Korea Internet White Paper 2013 English

2013Korea Internet

White Paper

● The Special Report and the Top 10 News on the Internet contained in this White Paper have been selected through discussion by the editing committee, which is composed of experts from the industry, academia, research institutes and the government.

● The numbers in the statistical tables and diagrams have been rounded off for the sake of convenience, and thus the sum of specific items may not always correspond with the total.

● The 2013 Korea Internet White Paper puts together the latest Internet issues and trends that occurred during 2012. Due to the presidential election and consequent reorganization of the government in 2013, the government agencies responsible for overseeing and helping to manage the ICT industry were changed from the KCC, MOPAS and MKE to MSIP, KCC and MSPA. For this reason, the responsible departments are mentioned in this document according to the current government organization.

● MSIP(Ministry of Science, ICT and Future Planning), KCC(Korea Communications Commission), MSPA(Ministry of Security and Public Administration), KISA(Korea Internet & Security Agency)

Notice

2013Korea Internet White Paper

2013 Korea Internet White Paper

Publisher’s Message

By June of 2013, the number of Korean smartphone users exceeded 35 million, with 65% subscribing to LTE services. The paradigm is quickly shifting from the wired Internet to the wireless Internet. Also, as seen by the recent Gangnam Style craze that spread globally via YouTube, social media has proven to be a very powerful and irreversible aspect of contemporary life.

As the use of the wireless Internet has been rapidly increasing so too has the spread of malicious mobile codes and new frauds like smishing. Moreover, we are inundated with uncertain and unwanted information. It is imperative that we create an environment for invigorating Internet services safely in response to them. The Korea Internet & Security Agency is trying to become a leader in the global Internet arena by finding new growth engines combining information security with the Internet, diffusing a healthy Internet culture, and engaging in international cooperation.

It’s been already 14 years since its first publication. The ‘2013 Korea Internet White Paper’ reflects the policy paradigm for creating new jobs and markets through ICT convergence. The Special Reports section covers the mobile Internet, new Internet industries, and creative economy. Part 1, Infrastructure, handles the Internet infrastructure and new technological trends. Part 2, Services, covers Internet services, and business and convergence services. In Part 3, Utilization, the contents on the Internet industry, Internet use at home and abroad, and international cooperation are updated.

I hope this White Paper will be widely used as a basic reference for policy making, research and development of more efficient operations. I would now like to extend my gratitude to the writers, the editors and all those who have worked so hard for the publication of the ‘2013 Korea Internet White Paper.’

Lee, Ki JooPresident, Korea Internet & Security Agency

Infra

Service

1982•�Build SDN (TCP/IP){Seoul National

University - Korea Electronics Technology Institute (KETI)}

1983•Connect SDN-EUNET/UUCPNET•Start PSTN data service•Open Overseas Public Data Network

1984•Connect SDN-CSNET•Open first PSDN, Dacom-Net

1985•Connect SDN-PACNET

1986•�Assignment of first IP address (128.134.0.0)•�Introduction of country

domain (.kr)

1988•Connect SDN-MHSNET

1989•�Introduction of Education Network

(KREN) and Research Network (KREONet)•�Build SDN-HANA network (KT)

1982•First connection to the Internet

1983•Offer information search service

1984•Offer commercial Email service (Dacom)

1985•Offer Korean Email service• Introduction of PC communication

(Dacom)

1987•Offer H-Mail service•Start PC banking service

1988•�Start commercial PC communication

service (Chollian)•�Introduction of private BBS (The FIRST)•�Development of vaccine following first

virus attack (Brain)•�Start EDI service (Dacom)

1981•Establishment of Korea Telecom Authority

1982•�Establishment of Korea Data Communication co.,Ltd•�Prepare 1st Basic Plan for Computerization of

Administration

1983•�Enactment of Framework Act on

Telecommunication (first use of term, Information & communications)•�Prepare National Backbone Network Business Plan

1984•�Organization of National Backbone Network

Coordination Committee

1985•�Prepare National Administrative Network

Implementation Plan•�Hold first int'l computer network related

conference (PCCS)

1986•�Enactment of Act on Computer Network

Expansion and utilization promotion

1987•�Establishment of National

Computerization Agency (NCA)•�Prepare 1st National Backbone Network

Basic Plan•�Organization of Computer Network

coordination Committee

In 1982 when the SDN (System Development Network) was built, Internet service began in Korea. Since then, it has grown rapidly and broadband Internet subscribers had reached 18 million in 2012.Thereafter, Korea became the first in the world to launch commercial WiBro and HSDPA services, and confirmed its position as an Internet powerhouse. In 2012, Korea smartphone users exceeded 30 million. The country is now making efforts to become a world leader in the smart age.

History of the Korea Internet

Policy


1981~1984 1985~1989

1990•� Connect SDN-HANA to USA IP

based Internet

1993•�Open administration

information network (NATISNET)

1997•Start leased line service•�Start high speed national network

Internet service•�PC communication subscribers

exceed 3 million

1999• Internet users exceed 10 million•First assignment of IPv6 address

2000• Open commercial ATM exchange

network• Establishment of Korea ISP Association

(KISPA)

2001•�No. 1 in broadband

networks (OECD)

2002•� Broadband Internet

subscribers exceed 10 million •�No. 1 in broadband Internet

penetration

1994•�Introduction of Commercial ISP

(KT, Dacom, iNet)

1995•�Establishment of PC-Internet

connection•�Implementation of KIX Service

1996•Open ISDN public network

1991•�Start online issue service of

resident registration documents

1997• Start online stock trading service• First free Internet services for Email

and search, etc.• Introduction of portal sites (Netsgo)

1998•�Introduction of commercial

broadband Internet service (Thrunet)•Offer e-Government service

1999• Start ADSL service (Hanaro Telecom)•Start online banking service

2001•�Online banking subscribers

exceed 10 million•�Introduction of Internet

content rating service

2002•�Game market exceed KRW

3 trillion

1994•�Introduction of commercial

Internet service (KT)• Start text based MUD game service•�Open government authorities

websites (Blue House, etc.)

1995•Start 'WWW' service•�Start Internet café (Netscafé)•�Open Internet news & broadcasting

sites (JOINS, KBS)

1996•Start ISDN Internet servic•Start e-Commerce and First webzine service•�Introduction of first graphic based MUG game•Hold Information EXPO

1990•�Prepare Master plan Information

Society

1992•�Prepare 2nd National Backbone

Network Basic Plan•�Enactment of Act on Promotion of

Information and Communications Network Utilization, etc.

1993• Prepare National Information

Super Highway Basic plan

1998•�Prepare Information and Communications

Network Improverment Plan•�Prepare PC Communication and Internet

Utilization Promotion Plan

1999•Development of 'Cyber Korea 21'•�Enactment of Framework Act on Electronic

Commerce, Digital Signature Act•�Establishment of KRNIC

2000 • Completion of 2nd Stage National

Information Super Highway Project• Enactment of Software Industry

Promotion Act, Knowledge Information Resource Management Act• Prepare Personal Information Protection Guidelines• Implementation of 11 Initiatives for e-Government• Establishment of Korea SW Industry Promotion Agency (KIPA)

2001•�Enactment of Act on

Promotion of Information and Communications Network Utilization and Information Protection, etc.

2002•�Development of 'e- Korea

Vision 2006'

1994•�Establishment of Ministry of

Information and Communication (MIC)

1995• Prepare National Information super

highway master plan•�Enactment of Framework Act on

Informatization Promotion•�Establishment of Korea Internet

Safety Commission (KISCOM)

1996•�Prepare 1st Informatization Promotion

Basic Plan•�Organization of Informatization Promotion

Committee•�Establishment of Korea Information Security

Agency (KISA)

• Introduction of Commercial Internet Service

• Establishment of Ministry of Information and Communication

• Introduction of commercial broadband Internet service

• Internet users exceed 10 million

1990 1994 1998 1999 2001 2002

1990~1993 1994~1996 1997~2000 2001~2002

• No. 1 in broadband networks

• Enactment of Act on Promotion of Information and Communication Network Utilization and Information Protection, etc.

• Broadband Internet subscribers exceed 10 million

• Development of 'e-Korea Vision 2006'

InfraS

erviceP

olicy

2003•�1.25 Internet Security

Incident

2004•�Internet users exceed

30 million•�Start BcN pilot project

2003• Start VDSL (20Mbps)

service• Start mobile banking

service• Start of Hangul.kr service

2003•�Development of

'Broadband IT Korea Vision 2007'

2004•�Development of

'IT839 Strategy'•�Prepare BcN

Implementation Plan

•�No. 1 in Digital Opportunity Index (ITU)•�Pilot Internet service on

aircraft (Korean Air)•�International standardization

of 'WiBro' (IEEE)

• Introduction of commercial VoIP service•�Mobile banking users exceed

1 million•�Online game market exceed

KRW 1 trillion •�Start mobile e-Bidding

service

•�Prepare IPv6 Distribution Promotion Basic Plan•�Implementation of Real-

Name System for Internet Civil Service•�Prepare the Basic Plan on

Internet Address Resource Development, Promotion, and Managementt

•�No.1 in Digital Opportunity Index (ITU)• International

standardization of WiBro and T-DMB (ITU)

• Introduction of the 2nd level kr domain (QuickDom)• e-Commerce market

exceed KRW 500 trillion

• Implementation of Identity Verification• Introduction of i-PIN, an

alternative to resident registration number• Establishment of

Korea IT International Cooperation Agency (KIICA)

• No. 1 in Digital Opportunity Index (ITU)• Start FTTH service

• Introduction of world first WiBro, HSDPA service•�Online retail volume exceed

KRW 13 trillion •�Start mobile civil service

•�Development of 'u-Korea Basic Plan'• Prepare e-Learning Industry

Development Basic Plan• Prepare Online Game

Identity Theft and Hacking Prevention Plan• Development of 'u-IT839

Strategy'• Hold 1st Korea Internet

Award


•�Implementation of Identity Verification

• Development of 'Broadband IT Korea Vision 2007'

• Development of IT839 Strategy

• Internet users exceed 30 million

• Introduction of commercial VoIP service

• Introduction of world first WiBro, HSDPA service

• Development of 'u- Korea Basic Plan'

2003 2004 2005 2006 2007

2003~2004 2005 2006 2007

•�No. 2 in ICT Development Index • Implementation of Giga-

Internet Pilot Project•7.7 DDoS Attack

• Subscribers of VoIP exceed 6.5 million• Mobile banking users

exceed 10 million

• Establishment of Midlong-term Broadcasting Communication Network Development Plan• Establishment of Mobile

Internet Promotion Plan (Phase 1 & 2)• Launching of

integrated Korea Internet & Security Agency• Hosting of 36th ICANN

Meeting in Seoul• Establishment of Cloud

Computing Promotion Plan

•�30th anniversary of the Korea Internet•�Broadband Internet

subscribers exceed 18 million

• Smartphone subscribers exceed 30 million• IPTV service subscribers

exceed 6 million• LTE subscribers exceed

15 million

• Implementation the global K–startup program• Launch of the Korea

Internet governance council• Designate the Day of

information security (2nd Wednesday of July)

• Registrations of kr domains exceed 1 million•�Online banking

customers exceed 50 million•�Online game export

attains USD 1 billion •�Launching of

commercial IPTV service

• Establishment of the Korea Communications Commission• OECD Ministerial

Meeting on the Future of the Internet Economy•��Enactment of the Internet

Multimedia Broadcasting Business Act•��Prepare the 2nd Basic Plan on

Internet Address Resource Development, Promotion, and Management•��Prepare the Internet

Security Protection Plan

•�Broadband Internet subscribers Exceed 15 million• Commercialization

and service coverage expansion of WiBro Wave2

•�IPTV service subscribers exceed 3 million• Smartphone subscribers

exceed 7 million•�WiBro export attains

KRW 1 trillion

•�Opening of '☎118' Counseling center•�Development of IPv6

transition plan•�Establishment of the

Internet Cooperation Forum•�Establishment of Internet

Advertising Market Promotion Plan•�Organization of KIDS

(Korea Internet Dream Stars)

•�No. 1 in UN e-Government Development Index and e-Participation Index•�Completion of BcN

project

•�Launch of the LTE commercial service (SKT/LG U+)• Launch of the ‘.한국’

domain service • Smartphone subscribers

exceed 20 million• Internet banking users

exceed 70 million• Mobile banking users

exceed 20 million

• Establishment of the Plans for Promotion of the NFC-based Mobile Smart Life service• Opening of pan-

governmental policy council on cloud computing• Implementation of the

Personal Information Protection Act• Introduction of the Mobile

Ad Platform Certification Law

•�No. 1 in ICT Development Index•�Opening of the LBS

Business Support Center•�No. 1 in terms of the

number of subscribers to wireless Broadband Internet per a population of 100 people (OECD)•�3.4 DDoS Attack•�IPv4 assignment ended

• Establishment of Korea Communications Commission

• OECD Ministerial Meeting on the Future of the Internet Economy

• No. 2 in ICT Development Index

• No. 1 in UN e-Govern-ment Development Index and e-Participa-tion Index

• Smartphone subscrib-ers exceed 20 million

• Launch of the LTE Commercial service

• 30th anniversary of the Korea Internet

• Designate the Day of information security (2nd Wednesday of July)

2012201020092008 2011

2008 2009 2010 2011 2012

Internet at a Glance

MSIP, wired and wireless communication service subscription statistics, 2013 Internet Statistics Information System, isis.kisa.or.kr

>> Number of smartphone subscribers >> Number of ISPs(Unit : 1,000 persons) (Unit : ea.)

2011. 12 2013. 4

22,578

34,665

2012. 12

32,727

2013. 1

33,298

2013. 2

33,822

2013. 3

34,330

2004

78

2005

79

2006

106

2007

112

2008

125

2009

126

2010

127

2011

121

2012

119


Former KCC · KISA, 2012 Survey on the Internet Usage, 2013

>> Broadband Internet subscribers (Unit : 1,000 persons)

MSIP, Broadband Internet subscription (compiled), 2013

(Unit : %, 1,000 persons)

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Internet users Internet usage rate

78.0 78.4

65.570.2 72.8 74.1 75.5 76.5 77.2 77.8

29,22031,580 33,010 34,910 35,590 36,190 36,580 37,010 37,180 38,120

20102009 2012201120082007200620052004

18,254

17,224 16,349

15,475 14,710

14,043

12,191 11,921

17,860

>> Internet users and Internet usage rate

(Unit : KRW 1 billion, %)>> e-Commerce transaction volume (Unit : KRW 1 billion, %)

Type2011 2012p Annual

Componentratio

Componentratio

Growth amount

Growth rate

B2B 912,883 91.3 1,050,985 91.8 138,103 15.1

B2G 58,378 5.8 62,259 5.4 3,880 6.6

B2C 18,533 1.9 19,641 1.7 1,108 6.0

C2C 9,788 1.0 11,804 1.0 2,016 20.6

Total 999,582 100 1,144,689 100 145,107 14.5

※ p : preliminary Statistics Korea, 2012 Annual and Q4 e-Commerce and Online Shopping Trend, 2013


Componentratio

Componentratio

Growth amount

Growth rate

Product Range

Total Store 21,836 75.1 24,145 74.6 2,309 10.6

Specialty Store 7,237 24.9 8,203 25.4 966 13.3

Operation Type

Online 18,991 65.3 20,417 63.1 1,426 7.5

On-Offline 10,081 34.7 11,930 36.9 1,849 18.3

Total 29,072 100 32,347 100 3,275 11.3

※ p : preliminary Statistics Korea, 2012 Annual and Q4 e-Commerce and Online Shopping Trend, 2013

>> Online shopping transaction volume

677 785914

1,0241,151

1,3651,556

1,7472,023

2,2732,497

2,749

11 1214

1618

2123

2629

3336

39

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012e 2013e

Internet users Internet usage rate

※ e : estimate ITU, ITU Statistics, 2013

>> International Internet users and Internet usage rate (Unit : %, million persons)>> ICT development index ranks (as of 2011)

Rank Country (index) Rank Country (index)

1 Korea(8.56) 8 Japan(7.76)

2 Sweden(8.34) 9 UK(7.75)

3 Denmark(8.29) 10 Switzerland(7.68)

4 Iceland(8.17) 11 Hong Kong(7.68)

5 Finland(8.04) 12 Singapore(7.66)

6 Holland(7.82) 15 US(7.48)

7 Luxembourg(7.76) 17 New Zealand(7.34)

ITU, Measuring the Information Society 2012, 2012

>> Sales of the online music distribution (Unit : KRW 1 billion, %)>> Sales of the game industry

Small categorySales

RatioAnnual growth rate2009 2010 2011

Mobile music service business 77 55 122 13.9 121.0

Internet music service business 360 454 592 67.4 30.5

Sound source brokerage 60 64 87 9.8 36.4

Internet and mobile music contents production and

provision business 73 49 78 8.9 58.2

Total 570 622 880 100 41.4

TypeSales

(KRW 1 million)

Added value(KRW 1 million)

Added value ratio (%)

Export (USD 1,000)

Import (USD 1,000)

2006 7,448,900 3,655,175 49.1 671,994 207,556

2007 5,143,600 2,487,445 48.4 781,004 389,549

2008 5,604,700 2,808,000 50.1 1,093,865 386,920

2009 6,580,600 3,348,867 50.9 1,240,856 332,250

2010 7,431,118 3,768,320 50.7 1,606,102 242,532

2011 8,804,740 4,184,893 47.5 2,378,078 204,986

Annual growth rate 18.5 11.1 △3.2 48.1 △15.5

Ministry of Culture, Sports and Tourism · Korea Creative Content Agency, 2012 content industry statistics, 2013

Ministry of Culture, Sports and Tourism · Korea Creative Content Agency, 2012 content industry statistics, 2013

>> Sales of the Internet industry (Unit : KRW 1 billion, %)>> Revenues of e-Learning service providers (Unit : KRW 1 billion, %)

Type 2007 2008 2009 2010 2011 2012P CAGRAnnual growth rate

Infrastructure industry

1,499(5.5)

1,547(5.1)

1,659(5.0)

1,766(4.9)

1,511(3.9)

1,463(3.5)

△0.5 △3.2

Support industry

6,486(23.8)

7,937(26.1)

8,407(25.2)

9,358(25.9)

10,263(26.2)

10,955(26.4)

11.1 6.7

Utilization industry

19,278(70.7)

20,974(68.9)

23,289(69.8)

24,958(69.2)

27,345(69.9)

29,111(70.1)

8.6 6.5

Total 27,263 30,458 33,355 36,082 39,119 41,529 8.8 6.2

※ p : preliminary, ( ) is ratio ※ CAGR : Compound Annual Growth Rate for 2007~2012

KAIT, Broadcasting Communication Industry Report (Monthly/Yearly) (compiled), 2012

Type2010 2011 2012 Annual

growth rateSales

Componentratio

SalesComponent

ratioSales

Componentratio

Contents 509 22.7 538 22.0 516 18.8 △4.2

Solutions 224 10.0 235 9.6 237 8.6 0.6

Services 1,513 67.4 1,678 68.4 1,996 72.6 18.9

Total 2,246 100 2,451 100 2,748 100 12.1

NIPA, 2012 Survey on e-Learning Industry Trend (compiled), 2013

| Internet Statistics |


Top 10 Internet News

In just three years after the initial release of the Apple iPhone in Korea at the end of 2009, it became so popular that 7 out of 10 Koreans were soon using smartphones. According to the MSIP, the number of smartphone subscribers had exceeded 20 million in October 2011, 30 million in October 2012, and 34 million in April 2013. According to the ‘Smartphone Usage

Survey’ announced by the KISA in December 2012, the average smartphone usage time was 19.5 months with an average daily usage time of 102 minutes. Smartphones have truly become

an integral part of our daily lives. In particular, for some services such as transportation and maps, there are more mobile users than wired ones.

The rapid increase of smartphones is affecting competition throughout the entire Internet industry. Naver’s domination of the Korean mobile market continues, but the rapid progress of Kakao, spearheaded by KakaoTalk, Kakao Game and Kakao Story, stands out. In particular, Kakao has been able to create its own ecosystem with hit games like Anipang and Dragon Flight one after another. In addition, mo-bile apps like Kimgisa, for navigation, and Watcha, for movie recommendations, are very popular. To implement more smartphone based services, the MSIP has decided to more strictly enforce its policies for enhancing the wireless network infrastructure and supporting a system for fostering app developers.

Rapid increase in mobile Internet use

01

It was a video uploaded to YouTube that made Psy a global star overnight. In just four months Gangnam Style recorded 840 million views on November 24, 2012 to be ranked No. 1 on YouTube beating Justin Bieber. And by April 2013, that number had reached a phenomenal 1.5 billion. Psy, who primarily operates in the market of Korea, was ranked second on the US Billboard chart for 7 weeks in a row, and topped music charts in more than 30 countries, including the UK, Germany, France, Australia, Canada, Italy, Spain and Holland, definitively demonstrating the power of social media like YouTube, Twitter, LinkedIn and Facebook. Currently there are more than 5 million videos uploaded to YouTube and the number only increases with each passing day.

It is clearly evident that people are utilizing the power of social media to create business opportunities. Large and small corporations, including the likes of Sam-sung and CJ, now routinely upload videos to YouTube with each release of a new product, and they are also using Facebook and Twitter to promote their businesses.The LG Economic Research Institute has forecast that OTT (Over The Top), which uses the Internet to deliver broadcasts and movies, will become a keyword that will dominate the communication market in 2013.

Power of social media exemplified by ‘Gangnam Style’

02

In 2012, there were a number of very heated debates among political parties and the IT industry about how to foster new industries as growth engines for the economy, and about eliminating burdensome regulations. Leaders of the domestic ICT industry, including KISA and academia, invited presidential candidates to attend an Internet policy debate where they spoke with one

voice about fostering new industries and promoting self-regulation. They pointed out that in the US, companies such as Amazon, Apple and Google have created their own IT ecosystems with

which they are exercising their global influence to the fullest. And thanks to innovative venture capital corporations like Y-Combinator, successful startups like Pinterest and Square come into being one after

another. So participants discussed strategies on how to foster new Internet based industries to create jobs with sustainable growth. Among them, cloud-based services, big data and the Internet of things rose as key technologies. As a result, a guideline for introducing cloud based technologies and services for the private sector was prepared in December 2012, and a free web based office program that makes it possible to create documents without using Mi-crosoft’s proprietary Office software is becoming more popular. The MSIP also hatched a plan aiming at fostering 1,000 new Internet com-panies with hopes of creating 50,000 new jobs by 2017. The ministry is also putting the finishing touches on its Cloud Computing Development Act, and is planning to build a big data center for research and public use.

Fostering new Internet industries

03

LTE has emerged as the technology destined to replace 3G. As it is about 2.5 times faster than 3G, LTE makes it possible to transmit large files without nagging breaks. According to the smartphone usage survey conducted in the second half of 2012, LTE had by then accounted for 44.6% of all smartphone users, up 15.9% over the first half of 2012 (28.7%), whereas 3G actually declined from 71.3% to 55.4%. And competition for LTE subscribers will surely be-come fiercer when USIM (Universal Subscriber Identity Module) portability, – currently allowed only for 3G cell phones – is allowed for LTE smartphones starting on November 1, 2013.The spread of smartphones and full-scale provision of LTE services is segueing into the spectrum war among mobile carriers. As LTE subscribers average 1.84GB of traffic per month, which is about 1.6 times more than

for a 3G subscriber, it is very important for providers to get a good frequency band to provide high-quality service. In particular, open debate between KT and SK Telecom concerning the allocation of the 1.8GHz band, which has been used by the military, is intensifying. Meanwhile, in May of 2013 Japan’s KDDI unveiled its LTE-Advanced (LTE-A) technology, which has a transmission efficiency three times higher than the current LTE standard. So there is clearly a lot of competition in developing new mobile communication technology.

Opening the LTE era

04

| Internet News |


The KCC first announced its plan to limit the use of resident registration number (RRN) on the In-ternet in August 2012. By February of 2013, a 'clean Internet' without resident registration num-bers being used (and thereby making users vulnerable to a privacy breach) was realized. Users can now use their i-Pin, cell phone numbers and certificates instead of their RRN when signing

up for any kind of membership via the Internet. Service providers now have subscribers sign up to services by using e-mail and social network accounts. No RRNs can be collected or stored anymore.

The previous string of leaks and thefts of personal information and RRNs were attributed to the gov-ernment policy that required the storage of RRNs when signing up for Internet services.

After realizing the consequences, the Government banned, in 2012, the collection of RRNs by websites having more than 10,000 daily visitors except some sites legally required to collect personal information such as for Internet banking. The ban will be extended to all websites in 2013 and use of RRNs of exist-ing subscribers will be completely scrapped by 2014. As for financial sites, to which this law is not applied, the Financial Services Commission and the KCC are consulting with each other on whether to ban RRNs for non-financial business. However, despite the law being enacted, there was a scam in which 170,000 resident registration numbers were purchased and then used for signing up at websites to collect signup points. The perpetrator illegally gained hundreds of millions of Korean Won. So it is clear that leaks and theft of previously collected RRNs remain a potential problem that can happen at any time.

Internet without resident registration numbers

05

The 18th presidential election in 2012 showed just how much the focus of online campaigning is shifting to mobile SNS channels. In particular, the SNS election campaigns, which previously fo-cused on voters in their 20’s and 30’s, was extended in the 18th presidential election to include in their 50’s and 60’s, so we can see that SNS strategies of election campaigns will surely grow in im-portance. Until 2010 election campaigns were run with a focus on social networks, text messages and Twitter, but now the channels have been diversified to include podcasts, YouTube videos and mobile messengers starting with ‘Naneun Komsuda’ in 2011. In particular, Internet and SNS campaign tactics have become a crucial means of communication for all political parties in 2012.The greatest battlefield in SNS election campaigns, however, is still Twitter. Of all postings about candidates, messages equiva-lent to 10 times the sum of all messages in online news, cafes and blogs were found to have spread through Twitter. The daily

average number of tweets related to the presidential election during the 90 days prior to the election was 259,000, up 175% as compared to the number of tweets during the 90 days prior to the general election in April 2012. If one user tweeted about 4.1 times a day during the 2012 general election, the same user tweeted 8.7 times a day on average in the 2012 presidential election. However, there have been concerns about SNS being used to manipulate public opinion, and most politicians used SNS only as a means of one-way PR rather than as a means of two-way communication, so there is concern that this will turn out to be a fad.

Influence of SNS on elections

06


If the controversy over network neutrality between mobile carriers and content providers started in earnest in 2011, with concerns expanded to include platform neutrality and de-vice neutrality in 2012. Platform neutrality means that companies with smartphone plat-forms like Apple, Google, MS and Samsung Electronics should not take advantage of their

superior position to discriminate against other hardware and content providers. If neutrality is damaged, it may lead to unfair competition between companies and infringement of con-

sumers’ right of choice.In particular, with the mobile platform market primarily divided into the Google Android camp vs.

the Apple iOS camp, with Microsoft’s Windows claiming a small but growing fraction, Samsung Electronics decided to join the fray with its own OS called Tizen, making competition in this field tougher than any other. According to Matrix, a market researcher, Google’s Android OS accounted for 88.7% of the Korean market in 2012, up 6.2% over the previous year. The problem is that Google is asking that its search service be used preferentially with profits distributed in a way favorable to them. Apple also has issues such as not approving apps running counter to its service policy or intentionally delaying approval if they deem an app somehow not helping their ecosystem. Some say that pre-installing the applications of the mobile carriers or manufacturers on smartphones also hurts neutrality and limits the market freedom of businesses.

Mobile OS competition and platform neutrality

07

As the Park Geun-hye administration took office in 2013, one of the top policy agendas being implemented is the formation of a 'job-oriented creative economy'. The gist is to increase growth potential and create good jobs through convergence between industries and new and advanced technologies. To this end, the Government established the following strategies with a focus on three keywords, jobs, science and technology: creating the ecosystem for a creative economy, rein-forcing growth engines for job creation, making SMEs key players in the creative economy, devel-opment of science and technology through ingenuity and innovation, establishment of a disciplined market economic order, and operating the economy to support growth.Both private and public sectors are working hard to lay the foundation for startups, mutual prosperity and job creation. After the launch of the Global K-Startup program in April 2012, with its plan to foster tech firms in Korea, no fewer than 30 projects

deemed to have potential were selected through an initial idea contest of which 15 finalists received extensive support to startup and expand globally. With the launching of the new administration in 2013, this trend was further bolstered. D Camp, a startup center funded by venture investors, was soon established. Sam-sung Electronics invested KRW1.5 trillion to fund its Samsung Science & Technol-ogy Foundation. Kakao joined with the Small & Medium Business Administration and raised KRW 30 billion for its youth startup fund. Enterprises are now joining one after another.

Creation of ICT jobs through a win-win economy

08

| Internet News |


In April 2011 Apple filed a patent lawsuit against Samsung Electronics that ignited discus-sions throughout the global IT industry about what soon became a patent war that spread to more than twenty countries and involved several companies. The patent lawsuit between Apple and Samsung Electronics proved just how important seizing the initiative in the mo-

bile market is. Apple initially filed a slew of patent lawsuits against Samsung Electronics relating mostly to

design dress concerning UI features and even the shape of the exterior of its devices (iPhones and iPads). Samsung retaliated by filing countersuits arguing that Apple infringed on its 3G-related

wireless communication patents. Courts in the US, Germany and Holland sided with Apple, whereas courts in the Japan, Korea and the UK decided in Samsung Electronics’ favor. And everything is still topsy-turvy. As recently as June 2013, the US ITC decided that Apple violated Samsung Electronics’ patents and declared a ban on imports of some Apple products made in China into the US. But President Obama vetoed the ban in October.To make matters worse, Samsung Electronics and LG Electronics began arguing in March 2013 over the infringement of iris recognition patent technology. And Google and Microsoft are still involved in 5 patent lawsuits initiated in 2010 related to the X-Box.

Patent wars among IT giants

09

The market for wearable devices is currently divided into glasses as exemplified by Google Glass, and watches, which Apple, Microsoft, Samsung and LG have all indicated they would launch. Sensors for shoes (i.e. pedometers) and healthcare devices (i.e. heart rate monitors) are other categories in which all the major players (Apple, Google, Garmin, Samsung) including sports ap-parel companies (like Nike) are keenly interested in. With the launch of some devices, a variety of useful apps are being released, and as the supplier ecosystem is being created, new market op-portunities are opening up.According to market research firm Juniper, the wearable computing market, which was worth about USD 800 million in 2012, is expected to grow by nearly twice to USD 1.5 billion in 2014. In particular, Bluetooth (v4.0) near field com-munication technology is now going beyond cell phones to be equipped in everyday devices like toothbrushes and shoes.

The number of devices with built-in Bluetooth functions is expected to increase to 27 billion in 5 years. And the age of the Internet of Things will soon arrive. The advance of home appliance manufacturers into the smart consumer electronics market is also gaining traction. In November 2012, for example, Samsung Electronics announced its plan to connect its line of refrigerators, washing machines and TVs to their smartphones and tablet PCs, so soon they will all be controllable from anywhere and at anytime. LG Electronics has also released a line of smart washing machines equipped with NFC technology.

Growth of smart home appliances and wearable devices

10


1. Mobile Internet 20

2. New Internet Industry 22

3. Creative Economy and the Internet 24

1. Internet Infrastructure 28

2. Internet Resources 35

3. Internet Technology 38

1. Internet Services 46

2. Internet Businesses 54

3. Internet Convergence Services 59

4. Internet Services in the Public Sector 63

5. Internet and Society 68

1. Internet Industry and Usage 70

2. Promotion of the Internet 77

3. Internet Related Laws 88

4. International Cooperation 91

List of ISPs 96

Abbreviations 100

CONTENTSCONTENTS

Special Report

1. Mobile Internet

2. New Internet Industry

3. Creative Economy and the Internet

20 / Special Report

1. Mobile Internet

Since the introduction of smartphones the focus of the mobile communication market has

quickly shifted from voice communication to Internet access with data traffic growing ex-

ponentially worldwide. In the domestic mobile communication market, smartphones were in-

troduced in the second half of 2009 and the focus of the market quickly changed to the mo-

bile Internet in 2010 when unlimited data rate plans were released.

To efficiently accommodate the exponential growth of data traffic and identify new business

models, mobile carriers are now building out 4G LTE (Long Term Evolution) networks. In Korea,

LTE was first launched in July 2011 and became so popular that by May of 2013 58% of all

smartphone subscribers were using LTE. Domestic carriers have been concentrating on cover-

age expansion of their LTE services.

Carriers also introduced multicarrier technology in 2012 which greatly helped improve aver-

age throughput in congested areas. Multicarrier is a technology that allows for switching to

another frequency when a signal cannot be allocated from a base station due to congestion.

In 2013 the hottest topic of LTE technology was LTE-Advanced. According to the 3GPP

REL.10 standard confirmed in June 2011, this technology increases throughput to a max. of

300Mbps. In relation to LTE-A, CA (Carrier Aggregation) technology has been in the limelight.

Recently efforts have been made in Korea to commercialize CA, which is seen as an essential

technology for LTE-A as it aggregates spectrum. LTE can provide 150Mbps throughput but re-

quires up to 20MHz of spectrum to achieve this. Most carriers around the world do not have

a 20MHz band in a continuous frequency band. To address this weakness, CA binds non-con-

tinuous frequency bands to put two carriers together to provide better service for the end-user.

In addition to CA, UL (Uplink)-MIMO technology is also being considered as it makes it possi-

ble to use two antennas to transmit data from the terminal to the base station to improve

throughput.

In July 2011, Korea became the 17th country in the world to provide commercial LTE service,

with SK Telecom and LG U+ launching services in Seoul first then quickly expanding to sur-

rounding areas. In January 2012 when PCS 2G service was terminated, KT launched its LTE

service in Seoul. At first network coverage was small and the number of LTE handsets was few,

so growth of the service was somewhat slow. But as LTE smartphones were rolled out in

Special Report /21

October 2011, it began to grow rapidly so that now the number of LTE subscribers is increas-

ing at the fastest pace in the world.

In December 2011, 5 months after the first launch of LTE service, the number of LTE sub-

scribers rose to 1.19 million and 3 million in March 2012, and exceeded 10 million in August

2012. In December 2012, LTE subscribers accounted for almost half of all smartphone sub-

scribers, i.e. 15.81 million. The number of LTE subscribers increased by over 10 times in just

one year and it continues to increase sharply, accounting for 30% of all mobile communication

subscribers.

Consumer preference for fast speed lead mobile carriers to aggressively build out their na-

tional LTE networks. This together with the government’s promotion policy has combined to

see Korea build an LTE-based broadband wireless Internet that is currently the fastest in the

world. In the first half of 2012, the national LTE network was also installed in major rural

communities, and LTE coverage was extended to major islands and offshore areas. By April

2013, the number of LTE subscribers exceeded 20 million, and is expected to exceed 30 mil-

lion by the end of 2013.

【Figure Special Report 1-1 】No. of LTE subscribers (Unit : 10,000 persons)

MSIP, wired and wireless communication service subscribers statistics, 2013

22 / Special Report

2. New Internet Industry

The ‘new Internet industry’ is defined as the infrastructure technology that can help imple-

ment ideas wisely by leveraging big data and convergence with various industries (Internet of

Things) in a customized manner (Future Internet) and inexpensively through cloud services.

【Figure Special Report 2-1 】Scope of the new Internet industry

MSIP, New Internet industry development plan, 2013

The global Internet of Things market is forecast to grow from KRW 27 trillion in 2011 to

KRW 47 trillion in 2015, and the domestic market is expected to grow from KRW 414.7 billion

in 2011 to KRW 1,347.4 billion in 2015.

【Table Special Report 2-1 】Global and domestic Internet of Things market forecast

Classification 2011 2012 2013 2014 2015 CAGR

Global market(KRW1 trillion)

26.8 29.2 35.6 42.5 47.0 11.9%

Domestic market(KRW100 million)

4,147 5,674 7,201 10,338 13,474 26.6%

※ CAGR : Compound Annual Growth Rate MSIP, New Internet industry development plan, 2013

Special Report /23

As the center of ICT mega trends, - such as smart devices, ‘big data’ and social media -

cloud computing is unquestionably the driving force behind the evolution of ICT. Enterprises

are increasing their use of cloud services to more efficiently utilize their IT resources.

Enterprises are increasingly finding it more productive and convenient to connect to and utilize

ICT resources in the cloud when needed instead of owning them. This naturally promotes in-

novation in the way we work as it is now possible to use smartphones and tablet PCs regard-

less of time or location. The global cloud computing market is forecast to grow from KRW 34

trillion in 2011 to KRW 92 trillion in 2015, and the domestic market is expected to grow from

KRW 160.4 billion in 2011 to KRW 735.7 billion in 2015.

‘Big data’ is also emerging as a new paradigm that can change the foundation of manage-

ment as it will not only improve productivity and competitiveness, but also find new business

opportunities. In the smart age as IT becomes an integral part of our daily lives, our social ac-

tivities, things, ‘life-log’ and personal data will all be combined seemingly seamlessly, thus the

influence of big data will only increase. Current forecasts see the global big data market grow-

ing from KRW 55 trillion in 2011 to KRW 194 trillion in 2015, while the domestic market is ex-

pected to increase from KRW 90.4 billion in 2011 to KRW 301.8 billion in 2015.

The Internet is not simply changing the lives of individuals, but also fostering a wide range

of influences on the entire nation as a basic infrastructure of the industry. Especially, 10 years

after the high-speed Internet revolution of the 2000’s, the wired communication network has

proven to be a powerful engine for national competitiveness and job creation. The global

Internet market is forecast to grow from KRW 2,190 trillion in 2012 to KRW 2,431 trillion in

2016, whereas the domestic market is expected to grow from KRW 37.7 trillion in 2012 to

KRW 45.35 trillion in 2016. The ‘Future Internet ’ is forecast to evolve from being a hard-

ware-oriented infrastructure to one centered on software as a result of the appearance of new

technologies like the SDN (Software Defined Network), which controls the network flexibly and

efficiently via software, and NFV (Network Function Virtualization).

24 / Special Report

Strategy Tasks

Creating an ecosystem where creativity is fairly compensated for and in which it is easy to

launch a new businessCommercial

Increasing investments in creative ideas and technologies

Creating conditions for easily launching a new business

Turning ideas and technologies into intellectual properties and promoting their protection and utilization

Initiating catalysts for commercializing creative assets

Building a startup safety net for providing a second chance

Making venture firms andSMEs leaders in the creative

economy and reinforcingglobal expansion

Laying the foundation for the growth of venture firms and SMEs

Helping venture firms and SMEs explore global markets

Promoting win-win cooperation between large corporations and SMEs

Resolving problems of venture firms and SMEs, e.g. manpower shortages

Building growth engines to create new industries and

new markets

Building new growth engines for existing industries by combining science and technology with ICT

Fostering new SW and Internet-based industries and high-value-added content industries

Creating new markets based on people-oriented technological innovations

Exploring new markets by finding and fostering promising new industries of the future

Promoting industrial convergence and market creation by rationalizing regulations

3. Creative Economy and the Internet

The government has defined the creative economy as ‘a new economic strategy for creating

good jobs by combining the imagination and creativity of citizens with science, technology and

ICT to create new industries and markets, and strengthening existing ones’.

In June 2013, the Korean government announced its ‘creative economy realization plan’,

which consists of 6 strategies and 24 tasks for realizing three key goals : creation of new jobs

and markets, strengthening the global leadership of the creative economy, and realizing a so-

ciety where creativity is valued and fully utilized.

【Table Special Report 3-1 】6 strategies for fostering a creative economy and tasks

Special Report /25

Fostering global-minded creative manpower with

dreams, talent and entrepreneurship

Fostering more convergence-oriented creative manpower

Expanding education for promoting entrepreneurship

Helping creative manpower go overseas then return to Korea

Reinforcing science, technology and ICT innovation competency, the foundation of the creative

economy

Improving the R&D system to reinforce potential and businesses

Reinforcing ICT innovation competency to accelerate the creative economy

Reinforcing industry-academia-research institutes-regional cooperation with a focus on job creation

Reinforcing the role of science, technology and ICT in solving global problems

Promoting a creative economy culture shared by citizens and

the government

Promoting a creative culture enabling creativity and imagination to be manifested

Convergence between public resources and ideas of citizens through government 3.0

Innovating how the government works to realize a creative economy

MSIP, et al., creative economy realization plan, 2013

Recognizing the limits of its catch-up strategy of the past 40 years, Korea has announced

that it would switch to the economic model of advanced countries like the US, the UK and EU

for creating markets and jobs. If this creative economy is compared to the existing creative

economy, the inputs (i.e. creativity and imagination) and the policy goals (i.e. revitalization of

the economy and job creation) are similar, but specific means and directions are a bit different.

If the means of the existing creative economy are the arts or culture industry and their con-

vergence with ICT, the new means of the Park Geun-hye administration’s creative economy are

utilization of science, technology and ICT, which are our strengths, and inter-industrial con-

vergence and convergence between industry and culture. Also, the government is emphasizing a

‘startup economy’ based on the Israeli-style investment system, as represented by the Yozma

fund.

Looking at the examples of the creative economy presented recently by the government, it is

a concept that encompasses the platform economy, the app economy, the startup economy,

the experience economy, the service economy, the digital economy and the knowledge

economy. One thing we should keep in mind regarding the fostering of new industries for job

creation is that an important feature of the Park Geun-hye administration’s creative economy

policy includes ‘convergence creation’, which is understood as the combining of various kinds

of knowledge and assets that Korea has accumulated to create new values.

Recently Japan’s Nomura Research Institute (which was the first to mention the ‘creative in-

dustry’ in 1990) presented its current vision of a creative society as being an advanced in-

26 / Special Report

dustrialized society that accommodates computers and network-based information, develops

them in a harmonious way, and is powered by revolutionary energy sources. Creation in the

creative economy is seen as a process that creates new values by looking to the past and con-

necting to the future, in other words, the past and future will not be disconnected.

Looking at the differences among the components of the existing creative economy, the crea-

tive class includes not only general experts, but also all components of the state, such as in-

dividual citizens, enterprises, government and civil society, and accordingly, the scope of spa-

tial policy has been extended from cities to the state, and the core areas were expanded from

culture and art to science and technology. Furthermore, unlike existing countries where the

creative industry is fostered as one of several growth engines, the scope of the creative in-

dustry includes all growth engines and industries with the aim of creating new industries and

jobs based on convergence among science, technology and ICT, inter-industrial convergence,

and convergence between industry and culture. In particular, unlike the UK and Japan, the

agency in charge in Korea is the MSIP, which emphasizes a contents-oriented creative industry

and ICT convergence. From the viewpoint of the expansion or evolution of the existing creative

economy, the government is emphasizing an ecosystem-centered creative economy, e.g. start-

ups and venture firms, cooperative enterprises, intellectual properties, knowledge buildup/ex-

pansion, Internet and ICT, and formation and promotion of the ecosystem for creating new

businesses.

In accordance with the creative economy strategy laid out in June of 2013, the shape of the

creative economy will be materialized by the 60 or so follow-up measures to be announced by

the end of 2013 and amendment of over 40 laws. Most importantly, however, the success of

the creative economy depends on its sustainability, and its need to fit the realities of Korea.

Also, efforts must be made to explore areas of science as yet not ventured into, and discover

and foster new technologies and creative industries to be the first movers in the global

market.

Part 1. Infrastructure /27

Part 1. Infrastructure

1. Internet Infrastructure

2. Internet Resources

3. Internet Technology

28 / Part 1. Infrastructure

1. Internet Infrastructure

A. Backbone Networks

1) IX (Internet eXchange)

These days the Internet is used as a medium for distributing vast amounts of information

and connecting diverse users. To achieve this there must be direct and indirect connection

among ISP’s that provide connection services. As Internet use has increased, many ISP’s have

come into being, and if there are many ISP’s, excessive line costs are incurred and too many

lines will increase investment costs and traffic. To ensure efficient networking, the IX (Internet

eXchange) has appeared.

The IX is an Internet interworking service for efficient traffic communication between ISPs.

For the purpose of connecting ISPs, each provider (ISP, etc.) interfaces its lines to major IX

NOCs (Network Operations Center) so that line costs are lowered and network paths provided.

Looking at the IX operations in Korea :

∙ the KTIX is connected to 18 ISPs and 2 IXs (total connection capacity approx. 1,804Gbps),

∙ the DIX is connected to 30 ISPs and 2 IXs (total connection capacity approx. 1,500Gbps),

∙ the SKBIX is connected to 12 ISPs and 3 IXs (total connection capacity approx. 1,795Gbps),

∙ the KINX is connected to 15 ISPs and one IX (total connection capacity approx. 371Gbps), and

∙ the 6NGIX, which operates on a nonprofit basis for IPv6-based traffic exchange, is con-

nected to 5 ISPs (total connection capacity approx. 4Gbps).

【Table 1-1-1 】Connections by IX (as of April 2013) (Unit : ea., Gbps)

Classification IX Operating agency No. of connected ISPs Total connection capacity

Commercial

KTIX KT 18 1,804

DIX LG U+ 30 1,500

KINX KINX 15 371

SKBIX SK Broadband 12 1,795

Nonprofit 6NGIX KISA 5 4

KISA


2) Commercial Internet Networks

A total of 119 Korean Internet commercial services, including Kornet (KT), Boranet (LG U+),

B-Net (SK Broadband), Sejongnet (Sejong Telecom) and Dreammax (Dreamline), receive IP ad-

dresses from KISA, and provide services such as leased lines and high-speed connectivity for

institutions and individuals using the Internet.

KORNET is a domestic infrastructure network for Internet connection. This high-speed in-

formation network is short for the ‘KORea-telecom-interNET’. From June 1994 until now,

KORNET has installed 2.5G~10Gbps high-speed networks in 90 or so locations across the

country, and built 20 or so international lines including the 140Gbps line connecting with the

US and provided service.

BORANET is the Internet communication network of LG U+. It launched a service to lease

Internet lines for enterprises in October 1994, and then extended the service to home users.

It also provides high-speed Internet customers with triple play service, i.e. voice, Internet and

broadcasting.

B-Net is the Internet network of SK Broadband. It launched commercial service in April 1999,

introduced Korea’s first IPTV service (Btv) in July 2006, and then released the first TPS product

in Korea (B Set) in January 2007. Currently 130 or so nodes are accommodating subscriber

section traffic around the country, and B-Net is connected to numerous foreign and major

Korean service providers to provide high-quality Internet service.

There is currently a total of 8 domestic submarine cable relay stations in Korea (Busan,

Geoje, Taean, Jeju, Goheung, Namhae, Hosan and Ulleung) and a total of 9 international sub-

marine cables. The total capacity of the entire network is about 27Tbps.

【Table 1-1-2 】Domestic and overseas submarine cables (Unit : bps, km)

Classification Cable name Construction sectionSystem capacity

DistanceYear

opened

Global

FEA13 countries including Korea - Japan - Hong Kong -

Middle East - Europe5G×2 29,000 1997

SMW- 335 countries including Korea - Northeast Asia -

Southeast Asia - Middle East - Europe160G 39,000 1999

CUCN Korea - US - China - Japan - Taiwan - Guam 20G×4 30,000 2000

APCN2Korea - Japan - China - Hong Kong - Taiwan -

Singapore - Malaysia5.2T 19,000 2001

KJCN Korea - Japan 2.88T 500 2002


EAC Korea - Japan - Taiwan - Hong Kong 2.56T 10,600 2001

C2CKorea - Japan - Taiwan - China - Hong Kong -

Taiwan - Singapore - Malaysia7.68T 17,000 2002

FNAL Korea - Japan - Taiwan - Hong Kong 2.4/3.8T 9,600 2002

TPE Korea - China - Taiwan - US 2.56T 18,000 2008

Korea

Ulleung - Land Ulleung - Hosan 2.5G 159 1993

2 Jeju - Land Jeju - Goheung 2.5G×4 191 1996

3 Jeju - Land Jeju - Namhae 2.5G×2 236 2000

KT, International submarine optical cables, 2013

Korea also operates a fleet of geostationary satellites : Mugunghwa Satellite No. 5,

Mugunghwa Satellite No. 6, Condosat Nos. 1 and 2 (ktsat), which are used for communication

and broadcasting, MBSAT for DMB broadcasting (SK Telecom), and the Communication, Ocean

& Meteorogical Satellite (COMS). Korea also has low earth orbit satellites : Arirang Nos. 2 and

3 for observation. Earth stations are located in Seoul, Yongin, Geumsan, Boeun, Asan and

Yeoju, and satellite control centers are in Yongin and Daejeon. These earth stations aim at

such satellites as INTELSAT, INMARSAT, Asiasat, SES, JSAT, Apstar, etc.

【Table 1-1-3 】Domestic Mugunghwa satellites (KOREASAT)

Classification Mugunghwa #3 Mugunghwa #5 Mugunghwa #6 Condosat-1 Condosat-2

Orbit (Tokyo) 116° 113° 116° 75° 75°

Date launched 1999. 9. 5 2006. 8. 22 2010. 12. 30 1999. 9. 26 2013e

Launched by Ariane Sea Launch ArianeInternational

Launch ServiceAriane

Frequency band Ku/Ka Ku Ku C C, Ku

Polarization(for communication)

dual polarization dual polarization dual polarization dual polarization dual polarization

Beam coverage Korean peninsula

Korean peninsula, Japan, the

Philippines, Taiwan, Eastern China

Korean peninsulaAsia/Middle East/Africa

Asia/Australia

※ e : estimated KT, domestic satellite operations, 2013

※ Ku/Ka band : frequency band of the microwave used for satellite communication and satellite broadcasting

(Ku band : 12~18GHz or 10~18GHz, Ka band : 27~40GHz or 20~30GHz)

※ Dual polarization : uses both vertical and horizontal polarization of the electromagnetic wave


B. Subscriber Networks

1) Fixed Line Networks

Korea completed its government-led BcN project in 2010, six years after it commenced in

2004. The number of BcN subscribers using a connection faster than 50Mbps now exceeds

14.82 million, over achieving the original goal of 12 million by more than 20%. The BcN proj-

ect has enabled practically all cities, towns and rural communities to use 50M~100Mbps FTTH

and HFC-based broadband Internet services. For small farming and fishing villages with fewer

than 50 households, for which access to broadband Internet service was not commercially

practical, the farming and fishing village broadband subscriber network promotion project has

been operated since 2010. The FTTH-based broadband networks were implemented for about

38% (5,002) of 13,217 villages in total by December 2012. Also, the Giga Internet project,

which was launched in 2009, will offer the Giga Internet which is10 times faster than BcN, of-

fering speeds between 100Mbps and 1Gbps.

Aiming at more than 90% of Giga coverage across the country by 2017, Korea is now devel-

oping and demonstrating technologies for enhancing next-generation subscriber networks, such

as Giga Wi-Fi, 10GE-PON and the RF Overlay-based Giga Internet.

【Table 1-1-4 】Giga Internet implementation goals by year (Unit : %)

Year Early 2013 2013 2014 2015 2016 2017

Giga Internet penetration ratio

10.4(for 84 cities)

15.0 25.0 40.0 60.0 90.0

※ Number of households that can use Giga Internet : National Information Society Agency, Giga Internet enhancement stratege, 2013

The number of households that have facilities like the office equipment and

lines necessary for provision of Giga Internet service and can be serviced if applied for

※ Percentage of implemented (%) : Number of households that can use Giga Internet / total number of households

2) Wireless Networks

As smartphones and tablet PCs have become common place, it has become routine to con-

nect to the Internet from anywhere and at any and all times. To handle excessive traffic in

WMAN networks like WCDMA or LTE, domestic mobile carriers are actively installing Wi-Fi APs

(Access Point). To date, the three mobile carriers in Korea have installed more than 400,000


APs, and general users are increasingly installing Wi-Fi APs in their homes or offices to reduce

costs and ensure faster connection. According to a March 2013 study released by IDC, Wi-Fi

services of global carriers are forecast to record about USD 4.2 trillion of sales in 2013.

As APs have proliferated, more than necessary were installed in some areas causing signal

interference and deteriorating transmission speed. To address this, starting in 2012, the gov-

ernment has been inducing the three major domestic carriers to jointly install APs in public

places so that more than 2,000 APs have been installed across the country, and by the end of

2013 an additional 2,000 APs will be installed in heavy traffic areas and inner city areas

around the country so that the public can have better access to the Internet.

In March 2013, KT and SK Telecom commercialized Gbps Wi-Fi service utilizing IEEE

802.11ac systems. As there currently are not many terminals with the IEEE 802.11ac chipset,

and APs are installed in a limited number of places, the actual usage rate is not very high. But

as the number of smartphones and tablet PCs supporting IEEE 802.11ac will surely increase

over time so will the number of APs expand in tandem.

Traffic per LTE subscriber in Korea is 1.6 times that of WCDMA subscribers, and data traffic

is increasing rapidly as the number of LTE subscribers is increasing sharply. So expansion of

the LTE bandwidth is being actively discussed. Unlike 3G, LTE transmission speed will improve

proportionally as bandwidth is increased. In other words, if the current 10MHz width of LTE is

increased to 20MHz or more, the transmission speed of LTE will be doubled. The government

finished auctioning the LTE spectrum in the 1.8GHz and 2.6GHz band in August 2013, but

when and how to allocate the spectrum adjacent to the 1.8GHz band owned by KT has become

a heated issue. KT wants to put this band up for auction and convert the 20MHz band into LTE

broadband, whereas SK Telecom and LG U+ are asking that the allocation be postponed so

that the three mobile carriers can start with LTE broadband.

As the use of multiple devices per person and M2M is firmly established, and demand for IP

addresses increases, KISA is trying to make IPv6 service available for LTE and Wi-Fi. This proj-

ect started in July 2012 with KISA and SK Telecom bearing the expenses. The IPv6 infra-

structure will be implemented on the wireless network of SK Telecom, and various kinds of

verification will be conducted to avert problems likely to happen when IPv6 is applied. This

project is also expected to greatly invigorate IPv6-based mobile services in the future.


C. Research Networks

1) Domestic Networks

As of June 2013, KOREN’s backbone has been providing 10G~60Gbps backbone lines among

6 nodes (including Gwangju~Jeju 1G) and 60 or so 1G~10Gbps subscriber lines. The backbone

transmission network consists of a single backbone network based on domestically produced

intelligent transmission equipment, the ROADM (Reconfigurable Optical Add-Drop Multiplexer).

The entire nation is segmented into three ‘multi-rings’ (the metropolitan ring, the Yeongnam

ring, and the Honam ring). If a problem occurs in the transmission network, the signal will au-

tomatically detour to another redundant route to prevent service interruption.

To make the research network more useful to future network research projects, e.g. DCN

(Dynamic Circuit Network) and open flow, mesh topology was added to the Daejeon-centered

star lamda (λ) test network. Optical cables were connected so that direct connection can be

made to each node without going through the Daejeon ROADM, and the viability of the research

and test network was improved. The test network was also improved for easier direct connection.

In 2012, KREONET built and successfully operated its 100Gbps high-performance infra-

structure, and designed a high-bandwidth advanced research service network, to which future

research network technology can be applied for advanced research and applications in the

metropolitan areas. With this infrastructure, KREONET will provide various researchers with fu-

ture network technology by 2015 that can link science and technology facilities, super-

computers and e-Science application resources around the country in an optimized way.

KREONET is also building and developing an advanced collaborative environment based on the

research network so that domestic and overseas researchers can more efficiently conduct

large-scale joint science and technology projects.

2) International Networks

TEIN (Trans Eurasia Information Network) is an ASEM (Asia Europe Meeting) cooperative proj-

ect to promote international joint ICT research between Asia and Europe. It is an international

research and test network connecting Asia and Europe. Currently, the 4th TEIN project is in

progress. The EC (European Commission) has established an Asia-centered TEIN management

institute for maintaining and managing long-term sustainable TEIN projects during the TEIN-4

period (January 2012~December 2015) and the establishment of the TEIN cooperation center at


the 8th ASEM summit held in Belgium in October 2010. The TEIN Cooperation Center has been

fully operational since 2012 with financial support from the EU and participating countries.

The APII (Asia-Pacific Information Infrastructure) testbed is an APEC (Asia Pacific Economy

Cooperation) project established for co-prosperity of the Asia-Pacific region. In 1998 the

Korea-Japan testbed was started with lines connecting China, Japan, Singapore and the US.

Currently, a 10Gbps line is being operated between Korea and Japan, which is used for tele-

medicine, joint lectures, network monitoring, and future network-related studies.

GLORIAD is a high-speed global network that makes it possible to conduct studies by han-

dling various advanced application collaborative research and transmitting large amounts of

data generated from research systems and gigantic scientific experiments. It is a key compo-

nent of the US NSF International Research Network Connections (IRNC). 14 countries, including

Korea and the US, are linking their national research networks with the aim of supporting in-

ternational collaborative research in science, technology and education. As a core member of

GLORIAD, the Korea Institute of Science and Technology Information has been operating the

Korea-US and Korea-China international research networks with the support of the Ministry of

Education since 2005 with the aim of supporting global science and technology research

collaboration. Participants in GLORIAD are Canada, China, Denmark, Egypt, Finland, Holland,

Iceland, India, Korea, Norway, Russia, Singapore, Sweden and the US.

【Figure 1-1-1 】GLORIAD configuration and interworking

GLORIAD, www.gloriad.org


2. Internet Resources

A. IP Addresses and AS Numbers

Korea has been making efforts to stably secure IP addresses and AS numbers. As of the end

of April 2013, Korea has 112,261,632 IPv4 addresses, No. 6 in the world, and 5,231 IPv6 ad-

dresses (/32, 296), No. 8 in the world. Korea has 1,016 AS numbers making it No. 11 in the

world.

【Table 1-2-1 】Domestic and overseas Internet address resources (as of April 30, 2013)

IPv4 addresses by country IPv6 addresses by country As numbers by country

Rank Country Count Rank Country Count(/32) Rank Country Count

1 US 1,567,909,248 1 US 27,377 1 US 22,295

2 China 330,188,032 2 China 14,597 2 Russia 4,911

3 Japan 202,074,624 3 Germany 11,477 3 Ukraine 2,082

4 UK 124,069,520 4 Japan 11,238 4 Brazil 1,998

5 Germany 119,605,096 5 France 9,080 5 UK 1,904

6 Korea 112,261,632 6 Australia 8,614 6 Poland 1,834

7 France 95,823,632 7 EU 6,197 7 Germany 1,672

8 Canada 80,466,176 8 Korea 5,231 8 Canada 1,615

9 Brazil 58,245,888 9 Italy 5,104 9 Rumania 1,507

10 Italy 53,129,120 10 Argentina 4,253 10 Australia 1,467

11 Australia 47,824,640 11 Egypt 4,106 11 Korea 1,016

12 Russia 45,594,144 12 UK 2,501 12 Japan 998

13 Holland 45,407,744 13 Poland 2,471 13 France 964

KISA


Rank Country Domain No. of registration Rank Country Domain No. of registration

1 Germany .de 15,347,959 16 Austria .at 1,197,314

2 UK .uk 10,153,840 17 Korea .kr 1,094,431

3 Holland .nl 5,155,652 18 Czech .cz 1,020,968

4 Australia .au 2,529,873 19 Hungary .hu 625,797

5 Italy .it 2,509,201 20 Norway .no 572,660

6 France .fr 2,537,351 21 Mexico .mx 631,143

B. Domains

There are two kinds of top national domains in Korea : ‘.kr’ and ‘.한국’. The ‘.kr’ domain was

launched as a three-tier system such as ‘abc.co.kr’ when introduced in 1986. The two-level

‘Korean alphabet.kr’ system was introduced in 2003, and the two-level English system, e.g.

‘abc.kr’, was introduced in 2006. By the end of December 2012, a total of 1,094,431 ad-

dresses had been registered in the ‘.kr’ domain.

Meanwhile, according to the demand of non-English speaking countries that want to use

their own languages for a domain, ICANN (Internet Corporation for Assigned Names and

Numbers), which establishes the global policy for the world’s Internet addresses, finalized its

plan in October 2009 to introduce multi-language top national domains. In response, the KCC

decided to use the Korean characters of ‘.한국’ for the top national domain. In February 2011,

ICANN delegated KISA as the authority responsible for managing the ‘.한국’ domain, and regis-

tration for ‘.한국’ domain names commenced on May 25, 2011.

To smoothly introduce the ‘.한국’ domain and prevent any confusion or conflicts likely to oc-

cur in the early stages, KISA handled the assignment of domain names in three pre-launch

stages. First instituted was a registration period during which government and public in-

stitutions were given the opportunity to register domain names first, then trademark holders

were added, followed by a lottery registration period during which registrants were given one

registration opportunity with those having identical requests being determined by lottery. The

pre-launch registration period started on October 6, 2011 and lasted 19 weeks. After the do-

main was launched, as with the ‘.kr’ domain, domain names have been registered on a first-

come-first-serve basis.

【Table 1-2-2 】National domain names registered by OECD member countries (as of Q4 2012)


7 Poland .pl 2,409,039 22 New Zealand .nz 517,037

8 Canada .ca 2,026,372 23 Turkey .tr 322,602

9 USA .us 1,790,879 24 Finland .fi 311,312

10 Switzerland .ch 1,752,794 25 Greece .gr 300,000

11 Spain .es 1,623,754 26 Slovakia .sk 304,611

12 Belgium .be 1,356,732 27 Portugal .pt 235,699

13 Japan .jp 1,321,621 28 Ireland .ie 182,002

14 Sweden .se 1,277,816 29 Luxembourg .lu 73,027

15 Denmark .dk 1,213,717 30 Iceland .is 41,967

※ Greek data as of December 2009 KISA


3. Internet Technology

A. Technology Trends

5G refers to the fifth generation mobile communication technology evolution which is currently

under development. It refers to the move to go beyond the widely used 4G/IMT-Advanced standard.

Currently discussions on 5G-related international standardization are in the initial stage. In

January 2013, the UN International Telecommunication Union (ITU) started to discuss the vision

for 5G and dedicated spectrum for its implementation together with delegations of numerous

countries. Proposals for specific technical standards will be received during 2016, and efforts

are now being made to take the initiative at all levels.

The MSIP formed a 5G Forum involving industry, academia, research institutes and govern-

ment agencies on May 30, 2013 to take the initiative for shaping the global 5G market. The

MSIP is planning to establish its vision and technological innovation strategy for 5G service

through the 5G forum, and conduct R&D and standardization activities with regard to core 5G

technologies both at home and abroad. The forum consists of the Chairman Group, composed

of 9 institutions, including the Electronics and Telecommunications Research Institute, SK Telecom,

KT, LG U+, Samsung Electronics, LG Electronics, LG-Ericsson, KMW and DIO Interactive, an

Advisory Committee, a Steering Committee and four subcommittees (service, technology, spec-

trum and external cooperation).

Countries around the world are accelerating their efforts to develop and standardize 5G

technologies. In February (2013) China organized its government-led ‘IMT-2020 (5G) promotion

group’ for 5G research, while the European Commission decided to invest EUR 50 million this

year alone with the aim of commercializing the service by 2020. The UK is scheduled to invest

EUR 35 million to complete a ‘5G innovation center’ by 2015 where it will develop low-power

5G technology. As for Japan, NTT DOCOMO’s R&D Center is developing advanced 5G standard

technologies.


B. Standardization Trends

Internet standardization in Korea is mainly implemented by the TTA (Telecommunication

Technology Association) and IT standardization strategy forums. Internet-related IT standardization

strategy forums include the Future Internet Forum, the VoIP Forum, the Korea Ethernet Forum,

the Mobile Web Forum, the IPTV Forum Korea and the FN2020 Forum.

【Table 1-3-1】Key activities of the Internet-related IT standardization strategy forum

Name Key activities Website

Future Internet Forum

∙ Research on the standardization technologies regarding Future Internet in areas, such as Future Internet infrastructure, services, wireless, test-bed and policy areas

∙ Differentiation of standardization technologies through cooperation with TTA Future Internet Project Group (PG220) and expansion of the scope of activities and participating manpower

∙ International standardization activities (ISO, ITU-T, IETF/IRTF) related to the Future Internet

www.fif.kr

VoIP Forum∙ Standardization of connections to VoIP/MoIP service providers, such as

Internet phones and videophones∙ Activities related to ITU-T international standardization

www.voip-forum.or.kr

Korea Ethernet Forum

∙ IEEE 802’s role as the Mirror Forum in Korea - 802.3-based wired LAN/MAN3, 802.11-based wireless LAN/MAN11,

802.1 internetworking, and activities related to international stand-ardization, e.g. joint responses to/proposal of/reflection of the con-tributions of research organizations like the ITU-T and IETF

www.ethernet.or.kr

Mobile Web Forum

∙ Mobile OK-based mobile web standardization ∙ W3C mobile web international standardization ∙ Pilot service of mobile OK∙ Research on policies and technologies related to social network services

-

IPTV Forum Korea∙ Standardization of IPTV service and requirements∙ Activities related to ITU-T international standardization

www.iptvforum.or.kr

FN2020 Forum

∙ Presenting the development direction and evolution vision of the Future Network

∙ Identifying and presenting next-generation ultra-wide band network services and business models

∙ ITU-T, JTC1, 3GPP international standardization activities

www.fn2020.or.kr

KISA


C. Future Internet

The cooperation among industry, academia, research institutes and the Korean government

to enhance its image as an Internet power stands out. In various future Internet-related fo-

rums, academia, research institutes and industries are actively conducting research and en-

gaged in discussions. Particularly the KCC established its ‘Internet development plan for the

future’ in June 2011, and proposed five global future Internet tasks to be carried out by 2015.

In particular, in the smart network implementation plan, the optical wired and wireless net-

works will be expanded and redesigned for faster transmission of contents. Also, for research

on market-oriented technologies, an institute consortium of industry, academia and research

will be formed, and for global competitiveness, an open research system will also be

established. Additionally, to proactively respond to future Internet standardization efforts of

countries around the world, the standardization steps were defined specifically.

Furthermore, investments are actively being made in R&D to realize the future Internet. The

strategies include enhancing the wired and wireless networks to prepare for an explosion of

data traffic, and development of technologies necessary for fleet-type R&D and construction of

the KOREN-based smart Internet infrastructure. Various projects are underway such as the de-

velopment of SDN technology to reorganize the recent network market for early realization of

the future Internet and securing global leadership, development of the core technology for op-

tical transmission, and development of the wired and wireless equipment integrated control

and management system, and smart Internet technology.

Discussions for concrete pursuit of national master plans were also conducted. The MSIP

launched its ‘Future Internet Technology Business Council’ in April 2013 to develop future

Internet technology and lay a foundation for reinforcing the competitiveness of the industry.

Communication service providers, equipment manufacturers and academia are participating in

the council to foster a virtuous circle that will tie together future Internet R&D technology with

commercialization. This council is composed of industry, academic, research and government

experts, including the MSIP, KISA, the National Information Society Agency, the Korea

Communications Agency, and ETRI (Electronics and Telecommunications Research Institute)

Together they will conduct R&D and verification tests, and collect and exchange various opin-

ions on pilot projects and connection policies.


D. Cloud Computing

In May 2011, Korea reflected upon the rapidly changing market environment and announced

its ‘cloud computing diffusion and competitiveness enhancement strategy’. According to this

endeavor, Korea established three objectives and five initiatives with the aim of becoming a

global cloud power by 2015. Among the five initiatives, the former KCC is in charge of the

‘creation of a cloud-friendly legal environment’, whereas the MOPAS is in charge of the

‘advancement of IT in the public sector and preemptive introduction of cloud services’. Three

government agencies are cooperating with one another to conduct the remaining three ini-

tiatives, which are ‘reinforcement of the global competitiveness of the cloud industry and serv-

ices’, ‘development of a global IT hub and Cloud Data Center’ and ‘establishment of a solid

foundation for invigorating the market’. In December 2012, the former KCC established its

‘Cloud Data Center diffusion strategy’ to reinforce the competitiveness of the domestic IT

industry. In addition, the MSIP is in the process of enacting a law for promoting the use of

cloud services and creating an environment for the safe use thereof.

【Table 1-3-2 】Directions of the ‘Private cloud data center diffusion strategy’ and 9 initiatives

Direction 9 initiatives

Building and operation of the Cloud Data Center and overseas

expansion support

∙ Presenting the Cloud Data Center operating standards∙ Providing incentives for the building and conversion of the Cloud Data Center∙ Overseas expansion support

Laying the foundation for the diffusion of the Cloud Data Center

∙ Cloud Data Center management and security technology development∙ Development and introduction of the Cloud Data Center evaluation system∙ Fostering Cloud Data Center manpower

Promoting the use of the CloudData Center

∙ Enhancing awareness of the Cloud Data Center∙ Supporting SMEs’ use of the Cloud Data Center∙ Promoting public demands for the Cloud Data Center

Former KCC, Private Cloud Data Center diffusion strategy, 2012


E. NFC (Near Field Communication)

NFC is a non-contact wireless communication technology using the 13.56MHz bandwidth to

exchange data in 10cm. Unlike similar technologies, such as Wi-Fi and Bluetooth, NFC utilizes

a physical and intuitive non-contact method for communication between devices, thereby in-

creasing convenience.

NFC is now installed in most Android smartphones and is used for sharing information be-

tween devices that are physically close to each other. The embedded NFC chip typically sends

and receives small quantities of data and is increasingly being used to create various val-

ue-added services, such as payment, information certification, location-based information and

targeted advertising.

In May 2012 Korea joined hands with the Organizing Committee of the International

Exposition to help carry out the Yeosu Expo NFC pilot project. When carrying out this project,

code named ‘Myeongdong’, efforts were made to have visitors with smartphones be able to

experience some of the benefits enabled by NFC technology when visiting the ‘smart life expe-

rience hall’. Thanks to the Yeosu Expo NFC pilot project, about 210,000 visitors experienced

NFC services, which helped to publicize the technology which is still not so well known.

Based on the experience of operating the Yeosu Expo NFC pilot project, the national govern-

ment is cooperating with Seoul to provide services that citizens can use in everyday life. In

March 2013, the same NFC exhibit information service applied at the Yeosu Expo was applied

to 30 or so stores and 240 exhibits in 6 museums and exhibition halls in Seoul. Korea is also

planning to provide the world’s first mobile deferred payment transportation card service in

Ulsan. The transportation card service is a community-based service that is expected to con-

tribute greatly to invigorating the domestic NFC application service market. The mobile deferred

payment transportation card service will allow people to use their NFC-equipped smartphones

when using public transportation in place of the existing plastic card. Users will have a mobile

credit card with the deferred payment transportation card function issued to their smartphones.

When so equipped all they will have to do is touch their smartphone to the transportation card

terminal when boarding a bus and pay for it later. This service will be implemented in a way

compatible with the national transportation card policy, which has been under development by

the Ministry of Land, Infrastructure and Transport, so that user convenience will be enhanced.

By being the first to introduce the mobile deferred payment transportation card Ulsan will be-

come an ICT-based smart city.


F. IoT (Internet of Things)

M2M (Machine to Machine), which uses the mobile communication network for intelligent

communication between a person and a thing and between things, is now being extended to

the Internet, and is quickly evolving to include interaction with all information in the real and

virtual world. Accordingly, M2M is most likely to be extended to include the concept of IoT

(Internet of Things).

The M2M General Support Center, established in May 2011, is providing small and medium

sized M2M venture firms in Korea with an environment in which they can develop technologies

and services and conduct verification tests. In 2012 efforts were made to improve the testing

environment reflecting the opinions of enterprises using the M2M General Support Center and

domestic experts. To help domestic small and medium sized M2M venture firms with their

product development, Korea built a 4G (WiBro, LTE) system, purchased additional equipment

like radio shielding boxes, implemented a smart homecare service, and held two ‘business

partnership meetings’ to provide more business opportunities to the small and medium sized

venture firms. All of the efforts were favorably received.

To invigorate M2M in Korea and contribute to creation of new quality jobs, Korea provided

service experience education for students in related departments at domestic universities three

times, and offered basic M2M education for Seoul Digitech High School students in a bid to

foster entry-level technical engineers.

【Table 1-3-3 】M2M general support center operations (Unit : time, case)

Classification Usage Technology consulting New members

2011 180 11 114

2012 321 25 135

Former KCC, 2012 annual report, 2013

Part 2. Services /45

Part 2. Services

1. Internet Services

2. Internet Businesses

3. Internet Convergence Services

4. Internet Services in the Public Sector

5. Internet and Society

46 / Part 2. Services

1. Internet Services

A. Information Search

Looking at the market shares of key search portals in Korea, Naver and Daum, whose combined

market share is greater than 90%, accounted for 73.0% and 20.9% of the domestic search

market respectively, up 0.9% and 1.5% over 2011 respectively. Yahoo, however, which was

ranked No. 5 in 2011, saw its market share fall 0.7% from 2011 to 0.4% then withdrew from

the Korean market due to the appearance of Zum, a new search service that has appeared and

is gaining traction.

【Figure 2-1-1 】Share of the search market of key domestic portals (Unit : %)

※ Among others in 2012, Yahoo(yahoo.co.kr) accounted for 0.39% of the market Nielson Korean Click, www.koreanclick.com

At the end of every year, each portal site announces the most popular search words reveal-

ing the issues which attracted the attention of Koreans the most. In 2012, the two major

search engines of Korea, Naver and Daum, shared the same 5 words in their list of top 10

most popular search words. The words were : weather, Google, Nate, Kookmin Bank and

Nonghyup Internet Banking.

Meanwhile, Psy’s ‘Gangnam Style’ was viewed more than 900 million times in YouTube to


become the most viewed video ever, and was ranked No. 2 on the Billboard chart of the US,

the home of pop, for 7 weeks in a row. It was the most popular search word in both Nate and

Google.

【Table 2-1-1 】Top 10 search keywords of domestic portals

Rank Naver Daum Nate Google

1 Daum Naver Gangnam Style YouTube No. 1 Gangnam Style

2 Facebook WeatherThe Moon Embracing the Sun

(Korea TV Drama)The Moon Embracing the Sun

(Korea TV Drama)

3 GoogleNonghyup Internet

BankingControversy over Olympic

decisionFashion King

4 Coupon Kookmin Bank Devastating Typhoon Bolaven Dream High 2

5 Nate Lotto Ahn Cheol-soo’s move Diablo 3

6 Kookmin Bank Yahoo Rumors about Tiara’s trouble Olympics

7Nonghyup Internet

BankingNate Anypang fever

Diginity of a Gentlemen(Korea TV Drama)

8 Weather Facebook Diablo 3 limited Whitney Houston

9 bank Google IU’s excuse Kakao Story

10 TMON Shinhan Bank NARO launch cancelled North Face

Portal data (compiled), 2013

B. Contents

1) Video and Music

In 2011 the average sales per person in the Internet video provision market was KRW 254

million, with the average sales per company being KRW 205,339 million in 2012. The figures

increased about 20 times and 5 times respectively as compared to 2010.


【Table 2-1-2 】Internet video provision business

Classification YearNo. of

companiesNo. of

employeesSales

(KRW 1 million)Average sales per

company(KRW 1 million)Average sales per

person(KRW 1 million)

Internet protocol TV(IPTV)

2011 3 470 404,303 10,337 254

2012 3 520 616,196 205,339 1,185

Ministry of Culture, Sports and Tourism and Korea Creative Content Agency, 2012 content industry statistics (compiled), 2013

According to the 2012 contents industry statistics of the Ministry of Culture, Sports and

Tourism and the Korea Creative Contents Agency, sales of online music were KRW 880 billion

in 2011, up 41.4% over the previous year, and an increase of 24.3% annually on average from

2009 to 2011. Looking at small categories, sales of Internet music service businesses were

KRW 592 billion accounting for 67.4%, up 30.5% over the previous year, and an increase of

28.3% a year on average. Sales of music via mobile services were KRW 122 billion (13.9%), up

121% over the previous year, and an increase of 26.5% a year on average. Sales of the sound

source brokerage business were KRW 87 billion (9.8%), up 36.4% over the previous year, and

an increase of 19.9% a year on average. Sales of Internet and mobile music contents pro-

duction and provision (CP) were KRW 78 billion (8.9%), up 58.2% over the previous year, and

an increase of 3.5% a year on average.

【Table 2-1-3 】Sales of the online music distribution (Unit : KRW 1 billion, %)

Small categorySales

RatioAnnual growth

rateCAGR

2009 2010 2011

Mobile music service business 77 55 122 13.9 121.0 26.5

Internet music service business 360 454 592 67.4 30.5 28.3

Sound source brokerage 60 64 87 9.8 36.4 19.9

Internet and mobile music contents production and

provision business73 49 78 8.9 58.2 3.5

Total 570 622 880 100 41.4 24.3

Ministry of Culture, Sports and Tourism･Korea Creative Content Agency, 2012 content industry statistics, 2013

2) Games

In 2011, the number of companies in the domestic game industry was 17,344 employing

about 95,015 persons. According to 2012 industry statistics, sales were KRW 8,804,740 million


with an added value of about KRW 4,184,893 million and an added value ratio of 47.5%. Over

the previous 5 years the number of game companies was cut in half, but sales increased 3.4%

a year on average, and exports increased a whopping 23.8% a year on average.

Exports in 2011 amounted to USD 2,378,078 thousand, up 48.1% over the previous year

and 10 times more than imports (USD 204,986 thousand). Looking at regional figures, exports

to China amounted to USD 907.29 million, accounting for 38.2% of the total, followed by

Japan (USD 652.55 million, 27.4%), Southeast Asia (USD 428.27 million, 18%), North America

(USD 181.25 million, 7.6%), and Europe (USD 152.36 million, 6.4%).

【Table 2-1-4 】Sales of the game industry

TypeSales

(KRW1 million)Added value

(KRW1 million)Added value

ratio (%)Exports

(USD 1,000)Imports

(USD 1,000)

2006 7,448,900 3,655,175 49.1 671,994 207,556

2007 5,143,600 2,487,445 48.4 781,004 389,549

2008 5,604,700 2,808,000 50.1 1,093,865 386,920

2009 6,580,600 3,348,867 50.9 1,240,856 332,250

2010 7,431,118 3,768,320 50.7 1,606,102 242,532

2011 8,804,740 4,184,893 47.5 2,378,078 204,986

Annual growth rate 18.5 11.1 △3.2 48.1 △15.5

Ministry of Culture, Sports and Tourism･Korea Creative Content Agency, 2012 content industry statistics, 2013

3) e-Learning

e-Learning refers to education that enables level-by-level learning regardless of time and

place using information and communication technology. It refers to all learning utilizing elec-

tronic means, ICT, radio and broadcasting technologies. It is also called Internet learning,

web-based learning, cyber learning, remote learning and electronic learning. e-Learning is dif-

ferentiated from traditional education in that it provides customized education for learners. If

traditional learning methodology was one-sided, learning by rote in limited time and space,

e-Learning is a new method of education focused on openness, flexibility and dispersibility.

E-Learners can learn what they want whenever and wherever they want.

The domestic e-Learning market has grown about 10% a year on average since 2004 with

1,614 companies turning over a total of KRW 2,747,800 million in 2012. Also, about 53.3% of

the population 3 years of age and older are currently engaged in e-Learning.


【Table 2-1-5 】Domestic e-Learning industry (Unit : ea., KRW100 million, %)

Classification 2008 2009 2010 2011 2012 CAGR

No. of companies 1,145 1,368 1,549 1,656 1,614 △2.5

Total sales 18,704 20,910 22,458 24,514 27,478 12.1

Personal e-Learning utilization rate

45.0 48.3 49.0 52.8 53.3 0.5

National IT industry Promotion Agency, 2012 e-Learning industry status survey (compiled), 2013

After passing the Act on Development of e-Learning Industry and Promotion of Utilization of

e-Learning in January 2004, the government established several policies to improve the quality

of e-Learning and promote its use. It established the grounds for providing e-Learning support

for educational institutions by revising laws, and pushed ahead with ICT-based education,

e-Learning, u-Learning (Ubiquitous-Learning) and Smart Education.

In particular, the government carried out the five core projects of its ‘smart education strat-

egy’, i.e. the u-learning project for distributing digital textbooks, tablet PCs and IPTVs, online

teaching and offline evaluation, application of digital textbooks, reinforcement of the com-

petency of teachers, and creating a cloud-based educational environment. Clearly the govern-

ment has been making diverse efforts to support smart education.

4) Publishing and News

According to the ‘2012 e-book readership survey’, the first such survey conducted by the

Ministry of Culture, Sports and Tourism to understand e-book readership in Korea, the elec-

tronic publishing market, including books, magazines and newspapers in 2012 is forecast to

grow 25% a year on average.

【Table 2-1-6 】Estimated size of the electronic publishing market (Unit : KRW100 million, %)

Classification 2008 2009 2010 2011P 2012P CAGR(2008~2012)

Electronic publishing business

Internet & mobileelectronic

publishing works712 978 1,133 1,429 18,039 26.2

Internet & mobileelectronic

publishing service477 682 793 1,022 13,168 28.9

※ P : preliminary Ministry of Culture, Sports and Tourism, 2012 e-book readership survey, 2012


We can now read news content through various channels thanks to advances in Internet and

mobile technology. According to the ‘2012 Media Audience Survey’ of the Korea Press Foundation,

most people (57.4%) are now getting their news via the Internet. The proportion of people

reading news on the Internet was 62.6%, up 6.4% over 2011 (56.2%). However, the Internet

news utilization rate varied depending on age and academic background. It was found that the

utilization rate of young adults was very different from that of middle-aged and elderly adults,

and the utilization rate of middle school graduates or younger was very different from that of

college students or older.

【Table 2-1-7 】Internet news utilization rate (Unit : %)

Classification Utilization rate Non-utilization rate

Total 62.6 37.4

By age

18 ~ 29 94.7 5.3

30’s 90.6 9.4

40’s 73.7 26.3

50’s 41.5 58.5

60’s or older 10.7 89.3

By academic background

Middle school graduates or younger 12.9 87.1

High school graduates 60.3 39.7

College students or older 92.6 7.4

Korea Press Foundation, 2012 media audience survey, 2012

5) Animation

As the domestic cartoon industry kept evolving to include digital scanned cartoons, webt-

oons, e-books and mobile comics, the online platform for distributing cartoon contents has al-

so been expanding. Then domestic portals like Naver and Daum opened webtoon markets in

2005. Naver webtoons became so popular that the number of monthly webtoon readers

reached 17 million viewing more than 1.54 billion pages by March 2013. Since popular car-

toons became available on the Internet, a considerable number of bestsellers have been

webtoons. This encouraged many cartoonists to publish serial webtoons which spurred even

more readership. Now there are as many as 300 cartoonists officially publishing webtoons on

Naver, Daum and Nate, and consequently domestic cartoonists are not only exporting webtoons


but also generating revenues through secondary industries like movies.

In 2006 the number of companies in the animation industry was 260, but after several years

of growth averaging about 5.6% the number reached 341 in 2011. In that year the industry

employed a total of 4,646 people with sales amounting to KRW 528,551 million thanks to the

increased sales in movie theaters and creative productions. This was an increase of about 1.8

times as compared to KRW 288,564 million in 2006. In 2011, the added value was KRW 223.1

billion, which was an annual average increase of 26% over the KRW 70.3 billion recorded in

2006, and an added value ratio of 42.2%. Exports amounted to USD 115,941 thousand, USD

100 million more than the import amount (USD 6.89 million).

【Table 2-1-8 】Domestic animation industry

Classification 2006 2007 2008 2009 2010 2011Annual growth

rate (%)

Sales (KRW1 million) 288,564 311,166 404,760 418,570 514,399 528,551 2.8

Export (USD 1,000) 66,834 72,770 80,583 89,651 96,827 115,941 19.7

No. of employees 3,412 3,847 3,924 4,170 4,349 4,646 6.8

No. of companies 260 283 276 289 308 341 10.7

Ministry of Culture, Sports and Tourism and Korea Creative Contents Agency, 2012 content industry statistics, 2013

C. Location Based Services

LBS (Location Based Service) refers to any service that provides location-based information

such as location tracking, public safety, and navigation information using the GPS of a mobile

device such as a smartphone or the base station data of mobile carriers.

On September 23, 2011, the KCC opened an LBS Business Support Center with a ceremony

at which officials from major communication and Internet service providers and organizations

like the Online Privacy Association and KISA were present.

The LBS Business Support Center was established to provide comprehensive information so

that small and medium sized LBS providers can make a smooth entry into the market and

grow their services. The LBS Industry Council is in charge of operations and provides counsel-

ing related to obtaining a business license, operational support, location information statistics

and trend analysis, help with common problems, and receives reports of illegal service pro-


viders and notifies them to related agencies.

The growth of the domestic smartphone market is leading to the growth of various applica-

tion, content and software markets, and the LBS market is also growing with a focus on vari-

ous LBS games and such services as LBSNS (Location Based Social Network Service) and LBS

advertising.

In particular, as large Internet service providers are introducing LBSNS services, the domestic

LBSNS market is also expanding. The services are breaking away from being a simple find-ori-

ented service and evolving to provide fun-filled services like Kakao’s Kakao Place, NHN’s Me2Day,

Daum Communication’s Daum map and Daum Dangol, KTH’s IMin, and SK Communications’s

Cyworld Flag.

D. Mobile Apps

As smartphone usage and app usage time change, the app environment also changes.

Various app markets like Google Play, Tstore, Amazon and Naver Nstore have appeared after

Apple’s App Store, but the market is primarily led by two giants, Google and Apple. In 2012

the global app market was worth about USD 15.4 billion with Apple accounting for 32% (USD

4.9 billion) of global app sales and Google having 8% (USD 1.2 billion). The three mobile car-

riers in Korea accounted for 1.5% (USD 230 million).

【Table 2-1-9 】Sales by app market (as of 2012) (Unit : KRW100 million)

Classification Service area Date opened Sales amount

OverseasGoogle (Google Play) Global 2008. 10 13,200

Apple (App store) Global 2008. 7 53,900

Domestic

SK Planet (Tstore) Domestic 2009. 9 1,979

KT (Olleh Market) Domestic 2010. 10 440

LG U+ (U+App market) Domestic 2010. 9 380

※ The app market sales of Google and Apple are calculated with USD 1 being KRW 1,100 IHS iSuppli and Gartner (compiled)


2. Internet Businesses

A. e-Commerce

The total e-Commerce volume of 2012 was KRW 1,144,689 billion, up 14.5% as compared to

KRW 999,582 billion in 2011, and continues to grow.

【Figure 2-2-1 】e-Commerce transaction volume by year (Unit : %, KRW1 billion)

※ P : preliminary Statistics Korea, 2012 annual and Q4 e-Commerce and online shopping trend, 2013

Looking at e-Commerce volume in detail, B2B accounted for 91.8% of the total volume (KRW

1,050,985 billion), followed by B2G (5.4%), B2C (1.7%) and C2C (1%).

Looking at the annual growth rate of e-Commerce in 2012, B2B, which accounted for the

most in terms of volume, increased 15.1%, followed by B2G (20.6%), B2C (6.6%) and C2C

(6.0%).


【Table 2-2-1 】e-Commerce transaction volume (Unit : KRW1 billion, %)

Type 2011 2012p Annual

Component ratio Component ratio Growth amount Growth rate

B2B 912,883 91.3 1,050,985 91.8 138,103 15.1

B2G 58,378 5.8 62,259 5.4 3,880 6.6

B2C 18,533 1.9 19,641 1.7 1,108 6.0

C2C 9,788 1.0 11,804 1.0 2,016 20.6

Total 999,582 100 1,144,689 100 145,107 14.5


The B2B market volume in 2012 was KRW 1,050,985 billion, up 15.1% compared to KRW

912,883 billion in 2011.

【Table 2-2-2 】B2B transaction volume (Unit : KRW1 billion, %)

Classification 2007 2008 2009 2010 2011 2012p

Total volume 464,456 560,255 592,965 747,090 912,883 1,050,985

Growth rate 26.8 20.6 5.8 26.0 22.2 15.1


Looking at the B2B e-Commerce by transaction type, buyer-led B2B e-Commerce volume was

KRW 537,497 billion, up 7.7% compared to the previous year, and seller-mediated volume

based on multiple buyers connecting to the N2B site operated by the seller increased 27.8%.

However, broker-mediated volume decreased 2.8%. Seller-mediated volume accounts for

44.2% of the total, up 4.4% from the previous year, whereas buyer-mediated volume declined

3.6%, and broker-mediated volume by 0.8%.


【Table 2-2-3 】B2B e-Commerce transaction volume (Unit : KRW1 billion, %)


Component ratio Component ratio Growth amount Growth rate

Buyer-led 499,005 54.7 537,497 51.1 38,492 7.7

Seller-led 363,285 39.8 464,288 44.2 101,003 27.8

Broker-led 50,593 5.5 49,200 4.7 △1,393 △2.8

Total 912,883 100 1,050,985 100 138,103 15.1


Online shopping transaition volume in 2012 was KRW 32,347 billion, up 11.3% compared to

the KRW 29,072 billion in 2011.

【Figure 2-2-2 】Online shopping transaition volume (Unit : %, KRW1 billion)


B. e-Finance

Internet banking refers to any financial service that enables people to handle various finan-

cial transactions such as fund transfer and checking balances over the Internet. Mobile banking

refers to any financial service that enables people to use mobile communication devices such


as handling financial transactions over the wireless Internet. In Korea, Internet banking for fi-

nancial transactions like fund transfer started in July 1999, and has become a normal

day-to-day financial service. Meanwhile, mobile banking, which started in October 1999, is

gradually growing into an independent means of payment thanks to the expansion of smart-

phone (which started in December 2009).

As of the end of December 2012, the number of registered users of Internet banking and

mobile banking was 86,430 thousand persons and 37,048 thousand persons respectively, up

15.5% and 56.2% compared to the previous year respectively. In 2012, the frequency of

Internet banking usage and amount of transactions were 45,728 thousand (up 17.2% annually)

and KRW 33,239 billion (up 4.1% annually) while the frequency of mobile banking usage and

amount of transactions during the same period were 12,946 thousand (up 68.2% annually) and

KRW 961.5 billion (up 47.3% annually).

【Table 2-2-4 】Internet banking and mobile banking service use (Unit : 1,000 persons, 1,000 cases, KRW 1 billion, %)

Classification 2009 2010 2011(A) 2012(B)Rate of increase/ decrease (B-A)

Growth rate

Internetbanking

No. of registered customers

59,206 66,502 74,817 86,430 11,613 15.5

Frequency of use(daily average)

26,538 33,355 39,023 45,728 6,705 17.2

Amount (daily average)

25,454 29,571 31,917 33,239 1,322 4.1

Mobilebanking

No. of registered customers

11,168 15,748 23,720 37,048 13,328 56.2

Frequency of use(daily average)

1,721 3,736 7,697 12,946 5,249 68.2

Amount (daily average)

266.2 415.6 652.6 961.5 309.0 47.3

Bank of Korea, 2012 Internet banking service use, 2013

C. Online Advertising

Online advertising, the main source of revenues in ICT services, is an essential industry that

can create various new services. Service providers like influential search engines and social


network services (e.g. Google and Facebook) use advertising revenues to provide free content

to attract users and grow into global enterprises. The proportion of advertising sales to total

sales of NHN, Daum and SK Communications, the main portals of Korea, is 65%, 91% and

74% respectively. The average is 69%.

【Table 2-2-5 】Sales volume of the top three domestic portals (Unit : KRW100 million, %)

Company name2010 2011 2012

Total Advertising Total Advertising Total Advertising Ratio

Total 23,787 13,447 28,293 19,529 30,399 21,096 69

NHN 17,906 8,820 21,474 13,804 23,893 15,532 65

Daum 3,455 3,291 4,213 4,025 4,534 4,112 91

SK Communications 2,426 1,336 2,606 1,700 1,972 1,452 74

IR data of each company (compiled), 2013

In the age of feature phones when the wireless Internet was not used so much, mobile ad-

vertising was mainly SMS-based advertising, but the birth of smartphones and development of

the wireless Internet has led to the mushrooming of a variety of rich media advertising.

Recently, various kinds of advertising have appeared such as advertising utilizing characters in

game apps, banner ads using 3D, and compensatory advertising that pays points to viewers. In

2012, the mobile advertising volume (excluding message advertising) was KRW 216 billion, ac-

counting for 2% of the total advertising market. The advertising industry is paying keen atten-

tion to mobile advertising because its power is increasing as the smartphone adoption rate in-

creases bringing with it the possibility to use location or behavior information to provide cus-

tomized advertising.

In 2012 the domestic mobile advertising market volume was KRW 215.9 billion, up 184%

compared to the previous year, and is forecast to grow about 93% to KRW 416 billion in 2013.

In 2012 the global mobile advertising market volume was USD 8.4 billion, up 105.8% com-

pared to the previous year, and is forecast to grow about 61% to USD 13.5 billion in 2013.


3. Internet Convergence Services

A. IPTVs and Smart TVs

As the number of subscribers exceeded 7 million in May 2013, IPTV has become a paid

broadcasting media representing broadcasting/communication convergence. Since the service

was launched in 2009, the number of domestic subscribers has grown 47.6% a year on

average. Currently Korean IPTV accounts for 6.7% of the global IPTV market.

【Figure 2-3-1 】IPTV service subscribers (Unit : 10,000 persons)

Korea Digital Media Industry Association, press release - No. of IPTV subscribers exceeded 7 million, May 6, 2013

The domestic IPTV market is No. 4 following the US, France and China, with the global mar-

ket and Korean market forecast to grow annually by 9.1% and 7.4% respectively until 2017.

B. Smart Work

Smart work refers to a future-oriented work environment in which people can work con-


veniently at anytime and from anywhere. Due to changes in the business environment, reduc-

tion of the working population and advances in IT technology, ordinary citizens are increasingly

interested in changes in the way we work. Recently in the business management environment,

the boundaries between industries have been collapsing due to the open ecosystem resulting

from IT-based convergence and the value chain in the industry is being diluted. Changes are

taking place in the way we work with the rise of collective intelligence, virtual collaboration

and crowd sourcing. Accordingly, unlike traditional enterprises focused on mass production and

low costs, enterprises opening a new business model with a focus on creativity and knowledge

production are appearing.

In 2012, Korea set the direction of a pilot project in line with its ‘plan to invigorate smart

work for the Socially Vulnerable Groups and SMEs’ announced in early 2012, and decided to

‘develop low-end welfare-type smart work service models’. To accomplish the goal of ‘diffusing

warm smart work’, this pilot project intends to encourage Socially Vulnerable Groups and SMEs

to adopt and utilize smart work, and find and diffuse early smart work business models.

Accordingly, a smart work environment was implemented for underprivileged groups not readily

accustomed to adopting ICT (traditional market merchants and non-regular janitors), and a col-

laborative service model capable of interworking and real-time image collaboration with vari-

ous terminals like tablet PCs, IPTVs and notebooks was implemented.

【Table 2-3-1 】2012 smart work pilot project model

Institution Service name Description

Xiilab(Seongnam,

Seongnam business district revitalization

foundation)

Building the business district revitalization

zone integrated management system

based on social contents

∙ Building a social network-based smart market environment for the business district and traditional market near Sujeong-ro, Seongnam

- market SNS and social customers management service - enhanced reality technology-based store information service - business district analysis and management service - Implementing and operating Smart Stores (offline)

KTDeveloping open

collaboration solutions

∙ Developing collaborative solutions capable of interworking with multimedia like iPads, IPTVs and notebook PCs

∙ Commercial service based on a new smart work rate plan∙ Operating open interface and association for interworking with SMEs

solutions

Happy ICT(Federation of

Alternative Janitorial Service Businesses)

Building a mobile janitorial service

management system

∙ Building a mobile office environment for non-regular janitors∙ Reducing the unnecessary time and cost of commuting to an office

by using mobile devices to remotely share work details, time and lo-cation between janitors and janitorial service providers

∙ Developing a smart work support system exclusively for janitorial serv-ices

National Information Society Agency


C. IT Convergence

IT convergence started with the enhancement of 1G IT, underwent convergence between 2G

IT and new technologies, and is now advancing to undergo absorb 3G IT and related industries.

1G was developed with a focus on the convergence of IT parts and products and functional

convergence, whereas 2G was the convergence between new technologies, defined as IT+xT

convergence. Due to the appearance of innovative technologies, 2G laid the foundation for

multidisciplinary consilient research. 3G is utilizing future IT to innovate the existing industry

and create new values by linking different industries. All in all, convergence among all in-

dustries is being actively promoted.

【Figure 2-3-2 】Evolution of IT convergence

ETRI

As Korea presented a strategy for promoting IT convergence, efforts are being made to re-

inforce the infrastructure. However, despite the market potential of IT convergence, market for-

mation has been slow, and core competencies like system semiconductors and software were

not good enough. So Korea has been limited in securing leadership in IT convergence in the

global market. For example, testing, certification and stability testing (simulation, etc.) take

about 2~3 years after an IT technology is commercialized and applied in key industries like

automobiles and shipbuilding. To overcome these limitations, various IT convergence projects,

such as IT convergence projects in key industries, IPTV-related projects, manufacturing IT con-


vergence projects, and local government-related IT convergence projects, need to be carried

out under the leadership of the government and local governments, universities, research in-

stitutes and enterprises must expand their IT convergence-related organizations.


4. Internet Services in the Public Sector

A. G2C Services

G2C (Government to Citizen) service started with the provision of data based on data accu-

mulated in individual systems and was implemented with the aim of improving public con-

venience by integrating data and services dispersed among different agencies into a single

portal site to improve convenience (i.e. enabling users to access data more easily and reducing

the number of required documents and their processing time).

【Table 2-4-1 】Examples of G2C services

Classification Service Website

Administrativeservice

government service portal Minwon24 (www.minwon.go.kr)

National tax service Hometax (www.hometax.go.kr)

Provision of housing, health and welfare

information

Residential service portal OK residential service (www.oklife.go.kr)

government welfare information service Bokjiro (www.bokjiro.go.kr)

Food and medicine information service kifda (www.mfds.go.kr)

Citizens’rights

Integrated administrative information dis-closure service

Information disclosure system(www.open.go.kr)

Online suggestion system e-people (www.epeople.go.kr)

Administrative appeals Internet serviceCentral Administrative Appeals Commission(www.simpan.go.kr)

Individual public service websites (compiled), 2013

The government portal Minwon24 (www.minwon.go.kr) is the government’s main service

portal. It allows citizens to use the Internet to download documents at their convenience. To

incentivize people to use the online government services fees are reduced or waved. As of April

2013, the fee has been waived or reduced for 125 documents and services provided online.


Service name Website Description

Enterprise supportplus

G4B(www.g4b.go.kr)

∙ Business portal that provides administrative and industrial information required throughout an enterprises’business cycle

National Logistics andTrade Information

Sharing & IntegrationService

National LogisticsInformation Center

(www.nlic.go.kr)

∙ User-centered logistics service that makes available the land / marine/ air logistics information dispersed among different agencies

SP-IDC(www.spidc.go.kr)

∙ Service that delivers comprehensive port information and supports information sharing and collaboration among logistic subjects

uTradeHub(www.utradehub.or.kr)

∙ e-Trade service that handles overall trade processes from marketing to commercial trade, logistics, customs clearance, and foreign currency exchange settlement

UNI-PASS(portal.customs.go.kr)

∙ Internet-based export/import customs clearance service that supports customs filing and approval, tariff payment and refund, and criteria review

SME policy information service

BizInfo(www.bizinfo.go.kr)

∙ Comprehensive information provision service, such as SME support business, SME policy, business guidance, comprehensive civil service counseling

B. G2B Services

The government’s G2B (Government to Business) services are designed to improve enter-

prise-related services, such as approvals and information provided to businesses in order to

improve efficiency and thus help enterprises improve their competitiveness. As documents have

been standardized and simplified, the time and cost of delayed administrative services have

been greatly reduced.

Typical examples are the provision of an integrated information service that links related

agencies so that the administrative procedure for business startup, factory construction, and

provision of integrated logistics, trade and customs clearance services, which used to be pro-

vided by separate agencies, are now all linked from the viewpoint of businessmen. Also, com-

prehensive policy information services are provided to SMEs, e.g. policy information related to

management of SMEs, prices of raw materials or overseas market information, and the pro-

curement processes of agencies and public institutions all went online so that transparent pro-

curement and civil service is provided to suppliers. Also, the patent service makes it possible

to electronically handle all patent procedures, such as intellectual property right application,

evaluation, registration, judgment and communication without having to pay a visit in person.

【Table 2-4-2 】Examples of G2B services


Nationale-Procurement

Service

Korea ON-linee-Procurement System

(www.g2b.go.kr)

∙ Single window for national e-Procurement that processes all gov-ernment procurement procedures and allows monitoring of oper-ations on the Internet

Patent information service

KIPOnet(www.patent.go.kr)

∙ Service that processes all patent-related procedures such as applica-tions and queries on progress over the Internet

Each G2B service website (compiled), 2013

C. G2G Services

e-Government is generally defined as the new government innovation strategy for improving

administrative efficiency by utilizing ICT to make it easier for citizens to access government in-

formation and services. Of the various e-Government services, the G2G service utilizes ICT to

improve the efficiency and transparency of inter-administrative agency processes and ultimately

increase the quality of government services for citizens and businesses and thus improve na-

tional competitiveness.

The government business management service breaks away from the usual business man-

agement method based on experience and practices to have all government work processes

managed systematically, such as system-based schedules, documents, tasks and instructions.

To this end, the government built its ‘On-Nara BPS System’ based on the BRM (Business

Reference Model), which systematically classifies the government’s functions, and the business

management card-oriented Blue House business management system (e-support).

The e-Document distribution service allows for online transfer of electronic documents not

only between administrative agencies but also between educational institutes and other gov-

ernment agencies. As part of the service, the delivery certification system was developed to re-

cord and manage the whole process of document distribution in order to certify document

transmission and receipt, and is now in operation. The Korean government began promoting

electronic approval and e-Document distribution in 1998 for the e-Document distribution

service. As of September 2012, the service had been expanded to a total of 1,864 government

agencies including 511 administrative agencies, and 1,353 public corporations, special corpo-

rations, and educational institutes. As a result, the majority of agencies in the public sector are

now able to distribute documents online.


【Figure 2-4-1 】No. of Agencies using e-Document distribution services (unit : ea.)

MSPA

To provide information that can be used for nationwide resource allocation and management

of financial programs, including those of central, provincial and public agencies, with regard to

all processes of financial activities, such as revenue collection, budget compilation, execution,

management of funds and state-owned properties and settlement of accounts, the government

built and operates its own digital budget accounting system.

The government also established a strategic plan for system implementation in 2004, com-

pleted system implementation and test operations in 2006, and began to operate the system

in 2007. As a result, the government manages national revenues by linking the systems of the

National Tax Service, the Korea Customs Service, the National Police Agency (large collection

agencies) and the Korea Financial Telecommunication & Clearinghouse and the Bank of Korea

(banking network), and manages the budget by establishing mid-to-long-term and short-term

expense plans. Also, the government supports systematic management of acquisition, dis-

position, conversion and operation of national assets, and ensures efficient settlement of ac-

counts by accounting for transaction data occurring in the process of financial operations in re-

al time.

In particular, as revenues and expenditures are integrated with national properties and set-

tlement of accounts in the digital accounting system, the automatic journal enables users to

manage ledgers and settlement records without having to enter any additional data. The EBPP

(Electronic Bill Presentment and Payment) makes it possible to pay taxes and fines in various

ways, such as Internet banking and ATMs without having to visit public officials. In addition,

the G2B system of the Public Procurement Service enables fair and transparent bidding and


contracting, and EFT (Electronic Funds Transfer) makes it possible to transfer funds from state

accounts to the accounts of private businesses at will.

As a result, about 55,000 public officials in charge of managing state coffers at central ad-

ministrative agencies and some local governments are using the digital accounting system. As

of June 2013, a daily average of 15,000 public officials have been handing 35,000 trans-

actions, and as of December 2012, funds worth KRW 5.7 trillion are routinely transferred.

Consequently, the digital accounting system received the UN Public Service Award in May

2013. In particular, the Korean government was ranked No. 1 in the ‘Promoting Whole - of -

Government Approach in the Information Age’ sector in the final evaluation by the UN

Committee of Experts on Public Administration (CEPA).


5. Internet and Society

Social networking services are not growing as fast as previously but have been used con-

tinuously, and related social issues have only grown and expanded as a result. In particular,

mobile devices are utilized much more frequently than PCs, so consumption of mobile games,

entertainment contents, and news has sharply increased.

Political conflict between conservative and left-leaning progressive groups became even more

radical during the two elections of 2012 with social networking services playing a central role.

As a result, there are growing concerns over this phenomenon. The ideological propensities of

citizens and their values tended to become more extreme as a result of online communication

in which the identity of participants is often anonymous. This problem of polarization caused

some to argue that expression of opinions must be legally regulated, while others argue that

freedom of expression must be tolerated. There is a sharp conflict of opinion on this point.

Practical discussions were raised concerning individual civil rights with regard to control of

personal information and the right to have information currently stored in cyberspace erased.

Along with the leakage of personal information, which has been a major social issue over the

years, issues concerning privacy, which is often exposed to the media and does not disappear

with the passage of time, were raised continuously. The public is deeply concerned about the

digital information that is stored in cyberspace and can be called into public attention when

wanted, so the right to have information permanently erased became a matter of keen interest.

In particular, if a person has paid a sufficient price for a mistake according to legal statutes

but continues to suffer consequences unreasonably because others deem it their prerogative to

remind the public of deeds past done, the social consensus is that this matter cannot be ig-

nored under the pretext of freedom of speech and the characteristics of media storage.

Part 3. Utilization /69

Part 3. Utilization

1. Internet Industry and Usage

2. Promotion of the Internet

3. Internet Related Laws

4. International Cooperation

70 / Part 3. Utilization

1. Internet Industry and Usage

A. Internet Industries

According to the ‘statistics on wired and wireless communication service subscribers’ by the

MSIP, the number of wireless Internet subscribers in Korea was 50.42 million in 2012, which

was up 2.3% over 2011 (49.3 million). As the number of smartphone users has been increas-

ing, the number of wireless Internet users has also been increasing.

Moreover, according to ‘broadband Internet subscribers’ data, as of December 2012, the

number of domestic broadband Internet subscribers was 18.3 million, with KT having the larg-

est number of subscribers (approx. 8.04 million, 44.0%), followed by SK Broadband (approx.

4.39 million, 24.1%), System operator (approx. 2.96 million, 16.2%), and LG U+ (approx. 2.74

million, 15.0%).

【Table 3-1-1 】Broadband Internet subscribers (Unit : 1,000 persons, %)

Provider 2007 2008 2009 2010 2011 2012

KT 6,516(44.3) 6,712(43.4) 6,953(42.5) 7,424(43.1) 7,823(43.8) 8,037(44.0)

SK Broadband 3,658(24.9) 3,544(22.9) 3,847(23.5) 4,002(23.2) 4,192(23.5) 4,394(24.1)

Dreamline 2(0.0) 1(0.0) 0(0.0) 0(0.0) 0(0.0) 0(0.0)

LG U+LG Dacom 68(0.5) 29(0.2) 12(0.1)

2,773(16.1) 2,810(15.7) 2,743(15.0)LG Powercom 1,721(11.7) 2,182(14.1) 2,510(15.4)

System operator 2,507(17.0) 2,786(18.0) 2,811(17.2) 2,826(16.4) 2,857(16.0) 2,960(16.2)

Relay operator 16(0.1) 13(0.1) 11(0.1)

199(1.2) 178(1.0) 120(0.7)

Network System Operator

58(0.4) 50(0.3) 42(0.3)

Special CategoryTelecommunications

System Operator164(1.1) 158(1.0) 163(1.0)

Total 14,710 15,475 16,349 17,224 17,860 18,254

※( ) is year-end market share MSIP, wired and wireless communication service subscribers statistics, 2013


The portion occupied by the utilization industry, which accounts for most of the total Internet

industry sales (70.1%) increased by 0.2%p over 2011. The portion occupied by the infra-

structure industry decreased by 0.4%p as compared to 2011. The portion of the support in-

dustry for sales volume did not change much from 2011.

【Table 3-1-2 】Sales of the Internet industry (Unit : KRW1 billion, %)

Type 2007 2008 2009 2010 2011 2012P CAGRAnnual

growth rate

Infrastructure industry

1,499(5.5)

1,547(5.1)

1,659(5.0)

1,766(4.9)

1,511(3.9)

1,463(3.5)

△0.5 △3.2

Support industry

6,486(23.8)

7,937(26.1)

8,407(25.2)

9,358(25.9)

10,263(26.2)

10,955(26.4)

11.1 6.7

Utilization industry

19,278(70.7)

20,974(68.9)

23,289(69.8)

24,958(69.2)

27,345(69.9)

29,111(70.1)

8.6 6.5

Total 27,263 30,458 33,355 36,082 39,119 41,529 8.8 6.2

※ P : preliminary, ( ) is ratio KAIT, Broadcasting Communication Industry Report (Monthly/Yearly)(compiled) 2012

※ CAGR : Compound Annual Growth Rate for 2007~2012

B. Internet Usage

1) Individuals and Households

According to the ‘2012 Survey on Internet Usage’ by the former KCC and KISA, the Internet

usage rate (ratio of persons who used the Internet at least once in the last one month to total

population) of people aged 3 and older was 78.4%, up by 0.4%p over the previous year. The

number of Internet users was 38.12 million (up by 9.4 million over the previous year). The

Internet utilization rate was merely 59.4% (26.27 million) in 2002, but thanks to the rapid ex-

pansion of the broadband Internet infrastructure, the Internet utilization rate increased by 19

percentage points and the number of broadband Internet users increased about 1.5 times in

the last 10 years.


【Figure 3-1-1 】Internet users and Internet usage rate (Unit : %, 1,000 persons)

※ 2003~2005 : Population age 6 and older Former KCC and KISA, 2012 Survey on the Internet usage, 2013

After 2006 : Population age 3 and older

The Internet usage rate for males and females aged 3 and older was 83.6% and 73.2%,

respectively. The number of male Internet users was 20.33 million and the number of female

Internet users 17.79 million.

【Figure 3-1-2 】Internet usage rate and Internet users by gender (Unit : %, 1,000 persons)

Former KCC and KISA, 2012 Survey on the Internet usage, 2013

The Internet utilization rate of the younger generations was almost 100% : teens (99.9%),

those in their 20’s 99.9%, and those in their 30’s (99.5%). The Internet usage rate for those


in their 60’s (38.5%) was relatively lower than those of other age groups, but rose sharply by

15.6 percentage points.

【Figure 3-1-3 】Internet users and Internet usage rate by age (Unit : %, 1,000 persons)


Internet users spent a weekly average of 16.3 hours on the Internet (daily average of 2.3

hours). Almost half (48.0%) of them used the Internet 14 hours and more per week (14~21

hours : 25.2%, 21~35 hours : 16.8%, and 35 hours or more : 6.0%).

【Figure 3-1-4 】Weekly average Internet usage Hours (Unit : %)



2) Business

As of December 2011, 57.2% of all establishments had access to the Internet, up 17.4 per-

centage points over the previous year. Most businesses with more than 10 employees had ac-

cess to the Internet, whereas the Internet access ratio of those employing less than 10 people

went up by 18.3 percentage points (1~4 employees 50%) and 13.4% (5~9 employees 89.5%)

respectively. This big increase over 2005 can be attributed to greatly improved Internet speeds,

service reliability and coverage that reduced the gap of Internet access among establishments

with different numbers of employees.

【Figure 3-1-5 】Internet access rate by establishment size (as of December 2011) (Unit : %)

Former MOPAS･National Information Society Agency, 2012 Informatization Statistics (compiled), 2013

C. Worldwide Internet

1) Global Internet

Korea has proven its standing as an Internet powerhouse as it was highly ranked in various

ICT related indices published by international organizations like the UN and the International

Telecommunications Union, as well as by private institutions like the World Economic Forum

and the International Institute for Management Development.


【Table 3-1-3 】International ICT related indices

Organization Index nameRanking (out of total)

Remarks2006 2007 2008 2009 2010 2011 2012

UNe-Government

development index- -

6(192)

-1

(192)-

1(193)

Holland 2nd

UK 3rd

ITUICT development

index1

(180)1

(181)-

2(154)

1(159)

1(152)

1(155)

Sweden 2nd

Denmark 3rd

WEF

Network readinessindex

14(115)

19(122)

9(127)

11(134)

15(133)

10(138)

12(142)

Sweden 1st

Singapore 2nd

Technical Readiness,Global Competitiveness

Index

12(125)

7(131)

13(134)

15(133)

19(139)

18(142)

18(144)

Sweden 1st

Luxemburg 2nd

IMDTechnical Infrastructure,World Competitiveness

Index

6(53)

6(55)

14(55)

14(57)

18(58)

14(59)

14(59)

Hong Kong 1st

US 2nd

JapaneseMIAC

ICT National competitiveness index

- - -2

(24)1

(25)1

(30)-

Not announcedin 2012

KISA

2) Asia-Pacific Region

According to the ITU, the number of Internet users in the Asia-Pacific region in 2012 ac-

counted for 44.8% (1,133 million) of all Internet users worldwide. The Internet utilization rate

of the Asia-Pacific region was 28.8%, lower than the global average of 35.7%, but the annual

growth rate of Internet users in the region between 2000 and 2012 was 841.9%, which was

higher than that of Europe (393.4%) and North America (153.3%).

【Table 3-1-4 】Internet users and broadband Internet subscribers in Asia-Pacific (Unit : million persons, %)

Classification 2008 2009 2010 2011 2012e 2013e

Internet users 612(16.2) 721(18.9) 868(22.5) 999(25.6) 1,133(28.8) 1,269(31.9)

Broadband Internet subscribers

151(4.0) 183(4.7) 214(5.5) 251(6.4) 275(6.9) 303(7.6)

※ Figures in ( ) mean the Internet users and Broadband Internet subscribers per 100 persons ITU, ITU Statistics, 2013

※ e : estimate


3) Americas

According to the ITU, the number of Internet users in the Americas, including both North and

South America, was 542 million in 2012. The region is expected to account for 21.7% of all

Internet users worldwide. However, the proportion is gradually decreasing as the number of

Internet users in developing countries in the Asia-Pacific region and Africa is increasing.

【Table 3-1-5 】Internet users and broadband Internet subscribers in Americas (Unit : million persons, %)


Internet users 403(44.2) 424(46.1) 458(49.3) 502(53.4) 542(57.2) 582(60.8)


111(12.2) 120(13.1) 131(14.1) 141(15) 152(16) 164(17.1)


※ e : estimate

4) Europe

According to the ITU, the number of Internet users in Europe was 443 million in 2012, with

the Internet utilization rate being 71.2%, accounting for 17.7% of the total global Internet

users. At ‘EU 2020’ held in March of 2010, the European Commission announced its in-

formatization vision and strategy for the next 10 years. At the Digital Agenda Summit in

October 2011, the EC also announced its plan to invest USD 12,557 million to develop a new

advanced fiber-optic communication broadband infrastructure to support the European broad-

band market. Also, the EC proposed an Amendment of the Data Protection Rules in the first

half of 2012 to strengthen personal information protection.

【Table 3-1-6 】European Internet users and broadband Internet subscribers (Unit :million persons, %)


Internet users 367(60.2) 387(63.2) 411(66.9) 428(69.0) 443(71.2) 467(74.7)


125(20.6) 136(22.2) 145(23.6) 154(24.8) 161(25.8) 168(27.0)


※ e : estimate


2. Promotion of the Internet

A. Promotion of Internet business

1) Creating a Win-Win Internet Infrastructure

In 2012 the global economy was in recession as exemplified by the Euro Zone crisis and the

‘fiscal cliff’ in the US. The Korean economy was also affected recording its lowest growth rate

ever of 2.3% as a result of the global financial crisis that started in 2008. Despite these eco-

nomic conditions, Internet companies have been continuously engaged in win-win cooperation

and social contribution activities to invigorate the Internet ecosystem and improve global

competitiveness. The government established a startup program to reinforce the competitive-

ness of Korean Internet enterprises through its Internet committee for co-prosperity, and tried

to foster a healthy Internet business environment by inducing co-prosperity through coopera-

tion among enterprises. To share and communicate through social contribution programs,

Internet enterprises have been engaged in various educational activities, PR and promotional

campaigns. The result is that the number of domestic venture firms increased from 4,934 in

1999 to 28,193 in 2012. The annual average growth rate was 14.3%.

The KCC announced its ‘Global K-startup Program’ in 2012. Based on a cooperative relation-

ship with portals and mobile carriers, this program identifies innovative Internet startups, fos-

ters them systematically, and joins hands with Google to reinforce overseas investor relations

support and global expansion efforts.


【Figure 3-2-1 】Global K-startup incubation process

Former KCC, press release - global K-startup : fostering future Internet blue chip, February 15, 2012

2) Promotion of the Wireless Internet

The MSIP is continuously operating and expanding its SMAC (smart mobile app development

support center) which it launched in cooperation with mobile carriers, portals and related

agencies. SMAC has been operating 6 centers in major metropolitan areas since 2011 where

mobile carriers like KT, LG U⁺ and SK Telecom have been testing and verifying apps being

developed. To promote balanced development of the app ecosystem by improving the gen-

erally poor environment of regional app developers and building new infrastructure, the gov-

ernment began to create a mobile app developer test environment and provide developer

education. An increasing number of people are demanding that outstanding mobile developers

in rural communities be provided the same app development infrastructure and environment as

well, so SMAC installed regional centers in 5 additional regions (Chungcheong, Honam, Gangwon,

Daegyeong and the Southeastern region). These centers provide all the state-of-the-art test

terminals necessary for app development for domestic and foreign smartphones and tablet PCs,

waive data charges incurred during mobile app development and testing, and offer develop-

ment space.

3) Improvement of the Internet Usage Environment

The non-standardized Internet environment, far from global standards, began to congeal in

the late 1990’s when non-standard technologies dependent on a certain OS and browser had


to be used in connection with the creation of new services, such as Internet banking.

Furthermore, in the smart mobile environment, triggered by the iPhone and attendant iOS, the

use of a greater number of devices (smartphones, tablets, TVs, etc.) is worsening the problems

of the non-standard Internet environment in Korea. The government found a practical answer

to these problems in HTML 5 which it sees as the next-generation web standardization tech-

nology and thus made nationwide efforts to introduce, utilize and promote it.

HTML 5, the latest evolution of HTML, has a built-in ability to handle a wider variety of ap-

plications and multimedia unlike HTML 4.1 that requires Flash player and media players to

provide rich contents. HTML 4.1 and older versions used to operate using only text and

hyperlinks. In July 2012, the plan to promote HTML 5 to reinforce the global Internet com-

petitiveness of Korea was announced. According to this plan, the government prepared a total

of 15 policy projects, including standardization of web-based certificates, the development of

3,000 HTML 5 professionals over a 5-year period, and supporting the conversion of public and

private websites to HTML 5.

The first project was to use web-based certificates. ActiveX, a non-standard technology, will

no longer be used, and ‘certificates’ will be called directly by the web browser according to in-

ternational standards. To this end, the ‘web-based digital signature function’ and the ‘certificate

management technology’ need to be developed and standardized. The government aims to

have them standardized by 2014, and if successful, it will consult with the Financial Services

Commission and the MSPA to use them for e-Commerce like online shopping.

The second project is to foster 3,000 HTML 5 professionals over a 5-year period. HTML 5 is

expected to allow domestic companies to break away from the restrictions of global platform

companies and therefore leap forward toward the global market, but the responses of domestic

companies have so far been inadequate mainly because there are too few HTML 5 professionals.

According to statistics, more than 30,000 people need to be re-trained or newly trained by

2017. To address this issue, the MSIP launched a comprehensive educational program to reach

its goal of training 3,000 HTML 5 professionals within 5 years.

The third project is to support the conversion of 200 public and private websites to HTML 5.

Korea is far behind other countries in the adoption of HTML 5 (Korea 11.7%, overseas 44%).

Accordingly, the government is planning to support 200 influential public sites and SMEs in

poor technological condition with their conversion to HTML 5 over a three-year period. In addi-

tion, the government will provide SMEs and venture ICT companies with information on tech-

nology trends, and have 20 HTML 5 documents translated every year so that local developers

will be able to more easily understand it.


4) Web Accessibility

Tim Berners Lee, inventor of the world wide web (www), defined the web as ‘a space where

everyone can easily share information regardless of disabilities’. He also stressed the im-

portance of web accessibility by saying that web contents must be created in such a way that

anyone with any sort of a disability can easily access it. With this in mind, the government

passed two laws, the Framework Act on National Informatization and the Act on the Prohibition

of Discrimination of Disabled Persons & Consequences for Infringement of their Rights, Etc. In

particular the latter stresses that both the disabled and non-disabled be able to use the web

equally. According to this law, the web accessibility of public institutions became mandatory in

April 2009, and the websites of all corporations had to comply with web accessibility stand-

ards starting on April 11, 2013.

To ensure the effectiveness of these laws, the government established web accessibility

standards, and established the ‘Guideline for enhancing the convenience of information access

and use for the disabled and elderly’. In 2011, the government established the ‘Mobile appli-

cation accessibility guideline’ as the first in the world to do so.

Also, to operate the web accessibility quality certification system, self-enforced in the private

sector, including the National Information Society Agency, as a fair, reliable and unified form of

certification, the government partially amended the Framework Act on National Informatization

on May 22, 2013, and laid the legal foundation so that the Minister of Science, ICT & Future

Planning can operate it as a national arbitration certification system.

B. Creation of the Internet Culture

1) Reducing Internet Dysfunctions

The ‘digital divide’ is being defined differently by different scholars and in different reports.

The Framework Act on National Informatization defines it as ‘a gap in opportunities to access or

use information and communication service due to social, economic, regional or physical con-

ditions’. Meanwhile, Internet addiction also has many definitions, but the National Information

Society Agency in charge of Internet addiction defines it as ‘the state in which there is a with-

drawal symptom when disengaged from the Internet and a high tolerance when using the


Internet with problems in daily life resulting’. Here, a withdrawal symptom means that one

feels extremely deprived and anxious if not able to use the Internet, and tolerance means that

one needs more and stronger contents to be as satisfied as previously.

Meanwhile, looking at the digital divide among ordinary citizens and underprivileged groups

in terms of the Internet utilization rate, in 2012, the average Internet utilization rate of the un-

derprivileged like the elderly, low-income group and farmers and fishermen, was 46.8%, up

1.2% over 2011. Accordingly, the digital divide between ordinary citizens and underprivileged

groups was 31.9 percentage points, down about 0.8 of a percentage point from 2011.

【Table 3-2-1 】Internet utilization rate and gaps of the underprivileged groups (Unit : %, %p)

Classification2008 2009 2010 2011 2012

Utilization rate Gap Utilization rate Gap Utilization rate Gap Utilization rate Gap Utilization rate Gap

Whole population 77.1 - 77.6 - 78.3 - 78.3 - 78.7 -

Underprivileged groups

Disabled 51.8 25.3 52.7 24.9 53.5 24.8 54.4 23.9 55.5 23.2

Elderly 35.6 41.5 37.6 40.0 39.3 39.0 41.1 37.2 42.6 36.1

Low-income group

54.6 22.5 55.7 21.9 56.5 21.8 57.4 20.9 58.5 20.2

Farmers & fishermen

35.2 41.9 36.2 41.4 37.5 40.8 38.9 39.4 40.2 38.5

Average 41.7 35.4 43.0 34.6 44.3 34.0 45.6 32.7 46.8 31.9

National Information Society Agency, 2012 digital divide index and survery, 2013

※ The gap is the difference in Internet utilization rate between ordinary citizens and underprivileged groups

※ The average is the weighted average considering the size of each underprivileged group

2) ICT Ethics Education

The government launched its ‘10 million informatization education plan’ in June 2000 to im-

prove the information utilization ability of the entire nation and promote informatization

throughout the nation. As a result, basic and practical informatization education was offered to

all citizens to raise their ability to utilize computers and Internet information. Just 2 years later

in June 2002, the goal of teaching 10 million people was accomplished earlier than planned.

However, although the government made such efforts, as informatization progresses, the num-

ber of underprivileged groups like the disabled and the elderly kept increasing, and the digital

divide began to worsen. Korea responded to this development by establishing and executing

its ‘informatization education for 5 million underprivileged citizens’ in 2004, and established its


‘second general plan to eliminate the digital divide (2006~2010)’ in 2005. The government

then more intensively provided informatization education for four underprivileged groups (the

disabled, the low-income group, the elderly, and farmers & fishermen).

As informatization progresses, the digital divide has deteriorated the opportunities for people

to engage in social activities and enjoy a more balanced life. This became a major factor in

hindering social unity. Accordingly, the government provided informatization education to give

underprivileged groups like the disabled and the elderly opportunities to improve their quality

of life and induce social unity through informatization. It is continuously reinforcing informatiza-

tion education for underprivileged groups by developing and supporting various customized

educational contents. In particular, the government trained 306 professional instructors in

2012 to help eliminate the ‘mobile divide’. Those instructors provided smart mobile education

for 16,105 underprivileged citizens.

The government is trying to ensure that citizens can use information in a safe and healthy

environment even as the digital environment is rapidly changing as ICT devices are increasingly

being used every day and new media appears. Korea has been making efforts to protect citi-

zens from information pollution, such as SPAM and obscene content, and infringement of civil

rights, such as violation of copyrights and cyber bullying. For example, Korea has been provid-

ing lifecycle-based information and communication ethics education for teenagers, teachers

and parents since 2002 to cultivate proper digital etiquette and promote a sound information

cultural environment.

In particular, as the age of Internet users continues to get ever lower, the government ex-

panded the targets of its information and communication ethics education to include children

in 2011 and completed its lifecycle education curriculum. Starting with 525 state-run and pub-

lic kindergartens in 2011, the targets were then expanded to private kindergartens in 2012. In

total Internet safety education was given at 1,002 kindergartens around the country. In partic-

ular, as the Nuri curriculum for children 3~4 years of age was to be introduced in 2013, a pilot

project was launched in 2012 to provide the curriculum to 157 kindergartens. Currently all

kindergartens with children 3~4 years of age are teaching the same curriculum. Also, as day-

care centers were also included information and communication ethics education facilities for

infants was reinforced. The curriculum was provided to 22,000 smart kids in 2011 and 45,000

in 2012, and Internet etiquette education will be given to 50,000 smart kids in 2013. The gov-

ernment is trying to establish Internet safety and ethics education as a core and essential part

of the education curriculum for children.


3) Enhancing Internet Ethics

Everyone must be aware of and practice Internet ethics so that social problems caused by

the Internet can be resolved. Accordingly, the KCC and the KISA operate a youth organization

to promote a sound Internet culture, prevent cyber bullying, and enhance Internet ethics. Their

‘Korea Internet Dream Star’ and ‘Beautiful Internet World’ campaigns are conducted every year.

In particular, the Korea Internet Dream Star, which celebrated its 3rd anniversary in 2013, se-

lects different topics and targets every year, whereby it helps teenagers to learn Internet ethics

for themselves, and use it properly. The Beautiful Internet World campaign is an Internet cul-

tural movement for all citizens intending to create a sound Internet culture.

The ‘Korea Internet Dream Star’, which targets elementary and middle school students who

are the future leaders of the Internet society, is a youth organization that was established to

develop young leaders who have a sound understanding and appreciation of high ethical val-

ues in the Internet society by operating programs that teach proper use and understanding of

the Internet.

Through the ‘Korea Internet Dream Star’ program, youth can develop their ability to crea-

tively express their thoughts and properly accept others’ opinions, as well as participate in

various activities (education, campaigns, experience/exploration, social contributions, etc.) to

improve their ability to take the leadership in fulfilling their social responsibilities in the evolv-

ing Internet society.

On September 12, 2012, the government hosted its first ‘International Internet Ethics

Symposium’ in Seoul jointly with the Korea Society of Internet Ethics to share information on

the Internet ethics issues and responses of different countries. At this symposium, not only

great scholars of Korea, but also famous foreign scholars in Internet ethics, such as Prof.

Charles Ess of the University of Oslo (Norway), Prof. Michael Zimmer of the University of

Wisconsin-Milwaukee (USA), Dr. Arkadiy Kramer, Chair of the Russian Association of Networks

& Services, Prof. Yoshinori, Ezawa of Kansai University (Japan) and Prof. Peng Hwa Ang of

Nanyang Technological University (Singapore) were invited. They all gave presentations on the

emergence of Internet ethics, their necessity, the Internet ethics problems of different countries

and their responses, and participated in panel discussions featuring open Q&A sessions.

4) Online Protection of Children

The diffusion of the Internet enriches the lives of children and youth by providing them with


opportunities to access limitless information as well as enjoy a rich cultural life including on-

line education, games, videos and music, but also exposes them to a variety of social dysfunc-

tions and detrimental content. In the online world, children are exposed to an increasing varie-

ty of risks that are getting more serious day after day, such as distribution of illegal contents,

cyber violence, pornography, online game addiction and online frauds.

To protect children and youth from illegal and harmful contents in the ever changing broad-

casting and communication environment, the Korea Communications Standards Commission

built its Green I-Net (www.greeninet.or.kr) in 2008, and has since been providing programs to

respond to harmful information on the Internet, such as supporting the filtering of information

harmful to teenagers, grading information harmful to youth, preventing infringement of cyber

rights, and managing Internet information usage time. The government also formed an emer-

gency response hotline council consisting of 30 Internet service providers like portals, P2P and

web-based storage/services to prevent the distribution of illegal and harmful information on

the Internet in a bid to monitor obscenities like child pornography. As a result, Internet pro-

viders like portals reinforced their monitoring to prevent youth from uploading obscene materi-

als, and conducted strict self-inspection to check whether affiliated contents are legal or not.

C. Internet Security

1) Information Security

2012 witnessed a variety of security threats, and intrusion incidents continuously occurred.

Hacking of enterprises with the aim of stealing personal information, and DDoS (Distributed

Denial of Service) attacks targeting game companies, portals and DNS servers continued

throughout 2012, and sophisticated phishing attacks, which induce financial information leaks

and payments, resulted in direct financial losses.

To do its part in suppressing such attacks, the MSIP and the KISA operate the KrCERT/CC

(Korea Computer Emergency Response Team Coordination Center) to detect, analyze and re-

spond to signs of abnormal web traffic in advance, prevent intrusion incidents, analyze dam-

aged systems and malicious codes, establish countermeasures, and quickly respond to in-

trusion incidents jointly with related agencies to prevent proliferation of damages.


【Figure 3-2-2 】The intrusion incident response system of KrCERT/CC

KISA

To prevent the occurrence of zombie PCs and infection of PCs with malicious code, the gov-

ernment constantly hunts for the source of malicious codes and deletes them as quickly as

possible. Also, the national PC cyber monitoring system opens a popup window on zombie PCs

to inform their user that their PC had been infected and provides them with a dedicated

antidote.

2) Personal Information Protection

According to the ‘2012 Information Security Survey’ conducted by KISA, 9.9% of Internet

users aged between 12 and 59 experienced damage due to an invasion of personal information

and privacy, and the average number of times they experienced such damage was 3.2. These

figures are down by 0.8%p and up by 0.6 times from 2011 respectively. Speaking of the types

of damage due to personal information and privacy invasion, more than half of the respondents

mentioned personal information being leaked due to :

∙ neglect of the service provider (55.3%),


∙ the service provider using the personal information for a purpose other than the original

purpose or providing it to a third party without the consent of the subject (32.7%),

∙ the service provider collecting personal information and using this information for the pur-

pose of telemarketing without giving notice or enrolling membership without giving notice

(30.1%),

∙ game items, cyber money or characters being stolen due to stolen IDs and passwords (15.1%),

∙ failing to enroll in a website or incurring economic damage as a result of a stolen resident

registration number (12.4%).

As the amendment to the Act on Promotion of Information and Communications Network

Utilization and Information Protection, Etc., which reinforces personal information protection in

information and communication, went into effect in August 2012, various programs regarding

personal information use and protection came into being. Accordingly, information and commu-

nication service providers are prohibited, in principle, from collecting and using the resident

registration number of the user unless the personal identification authority or law permits, and

various new systems, such as the personal information expiration system, the personal in-

formation usage notification system, and the notification and reporting of personal information

leak to minimize the damage, were introduced.

The biggest change to the personal information protection policies due to the amendment of

the Act on Promotion of Information and Communications Network Utilization and Information

Protection, Etc. is the prohibition of the information and communication service providers from

collecting and using resident registration numbers (RRN) on the Internet. The collection and use

of RRNs was prohibited from August 2012, and the RRNs already in possession were to be de-

stroyed within two years after the date of enforcement. Accordingly, the KCC and the KISA

opened the ‘Internet RRN Clean Center’ in May 2012 to support the RRN restriction policy.

They also support laws on restriction of collection and use of RRN, technology counseling, RRN

conversion support for small businesses, and provision of alternative RRN.

3) ☎118 Service

KISA began to provide its ‘☎118’ service on January 18, 2010. This service collects com-

plaints on hacking, viruses, personal information invasion, SPAM and inconveniences experi-

enced during the use of the Internet, provides counseling and handles complaints 24 hours a

day throughout the year. ‘☎118’ not only receives reports on various damages, such as PCs


infected by viruses, unauthorized collection and use of personal information, and continuous

reception of SPAM, but also inquiries on personal identification on the Internet, micropayment

damages, and domain names. Citizens experiencing inconvenience or having questions regard-

ing the Internet can simply call this number anytime for a quick answer.

4) Professional Manpower Development

As damage to the economy and social fabric is worsening due to recent sophisticated in-

formation intrusion incidents, public interest in information protection is sharply increasing.

Accordingly, the government is emphasizing the necessity of fostering information protection

professionals and enhancing citizens’ awareness of information protection to reduce the un-

necessary social costs of cyber threats, and reinforce the ability to proactively respond to so-

phisticated information intrusions. For example, the government has developed and provides

systematic information protection education programs for ordinary citizens, and carries out var-

ious educational projects targeting those working in the knowledge information security in-

dustry to reinforce their expertise. Also, more recently, the government has expanded its cus-

tomized information protection education to various groups, such as college students, ordinary

citizens and public officials interested in information protection.

To enhance the level of information protection and Internet ethics, the government is provid-

ing various education programs, such as its information protection lecture tours for ordinary

citizens and security managers in enterprises, and professional education for diffusion of in-

formation protection knowledge. The general curriculum is provided in the form of a national

lecture tour in which students can select the courses they want from among 7 modules (i.e.

understanding of information protection, recent trends in security, prevention of internal in-

formation leaks, etc.) so that customized education can be provided. The professional courses

are offered in the form of practical training with a curriculum consisting of core contents that

information protection experts need (such as how to respond to a DDoS attack, network

breaching and web hacking) and lectures on the recent trends in security technology. In 2012,

32 sessions of the ‘basic education’ and 22 sessions of the ‘professional education’ were car-

ried out with a total of 4,040 people being trained.


3. Internet Related Laws

Internet related legislation can be mainly divided into laws related to the Internet infra-

structure and usage environment (distribution of and access to the Internet, manufacturing and

distribution of information systems like terminals and storage units, Internet address resource

management, electronic payment means, communication billing, digital signatures, e-Documents,

information security, etc.) and laws related to Internet usage/utilization (e-Commerce, e-Banking,

e-Learning, online games, online contents, IPTV, Internet media, location-based information

services, u-Health, e-Government, u-City, etc.). They can be further classified into laws related

to the design and building of Internet infrastructure, Internet information security, Internet in-

dustry promotion, and Internet user protection.

【Table 3-3-1 】Internet related laws (as of May 2013)

Type Key related laws

Design and building of Internet

infrastructure

Telecommunications Business Act, Framework Act on Telecommunication, Internet Address Resources Act, Framework Act on National Informatization, Act on Promotion of Information and Communications Network Utilization and Information Protection, etc., Digital Signature Act, etc.

Internet information security

Act on the Protection of the Information and Communications Infrastructure, Act on the Promotion of the Information and Communications Network Utilization and Information Protection, etc., Electronic Government Act, Act on Prevention of Divulgence and Protection of Industrial Technology, etc.

Internet industry promotion

Information and Communications Technology Industry Promotion Act, Framework Act on Electronic Transactions, Electronic Financial Transactions Act, Electronic Trade Facilitation Act, Contents Industry Promotion Act, e-Learning Industry Development Act, Game Industry Promotion Act, Act on the Promotion of Newspapers, etc., Internet Multimedia Broadcast Services Act, Act on the Protection, Use, etc. of Location Information, Act on the Construction, etc. of Ubiquitous Cities, etc.

Internet user protection

Act on the Promotion of the Information and Communications Network Utilization andInformation Protection, etc., Framework Act on National Informatization, Protection ofCommunications Secrets Act, Personal Information Protection Act, Use and Protection of Credit Information Act, Copyright Act, Act on the Protection, Use, etc. of Location Information, Act on Consumer Protection for Electronic Commerce Transactions, etc., Electronic Government Act, Act on Reporting and Using Specified Financial Transaction Information, Special Act on the Refund of Damages from Telecommunication Financial Scams, etc.

Legal Knowledge Information System (compiled), likms.assembly.go.kr/law


Name Date of Enactment･Revision Description

Framework Act on National

Informatization

Partial Amendment(March 22, 2013 Passed by

the National Assembly,March 23, 2013 Announced)

∙ As the Government Organization Act was amended, the Minister of Security and Public Administration was replaced by the Minister of Science, ICT & Future Planning to take charge of national informatization.

∙ The President's Council on Informatization Strategies was abolished.∙ The Chairmanship of the Chief Information Officer Council was

changed to be co-chaired by the Minister of Science, ICT & Future Planning and Minister of Security and Public Administration.

Framework Act on National

Informatization

Partial Amendment (April 29, 2013 Passed by the

National Assembly, May 22,2013 Announced)

∙ Informatization plans were reflected in large-scale investment proj-ects (Article 13)

∙ Plans to prevent and eliminate Internet addiction were estab-lished and a certification system was introduced (Article 30, and Articles 30-2 through 30-8 were added)

∙ The certification system for enhancing information accessibility of the disabled and elderly was introduced(Articles 32-2 through 32-4 were added)

∙ Sound information and communication ethics was established(Article 40)

Electronic Government Act

Partial Amendment(February 26, 2013 Passed by the National Assembly, April 5, 2013 Announced)

∙ Regulations for consigning management of e-government projects to experts (Article 64-2 was added)

∙ Duties of the e-government project manager, etc. (Article 64-3)

Electronic Financial Transaction Act


National Assembly,May 22, 2013 Announced)

∙ This law was not applied to financial companies not conducting electronic financial transactions. (Article 3-3)

∙ The responsibilities of electronic financial service providers subjected to a successful security breach/hacking were clarified (Article 9-1)

∙ Information technology plans were established and submitted(Article 21-4 was added)

∙ It was made mandatory to analyze and evaluate the vulnerabilities of the electronic financial infrastructure facilities (Article 21-3 was added)

∙ Electronic infringements were prohibited and responses to in-trusion incidents were defined(Articles 21-4 through 21-6 were added)

∙ Investigation of subsidiary electronic financial business operators was reinforced (Articles 40-4 through 40-6 were added)

Speaking of revision and enactment of domestic laws related to the Internet during the first

half of 2012~2013, there hasn’t been much activity due to the adjourning of the National

Assembly (May 31, 2012), the presidential election (December 19, 2012) and the reshuffling of

the government, but the agency in charge of Internet-related laws was changed pursuant to

the government Organization Act. The Internet addiction prevention and Internet accessibility

programs were guaranteed, measures were taken to respond to intrusion incidents in electronic

financial transactions, and the Game Rating Board was abolished.

【Table 3-3-2 】Revision/Enactment of Internet related laws and description (as of May 2013)


Game Industry Promotion Act


National Assembly, May 22, 2013 Announced)

∙ The Game Rating Board was abolished and the Game Management Board was established (Article 16)

∙ The Game Management Board was incorporated (Article 16-2 was added)

∙ To audit and supervise the Game Management Board, the status of the auditor was changed from non-permanent to permanent(Article 17-2)

∙ The targets of the rating business consigned to the private sector were extended from online games only to include arcade games, but those games restricted to adults (i.e. prohibiting anyone under the age of 18) were excluded from consignment to the private sec-tor (Article 24-2)

∙ To consign the follow-up management authority of the Minister of Culture, Sports and Tourism to the Board, legal grounds were established (Article 42-2)

∙ The time limit for government support of the Game Rating Board was deleted (Article 5 of the supplementary provision was added)

Act on Consumer Protection for

Electronic Commerce

Transactions

Partial Amendment(April 30, 2013Passed by the

National Assembly)

∙ For small-sum transactions less than KRW50,000, in case of pre-paid mail order sales, mail order business operators will allow consumers to use an escrow service or enter into a Consumer Indemnity Insurance Contract if the consumer chooses to do so in order to pro-tect the rights of the consumers (Paragraph 1 of Article 24-3 was deleted)

Act on the Establishment and

Operation ofthe KCC

Partial Amendment(March 22, 2013Passed by the

National Assembly,March 23, 2013

Announced)

∙ Broadcasting and advertising policies, programming and evaluation policies, terrestrial broadcasting policy, broadcasting and commu-nication market research, broadcasting and communication user pro-tection, promotion of viewers‘rights, personal information pro-tection ethics, and broadcasting frequency management are stipu-lated in the duties of the KCC (Article 11-1).

∙ The provisions regarding the licensing and re-licensing of and chang-ing the license of businesses related to new media, such as a sys-tem operator business and satellite broadcasting are now included in the considerations and decisions of the KCC (Article 12-8).

MOLEG (compiled), www.law.go.kr


4. International Cooperation

A. Internet Governance

One of the results of the ITU-WCIT (World Conference on International Telecommunications)

meeting held in December 2012 was that Internet governance emerged as an important issue.

Since then, the role of the government in Internet governance and decision-making processes

attracted public attention, and at the WTP (World Telecommunication/ICT Policy Forum), held in

May 2013, among the 6 core agendas addressed, Internet governance-related issues, such as

the ‘multi-stakeholder model’ and reinforced cooperation, and the ‘expanded role of the gov-

ernment in Internet governance’, proposed by Brazil, were intensively discussed. Meanwhile,

the ICANN (Internet Corporation for Assigned Names and Numbers), which sided with the pri-

vate-centered decision-making structure, established plans to expand the role of the govern-

ment in the decision-making process, such as establishment of the relationship between the

board of directors and the GAC (Government Advisory Group), and improvement of the proce-

dure for GAC participation in the policy development process. In this way, recent international

discussions on Internet governance are focused on the Internet governance decision-making

system based on the multi-party cooperative model and the role of the government in the model.

Internet governance based on the multi-party cooperative model has been recently discussed

in Korea as well. The ‘Korea Internet Governance Alliance’, which was launched in April 2012,

hosted the 2nd Korea Internet Governance Forum at Konkuk University last May where it an-

nounced current discussions on Internet governance in the international community, and of-

fered an opportunity to freely discuss the direction of Korea’s future responses. Also, as

Internet use in the Asia-Pacific region has been increasing sharply the APIGF (Asia-Pacific

Internet Governance Forum), which was established to identify issues reflecting regional char-

acteristics and respond to changes in international Internet governance, is scheduled to be

held in Songdo, Incheon in September 2013.


B. Cooperation with International Organizations

Countries around the world and many international consulting groups began to take interest

in the enormous influence of the Internet. The original work scope of the ITU was limited to

communication, but as the scope of communication has expanded with the passage of time,

member countries have been debating constantly the extent to which the meaning of commu-

nication stipulated in the charter of the ITU must be expanded and how the ITU will participate in

the discussions on the Internet, which have been spreading organically and multi-dimensionally.

The OECD has paid attention to the creation of the ‘new economy’ by using the term

‘Internet economy’, and predicted that it would lay the foundation for future economic activities.

Not only the OECD, but also other international organizations are taking interest in the Internet

economy. In particular, many developing countries are considering ICT (information & communi-

cation technology) as being the foundation for future economic growth, and are interested in

the Internet and ICT technology in terms of fostering both an Internet economy and knowl-

edge-based economy. As the influence of the Internet grows, countries around the world and

many international organizations are engaged in heated debates to determine the direction of

future Internet policies and ensure the development of the Internet.

C. Supporting Overseas Exports

1) Global Marketing Support

To proactively respond to the changes in the global information, communication and broad-

casting market environment, the MSIP and the KISA are working hard to lay the foundation for

making inroads into overseas markets and cooperate with countries around the world based on

the global ICT market forecast and opinions of the industry. They support overseas consulting,

and hold overseas road shows and broadcasting contents showcases.

Before building information, communication and broadcasting systems, they study the legal

systems, markets and technologies of the target countries, and provide overseas consulting to

analyze the technological and economic feasibility and expected benefits. This consulting serv-

ice has helped foreign countries adopt Korean technologies and services at an accelerated

pace, and provided various overseas consulting services in 2012.


【Table 3-4-1 】Overseas consulting in 2012

Country Project Overseas partner Project period

Rwanda Government security Development Commission 4. 25 ~ 10. 24

Kazakhstan Radio management systemTelecommunication Technology

Support Analysis Center4. 25 ~ 9. 25

Belarus Emergency rescue system Ministry for Emergency Situations 7. 11 ~ 12. 31

IraqGovernment satellite communication

networkDepartment of Telecommunication 7. 13 ~ 11. 30

KISA

KISA provides face-to-face consulting and demonstrations of technologies in countries wish-

ing to introduce the outstanding services and technologies of Korea, and hosts overseas road

shows to reinforce the foundation for entry into the markets of those countries.

In 2012, the agency reinforced its market exploration and export consulting to provide prac-

tical business support for SMEs, and hosted road shows tailored to the needs of domestic

companies wanting to make inroads into overseas markets and in consideration of the target

countries’ intentions to introduce Korean technologies and services, thereby helping Korean

technologies and services penetrate overseas markets. To date, KISA has hosted a total of 6

overseas road shows in the Commonwealth of Independent States, key Southeast Asian coun-

tries, and countries interested in the strategic products of Korea.

2) Support for SMEs Marketing Efforts

KISA has provided comprehensive support to help SMEs solve the problems they face related

to information, communication and broadcasting as well as Internet companies with all their

export needs from overseas expansion planning and execution to follow-up management.

First, the agency appointed experts on trade data, overseas market research, certification in-

formation, contracts and laws as consultants, and operated an overseas expansion consulting

center within the agency to provide continual consulting services both online and in person

with regard to their difficulties trying to penetrate overseas markets. Second, KISA selected

promising SMEs with potential for expansion into overseas markets, and made sure that they

would receive one-on-one customized consulting from consulting companies well versed in

those countries which the SMEs hope to make inroads into.


3) CONEX Operation

The MSIP and the KISA have been providing timely and accurate information on overseas

market trends for domestic enterprises and information, communication and broadcasting serv-

ice providers who hope to penetrate overseas markets but have difficulties due to a lack of

relevant information.

To this end, the agency is using the information, communication and broadcasting overseas

information system (CONEX) to select countries and products with the most potential for suc-

cess in the market based on the demands of local enterprises, such as the countries they want

to penetrate and countries with information needs. In particular, in 2009, KISA started to grad-

ually increase the number of countries of which they collected information. In 2013, the agency

increased the number from 40 to 58 reflecting its information, communication and broadcasting

strategy and market research. Also, KISA provides special in-depth reports and regular reports

covering 14 strategic products, such as smart 4G, mobile TV, Internet-based TV and broad-

band, as well as information on overseas expansion, which individual companies cannot obtain

easily. KISA provides this information to help domestic companies with their effort to make in-

roads into overseas markets in a practical manner.

To provide overseas market information conveniently, KISA provides an online web service

named CONEX (http://conex.kisa.or.kr). Particularly, in 2012, to keep pace with the diverse con-

nection environments of users, the agency built a website for mobile access (http://m.conex.or.kr)

that has an especially user-oriented environment, and in 2013 it is planning to improve the

design and search capability to make it easier to find desired information.

In addition, KISA sends online newsletters to subscribers twice a week so they can receive

overseas market data more quickly. Also, as new information appears, the agency informs sub-

scribers via social networks like Twitter and Facebook so they may have access to the latest

information immediately.

Appendix

● List of ISPs

● Abbreviations

96 / Appendix

List of ISPs

(as of June 2013)

No. Company Name Phone No. URL

1 GANGWONNET +82-33-241-4435 www.igbn.co.kr

2 GTP +82-31-500-3004 www.gtp.or.kr

3 KCNNET +82-63-850-8575 www.kcn.tv

4 NOWCOM +82-2-590-4073 www.nowcom.co.kr

5 NIBDIGITAL +82-32-882-9660 www.nibtv.co.kr

6 Netropy +82-70-7432-2345 www.netropy.co.kr

7 VAAN +82-2-2016-0841 www.nexg.net

8 KOREAONLINE +82-2-2039-7749 www.kol.net

9 DOTNAME +82-70-7090-0828 www.dotname.co.kr

10 HIPASS +82-42-624-5181 www.daejon.com

11 DUZON +82-2-6233-5393 www.duzon.com

12 DICN +82-51-831-5775 www.dicn.net

13 DURUAN +82-2-6330-8044 www.duruan.co.kr

14 DREAMX +82-2-6007-6009 www.dreamline.co.kr

15 LDCC-SAFEGUARD +82-2-2626-3933 www.ldcc.co.kr

16 HCLC +82-2-831-0510 www.funp.co.kr

17 VTOPIA +82-2-563-2245 www.vtopia.co.kr

18 SAMSUNGSDS +82-70-7015-6504 www.sds.samsung.co.kr

19 DIRECT-HOSTING +82-2-2029-0342 www.sds.co.kr

20 SCSNET +82-55-740-3121 www.iscs.co.kr

21 SEJONGNET +82-2-1688-7380 www.sejongtelecom.net

22 SMILESERV +82-70-7549-7062 www.1000dedi.net

23 SSEN +82-2-3397-1665 -

24 SINC +82-2-3397-1207 www.sinc.co.kr

25 SIMPLEXINTERNET +82-2-6276-1572 www.simplexi.com, www.cafe24.com

26 CYBERONEIDC +82-2-829-3066 idc.cyberone.kr

27 CDNETWORKS +82-2-3441-0491 www.cdnetworks.co.kr

28 CNM +82-70-7410-4703 www.cnm.co.kr

Appendix /97


29 CMBDONGBU +82-53-744-5700 cmbtg.tv

30 CMBSUSUNG +82-53-744-5700 cmbtg.tv

31 CST21 +82-2-573-9262 tel.cst21.com

32 CMBKWANGJUNET +82-62-461-9684 www.cmbkj.tv

33 CMBI-NETDJ +82-70-8110-7395 www.icmb.tv

34 CMBPLUSONE +82-70-8125-0119 cmbds.tv

35 CMBI-NETHK +82-70-8110-7144 -

36 CJ-HELLOVISION +82-2-2600-2941 cjyc.net

37 DITIZONE +82-70-8145-1031 www.abn.co.kr

38 KPIN +82-2-2273-9744 www.kpin.net

39 INET +82-70-8220-7748 www.inet.co.kr

40 INDICLUB +82-2-1566-5670 www.ilinkkorea.co.kr

41 JIGUNET +82-2-420-8241(125) www.iosystem.co.kr

42 IP4NET +82-2-6925-0042 www.ip4.co.kr

43 broadNnet +82-80-8282-106 www.skbroadband.com

44 SK-NET +82-2-6400-4297 www.sk-net.com

45 SK-TELECOM-NET +82-2-6100-4573 sktelecom.com

46 SKTelink +82-70-7400-1716 www.sktelink.net

47 NHN-NET +82-31-600-6045 www.nhncorp.com

48 GIN +82-2-2156-9000 www.kr.ntt.com

49 ELIMNET +82-2-3149-4923 www.elim.net

50 LXN +82-2-887-6112 www.lxnetworks.co.kr

51 LG-NET +82-2-6710-3486 www.lgcns.com

52 PUBNETPLUS +82-2-2089-7755 www.pubnetplus.ne.kr

53 LGTELECOM +82-2-6290-1680 www.lguplus.com

54 BORANET +82-2-6928-3087 www.dacom.net

55 KIDC +82-2-2086-2924 www.kidc.net

56 Xpeed +82-2-6928-3087 www.powercomm.com

57 YBN +82-33-749-3551 www.ybn.co.kr

58 TTNet +82-2-2101-0150 www.tt.co.kr

59 OK-NET +82-2-2107-3600 www.ok-net.net

60 SHINBIRO +82-2-1666-0120 www.shinbiro.com

98 / Appendix


61 ONAIRIC +82-70-7897-7171 -

62 ULNETWORKS +82-2-396-0100 www.ul-net.co.kr

63 ESONET +82-2-3281-1007 www.esocom.com

64 eGIOSNET +82-2-2116-8035 www.egios.com

65 EHOSTIDC +82-2-3476-0478 www.ehostidc.co.kr

66 IIAC +82-32-741-5685 www.airport.kr

67 JCNIDC +82-70-7704-7742 www.jndinfo.com/idc

68 JNDINFO +82-31-226-9399 www.jndinfo.com

69 GDSYS +82-70-7337-7355 www.gdsys.co.kr

70 GNJ +82-70-8795-0792 gnj.kr

71 RayNet +82-2-2109-5000 www.raynet.co.kr

72 CMBMUTINET +82-41-858-0100 www.cmbtv.com

73 TELEHOUSE SEOUL +82-2-310-0461 www.kddi.co.kr

74 KINXINC +82-2-2187-6380 www.kinx.net

75 KORNET +82-2-500-6630 www.kornet.net

76 PUBNET +82-2-3674-5890 www.pubnet.ne.kr

77 KTFWING +82-31-727-1093 www.ktf.com

78 KITINET +82-2-2222-9232 www.ktn.co.kr

79 KOREACENTER +82-2-2627-6634 koreacenter.com

80 KOINS +82-2-767-7128 www.kosocm.co.kr

81 CROSSONNET +82-2-6207-6208 www.crson.net

82 WIZCDN +82-2-2015-3419 www.clunet.co.kr

83 GSD +82-70-8188-5083 www.gstv.co.kr

84 GINAMHANVITNET +82-70-8188-2082 www.tbroad.com

85 TBROADNAKDONG +82-70-8188-9089 www.digitalbusan.net

86 NAMDONGNET +82-70-8188-6092 www.tbroad.com

87 QRIXINTERNET +82-70-8188-9743 www.tbroad.com

88 digitalbusanet +82-70-8188-9089 www.digitalbusan.net

89 DONGDAEMUNCABLEINTERNET +82-70-8188-5770 www.dcncatv.co.kr

90 SAEROMNET +82-70-8188-6092 www.tbroad.com

91 QRIXNET +82-70-8188-5083 -

92 TBROAD +82-70-8188-1088 www.tbroad.com

Appendix /99


93 VITSSEN +82-70-8188-3082 www.tbroad.com

94 JEONJU-HANVITNET +82-70-8188-8085 www.tbroad.com

95 CHUNGBUVITSSEN +82-70-8188-7086 www.tbroad.com

96 TBROAD-HANVIT +82-31-480-9449 www.tbroad.com

97 TCNINTERNET +82-53-254-2940 www.tcnhinet.com

98 PIRANHA +82-2-1644-7568 www.turbonet.co.kr

99 HINETWORKS +82-2-1544-4450 www.hilineisp.net/

100 HAIONNET +82-2-3281-3456 www.haion.net

101 KREONet +82-42-869-0707 www.kreonet.re.kr

102 KREN +82-2-880-5364 www.kren.ne.kr

103 EDUNET +82-2-2118-1471 www.keris.or.kr

104 KDATA +82-31-234-0445 -

105 KDTIDC +82-2-2062-7671 www.kdtidc.com

106 KTNET +82-2-6000-2705 www.ktnet.co.kr

107 SIGNGATE +82-2-360-3227 www.signgate.com

108 KOREN +82-2-2131-0466 www.ngix.ne.kr

109 SEODAEGUCLEANNET +82-53-567-6000 www.scs5.co.kr

110 PCBNET +82-54-275-3581 www.pcbtv.net

111 CABLENET +82-70-8145-7747 www.kctvjeju.com

112 UPASS +82-61-270-1542 www.hbc24.co.kr

113 KCTVNET +82-62-417-6070 www.kctv.co.kr

114 URINET +82-70-8145-6300 jbclife.com

115 GCS +82-70-8145-6143 www.gcs.co.kr

116 NARA-CABLE-TV +82-31-894-0122 www.naraspeed.net

117 SAERONET +82-70-8109-4694 www.saeronet.com

118 HCN +82-70-8109-1656 www.hcn.co.kr

119 HYOSUNGCDN +82-2-6288-6507 www.hyosungitx.com

120 JCN +82-52-928-0025 www.jcntv.co.kr

100 / Appendix

Abbreviations

3GPP 3rd Generation Partnership Project

6NGIX IPv6 Next Generation Internet eXchange

A

APII Asia Pacific Information Infrastructure

ASEM Asia Europe Meeting

B

BcN Broadband convergence Network

BRM Business Reference Model

C

CA Carrier Aggregation

CDNI CDN Interconnection

CERT Computer Emergency Response Team

CP Contents Provider

CRM Customer Relationship Management

D

DCN Dynamic Circuit Network

DDoS Distributed Denial of Service

DMB Digital Multimedia Broadcasting

DOCIS Data Over Cable Service Interface Specification

E

E-PON Ethernet Passive Optical Network

ESNet Energy Science Network

F

FedRAMP Federal Risk and Authorization Management Program

Appendix /101

FIA Future Internet Architecture

FIND Future INternet Design

FPS First-Person Shooter

FTTH Fiber To The Home

G

5G Fifth-Generation

G2B Government to Business

GE Gigabit Ethernet

GEANT Gigabit European Advanced Network Technology

GENI Global Environment for Network Innovations

GEPON Gigabit Ethernet Passive Optical Network

GLORIAD GLObal RIng network for Advanced application Development

GPS Global Positioning System

gTLD generic Top Level Domain

H

HFC Hybrid Fiber Coax

HTML5 HyperText Markup Language version5

I

IAR Internet Address Resource

ICT Information & Communication Technology

IDC Internet Data Center

IGF Internet Governance Forum

IoT Internet of Things

IP Internet Protocol

i-PIN Internet Personal Identification Number

IRNC International Research Network Connections

IX Internet eXchange

K

KINX Korea Internet Neutral eXchange

KIX Korea Internet eXchange

KOREN KOrea advanced REsearch Network

102 / Appendix

KORNET KORea-telecom interNET

KREN Korean Research & Education Network

KREONET Korea Research Environment Open NETwork

L

LBS Location Based Service

LTE Long Term Evolution

M

M2M Machine to Machine

MIMO Multiple Input Multiple Output

MoIP Multimedia over Internet Protocol

N

NFC Near Field Communication

NGN New Generation Network

NII National Information Infrastructure

O

OS Operating System

OSCARS On-demand Secure Circuits and Advanced Reservation System

P

PON Passive Optical Network

PPSP P2P Streaming Protocol

R

R&D Research and Development

RF Radio Frequency

ROADM Reconfigurable Optical Add-Drop Multiplexer

S

SDN Software Defined Network

Appendix /103

SNS Social Network Service

T

TCP Transmission Control Protocol

TDM Time Division Multiplexing

TEIN Trans Eurasia Information Network

TPE Trans-Pacific Express

TPS Triple Play Service

TRS Telecommunication Relay Service

U

UAAG User Agent Accessibility Guidelines

UBcN Ultra Broadband convergence Network

UCC User Created Contents

UFB Ultra-Fast Broadband initiative

UHDTV Ultra High Definition Television

UI User Interface

ULP Ultra Low Power

USB Universal Serial Bus

USN Ubiquitous Sensor Network

V

VM Virtual Machine

VOD Video On Demand

VoIP Voice over Internet Protocol

W

WiBro Wireless Broadband

Wi-Fi Wireless-Fidelity


Edited by

Korea Internet & Security Agency (KISA)

Vice President Jae Myung Lim ([email protected])

General Manager Ji Yul Yoo ([email protected])

Researchers Hwa Jo ([email protected])

Do Yeon Hwang ([email protected])

Published by

Ministry of Science, ICT and Future Planning (MSIP)

Complex-Gwacheon, 47, Gwacheon-ro, Gwacheon-si, Gyeonggi-do,

Korea, 427-700

Tel : +82-1335

http://www.msip.go.kr

Korea Internet & Security Agency (KISA)

Daedong B/D, Garak-dong 79-3, Songpa-gu, Seoul, Korea, 138-803

Tel : +82-2-405-4118

http://www.kisa.or.kr

Printed by

Myung-Jin C&P Co., Ltd

Tel : +82-2-2164-3000

Fax : +82-2-2164-3020

All rights reserved by MSIP & KISA.

Korea Internet White Paper 2013 English

Technology

Transcript of Korea Internet White Paper 2013 English