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5G Strategy
to Realize Innovative Growth
+
5G Strategy
to Realize Innovative Growth
The coming era of 5G is one that has not been explored before.
The Korean government will provide full support and cooperate closely with the private
sector to ensure that this first step creates new opportunities for companies and
sustainable growth engines for the country.
Preface
On April 3rd 2019, Korea secured the title as the first country in the world to
commercialize 5G. Now, time calls for Korea to concentrate its national capacity
in 5G to make the leap from being the world’s first to the world’s best.
Recognizing that only the first mover who leads global innovation can take
advantage of new markets, the Korean government, following the first-ever 5G
commercialization, established the 5G+ Strategy at the national level to realize
innovative growth in the 5G era.
The 5G+ Strategy aims to lead the global 5G market and create a safe and
convenient 5G environment by integrating advanced devices and innovative
services that connect all things to the 5G infrastructure. In particular, it plans
to focus efforts on nurturing 10 core industries and 5 core services based on
5G networks with a goal of capturing 15 percent of the global 5G market
and a production volume of 180 trillion KRW by 2026. To this end, the public
sector will support the rapid growth of the 5G market and accelerate private
sector investment. At the same time, it will assume an active role in addressing
institutional barriers to innovative convergence services.
The coming era of 5G is one that has not been explored before. Korea has taken
the first step towards this great challenge before anyone else. The Korean
government will provide full support and cooperate closely with the private
sector to ensure that this first step creates new opportunities for companies and
sustainable growth engines for the country.
We ask for the kind support and cooperation of the people of Korea as we rise
to the remarkable challenge of becoming the leading 5G country in the world.
1
Background 6
2
Expectations for 5G 8
3
The world’s first 5G
Commercialization 12
4
14
1 Key direction 14
3 Action Strategy 17
Key Tasks
5
18
3 Institutional Improvements 26
4 Establishment of an Industrial
Foundation 29
6 Expected Effects 34
1 Organization Structure 34
2 Expected Effects 36
5G+ Strategy to Realize Innovative Growth 6
Background
1
5G is a core infrastructure of the 4th Industrial Revolution that connects (characterized
by hyper connectivity) large volumes of data with all objects in a network very quickly (at
high speeds) and in real time (with ultra-low latency).
• It facilitates innovative convergence services throughout the economy and society, and creates
new enabling industries in manufacturing such as related equipment and terminals.
1 ( Super fast speed) Transmits large volumes of data at a rate as high as 20 Gbps → VR live TV,
hologram calls, etc.
2 ( Ultra-low latency) Responds instantaneously (latency of less than 1ms) → full self-driving
automation, real-time control of robots and drones, etc.
3 (Hyper-connectivity) Connects numerous sensors and devices → smart factory, smart city, etc.
In addition, 5G can trigger a ripple effect in large investments and across upstream
and downstream industries, and has gained traction as a driving force of Korea’s new
economic growth.
• In particular, it is the best alternative to overcoming the crisis in the ICT industry following the
growth slowdown of major industries such as semiconductors and enhanced global competition.
*Forecast of mid- to long-term growth of the ICT industry (2019-2023 annual average, KISDI) : (production)
Korea was the first to acquire substantive reference by launching 5G mobile
communications services (Dec. 1, 2018).
• The potential of 5G-related industries will be leveraged to create new business opportunities
and employment, thereby driving innovative growth of the Korean economy.
7
1. Background
Experience
Korea became an ICT powerhouse by taking the lead in building next generation networks
in the past.
* CDMA commercialization (1996) → Emerged as a mobile market powerhouse
High-speed internet commercialization (1998) → Developed new services such as internet portals
2. Expectations for 5G
as well as online banking and gaming
Commercialization
the economy and society, thereby securing global leadership of new industries
based on 5G and becoming a leader in the 4th Industrial Revolution.
Expectations for 5G
2
1 Changes in Technology & Services
5G is a game changer that fuels digital innovation of industries by going beyond existing
mobile communication (voice, data) exchanges between person.
• 5G is expected to be the starting point of the 4th Industrial Revolution as it overcomes the
limitations of existing communications technologies.
Data for
B2C / people
Everyone
5G B2B / IoT
Voice for Data for Digitalization of
Rich
Everyone industries
Voice for
Rich
4G
2G
3G
1G 4th Industrial Revolution
Computer &
2nd Industrial Revolution
Internet
Electric
1st Industrial Revolution
power
Steam
engine
9
1. Background
While the usage of 4G (LTE) is restricted to ‘smart phones’ (B2C), 5G will be applied to
diverse industries (B2B) and advanced terminal equipment and devices.
•
Existing sectors of innovative growth (i.e. autonomous vehicles, smart factories, drones,
healthcare) can also create new market opportunities with a 5G-based advanced innovation
2. Expectations for 5G
model.
Figure Change in services based on mobile communications technology evolution (4G → 5G)
4G
Voice service
5. Key Tasks
Video
streaming
product detection
( New Industry Ecosystem) ICT and core companies will be the first to enter the 5G
convergence service market, and a new ecosystem for creating new industries based on
5G will be created.
( Increased quality of life) 5G advances social safety nets including real-time responses to
disasters and enhanced safety measures, and reduces the inter-regional educational gap
through realistic and highly-immersive distance learning programs.
• 5G allows for digital healthcare services without any time and space restrictions and improves
the quality of medical services.
11
1. Background
3 Creation of Large Future Markets from 5G Convergence
5G is expected to create a 1,161 trillion KRW market in 2026 in relevant industries such
as network equipment and terminals, advanced devices and security, and convergence
2. Expectations for 5G
services (KISDI, 2019).
1,161
894.4
394.5
275.1
181.5 Compound Annual Growth Rate
117.3 (’22 → ’26)
8.2
43.3%
2019 2020 2021 2022 2023 2024 2025 2026
Network devices,
smart phones 28.4% 330 1,161
(2026)
5. Key Tasks
Advanced device
12.0% 139
and security
6. Organization Structure &
Expected Effects
5G+ Strategy to Realize Innovative Growth 12
The roadmap to speed up 5G commercialization was proposed (Dec. 2017) and other plans
including ▲ pilot service for the Pyeongchang Olympics (Feb. 2018), ▲ frequency bidding
(Jun. 2018), ▲ institutional improvements for joint construction of 5G infrastructure
and equipment as well as ▲ certification of base station equipment (Oct. 2018) were
conducted without delay.
Apr. 2019
Commercialized
5G for the first
in the world
Dec. 2019
Challenging goal
Announced for
Launched 5G
the goal of the Finished auction for Certified 5G base
service using mobile
world’s first 5G Specturm station equipment
routers first
commercialization
5G mobile network services based on mobile routers (dongles) were launched (Dec. 1,
2018) initially for corporate customers (B2B).
13
1. Background
Figure 1st registrants of 5G service by telecommunication companies (Dec. 2018)
2. Expectations for 5G
(SKT) Myunghwa (smart factory) (KT) 5G robot ‘Rota’ (LGU+) LS Mtron (remote-controlled tractor)
Smart phone-based 5G was commercialized for the first time in the world (Apr. 3, 2019).
• The world’s first 5G service based on smart phones was launched after laying the groundwork
Market maturity
to secure future competitive advantage to increase market dominance at home and abroad
Private
sector
demand
Encourage initial use by the public Increase private investment and promote
sector and create demand verification and commercialization
1. Background
Development of a joint growth model for upstream and downstream industries based on
private-public partnership
• ‘Develop early-stage infrastructure’ through private-public partnerships → ‘Introduce and
expand new services and devices’ → Nurture a virtuous industrial ecosystem of ‘market
revitalization’
2. Expectations for 5G
Government Private sector
5. Key Tasks
6. Organization Structure &
Expected Effects
5G+ Strategy to Realize Innovative Growth 16
Vision
Policy Goals
Global market in 2022 10% $10 billion in 2022 100,000 by 2022 Create a safe user
Global market in 2026 15% $73 billion in 2026 600,000 by 2026 environment
Network
equipment
Intelligent CCTV
Edge
computing
(Connected)
Robots
Information
Digital healthcare Smart cities
security
5G V2X
17
1. Background
3 Action Strategy
1 Secure early market dominance and improve quality of life with lead investment by the
public sector
2. Expectations for 5G
• Act as primer for the creation of an early 5G market by verifying and expanding the 5G convergence service
business model, having the public sector introduce and utilize 5G first, thereby driving demand
• Actively introduce 5G technology and infrastructure to public service sectors so that everyone can enjoy the
benefits of 5G and improve their quality of life
• Improve communication and transmission systems to provide diverse 5G services to the people and stimulate
new industries, and pursue regulatory innovation for new 5G convergence technologies and services
• Build the safest environment for 5G usage by strengthening cyber security and communication network
stability
4 Nurture companies and talent that match the global standard by establishing an 5. Key Tasks
industrial foundation
• Create an ecosystem to lead the global market by securing leading technologies, growing the Information
security industry, and fostering startups and human resources to ensure a competitive advantage in the future
6. Organization Structure &
overseas expansion
• Secure the competitive advantage of Korean technologies to lead the global standardization of 5G and
accelerate entry into global markets with experience gained from the world’s first commercialization of 5G
5G+ Strategy to Realize Innovative Growth 18
Key Tasks
5
1 Lead Investment by the Public Sector
( 1st stage) Support development and verification of revenue models for 5 core private
sectors (2018-2021) ⇨ (2nd stage) Promote the dissemination and expansion of the「5G+
Innovation Project」(2021-2025)
Immersive Autonomous
contents vehicles
• Promote projects for the dissemination and expansion by each of the 5 core sectors and build
the ‘5G+ Innovation Center’ as a hub for industrialization (2021)
* Encourage joint participation and funding by telecommunications service providers, local universities, and
venture companies and SMEs, while also creating support incubators for 5G+ companies and inducing
1. Background
2 Public sector support for creation of demand
( SOC Management) Support safe and efficient management of outdated public facilities
• ( Infrastructure) Pursue the ‘5G + Smart SOC’ project to install 5G-based real-time intelligent
monitoring systems linking roads, ports, airports, etc. (2020-)
2. Expectations for 5G
• (Living facilities) Support prevention efforts and measures to mitigate safety accidents by
collecting and monitoring sensor data (fractures, temperature, etc.) in buildings such as
educational and cultural facilities in real time using 5G (2020-)
• (Outdated nuclear power plants) Promote development and installation related to the safe
decommissioning of nuclear power plants based on 5G through real-time monitoring of high-
danger work sites and verification of operator biometrics (2020-2023)
- Develop 5G drones for postal delivery (2019-2021) and link with public purchases (Korea Post)
• (CCTV) Support (2020-) R&D focused on resolving social problems and creation of an
5. Key Tasks
environment for site verification based on 5G intelligent CCTV, and promote pilot services
(2021-) in the areas of disaster management and safety
6. Organization Structure &
Expected Effects
5G+ Strategy to Realize Innovative Growth 20
(5G+ Life Projects) Disseminate 5G solutions based on public demand for improving
livelihoods and resolving local social problems such as those in education, agriculture,
and the environment (2021-)
Build VR/AR infrastructure for Spread precision farming Build a real-time monitoring and
remote education and training techniques using 5G drones response system for fine dust
based on 5G at local and and tractors on farms with based on 5G in factory-intensive
vocational schools limited workers regions
( ER-medical specialists) Real-time cooperative treatment with specialists in hospitals for emergency
patients
( Hub hospitals-medical clinics) Adopt 5G remote cooperative medical treatment in hub hospitals
and medical clinics
•
Improve home-care services by pushing forward support for remote cooperative medical
services through 5G-based real-time video between doctors and home-care nurses (i.e. senior
facilities, health centers)
21
1. Background
(Welfare services) Improve welfare administration and care for the disabled such as by
providing real-time video consulting at social welfare centers using 5G terminal devices
and analyzing the health of people with disabilities via video links
2. Expectations for 5G
4 Foster a 5G-based smart city
• (Existing city) Support spread of 5G-based smart city technologies by first applying 5G in
and safety
• (Robot services) Support the technological development and business operations of companies
with a ‘Robot Integration Center’ that offers a 5G-based robot testbed
5. Key Tasks
6. Organization Structure &
Expected Effects
5G+ Strategy to Realize Innovative Growth 22
( Tax Benefits) Provide tax benefits (2019-2020, 2-3%) for investments in the 5G network
such as the nationwide establishment of a 5G network (-2022) to attract private financing
in infrastructure
(Testbed) Build 13 infrastructural hubs for 5G testing and verification in 5 key sectors
including diverse 5G terminals and equipment, 5G vehicle-to-everything (V2X)
communication platforms, 5G drones and edge computing
• ( Terminal) Construct a testbed for performance testing of smart phones and other devices
across their life cycle (prototypes – commercialization) and provide international accreditation
services (2019-)
• (Equipment) Build an environment for testing and verification (2020-) to reinforce the credibility
and safety of 5G network equipment (small cells, repeaters, etc.) of SME
• ( V2X*) Create a ‘5G-V2X Testbed’ that comprehensively supports R&D and substantiation,
verification of performance in real-world settings, and international accreditation tests (2019- /
K-City, Pangyo Gyeonggi, Sangam Seoul)
* Vehicle-to-Everything : •Vehicle-to-Vehicle (V2V)
•Infrastructure (V2I)
•Network (V2N)
1. Background
Figure 5G V2X testbed
2. Expectations for 5G
K-City - Hwaseong, Gyeonggi Pangyo Zero City – Seongnam Gyeonggi Sangam, Seoul
• (Drone) Install testing and substantiating equipment (5G base stations, etc.) at 5 ‘drone test
fields’ that are already being constructed to test 5G communications and security performance
(2020-2021)
• (Edge computing) Create a practical environment for 5G-integrated services (autonomous
( Cluster formation) Establish the ‘Songpa Mobile Cluster*’ to provide expanded support
5. Key Tasks
based on existing measures targeting the radio and security industries to 5G equipment
development and demonstration (2020-2025)
* Build 5G+ support facilities on the land of the Central Radio Management Service (40,524㎡)
6. Organization Structure &
• Reinforce win-win cooperation by organizing and managing (2019-) the ‘5G Network Equipment
Alliance’ that brings together telecommunications companies, companies handling equipment,
devices and parts, as well as academia and other relevant institutions
(Lead project) Create a list of top 10 ‘Global Flagship 5G Content’ in 2022 by undertaking
a 5G Content Flagship Project in 5 key sectors
Lifestyle content with high daily demand such as shopping and education
Realistic lifestyle
(i.e: VR shopping platform)
1. Background
( Development & Overseas Markets) Create 5G content development hubs by expanding
and reorganizing ‘regional VR/AR development hub centers’ (from 7 in 2018 to 10 in 2019)
• Build hubs overseas such as 5G content experience halls and business spaces (4 countries in
2019)
2. Expectations for 5G
5 Support productivity innovation within major industries
Commercialization
(Shipbuilding) Test the practicality of 5G-based smart communication environment at
shipyards (2020-2023) and secure key technologies for ‘smart yards’ that support process
automation and optimization (2021)
( Energy) Realize an optimized system for power generation using 5G and real-time big
data processing to increase utilization of renewable energy (i.e. solar power) power farms
(2020-2023)
5. Key Tasks
3 Institutional Improvements
( 5G data plan) Encourage introduction of a communications plan that does not sharply
increase the communications bill of households to ensure that the people enjoy diverse
5G services (April 2019)
* Continuous decrease in data rate per unit of LTE starting with the first 5G data plan
• Reset frequency bands for 2G, 3G and 4G networks which are due to expire in 2021 and supply
frequency bands for 5G convergence services (i.e. autonomous vehicles, smart factories and
cities)
(Cyber security) Establish a comprehensive system for cyber security by designating core
5G facilities as critical information and communications infrastructure and developing
an ICT convergence protection system* (Information and Communications Network Act
revised, 2019-)
27
1. Background
* Legal grounds related to the protection of IoT devices and services, recommendations on standards for
• Build an intelligent invasion response system using big data and AI technology in response to
cyber threats that are becoming more intelligent and larger in size
2. Expectations for 5G
( Strengthen the stability of communications networks) Develop a prevention, preparation,
response and recovery system for communications disasters to ensure uninterrupted 5G
network operation at all times
• Expand the target for government inspections (80 → 870) to include all critical communications
facilities (grades A-D) and ensure more frequent inspections and strengthen the mandatory
requirement to secure detour transmission lines between facilities
•
(Digital gap reduction) Improve access to new terminals and services for the vulner-
able class (i.e. the disabled and elderly) and expand education leveraging intelligent
information services focused on real life experiences (i.e. VR and AR)
1. Background
4 Establishment of an Industrial Foundation
2. Expectations for 5G
( Devices) Develop core technologies in the next-generation devices industry
• ( VR‧AR) Develop ultra-realistic and light devices (immersive HMD, AR glasses) linked to 5G
(2020-) and secure high-performance device technologies tailored to medical and industrial
sites (2019-)
• ( Wearables) Develop wearable device (i.e. physical support suits) technology based on 5G and
Industrial AR glasses Physical support wearable suit Cloud robots (social services) 5. Key Tasks
(2021-)
• (Holograms) Support development and commercialization of core source technology for
‘hologram content’ to secure the future content market post VR and AR (2020-)
5G+ Strategy to Realize Innovative Growth 30
information telecommunications
• Pursue creation of immersive Contents experience halls for cultural assets (4 national museums
in 2019) and VR content theatres for virtual and remote experiences related to regional history
and cultural assets
31
1. Background
4 Catalyze 5G startups and nurture talent
( Catalyze youth startups) Increase R&D support for technology startups in 5G applied
content and service sectors with high business potential (2019-)
•
Support (2019-) funding for commercialization of youth technology startups (i.e. 5G, AI,
2. Expectations for 5G
Blockchain) and build a ‘5G immersive Contents lab’ (2019) to promote 5G content startups
•
Spread the culture of entrepreneurship through corporate venture programs (2019-) that
leverage the innovative competence of large corporations (telecommunications companies,
manufacturing companies, etc.)
( Nurture talent) Build an analysis system for supply and demand of human resources
Commercialization
4 core ICT talent training programs (2019)
( Global partnership) Provide matching services with promising domestic companies and
initiate local boot camps and commercialization by signing a partnership with leading
global 5G firms (2020-)
( 5G+ transformation) Develop products whose existing business can be transformed into
a viable 5G business model and support a localization program that is tailored to target
markets abroad (2020-)
1. Background
3 Support overseas expansion through international cooperation
( Secure bridgehead) Establish a base for and support capital funding for promising
companies through an ‘international alliance’ between KIC (Korea Innovation Center) and
overseas innovation institutes (2019-)
2. Expectations for 5G
• Establish IT support centers and research innovation centers in ASEAN, CIS, etc. in line with
diplomatic policies such as New Southern and New Northern Policies and develop joint projects
1 Organization Structure
** Ministry of Science and ICT (Minister), Ministry of Economy and Finance, Ministry of Interior and Safety,
Ministry of Culture, Sports and Tourism, Ministry of Trade, Industry and Energy, Ministry of Health and Welfare,
Ministry of Land, Infrastructure and Transport, Ministry of Oceans and Fisheries, Ministry of SMEs and Startups,
• Coordinate on inter-ministerial or joint tasks for the public and private sectors and establish an
action plan.
1. Background
(Implementation system) Conduct assessment* of the implementation progress of each
task through a 5G+ Strategy Review Meeting within the Ministry of Science and ICT every
quarter (Second Vice Minister) and every month (Deputy Minister of ICT Policy)
* Make additions and revisions (adopt moving targets) in the strategy industry as per the market situation and
2. Expectations for 5G
• ( PM) Designate an officer or a PM in charge of each sector of the 5G + strategy industry and
transfer ownership to the department in charge to facilitate communication and collaboration
between relevant departments, industries, academia and institutes
• (On-site communication) Promptly resolve* regulatory improvement tasks, private sector
challenges, etc. drawn from on-site discussions, open channels** for collecting opinions, and
service development and verification
** 5G forums, consultative groups by sector (i.e. smart factories), associations and groups (i.e. networks,
content, devices)
5. Key Tasks
6. Organization Structure &
Expected Effects
5G+ Strategy to Realize Innovative Growth 36
2 Expected Effects
Realize innovative growth by pursuing 5G+ technologies that transcend the world’s
first 5G commercialization to incorporate ‘new industries’, ‘jobs’ and ‘quality of life’
within 5G
1 ( New industries) Emerge as the first-mover in the global market by creating a new
180 trillion won market and achieving export volume of 73 billion dollars by 2026 through
the cultivation of 5G+ strategy businesses
Network and
terminals
Network equipment 15 trillion 28 trillion 13trillion
won in
won won
2022
Next-generation (5G)
smart phones Immersive contents
Smart devices
105trillion 180 trillion 75trillion
VR·AR devices won
won in
won
2026
Wearable devices Smart factories
Intelligent CCTV
Unmanned vehicles
Exports
Autonomous vehicles
(Future) Drones
(Connected) Robots
$8 $10billion $2
billion in 2022 billion
5G V2X
Smart cities
Security and
computing
Information security $60 $73billion $13
billion in 2026 billion
Edge computing Digital healthcare
37
1. Background
2 ( Jobs) Create 600,000 quality jobs by 2026 by nurturing an innovative service industry
and new manufacturing industry (equipment and terminals, smart devices, unmanned
vehicles) based on 5G
Employment
2. Expectations for 5G
190,000 jobs 410,000 jobs
(2026) (2026)
600,000
Foster new 5G 5G+ core 5G+ core 100,000 people
industries industries services people