Introduction for Korea IT Industry Promotion Agency

Table of Content Ⅰ Overview of Korean IT Industry Ⅱ Software Industry of Korea Ⅲ Activities of KIPA 2 / 26 1/

Ⅰ Overview of Korean IT Industry 3 / 26 2/

Current Status Internet Mobile Phone subscription Broadband over 40,000,000 31,580,000 11,650,000 (’06.11) persons households 4 / 26 3/

e-Government of Korea Step1 Step2 Step3 Step4 Step5 Seamless Issuing online documents : Transactional visa, passport, birth records Financial transactions: payment of taxes and fees Interactive Enhanced Emerging 5 / 26 4/

Strengths of Korean IT Industry 6 / 26 5/

u-IT839 Strategy 8 Services 9 Products Digital TV WiBro Service & Broadcasting devices DMB / DTV u-Home Intelligent Robot RFID/USN Digital Contents / HSDPA / W-CDMA SW Solution Broadband Convergence IT SoC Telematics / LBS RFID / USN IT Service Mobile / Telematics Broadband / Home Network Next Generation PC Embedded SW 3 Infrastructures Broadband Convergence Network Ubiquitous Sensor Network Soft Infraware 7 / 26 6/

Ⅱ Software Industry of Korea 8 / 26 7/

Importance of Software Industry Voice Data Conference Movie Music News Game VOD e-C Telecom Broadcasting Internet Wired Terrestrial/Satellite FTTC+xDSL/LAN Wireless/Satellite Cable FTTH or HFC Digital Home e-Business e-Learning, e-Commerce Entertainment e-Gov’t Informatization of public sector 9 / 26 8/

Importance of Software Industry Software is the core industry infrastructure in the age of digital convergence Proportion of software Software accelerates development cost by industry convergence and mixing 54.3 Industry average: 50.1% 51.5 52.4 51.4 45.7 40.9 Telecom Industry Automation Car Military/aerospace Home Appliances Medical Service ※Source: VDC('06) 10 / 26 9/

Importance of the Digital Content Industry 21C higher value-added business Industry that creates high benefit with no marginal cost Growth engine for next generation Heavy competition for  Core Industry to contribute to occupation in the market reach GDP $30,000 - One of the core resources of IT 839 Strategy DC Industry is the 2nd one among the entire Industry  Create new demands of Information and Communication Industry u-Japan announced as leading strategy by increases use of digital content Employed policy that facilitates DC Industry - 863 National Science Technology Plan 11 / 26 10/

Growth of Digital Content with Service and Device DC grows with Service and Device in the Digital Environment Wireless Internet sales (hundred million won) Wireless Device (thousand unit) iTunes Market Share : 80% of online music in the world 2,219 Mobile Game sales (hundred million won) iPod Market Share : 2,101 70% of the device market in the world 38,363 1,78 37,202 1,01 5 ※ Korea developed the world’s first MP3 player, but lost 36,849 35,016 1 32,502 the advantage without a service model 31,431 25,527 Increase in iPod Sales 19,069 2003 2004 2005 2006 Increase Increase Wireless Device Supply in iTunes Use in Content Sales Increase in Increase Wireless In Mobile Apple Internet Use Content Sales   Wireless Device : 95.44% of entire device in 2006 Significant Increase in sales of Wireless Internet Music+ Movie+ i Tunes i Pod (4.6% in 2001 → 19.6% in 2006) Broadcasting 12 / 26 11/

Software Sales and Export of Korea 21.7 20 20.6 18.2 18.4 18.7 (unit: ￦ trillion) 15 14.7 15 SW Sales 10 12.5 11.9 8.3 10 5 5.9 (unit: $billion) 2.9 4.7 SW Export 5 2001 2002 2003 2004 ※ Source : KAIT, KIPA(‘07) 2005 2006(e) 13 / 26 12/

Top 10 Software Firms in Korean Market Package SW Market IT Service Market MS 10.7% 1 23.4% Samsung SDS IBM 6.4% 2 18.1% LG CNS Oracle 4.6% 3 11.8% SK C&C SAP 2.9% 4 9.5% IBM EMC 2.7% 5 5.2% HP Samsung SDS 1.5% 6 4.3% KT AhnLab 1.4% 7 3.9% HIT Symantec 1.4% 8 3.8% POSDATA Tmaxsoft 1.3% 9 3.2% KDN HP 1.2% 10 2.3% SangYong I&C Ranking 14 / 26 13/

Top 10 Companies by Core Area in Digital Content Market On-line Game Portal Nexon 15.0% 1 26.3% NHN Ncsoft 13.5% 2 10.4% Daum Neowiz 7.5% 3 9.2% SKCommunications NHN 7.1% 4 4.6% KTH CJInternet 6.0% 5 4.3% Yahoo Korea Blizzard Korea 3.6% 6 2.2% Empas M-Game 3.2% 7 1.9% Itemmania Gravity 2.4% 8 1.1% Itembay Hanbitsoft 2.0% 9 0.9% Dacommi SEC 1.9% 10 0.8% NTOOS.COM Ranking 15 / 26 14/

Number of Companies and Employees Number of companies Number of employees (unit: thousand) 5,601 122 5,442 112 117 120 4,940 5,304 110 4,877 2001 2001 2002 2002 2003 2003 2004 2004 2005 2005 * source : KAIT(’07) * source : KAIT(’07) 16 / 26 15/

Leading Korean Software Companies IT Service Package SW Digital Content 17 / 26 16/

Ⅲ Activities of KIPA 18 / 26 17/

About KIPA Established 1998 by About 170 people Promoting Software Industry Ministry of Information Improving Software Productivity & Communication Nurturing Digital Content Industry Promoting International Cooperation President Policy Korea SW SW Industry Digital Open Nuritkum Business Content Source SW Planning Engineering Cooperation SQUARE Support Business Business Group Group Group Group Group Group Group 19 / 26 18/

Promoting Software Industry Improve and revise policies, rules and regulations Support marketing activities for software companies Promote use of open-source software Software market research/analysis & Policy development Support for Regional Software Centers & Soft Towns 20 / 26 19/

Nurturing Digital Content Industry Market analysis & strategy planning Provide production & test facilities of Digital Content Nurture star companies & Support global co-production Set up IT complex (Nuritkum Square) - R&D center, IT Biz center, Cutting-edge IT Theme park 21 / 26 20/

Improving Software Productivity Standardize software engineering technology Nurture software architects and embedded software engineers Improve the software acquisition management process for public sector 22 / 26 21/

Promoting International Cooperation (1) To share domain knowledge, experience and technology To enhance and expedite mutual cooperation To build strong relationships 23 / 26 22/

Promoting International Cooperation (2) R&D  Ministries & Local Gov’s : MOF, MOE, MOGAHA, PPS, KCS..  NIA : E-Government Experience University Gov  KADO : Internet Access Center, Digital Divide KIPA  IITA : R&D, Human Resource Development MIC/ MOFAT  KEXIM : ODA & Long-term base Loan Related Agency KVS  KOICA : ICT Grant, Invitation & TA  KISDI : APII Center, Research & Strategy etc  ETRI : R&D, Technology Development * MIC : Ministry of Information & Communication * MOFAT : Ministry of Foreign Affairs and Trade 24 / 26 23/

Promoting International Cooperation (3) Concept Procedure ① Project Identification, * SOP Long Term Opportunity Collaboration MIC (Korea) Counterpart Partnership Creation Expansion KIPA Ministry ② G2G Cooperation MOU ③ ③ G2G Cooperation Executive Committee Partner Korea e-Government Country ④ Working Group Ministry Ministry Korea IT Korea Specialist Specialist Dept. of Gov. Agency Gov. Agency *BM/ SMR/ Etc Budget ICT Co. Experts ICT Co. ADB ⑤ Experts R&D M/P & F/S R&D F/S Execution Univ. Univ. World Bank ⑥ ⑥ Economic Development KIPA CoE Board Sharing Budget Arrangement Others Support MIC technology and experience AIC • F/S: Feasibility Study, • BM: Benchmarking SMR: Seminar *SOP: Scope of Project 25 / 26 24/

Nuritkum Square (Sangam) ITBiz Center IT R&D Center Digital Pavilion Co-production Center 26 / 26 25/

THANK YOU 27 / 26 26/

Introduction for Korea IT Industry Promotion Agency

by Jacob Heejeong Yang on Jul 05, 2009

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