Korea ICT Industry
2010. 11. 24 Taewha HONG
Contents
1.
ICT Status in Korea
2.
Key Success Factors
3.
ICT for Sustainable Growth
Appendix: Introduction of ETRI
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1. ICT Status in KOREA
ICT and Economic Growth ｏ ICT Industry is at the core of Korean Economy − ICT Exports: $120.9 bil. (2009) − Share In Total Export: 33.3% (2009) − Contribution Rate to the economic growth: 23.4% (2009) − ICT helped Korea overcome 1997 financial crisis and recent economic downturn
ICT Industry Export USD (Bil.)
500 400
50 38.1
36.6
35 31.1
33.3
40
300
30
200
20
100
10
0
(%)
Total Export ICT Industry Exports Share(%)
0 2005
2006
2007
2008
2009
Source: National IT Industry Promotion Agency, Korea (2010) -4-
Flagship Products ｏ Flagship products are Memory Semiconductor, Display Panel, and Mobile Handset
Global Competitiveness of Korea ICT Industry M/S 60%
40%
NAND Flash ($13.6 B)
SEC, HYNIX (50.5%)
LCD-Panel ($64.2 B)
SEC, LGD (52.5%)
20%
Share of Korea (‟09, Production)
DRAM ($22.7 B)
SEC, HYNIX (55.4%)
Volume of Global Market (‟09)
Handset FPTV (1,140 M units) ($96.4 B)
SEC, LGE (30.2%)
SEC, LGE (35.7%)
Source: Gartner, Displaysearch -5-
ICT Development Path of Korea ｏ During last 30 years, Korea‟s ICT has been grew up into the first-level in the world for a short period and draw up the growth of national economy
1980
1989 1990
1998 1999
2003 2004
2008
Establishing selfsupporting foundation
Ensuring global competitiveness
Overcoming economic crisis
Leading global market
Localization of foreign equipment
Overseas original technology marketing
Short period, technical R&D
Obtaining individual original technology
TDX Development Establishment of basic communication infra
TDX • Estimated total sales : 5 Bil. euro (by 2010) • Solution of domestic wired market blocking
CDMA commercialization Rapid growth of mobile communication
Mobile Phone
Mobile Service
• Global Market • Subscriber 43.49mil Share : rank 2 (Diffusion : 93.2%) (24.8%) • Amount of export : $18.6bil('07)
Global economic crisis Introduction of R&D competitive principle
High-Speed Internet
• • Subscriber 14.7mil (Diffusion of Households: over 90%) •
IT 839 strategy Obtaining original
technology: WiBro, DMB
WiBro
DMB
• Adoption as Europe Adoption of 3G standard(ETSI)(„05) mobile as ITU • Promotion of people's Standard convenience through Start of domestic free T-DMB equipment export
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Primary ICT Service results of Korea â–Ą Commercial service year of ICT in Korea The first service in the world
CDMA
High-speed Internet
DTV
WCDMA
DMB
E-government
1996
1998
2001
WiBro HSDPA
2003
2005
2006
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Infrastructure â–Ą Korea is at global top-level in ICT infrastructure and service penetration Status of Korea ICT Infrastructure Category Broadband Internet Services
subscribers(1,000 households)
2004
2005
2006
2007
2008
2009
11,921
12,190
14,042
14,709
15,474
16,348
25%
25%
29%
31%
32%
34%
31,580
33,880
34,910
35,590
36,190
36,580
70%
73%
75%
76%
76%
77%
36,586
38,342
40,197
43,497
45,606
47,944
subscribers %
77%
80%
84%
90%
95%
98%
Transaction Volume (Trillion KRW)
314
358
413
516
630
671
2,427
2,674
3,591
4,470
5,260
5,921
subscribers % User(1,000 persons)
Internet User % Mobile Phone services
e-Commerce
subscribers(1,000 persons)
Internet Banking Subscriber (10,000 persons)
Source: Korea Communications Commission, Bank of Korea -8-
Internet Usage Environment ｏ Korea is ranked at the top of the Internet Connection Speed and High Broadband Connectivity areas Average Measured Connection Speed (Q2 2010)
High Broadband Connectivity (Q2 2010)
Rank
Country
Avg. Mbps
Rank
Country
% above 5 Mbps
1
Korea
17
1
Korea
75%
2
Hong Kong
8.6
2
Japan
60%
3
Japan
8.0
3
Netherlands
49%
4
Romania
6.8
4
Romania
48%
5
Netherlands
6.5
5
Hong Kong
46%
6
Latvia
6.3
6
Latvia
43%
7
Sweden
5.5
7
Belgium
40%
-
Global
1.8
-
Global
22%
Source: Akamai, ‘The State of the Internet’, 2nd Quarter, 2010 Report -9-
Korea’s Position in Global ICT Indices □ Korea is top-ranked in major ICT Indices ｏ E-Government Development Index [UN, ‟10]: #1 Korea (/192 Countries) ｏ E-Participation Index [UN, ‟10]: #1 Korea (/192 Countries) ｏ ICT Development Index [ITU. ‟10]: #3 Korea (/159 Countries)
ITU Development Index (ITU, 2010) Internet Household
Mobile Broadband
Broadband Subscriber
Country
%
Rank
Country
%
Rank
Country
%
Rank
Korea
94
1
St Vincent & the Grenadines
133
1
Sweden
41
1
Iceland
87
2
Luxembourg
83
2
Denmark
37
2
Netherland
86
3
Japan
76
3
Netherland
35
3
Sweden
84
4
Korea
71
4
Switzerland
34
4
Norway
84
5
Singapore
65
5
Korea
32
7
Proportion of households with Internet
Mobile Broadband subscriber per 100 inhabitants
Fixed Broadband subscriber per 100 inhabitants
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2. Key Success Factors
Key Success Factors
Government
Industries
Key Success Factors
Introduction of Competition Incentives to encourage Investment in New Services Provision of low cost PC & ICT Training for 10 million citizens
Intensive & strategic investment in Broadband and CDMA Promotion of e-commerce ICT adoption by traditional industries
Users
Enthusiasm for Education, New Tech and Devices Dense Residential Environment (Apartment Complex)
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Technical Issues ｏ Project planning and strategy − HDTV : 3 years planning, exact trend forecasting ｏ Role sharing of R&D strategic plan High Digital Contents S/W solution N.G. Battery Intelligence Robot Future Automobile
Technology Maturity
Digital TV Display Intelligence Home Network N.G. Semiconductor N.G. Mobile Communications
Private + Government initiative
Bio tech
Government initiative
Low Low
Private initiative
National capacity
High
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Market Issues ｏ R&D investment & commercialization plan ※ Terrestrial DMB: R&D, service plan, standardization ※ Intelligence Robot: strategically drive for initiative
ｏ Active participation of manufacture and supplier ※ Handset: co-work of part manufactures and assemblers
ｏ Market forecast ※ TFT-LCD: aware of the limitation of CRT, aggressive investment ※ System IC: identification the need from change of paradigm ※ International standard: international std. for global market
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Management Issues ｏ Strong policy by government ※ TDX: committed by suppliers, driven by government
ｏ Consistent and constant policy ※ DRAM: 4M(‘86)-16M(89)-64M(‘91)-256(‘93)
ｏ Chain of Government–Institute-University-Manufacture-Supplier − Government: coordination, standardization − Institute and University: core technology, test evaluation, IPR − Industry: commercialization ｏ Competition and cooperation − Remove duplicated investment, uncertainty
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3. ICT for Sustainable Growth
Green ICT □ Green ICT Productivity ｏ ｏ ｏ ｏ ｏ
Cyber meeting Transportation Information Systems Electronic Document Systems Cloud Computing Smart Grid & Renewable Energy Sources
Workplace Zero Carbon Commuting Reducing Paper Consumption Telecommuting Bicycles Netbook & e-Paper
School
Company
Realize Eco-Friendly Classroom
Provide Environment-Friendly Products and Services
Digital Textbook Electronic Blackboard IPTV
Low-power LED laptop Solar-powered Mobile phone
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ICT Convergence â–Ą Convergence between ICT & other Industries Automobile
Construction
Medicine
ICT
Shipping
Logistics
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Future Growth of ICT Future Growth of ICT
Past Growth
Future Growth
Exploit Environment
Protect Environment Stimulate Economic Growth
Paradigm Shift SW Based Convergence IT Utilization
HW Driven
 Convergence btw. ICT & other industries based on S/W development and increased ICT utilization across all industry sectors
Strategic Goals of Korean Government Convergence SW ICT HW
Creating 10 ICT-converged Industries Promoting SW Companies with Global Competitiveness
Broadcasting & Communications Internet
Providing Global No. 1 Service by Next Generation Network Building more Secure and faster Internet Environment
Strengthening the Initiative of Mobile Phone, Display Panel, and Semiconductor Promoting Equipment Industries
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Appendix: Introduction of ETRI
About ETRI: General Information ｏ Government funded, Independent R&D organization ｏ Established for the ICT R&D in Dec. 1976 ｏ 11 Lab. Buildings in 342,814m2 of Daejeon Campus ｏ Economic effects for 30 years: 104.57 Trillion Kwon
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Vision and Management Strategy
Vision
Goal
Smart & Green Technology Innovator
INNOVATION National Strategic Technology
INTELLECTUAL ASSET IPR maintenance
INDUSTRY TECHNOLOGY Commercialisation
Development World Class technology
International Standard Patent
Technology Transfer
<Innovation>
<Intellectual asset>
<Industry>
Creative Management with Constant modification and Innovation
Strategy
Planning System Global Open between Creation R&BD Platform and Innovation
New IPR Biz Strategy
New Tech Transfer Biz called “Eco-System”
Innovative Personnel Development
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Personnel, Budget & IPR [2006. 12. 31. 기준]
[March 2010]
Government funded projects:
$539 million USD
79.8%
Industry funded projects:
5.0%
Government research grant:
6.5%
Royalty & other income:
2007
8.7%
2008
2009
Total
Patent Application
3,326case
3,484case
3,986case
30,725case
Int’l Patent
US$50M
US$40M
US$28M
US$526M
18case
34case
28case
171case
Int’l Standard
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ETRI’s Major Achievements
WiBro Terrestrial DMB
CDMA World First Service of High-speed Mobile Internet
DRAM World First Terrestrial DMB Service in Korea in 2005
TDX
First Commercialization of CDMA System & Contribution to Domestic Industry· Economy World Semiconductor Market Leadership 1 Telephone per household & Nationwide Automation of Telephone System
Continuous Creation & Expansion of New ICT Service Markets in Korea ETRI’s 30-year Contribution to Korean Economy (estimated) : 104.6 billion USD (per input of 4.4 billion USD) * 1,000KW/USD
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Role of ETRI in Korea ICT Innovation ｏ Core of Technology Community − ETRI plays the key role in Korean ICT Community the by securing core technologies such as TDX, DRAM, CDMA, Terrestrial DMB, Wibro, etc.
ｏ Guide of the national ICT market − ICT Innovations in Korea was conducted strategically through nationwide ICT roadmap − Because of the ETRI’s status as a government funded research institution, ETRI’s technologies had good chances of being adopted as standards in Korean ICT market ｏ Quick Commercialization of Technologies and its halo effect − TDX, CDMA, Wibro, Terrestrial DMB, etc.
ｏ Organization of Technology Community and provide knowledge base for private sectors − Provide knowledge base through Joint R&D with commercial firms − ETRI’s technology transfer mechanism allows SMEs to commercialize new technologies - 25 -
Thank You ! ETRI Taewha HONG email : arjuna@etri.re.kr Phone: 82-42-860-4948
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