Insights From Korean TMT(Technology, Media, Telecom) Sector

8 th September 2006 Copyright © 2006 by Veyond No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means — electronic, mechanical, photocopying, recording, or otherwise — without the permission of Veyond This document provides an outline of a presentation and is incomplete without the accompanying oral commentary and discussion. Insights and Trends From Korea

MVNO (USA) Mobile TV (Satellite DMB) Mobile Music Internet Portal Mobile Game Segment Marketing Social Networking

Mobile TV

Terrestrial DMB vs. Satellite DMB TU Media 13,000($13)/month Nationwide X 3 Major Broadcasters, 1 Cable Ch. 2 DMB consortium Free (for now) Seoul/Kyung-gi Province O Operator Charge Coverage Real-time Broadcasts

Satellite DMB CF – focused on ‘Premium Contents’ TU provides relay broadcast like MLB, Japanese Baseball, K-1

Terrestrial DMB CF – focused on ‘Real-Time Broadcasting’ Due to the Broadcasting Regulation, Only T-DMB can provide real time contents

Satellite DMB – A killer contents raises the program rating The rating of relay broadcast for a Japanese Baseball leaguer Lee, Seung-yeob’s game was jumped by increase of Korean People’s interests

Satellite DMB Overview

Satellite DMB – Analysis of Subscribers Subscribers’ Age, Gender, ARPU Trend of S-DMB Subscribers

Terrestrial DMB – Business Model

Terrestrial DMB – Value Chain

Terrestrial DMB – Subscribers Prospect

World Mobile TV handset Market Prospect

Time slot of Classic TV vs DMB

Where do you want to use DMB? T-DMB S-DMB Public Transportation School, Workplace Public Area Home Auto Mobile Transportation School, Workplace Public Area Home Auto Mobile

Various Types of DMB handsets

Spreads of DMB in Korea Watching DMB in the subway DMB phone statues in public

DMB service in Germany

Prediction and Reality

User Profile

Minute of Usage

Contents Preference

Mobile Music

Mobile Music Portal by SK Telecom (MELody + Online) Melon’ s Website Key Features

Launched in November of 2004

Let subscribers listen to music “Whenever, Wherever, on Whatever Devices They Want”

Easy access from a mobile and fixed-line network

Provides unlimited music streaming and downloading services for only 5,000 won ($5) a month

Downloaded music can be transmitted to mobile phones though Melon

Key Impressions of Melon The Number of Increasing Subscribers Key Impressions

Total 600,000 subscribers with 40% growth rate a year

The best business model for consumers who want as much mobility and content available, irrespective of device or file format

Open & standardized file formats need to be developed to ensure compatibility with any handset or network platform

Other technology advances and user acceptance according to them in South Korea may affect its success

(MELody + Online)

Comparison between Melon and iTunes iTunes Focuses on Korean pop music The overwhelming rate of MP3 phone owners The prevalent pirated music files Linked with mobile provider The market for western pop music is too small Relatively small market share of iPod Service Charges are relatively expensive Cannot transmit music files to other devices Content Environment Price Interopera-tability

Mobile Music Korea MNO Mobile Music Overview

Mobile Game

Mobile Game Portal by Operator SK Telecom ‘GXG’ KTF ‘GPANG’

Mobile Game Kart Rider ‘ Coca Cola Advertising’

Mobile Game Kart Rider ‘ Mini Advertising’

Mobile Game Mobile Game Revenue Share Scheme

Mobile Game Mobile Game Portal of MNO

Mobile Game

Mobile Game Mobile Game User Survey (2002/2004)

Mobile Game

Mobile Game One Button Mobile Game for Female Users

Mobile Game Nexon Mobile N0 2 in Korean Mobile Game Market after Com2Us Mother Company is Nexon one of the strongest Online Game Company Annual Revenue 11 million dollar Trying to converge Online Game and Mobile Game (Wireless and Fixed Internet Convergence)

Mobile Game

Mobile Game Mobile Game Competition

Mobile Game 2006. August Vivendi Games CEO Bruce Hack Korea is No3 country in Mobile Game Market After US, Japan Will enter Korean Game Market Both Online Game and Mobile Game Korea Game Industry is really advanced and wish to make joint venture

Mobile Game KTF Weekly Mobile Game Chart

Mobile Game Mobile Game Market Size

Mobile Game Game Industry Overall

Mobile Game Game Industry & Age Group

Mobile Game Mobile Game User Claims

Mobile Game Mobile Game Revenue Scheme

Mobile Game Mobile 3D Game Handset

Social Networking

Cyworld and T Online Joint Venture Cyworld in Taiwan Social Networking

Cyworld in Japan Social Networking

Cyworld vs. Naver MySpace vs. Blogger Social Networking

Cyworld Social Networking

Cyworld Mini Hompy Social Networking

Mobile Cyworld 1.8 million V Social Networking

Cyworld Map made by members (UCC, WEB 2.0) Social Networking

Cyworld Members & Digital Item Acorns Social Networking

Cyworld MiniRoom, MiniMe Social Networking

2006 WIBTA (Wharton - Infosys Business Transformation Awards) Previous recipients of the Award includes Amazon, Samsung Electronics, Standard Chartered Bank, ING Direct Social Networking

Cyworld ‘Wave’ V V Social Networking

Understanding Korea

Handset Review Understanding Korea

Early Adopter and Active Customer ‘ Prosumer’ Understanding Korea

Korean Game Market Size Understanding Korea

Korean Online Game Market Understanding Korea

Korean Mobile Payment Market Understanding Korea

Korean Banking User Pattern Understanding Korea

Location Based