company has conventional barcode rolling. or light, etc. traceability system from farming to
To transfer its food traceability service its Dynamic Supply and computer database Wine consumers cannot identify In a luxury restaurant, someone manufacturing, using Time barcode and
experience and technology to the EU and Chain Management system, because before opening the cork of a bottle of orders a France Bordeaux wine, so the RFID tag technology.
establish a network where Seoul City can projects under way with conventional barcode wine, whether or not it is good. If wine sommelier brings the customer a As many as 450 Ginseng stores have
share the system with the EU for companies like based computer someone is a collector of gives a gift of bottle of wine with PDA. The wine installed the Time Barcode system, and
international food traceability service to Pulmuone, Orga whole database system can not French wine to another person, then he sommelier would be able to have all kind of red ginseng products attached
CEO Tak Seung-Ho Ph.D
improve food safety and quality, its foods organic store, 7- tell you the stock by wants to know the shipping temperature verified customer delivery and storage Time Barcode labels, which verifies all
developer Super High Touch has Eleven CVS and so elapsed time. This is the graph history during shipment from temperature and wine processing data kinds of history, from farm to store, who
submitted a proposal for the European forth and is planning to preoccupy in reason why average 4 percent of food is France to Korea. attached time barcode on the bottle of cultivated it, which farm, date, and
Commission regarding "Dynamic Supply earnest this market on the basis of the wasted every year every countries included With the shipping of wine since label with PDA scanner before the cork agricultural chemical or not, manure or
Chain Management by Time Barcode‰ success examples of such established in Korea. DSCM will enable you to lower October 2005, all of the wine now stopper opening. Consumer could not, cross-checked inspection data etc.
System for Food Traceability (DSCM-TB) businesses. this food 4 percent waste rate to 1 by the GAP and GMP regulations. All
through a consortium that represents Seoul With its food traceability system percent." of the processing of red-ginseng from
Metropolitan Government and Samsung implemented, Dr.Tak underscores that in a Dr.Tak, who emphasizes that the farm to factory by basket attached
SDS. nutshell, consumers as well as food company developed and commercialized RFID, washing basket RFID, boiling
CEO & CTO of Super High Touch, authorities can retrieve comprehensive the new technology in Korea combining a basket RFID, sorting basket RFID,
Tak Seung-Ho Ph.D, explains: "The information about food such as country of cutting-edge IT technology and extract box RFID input to database. In
system provides consumers with origin, manufacture, manufacturing infrastructure in the most economical and the final packaging stage a database is
comprehensive information about food, process, ingredients, storage/transportation efficient way, stressed that the object of issued with the Time Barcode for item
including food history, food temperature and expiry date. He further Super High Touch DSCM is to implement level per lot. Korea Ginseng is a very
contents/ingredient, country of origin, notes that Dynamic SCM is bringing a big food traceability system that supports famous item not only in Korea, but also
temperature history during transportation revolution to production, circulation, and legacy system with low system cost. global markets in China, the EU and the
and storage. The system can be used for sales of food by leveraging Time Barcode The most important thing is that United States. But, there is so much
diversified food products such as and RFID (Radio Frequency currently, 1 percent of the 6 billion people counterfeit red Ginseng in China. About
agriculture product, livestock product, Identification). worldwide, or 60 million people are 90 percent of red Ginseng might be
marine product whether they are fresh or suffering from hunger. The CEO said: "If counterfeit. So, Korean red Ginseng is
processed." Major revolution to production, we decrease the food waste rate from 4 now attached with RFID tags for
As dynamic supply chain management circulation, and sales of food percent to 1 percent and donate food to authentication as true red Ginseng with
solution provider, Super High Touch has For example, Dr.Tak said that DSCM help those in needs, we can resolve both off-line hand-held terminal internal
realized GAP (Good Agricultural Practice) with Time Barcode offers benefits to all hunger issue and traceability of food item crypto secure access modules.
and GMP(Good Manufacture Practice) by parties in the food industry, as well as at the same time."
4 6 _ January 2006 KOREA IT TIMES KOREA IT TIMES January 2006 _ 4 7
An Explosive Korea emerging as
one of global top
Entertainment three in the game
market by 2010,
grabbing 5% share
of the world market Kim Yeong-man,
Chairman of the KAOGI
Kim Sang-ug, Director of the
Game Industry Division, MCT
Chairman of the KCGA
By Yeon Chul-woong Staff reporter 10 trillion market with 86,000 employees three game powers by 2010. Ministry of Culture and Tourism from the movie to the game industry, Kim
and $1 billion in exports. Domestic game industry, in the mean-
he nation’s game industry, the cautions against a backlash or a negative
T market size of which had grown to
4.3 trillion won in 2004, a 9.6% rise
To achieve this goal, the Ministry of
Culture and Tourism had announced in
2003 a long-term plan to promote the
while, has posted a high growth, but the
environment at home & abroad is not at
any cost favorable in doing continuous and
point of view about Hallyu, noting that in
that regard, the role of the government side
is to prevent such negative point of view
from the previous year, is estimated to industry and set up the “Strategic stable development. In that regard, con-
have increased by about 10% to 4.8 trillion arising. He further proposes that Hallyu
Committee for the 2010 Game Industry”. crete strategies for continuous and stable
won in 2005. has to develop in a direction of changing
With the recent official launch of Korea’s growth of the domestic game industry are
According to chairman Kim Yeong- Korea's image by coating Korea's
2010 Advisory Committee for the Game needed to meet the challenges of being a
man, KAOGI (the Korean Association of traditional culture and tourism etc. on the
Game Industry / www.gamek.or.kr), par-
industry as an impetus, the entry of the leader in the world game market. With strong government support, Korea’s game culture industry, like the game industry.
industry plans diversification of markets and overseas
Korean game industry into one of world’s As chairman Lim Dong-keun, KCGA
ticularly the five platforms of the game Concerning the state of things by each
top three by 2010 is set to become a reality. (the Korea China Industry Development
industry, have posted an annual growth Along with the 2010 Advisory Association / www.msoworld.org) points roadshows are lined up for 2006 market, Kim analyzes that India is
somewhat early for domestic online game
rate of 30% in recent years, a remarkable
ith the Korean government support them in securing domestic demand to make inroads there and China is actually
feat in consideration of the nation’s eco-
nomic growth of 4 to 5 percent. showing keener interest in markets and producing more diverse a very difficult market, since China is a
There is not other opinion in that today, nurturing the country's games. country that does reproductions well.
the game industry has become a major
“The game industry has grown from a market of burgeoning game industry, a Game As a preferential priority project in The Director especially elaborated on
industry of the nation following a rapid one trillion won in the mid-1990s to a market of 4.3 Industry Division was recently established 2006 New Year, Kim explains that the the real state of affairs in China, pointing
out that China raises invisible trade
growth to a 4 trillion won market during for the first time within the Ministry of goal of the Game Industry Division is first
the past 8 years amidst growing attention. trillion won in 2004 with about 2 trillion won in Culture and Tourism (MCT). of all to promote diversification of barriers as the country puts foreign game
Moreover, it is no exaggeration to say too The establishment of the Game overseas markets, pointing out that to sell publishers under an obligation to
that the game industry on par with the
production values, $309 million in exports and Industry Division reflects the necessity to Korean-made games in international collaborate with Chinese counterpart by all
world trend has become a matter of course 43,000 employees in over 2,000 companies and 84 coordinate Korea's game policy on the markets, contents have to be above all means when they attempt to make inroads
to be promoted and assisted as a strategic whole, such as arcade games, in helping excellent. into China or foreign game publishers
industry in the 21st century. educational institutions.” smaller game publishers make inroads into The Director pointed out that the must overcome perplexing regulations
The game industry has grown from a overseas markets, preventing online introduction of Korea's online games, the there.
market of one trillion won in the mid 1990s hacking from abroad, and countermeasures cutting edge of Korea's game industry, is In regard to the illegal reproduction
to a market of 4.3 trillion won in 2004 with to cope with illegal reproduction, etc. from insufficient abroad, adds that in that problem in China, Kim said that the
Committee for the Game industry, a Game out, on one hand, the government as well
about 2 trillion won in production values, China. respect, the Game Industry Division is Korean game industry must exert efforts to
Industry Division was recently established as relevant game business circles have to
$309 million in exports and 43,000 Kim Sang-ug, Director of the Game planning all sorts of overseas explanation protect their own contents, adding that
for the first time within the Ministry of cope with the illegal reproduction problem
employees in over 2,000 companies and 84 Industry Division, MCT, who underscores meetings, overseas roadshows, and China's illegal reproduction problem is not
Culture and Tourism (MCT / in China as well as online hacking from
educational institutions. that the Division's establishment is timely, matchmaking networks next year, in a short-term problem solution.
www.mct.go.kr) with the Korean govern- abroad actively to protect our own con-
If the industry continues to grow at the says in an interview with the Korea IT cooperation with KOTRA, etc. to help the The Director concluded his interview
ment showing keener interest in nurturing tents.
current pace, experts explain it is forecast Times that the Division will lay emphasis world markets become better acquainted by emphasizing the importance of
the country’s burgeoning game industry. On the other hand, diversifying over-
that Korea will emerge as one of the top on easing unnecessary regulations for with the high standard of Korea's game nurturing human power as well, explaining
These all is a testimony that concrete seas exports or nurturing able human
three players of the world’s game market in domestic game publishers or the industry industry. that game business circles are expressing
action plan takes shape for Korea’s game power and so forth are important priorities
2010, taking a 5% share of the world mar- to make inroads into global markets, In conjunction with the opinion that the discontent over the lack of sufficient
industry to aim to be one of the world’s top of the 2006 New Year for game business.
ket as the industry is expected to grow to a mentioning that the Division is planning to focus of Hallyu (Korean wave) is moving skilled workforce.
4 8 _ January 2006 KOREA IT TIMES KOREA IT TIMES January 2006 _ 4 9
Game Special Korean Association of Game Industry
A Next-Generation Industry
it is equivalent to the sales of 1.8 million
cars or royalty-attached sales of
manufactured products worth more than 10
In regard to market shares by platform
Korea's game exports trebled in the first five years of the new millennium on the global level, online games are
to $3.4 billion in 2005 topping the list with 36 percent share
followed by mobile games (13.3%), arcade
The following is an excerpted version However, it is certain that high value- of video games is anticipated to be games (2.7%), PC games (2.3%), video
of a contributory article by Kim Yeong- added industries based on contents, invigorated due to the market appearance games (1%) and others (20.9%). In terms
man(Alex Kim), chairman of the Korean knowledge, and information technologies of next-generation video gaming devices. of the game market as a whole, Korea
Association of Game Industry (KAOGI) as will lead the 21st century. However, the downtrend of PC package currently holds a 5.3% share of the world
well as CEO of Hanbitsoft...Ed. Such a trend can be witnessed in the games is expected to continue while the market.
data of the world economy. Even though it revenue of arcade game shops is expected In terms of export amount, Korea's
he nation's game industry, the may be a bit outdated, the growth rate of to increase due to the rise in game shops game exports have continued to increase
T market size of which had grown to
4.3 trillion won in 2004, a 9.6
percent rise from the previous year, is
the game industry in 2002 stood at 13
percent while the economy grew by 2.8
percent with IT and semiconductors
for screen horse racing in contrast to the
fall in the production of arcade games.
One thing worth mentioning is that
from $1.3 billion in 2001 to $1.8 billion in
2003 and $3.4 billion in 2005.
Among the most representative games
that have been exported include Hanbit
estimated to have increased by about 10 sectors growing at -2.3 percent and 2.3 games export has jumped to $390 million Kim Yeong-man(Alex Kim), chairman of the Korean Association of Game Industry (KAOGI) as
percent to 4.8 trillion won in 2005. percent, respectively. in 2004, a 124 percent rise from the well as CEO of Hanbitsoft Soft's Survival Project and WYD, Legend
The five platforms of the game industry, One can infer from this that the previous year that far exceeds $205 of Mir by Wemade Entertainment, NC
culture industry instead of a business that growth in the cultural contents market and Soft's Lineage and Guild Wars, Ragnarok
in particular, have posted an annual growth importance of game industry has grown million in imports. Moreover, it is can simply be written off as a form of its ripple effects on industries and exports.
rate of 30 percent in recent years, a remark- further in 2005. Moreover, it is no anticipated to post annual growths of over by GRAVITY, Nexon's The Kingdom of
entertainment. As I have already mentioned, the world the Winds and Kart Rider, Mu Continent of
able feat in consideration of the nation's exaggeration that the game industry on par 20 percent in the next couple of years. game industry’s growth outruns the growth Legend by Webzen, A3 by Actoz Soft,
economic growth of 4 to 5 percent. with the world trend has become a matter Engine of Growth for Digital & rates of IT(IDC) and semiconductor sales. MGAME's Droiyan and Repent, Han
In the case of online games, the market of course to be promoted and assisted as a One of the Top Three Game Markets in Entertainment Businesses In addition, the game industry's growth rate
has emerged as a contents market true to its strategic industry in the 21st century. 2010 Game by NHN, and Gregon
In order to bring into limelight the role of 10.2 percent during the period from Entertainment's Sealonline.
name by having surpassed one trillion won The game industry has grown from a the game industry plays in nurturing 2002 to 2005 has already outstripped other
in revenues. Moreover, the mobile game Game Industry Enjoys Continued market of one trillion won in the mid The games that are anticipated to attract
digital and entertainment businesses, one contents businesses: movies (5.7%), music much attention in the future are Hanbit
industry has been rapidly growing in recent Growth 1990s to a market of 4.3 trillion won in needs to look at the game industry's records (1.6%), publications (3.8%), and
years, at about 18 percent, to a 200 billion The game market in 2005 is estimated 2004 with about 2 trillion won in Soft's Granado Espada, Sunny YNK's
television (6.9%). Rohan and Webzen's Sun.
won market. to have grown by about 10 percent from production values, $309 million in exports Furthermore, the world's game industry
However, not every sector of the indus- 2004. and 43,000 employees in over 2,000 is expected to grow with the Asia-Pacific
try has been thriving. Since the market for In the case of five platforms, it is companies and 84 educational institutions. Hanbit Game “Granado-espada”
market and online games becoming more
PC packages and arcade games has seen a estimated to have maintained a growth of If the industry continues to grow at the “In 2005, the Asia- important. In 2005, the Asia-Pacific region
downtrend, it has become a major task for over 30% while the online games market, current pace, it is forecast that Korea will
the industry to boost the market. which accounts about 63 percent of the emerge as one of the top three players of
Pacific region held a held a 40% share of the world market
along with the expansion of next-
Nonetheless, the market for Internet game market, is expected to continue its the world's game market in 2010, taking a 40% share of the world generation high-speed network and the
cafes called ‘PC Bangs’ has already risen growth due to various factors: increase in 5 percent share of the world market as the full-fledged rise in the number of online
to a 1.8 trillion-won market despite its PC Bang revenues, game portals and industry is expected to grow to a 10 trillion market along with the video games played over the Internet.
recent stagnation. Moreover, the arcade casual games as well as diversification of market with 86,000 employees and $1 expansion of next-
games market is showing a growth of over genres and markets beyond China. billion in exports. Korea, the Largest Exporter of Online
40% recently due to a surge in demand for Such forecast is derived from the antici- To achieve this goal, the Ministry of generation high-speed Games
adult games. pated boost in the mobile games market on Culture and Tourism announced in 2003 a Currently, Korea has exported some 50
Today, the game industry has become a account of service expansions by mobile long-term plan to promote the industry and network and the full- online games to 35 countries, and the
major industry of the nation following a
rapid growth to a 4 trillion won market dur-
telecom operators and the adoption of
high-capacity 3D games along with the
set up the “Strategic Committee for the
2010 Game Industry”.
fledged rise in the number continues to grow. This is an
example of the world online games market
ing the past 8 years amidst growing atten- ever-growing use of network games and In step with such a move, the Korean number of online video of which Korea accounts the largest share
tion, and in accordance with an economic high-powered entertainment devices. Association of Game Industry and
forecast that one of the leading industries In addition, the video games market is businesses alike will exert efforts so that games played over the with 36 percent, and with over $1.23
billon in exports. If mobile games were
in the 21st century will be the contents expected to make a headway helped by the the nation can advance into one of the top Internet.” included, the figure could be even greater.
industry. success of Korean game titles and the sup- three players in the game market. Also, I In terms of values that could be gained
In the past, the game industry's growth ply of over one million gaming devices. hope people can understand that the game from the export of manufactured products,
was centered on hardware industries. In the midst of this, the online service industry today is growing as a pillar of the
5 0 _ January 2006 KOREA IT TIMES KOREA IT TIMES January 2006 _ 5 1
Game Special Game business circles’ challenge
Korea-China Game Industry Development Association
Ideal Game Partners
amity etc., I believe that Korean game can
secure a more favorable position in China
than any other competing regions.”
Especially, the chairman noted that
Korean online game models which com-
menced to make inroads into China from the
Korea-China Game Industry Development Association early 21st century caused conflict between
constructs a win-win business bridge Merging Korea and China in many cases and allowed
to accumulate trouble and complications
Technology and Market Size with several problems such as technology
transfer and profit's sharing.
orea's game technology and
Breaking from the convention, the two
China's huge market are seen as countries' counterparts have to build a new
complementing each other business bridge with a strategy in which
perfectly. Yet, since there is not up till both parties together can win-win by accu-
now a vast bridge of business, which can mulating confidence based on past experi-
boost mutual confidence and collaboration, ence, Lim underlines, ordering that domes-
the two countries still remain relatively far tic game publishers should not sit on too
apart in effective communication and closed about technology and have to attempt
corresponding results. technology transfer boldly.
Flowing from this, in the interests of About China inroads as well as game
What Awaits the
mutual benefit and business development, supply method's fairness, he commented
there is an urgent need to construct a new that it is necessary for both parties to bear
type of business bridge, according to the risk burdens and also their successes accord-
chairman of the Korea China Industry ing to online game's supply.
Development Association (KCGA), Lim Lim has committed himself to do his best
Dong-keun, in an exclusive interview with Chairman Lim(right) poses with CEO Timothy for the Association to provide its member
Chan, Shanda Network, China
The Korea IT Times. game publishers with an environment in
Concerning a point which deserves In regard to Korea's cutting-edge tech- which they can purse business with their
Korean enterprises’ attention when attempt- nology and the special features of Korean Chinese counterparts based on confidence
ing game business with Chinese counter- game compared with competing countries and mutual respect.
parts, the chairman advises that they can put which made inroads into China, Lim elabo- In the past, there was no choice for a
trust in Korea only when it is absolute in
terms of technology, Korean counterparts
“Thanks to our advantage of a homoge-
number of Korean game publishers but to By overcoming challenges in 2006, such as China market, ‘pay-to-play
get frustrated since an organization's sys-
can provide them with advanced technolo- neous culture, Korean-made game was tem to reconcile mutual and confidence and social jealousy, there is hope for Korea’s game industry
gy. In that respect, he further advises meanwhile able to succeed in China, but to had not been constructed.
domestic game publishers not to do business achieve even greater success, their tastes KCGA, on the other hand, has an
from a short-term perspective. and culture must be coated with Korea's attempt to apply 3D vertical technology to The main challenges confronting Korea’s game business MMORPG, which began service with a fixed amount system
Established in late 2002, KCGA has in core technology. Owing to South Korea's online game under way with KDC circles this year were named as the China market, pay-to- model last year, failed hopelessly. User resistance about
various ways been supporting Korean close geographical location, and sentimental (www.kdccorp.co.kr). play, and overcoming rivalries. ‘Pay-to-play in the New Year too is expected to become
online games' inroads into China and in par- To begin with, regarding the attractive, but threatening, more intensified.
ticular, has under way projects to construct China market, Korean online game’s power is rapidly Part of the ‘Pay-to-play model which was generalized in
business models by stages. Both countries declining in China. On-the-spot games in China are holding casual game, is likely to be popularized up to MMORPG
can thus be in a win-win relationship, mov- from first position to third position in the market at the more.
ing away from historical disputes. moment. As we recall those days when Korean-made games Third, industrial positiveness has to be improved. As
Lim stressed that a relevant game body swept the top 10 positions formerly, it seems as if we are game industry’s export amount exceeds $ 500 million and e-
like KCGA has to pave the way by estab- separated by an age. Sports repeats its explosive growth, society’s perceptions to
lishing a bridgehead between the two coun- Fortunately, Korean-made casual games are enjoying see game are changing swiftly.
tries, pointing out that structurally, smaller rapid growth in the domestic market despite the declining Yet, there are still people attributing fundamental causes
game publishers cannot go into China, popularity of MMORPG (Massively Multiplayer Online of anti-social pathology phenomena to game. Accordingly,
adding that the Association is scheduled to Role-Playing Game). game business circle’s efforts are needed even more to
begin profit business by realizing a private Second, what will be an alternative to resist Pay-to-play convert such views regarding a negative side of the industry.
sector collaboration model in 2006.
CEO Park Young-soo, MGAME Corp. holds an explanation meeting for the “Yeolhyelgangho”
game publicity on the spot in China.
5 2 _ January 2006 KOREA IT TIMES KOREA IT TIMES January 2006 _ 5 3
Game Special MGAME Corp.
ment will expand from the present Asian
The Rise of MGAME
regions, including China, Taiwan and
Japan, to the United States, North America
Besides the title exports, we are also
making a strong push for establishment of
MGAME branches in foreign countries this
year as a means of actively attacking for-
Aiming to be a leader in Korea's game Seeking global recognition
industry, MGAME is winning awards and In online game, actually, new contents
exporting to over 20 countries worldwide are to be produced according to the number
of foreign countries into which game com-
panies plan to advance.
In case of exporting games, we change
not only the Korean language of the con-
tents developed in South Korea to a specif-
ic foreign language, but also contents
n 2006, MGAME Corp. aims at enter- with which users can have a sense of sym- themselves according to the trend of for-
I ing the ranks of the nation's top three
game portals, Park Young-soo, CEO of
the game company, said.
Through the introduction of new games,
we also plan to attract more fresh users this business results this year.
Accordingly, the success or not in the
overseas markets largely depends on how
to express these factors well, Park said.
As a number of game companies carried year, he said. In the meantime, MGAME will actively
out game business or announced plans to “As widely known, MGAME is making push ahead with its advancement into for- Also, the success or not in offering
advance into the industry last year, the preparations for going public. I think it is a eign markets this year with its three chival- game title services in the world affects a Park Young-soo, CEO of the MGAME Corp.
competition in the game industry this year necessary process to keep sound fiscal sta- ry games - A powerful man with hot blood, rise in the degree of recognition of
is expected to be fiercer than ever, he said. tus of MGAME, so we are making thor- a hero and the spirit of ghost. MGAME in the global market.
Despite the stiff competition, MGAME ough preparations for attaining satisfactory The scope of our company's advance- Namely, if we succeed, we can push for
plans to show the essence of the original results,” said Park. new contracts with foreign partner compa- “As widely known, MGAME is making
nies right after the new lineup of MGAME
game portal, said the top manager.
Related to this, MGAME will push for
MGAME started to attain
was revealed officially, he said.
preparations for going public. I think it is a necessary
user-oriented marketing and service policy tangible results in 2005 Another important thing in the online process to keep sound fiscal status of MGAME, so we
for the three chivalry games - a powerful, from its strenuous efforts, game service is not the simple offering of
hot-blooded man, a hero and the spirit of he said that our company contents but dispatch of manpower for con- are making thorough preparations for attaining
tents and transfer of technology and know-
ghost, while using marketing instruments
? e@@ ?
?eX6@2W? e@@ ?eX6@2W?
?eX6@@@@?eX6@2W? e@@ e@@ ?eX6@@@@
? e@@ ?
e@@ e@@ ?
will gain more favorable satisfactory results.”
??1@?M(@@??@@&O?@@ ??X)'?(&W @@@@@@ ?X)'?(&W
??1@N?H@7 e@@ ??1@N?H@7 ??@@?eM.?g@@
??1@? ??X)'?(@@??X)'?(&W ?
@@@@@@ ?X)'I?@@ ?
??@@?e@@ e@@ ??@@?e@@ ??@@@@@2W?g@@ ??@@?e@@??@@?e@@ e@@ e@@ ??1@Ne@@
??@@?e@@ e@@ ??@@?e@@
??@@?e@@??@@?e@@ e@@ e@@ ??@@?e@@
??@@?e@@?g@@ ? ??@@?e@7?g@@ e@@ e@@ ??@@?e@@ ?
??@@?e@@?g@@ ??5@J?L@3 e@@ ??5@J?L@3
??Y(&?)'V e@3 ??Y(&?)'V ??@@?e@@??&W??L@3
??@@?e@3??@&OK)'V ??@@?e@@??5@J?L@3 e@@ e@@ ??5@Je@@
??@@?e@@??Y(&?)'V e@@ e@3 ??Y(&O?@@ ??@@?
??@@?e@@?g@@ ?eY0@4V? @@4V ?eY0@4V?
? ? ?
??@@?e@@?eY0@4V? e@@ @@4V ?eY0@@@@
? ? ? ? ? ?g@@
? ? ? ? ? ? ? ? ? ?
? ? ? ? ? ? ? ? ? ?
? ? ? ? ? ? ? ? ? ?
how. ucts to about 20 countries around the
As a result, keeping confidence with world, including China, Taiwan, Japan, the
partner companies and customers is the United States and Europe. Its profits stem-
basic principle to produce global brands ming from exports account for 30 percent
and develop into a global enterprise, he of the total sales of the domestic game
MGAME, the first generation of game It reflects that South Korea is an online
portal, is a true game portal company, game powerhouse in the world
whose ability has been officially proved Acknowledging this high competitive-
with a variety of titles. ness, MGAME received the president
For the first time in the history of the award and the popular award at Korea
Korean game industry, MGAME offered Games Conference in 2005.
the service of the "Dark Saver" game to the It also won the “Gold Finger Prize” and
Chinese market. It is a leading game com- other awards in the three fields in China, a
pany in exploring overseas markets. major attraction for the “hallyu (Korean
MGAME exports its own game prod- wave)” fever last year.
5 4 _ January 2006 KOREA IT TIMES KOREA IT TIMES January 2006 _ 5 5
On-the-scene Report--Japan On-the-scene Report--Malaysia
Gateway to Japan Truly Asia!
iPark Osaka boosting Blossoming trade and
PR activities for Korean investment relations between
firms advancing into Korea and Malaysia herald
Japanese market a new era in inter-Asian ties
By Kim Bok-young, chief executive director IT forums or one-on-one investment attrac- so-called opportunity market, it plans to By Ryu Jong-hun, chief executive director of from Korea amounted to US$5.678billion to fully realize their trading potential.
of the iPark Osaka KOTRA Kuala Lumpur
tion consultation meetings. stage target marketing activities centering as shown as table below:-
It is also placing emphasis on informa- on provincial governments in Japan Today, the main products imported Investment in Malaysia
iPark Osaka, a gateway for Korean IT ince 1990, Korea and Malaysia have
enterprises to west Japan, is actively pro-
moting various projects to help domestic
IT companies advance into the Japanese
tion exchanges with Korean companies
that already attained tangible fruits from
their advancement into the Japanese mar-
through partnership alliance with local SI
Along with this, IPark Osaka has a plan
to push for the business supporting Korean
S been enjoying close, cordial and a
very cooperative bilateral
relationship. Korea’s exports to Malaysia
from Korea in 2004 were semiconductors,
computers, motor vehicles, mobile
telephones, steel and iron, electronic tube
and vessel. Meanwhile, Malaysia’s major
In term of investment, Korean
companies invested over US$85million in
25 manufacturing projects in Malaysia in
2004. For the period January to September
market successfully. IT engineers' advancement into Japan and almost two-fold increase from export to Korea in 2004 by product sector 2005, a total of US$174.9million in
Among the projects of iPark Osaka are Strategies for 2006 development of offshore business. US$2.951billion to US$4.333billion in the included mineral fuels, electrical and investments from Korea was recorded for
intensive marketing and service assistance, At present, Japan suffers from shortage year 1995-1996 while importing from electronic products, boilers & machinery, twenty projects and created 1,559 jobs.
public relations (PR) activities and interna- of manpower in the software sector. Malaysia also achieved almost 20%
tional cooperation for Dynamic U-Korea, Through close cooperation with Japanese growth within two years time. During the
and offering of market information. institutions and enterprises, accordingly, financial crisis in 1997/98, the trade value
Firstly, it is bolstering PR activities of we plan to accelerate Korean IT engineers' for both countries was badly hurt by
Korean IT companies for local opinion advancement into Japan and lead it to off- massive depreciation by the afflicted “Korea’s exports to Malaysia showed an almost two-fold
leaders through online and offline to build shore business through enhancement of economies. For the first time it recorded a
a firm foothold for domestic IT firms to confidence. contraction of 17.3% for export to increase from US$2.951 billion to US$4.333 billion in the
advance into the Japanese market. Malaysia and a contraction of 32.7% for
Related to this, it is building a close
In the meantime, it plans to hold various
import from Malaysia. Although the two
year 1995-1996 while importing from Malaysia also
seminars and forums for local opinion
cooperation network with local govern- leaders to publicize superiority of Korea's countries were affected by the 1997/98 achieved almost 20% growth within two years time.”
ment agencies, provincial governments, IT industry, including WiBro and DMB, crisis, the have emerged stronger even
IT-related associations and organizations and enhance brand image of Korean IT though they had their own unique and
through seminars and consultations. companies. different approaches in copping the
Kim said that the most important prior- challenges. The trade relation has wood, chemicals and etc. As the end of Investment in the first nine months of this
ities for Korean IT companies to success- Japan changing rapidly both politically flourished and become stronger after the October 2005, bilateral trade between the year has therefore already surpassed total
fully enter the Japanese market are secur- Kim Bok-young, and economically. crisis. Today, Korea is an important trade two countries stood at US$8.805billion an Korea investment in 2004. The main
ing business and marketing manpower chief executive director of the iPark Osaka
It aims at becoming a frontrunner with- partner for Malaysia; in fact, it has grown increase of 10.4% compared to the same investment concentrated in non-metallic
and construction of local market channels in 2010 in the IT field, while pushing for over years to the seventh largest trade period of last year; with Korea exporting mineral products, electronic and electrical
and partners. In 2006, iPark Osaka plans to pursue aggressive policies and technology devel- partner. US$3.866billion worth of goods and product, textile products and service
concentrated and differentiated strategies opment in manufacturing, basic material In 2004, total trade between countries importing products valued at related sector in trading, wholesale,
Promising vs. Potential Markets to produce a success model in the IT sec- and parts industries. stood at US$10.159billion, almost a two- US$4.938billion. The outlook for the retailing, construction, engineering and
In line with this, iPark Osaka classifies tor. According to the Nomura Research fold increase from US$6.754billion in the bilateral trade is extremely encouraging freight & forwarding services.
the local market into a promising market First of all, it places the target on the institute, the Japanese IT market will see a year 2001. Export to Malaysia was valued given the fact that the two nations have yet Samsung Electronic Malaysia Sdn Bhd
and a potential market after analyzing the solution sector, including security whose rapid development from 3.1 trillion yen in at US$4.480billion in 2004, while imports has always been a major investor among
characteristics of the market and finds out needs are high in Japan, and the digital 2005 to 4.4 trillion yen in broadband,
[Table 1] the Korean companies that have invested
excellent market channels and partners to contents sector, including mobile contents from 800 billion yen to 2.3 trillion yen in in Malaysia since its establishment in
let them link with Korean enterprises. and solution. mobile solution & contents, from 85 bil- Export to Malaysia Import From Malaysia Total Trade
1989. In recent years, Samsung has
For instance, in the promising market, Year Value Growth Value Growth Value Growth
In the sectors, it will accelerate business lion yen to 237 billion yen in online game, Rate (%) Rate (%) Rate (%) evolved as a major consumer technology
including security sector, it holds market- cooperation between Korean IT companies and from 27.5 billion yen to 120.7 billion brand regardless in home, office or mobile
ing promotion channel seminars and con- 2001 2,628.0 25.2 4,126.0 15.4 6,754.0 7.3
and excellent market channels & partners yen in RFID. environments. Samsung Group of
sultation meetings to accelerate Korean IT in Japan. In keeping with the rapid development 2002 3,218.3 22.5 4,041.4 2.1 7,259.7 7.5 companies produce cathode ray tubes,
companies' advancement into the It also plans to push for joint develop- of the Japanese IT market, iPark Osaka 2003 3,851.7 19.7 4,249.1 5.1 8,100.8 11.6 glass panels & funnels, computer
Japanese market. ment and business alliance projects will extend active supports to Korean 2004 4,480.4 16.3 5,678.7 33.6 10,159.1 25.4 monitors, TVs and microwave ovens with
Furthermore, it is also seeking ways to between Korean and Japanese companies small and medium-sized IT companies,
2005 Jan - Oct 3,866.9 4.1 4,938.4 15.9 8,805.3 10.4 a total of estimated turnover of
conclude strategic alliances between by making the best use of local funds. which are willing to advance into the US$1.8billion in 2005. Samsung
Korean and Japanese enterprises through In the SI (System Integration) field, the Japanese market. (Value in US$ million)
Source: KOTIS Electronic has invested US$1.1billion into
5 6 _ January 2006 KOREA IT TIMES KOREA IT TIMES January 2006 _ 5 7
On-the-scene Report-Malaysia 2006 ICT Landscape
Rosier Industrial Outlook
Malaysia as their manufacturing and As for semiconductors, overseas sales
export base with the creation of 7,000 jobs. are to grow by 16.3% due to steady global
demand for NAND flash memory chips
ICT Sector in Malaysia ccording to forecasts by the domestic front, demand for cars is to
which are used in new applications like
The ICT industry is a growth industry
in Malaysia and it covers hardware,
software and Research & Development (R
&D) sectors. These sectors are further
A Ministry of Commerce, Industry
and Energy (MOCIE), Korea’s
major industries are expected to achieve
increase by 11.6% this year.
In addition, with new facilities for flat
panel displays beginning operations, pro-
digital multimedia broadcasting (DMB).
Meanwhile, production of heavy electri-
cal equipment is forecast to make a
rebound this year. With the recovery of
substantial growth in 2006, aided by robust duction of displays is to climb by 7.9% in
classified into sub sector as the follows:- facilities investment, production of heavy
exports as well as the quick pace of recov- 2006. Outbound shipments of displays are
* Hardware - computer and computer electrical equipments is to increase by
ery in corporate investment, domestic likely to climb by 19.1% this year. By con-
peripherals, data storage devices and 4.0% year-on-year in 2006, while exports
demand, and consumer spending. trast, domestic demand is expected to
telecommunications equipment/devices and domestic demand are to rise by 15.8%
By industry, information technology decrease by 9.2%.
* Software - software development and by 8.5%, respectively.
(IT), automobiles, general machinery, dis-
activities plays, and steel are forecast to maintain the
* R & D - design and development strong growth momentum in 2006.
activities of hardware and software system Industries such as semiconductors, ship-
* Photonics/Optoelectronics/Optical building, and petrochemicals are expected
Fibres and Cables to show modest growth.
The IT sector is expected to see double-
The ICT industry’s export performance ICT products of RM48.0billion in 2004 oversee the development of the MSC is the digit growth, fueled by increasing demand
has been increasing steadily over the years and RM20.0billion in May 2005. Multimedia Development Corporation for digital gadgets such as camera phones,
from RM35.3billion in 1998 to To spearhead development in ICT in (MDC) based in Cyberjaya. The MDC has DMB mobile phones, and low-price laptop
RM71.1billion in 2004 to RM29.7 billion Malaysia, the government continues to been incorporated under the Companies computers.
in May 2005. Major export destinations develop the Multimedia Super Corridor Act of Malaysia, owned and funded by the Overseas sales of automobiles are to
are USA, Japan, Singapore and Hong (MSC). Conceptualized in 1996, the MSC Government. grow by 6.6% year-on-year despite the
Kong. While for the imports of ICT, major is a dedicated 15 X 50 km Corridor, Over the year, the MSC has since strong won and high oil prices. On the
imports for computer and computer stretching from the Petronas Twin Towers grown into a thriving dynamic ICT hub,
peripherals were sourced from China, in the north to the Kuala Lumpur hosting a total of 1,385 MSC status
Bulls Still Rampant in 2006
Singapore and USA,
telecommunications products were
while International Airport in the south; and
encompasses Cyberjaya (the Technology
companies ( as at 24th November 2005)
comprise of multinationals, foreign-
KOSPI securities market
imported mainly from China, Japan and Core) and Putrajaya (the new owned and home-grown Malaysian outlook very bright with
Korea. Imports value totaled administrative capital of Malaysia). companies focused on multimedia and corporate performance
RM23.2billion in 2004 and RM9.7billion Implementation of the MSC is divided into communications products, solutions, he New Year’s stock market “The Korean stock market has the potential improvement along with
in May 2005. Malaysia is a net exporter of three phases from 1996-2020. Mandated to services and; research and development.
MSC provides a conducive environment
for the world’s leading ICT companies to
expand their business, undertake research,
T challenges KOSPI 1600 mark age
following last year’s brisk market.
Major securities companies at home
to rise over 20% in comparison with the
current index”, adding its PER is low by
comparison with the major part of Asia
stock price bull market.
forecast that this year’s stock market would countries without mentioning the United
develop new products and technologies, continue last year’s bull pace, encouraged States and Japan. rather than optimism, on one hand, is nec-
and export their products. The MSC is by corporate profit improvement, balanced KOSDAQ also which has posted high essary as some negative factors such as for-
also an ideal growth environment for growth of export/domestic demand, good rise rate for the second time all over the eigner sales and delivery and exchange
Malaysian ICT SMEs to transform environment of demand and supply and so world stock market showing about 80% rates as well as international oil price’s
themselves into world-class companies. forth. rapid bull market, expects a bull market fluctuation enlargement remain.
Furthermore, the MSC welcomes To begin with, KOSPI index which has this year. On the other hand, leading stocks in the
countries to use its highly advanced repeated the highest mark march day after Daewoo Securities and Kiwoom.com New Year are expected to be IT stocks
infrastructural facilities as a global test day last year, challenges the highest 1600 Securities forecast that KOSDAQ index since this year’s global IT indexes are
bed for ICT applications and serves as a level as the index is expected to continue would rise up to the highest 1000 point. improving and convergence product
springboard to market in ASEAN and the its bull pace this year too. In particular, KOSDAQ companies’ launching based on new technology will
Middle East. Korea Investment & Securities and stock price level improvement associated bring corporate performance improvement
As at the end of December 2004, total Kiwoom.com Securities had their fortune with IT new technology is expected to look along with stock price bull market.
sales of MSC status companies (1,163 told the highest KOSPI index mark this better. Equipment, parts, service stocks Research center chiefs at each securities
companies as in 2004) were estimated at year as 1600 level and the rest of securities related with WiBro, RFID, and DMB etc. companies said: “This year’s stock market
RM6.78 billion. A total of 22,293 job companies forecast the latter half level of are expected to settle as new leading at home will show a bull trend beyond last
opportunities were created, of which 1500 mark as the highest index. themes. year’s high mark and is expected to contin-
19,318 (86.6%) were knowledge workers. Kiwoom.com Securities explained: However, a cautious approach also ue its bull basis till after 2007.”
5 8 _ January 2006 KOREA IT TIMES KOREA IT TIMES January 2006 _ 5 9
International Show / Newest Technology & Products Korean CEOs in Las Vegas / CES 2006
CES is Here!
Korea sweeps CES Innovation Awards
1 2 1, iriver T10 S.S.Kim, vice chairman Park Mun-hwa, president Lee Sang-wan, president Choi Ji-sung, digital Oh Dong-jin,
of LG Electronics & CEO, LG Electronics & CEO, Samsung media president, president of Samsung
2. Reigncom’s iriver U10 2GB Electronics LCD Samsung Electronics Electronics North
3. Samsung Electronics’ YEPP MP3 America Headquarters
4. ROBOTIS’ robot kit ‘Bioloid’
5. Dittotec’s fingerprint identification
door lock ‘ARTRION’
6. Fusionsoft’s DSCF 1349
3 4 5 6
Lee Seung-chang, CEO Lee Sung-kyu, president CEO Yang Deok-Joon, Hwang Nam-joo, Paul Otellini, Intel CEO
of Daewoo Electronics & CEO, Pantech Co. Reigncom president of Namjoo
1. MS chairman Bill Gates listens to an explana-
of the highest innovative awards for which and vice chairman S.S. Kim of LG tion about large-sized LCD TV technology at
2000 companies in the world competed. In Electronics launched on-the-spot market- Samsung Electronics booth from president Choi
addition, in the part of Innovation Award ing. From Samsung Electronics, Choi Ji- Ji-sung.
too, the two companies showcased Korea’s sung, digital media president and Lee 2. Broadcom president & CEO Scott Mcgregor
electronics technology power superiority Sang-wan LCD president & CEO are (left) has a pleasant chat with president Choi.
by sweeping 12 awards and 10 awards unfolding brisk tie-up activities as well as 3. Circuit City’s CEO Philip J. Schoonover (left)
respectively. consecutive meetings with overseas buy- gives a trial performance about XM Radio
In the case of Samsung Electronics, ers, plus Lee Sung-kyu, president & CEO, receiver.
PMP, four-door refrigerator, and the hand- Pantech Co., Byun Dae-kyu, CEO & presi- 4. US football league (NFL) superstar Dan Marino
held device accessible to the Internet dent of Humax and so forth. (left) gives his signball to the visitors.
through the wireless Wi-Fi have won the MP3P was picked as the highest digital
By Lee Kyung-hwan Editorial director 1
highest innovative awards and LG household electricity equipment to shine
Electronics’ 50 inch PDP TV also won the this year and next year by CEA as MP3P
nterprising Korean IT enter-
highest innovation award. Even Korea’s which posted an explosive growth pace of 2 3 4
prises such as Samsung smaller companies such as MPO and New 200% last year, is expected to reach to US$
Electronics and LG Media Life followed suit by winning 4.5 billion.
Electronics are enhancing their Innovation Awards. Besides, Bill Gates MS chairman gath-
reputation as super first-rate Moreover, global industry celebrities ered participants as well as visitors’ inter-
enterprises by sweeping the “CES such as Bill Gates, MS chairman and Paul est by announcing MS’ digital vision
Innovation Awards” in this month’s CES Otellini, Intel CEO, plus Korean industry regarding MS’ cutting-edge technology to
in Las Vegas. leaders and CEOs attended in large num- make the digital world more accessible to
Samsung Electronics and LG bers as well. all, safer and more interesting, through his
Electronics won awards in three categories From LG, to begin with Koo Bon-Joon, keynote speech at the Las Vegas CES
and one category respectively in 35 fields vice chairman & CEO of LG Philips LCD Show.
6 0 _ January 2006 KOREA IT TIMES KOREA IT TIMES January 2006 _ 6 1
International Show / CES 2006 Newest Technology & Products
All Set for CES 2006 Leading Global Electronics Market in 2006
Samsung Elect. wins most design and engineering innovation awards at CES 2006
separately by individual
This technology provides
flexibility in food
management, and saves
Samsung’s other Best of
Innovations Honorees is
YM-P1 Portable Multimedia
Player, the world’s first
pocketsize satellite TV
reception enabled player
In keeping with its reputation as one of with a 4 inch TFT-LCD
the world’s leading manufacturers of screen. The portable player’s
electronics goods, Samsung Electronics 20GB drive can also store
became the recipient of 15 International and play music and video. It
CES Innovations of Design and has a simple design by
Engineering Awards for this year’s detaching accessories.
International Consumer Electronics Show Samsung’s smart phone
(CES). ‘SCH-i730’, in the
Prior to the international exhibition to meantime, won an accolade
be held in Las Vegas in the United States that blends both portability
on January 5-8, Samsung Electronics, and usability in a compact
which won 11 innovation awards in the yet feature-rich package
Korean IT Firms Gear Up for America’s largest annual IT tradeshow of any kind previous event, announced that it has not with a hidden full QWERTY
only won the innovations awards but was keyboard and a wide screen.
orea’s consumer electronics- with Wi-Fi wireless Internet and so forth. attendees discover the newest trends, also named the Best of Innovations
It also provides user-friendly
associated companies are On the part of Korea’s smaller strategies and profit opportunities in the Honorees in three product categories: the operating environment since
preparing to show off their latest companies as well, Fusionsoft among a consumer technology industry. With four door convertible refrigerator “Quatro” the product is compatible
consumer electronics products at the number of participating smaller companies regard to product categories too, The in the category of ‘home appliances’, the with Windows operating
annual International Consumer Electronics with a form of Korean joint pavilion International CES features products, and YM-P1 Portable Multimedia Player in the systems for mobile devices.
Show (CES) being held in Las Vegas, Jan displays portable multimedia player (PMP) the companies that create them-from many category of ‘portable audio’, and SCH- In addition to these, Samsung’s smart phones won an accolade that blends both
portability and usability
5-8, 2006. ODD-1 P10N model and Reigncom is different consumer technology markets. i730, the handheld device accessible to the Samsung’s lineup of
Both large companies such as Samsung scheduled to showcase iriver U10 2GB According to PC World, the newest HD Internet through the wireless Wi-Fi, in the products and technologies that have won products including XM support MP3
Electronics and LG Electronics and product as well as iriver T10 etc. TV. Portable-model video, home category of mobile communications. the innovations awards include Pocket players, and XHT technologies that can
smaller companies will take part in this EgisKorea also is planning to pioneer networking, entertainment-related The CES Innovations Awards are Imager, a portable projector that can easily operate interconnected digital video
Show to show off their cutting-edge export route in the fields of GIS electronic products are slated to be granted to products among the more than project pictures on a screen as wide as 60 and audio devices.
electronic products. management system with the company’s showcased at the 2006 International 1,000 entries for the exhibition that earn inches, three digital camcorders including Choi Ji-sung, president of Samsung
First off, Samsung Electronics is XDWORLD BUILDER as well as Consumer Electronics Show. the highest honors in terms of technology a sports camcorder with an additional Electronics Digital Media, said, “The fact
expected to assume leadership of world XDWORLD BUILDER Professional. In a nutshell, CES is going to be an and design from an independent panel of external cam operable wireless, the that Samsung has swept 15 CES
electronics product innovation in 2006 as CES is the world’s largest annual important opportunity for all of the journalists, designers and engineers. world’s smallest multi-function laser Innovations Awards means that we stand
the company received 15 International tradeshow for consumer technology and companies to show off their consumer- In the category of home appliances, printer, two LCD TV models including the at the top of the world in terms of
CES Innovations of Design and America’s largest annual tradeshow of any and commercial-based systems to Samsung displayed the world’s first four world’s largest 82-inch LCD TV, two technology and design. In 2006, too,
Engineering Awards with its portable kind. customers. door convertible refrigerator “Quatro.” It mobile phones including high-tech Samsung Electronics will take up a leading
multimedia player (PMP), 4-door More than 100 sessions with the provides consumers with four separate Bluetooth camcorder phone, a stylish role in innovating digital home appliances
refrigerator, QWERTY phone equipped industry’s leading speakers will help compartments each controlled and cooled home theater, as well as a wide range of and IT products.”
6 2 _ January 2006 KOREA IT TIMES KOREA IT TIMES January 2006 _ 6 3
International Show / CES 2006 Newest Technology & Products
Showcasing Innovative Suite CES 2006 Innovation Awards for Korean Firms
LG.Philips LCD demonstrates cutting-edge suite of TFT-LCDs at CES 2006
G Electronics Honored
L with 11 CES 2006
Innovations Awards; 50-
Inch Wireless Plasma HDTV
Display Receives Top Billing in
Digital Display Category
Underscoring its growing U.S.
brand presence and reputation for
innovation, LG Electronics has
once again been recognized for its
commitment to design and
G.Philips LCD Co., Ltd. (NYSE:
technical excellence by the
LPL, KRX: 034220), one of the Consumer Electronics Association
world’s leading innovators of thin- (CEA) and the 2006 International
film transistor liquid crystal display (TFT- Consumer Electronics Show
LCD) technology, announced that it will (CES) with 11 prestigious “CES
showcase its cutting-edge suite of TFT- 2006 Innovations” awards.
LCDs for HDTVs, desktop monitors, This year, a unique, new 50-
notebook PCs, digital information displays inch Wireless Plasma HDTV
and other applications during CES 2006 in Display (50PB2DW) received top
Las Vegas. A sampling of the company’s honors with a “Best of
show highlights, include: Innovations” award in the Digital
Display category. The company
Full HD LCDs for True HDTVs 55-, 47- and 42-inch wide UXGA (1920 x -47-inch full HD LCD TV featuring a also received 10 “Innovations
LG.Philips LCD will show its award 1080) portrait mode digital information lower power LED backlight, delivering a 2006 Design and Engineering
winning 55-inch wide full high definition displays?demonstrating how LCD’s high higher color gamut Showcase” awards. Winning
(1920 x 1080, two megapixels) panel for resolution, low reflectivity, long lifetime -42-inch 3D display, the world’s largest entries will be showcased at the
true HDTVs, which achieves a dynamic and ease of installation are revolutionizing switchable 2D/3D display 2006 CES in Las Vegas on
LG Electronics’ largest full HD 102inch Plasma
contrast ratio of 1200:1, and 47-, 42- and digitial signage. -42-inch low power external electrode January 5 - 8, 2006, and some will
37-inch wide full high definition TFT- fluorescent lamp (EEFL) (145W) LCD for be featured at the “CES Unveiled”
LCDs for TVs that deliver dynamic Superior LCDs for Premium Desktop HDTVs event on January 3. design, quality and contributions to the - 42-inch LCD HDTV with Built-in
contrast ratio of 1600:1. These panels all Monitors and Notebook PCs -42-inch high color cold cathode With a total of 44 awards over the past quality of life. This year more than 160 High-Definition Digital Video Recorder
feature a wide viewing angle of 178°∆, LG.Philips LCD will demo its fleet of fluorescent lamp (CCFL) LCD for HDTVs three years, the company has won companies submitted a record number of - 47-inch Full High-Definition LCD
maximum brightness of 600 cd/m2, a TFT-LCD panels for premium desktop with a 90 percent color gamut accolades across multiple categories, entries totaling more than 1,000 — an with Built-in High-Definition Digital
response time as fast as 8ms grey-to-grey monitors and notebook PCs, including the -10.1-inch flexible e-book display, the including Digital Display, Mobile estimated 25 percent increase from 2005. Video Recorder
(GtG) and a high color gamut. These world’s largest and highest resolution 30- largest flexible active matrix display Communications, Home Theater, Audio This high-profile industry recognition - 15-inch Wireless LCD TV
demonstrations further support the inch wide QXGA+ (2560 x 1600) LCD prototype shown. Components, Video Components and is consistent with LG Electronics’ growing - 1200 Watt DVD Recorder & VCR
company’s efforts to set the industry monitor panel, a 26-inch wide UXGA -And much, much more... Home Appliance. global leadership in consumer electronics, Home-Theater-in-a-Box
standard flat panel TV sizes of 47-, 42-, (1920 x 1200) LCD monitor panel and the Sponsored by CEA and endorsed by the home appliances, information technology - 700 Watt Flat Speaker DVD Player
37- and 32- inches, and all feature world’s largest 20.1-inch notebook PC Medium & Small TFT-LCDs Industrial Designers Society of America, products and mobile phones, and validates Home Theater System
LG.Philips LCD’s Super IPS technology, panel. In addition to the aforementioned the Innovations Awards highlight product the company’s commitment to providing a - Wall Mounted Projector
enabling the widest viewing angles with demonstrations, LG.Philips LCD will also advancements in technology design and wide array of innovative products to the - Portable Digital Player
great color fidelity at any angle. A Glimpse of What’s Yet to Come...Future highlight a series of small and medium engineering. A panel of prominent U.S. market. - Tromm Washer SteamSense(TM)
LCD Technology Prototypes on Display displays for a variety of applications such industry designers, engineers and Products receiving 2006 honors - TV Refrigerator
Full HD LCDs for Digital Information LG.Philips LCD’s prototype as car navigation systems, automotive journalists select award recipients by included: - Remote Monitoring Laundry System;
Displays demonstrations feature new technologies entertainment, portable AV devices and evaluating entries against set criteria, - 50-inch Wireless Plasma HDTV - (Washer, Electric Dryer, Gas Dryer and
At CES, LG.Philips LCD will show its for LCDs, including: mobile phones. including user value, aesthetics, innovative Best of Innovations Award Remote Monitoring Device)
6 4 _ January 2006 KOREA IT TIMES KOREA IT TIMES January 2006 _ 6 5
$100 Bil. Electronics Exports Breakthrough
items, including semiconductors, cellular
(Unit: $100 million)
phones, computers, color TVs, and display
have increased 100-fold at the lowest
estimate and 22,000 times at the highest The total
estimate in comparison with the initial export
Korea rises to world’s fourth biggest digital electronics industry exporting country
export year.” The amount of
The digital electronics industry is electronics
playing a role as the core growth engine of
By Lee Kyung-hwan Editorial director
Korea’s economy as its relative
s last year’s electronics industry importance in exports reaches 38 percent
A exports surged past the $100
billion barrier, new challenges
facing Korea’s electronics exports in the
(Unit: $100 million) of total exports, and its production’s
specific gravity also reaches 26 percent
based on such performances, in addition to
that the government is driving exports
$100 billion era are coming to the fore.
Experts point out that it is becoming forward in earnest by preparing the “2015
Digital Electronics Industry Development billion in 2005. Korea has developed in industry nurturing policy and export drive
difficult as time goes by to expand export succession 64K in 1983, 1M in 1986, strategy despite its short history.
markets owing to rising competition with Strategy” to raise digital electronics
exports to $300 billion and world market 256M in 1994, 1G in 1996, and 4G The government aims to accomplish its
China, the world’s manufacturing center, DRAM in 2001 for the first time in the vision to be one of the three major powers
explaining that Korea cannot afford to be share 14 percent by 2015.
Commenting on the significance of world. in the global electronics industry circles by
complacent based on past In the case of cellular phones, they 2015 with exports of $300 billion and
accomplishments or to simply dream now. electronics industry exports of $100
billion, MOCIE officials note that the have entered the stage as digital world market share of 14% by launching
They are unanimous that the nation’s convergence’s hub equipment, which the “2015 Digital Electronics Industry
export structure and also trade losses are $100 billion export accomplishment is a
significant milestone just 33 years after the combines diverse technologies such as Development Strategy.”
getting bigger as export increases raise communication, computer, semiconductor, Meanwhile, MOCIE is stressing that
other problems, since the source $100 million breakthrough in 1972, and 29
years after $1 billion breakthrough in electronic material and display etc. In the Ministry will reinforce core parts
technology is lacking and the parts and 2005, cellular phone exports were materials’ international competitiveness
material industry are not fully developed. 1976, as well as 18 years after $10 billion
accomplishment in 1987 and six years expected to reach $18.5 billion and and lead next-generation technology by
The phenomenon of export products’ Germany England France Taiwan Korea
(Source: REED Electronics data) since $50 billion accomplishment in 1999. Korea’s world market share is forecast to promoting the future’s high value-added
preponderance is also at a dangerously reach to 26.5 percent industries such as the digital entertainment
high level. As semiconductor exports In addition, this record means that the
export markets to compete against and Energy (MOCIE) forecasted that In regard to display too, Korea leaped industry and through BIT/NIT fusion
break through $30 billion and Samsung same level has been accomplished with the
latecomer competitors like China and it is 2005’s electronics industry exports would to the No. 1 TFT-LCD production country technology development. Also, the
Electronics cellular phone production entire total export scale of Korea in 1995
also important to proactively deal with the reach $102.9 billion, up 6.5% in in 2002 on the basis of accumulated Ministry is dealing with core source
reaches 100 million units, along with with one single industry alone.
Free Trade Agreement (FTA) expansion comparison with the preceding year. The technology as the largest braun tube technology’s shortages, and parts material
digital electronics exports of $100 billion But key exports items, particularly key
trend. electronics industry $100 billion manufacturing country in the world. industry’s competitiveness fragility and so
last year, the relative importance of some item’s export extensions such as
The important aspect regarding breakthrough is just 33 years after Korea Household electricity appliances forth and is actively coping with
export items, including semiconductors, semiconductors, cellular phones and
quantitative export enlargement is a had accomplished electronics industry industry also made big strides thanks to environment change issues and technology
cellular phones and display is excessively display, led the $100 billion export
structural problem solution. Relevant $100 million in past 1972 and in the the government’s proactive electronics fusion/complex trends.
high. accomplishment, with five key items’
business circles have to prevent sluggish meanwhile the electronics industry export
Fortunately, export destinations that export contribution rate, such as
domestic growth continuing even though had grown 738 times, increasing 22.2% on
were hitherto concentrated on three semiconductors, cellular phones, (Unit: $100 million)
exports are doing well, but this is not an annual average.
nations, namely the United States, the EU computers, color TVs and display (LCD)
linked to domestic demand. To this end, With this, Korea has come to
and Japan, are now being diversified to the reaching 71.9 percent
nurturing the domestic parts as well as consolidate its phase as one of the four
so-called BRICs (Brazil, Russia, India and By major export counterparts as well,
material industry is indispensable. largest digital electronics industry export
China), with priority given to China this market’s diversification is under way as
The supply of domestic-manufactured countries in the world, following Japan,
year. export expansion to developing countries
parts and materials is necessary for the United States, and China.
Industry experts thus explain that a new such as BRICs continues growing, with
producing export goods and trade can be An official responsible for electronics
vision and strategy are necessary beyond priority given to China.
kept in the black by equipping the nation industry exports at MOCIE explains:
the digital electronics industry’ $100 with parts & material competitiveness, “Export item and export market’s
billion export era, such as nurturing next- Aiming for $300 billion exports and 14%
experts say. diversification were attained as export item
generation key export items like the eight global market share by 2015
changed from radio as well as transistors
Semiconductors have become a
items of the IT 839 strategy and widening Hub role as core growth engine of to semiconductors, cellular phones,
representative export item for Korea and
export fields to service fields, such as Korean economy premium life household electric Washing Large-sized
technology. It is necessary to diversify exports are forecasted to surpass $30 Airconditioner refrigerator Digital TV
The Ministry of Commerce, Industry appliances, and display. Five key export machine
6 6 _ January 2006 KOREA IT TIMES KOREA IT TIMES January 2006 _ 6 7
New Products / Texas Instruments
YongPyeong Int’l Ski Festival
Proving Texas is Bigger and Better
digital video output with integrated
resizer and on-screen display (OSD)
engines. The TMS320DM6446, tuned
for video encode and decode
applications, adds video encoding
capabilities through a dedicated video
Texas Instruments launches pioneering Digital Video Platform in Korea, as digital processing front end capable of capturing
various digital video formats.
video is tipped as the next major growth sector in the market
Software Infrastructure Speeds Time
implifying digital video innovation, production-tested through the integration of to Market
S Texas Instruments last month today
announced the Korean launch of its
its DaVinci‚ technology. After being first
designs without getting
bogged down in the
details of video
hardware and software,
allowing developers to
build upon existing,
The complete DaVinci software
infrastructure, from low-level OS drivers
to application APIs, makes it possible for
developers to implement digital video
Korea’s Ski Mecca
announced September 8, 2005 it was implementation,” said production-tested software
launched simultaneously worldwide in the Greg Mar, DSP SoC components optimized for without having to focus resources on
same week before Christmas 2005. The platform manager, TI. digital video. With the writing and optimizing codecs or
new products include two digital signal “DaVinci technology first of many DaVinci programming a DSP. Initially, based on
processor- (DSP) based system-on-chips will be implemented products from TI, digital the Linux Operating System, APIs mask
(SoC), multimedia codecs, application into a wide variety of video will be as easy to the complex hardware and software The 24th YongPyeong International Ski Festival offers
programming interfaces (APIs), applications, such as implement as an off-the- details of implementing codecs from
developers, enabling them to interchange
winter festivity for diplomatic and foreign community
frameworks and development tools, and all videophones, video shelf component.
are optimized to enable innovation for security systems, and “Texas Instruments’ multimedia codecs without having to
ponsored by the diplomatic community of Korea, the 24th YongPyeong
digital video systems. These integrated
components are the industry’s first
complete offering of an open platform to
enable digital video innovation without
innovative devices that
will take advantage of
easy digital video
DSP SoC platform manager, TI.
DaVinci technology is
very clearly a landmark in
said Chris Crotty, senior
modify application code. Optimized
video and audio codecs are also available
for free evaluation and licensing from TI
to simplify and speed customer design
S International Ski Festival, a winter season festivity for the diplomatic community
as well as all foreigners in Korea, kicks off from Feb. 10-11, 2006 at the
YongPyeong Resort (www.yongpyong.co.kr).
The 2006 event will be prepared by the Swiss Embassy, with the top envoy Amb.
requiring extensive digital video expertise. pointed out that the fact that Da Vinci’s consumer electronics analyst, iSuppli and decision-making.
Christian Hauswirth heading the organizing committee. Over 600 participants have
With these DaVinci products, adding interoperability, supporting all standards Corporation. “We’ve had an audio When creating applications,
taken part in past festivals, and the 2006 event will offer Alpine giant slalom, Nordic,
digital video to an application becomes as makes it particularly well-suited to revolution; a video revolution is the next developers are able to write to industry-
and Snowboard giant slalom races, according to the organizing committee.
simple as writing to an API, saving Korea’s diverse and innovative IT market. step in consumer electronics. It looks like recognized APIs for storage, networking
All foreigners and their families are welcome to participate for a weekend of fun
original equipment manufacturers months He sees digital video as the next big TI is taking care of everything and and video interfaces leveraging standard
skiing in Korea. Moreover, all foreigners will be provided a 30% discount on room
of development time and lowering overall growth sector in the market, with its wide providing a very complete solution for OS development environments. OEMs
accommodations, ski equipments rental and lift tickets at YongPyeong Resort during
system costs. range of applications in telematics, CCTV developers that will enable digital video are still empowered to access and
the International Ski Festival.
“DaVinci technology gives developers and so forth. innovation and the next generation of develop directly on the DSP and ARM
Since its opening in 1975 as “Ski Mecca in Korea”, YongPyeong Resort has been
flexible combinations of components to TI has made this possible by consumer video devices.” should they choose. The result is that
acclaimed the most famous all season resort, equipped with largest ski facilities located
quickly create high-performance and eliminating the complexity of digital video developers are able to take advantage of
on the mountains, 700 to 1,458 meters above sea level, on a site of 4,300 Acres.
DaVinci Processors Reduce System the SoC’s performance and focus on
It is considered that the history of Korean ski sports itself is exactly the same as that
Cost developing their own value-added
of YongPyeong by the people in Korea, and also YongPyeong resort is internationally
The TMS320DM644x architecture is a features.
regarded as one of the best ski resorts in the world furnished with both hardware and
highly integrated system-on-chip (SoC) Texas Instruments Incorporated
software to perfection.
that has absorbed many of the external provides innovative DSP and analog
The resort’s skiing facilities can accommodate up to 20,000 people and offer 32
components required for digital video, technologies to meet our customers’ real-
slopes, six of which are officially recognized by the International Ski Federation.
dropping hardware bill of materials by as world signal processing requirements. In
YongPyeong resort also has 15 lifts including the Gondola, which is 3.7 kilometers
much as 50 percent. The DM644x devices addition to Semiconductors, the
long, and the nation’s largest Ski Lodge, ‘Dragon Plaza’.
are based on TI’s performance-leading company’s businesses include Sensors &
After successfully holding various international ski events like ‘98, ‘00, ‘03 Alpine
TMS320C64x +‚ DSP core, an ARM926 Controls, and Educational &
Ski World Cup and ‘99 Winter Asian Games, YongPyeong resort is well-known to all
processor, video accelerators, networking Productivity Solutions. TI is
Europeans and renowned to Asian skiers and tourists. In addition, the resort has
peripherals and external memory/storage headquartered in Dallas, Texas, and has
installed a Super Half-Pipe, which is bigger than international standard and nation’s
interfaces all specifically tuned for video. manufacturing, design or sales
first Terrain Park, ‘Dragon Park’ so that it has gained full public favor.
The TMS320DM6443, tuned for video operations in more than 25 countries.
Gangwon Province and YongPyeong Resort have been appointed as Korea’s main
decode applications, provides all of the For more information on these new
candidate site for the Winter Olympic Games. The resort will be even better by 2014,
processing components required to decode DaVinci products, see http://www.ti.
with 48 slopes and 24 lifts.
digital video, including both analog and com/thedavincieffectpr.
6 8 _ January 2006 KOREA IT TIMES KOREA IT TIMES January 2006 _ 6 9
Cutting-edge 3D Imaging “Dynamic SAS Ranks No. 1 Business
KDC demonstrates innovative 3D imaging technology
to potential investors, gearing up for its commercial
debut early in 2006
u-Korea!” Intelligence Vendor in Asia Pacific
Communication/broa own double-digit growth targets.” contributed 10 percent to overall SAS
dcasting fusion to “We believe Gartner’s ranking of SAS turnover of US$1.53 billion in 2004. With
serve as a breach of IT as the no. 1 BI vendor in Asia Pacific
confirms the tangible benefits that we
over 6,000 customers and more than 1,000
employees across 14 countries in Asia
industry bring to companies throughout this Pacific, SAS leads the market with its SAS
AS, the world’s largest privately region,” said Sung-Sik, Cho, Country 9 Enterprise Intelligence Platform and its
K orea’s Ministry of Information &
Communication (MIC) has
changed the ministry’s slogan to
S held business intelligence company,
continues its position as a leading
business intelligence vendor according to a
Manager of SAS Korea “SAS has a track business solution applications.
SAS Enterprise BI Server, a major
component of the SAS 9 Enterprise
“Dynamic u-Korea” with effect from recent report from Gartner, a prominent Intelligence Platform, is an integral factor
the New Year. analyst firm. Based on 2004 new license “We believe Gartner’s of SAS’ growth in the BI space. The SAS
MIC minister Chin Dae-je was sales, Gartner ranked SAS as the No. 1 9 platform empowers users at all levels
enthusiastic about the move, saying, business intelligence vendor in Asia ranking of SAS as the no. of an organization by giving them targeted
Pacific with 17.5 percent share of revenue. interfaces to support their individual needs
“MIC will dash ahead to accomplish
advanced Korea through information According to Gartner, the top six countries
1 BI vendor in Asia and skills. SAS Enterprise BI Server
KDC IR explanation meeting regarding 3D imaging technology
telecommunication by changing its (based on new license revenue) in the Asia Pacific confirms the provides a suite of BI functions including
slogan also to ‘Dynamic u-Korea’”, Pacific region include Australia, New reporting, query and analysis, OLAP,
orea Digital Communication Corp. at KDC's manufacturing plant in Anyang Zealand, Singapore, South Korea, China tangible benefits that we integrated analytics, visualization, and
explaining that Korea has already
(KDC), a leader in systems and near the southern outskirts of Seoul. LCD and Hong Kong. This report follows a integration with Microsoft Office
network integration, recently held modules and panels are core components
become IT No. 1 country and
Broadband IT Korea also was suffi- similar report Gartner issued on the
bring to companies environments. More information about
an IR demonstration for the display of 3D of 3D display devices through which the ciently accomplished. worldwide BI software market, which throughout this region.” SAS Enterprise BI Server can be found at
imaging, a technology that has been company plans to attain more than 40 bil- Minister Chin picked ‘communica- confirmed SAS’ position as a leading http://www.sas.com/technologies/
attracting much interest from the market as lion won in sales in 2006. tion/broadcasting fusion’ as the chal- global BI vendor with 15.8 percent of the bi/entbiserver/ index.html.
a next-generation display innovation. Recently, the government announced lenge to be met first and foremost in BI market share. The earlier report from
The demonstration was held at the "3D Vision 2010" in which it outlined a the New Year and robot business as Gartner also highlighted the worldwide record of nearly three decades of
Grand InterContinental Seoul on plan to foster 3D imaging as a national pro- the most promising business sectors growth of the BI market, which increased customer-driven growth and we have
December 22 on the request from major ject. In the plan, the government forecast respectively. 12 percent from slightly less than US$1.9 achieved 20 percent revenue growth in
securities brokers and investors home and the formation of a new and big market for He underscored the importance of billion in 2003 to US$2.1 billion in 2004. Asia Pacific last year. SAS will continue
abroad. Some 10 institutions and over 40 next-generation home appliances and IT proactive steps by the government so “We believe these Gartner reports to invest heavily in R&D to ensure our
analysts and fund managers took part at the products on the view that almost all the that fusion services such as IPTV can confirm two things: the growing demand customers are equipped with a solid
event, during which KDC explained its information devices will be shifted to 3D pioneer new markets, adding that for BI solutions and SAS’ worldwide BI business analytics architecture that
operations related with 3D imaging and formats by 2010. Industry watchers say communication/broadcasting fusion leadership,” said Phillip Beniacl, President supports their business processes.”
demonstrated glass-free 3D mobile phones that such government measure signifies its service is a service to breach new bar- SAS Asia Pacific. “Customers are The latest Gartner report, which
and 3D image projections. will to promote 3D imaging as a new riers in the IT industry. realizing how critical it is to move beyond evaluated market size in terms of new
"Most participants at the event engine of growth and a key export item With regard to the robot field, the traditional BI tools like query and license revenue and excluded earnings
expressed astonishment at Master Image, after semiconductors and mobile phones. minister commented that he sets great reporting and to standardize their BI tools from maintenance and professional
which holds the original technology, and In the meantime, KDC said that the expectations on it, pointing out that on a common platform. As the only vendor services or number of installations,
KDC's application tools to put 3D imaging company will actively take part in robots is one of the fields Korea can that completely integrates data highlights SAS’ leadership in the Asia-
into commercial service," said Kim Rae- WiBro/DMB business in China, the busi- excel in, since it is an industry that is warehousing, analytics and traditional BI Pacific region, which has been marked by
ho, PR team manager at KDC. ness KDC has pitched in for the past year possible by equipping it from set-up applications, SAS is well-equipped to meet steady growth in the BI space. SAS
Presently, clean room-based facilities or so together with 3D imaging, and to parts/material, which Korea is well- the growing need for reliable data and for continues to grow in the Asia Pacific
for the production and assembly of LCD engage in RFID business as a new engine suited to. improved total cost of ownership, while, at region, both in terms of revenue and
modules and panels are under construction of growth. the same time, meeting the company’s customer base. The Asia Pacific region
7 0 _ January 2006 KOREA IT TIMES KOREA IT TIMES January 2006 _ 7 1
in the New Year will be decided by related products, parts as well as network equipment (HW) demand.
definitely the third WCDMA cellular technology’s dissemination and spread Major global IT enterprises have
phone. Accordingly, global big 4’s current as well. launched fierce forestalling through M&A
Fusion Sets Trends for 2006
competition will begin in earnest for this In a nutshell, the topic of conversation & tie-up, noting huge growth potential of
third-generation market including in the world IT industry circle for the New all sorts of video market associated with
Samsung Electronics, LG Electronics, Year is the communication broadcasting TV since last year.
Nokia and Motorola. fusion service and full bloom of screen Accordingly, IPTV market in which
market. TV and high definition are united, rose up
Reigning over world large-size LCD TV market “The New Year’s world IT trend in 2006” Screen service, which is represented by as the largest competitive field of
The New Year’s world IT trend in 2006 TV, is forecast to a kernel growth engine broadcasting communication fusion in the
s Samsung Electronics and LG survey enforced from the world’s major phone market” is forecast to continue a big trend on the of world IT industry in the New Year. As New Year. Mobile TV which can see
A Philips LCD launched operation of
their 7th lines three or four months
earlier than initially scheduled, Korean
global IT enterprise’s CEOs.
These CEOs forecast that Korea’s IT
market would turnaround into a growth
WCDMA, ‘the third-generation mobile
communication service’, and ‘Low price’
rose up as the largest issue in global
basis of communication and broadcasting
fusion. Particularly, as up to convergence
phenomenon without mentioning IT
TV fuses with high speed Internet and
state-of-the-art communication service,
this creates an explosive video (SW)
moving screens with cellular phones, is
making an appearance as a representative
player to assume leadership of world
companies are likely to dominate the period, getting out of continued stagnation cellular phone market this year. service is rapidly accelerated, such demand and forges a pre-cycle structure of mobile market following camera phones
world markets for large-sized LCD TVs in period till last year. In addition, these Associated institutions and market tendency is likely to have an effect on IT investment, which stimulates again last year in the New Year.
the year ahead. CEOs forecast that media convergence survey institutions presented optimistic
In particular, as LG Philips LCD opens such as fusion of communication and opinions in general about the New Year’s
its Paju plant era, its domestic LCD broadcasting will be the biggest trend of cellular phone market.
Putting the Customer First
production base will be reorganized into a world IT market. Moreover, as emerging market new
pluralistic system, which is linked to Concerning the prime mover which demand such as India and Central and Understanding the
Tangjeong, Gumi and Paju. drives the growth of the Korean IT South America is on the rise, cellular interrelationships
LG Philips LCD said to begin with that
the company opened the New Year,
industry, global IT enterprise’s CEOs
named ‘excellent technology power and
phone market growth pace initiated from
2003 was forecast to continue during four
between IT and business
presenting first 42 inch mass production product (35%), continuous economic consecutive years. management will be the
product in its Paju cluster 7th generation growth (25%), leading enterprise’s To begin with, about a solid growth key to success in the
production line. The company is expected
to rush into a mass production system as
imitative role (20%) and so forth.
However, they pointed out that the
pace, major cellular phone manufacturers 21st century
and market survey institutions forecast that
the company secures a stability of government’s regulations (25%) should be the New Year’s global cellular phone examples, the company said.
production line just one month after LG controlled along with ‘excessive market would post a growth rate over 10% In its keynote speech, BMC
Philips LCD dashed in its pilot production competition’ (40%) so that Korea’s IT on an average. Market scale also is Software Korea explained: “In the
at the end of November 2005. industry may develop. forecast to increase from 708 million units globalized economy of the 21st cen-
About its success in mass production in The government institutions have last year to 820 million units at the lowest tury, effective IT support is proving
such a short period, LG Philips LCD proclaimed a conversion from a Linux user estimate and up to 900 million units at the to be an indispensable requirement
underscores that this is the outcome to country to a Linux production country this most estimate. for company growth. It is thus
prove LG Philips LCD’s the best line year. Such optimism’s background is based becoming more and more important
construction ability in the world and Korea, which in the meanwhile has on a fast growth speed of emerging market to understand how IT and businesses
process technology power once again. been using core technology developed by such as India, China and Central- & South affect and influence each other.”
Samsung Electronics also said that the worldwide Linux development institutions, America. Particularly, India market, which Worldwide enterprise management solution provider, BMC An official responsible for BSM at this company added that
company began LCD 7-2 line’s operation, is planning to be reborn as a production deserves to be called as the second China, Software Korea (http:/www.bmc.com/korea) held the compa- a number of companies are adapting BSM Software’s BSM
located in the Crystal Valley, Tangjeong, country in the forthcoming 2010 by taking is forecast to form 36 million units scale, ny’s annual “BMC Customer Days 2005” over two days, from method for the purpose of TCO (effect compared with expens-
and Chungnam. part in at firsthand core technology up 22% from 29 million units from last Dec. 9 through 10, in Daemyung Vivaldi Park, Hongcheon, es) and operation efficiency maximization.
An official responsible for LCD 7-2 development work. year. Gangwon Province. BMC Customer Days 2005 was divided into two tracks,
line at Samsung Electronics notes that 7-2 An official responsible for server China also is forecast to form 86 At this BMC Customer Days 2005, BSM (business service which announced business service management strategy, intro-
line’s full-scale mass production will be a development at ETRI said that Korea million units’ market this year from 82 management) strategy, and introduction to its approach meth- duction about its approach method and presented success con-
key diverging point to assume leadership would consolidate its phase as a Linux million units last year. Brazil and Russia ods were presented along with construction conferences of sev- struction references of several industry fields which were
of large-sized LCD TV standardization. technology suzerain state by allowing our are forecast to grow to 36 million units and eral industry fields. Through this, participants have come to embodied with ITSM technology.
technology to be used abroad, not using 42 million units respectively, up 10% from share information to confirm corporate system and affairs man- For further information, contact (82-2-6009-0131) at BMC
“5~10% growth expectation” Linux technology made abroad. 32 million units and 38 million units last agement, performance management’s diverse techniques and Software or through (82-2-545-8654) at Kpub.
This year’s Korea IT market is year. effects by way of BMC Software Korea’s solution introduction
expected to grow 5~10%, according to a “Optimism over the New Year’s cellular The victory and defeat of global market
7 2 _ January 2006 KOREA IT TIMES KOREA IT TIMES January 2006 _ 7 3
Korea Ranks 1st in ITU’s
Moreover, Korea showed 22.39% in the deployed the company’s NetScreen friendly products.
ratio of broadband Internet subscribers to security appliances to protect the
the mobile Internet users, higher than those Korea 3Com Unveils New
Digital Opportunity Index
infrastructure of LS Cable, a Korean cable
of the UK and Japan with 7.54% and Security Assessment manufacturing conglomerate. Intel Dual-Core Processor-
A government official at the Ministry
Program The company said that Jupiter
Based PCs Displayed at a
Networks NetScreen-500, NetScreen-200
of Communication and Information said
Korea 3Com, one of the world’s leading and NetScreen-5GT appliances are Digital Fair
During the World Summit on the Known to be a more sophisticated that what this shows is the possibility of deployed to ensure LS Cable’s
manufacturers of network equipment,
Information Society (WSIS) held in Tunis index than the Digital Access Index (DAI), Korea making the fastest progress in the infrastructure is completely protected from In an aim to better acquaint consumers
announced on December 22, 2005, the
from 16 to 18 November 2005 under the DOI, as a composite index, allows the ‘ubiquitous society.’ a wide variety of internal and external with up-to-date digital technologies, Intel
launch of a security evaluation program the
aegis of the United Nations, the tracking and comparison of countries in In the meantime, ITU has said that it network-based threats. held an entertainment event dubbed “2005
TippingPoint Security Posture Assessment
International Telecommunication Union different aspects of the Information plans to continuously expand the number The security solutions, which were Intel Digital Entertainment Fair,” where
(ITU) disclosed that Korea came out on Society. It measures countries’ ICT of countries surveyed in its future studies. deployed ahead of LS Cable’s use of consumers could directly experience
The ‘TippingPoint SPA’ service is a
top among the 40 economies surveyed for infrastructure, access path and device, Enterprise Resource Planning (ERP) exciting digital contents through Intel
network security evaluation service that
the “Digital Opportunity Index (DOI).” affordability and coverage, and quality. systems to increase its business dual-core processor-based PCs.
provides preventive security tools by iden-
The index, which measures countries’ As regards the DOI rankings, Korea productivity, are set to provide combined During the fair held on December 17-
tifying network vulnerabilities and poten-
adoption and access to information and scored the top with 0.76 points while Hong firewall/VPN capability and essential 25 at COEX, leading PC makers from
tial exposures to threats to network equip-
communication technologies (ICTs), was Kong and Japan scored 0.67 and 0.66 security functions, such as Stateful home and abroad displayed latest PC
ment, servers and workstation computers.
developed with an aim to utilize it as a points respectively, taking the second and Inspection firewall with Deep Inspection models with multiple powers, such as
Korea 3Com said that the company’s
gauge in bridging the digital divide and third places followed by Denmark, technology for application-level downloading music and gaming
TippingPoint experts would run a variety
promoting the broad development goals Sweden and Canada. protection, and denial of service (DoS) simultaneously based on Intel’s dual-core
of tests and assessment tasks, including
included in the United Nations Millennium In the case of the ratios of broadband mitigation functions. Juniper Networks processors.
network mapping, scanning, password
Declaration through increased access and Internet subscribers to both the fixed and said that these solutions will also ensure An Intel dual-core processor consists of
cracking, and testing on worm attacks.
use of ICTs. mobile Internet subscribers, in particular, business continuity through a bypass VPN two complete execution cores in one
The DOI is the first e-index based on Korea showed conspicuous results. All the connection in case of a network outage. physical processor, both running at the
internationally agreed ICT indicators. It fixed Internet subscribers in Korea are same frequency. Intel dual-core products
groups eleven ICT indicators, such as the connected to the broadband Internet Juniper Networks Displays In the meantime, KCC Information &
Communication and Dacom plan to deploy supporting Hyper-Threading Technology
percentage of population covered by whereas only 52.6% of fixed Internet 40Gbps Interface for Core additional Juniper Networks security can process four software threads
cellular telephony, into the three categories
of “Opportunity,” “Infrastructure,” and
subscribers in Hong Kong, and 40.6% in
Japan, were shown to be using the
Routers appliances to LS Cable’s eight simultaneously by more efficiently using
manufacturing sites nationwide. resources that otherwise may sit idle.
“Utilization.” broadband network. Juniper Networks said last month that it
had successfully demonstrated 40 Gbps
DOI ranking DOI Indicators transmissions by using the new OC- Sun Microsystems Joins in Flash Memory Maker
country ranking country ranking
Categories Indicators weighted 768c/STM interface modules for its T- Busan’s ‘U-Healthcare’ Spansion Listed on the
value series Internet core routers.
Korea (Rep.) 1 Hungary 21
Hong Kong 2 Czech Republic 22 Infrastructure -Proportion of households 1/5
The company also said that the 40Gbps
Japan 3 Poland 23 (1/3) with a fixed line technology is the fastest interface speed
Denmark 4 Malaysia 24 -Mobile cellular subscribers 1/5 available on the market where core Sun Microsystems said on December Spansion, one of the world’s largest
Sweden 5 Chile 25 per 100 inhabitants 20, 2005 that it has signed strategic providers of flash memory solutions, last
-Proportion of households 1/5 backbones usually operate at 10Gbps
Canada 6 Argentina 26 with Internet access at home today. Currently, more than 1,000 T-series alliance agreements with Busan National month held its initial public offering on the
Singapore 7 Mexico 27 -Mobile Internet subscribers per 1/5 University Hospital and Busan Techno NASDAQ of a total of 42.2 million shares
Taiwan 8 Turkey 28 100 inhabitants routers are deployed worldwide to over
-Proportion of households with a computer 1/5 100 customers. Park for the promotion of businesses of Class A stock at $12 apiece.
Netherlands 9 Thailand 29
related with ‘U-Healthcare,’ a regional A joint venture of Advanced Micro
Switzerland 10 Russia 30 Opportunity -Percentage of population 1/3
United States 11 Egypt 31 project launched to provide better Devices and Fujitsu, Spansion is the
(1/3) covered by mobile telephony
largest company in the world dedicated
-Mobile tariffs %
of per capita income
LS Cable Lays Secure healthcare services to the aged people.
Sun Microsystems said the agreements exclusively to developing flash memory
Israel 14 Venezuela 34
-Internet access tariffs %
of per capita income
Infrastructure with Juniper will enable the company to provide products and systems used in electronic
36 Utilization -Proportion of individuals that 1/3 Networks assistance in building a comprehensive devices, such as wireless phones,
(1/3) used the Internet information network necessary for the networking equipment, and automotive
Belgium 17 Peru 37
-Ratio of broadband Internet 1/3 Juniper Networks announced on project’s ubiquitous health care systems, subsystems. The company, which
Spain 18 Brazil 38 subscribers to fixed Internet subscribers
Italy 19 South Africa 39 -Ratio of broadband mobile subscribers 1/3 December 19, 2005 that KCC Information such as tele-monitoring medical service, specializes in NOR flash memory chips,
France 20 India 40 to mobile Internet subscribers & Communication and Dacom have and an industrial base for senior citizen- posted $2.3 billion in revenues in 2004.
7 4 _ January 2006 KOREA IT TIMES KOREA IT TIMES January 2006 _ 7 5
Wireless Mobility Comes of Age Redback Networks Receives Leading Lights
INTEL ‘unwires’ over 300 universities in Asia-Pacific
region through ubiquitous wireless mobility,
Award for Best Investment Potential
revolutionizing e-learning and innovative teaching
practices edback Networks Inc. (NASDAQ: information and full list of award owners.
tudents in Asia Pacific are The convenience and continuous
R RBAK), a leading provider of next-
generation broadband networking
categories, please visit Light Reading
online at http://www.lightreading.com. Safe Harbor Statement under the
Private Securities Litigation Reform Act
systems, today announced that Light About Redback Networks
increasingly able to take advantage Internet access any time and at any Reading has awarded Redback the 2005 Redback Networks Inc., a leading of 1995
of wireless mobility at their location was one of the most significant Leading Lights Award for Best Investment provider of next-generation broadband The statements contained in this press
universities. Recognizing that access to motivators to implement wireless LAN Potential. This prestigious award networking equipment, enables carriers release that are not purely historical are
wireless communications and mobility solutions at Asian universities. recognizes a company that represents the and service providers to build Smart forward-looking statements within the
infrastructure is a key component to foster Respondents felt empowered. They also Paul Otellini, best long-term potential return on Broadband Networks that are personalized, meaning of Section 21E of the Securities
collaborative learning, Intel has unwired felt more hassle-free not having to deal investment by virtue of solid management, adaptive and efficient. The Smart and Exchange Act of 1934, as amended,
more than 300 universities across the with messy cables and plugs. A major product development and market growth Broadband Network enables advanced IP including statements regarding Redback
region, benefiting more than 400,000 inhibitor was the low rate of laptop PC potential. based subscriber services to consumers, Networks’ expectations, beliefs, intentions
students. This signifies a major increase in ownership at many universities. There A staff of more than 20 editors and businesses and wholesale customers. The or strategies regarding the future and
laptop PC penetration, which stood at less were also some concerns about the battery analysts selected this years winners from a company’s carrier-class, consumer-scale including, without limitation, statements
than 1 percent in 2003 but now exceeds 10 life, stability of the wireless infrastructure Cost is still seen as a major barrier to fiercely competitive field of submissions, SmartEdge product family combines regarding Redback as the winner of the
percent on most of these campuses, and the overall connection speed. upgrade existing IT infrastructure. In low- said Scott Raynovich, Editor-in-Chief of advanced subscriber management, carrier- 2005 Leading Lights Award for Best
according to Intel research. Wireless mobility solutions contribute income countries, many universities do not Light Reading. Our selection of Redback class IP edge routing and highly scalable Investment Potential and whether this
The drive by Intel, the world’s largest to better education through enabling have the available funds to implement for the Best Investment Potential Award Ethernet aggregation functions. In award represents the best long-term
chip maker, towards supporting wireless innovative teaching practices. Students wireless LAN. However, the survey also recognizes Redback’s continued conjunction with the NetOp?? Element and potential return on investment by virtue of
LAN adoption at the region’s universities were very excited about the many provided many examples where deploying commitment to excellence and providing Policy Manager platforms the SmartEdge solid management, product development
is part of the company’s Mobile Initiative possibilities e-learning offers to them. Wi Fi based networks at universities long-term return for investors. family provides a powerful and flexible and market growth potential and whether
for Learning in Education. The program They were motivated by the ease of brought down the overall cost of the IT Leading Lights Award recipients were infrastructure solution that enables this award influences long-term return for
was launched in 2004 and aims to accessing information and teaching infrastructure. With emerging technologies honored during a special gala held on delivery of next-generation Broadband IP investors. All forward-looking statements
accelerate the rollout of wireless networks materials through wireless networks, such as WiMax, most of the Asian December 14 in New York City. Redback services. included in this document are based upon
and mobility based learning solutions to allowing them to manage their time more universities with large campuses will also President and Chief Executive Officer Founded in 1996 and headquartered in information available to Redback
effectively integrate information and effectively. However, e-learning initiatives see tremendous gains in terms of cost Kevin DeNuccio accepted the Leading San Jose, Calif., with sales and technical Networks as of the date hereof, and
communication technology in Asia’s are often held up by conservative and optimization and efficiency. Lights Award on the company’s behalf. support centers located worldwide, Redback Networks assumes no obligation
education systems. This is critically sometimes outdated teaching traditions, “To boost Asian countries’ global This award continues to validate Redback Networks maintains a growing to update any such forward-looking
important for the development of students’ which do not provide incentives for trying competitiveness, governments must take Redback’s growth in the broadband edge and global customer base of more than 500 statements.
skills for the knowledge-based economy. new approaches to education. the lead with education-related policies router marketplace and further illustrates carriers and service providers, including Forward-looking statements involve
Through Intel Centrino mobile “Nothing is more critical to Asia’s that set the stage for growth. Intel is our success in a highly competitive major local exchangecarriers (LECs), risks and uncertainties, which could cause
technology, Intel has enabled the future than education,” said John Antone, championing some of the region’s most telecommunications landscape, said Marco inter-exchange carriers (IXCs), PTTs, actual results to differ materially from
introduction of smaller, lighter, more Vice President, Intel Corporation’s Sales strategic education initiatives through Wanders, chief marketing officer at service providers and ISPs. For more those projected. These risks and other risks
powerful wirelessly-enabled laptop PCs and Marketing Group and General collaborating with local governments, Redback Networks. We are truly honored information, visit Redback Networks at relating to Redback Networks’ business
that are particularly suitable for students. Manager, Intel Asia-Pacific. “Intel’s NGOs and academic institutions,” Mr. that Light Reading has selected Redback http://www.redback.com. are set forth in the documents filed by
Connecting to wireless Internet access Mobile Initiative for Learning in Antone added. for the Best Investment Potential Award. REDBACK and SmartEdge are Redback Networks with the Securities and
points on campus greatly enhances their Education will drive the adoption of Every year, Intel invests more than Light Reading established the Leading trademarks registered at the U.S. Patent Exchange Commission (SEC), specifically
ability to learn, do research and share wireless infrastructures and mobility in US$100 million across 50 countries Lights Awards in 2004 as an important and Trademark Office and in other the most recent report on Form 10-K,
information. Asia which can help universities create a worldwide to implement programs that annual industry awards program designed countries. NetOp is a trademark of Form 10-Q, Form 8-K, Redback’s
A recent survey supported by Intel with world-class education environment and foster innovative teaching practices, to recognize top public and private Redback Networks Inc. All other products Registration Statement on Form S-3 (File
360 Asian universities also identified the train talents with an international extend learning beyond the classroom, companies and their executives for or services mentioned are the trademark, No. 333-114352), and amendments
motivators & barriers to implement perspective, thereby accelerating their reward student achievement and inspire outstanding achievements in the service marks, registered trademarks or thereto, and the other reports filed from
wireless LAN and e-learning solutions. countries’ economic development.” future technologists. telecommunications industry. For more registered service marks of their respective time to time with the SEC.
7 6 _ January 2006 KOREA IT TIMES KOREA IT TIMES January 2006 _ 7 7
Historic Opening of First Direct
Commercial Phone Links Between the
Hundreds of South Koreans held a ceremony on Dec. 28, 2005
in North Korea with the North’s officials to mark the opening of
the first direct commercial phone links between the two divided
The phone connection between the North’s border city of
Gaesong and South Korea marks another step forward in relations
between the two Korean states which are still technically at war,
with no peace treaty singed at the end of the 1950-53 Korean War.
The opening of the first direct commercial phone links between
Gaesong and South Korea appears to serve as an important turning
point for the IT collaboration between North and South Korea. etc. following Gaesong industrial complex’s direct telephone as
Through his congratulating remarks, Mininister Chin Dae-je, well as FAX opening”, proposing that Let’s discuss all matters in
MIC (Ministry of Information & Communication) said: “Sufficient depth by meeting frequently with each other between North and
consultation is necessary to enlarge exchange cooperation about IT South Korea.
field at large with North Korea such as Internet service offering
“Full-scale Terrestrial- mobile broadcasting through 7 video
channels and 13 audio channels.
wave DMB phone era” Moreover, this SPH-B2300 has equipped
with cutting-edge function such as ‘TV-
Terrestrial-wave DMB phone era was Out’ function, which can see DMB
thrown open as Samsung Electronics and broadcasting, letters and photos by linking
LG Electronics launch their terrestrial- to TV.
wave DMB phones altogether. Samsung Electronics is planning to
Accordingly, ground wave DMB age lead world DMB phone market with the
both nominally and virtually to be able to most cutting-edge DMB technology and
see and listen TV broadcasting on the move convenient & polished design.
as well was opened. LG Electronics’ groundwave DMB
In the case of Samsung Electronics, this phone (model name: LG-LD1200) can see
company launched its terrestrial-wave DMB phone (model name: & listen TV over three & half hours the longest by way of
SPH-B2300) through KTF in a price range of 600,000 won level. terrestrial-wave digital TV reception chip and embodies high
This product allows to be able to enjoy high-resolution’s resolution by equipping mobile XD engine.
IT industry export transition over recent 10 years
IT Export (unit:$100 million, %)
The whole export
IT export increase rate
The opening ceremony of the 2006 securities futures market
7 8 _ January 2006 KOREA IT TIMES
40 IT standard terminologies added Status of Standardization and Related Issues
TTA has added 40 IT standard terminology such as MPEG-A MAF already established the standardization work in contents of the MP MAF is coming to the fore. Mainly, it was
asymmetric cryptosystem among a total of roughly 710 IT the three fields such as Music Player MAF related current digital hotly debated whether or not to adopt the standard algorithm. And
lemmas the 2nd IT Terminology Standardization Review audio, Photo Player MAF related digital image and also Video also, which IPMP should be selected between MPEG21 IPMP and
Committee digged out newly. Player MAF related digital video. The present MAF consists of MPEG4 IPMP.
These 40 terminologies include biometric template pro- two parts: part 1 is PDTR for ISO/IEC 23000-1 and the other is Currently, among three file structures of MP MAF, the discus-
tection, Motion Capture System: MCS, Internet Addiction 23000-2:2005 FDIS. The former is the documentation for the sion reached consensus at a certain level, such as in the case of
Disorder, ano Silver Technology and so forth. introduction of MPEG-A and explained the MAF objective and its Single Track MAF with MPEG-7 Meta data. It adopted MPEG4
Selected all lemmas as well as standard terminologies method of standardization. And part 2 is the Final Draft IPMP and the other two adopted MPEG21 IPMP, but to make sure
are serviced through TTA homepage (http://word.tta.or.kr) International Standard (FDIS) for the Music Player MAF. On the it will be determined depending upon upcoming standardization
or associated institutions’ terminology dictionary web so other hand, in order to draw up the regulations (ISO/IEC 23000-3) activities.
that these terminologies can contribute to right IT technol- for the Photo Player MAF, presently the Working Draft (WD) is
ogy terminology use. already completed and the preparation of the Committee Draft 3. Photo Player MAF
(CD) is under way. Photo Player MAF (hereafter, PP MAF) is processed in the
MPEG-7 video group apart from MP MAF, and like picture 3, they
1. Music Player MAF discussed the idea of JPEG Image and EXIF for meta data which
Music Player MAF (hereafter, MP MAF) is the standardization are widely utilized in MPEG 4 file format. And also they are inves-
made for application domain of mp3 (MPEG-1 Audio Layer III) tigating new integrated standardization in which MPEG-7 MDS
players and also has the same encoder system structure of picture and visual narrator are combined and can express more and varied
2. Basically, it has the same structure of mp3 on mp4. In order to meta data. In addition to this, they are also investigating various
record various related information for the applicable audio con- ideas for image clustering for the purpose of effective administer-
tents, it has a structure that is to be filled with JPEG Image and ing of images and also for indexing. Currently, the WD has been
MPEG7 metadata. Currently, MP MAF is in the state of Final completed at the Busan Conference last April and now the prepara-
Draft International Standard (FDIS) and is additionally proposed tory CD is on the way.
with protected music player MAF and synchronization of multiple
[MPEG] Step forward to real life for the MPEG-A MAF
MPEG-A (MPEG-Application, ISO/IEC 23000) is the title
JPEG data to MP3 tracks in Music Player MAF for another profil- Illustration 3: Structure of Photo Player
of the new standard activity followed by the MPEG-1, 2, 4, 7,
4. Video Player MAF
21 that are executed in the current MPEG. Applications such
as the MPEG-1, 2 and 4 are aimed at the compression of Illustration 2: MPAG-A concept This is one of the application formats which has been newly-
audio and video, while MPEG-7 is recorded meta data for introduced for the contents service of the screen image. And now
media data. and MPEG-21 is defined by a framework for the 2. Protected Music Player MAF the working process for the technology utilization is under way,
entire process of formation, distribution, consumption of digi- The brisk standardization for Protected Music Player MAF is such as MPEG-4 ISO Media File Format, MPEG-4 Advanced
tal contents. The standardization of the activities is repeatedly being stepped up because the necessity of safe management of the Video Coding, MPEG-4 High Efficiency Advanced Audio Coding,
carried out for the acceptance, analysis, definition and expan- MPEG-7 Metadata and JPEG ISO Standard. It looks like the
sion of the concept. And also the necessity for new technolo- Video Player MAF is following a similar pattern in the standard-
gy, development, and investigation requires the continuous ization process of the Music Player MAF. Therefore, it is classi-
processing of new demands, while retaining most of the stan- vices to fulfill market needs. Rather than defining and developing fied into Video Player MAF and the protected Video Player MAF.
dard activities. new technologies, a new format, which is called the Multimedia And the DRM system of the protected Music Player MAF will be
While the expansion of the application fields offers many Application Format (MAF), is defined combining two parts: name- imported into the protected Video Player MAF.
different approaches depending on continuing standard activi- ly, properly upcoming developed technologies and currently uti-
ties for a long period of time, creating the standardization lized technologies. Future Prospects
itself is very complicated and also becomes very broad in When one looks at the entire MPEG standard in horizontally Far from the existing standardization activities, the standardiza-
scale. Actually, it is not easy to apply to industrial fields. illuminated graphic display, the applicable format should be for- tion activities for the MAF of the MPEG-A provision formulation
Since the standardization activity is continuously repeated matted by selecting and gathering necessary profiles and technolo- is processing rapidly in the highest speed application field. For the
every 3- 4 years, it has happened that the technology which gies which are from the individual standard pattern. The picture 1 related activities with Protected Music Player MAF, although a
the industries need cannot be offered in adequate time. In is showing that how the MAF concept of MPEG-A is defined. great deal of discussion could ensue regarding the various protect-
order to overcome the differences between the development Such MAFs of MPEG which are combined with various standard ed issues; various multimedia application formats will be intro-
of the idealistic standard technology and that required for the technologies have not only credibility but also utilize reference duced in future due to the MPEG effort in order to offer the actual
practical use in real business life, MPWG-A is primarily aim- software, and finally can be secured mutual operation under the and necessary standardization technology. And we can expect new
ing to develop some of the multimedia applications or ser- application level. standardization activity closely related to our everyday lives.
8 0 _ January 2006 KOREA IT TIMES
IT Essay Digital Hallyu (III)
Time to Rethink “Dynamic Korea” Brand By Cho Yong-jun
the second consecutive year from 9th in nation’s total exports. In this vein, “Digital The same rule is applied to dispatch of The popularity of Korean dramas, NHK is widely known to have raked in
Executive Director, Division of 2002 to 10th in 2003, and further to 12th Hallyu” can be the new national brand Internet youth volunteers to foreign movies and ballads is based on Asian more than 400 billion won.
Public Relations & Projects of the in 2004. strategy. countries and an invitation and training emotion and people’s sense of value. In addition, contents of popular culture
PR Business Team, KADO program for overseas IT experts. Accordingly, Hallyu has a limitation from are fragile due to illegal duplication.
Now, it seems to be clear that the Then, what is the conception of Digital
nation should seek a proper national brand, Hallyu? It is not so difficult. Residents in developing countries its birth, confining to Northeast Asia and However, the profit structure of Digital
The following is the third in a six-part instead of “Dynamic Korea.” Digital products, technologies and where Korean youth volunteers engaged in Southeast Asia. It is well mirrored by the Hallyu has little irrational factors.
series of articles on “Blue Ocean of Digital Anycall of Samsung and Whisen of LG services whose superiority has been IT service activities and foreign fact that Hallyu has failed to advance into Although the import dependency ratio of
Hallyu (the Korean Wave)” contributed by now sweeping the world market are not recognized in the world is the Digital government officials, journalists and the Middle East and India, even though the core parts is very high, the ratio of
Cho Yong-joon, Executive Director, national brands or images representing Hallyu. And the Digital Hallyu strategy is experts who visited Korea and learn regions are included in Asia. operational profits to sales for flash
Division of Public Relations & Project of South Korea but corporate brands. to let foreigners see, feel, like, use and information technology in Korea are to be However, Digital Hallyu is fully freed memory of Samsung Electronics reaches
the Korea Agency for Digital Opportunities Of course, they affect greatly the purchase. linked with “pro Korean personnel from regional feeling and people’s sense as high as 60%.
and Promotion (KADO).... Ed. formation of national brand, but corporate It is very important that services are networks.” of value. Accordingly, there is no reason It means that Samsung Electronics
trademarks themselves could not become a included in the objects of Digital Hallyu, When Korea’s IT enterprises advance to confine its scope to Asia. earns 60 million won if it sells 100 million
ince 2002, when Korea hosted the national brand. along with relevant products and into relevant countries, they can make Like Asians, Islamic and other people won worth of flash memory products.
S football World Cup Finals, the Seoul
government has pushed ahead with
the campaign to promote the national
National brand is the total perception
held by foreigners about a specific country
or the people living there. If national brand
For example, the Korea Agency for
Digital Opportunity & Promotion
“soft landings” through the strength of
In addition, there is Digital Hallyu from
the service aspect. It is related to
in the world have to listen music, see TV,
eat foods and need air conditioners.
Products, technology and service are
objects for use, not those for
Fifth, Hallyu began by chance, but
Digital Hallyu started from a strategic
thought. Nobody knows exactly how to
start Hallyu and what appearance Hallyu
image under the title, “Dynamic Korea.” is good, products manufactured in the (KADO), an institution in charge of easing
However, I have a feeling that the country are recognized favorably. information gaps between Korea and prevention and removal of reverse understanding. Accordingly, the scope of had in the initial stage.
government’s Dynamic Korea campaign Namely, national brand is asset, foreign countries, is carrying out a variety function of digital. Digital Hallyu is the whole of the globe. But, Digital Hallyu is a strategic
has failed in acquiring popularity as a competitiveness and origin of profit of a of international cooperative projects. In most countries, about 10 percent of Thirdly, Hallyu is centered on popular conception stemming from a strategic
national brand and enhancing the degree of country. In particular, the strength of Among its projects are dispatch of people do not use Internet, so they do not culture, but Digital Hallyu is oriented on thought. For instance, the theoretical basis
recognition among foreigners. national brand has become greater as the Internet youth volunteers to foreign know about the reverse functions of the infrastructure and home appliances. of Digital Hallyu is the Korean
Considering that Koreans and Korea gap of quality between products is countries, construction of a center for Internet and the reason why such Namely, people can live without government’s IT839 strategy, which
are dynamic and it is very important for narrowing due to rapid technology transfer developing countries’ access to phenomenon occurs. popular culture, such as TV drama, organically connects value chains of the IT
Koreans, but it has nothing to do with and fierce competition. information, an invitation and training In such cases, we can transfer movies, or songs. industry, such as service, infrastructure
foreigners, the Dynamic Korea seems to be As I stressed above, we should seek the program for overseas IT experts. consulting services and know-how we Of course, the 21st century is the and manufacturing.
unsuited for the national brand. “Blue Ocean” strategy for new growth Since 2002, KADO built seven centers already experienced to them. It is also a “century of culture” and the importance of Accordingly, we should seek a new
From the other point of view, it could engines among those with the highest for developing countries’ access to very important Digital Hallyu. “soft power” is becoming greater. national brand strategy from the dimension
lead to a negative image that the political possibility to do well in the future. The information each in Cambodia, Romania, Then, what is different between Digital However, popular culture itself is not an of Digital Hallyu.
situation and environment on the Korean same rule is applied to the national brand Vietnam, Egypt, the Philippines, Bulgaria Hallyu and Hallyu? essential condition for living.
peninsula is dynamic, and thus unstable. strategy. It will be no use if nobody and Laos. The center will also be built in Firstly, Hallyu is centered on human However, the situation is different for
For instance, a survey conducted by acknowledges us, even if we insist that the Tunisia in Africa. beings, but Digital Hallyu is oriented on Digital Hallyu, such as infrastructure.
Korea International Trade Association of national brand is good. It goes without saying that all product, technology and service. Let’s suppose South Korea was without
its 457 member companies at the end of For instance, Japan recently changed its equipment necessary for the construction Hallyu is a phenomenon of several stars the Internet. How many days could we
2004 showed that 53.2 percent of the national brand from “Made in Japan” to of a center for developing countries’ and its structure depends on popularity of endure?
respondents replied, “We received “Neo Japanesque,” under the judgment access to information, consisting of a the stars. Accordingly, it is difficult to Accordingly, Digital Hallyu centered
negative responses in overseas business that the existing brand has a limit in computer education room, an Internet guarantee stability of profits persistently. on infrastructure, communication,
activities due to the national image.” competing with foreign rivals. lounge, and a seminar room, are Korean- On the other hand, Digital Hallyu broadcasting and home appliances is more
It means that over half of Korean Accordingly, South Korea should seek made products. focused on product, technology and fundamental and useful than Hallyu.
companies experienced “Korea Discount” a dynamic national brand among digital What thoughts do the users of the service is more stable than the star- Fourth, the profit structure of Hallyu is
owing to bad or low national image. products, technologies and services that centers in the developing countries have, oriented Hallyu in terms of marketing. less rational and scientific. For instance,
In addition, the brand value of South we are now doing very well with. while using Korean-made products? It is Secondly, Hallyu is focused on Asia, with the Korean TV drama, “Winter Love
Korea has been on a steady decline. The Digital products, technologies and the Digital Hallyu from a viewpoint of but Digital Hallyu is centered on the whole Song,” Korea Broadcasting System (KBS)
brand value of South Korea dropped for services now account for 40 percent of the service. of the global village. earned about 200 billion won in Japan, but
8 2 _ January 2006 KOREA IT TIMES KOREA IT TIMES January 2006 _ 8 3
OUTLOOK / 2006 Top 10 Predictions in Korea
2005 Predictions Review 2005 Predictions Review
1. 2005 IT spending growth: 6. Enterprise Infrastructure Hardware .
.Global : 6.1% -> 6% .Large Enterprise will lead the Market,
.Local : 5% -> 3.2% .Scale Out Architecture,
.Convergence of SAN and NAS will be Emerging
2. Everyone’s trying to explain “what’s next?” 7. Fixed-line Communications .
.Dynamic IT .Bigger pipe in access area,
.triple play market,
.VoIPwill go mainstream
3. Focus on Utility & Outsourcing in Services
.Accelerate their efforts to catch up outsourcing market opportunities 8. Mobile Communications .
.Focus on the business value improvements .WiBrowill become a hot issue ,
.3G will go mainstream
4. New Paradigm in Software
.No killer app, but killer platforms 9. Mobile Devices .
.Dynamic Infrastructure .Slow down overall ,
.Utility based / SaaS .WCDMA device will be continued to stagnate ,
.New services such as DMB and Wibro
5. Consumer Devices
.Converged Devices, 10. Emerging Technologies .
.Digital Display Market to be Enlarged, .RFID meets Sensors,
.Demand to be Still Stagnating .Mesh Networks,
8 4 _ January 2006 KOREA IT TIMES KOREA IT TIMES January 2006 _ 8 5
What's New in 2006?
Poland Christmas Party,
What's New in 2006?
the New Year in. First off, KOVA (Korea corporations as well as the fastest grow-
shared together with journalists Venture Business Association) held a ing solution provider for the SME market.
commemorating event to celebrate the
Association’s 10th anniversary on Dec. 7 SAS Korea performance
at COEX, Seoul, while deputy prime announcement in 2005
minister Oh-Myung, Minister of Science and 2006 strategies Stricter Punishment for Illegal Spam Expanding Number Mobility
& Technology and Chin Dae-je, Minister SAS Korea (www.sas.com/korea) held
of Information & Communication, and a a press conference regarding “SAS Korea Anyone who sends unlawful e-mails of a commercial Number mobility between second generation
number of IT field leader CEOs were performance announcement in 2005 and nature will face fines of up to 10 million won or impris- (CDMA)-third generation (W-CDMA) mobile communi-
present. Korea CIO Forum and Korea IT 2006 strategies” on Dec. 15 in its new onment of up to a year. The same penalties will also cation service will be improved in 2006. As number
Leaders Forum also held their events Gangnam building office. Country apply to those spam senders who fabricate their identi- mobility between second generation-third generation,
bidding the old year out and the New Manager Sam Cho, SAS Korea, said: “Its ties. Until now, such offenders were only fined. will be introduced as from April 2006, while mobile
The Polish Ambassador to Korea and Year in on Dec. 15 at the Westin Chosun goal is to be recognized as the #1 communication service selection rights will be expanded.
Mrs. Andrzej Derlatka held a Christmas and at the Koreana Hotel on Dec. 20 Enterprise Intelligence Platform in our Ban on Unlawful Use of Digital IDs
party at their residence on Dec. 20 by respectively. chosen markets”. 'NEP' Markings to Distinguish High-Tech Products
inviting a group of journalists in Seoul as Anyone who misuses a digital ID other than for its
well as their friends. Hungarian Amb. & Kazakhstan fates the country’s Mobility, security, and convergence original purpose will face a maximum 10 million won The government has announced that a new quality
Mrs. Istvan Torzsa, Jang Song-Hyon, Independence Day The latest hardware, as well as soft- fine or a one-year jail sentence. assurance scheme called 'NEP (New Excellent Product)'
president, S. H. Jang & Associates Inc., ware for the sake of incorporating Mobile came into effect starting January 1 this year.
and counselor Marek Machowski, Edge was recently announced by Compulsory Insurance for Certification Authorities The government backed initiative accords NEP
Embassy of the Republic of Poland ARUBA NETWORKS (www.arubanet- markings to products that have utilized new technologies
shared the joy of the Christmas holiday works.com), the Mobile Edge Company. Beginning in July 2006, all certification authorities and passed quality assurance tests by the Korean Agency
season, along with a group of journalists The mobile edge is a new evolutionary must be insured for the speedy compensation to those for Technology and Standards and the Radio Standards
including Ms. Monica Jung, president of architecture designed to effectively online users who have incurred losses due to accidents Laboratory.
the Korea IT Times. address three top concerns of IT man- such as a system breakdown. Once a product is given a NEP marking, it is entitled
agers — mobility, security, and conver- to various benefits, including 20% quotas in public pro-
3Com Korea moves gence. Directory Service for Mobile Phone Numbers curements.
to Seoul’s Gangnam area
To celebrate the company’s relocation On the occasion of the country’s LEXMARK Seeks to Capture Beginning in February 2006, telecom operators must A New Initiative Goes Into Effect to Assist More Ventures
to Seoul’s upmarket Gangnam district, Independence Day which falls on Dec. Corporate Market provide directory service for mobile phone numbers in
3Com Korea Ltd. held a welcoming party 16, Kazakhstan Amb. & Mrs. Darkhan With high-powered and reasonably- addition to fixed lines. They should deliver the service by A new government initiative came into effect on
for its customers as well as journalists on Berdaliyev held a celebratory party at the priced products, LEXMARK Korea choosing any of the following media: online voice, January 1, 2006 to provide financial assistance to more
Nov. 4 at the company’s new building Grand Hilton Hotel on Dec. 16 while a (www.lexmark.co.kr) began the compa- Internet or phone books. venture start-ups. According to the plan, the number of
(7/F Dabong Tower. #890-12, Daechi- group of the Seoul diplomatic corps was ny’s full-scale capture of the corporate ventures eligible for the assistance will be increased to
dong, Gangnam-gu, Seoul 135-280). present including U.S. Ambassador. market with its color ranger printer of Korea to Adopt Two-label 'kr' Domain Names include those that have been in operation for less than
Following this, a press conference to Alexander Vershbow, Amb. Ngwey C522n as well as C524n and middle & five years since establishment. Until now, venture firms
present TippingPoint X505 to the journal- Ndambo Christophe of the Democratic low-price model mono ranger printer Domain names consisting of two parts (technically of less than three-year-olds were only eligible for the pro-
ists was held recently which benefits Republic of Congo, Amb. Zoran Veljic of such as T642, T644, E240, and E342n. labels), and those ending with 'kr', are scheduled to make gram.
enterprise-grade IPS protection as well as Serbia & Montenegro, and Amb. their first appearance on the Internet during the first half
cost savings, prioritizes business critical Guillermo Quintero, etc. Rising company of this year. So far, 'kr' domain names consisting only of Wireless station establishment restriction mitigation
applications and improves productivity. culture activity support three parts have been available.
For further information, visit SAP Korea Aims to be Most Companies’ culture activity support is In the case of wireless stations to provide communi-
www.3com.co.kr On the other hand, Trusted Vendor on the rise as recently Lexus held the Electricity Bills to Rise cation service such as Internet from the second half of the
3Com Korea and Intel Korea held a bid- On the occasion of its 10th company’s annual Toyota Classic concert year, wireless station opening is allowed for foreign-
ding party for journalists to see the old Anniversary, SAP Korea (www.sap. as part of its culture contribution business This year, electricity bills will rise by 1.9% on aver- nationality aircraft and shipping and its overhaul also is
year out and the new year in on Dec. 15 com/korea) has committed to becoming and a number of companies at home age. While electricity bills for households using less than exempted. In addition, as in the case of portable-model
and Dec. 16 respectively. the easiest and most trusted vendor to sponsored the concert of the Paul Mauriat 200kW and those for farms will remain unchanged, simple wireless stations whose installation construction
partner with, and top IT company to work Orchestra held over two days from Dec. households using more than 200 kW will see their bills is not necessary, it allows being able to establish, life-
Festive Season Overflowing with in 2015. In a press media reception 16~17, 2005. On one hand, TaTa Daewoo increase by 1.8%. In addition, electricity bills charged to closeness type wireless demand, which is expected to be
With Exciting Events in Seoul presentation, CEO & president EN Han, launched the company’s three new medi- manufacturing and other industrial facilities will rise by facilitated.
December was a month which was SAP Korea, said that SAP is the No. 1 um-size trucks such as 4.5t, 5t and 7.5t on 2.8%, while those for spare electricity will increase by
full of events bidding the old year out and business solution provider for the top 100 Dec. 23, 2005. 9.7%.
8 6 _ January 2006 KOREA IT TIMES KOREA IT TIMES January 2006 _ 8 7