The Dynamic Evolution of

Ubiquitous Society in Korea

by Dr. Taeyol Yoo
Senior Vice President
Head of KT Management Research

March 2008
Table of Contents

I. IT Industry Development in Korea

II. Strategies for u-Society Realization

III. Future Considerations

IV. Last Remarks

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I. IT Industry Development in Korea
Advanced IT Infrastructure
□ Broadband
- 30% of Total Population
- FTTH + LAN: 34%
100% by 2012
Speed 50 Mbps or less 100 Mbps Total
Type xDSL HFC FTTH + LAN
Subscribers 4.5 mil (31%) 5.1mil (35%) 4.8 mil (34%) 14.5mil

□ Wireless
- 90% of Total Population
- 8 million 3G Subscribers: 20%
50% by ‘08
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I. IT Industry Development in Korea
Economic Growth through IT
- GDP Contribution: 4% in 1996
16% in 2007

- 40% of Economic Growth

- 70% of Trade Surplus

- 200,000 Job Creation

- Expanding IT’s Role

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I. IT Industry Development in Korea
New Growth Engines
□ IPTV
- Launched in 2007
- Total 1.4 Million Subscribers
(500,000 by KT, 900,000 by Hanaro)
- Contents: Movies, Soap Opera, Education
□ WiBro (Mobile WiMAX)
- Launched in 2006
- Service Offered in Seoul Metropolitan Area
- 130,000 Subscribers
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II. Strategies for u-Society Realization
Government
□ Government’s Strategies
- ‘u-Korea’ Strategy: Big Picture
- ‘IT839’ Strategy: IT Industry Master Plan
- ‘u-City’ Strategy: First-Runner Project

□ New Government’s u-Society Vision

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II. Strategies for u-Society Realization
Government
□ ‘u-Korea’ Strategy (2003, 2006)
- History and Background
 1999, ‘Cyber Korea 21’
 2002, ‘e-Korea Vision 2006’
 2003, ‘Broadband IT Korea Vision 2007’

- Vision: “The FIRST u-Society

on the BEST u-Infrastructure”
- Projects: u-City, u-Defense, u-Health,
u-Work, Telematics, etc.
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II. Strategies for u-Society Realization
Government
□ ‘IT839’ Strategy (2004)
- IT Industry Master Plan for New Growth
 8 Services (WiBro, Telematics, Home Network, …)
 3 Infrastructures (BcN, USN, IPv6)
 9 Growth Momenta (Robot, Mobile, PC, Embedded S/W, …)

□ ‘u-IT839’ Strategy (2006)

- Market-centered, Customer-oriented
- Production Forecast in u-IT839 Items
(Billion US$) 2006 2007 2008 2009 2010 Total ’06~’10 CAGR
8 Services 15 17 21 25 28 106 16.5%
9 Growth Momentum 71 82 94 105 118 470 13.7%
Total 86 99 115 130 146 576 14.2%
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II. Strategies for u-Society Realization
Government
□ ‘u-City’ Strategy (2006)
4 Promotion Strategies 2 Goals Vision
 u-Service Standard Models  Improve
 Technologies & Infrastructure Qualities of Life  Hopeful
 Laws & Regulation  Foster Korea
 National Organizations IT Industry

- 3 Development Stages
1st Stage (2007~2008) 2nd Stage (2009~2010) 3rd Stage (2011~2012)
Initiation Acceleration Diffusion

- 22 u-Cities under Development in Korea

u-City Sites
Existing Cities 14 Sites including Seoul, Pusan, Incheon, etc.
New Cities 8 Sites including Asan, Dongtan, Paju, etc. 8
II. Strategies for u-Society Realization
Government
□ New Government’s u-Society Vision
- IT Catch Phrase:
“IT technologies should be absorbed in
every aspect of business and life.”
- National Agenda:
“Build World-class u-Korea”
- Expanding u-IT Role:
 National u-Logistics interconnecting Seoul and Pusan
 Futuristic u-City Construction
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II. Strategies for u-Society Realization
Corporations
□ u-Business Related Industries
- Types of u-Business:
Types of u-Business Related Industries
u-City Construction, Electronics, SI, etc.
Government’s u-Projects Supporting
Electronics, SI, Manufacturing, etc.
Private Sector
Government’s u-Projects Relating
Government Authorities, SI, etc.
Public Services
u-Projects pursued purely by
Manufacturing, Logistics, etc.
Private Sector

- u-IT Related Organizations in Korea:

 Forum: u-IT Korea Forum, RFID/USN Forum, etc.
 Association: Home Network Association, u-City Association, etc.
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II. Strategies for u-Society Realization
Corporations
□ KT’s Roles & Strategy for u-Society
- KT’s Roles for u-Society Realization:
 Enhance Network Infrastructure
 Contribute to the u-IT Industry Development
 Lead Futuristic u-World

- KT’s Business Strategy in u-Society

4 u-Business Areas Contribution(E)
 u-Media including IPTV, Content  Production:
 u-Mobile including WiBro, 3.5G/4.0G About 40 billion US$
 u-City including Sensor, Platform  Employment:
 SoIP including banking, advertising About 70,000 Jobs
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III. Future Considerations
#1: Convergence Big Bang

- From Intra-Industry to Inter-Industry

- Easier Productions and Sharing of Contents

- Digitizing Contents for IPTV

- All-IP Network and FTTH Installation

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III. Future Considerations
#2: Consumer
- Web 2.0 and Customer Participation

- Prosumer and UGC

- Nokia 888

- Customer’s Changing Role

- The Main Source of Value Creation
KT: Last One Mile to “First One Mile”
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III. Future Considerations
#3: Collaborative Integration
- Power of Collaborative Innovation (WEF)

- Collaboration for Survival and Growth

- Collaboration: KT and NHN, KT and Sony

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IV. Last Remarks

Customer-Focused

Innovative Services through Collaborations

Finding a New “Blue Ocean”

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