Showcasing Korea`s Technological Strongths Showcasing Korea`s

Transcription

2006-11-1
2006.11.7 01:1 PM
페이지1
001 채널맥(3443-0701)
Korea’s No.1 Information Technology Journal
November 2006 / Vol. 29
www.ittimes.co.kr
U.S. $8.80 / KOR.
8,500
11
ISSN 1739-2950
Open Korea / MOCIE, KOTRA (pages 14~16)
University / KAIST (pages 18~19)
Local Government / Incheon (pages 20~23)
CVCE 2006 / (pages 44~52)
GStar 2006 / (pages 56~65)
RF Co
ID ve
(Se / U r S
ep S
t
ag N o r
es
26 2 0 y
~4 0
3)
6
5 Fl, Hyundai Intellex Bldg, 261, Nonhyeon-dong, Gangnam-gu, Seoul, Korea(135-832) Government registration No. Seoul-Ra-10914 Tel: (82-2)3459-0664~0665 Fax.:(82-2)514--7183
Showcasing Korea’s
Technological Strongths
2006-11-1
2006.11.7 01:1 PM
페이지2
001 채널맥(3443-0701)
Specialist
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www.asianaidt.com
2006-11-1
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Contents
U.S. $8.80 / KOR.£ 8,500
10
44 CVCE 2006
6
Publisher’s Message
32
8
Editorial
The High Cost of Extortion
34
10
Opinion
Google Comes in Peace
11
In-depth Report/IPv6
Worldwide IPv6 Readiness
36
38
40
Open Korea
MOCIE: No Significant Investment Changes Since North
Korea’s Nuke Test
KOTRA: New State-of-the-art Plaza for Foreign Investors
41
17
Forum/WiMAX Forum
Wonderful Future Coming with WiMAX, WiBro Utilization
44
18
University/KAIST
Comprehensive Organizational, Academic Reforms at KAIST
14
15
47
48
Opinion: Actualization of Ubiquitous Society Coming with
RFID Standardization
Opinion: Five Technical Challenges Face Mainstream RFID
Adoption
SK Telecom
Diverse Killer Service Knowhow
Asiana IDT
Asiana IDT Embraces Future of Ticketless Travel
Kia Motors
Kia Successfully Introduces RFID-based e-Logistics
System
Keynote Speech
Experts to Speak About Futuristic City, Technology
Special Report/Display Korea@CVCE2006
Overview: New Korean Display Industry Stronghold in
Development
S-LCD Corporation
Eighth Generation LCD Fabrication Line
Interview Highlight
Representative Display Industry Hub Construction
Samsung, LG Pulls Ahead of Foreign Companies in
Crystall Valley 2006
Building a Reputable PDP Company
-Samsung SDI to actualize Premium Line
20
Local Government/Incheon Metropolitan City
Incheon to Have World’s Second Highest Towers in 2015
24
Policy Direction/Korea Customs Service
KCS, Global Leader in Customs Administration
52
Cover Story RFID/USN Korea 2006
Overview: Strong Incentives for RFID Development Show
Results
Interview with Kim Won-sik, Deputy Minister of MIC
Korean RFID Industry Gearing Up for Global Applications
Interview with Kim Shin-bae, Chairman of Korea Association of
RFID/USN
RFID/USN Korea 2006 Opening with a Bang
53
2006 Global Costume Festival
2006 Global Costume Festival will be Held in Seoul
54
Technology/Vanco
Telecoms Broker Launches New Service
26
28
30
4
_ August 2006 KOREA IT TIMES
50
56
Game Exhibition/Korea@GStar2006
Overview: Korea Shows Reputation for Gaming
Powerhouse
56 GStar Korea 2006
58
60
62
64
65
66
68
Gstar 2006 Features Online, Mobile Games
GStar to Attract Ten Thousand Foreign Publishers by 2010
NCsoft: Heaven, Hell, and Dragons
Webzen: Taking Next-generation Games to International
Audience
WeMade Entertainment: Award-Winning WeMade Entertainment
Plans to Expand
NHN: Mixing Fun Games With Serious Data Retriveal
Technology Makes Good Business
Academia/IFUP-ICT
Educating IT Manpower for the 21st Century
In-depth Story /IPTV (pages 16~19)
Samsung, Hwang Chang-kyu (pages 24~27)
Local Government /Incheon (pages 28~35)
University / SNU, ICU (pages 20~23)
Special Report / Jeju (pages 56~61)
Ne Co
cle ve
r
(See ar S
t
pa M or
ge e
s 38 d y /
~4 ic
9) in
e
ISSN 1739-2950
26 RFID/USN Korea 2006
www.ittimes.co.kr
Chairman & Publisher
Executive Advisor
Publisher & Editor- in- Chief
Kim Tae -sub
Han Kon- ju
Monica Jung Younboo
Special Advisor
Chang Hong-yul
Supplement Director
Managing Editor
Senior Editor
Editorial Director
Kim Joo-hyung
Yeo Hong-il
Matthew Weigand
Lee Kyung-hwan
IT Industry Editors
Business Editor
Senior Reporter
Contributing Writers
Lee Chung-moo
Lee Kang-soon
Jeffrey D. Bohn
Koo Won-hum
Staff Reporters
Internet Manager
Kang Joo-young
Yeon Choul-woong
Lee Suk-woo
Bluellet Choi
Shin Sung-won
Jude Kim
Kim In-ki
Cho Hee-sang
Ryu Mi-ja
Bok Dong-kyu
Business Manager
Circulation Manager
Administration Manager
PR Manager
Sales & Marketing Manager
Publication Team Manager
Kim Chang-ho
Park Mi-jung
Kim Si-hwan
Kim Rae-ho
Yoon Jong-jin
Yoon Hee-joo
Photographer
Advertising Manager
Art Director
Designers
70
Country Report/Austria
Setting High Standards In International Exchange
72
People & Events
Financial Auditor
Financial Team
Choi Eun-kyung
Cheon Hong-joo
74
Photo News
76
Spotlight/Asiana Airlines
78
On the Scene Report/KOTRA-Middle East & Africa
United Arab Emirates Prefers Korean
Correspondents
N.America
Europe
Southeast Asia
Far East
China
Oceania
SW Asia
M.East
James Joo young-hoon
Choi Young-zun. Lee Sung-ki
Lee Jin-bok
Kim Moon-soo
Chun Jong-sung
You In-kyung
Choi Duk-hee
Chung Jung-ja
80
82
84
86
88
90
92
Real-Time News
OECD IT Minister Meeting to Be Held in Seoul
Samsung Electronics Posts High Net Income
SK Telecom Shows Subscriber, Revenue Increase in Q3
Samsung Unveils Sponsor Activation Plans
National Semiconductor Unveils New Products
World Cruise Ships Calling at Busan Port
SK Telecom’s Unethical Business Activity Causes Controversy
94
News Brief
Overseas Sales/Distribution Agents ( Reference: www.ittimes.co.kr)
Korea IT Times Guide
Published by KDC Times Co of the KDC Group
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2006-11-1
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Publisher’s Message
* Government to concentrate its efforts all the more on
allaying foreign investor fears
* RFID presents new future in industrial and private
sectors
* Game shows showing lack of interest globally
As North Korea has decided to return to the six-party talks this month, North
Korea’s nuke problem which strained the world during October has come again
to a diplomatic solution. We have worried that foreign investment would dry
up, IT companies would fail, and South Korea’s dreams to become the hub of
Northeast Asia would disappear. However, it seems that business as usual
continues on the Korean peninsula.
Keeping an eye on the fact that there have been no unusual changes in
Kim Tae-sub
foreign investments since North Korea’s announcement of its nuclear test, we
Chairman and Publisher
would like to urge the government to concentrate its efforts all the more on
allaying fears abroad by keeping in constant touch with overseas investors and
officials of credit rating firms to assure them of Korea’s strong foundation.
The Korea IT Times November issue delves intensively into three conferences: the Crystal
Valley Conference and Exhibition (CVCE) 2006, the Radio Frequency Identification Ubiquitous
Sensor Network (RFID/USN) 2006, and the GStar 2006 International Game Show.
CVCE 2006 has a significance in that the purpose of the Conference and Exhibition is to help
Chungnam province. The province can be nurtured as a production stronghold possessing over 30%
of world display market and as a dynamic innovation cluster that combines manufacturing and
research functions.
Regarding RFID/USN, we believe the Ministry of Information and Communication (MIC) should
do its best to foster its full-scale introduction and application throughout industries. RFID/USN
contains unlimited growth potential as a core infrastructure technology to actualize a Ubiquitous
society.
In addition, the u-City concept will be covered in great detail at the RFID/USN Conference.
From intelligent roadways to intelligent watermelon, RFID tags have a million new applications
within the bright Ubiquitous future.
The news about GStar 2006 is not so encouraging, however. Many game companies are
choosing to not participate in exhibitions such as this. Even domestic companies are turning away
from the show. Nevertheless many new game titles will be shown including new offerings from
online game giant NCsoft and Sega. All together, almost 200 developers will showcase the next
generation of gaming.
Kim Tae-sub
6
_ November 2006 KOREA IT TIMES
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001 채널맥(3443-0701)
Editorial
The High Cost of Extortion
O
n October 9, 2006, North Korea successfully
conducted an underground nuclear test. News
agencies all over the world scrambled to confirm
this historic and chilling event. Governments of the
world unanimously condemned the action. Analysts
everywhere began to offer their opinions on the
ramifications of the explosion, especially regarding
North Korea’s closest neighbor on the peninsula,
South Korea. Speculation even arose about which
neighbor North Korea would attack first.
Some said that the threat of nuclear attack would
destroy South Korea’s economy. Foreign investment
would dry up, imports and exports would trickle out,
IT companies would fail, and South Korea’s dreams to
become the hub of southeast Asia would disappear
like so much radioactive smoke. Analysts used a lot of
paper explaining exactly how the economy of this
country would collapse before being burned in an
infamous sea of fire, as North Korea has been promising for such a long time. Newspapers said that the
tragedy was a failure of South Korean diplomacy, or
Japanese policy, or US tactics. Some even placed the
blame on China.
Others, however, had a different idea and more
faith in the technological South, and a more practical
view of the situation as a whole. They cited the small
dip and recovery of the South Korean stock market as
evidence that the impact of the North’s actions were
not so devastating. No shocked CEOs ran screaming
from the country. No multinational corporations
closed up shop and headed for greener pastures. The
South Korean won did not plummet, and no extra IMF
intervention was required.
In fact, new corporations continued to announce
plans to invest in South Korea. Most notably Google
announced plans to invest a large sum into the South
Korean economy, undeterred by the threats of its
8
_ November 2006 KOREA IT TIMES
northern neighbor. Business continued as usual in the
nation’s capital.
Business as usual in Seoul is business at the point
of a gun. Actually, it is business at the point of
approximately five hundred 170mm Koksan artillery
guns, which are rumored to be able to fire a chemical
warhead every fourth round. It is also business within
the range of over two hundred multiple-launch rocket
systems and approximately six hundred Scud missiles.
Potentially, North Korea could also use its approximately one hundred No-dong missiles against South
Korean business targets as well although it is more
likely they would be used against a more distant target
such as Japan. Business in Korea has been at the point
of quite a few guns for quite some time now. When
stacked up against all of the conventional ways Seoul
could be destroyed in a matter of minutes, what difference does a few nuclear bombs make?
North Korea’s constant threat of war has become a
well-known song by now. The North has specifically
threatened to turn various areas of the region into a sea
of fire no less than 8 times in the past decade. The
phrase has become so well-used it has become the title
of a Tom Clancy novel in the United States. This latest threat is only a small pebble added to a mountain.
Any foreign investor or domestic company in
South Korea is already quite familiar with the threat
level of North Korea. And any sound investment
company or business enterprise on the peninsula has
long ago factored the risk of North Korea into their
bottom line. Nasty surprises tend to wreak havoc with
international business, but there are no surprises here.
However, business as usual on the Korean peninsula has an effect that is more sinister and more difficult
to detect. Anyone familiar with North Korea’s diplomacy over the past ten years can easily see a pattern.
The North wants as much free stuff as it can get.
Whether it is humanitarian aid like rice and grain, or
more substantial aid like concrete and steel, the North
wants it all. It has quickly caught on to the fact that
more threats give more aid. Like a street corner gangster, the North will threaten to attack its neighbors
until it gets as much money and aid as it can. That is
nothing more than simple extortion.
North Korea has more in common with organized
crime than just extortion. It also resorts to counterfeiting, kidnapping, theft, burglary and murder. The
reason for such acts is always the
same - profit.
And South Korea makes a very
tempting target for the neighborhood mafia. In global rankings,
South Korea is 10th in nominal
GDP, right below Spain and right
above Brazil. South Korea is also
17th highest worldwide in ranking
of investment as a percentage of
GDP, and its government is also
ranked as the 20th richest government by savings.
How much higher could South
Korea’s nominal GDP ranking be
if it was not being extorted by the
North? Perhaps the country could
pull ahead of Canada at 8th, or
maybe even surpass France at 6th
without such a monkey on its
back.
How much higher would
investment in Korea rise without
the constant threat of being turned
into a sea of fire? It might be able to surpass
Thailand’s ranking at 10th or perhaps pull even with
Vietnam’s slot at number 6 in the future.
Without providing such a large expense of material to the North in response to threats, how much higher could the national savings of Korea climb? It could
probably easily surpass China at 18th, and might
climb to the level of Singapore at 11th. But if it continues to give such large tribute to the North, it might
not climb at all.
So, while a constant threat of violence from North
Korea will probably not adversely affect South
Korea’s economy, it does have an immeasurable
repressive effect on South Korea’s potential. North
Korea’s criminal activities are keeping South Korea
down.
Extortion is always a bad investment. It is, as the
English idiom goes, throwing good money after bad.
Or, as the Korean idiom says, it is like pouring water
into a bottle with a hole in the bottom. The only thing
that paying extortion money accomplishes is to make
sure that the thug will come back
and ask for money again.
Therefore, the only thing that giving economic aid to North Korea
accomplishes is that North Korea
will continue to ask for more in the
future.
One could think of South Korea
as a business, with its citizens as
investors. Every businessman
knows that a business has a obligation to its stockholders to make
good investments. Bad investments by the company hurt the
company, the employees, and the
investors. Bad investments by a
country hurt the economy as a
whole, both in the public and private sector.
South Korea could do this by
requiring more obligations from
North Korea. If the South gives
monetary aid, it could structure the
aid as a loan rather than as charity.
If the North was obligated to pay back the aid after
some time, the relationship between the two countries
would be a more professional business relationship
rather than a criminal-and-victim relationship. The
South could begin to attach requirements to food
shipments as well, becoming more involved in food
distribution in the North to make sure that the aid
actually gets to the North Korean people rather than
being sold to another country.
But if South Korea cares about its own future, it
must stop making bad investments in the North.
KOREA IT TIMES November 2006 _
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Opinion
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In-depth Report
Google
Google Comes in Peace
Search giant can benefit Korea with closer global connection
Matthew Weigand,
Senior reporter
at the Korea IT Times
G
oogle Inc. announced recently that they will
invest US$10 million over the next two years to
build a research and development center in South
Korea.
There are various opinions about this news. Some analysts have expressed concerns that Google will take a significant share of the search market and decrease the value
of domestic search companies within Korea. Others are
worried that Google may take the best employees in the
local technology market.
I personally think that Google placing a research center
in Korea is a benefit for the country. Outside of Korea, the
name Google is synonymous with search. In fact, to
google has become a popular new verb in several different
languages, specifically meaning to find something on the
Internet. It offers a wide variety of truly innovative services and features that help its users look at and think about
information in an entirely new way.
Google may be synonymous with
the Internet outside of Korea, but
inside Korea it is a different story.
Even though Korean netizens use the
same international network as the rest
of the world, the factors of a different language and culture
have combined to create what feels like an isolated Korean
island within the larger Internet sea.
Korean web sites have isolated themselves from the rest
of the Internet in a number of ways. First, and most significantly, many Korean web sites actually deny access to nonKorean search engine spiders. Second, and almost equally
significant, Korean web site design style relies heavily on
Flash-based graphical interfaces and Javascripted page
links. This style may be visually appealing, but it is difficult for the same search engine spiders to access and index
information in such a format. Third, many Korean web
sites only allow Korean citizens with a national ID number
to get access, making the information contained on them
virtually impossible to access for non-Korean Internet
users. And last, the unique Korean language provides
another barrier for non-Korean users of Korean web pages.
1 0 _ November 2006 KOREA IT TIMES
Worldwide IPv6 Readiness
Worldwide public key infrastructure must first be implemented
What is IPv6?
Viewed from the standpoint of the global Internet, Korean
web sites are practically inaccessible. All in all, it seems
that when given the opportunity for instantaneous communication with everyone in the entire world that the Internet
provides, Koreans chose to only talk to each other.
But the rest of the world uses Google. It is a global phenomenon. Some could even say that Google is the driving
force behind globalization. The comprehensive list of services that Google provides are actually quite shocking,
especially when one realizes that most of the services are
free. Google provides satellite photos of the entire world,
including the offices of this magazine, with their program
Google Earth. Google has collected and digitized the content of thousands of books allowing any user anywhere
access to a large library of printed information. Google
Maps provide driving directions everywhere in the US,
Europe, and Japan. Google Image and Google Video provide a wealth of multimedia content.
Google Code Search provides computer programmers search reference
access to the source code of millions
of programming projects. Google
Talk is an instant messaging program
that includes voice communication. Picasa and Writely,
two Google-affiliated web sites, offer online photo editing,
spreadsheets, and multi-user word processing in a variety
of languages. The company even offers a virus blocking
and firewall protection package for personal computers.
One must remember that Google offers all these services
for free.
Google has been successful so far because its services
are valuable assets to countless global Internet users.
Google has made sure of this by establishing research centers in Britain, Israel, Norway, Japan, Switzerland, India,
Russia and the Americas already. Now, the global Internet
giant is coming to Korea. Instead of being worried about
the negative impact of this move, Korean citizens can view
this development as an embassy of the greater global
Internet community coming to bring a closer mutual understanding with the Korean Internet island.
/ IPv6
IPv6, or Internet Protocol version 6, is
a new type of addressing scheme for
Internet communication. Currently, the
Internet runs on IPv4. In IPv4, each
computer connected to the Internet is
assigned a number, similar to a telephone
number, which computers use to
communicate with each other. IPv6
similar, but it increases the length of the
number used to identify each computer.
This new standard has some significant
advantages in security, speed, and setup
time, which makes it a tempting upgrade
for Internet service providers everywhere.
However, it also has some drawbacks
which increase implementation costs.
The most basic advantage of IPv6 is
more total addresses available. Analysts
are predicting that the Internet will run out
of IPv4 addresses some time between 2008
and 2050. It is difficult to tell when the
upper limit of about 4.3 billion IP
addresses will be reached, but everyone
agrees that the Internet will run out of IPv4
addresses soon. In contrast, IPv6 will
provide 340 undecillion (3.4 x 1038), or
3.4 trillion trillion trillion addresses. That
is almost enough addresses to give an IP
address to every single atom on earth.
The second major advantage to IPv6 is
easy configuration. IPv6 has auto
configuration, and two methods to use it.
The first will be to offer a stateful auto
configuration, almost exactly like DHCP
functions now. The second is called
stateless auto configuration, where a
device creates its own unique IP address
by combining its LAN MAC address with
a prefix provided by the nearest network
router. For practical purposes, this means
that plugging a computer into any network
connection anywhere in the world will
give you instant access.
The third major advantage of IPv6 is
security.
IPv6 provides security
encryption, authentication and data
integrity safeguards.
The IPv6
authentication header extension guarantees
that the recipient receives a packet that is
truly from its source address and also
provides end-to-end encryption at the
network layer. It also includes a very
complex trust network named IPSec which
has many new security features covered
later in this article.
Finally, an IPv6 Internet will be faster.
There are three technologies that will
increase the speed of an IPv6 Internet by
managing network traffic in a more
efficient manner. Multicasting, the first of
these, is an integrated part of IPv6
architecture. While Multicasting is
available in IPv4, it is an optional
component and not widely used. This
technology lets a device contact a group of
addresses at once, instead of simply one
address, allowing for faster information
spread from server to client when there are
multiple clients involved. A second
technology used in IPv6 is called Flow
Labels, which identifies all of the packets
of a stream of information as being part of
a stream together. This would enable
intelligent routers to manage congestion
better, routing packets in the order in
which they are received despite heavy
traffic. The third technology would be
Priority, where server machines can
specify a higher priority to some packets,
such as VoIP packets, and route them first
in the case of heavy traffic.
Worldwide status report
The countries that are leading the way
in adopting IPv6 architectures are the ones
that have the least IP addresses currently
available to them. Currently, US
companies and organizations control 3
billion of the IPv4 Internet addresses,
leaving only 25%, or 1 billion, for the rest
of the world.
Of these 1 billion IP addresses, China
controls approximately 28 million.
However, it has 80 million Internet users
and that number is expected to grow very
fast. Not surprisingly, China is leading the
way in IPv6 implementation. In December
2004 it unveiled its first core router design
that used IPv6. It took two years of
development to complete. It is capable of
transferring information at 320 billion bits
per second.
The same week that China unveiled
their new IPv6 router they also announced
a new IPv6 backbone connecting 25
universities all across China. This
backbone has been tested to a speed of 40
gigabits per second, which is the fastest
data transmission rate today outside of
biological processes.
Japan is also fully IPv6 compatible, and
has been since 2005. Japan is able to give
IPv6 connections to any end user in their
home or office. Japan is also using IPv6
for a new earthquake early warning
system. In partnership with the Japanese
Telecomm company NTT East, the new
warning system uses multicasting in IPv6
to quickly alert all of its client computers
to an incoming earthquake in a fraction of
a second. Anyone can get the earthquake
warning client, and cause their computer
KOREA IT TIMES November 2006 _ 1 1
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페이지12
In-depth Report
terminal to flash and emit a sound in the
event of an earthquake.
The US government is requiring all
federal agencies use IPv6 by June 2008. It
is expected to cost the US government at
least US$25 billion or possibly US$75
billion to finish the transition.
However, most United States IT
decision-makers still don’t see any reason
to switch to IPv6. Some journalists are
worried that the US will lose its
technology leadership, as it is already
lagging behind Japan and China. Few
other large technology companies or
Internet Service Providers seem to be
interested in making the switch. The few
IPv6 service companies in the country
report most of their business is outside the
US, while inside the US their only
customers are US Department of Defense
contractors. The most likely reasons are
the high cost of upgrading, and the large
number of IPv4 addresses still available to
US companies.
In Europe, most IT companies seem to
share the same sentiment as their US
counterparts, and have been slow in
implementing IPv6 compatibility due to
costs. A few ISPs in France and Spain are
currently offering some beginning
commercial IPv6 services.
More
encouraging is the educational and
research institutions of Europe, which
were all connected using IPv6 by 2004.
There is some tentative plan in Europe to
roll out IPv6 region-wide sometime before
2010. No mention is yet made on who
will bear the cost.
Also in Europe, BMW, Audi, Daimler
Chrysler, Volkswagen, Renault and Fiat
car makers are working together to
develop a car-based network with 802.11
wireless technology and IPv6. This
network will be designed to let cars warn
each other about accidents, bad traffic,
poor weather conditions, and other road
problems. The network is called
Continuous Communications Air Interface
for Long and Medium Range (CALM).
One drawback of this system, however, is
that it makes cars easily traceable.
South Korea plans to fully support IPv6
technology before 2011. In 2003 the
country made an initial investment of 83.6
001 채널맥(3443-0701)
/ IPv6
IPv6
billion won (US$87,524,134) to begin
planning to integrate IPv6 into the existing
networking infrastructure of South Korea.
South Korea is currently participating in
the experimental multinational IPv6
network called 6bone, with 14 different
locations tied in for IPv6 research and
development projects.
In contrast, India only has 2 sites
working with the 6bone experimental
network.
While there are some
organizations in India who support IPv6
compatibility, India as a country has made
no practical steps to use IPv6 yet. In fact
the very first SA-ASEAN Leadership
Summit on IPv6 was held in Bangalore on
April 24 - 26, 2006. The summit seems to
be geared to educating the country’s IT
professionals on the benefits of IPv6.
India may have to work hard to catch up to
the rest of Asia.
Security issues: the good,
the bad, the new
A new network architecture brings new
security issues. The first new security
issue in IPv6 is actually good news.
Currently, corporate and university
network administrators hide many of the
computers on their networks behind
subnets. This is a standard procedure that
is used in order to maximize the amount of
address space an organization has.
However, when computers hidden in a
subnet become infected by a virus and
begin to participate in a denial of service
(DoS) or distributed denial of service
(DDoS) attack, it can be difficult to block
those specific computers and end the
attack. In IPv6, each computer has a
unique, global Internet address. This
makes using subnets unnecessary, and
makes it much easier to identify
computers. Compromised computers
infected with a virus that are participating
in a DoS or DDoS attack can be
immediately and precisely blocked. There
is no longer a need to overcompensate, for
example, by blocking entire companies or
nations from a corporate web site.
The second security issue also includes
good news, and involves all current
network-based viruses and worms.
Complete migration to IPv6 will make
these network worms and viruses
completely ineffective. All IPv4-based
malware would simply stop working, as
they would search for IP addresses that
would no longer exist.
Privacy Extensions are the third
security measure, but this one is not
completely good news. Every IPv6
address has two parts, a 64 bit address that
is a computer’s MAC address, and a 64 bit
prefix that is from a computer’s current
ISP. This means that if a mobile device
such as a laptop were to be activated at
home in Korea, it would have an address
that would be a combination of its
MAC+Korean ISP. Then if this mobile
device was to be taken to the United States
and activated, it would have a new IP
address which would be its MAC+US ISP.
This means that your approximate location
in the world could be tracked by logging
the changes in your ISP prefix section of
the IP address. A Privacy Extension is
simply a randomly generated MAC
address, which means that when you
change your location you can change your
entire address instead of just the prefix.
This is good news in that an Internet user
can go to Starbucks to hide his laptop from
a hacker attempting to gain access to his
computer, but it is also bad news in that
the hacker can also go to Starbucks to hide
from authorities.
A fourth security issue with both good
and bad news is simply the new limit of IP
addresses in a local network. In a class C
IPv4 network a hacker can quickly scan all
255 possible IP addresses for
vulnerabilities. However, if a hacker
wants to scan the IPv6 network of a
company to check for computers with
open ports, he has to scan 2 64
(18,446,744,073,709,551,616) different
addresses. This would be very difficult.
However, it would be extremely easy for a
hacker to know the IP addresses of every
computer on your network if he were to
gain physical access to your network. One
ping to the linklocal multicast address will
return a ping from every computer
connected to the network, giving their
addresses immediately. So physical
security of the network becomes more
important, while virtual security becomes
less critical.
The final and most important security
issue has to do with IPSec. Every single
IPv6 network-capable node, whether it be
a computer, PDA, or phone, supports
IPSec. However, if a network wants to use
it, they have to set up what is called a
Public Key Infrastructure.
This
infrastructure is similar to security
certificates that are currently implemented
in web browsers, but they are lower in the
TCP/IP stack. This means that if a
network implements IPSec, every single
node on the network needs a security
certificate, and every single node on the
network needs a list of every other trusted
node’s security certificates. If your
network only has 5 computers, this is not a
problem. If your network has 1,000
computers, with 1,000 cell phones and
1,000 PDAs all linked together, managing
these security certificates can become a
full-time job. Adding one new laptop to
this network means that the laptop must
download certificates for all 3,000 devices
already on the network, and all 3,000
devices must also download the security
certificate of the new laptop. Currently,
software that manages this process is
expensive. In order for a worldwide IPv6
Internet to work well with IPSec enabled,
some organization must set up a network
of free IPSec security certificate servers
similar to the existing network of free
DNS servers. That is one of the major
reasons for the slow adoption of IPv6.
IPv6 is a good evolution of the Internet
Protocol, with many useful features to
increase speed, increase the size of the
Internet, and provide more security. The
nations that are first in implementing IPv6
are those industrialized nations that
currently have the most trouble with IPv4.
There are some costly issues involved with
upgrading to IPv6, and some good
benefits. The new security issues seem to
be positive, on the whole, although IPv6
security is definitely still in its infancy. A
free centralized database of trusted
network addresses similar to DNS servers
would go a long way to speed the process
of IPv6 adoption.
2006-11-1
2006.11.7 01:1 PM
Open Korea
페이지14
001 채널맥(3443-0701)
/ MOCIE
Open Korea
/ KOTRA
MOCIE Minister Chung Sye-kyun
Head of Invest Korea Chung Tong-soo
No Significant Investment Changes
Since North Korea’s Nuke Test
New State-of-the-art Plaza
for Foreign Investors
Investment influx growing steadily
T
here have been no unusual changes in
foreign investments since North
Korea’s announcement of its nuclear
test.
Foreign chambers of commerce, such
as the American Chamber of Commerce
and Industry (AMCHAM), and the
European Chamber of Commerce in Korea
(EUCCK), indicated that their standpoint
was not to suspend any planned activities.
Foreign invested corporations also
maintained their current projects,
according to a Korea Trade Investment
Promotion Agency (KOTRA) Overseas
Trade Office’s survey.
In support of this position, Minister
Chung Sye-kyun of the Ministry of
Commerce, Industry and Energy (MOCIE)
explained: “As of October 26, and since
North Korea’s nuclear experiment
announcement on October 9, 2006, foreign
investment reports indicate that figures are
at a normal level of about US$430 million
and that projects, such as Google and
CalPERS, are progressing without any
setbacks.”
In fact, Google announced plans to
establish an R&D center in Korea on
October 10, 2006, a day after the
announcement of North Korea’s nuclear
experiment. Italy’s Safilo, maker of
luxury eyewear, also announced its
affiliate corporation establishment plan on
October 11, 2006. The California Pension
Fund announced plans to invest $2.5
billion on October 16, 2006.
Minister Chung has also assured that
stability will not be compromised, stating:
“The direct influence of the nuclear
experiment announcement on foreign
logistics centers, and
investment inflow will not
business services, like
be significant, provided that
engineering. MOCIE will
the state of affairs is not
look for industries whose
further aggravated.”
effects can greatly enhance
The Minister has also
industry
structure
demonstrated confidence in
competitiveness.
the future of foreign direct
Alongside this, he
investment (FDI) by
underscored that the
committing himself to check
government will continue to
investment trends at all
create
an
improved
times, teaming up with
investment environment so
Invest Korea, foreign
Minister Chung Sye-kyun
that foreign investors can be
chambers of commerce in
of the MOCIE
accommodated at a steady
Korea, and the Korea
pace. He also added that by driving
Foreign Company Association (FORCA).
MOCIE, among others, plans to forward free trade agreements with several
nations, MOCIE will enlarge its foreign
concentrate its efforts on allaying fears
abroad by keeping in constant touch with investment base.
The Minister took note of the fact that
overseas investors and officials of credit
ratings’ firms to assure them of Korea’s in recent years, the trend of foreign
strong fundamentals, Chung said. The investment leans toward higher amounts of
Minister further commented that MOCIE investment by existing companies rather
will bolster Korea’s position as a stable than initial investments by new companies.
investment environment by holding a The relative importance of the increased
round-table conference with foreign CEOs. amount of investments is on the rise from
This conference will be held on the 60.8% in 2003 through 43.4% in 2004 to
occasion of the Foreign Investment 66.5% in 2005.
Chung stressed that this phenomenon
Festival 2006 in the beginning of
can be attributed to the fact that foreigners
November.
Taking investor concerns seriously, the find investments in Korea lucrative and
government announced an FDI Mid- to that they have experienced a continuously
Long-Term Vision and Strategy that improved quality of life.
It is anticipated that foreign invested
contains the direction of foreign
corporations, which have already made
investment policy for the years to come.
This FDI Mid- to Long-Term Vision inroads in Korea, will continue to be
and Strategy includes a plan to supplement profitable, increasing their investment
qualitative issues, such as employment amounts. To this end, Minister Chung has
creation and technology development. pledged his government’s ongoing support
Standard target industries, Chung said, to foster an agreeable investment
will be parts and materials, R&D and environment.
Invest Korea Plaza offers comprehensive services for international businessmen
This is the first part of a two-part series
interview with Chung Tong-soo, head of
Invest Korea — Ed.
Q: What is the meaning of the
inauguration of the Invest Korea Plaza,
or how can we interpret your
inauguration?
A: Invest Korea Plaza (IKP) is the
most ambitious investment promotion
project ever inaugurated by the Korean
government. IKP is the first business
incubation center in Korea for foreign
investors. IKP offers office space in a
dynamic,
international
business
environment in addition to the
comprehensive services available
including investment consultation,
orientation programs on the Korean
business culture, and the latest information
on daily living in Korea provided by
Invest KOREA and the Korean
government.
In all, Invest Korea Plaza offers a
highly sophisticated platform from which
foreign investors can assess the Korean
market, whether it is for their initial
venture, the launch of expanded facilities
or the delivery of a new service.
Communications offered within the plaza
will be to an unmatched degree; a wireless
broadband system will be available
throughout the building that will provide
instant and unwavering connection to the
Internet.
Plaza tenants will be able to work and
receive visitors in a setting that will match
the finest executive suite that Seoul has to
offer, and be supported by a professional
secretarial staff especially selected to
ensure that their businesses
operate as smoothly as
possible. Tenants will also
be qualified to receive
advice on market entry and
suppliers; on who would
make the most suitable
partners; site location;
assistance on accessing all
manner of investment
incentives; and introductions
to key central and local
government officials, all
without charge.
test-bed for state-of-the-art
technology and products.
The efforts that Korea
has made to welcome and
provide an accommodating
home for foreign investment
by way of enhancing its
immigration procedures for
incoming
corporate
personnel,
supporting
international schools and
healthcare facilities, and
Chung Tong-soo,
providing more traffic
head of Invest Korea
signage in English are
gradually beginning to pay off.
With respect to financial market
Q: What are your strategies to
compete with rival countries such as environment, Korea is fast catching up
Singapore, China, and Taiwan in the with competitors Hong Kong and
Singapore because of the expanded depth
investment environment field?
A: Korea is Asia’s third-largest and width of its financial market
economy. Yet we are more than ever development while foreign financial
pressured to improve our foreign institutions have begun local operations in
investment conditions, as the country Korea. Enormous advances in the
suffers from lackluster domestic country’s capability vis-a-vis Hong Kong
investment and competes with regional and Singapore have been made. In
neighbors, such as China and Singapore, particular, Korea’s financial hub initiative
which are rising in popularity as preferred will be phased in over three stages up to
destinations for FDI. At the same time, 2015.
Phase I (by 2007) — Groundwork for
the changing trade environment resulting
from Korea’s increasing number of the hub would be laid in the first phase by
multilateral trade pacts, such as free trade building a financial infrastructure. Key to
agreements, also called for the need to re- this phase is the passing of the Capital
Market Consolidation Act and promoting
examine present FDI policies.
the Korea Investment Corporation (KIC)
However, from the investors’ point of
view, Korea is quite attractive as a to the position of a world-class asset
gateway to Northeast Asia in terms of its management institution.
Phase II (by 2010) — Establishing
proximity to huge markets like China and
Korea as a specialized financial hub by
Japan. In addition, many investors are
drawn to Korea’s fast-moving information attracting 50 of the world’s top asset
institutions
and
and technology (IT) sector, which is a fine management
2006-11-1
2006.11.7 01:1 PM
Open Korea
페이지16
001 채널맥(3443-0701)
simultaneously supporting the rise of a
regional champion amongst local
institutions.
Phase III (by 2015) — Positioning
Korea as one of the top three Asian
financial hubs along with Singapore and
Hong Kong by developing its specialized
capacity.
In terms of institutional infrastructure,
much improvement had been made in
building a market-oriented financial
system in a relatively short time, mostly on
the back of appropriate reform measures
required to establish a financial hub. The
core policy measures in promoting the
financial hub initiative include the Capital
Market Consolidation Act (slated for
passage in early 2007), financial sector
deregulation and foreign exchange
liberalization.
In addition, against our gigantic
neighbor (greater by a factor of 25 in terms
of population), China, Korea and China
nearly square off against each other on the
basis of the categories of labor, finance,
logistics, utility costs, intellectual property
protection, technological infrastructure,
foreign schooling, healthcare, and
technologies such as WiBro and Digital
Multimedia Broadcasting promise to make
Korea a truly ubiquitous society where
information technology is accessible any
place, anywhere and any time. Internet
access has not spread widely in China,
being available only in a few large cities.
China has some 160 million Internet users,
second only to the United States, but they
represent a penetration rate of only 10
percent. Furthermore, only half of this
number has broadband Internet
connection. This state of affairs has
obvious ramifications for the ease with
which business might be done.
Q: Please explain this year’s foreign capital inducement situation and
year-end target figures.
A: Foreign direct investment in South
Korea dipped 2.3 percent from a year ago
to US$7.52 billion in the first nine months
of this year. Of the total invested, slightly
more than 44 percent, or US$3.33 billion,
was in the manufacturing sector, while the
remainder was in service areas. FDI in
manufacturing-related areas rose 60.6
percent from the same period last year. In
“New efforts will entail improving economic policies
to better accommodate foreign companies and help
them heighten management efficiency, which would
benefit the local economy.”
communications.
One of the big differences between
Korea and China is in the level and quality
of communications. No country in the
world can match Korea for its Internet
infrastructure or for its level of Internet use
and access. Connection to the Internet in
Korea is swift and permits sending and
receiving large-volume files. Some 77
percent of Koreans have Internet access, a
stunning 17 million play on-line games (30
percent of the world market), while 80
percent of the population owns a mobile
phone.
Moreover, the rise of mobile
Forum / WiMAX Forum
/ KOTRA
2005, overseas money generally moved
towards mergers and acquisition deals and
investment in the service sector.
By sector, foreign investment in
electronics and chemicals were up sharply
to US$1.55 billion and US$540 million
respectively, while money pouring into the
service sector was down by more than 24
percent compared to the year before.
During the reported period, foreign
direct investment from Japan and the
European Union grew 89.7 percent and 3.0
percent, respectively, from a year ago. But
FDI from the United States plunged 46.5
percent. Japan’s investment in South
Korea totaled US$1.78 billion, while FDI
from European countries and the US came
to US$3.89 billion and US$730 million.
For the third quarter alone, FDI was
down 14.8 percent year-on-year to
US$2.60 billion. Total FDI for the year
will reach US$11.0 billion by year’s end,
despite the slight dip in investment growth.
Wonderfull Future Coming
with WiMAX, WiBro Utilization
Q: Please explain your strategies
for FDI promotion.
A: Korea’s approach to attracting
foreign direct investment will call for
shifting its focus from increasing the
quantity to raising the quality. Korea will
focus on improving the overall business
environment,
advancing
labormanagement relations, and making
investment conditions better for foreign
investors. These steps would help the
Korean economy become more advanced
and global. The Korea-US FTA is an
important stepping stone to further
developing the Korean economy. The
trend also signals the need for the
government to provide better incentives to
foreign investors amid intense competition
with regional neighbors. But it also comes
amid a protectionist sentiment evoked by
hostile foreign takeovers of domestic
firms.
We will step up efforts to improve the
environment and incentives for offshore
investors, a departure from its more inward
approach to attracting investments. Our
mid to long-term FDI vision and strategies
underlined that the government’s aim is to
broaden its perspective, which until now
has been narrowly focused on securing
FDI. New efforts will entail improving
economic policies to better accommodate
foreign companies and help them heighten
management efficiency, which would
benefit the local economy.
There are substantive investment
incentives, which have been expanded this
year. We have increased the number of
tax breaks in order to distribute incentives
to as many investors as possible, and
factory sites are provided at practically no
cost. Companies in the high-tech, and/or
parts and materials sectors are eligible for
cash grants after meeting certain
guidelines.
True value of 4G technologies yet to be realized
C
EO Nam Joong-soo of Korea
Telecom spoke about the future of
WiMAX and WiBro technology at
the WiMAX forum in Korea on October
17, 2006. He spent some time talking
about KT’s experience as the world’s first
WiBro provider, the true value of the
technology, and the mobile broadband idea
in general.
Most notably, the executive voiced a
need for global roaming technology in the
future. He cited the current difference
between Korean cellular phones and those
from other countries and named that as an
unnecessary incompatibility. He also
pointed to Mobile WiMAX as the solution
to this problem. “Mobile WiMAX shall
take root as a global service, and not
remain a local phenomenon specific to
only a certain region. For this, it is
important to secure a global spectrum and
industry cooperation to flawlessly support
the Global Roaming service,” he said.
He mentioned this while speaking
about Sprint-Nextel’s plans for Mobile
WiMAX. He mentioned that in August,
Sprint-Nextel announced they would start
supporting the 4G technology. The CEO
emphasized that it was essential for the
global adoption of WiMAX to achieve
standardization and product licensing in
line with market pressures.
He also mentioned during the speech
that he preferred to see a reasonable IPR
policy. He said: “I hope to see in place a
policy that keeps royalty at a reasonable
level so that Mobile WiMAX products can
have price competitiveness in opening up
the infantile market.” He went on to say
that lower IP royalties were necessary to
lower the entry barrier into the WiMAX
business in 2005. On June
market.
30, KT launched the
Mr. Nam also mentioned
world’s first commercial
the growing necessity of the
WiBro service based on
Internet in general, and
Mobile WiMAX. Mr. Nam
mobile broadband services
related an anecdote about
in particular. He noted that
one early-adopting WiBro
the Internet is all around us,
subscriber who tried using a
when taking a bus or a
laptop that he got in Japan
subway, or when just
as the terminal.
The
walking down the street.
subscriber wasn’t sure if
People are constantly using
WiBro could be installed on
the Internet or the effects of
CEO Nam Joong-soo
his laptop because it ran on
the Internet by listening to
of Korea Telecom
a Japanese-language OS.
their favorite music on their
But when he found out that the driver was
mp3-enabled phones, playing network
games, or watching DMB programs. In installed properly for normal connections,
cars, consumers regularly find the he was glad. He said that he thought he
directions in an unfamiliar neighborhood could now use WiBro service in Japan,
after installation. He was surprised to find
using a navigator program.
out that WiBro hadn’t yet been initialized
in Japan.
CEO Nam also spoke about the true
value of WiBro technology. He said:
“With WiBro, we will be able to talk to
our loved ones face-to-face whenever and
wherever we are and check our health
condition instantly. It will make our
individual lives richer and happier.” He
also noted that video conferencing while
on the move will be possible. Video
He said that the information that people viewing and web search can be done
are already accessing and taking with them simultaneously and videos can be
can be given to them at a faster rate with uploaded to personal blogs in real time.
mobile broadband. “The paradigm is The executive named the future a Mobile
shifting from voice and fixed broadband to Broadband Wonderland.
He said: “It is a world that can be
data-oriented wireless broadband,” he
realized through technology and service
emphasized.
The CEO also spoke about KT’s developed by KT as well as numerous
experience as the world’s first WiBro other companies, and all of you WiMAX
provider. KT was granted the 2.3Ghz experts gathered here today hold the key to
frequency for its Mobile Broadband such a future.”
“It is important to secure
a global spectrum and
industry cooperation to
flawlessly support the
Global Roaming service.”
2006-11-1
2006.11.7 01:2 PM
University
페이지18
001 채널맥(3443-0701)
/ KAIST
Comprehensive Organizational,
Academic Reforms at KAIST
Funding needed to make staff, faculty more competitive
T
he Korea Advanced Institute of Science and
Technology (KAIST, www.kaist.ac.kr) Reform
Blueprint is being watched with keen interest.
The Blueprint was proposed by KAIST President
Suh Nam-pyo who was recently inaugurated on July
of this year. Analysts wonder whether this blueprint
will be able to reform the Institute.
Actually, President Suh’s KAIST Reform
Blueprint is worth noticing. Its two goals are to
nurture competitive talent in an international society
and change the university operation framework so
that the best education will be provided to students,
the masters of school.
The staple Reform Blueprint proposed by the
new president includes strengthening undergraduate
schools, increasing the number and quality of the
professors, reshuffling departmental organization,
and improving the situation of tenured professors.
Dual degree system introduction
Dr. Suh, who has been an object of interest
globally as the creator of the axiomatic design
KAIST campus
theory, said to The Korea IT Times that in
conjunction with a department head-centered
organization reshuffle, he will turn over new
professor selection, budget use, tenured professor
screening, research room allocation, and professor
assessment to the faculty head. Previously, these
were responsiblities of the president.
It is reported that the position of the faculty head
used to be an undesirable position, but since
president Suh has taken office, many professors
seek the title.
Regarding the increase of annual professor
salaries, Suh said that he would boost the salaries of
the science and humanities departments to be more
in line with the engineering department over the
next 5 years.
The president additionally pledged that KAIST
will begin the screening process for tenured
professors earlier in a professor’s career. The
current process includes a professor beginning his
tenure screening seven years after becoming a full
professor. However, if the professor does not
achieve tenure it is often too late for them to find
another position in the workforce if the professors
are in the latter half of their 40s or early 50s. The
new plan aims at beginning tenured professor
screening sooner after hiring. This way some
professors can reach tenure even in their 30s, Suh
explained.
Starting with the freshman year next year, all
freshman curricula and lectures will be held in
English. Hence after four years all class levels will
be held in English without any exceptions, even if it
is Korean language or art class.
The president further emphasized an impartial
professor assessment, adding that if their marks are
low they will be not allowed to lecture.
In addition, a dual academic degree system will
bestow academic degrees from both KAIST and
foreign universities.
Suh said that the number of
professors will be expanded.
Currently the number of professors
stands at about 400, but it will be
expanded to approximately 700.
He will also foster a university
development fund of 1 trillion won
(US$1.05 billion) over the next 7
years.
student. For example, he advocates
the opening of individual research
rooms for each professor in order
that the professor can learn from
students too.
Axiomatic Design Theory
As the President pointed out in
his inauguration speech, in the past
KAIST has made contributions to
Korea by generating graduates who
Fostering development
have made Korea a net exporter of
funds
high-technology goods and
KAIST’s Reform Blueprint is
manufactured consumer goods.
also assessed to give domestic
Dr. Suh maintains that future
universities a fresh shock.
KAIST President
graduates of KAIST must have the
Concerning separate reform
Suh Nam-pyo
ability to work in a global economy.
tasks, the veteran scholar
In that respect, they should be trained and exposed
elaborates: “First with regard to all curriculum’s
to the culture and customs of other nations so that
English lecture, this is expected to be helpful to
they can operate globally in technical and
attracting foreign students as well.” He added that
managerial fields.
all curricula taught by KAIST such as the Korean
In the same vein, the president emphasized once
language, history and fine arts will have no
again the importance of securing solid financial
exceptions.
resources, saying that he believes the budget of
As regarding the dual degree plan the president
KAIST must increase substantially to compete with
showed firm confidence, despite the fact that the
the best universities in the world. He has committed
plan has sometimes not paid off well in the past. He
himself to seeking the help of the trustees and
explained that negotiations are currently under way
faculty in raising funds for education and research.
with two American universities, one Canadian
Dr. Suh created Axiomatic Design Theory and is
university, and one German university which are
well-known in world academic circles as an expert
enthusiastic to participate in the dual degree
in the theory and methodology of design. His
program.
theory has been adopted by many industrial firms
Provided KAIST students take classes in a
and taught at many universities throughout the
foreign university after they complete their
world. His axiomatic design principles have been
freshman and sophomore years in Korea, Suh said
used to create new materials, products, processes,
they would be granted a degree from both
systems, software, and organizations.
universities.
In relation to KAIST’s plan to collect a
university development fund of 1 trillion won
(US$1.053 billion), Suh said that the students and
professors of KAIST are at an international level of
competitiveness, but it is heartbreaking that the
University can’t back them up financially due to the
shortage of sufficient university development funds.
Regarding the criterion of professor assessment,
the president stressed: “From now on, KAIST
professors will be assessed by the quality of their
academic papers, not by the number of their
papers.”
He underscores that if professors come to
research intensively basic research or applied
research which can contribute to society or industry
in no small way, naturally it is higher quality.
Suh further underlines the importance of
bidirectional education between professor and
A panoramic view of KAIST
2006-11-1
2006.11.7 01:2 PM
페이지20
001 채널맥(3443-0701)
Local Government
/ Incheon Metropolitan City
Incheon to Have World’s Second
Highest Towers in 2015
A conceptual view of the world’s second highest tower
Twin towers to be like vertical cities connected by sky bridges
I
ncheon City will have the 151 story
Incheon Tower, the world’s second
highest tower, in 2015.
The Incheon Metropolitan City and
Portman Consortium, led by Atlanta-based
global real estate developer Portman
Holdings, signed a Memorandum of
Understanding (MOU) on February 6 of
this year for jointly developing a 1.92
million pyong (6.34 million square meter)
area in the No. 6 and 8 blocks of the
Songdo district in the Incheon Free
Economic Zone (IFEZ).
The multi-phased US$11 billion project
includes construction of a twin-towered
151 story skyscraper, the highest in
Northeast Asia. With the project, Incheon
City will become a more complex city
concept with cultural, ocean and leisure
facilities plus commercial and residential
structures.
The project is part of Korea’s efforts to
transform 1,500 acres of reclaimed land
into an unrivaled business hub for
Northeast Asia.
Incheon Metropolitan City Mayor Ahn
Sang-soo and Portman Holdings Vice
Chairman Jack Portman signed the MOU
at the World Trade Club in Atlanta.
The construction consortium led by
Portman Holdings plans to complete the
tower by 2015.
The proposed 151 story building, which
would be 610 meters tall, will be the
world’s second-highest tower in the world.
The tallest will be the 160 story Burj
Tower in Dubai, the world’s tallest
building currently under construction. The
Incheon Tower is two times higher than
the nation’s current tallest building, the
Tower Palace, which stands at 264 meters.
Three sky bridges will stretch between
the twin-towered buildings to link them
together. The Incheon Tower will also
house hotels, offices, convention centers
and shopping malls.
“With inclusion of the 151 story twin
tower in the IFEZ, Incheon will be
transformed into a world-class business
city on par with Hong Kong, Singapore,
Shanghai and Dubai,’’ Mayor Ahn said.
Ahn also said the twin towers will
become the landmark that symbolizes
Korea’s future growth potential and
opportunities.
“Incheon City and Korea’s central
government will provide all-out support to
the Portman consortium,’’ Ahn said.
The Portman consortium plans to
finance 40 percent of the US$11 billion
investment through internal financing and
raise the remaining 60 percent through
investment banks and investment funds
both at home and abroad.
Q: Incheon City will construct the
151 story Incheon Tower, the
world’s second highest tower, by
2015. Would you comment on the
meaning of the Incheon Tower?
Mayor Ahn Sang-soo
The following are excerpts from an
interview with Incheon Metropolitan
City Mayor Ahn Sang-soo. --Ed.
A: Firstly, the development of the
landmark tower that attracts attention
from the world will bring about strong
PR effects to attract IT, BT and R&D
enterprises. With the development,
Incheon will secure a superior position
in competition with its main foreign
rivals such as Hong Kong, Singapore,
Dubai and Shanghai.
Secondly, we have secured external
confidence by signing a MOU with the
world-famous real estate developer
Portman Holdings. It will also offer
Incheon City a good chance to learn
know-how of global city development
and advanced architecture technology of
skyscraper.
Thirdly, the Incheon Tower will link
Incheon International Airport with the
151-floor landmark tower, activating the
Incheon International City
EXPO 2009
Incheon City also decided to hold the
Incheon International City EXPO in 2009
in an attempt to herald the importance of
the IFEZ as a center for Northeast Asian
logistics business to foreign investors and
to promote the brand value of Incheon,
Mayor Ahn said.
“We decided to hold the Incheon
EXPO in 2009 when a dozen of 40 to 50
convention business and generating
synergy effects with the airport.
Fourthly, attraction of foreigninvested companies through the
development of a unique international
city equipped with favorable
environment for work, live and play and
creation of the massive construction
business will greatly contribute to
activating the actual economy in
Incheon.
Q: Would you introduce Incheon
City’s plan to build the Middle East
Cultural Center and its effect?
A: Incheon City concluded an
agreement with Korea-Middle East
Association on Oct. 9 this year to build
the Middle East Cultural Center in
Incheon in 2007. The city now is
seeking a proper space to exhibit about
1,500 works showing the Middle East
culture
The setup of the Middle East Cultural
Center will accelerate attraction of
story buildings will be established and a
number of foreign companies engage in
business in the IFEZ,” he said.
In 2009, the construction of the Incheon
Grand Bridge linking Incheon
International Airport and Songdo will also
be completed, making Incheon a complex
city equipped with almost all infrastructure
ranging from business to culture and
environment, said Ahn.
“These projects will make Incheon City
a heart of Korea, so I think it is necessary
foreign capital from the Middle East and
contribute to promoting cultural and
tourism exchanges between Korea and
the Middle East. At the same time, it
will play a great role in gaining supports
from the Middle East countries for
Incheon’s bid to attract the 2014 Asian
Game.
Along with this, it will help Incheon
citizens understand culture of the Middle
East and accelerate personnel and
economic exchanges between Korea and
the Islamic world.
Q: Would you comment on the
Incheon City’s strategy to attract the
2014 Asian Games and its rival competitors? Do you think it is possible
for South and North Koreas to host
the Asian Game jointly?
A: The main competitor to attract the
Asian Game is Delhi of India.
Our strategy is to show Incheon’s
merits to the world in competition with
Delhi of India and call on chairman of
to herald the high value of Incheon to the
global society through an international
event,” he said.
“Ahead of the Incheon EXPO, we will
make a city declaration to let the world
know the harmonized, future-oriented and
upgraded image of Incheon City and
develop the city into a hub of Northeast
Asia,” said Ahn.
The main theme of the Incheon EXPO
is A City for All Asians and Beyond,
reflecting the city’s dream to become an
each country’s national Olympic
Committee (NOC) to make a rational
judgment.
I think Incheon City is superior to
Delhi in terms of almost all fields,
including weather, city environment,
experience, marketing activities and
information technology.
The international sports festival is
aimed at achieving peace and harmony
of all human beings. Accordingly, if
Incheon is selected as the host city of the
Asian Game, it is possible to hand over
North Korea a right to host several
sports games in the North after
consulting with Olympic Council of
Asia (OCA). Of course, this idea is
possible under the precondition that the
North Korea’s nuclear problem is settled
smoothly.
If North Korea settles its nuclear
problem peacefully, I think, it is also
possible for South and North Koreas to
jointly host the Incheon Asian Game,
like the 2002 Korea-Japan World Cup.
2006-11-1
2006.11.7 01:2 PM
페이지22
001 채널맥(3443-0701)
Local Government
international city in the 21st
century and pursue exchanges
with global citizens through the
EXPO.
The Incheon International
City EXPO will be held in such
free economic zones as Songdo,
Yeongjong and Cheongnam
with an estimated 10 million
visitors in attendance during the
period from mid-August 2009 to
the end of October.
Visitors to the Incheon
EXPO will be largely classified
into the two categories: the Core
Target category including
experts in the international
logistics and business and the
Mass Target category including
general spectators.
During the Incheon EXPO
period, the city plans to display
the development progress of
the IFEZ, landmark structures
and historical relics as well as
development models symbolizing the dynamic Incheon City.
Along with this, Incheon
City plans to hold an exhibition
boasting of itself as a logistics
city in Northeast Asia, hold
academic international meetings
and conduct a variety of
festivals and entertainment
events.
New Town development plan
In the past, Incheon City concentrated
its efforts on development of a new
downtown area centering on economic free
zones as a means to seek great economic
ripple effects while neglecting the
development of the old downtown area.
However, the development of the new
downtown area centering on economic free
zones has been achieved. Therefore,
Incheon City plans to concentrate its
administrative ability on restoration
projects for the existing old downtown
area, Mayor Ahn said.
To remove the polarization
phenomenon of downtown development,
Incheon City has decided to convert the
existing Kyongin Expressway section into
/ Incheon Metropolitan City
Concept design of 151 floor Incheon Tower
general roads. At the same time, it will
build a city complex on 290,000 pyong
(957,000 square meters) of land in the
Gajeong five-way crossing to make the
place a beautiful spot like La Defense of
France.
Along with this, Incheon City will
make a strong push for restoration of the
old downtown area in the city, including a
project for development of East Incheon
Station and Jemulpo Station and a new
town project for Dohwa district in an
attempt to reduce the polarization
phenomenon.
After all, such projects will greatly
contribute to not only easing polarization
in terms of downtown development but
also creating more jobs, Mayor Ahn
explained.
Concretely speaking, Incheon City will
create a task force to develop
such regions with a poor living
environment as Akasaki village
in the Manseok district in Donggu. The task force will develop
the neighborhod into a residential
area
with
a
favorable
environment, he said.
The city will also push for
various projects to deliver the
synergy effects of the
development of economic free
zones to old downtown regions
for balanced development and
inject fresh vigor into the regions,
Ahn said.
It will push ahead with a
project to stretch out the existing
line of the Kyongin Expressway
in order to link Incheon economic
free zones with Seoul directly to
maximize the synergistic effects
of the IFEZ development.
To improve the environment
of the underdeveloped western
region, Incheon City will actively
push for a project to create a new
town in the the Gajeong five-way
crossing area. Under the project,
an advanced city complex
comprising commercial structures
and three-dimensional public
transportation, including a Bus
Rapid Transit (BRT) system,
will be established in the Gajeong area.
The starting point of the Kyongin
Expressway penetrating Incheon City from
east to west will be changed from
Yonghyeon-dong to Wonchang-dong and
the existing roads will be converted into
trunk roads.
Busses, parks and tourism
The city will also introduce advanced
mass transportation systems including
Light Rail Transit (LRT), TRAM and BRT
in order to make Incheon a threedimensional city placing the first priority
on pedestrians.
Along with this, Incheon City will
transfer polluted factories in downtown
areas to other regions and expand green
zones further.
It will convert Sungeui Stadium into a
24-hour wellbeing town by introducing
complex functions related to dwelling,
commercial business, sports and leisure.
The existing general sports arena will be
changed into a soccer field and a baseball
park and be linked with Dowon Station,
activating the regional economy.
The neighborhood area of Jemulpo
Station will be developed into a complex
estate housing residential, commercial,
business and private academic institutions.
The areas adjacent to Incheon Station
and East Incheon Station will be
developed into a complex estate housing
commercial, historical, cultural and
tourism-related facilities to attract more
foreign tourists who visit the country
through Incheon International Airport or
Incheon Port.
In the meantime, Yonghyon and Hakik
districts will be developed into a city with
a pleasant environment which will house
various cultural and sports facilities to
enhance the international status of
Incheon, Mayor Ahn said.
Attraction of foreign
investment
To attract more active investment from
domestic and foreign enterprises, IFEZ
Authority has established booths at many
world-famous exhibitions, including the
2006 Venice Biennale International
Architecture Exhibition.
As part of its efforts to establish
networks with foreign companies and
activate introduction of foreign capital,
IFEZ Authority concluded a business
agreement with Korea Foreign Company
Association, a private business
organization under the Ministry of
Commerce, Industry and Energy.
Despite difficulties in attracting foreign
investment, IFEZ Authority succeeded in
attracting US$36.7 billion in foreign
investment in 37 cases as of the end of
September this year.
To attract more foreign investment, the
IFEZ is offering a variety of taxation and
financial incentives to foreign companies
doing business in the zone.
For example, foreign companies in the
free economic zone are 100 percent free
from national and provincial taxes for the
first three business years. They are also
able to enjoy a 50 percent reduction in
those taxes for the next two years.
In addition, foreign companies doing
business in the zone will receive such
favors as a reduction in rental charges of
land and financial assistance for
establishment of roads and other basic
facilities.
For construction of an international
city, the government will create a
foundation for attracting foreign
investment this year by carrying out
reclamation and infrastructure projects as
scheduled.
Along with this, it will push ahead with
four differentiated strategies this year to
build an international, free, 21st century
city in the free economic zone.
The four strategies are construction of a
state-of-the-art informatization city
equipped with ubiquitous systems,
industries gain access to a vast range of
markets.
Incheon’s IT promotional plan is fivefold: First, Incheon will attract IT
companies to the Namdong and Shiwha
industrial complexes that are part of the
IFEZ. At the same time, Incheon will
work with these companies to help build a
ubiquitous IT environment in the city.
Second, the strategy is to lure futureoriented industries among IT companies
and companies matching IFEZ’s
development profile. For instance, the
digital contents industry which is well
suited to Incheon could be attracted to and
nurtured in the Digital Entertainment
Cluster (DEC).
Third, the city will get rid of legal
barriers and allow IT companies to be able
to proactively advance their business and
grow their support systems as necessary.
Fourthly, the type of IT company that
“Nurturing IT companies for the city is not merely
about fostering IT itself. We will make efforts
to lure similar industries across the IT value chain
and secure the necessary manpower
and support network base to allow these
companies to develop autonomously.”
construction of a greenbelt accounting for
more than 36 percent of the total land,
introduction of an advanced new
transportation system armed with new
technologies, and construction of fine
scenery and high-quality basic public
facilities.
IT promotional plan
of Incheon City
Mayor Ahn said Incheon could offer
important manufacturing as well as
distribution opportunities which can help
Incheon wants to attract is not the type of
company that is targeted solely at the
domestic market. Incheon will lure core
companies which are globally competitive
and whose business is strongly focused
overseas.
Finally, nurturing IT companies for the
city is not merely about fostering IT itself.
We will make efforts to lure similar
industries across the IT value chain and
secure the necessary manpower and
support network base to allow these
companies to develop autonomously, said
Ahn.
2006-11-1
2006.11.7 01:2 PM
페이지24
Policy Direction
001 채널맥(3443-0701)
/ Korea Customs Service
KCS, Global Leader
in Customs Administration
O
n October 19, 2006, UNI-PASS, the
electronic clearance system of the
Korea Customs Service (KCS)
obtained ISO 20000 certification following
its acquisition of a patent in June of this
year. ISO 20000 is the international
standard for comprehensive IT service
management including processes for
customer management, service level
management and security management. In
order to understand KCS’s informatization
efforts in customs administration the
Korea IT times recently interviewed Kim
Doh-yeol, director general of the
Information and International Affairs
Bureau of KCS. As a leader in customs
administration, the fame of KCS has now
reached Central Asia and Latin America.
KCS is now making negotiations with
eight countries in these regions to export
its UNI-PASS system, an outstanding
electronic clearance system. The following
includes a brief explanation on UNIPASS, its effect upon customs
administration and the national economy,
KCS’s overseas cooperation projects for
the informatization of
customs administration,
and its efforts to speed up
the exportation of its
advanced expertise in this
field.
UNI-PASS obtains
ISO 20000
UNI-PASS is the
world’s first 100%
electronic clearance portal
system. It provides a onestop PASS service by
unifying all customs
clearance procedures
including export/import
clearance, duty drawback,
inbound/outbound passenger control, and
tracking of bonded cargo.
Following the patent in June of this
year, KCS applied for an ISO 20000
certificate. It went through a preliminary
examination, documentary examination,
and plenary examination, and finally
succeeded in earning the certificate in
October 2006. It is noteworthy that this is
the first time worldwide that an ISO 20000
certificate has been issued to a customs
clearance organization.
UNI-PASS is a system that can
electronically handle all kinds of customs
clearance procedures in a single window.
It is a cyber community where the three
following groups of organizations
participate. The first group consists of
participants in international trade such as
exporters/importers, customs brokers, and
banks. The second group includes logistics
“KCS made diverse
diplomatic efforts to hold
customs cooperation
meetings, informational
sessions on the
e-clearance system, and
provide educational
programs and consulting
services by making direct
visits.”
companies such as transporters,
forwarders, bonded warehouses, shippers,
and airlines. The last group contains
import/export-related authorities
including quarantine, port
authorities, and the Ministry of
Justice. It is a large business
community with about 110,000
participants.
As illustrated in figure 1,
starting from 1992 UNI-PASS
developed gradually on a fullscale basis according to midand long-term plans. In the
introductory period from 1992 to
1998 the customs administration
system including import/export
clearance, levies, and duty
drawbacks was computerized on
the basis of Electronic Data
Interchange (EDI). In the
A ceremony to receive ISO 20000 certification, held on Oct. 19, 2006
expansion period from 1999 to 2002, a
paperless environment in the customs
clearance was built along with the
establishment of a knowledge-based
system. In the advancement period from
2003 until the present, the Internet
clearance portal and single window system
were developed.
KCS is now building a Customer
Relationship Management (CRM) system.
Primarily this is an effort to introduce
customer-oriented administrative services
by which nationwide customs offices
provide advance information services for
potential civil claims and petitions. It will
also conduct a well-organized survey on
customer requirements and needs. Finally,
in preparation for a ubiquitous era it is
working on mid- and long-term strategic
plans to develop information systems
including a ubiquitous clearance system.
This makes it possible to provide
electronic clearance service in a 5-Any
environment - any-time, any-where, anynetwork, any-device, and any-service.
UNI-PASS brings huge impact
on national economy
For the first time worldwide KCS has
succeeded in handling 160 million copies
of clearance documents 100%
electronically per year. This has resulted
in the shortest customs clearance time in
the world of 2 minutes for export cargo,
and one and a half hours for import cargo.
It is far less than global standard clearance
time. For instance, the recommendation of
UNCTAD is 4 hours. By providing
detailed information on import/export
cargo movement to the customers on a real
time basis, cargo handling time is greatly
reduced, consequently saving the logistics
costs of importers and exporters
significantly. Import cargo clearance took
13.5 days in 1998, but only 4.5 days in
2005. The monetized value of direct and
indirect benefits of time saved is US$3.9
billion according to the report of the
National Information Society Agency. In
addition, by establishing a 94% paperless
e-clearance system for export and 75% for
import, it has greatly contributed to the
enhanced productivity of both the customs
and the business community.
INTERVIEW
The following are excerpts from an interview with Kim Doh-yeol,
director general of the Information and International Affairs Bureau of KCS
— Ed.
Q. Please tell us about your overseas cooperation projects regarding customs informatization.
A. Korea Customs Services is pushing ahead
with exportation of its customs clearance system,
UNI-PASS. In December of 2005, KCS held a
Seminar on e-Government and Trade Facilitation
for high-ranking customs officials from 7 countries
in Central Asia including Azerbaijan, Kazakhstan,
and Uzbekistan. Several of those countries
expressed their positive intention to benchmark
Korea’s e-clearance system. Based on this
Kim Doh-yeol,
international recognition, KCS made diverse
director general of Information
diplomatic efforts to hold customs cooperation
and International Affairs
Bureau of the KCS
meetings, informational sessions on the eclearance system, and provide educational
programs and consulting services by making direct visits. As a result, KCS
successfully assisted Kazakhstan Customs to launch a Customs
informatization project in October last year. In April this year, we were
asked by customs administrations of Azerbaijan and Mongolia to conduct a
feasibility study regarding customs informatization, and carried it out
successfully.
Q: Could you give us a brief explanation about UNI-PASS of
KCS?
A: UNI-PASS is the world’s first 100% electronic clearance portal
system, which provides one-stop PASS service by unifying all clearance
procedures in customs declaration including export/import clearance, duty
drawback, inbound/outbound passenger control, and tracking of bonded
cargo. It is a system that can electronically handle all kinds of customs
clearance procedures in a single window. It is a cyber community consisting
of three groups, that is, importers and exporters, logistics companies, and the
government authorities. It is a large business community with about 110,000
participants.
Q: We know that UNI-PASS is bringing a positive effect on the
Korean economy. Please give us a brief explanation as to what benefits it is bringing to the Korean economy.
A: KCS has succeeded in handling 160 million copies of clearance
documents 100% electronically per year, thus recording the shortest customs
clearance time. Also, by providing detailed information on the import/export
cargo movement to the customers on a real time basis, the cargo handling
hour has been greatly reduced, consequently saving the logistics costs of
importers and exporters significantly. As a result, it has brought a huge
economic benefit of about US$3.9 billion per year to the national economy
according to the report of the National Information Society Agency (NIC).
2006-11-1
2006.11.7 01:2 PM
Cover Story
페이지26
001 채널맥(3443-0701)
RFID/USN Korea 2006
Strong Incentives for RFID
Development Show Results
Market for this new technology taking off
Opening ceremony of the RFID/USN Korea 2005, held October last year
A
wareness of the Radio Frequency
Identification/Ubiquitous Sensor
Network (RFID/USN) industry’s
market potential has become higher.
Consequently, more companies are using
the technology in more diverse fields,
beyond simply logistics or circulation
fields. Competition between countries for
an edge in this growing market is also
intensifying.
Revenue generated by domestic RFIDrelated corporations grew from 54.1 billion
won (US$56.9 million) in 2003 to 290.2
billion won (US$304 million) in 2005,
according to the Korea Association of
RFID/USN.
Despite the growth of such RFID/USN
industry applications, the majority of
RFID introduction corporations spent no
more than 500 million won (US$474,000)
on their introduction expenses.
On the whole, domestic corporations
are remaining a pilot program level.
Moreover, the burden of changing existing
bar code infrastructure and the high price
of pre-investment in an new technology
are acting as a stumbling blocks.
By creating successful examples that
illustrate the entire implementation process
and lowering tag production costs, fullscale introduction and application
throughout industries will be able to occur.
RFID industry
has high-speed growth
RFID/USN contains unlimited growth
potential as a core infrastructure
technology to actualize a Ubiquitous
society. It is also a field which can bring
about a huge change to industry as a
whole. No other technology has had such
an impact since the develompent of the
Internet.
Recognizing the importance of
RFID/USN technology, our country is also
unfolding a set of activities following the
government’s proactive IT839 policy.
Large-sized corporations are also investing
significant amounts of money into R&D.
However, demand activation for the
creation of domestic markets and a ground
of exchange with overseas corporations for
inroads into the global market are short,
according to experts in the RFID/USN
field.
By holding more enlarged international
exhibitions as well as conferences this
year, the Korea Association of RFID/USN
intends to create a domestic RFID/USN
market. It hopes to increase user
recognition and to further increase
domestic technology use. It also hopes to
aid overseas market acceptance through
this global exchange opportunity.
To make the day come sooner in which
our country’s RFID/USN industry can
display its powerful competitiveness in the
world market, Kim Shin-bae, president of
SK Telecom and chairman of the
RFID/USN Korea 2006 Organizing
Committee stresses: “The Committee
came to host RFID/USN Korea 2006
International Exhibition and Conference to
actualize related enterprise’s business
activation, technology competitiveness
boost, realistic business model
presentation, and a ground of information
exchange about new technology.”
RFID/USN market share
in the future
In a nutshell, RFID is a technology in
which tags on products that contain a large
volume of information can be read by
various tag reading equipment.
RFID’s global market scale last year
reached approximately 500 billion won
(US$530 million). The RFID market is
forecast to grow to a 10 trillion won
(US$10.5 billion) industry in 2010,
according to market survey institutions
such as Gartner and IDC. That is an
expected trend of 37% growth each year.
Logistics management and circulation
are the fields where RFID has rooted
foremost. Wal-mart, the largest retail
company in the world, uses RFID for the
purpose of stock management. At home
too, Shinsegye department store, E-mart,
and Lotte-mart are utilizing RFID for
logistics management.
Furthermore, the movement to
commercialize RFID by connecting the
technology to a high-speed Internet or
mobile communication network is coming
along at home. Since a cellular phone
model embedded with an RFID reader is
slated to be marketed soon, the RFID
industry is expected to be first activated in
Korea ahead of other countries.
Mobile RFID in which portable readers
and wireless Internet are combined can
breach the current boundary to information
that a tag holds.
The government decided to possess 7%
of the global RFID/USN market by 2010.
It also set a goal for 5 cent tag
commercialization, an important point for
the economic feasibility of RFID
popularization.
RFID feasibility exerts a considerable
influence in making a Ubiquitous society
sooner. This is the government’s full-scale
A ceremony of awarding prizes regarding the 1st RFID/USN Research Paper
project to be commenced this year, and
also the incentive for mobile
communication business providers to
provide commercial mobile RFID service.
International cooperation
necessary
To boost Korea Ubiquitous industry
market share from current 2% up to 7%
within the world market, the government
is drawing up a technology road map
including a 5 cent tag development scheme
by 2010.
The government is obligating the
Public Procurement Service (PPS) to
preferentially buy goods with RFID
attachments in order to create RFID
demand. The Ministry of Environment is
requiring that hospitals begin to use RFID
tags for contagious waste for the same
reason.
The PPS obligation is expected to force
150,000 suppliers to adopt RFID tags,
while the MOE requirement is expected to
create a demand for 18 million tags with
its legislative efforts. In addition to this,
RFID is anticipated to be applied to the
Ministry of National Defense goods’
management as well.
If this full-scale RFID project is
completed, it will create a 30 million tag
demand in 2007 alone. So experts
anticipate that the current tag price of 150
won (US$0.16) will decline to 100 won
(US$0.11) and is further forecast to go
down to 50 won (US$0.05) in 2010 given
its technological development.
In the meantime, tag price has been the
largest Achilles’ heel for RFID adoption,
but provided the government’s full-scale
project happens, volume demand will
decrease prices.
To bolster the domestic RFID/USN
industry, the government attached
importance to demand activation, core
technology development, u-IT cluster
construction, and manpower nurturing.
In order for Korea to grow as a front
runner of the RFID field, Deputy Minister
Kim Won-sik, Ubiquitous Society Strategy
Office, the Ministry of Information and
Communication (MIC) underscored that
full-scale dissemination on a private level
is urgent. He added that it is important to
continuously
propel
large-scale
dissemination projects by unearthing
promising fields with large ripple effects.
It is also necessary to induce the decline of
equipment prices or to present examples of
large-scale success.
The deputy minister stressed also in a
special exclusive interview with The
Korea IT Times that international
cooperation is necessary in terms of
securing the core technology,
standardization, and private exchange
growth since RFID/USN is a new
technology in its initial stages of global
spread.
2006-11-1
2006.11.7 01:2 PM
Cover Story
페이지28
001 채널맥(3443-0701)
RFID/USN Korea 2006
Interview with Kim Won-sik, Deputy Minister of MIC
Korean RFID Industry Gearing Up
for Global Applications
W
The deputy minister said that the Ministry also
ith the goal of becoming an advanced
intends to attempt international pilot projects
country in the field of Radio Frequency
between countries. International cooperation in
Identification (RFID), the government is
securing core technology, standardization, and
unfolding domestic RFID/USN industry fostering
private exchange enlargement is necessary since
policies. These include demand activation
RFID/USN is a new technology which is not yet
through pilot projects, core technology
common throughout the world.
development, u-IT cluster construction, and
With regard to technology development, Kim
manpower nurturing.
notes that lowering prices on how much it costs
First off, pilot projects are to enhance
for tag manufacturers to produce tag is a key
awareness about RFID/USN. The private sector
point, adding that an invisible SI field is also
has little understanding of RFID technology
important for system integration.
according to deputy minister Kim Won-sik,
MIC is propelling the core constituent
Ubiquitous Society Strategy Office, the Ministry
technology development for RFID/USN
of Information and Communication (MIC).
technology commercialization. This includes
Actually, the majority of private enterprises
such programs as UHF RFID as well as
agree that RFID introduction is a global trend, but
Deputy Minister Kim Won-sik,
they hold a reserved attitude about their Ubiquitous Society Strategy Office, Ubiquitous networking technology development,
the Ministry of Information and
USN middleware platform technology
introduction period.
Communication
development, RFID/USN standardization
Concerning such phenomena, Kim attributed
research, and RF Shower development for the enlargement of
such reserved posture to a high equipment price tag and shortage
RFID recognition distance, according to Kim.
of successful examples as staple reasons.
The deputy minister pointed out that it is still early to call
In this vein, the deputy minister points out: “It is necessary to
such pilot projects successful. He also expects that if such pilot
induce equipment price’s decline as well as to present largeprojects go well, especially core technology development, they
scale success instances by unearthing promising fields whose
will be able to be used in other areas such as Kimpo or Incheon
private ripple effect is big and by propelling large-scale spread
airport’s customs clearance.
project continuously.”
Kim also mentioned u-IT cluster construction and the
importance of nurturing manpower as MIC’s policies to bring
Attached importance to demand activation
up the RFID/USN industry.
As part of domestic RFID/USN industry nurturing
The u-IT cluster is to construct a sharing
policies, Kim first of all said that MIC attaches
foundation facility which can provide RFID/USN
importance to demand activation. The Ministry
companies at home and abroad with
will try to create initial demand for domestic
comprehensive services from design and
corporation nurturing through pilot projects
fabrication up to performance tests and
and unearth new service models.
certification. This shared foundation facility
Such pilot projects in 2006 include
is scheduled to be completed by the end of
Infectious Scrapped Material Care,
2008, starting its related facility work at the
Munitions Control, Port Logistics Efficiency,
end of 2006.
Gaesung Industry Complex Customs
In regard to manpower nurturing, MIC is
Clearance Simplication and Flight Goods
supporting three IT research centers -- Yonsei
Record Pursuit, to name just a few.
University, Sunchon National University, and Kangwon
National University -- to develop high-grade RFID/USN
technology professionals.
Korean RFID technology on par
The deputy minister assesses domestic RFID/USN business
by saying: “In the case of RFID-related core technology, the
United States monopolizes almost the majority, but Korea also
is reaching to a worldwide level in terms of application
technology.”
Meanwhile, the competitiveness of RFID-associated products
at home has been improving, kim said, largely due to MIC pilot
projects. He cited an increasing RFID localization rate from
26% in 2004, through 88% in 2005, to a 96% 2006 estimate.
Kim further stressed that in some new RFID technology
fields like mobile RFID, Korea is preparing a basis to advance
beyond other countries. For reference, mobile RFID is a new
RFID technology which can enlarge established RFID services.
Services such as circulation and logistics are currently only
usable in business to business transactions. But by embedding
RFID into cellular phones, the services can be used in business
to consumer transactions as well.
Cell phone RFID could be used for instance to confirm
detailed information of display items in museums or exhibitions,
to require circulation channels, learn the habitat information of
foods, or preview music files in front of a CD, DVD, or movie
poster.
In the field of USN, Korea is located at a similar starting line
with advanced countries, the deputy minister said. He added
that since USN is currently in an initial industrialization stage
before its full-scale global commercialization, its possibilities
are endless.
RFID activation within 5 years
Kim spoke about overseas inroads by domestic RFID/USN
business providers: “I cannot but point out that in the case of
domestic RFID/USN-related corporations, corresponding
country’s policy trend as well as market information to be
necessary for on-the-spot marketing are short.”
In this context, MIC is providing domestic corporations with
related information on China’s and Japan’s policy trends
through the Korea-China-Japan RFID/USN Working Council.
Information focuses on frequency allotment, RFID introduction
plans, and our corporation’s inroad possibility forecasts.
Moreover by holding the RFID/USN Korea international
exhibition, MIC provides a meeting ground through which
overseas buyers and domestic corporations can exchange market
information, the deputy minister said.
With regard to the proper moment RFID will be activated, he
said he thinks it won’t take long, expressing his opinions that if
RFID pilot projects conclude successfully its activation is likely
to be possible within 4 to 5 years.
Last but not least, he said that RFID is indispensable for
building a Ubiquitous society and gaining international
cooperation.
“It is necessary to induce equipment’s price decline as well as to present large-scale success instances for RFID industry’s activation.”
(Above photo shows ETRI pavilion at RFID/USN Exhibition)
2006-11-1
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001 채널맥(3443-0701)
RFID/USN Korea 2006
Interview of Kim Shin-bae, Chairman of Korea Association of RFID/USN
RFID/USN Korea 2006
Opening With a Bang
The following are excerpts from an interview with Kim Shin-bae, chairman of
Korea Association of RFID/USN. --Ed.
Q: The RFID/USN Korea 2006 event seems to carry an important meaning in the history of Korean IT industry. Could you briefly explain the purpose and expectations of this event?
A: Following the first “RFID/USN 2005 Korea” last year, this is the second event.
75 companies and institutions at home and abroad are to participate this event. The
scale of this year’s event has been doubled compared with that of last year. More
notably, RFID/USN-related world-famous professionals have been invited to this
international conference, and so a high degree of academic exchange will be made.
This purpose of this event is to help Korean RFID/USN industry gain competitive
edge in the global market at an earlier date. We also aim to vitalize related business,
enhance technological competitiveness, suggest profitable business models, and
exchange information on new technologies.
By Yeo hong-Il / Managing editor
Well-known global professionals to gather, mix
R
FID/USN Korea 2006 is to be held at the Convention and
Exhibition Center in Seoul, Korea. Many prominent
experts and researchers in the Radio Frequency
Identification (RFID) and Ubiquitous Sensor Network (USN)
field all over the world are gathering for this event here in
Seoul. The Korea Association of RFID/USN chaired by Kim
Shin-bae has announced that RFID/USN Korea 2006 will be
held from November 7 to 9 under the slogan of “Come See and
Feel u-World with RFID/USN.” This is the second conference
following the first RFID/USN 2005 Korea last year. Seventyfive companies and institutions at home and abroad are to
participate in this event while preparing for 282 booths. The
scale of this year’s event has been doubled compared with that
of last year. More notably, world-famous RFID/USN-related
professionals have been invited to this international conference,
and so a high degree of academic exchange will be made. In
addition to the RFID/USN international exhibition and
conference, the following events will be held: the second
RFID/USN research paper awards ceremony, an export
consultation meeting for participating companies and overseas
buyers, a domestic IT tour for visiting foreigners, and the KoreaChina RFID/USN Round Table.
Kim Shin-bae, chairman of Korea
Association of RFID/USN
A: Due to the fact that RFID/USN still has high uncertainty, demonstration
business is very important. Accordingly, by making use of demonstration business
in the public sector, the Korean government is stepping up the introduction and
expansion of RFID/USN. The government has made a basic plan to disseminate
RFID/USN with an aim to establish a future ubiquitous network environment at an
earlier date.
More than 30,000 expected to visit
The major companies and institutions participating in the
exhibition, which is to be held in the Atlantic Hall of COEX, are
as follows: Korean government-run institutions including NIA
and ETRI; large domestic enterprises including SKT, KTF,
Samsung SDS, LG CNS, LS Industrial Systems, Hyundai
Information Technology, and LG Hitachi; small and mediumsize businesses including Seyeon Technology, Hanse Telecom,
and SNR. The total number of domestic companies stands at
60. Overseas companies from five nations -- the US, China,
Japan, Germany, and Finland -- number 55. All these
companies and organizations will try to show off their new
products and state-of-the-art technologies. So all the visitors
including overseas buyers, users, and officials of participating
companies will have high expectations. More than 30,000
people are expected to visit this event.
The conference is composed of three tracks: Mobile RFID,
RFID, and USN. They cover various topics in the RFID/USN
field. The conference is designed to bring a large number of
researchers, professionals, and business executives from home
and abroad in order to discuss the latest knowledge and to share
the leading technologies in this field. Especially, the
RFID/USN 2006 Conference will provide key networking
opportunities to meet and interact with great researchers who
have profound knowledge and extensive experience in various
aspects of the RFID/USN. In addition, the domestic RFID/USN
model projects which are attracting people’s attention and
foreign companies’ application cases, both in the public sector
and private sector, are to be introduced in this conference.
During the event period, foreign visitors will be given an
opportunity to have an IT tour for free. This IT tour includes the
visit of Seoul’s Hall of Traffic Card Systems and domestic IT
companies where visitors can see the application of RFID/USN
Q: Please give us a brief explanation about the current situation of the
domestic RFID/USN market.
in various fields. Also, in the second RFID/USN research paper
awards ceremony, 13 excellent papers will be awarded.
Meanwhile, Kim Shin-bae, chairman of the Korea
Association of RFID/USN and organizer of this event said: “In
an effort to help Korean RFID/USN industry gain competitive
edge in the global market at an earlier date, we have planned to
hold the ‘RFID/USN International Exhibition and Conference’
aiming to vitalize related business, to enhance
technological competitiveness, and to suggest
profitable business models and exchange
information on new technologies.”
Market and technology
trends of RFID/USN
The world market of
RFID/USN amounts to
US$11.36 billion in 2004.
As the RFID sector grows at
an average annual growth rate
of 13.3% and the USN sector
expands 25.5% yearly, the total market of RFID/USN is
expected to reach US$54.08 in 2010. Like the world market, the
domestic market is also expected to grow at a similar rate, thus
reaching US$3.9 billion in 2010 as illustrated in Figure 2-14.
Along with world’s largest distributor Wal-Mart’s RFID
introduction, the US RFID/USN market is rapidly expanding.
Especially since the 9/11 terrorist attack, the matter of security
has become an important issue. Because of this, RFID/USN has
been widely introduced in the airport and port
logistics fields. Now, it is steadily spread into
the clothing, food and beverage, home electronics appliances, pharmacy, and distribution fields. In the domestic market, due
to the fact that RFID/USN still has high
uncertainty, demonstration business is
very important. So by making use of
demonstration business in the public sector the Korean government is stepping
up the introduction of RFID/USN.
The government has made a basic
plan to disseminate RFID/USN
with an aim to establish a future ubiquitous network environment at an earlier date,
and is actively pushing for the development of
new original technologies in a bid to nurture related
industries into promising business in the future. To promote and
stimulate RFID/USN industry, it is expanding not only demonstration business in the public sector, but also establishing a comprehensive test center that can support the field tests of domestic
products and resolve complaints.
2006-11-1
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001 채널맥(3443-0701)
Opinion
RFID/USN Korea 2006
Actualization of Ubiquitous Society
Coming with RFID Standardization
By Dr. Song Kwan-ho/President of NIDA
Rush to usher in world standard
U
addition, the government is devoting efforts to
biquitous is a word to indicate omnipresence
awaken interest about the RFID industry or to test
that exists anytime and anywhere. It means
business feasibility through a pilot project with
that necessary information is offered through
industry circles.
connection to a computer network regardless of
We understand that right now, diverse
space or time, ultimately enhancing the quality of
institutions such as EPCglobal, ISO/IEC, u-ID
a man’s life.
Center, and VeriSign have research under way
Presently the actualization of a Ubiquitous
and are striving to standardize the code system as
society is not a far-off future to us and in its center
well as related technologies. At home, mobile
there is the Ubiquitous Sensor Network (USN)
RFID standardization is being developed to
based on Radio Frequency Identification (RFID).
provide information which is necessary in seeking
RFID means technology that uses antennas for
content online or on location centering around the
the purpose of information transmission,
Mobile RFID Forum.
embedding semiconductor chips for the sake of
RFID-related research which is progressing in
reading or writing information.
several institutions has been used in limited fields
In a Ubiquitous society in which information
such as ID confirmation, entry and exit control
can be provided by transcending time and space,
Song Kwan-ho
and electronic payment confirmation. In the
we receive the location of work and related
President of NIDA
coming years, RFID is forecast to exert a big
information through a cellular phone in a
influence on society at large as it is applied to entire industry
museum. It is possible for visually handicapped to also know
fields like logistics, manufacturing, and service.
surrounding road conditions or the location of a street crossing
Under such an understanding, IT advanced countries such as
by deciphering location through sensors buried in the ground.
the United States, Europe and Japan are nationally supporting
Like this, the real goal of Ubiquitous is to seek a meaningful
RFID development already and Korea also has projects to
relation between a person, matter and location through
develop or test technology with priority given to the MIC and
technology and to utilize it for people’s benefit.
MOCIE.
Big influence on society at large
Currently, a whole raft of countries including the United
States, Japan and Europe which have recognized Ubiquitous as
the future of informatization technology are devoting many
efforts for the development of RFID technology.
Moreover they are taking much action by means of related
organizations to get the initiative in connection with world
standardization through their technology.
Herein, the government is unfolding its organic activities
between educational, industrial and laboratory organizations
with priority given to the Ministry of Information and
Communication (MIC) and the Ministry of Commerce, Industry
and Energy (MOCIE) for the development of RFID associated
technology and to be recognized in the international arena. In
Growth possibility rather than stability
It is worth noting that RFID is forecast to be applied to
diverse fields including the logistics and circulation field.
For instance, the most important thing in supply-network
management is to effectively manage a network through which a
product is conveyed from a producer through a wholesaler and a
retail dealer up to customers.
If RFID is applied to this, efficiency will be boosted since
real time management of all products is possible through
transparent supply network management by pursuing
information contained in the tag.
By managing a product’s flow synthetically like this, a
supplier can reduce worthless resource waste since their demand
prediction is possible. While a consumer, on the other hand, can
decrease unnecessary time searching for the right product and
receive a price benefit by means of transparent supply network
management.
In this way, RFID’s application can be forecast in several
fields such as library management, warehouse management,
logistics and parking management. If recognition rate problems
and tag price problems are
solved in connection with
RFID introduction right
now, one will be able to see
RFID in diverse places of
real life. This is judged to
exert a big influence on our
society at large.
Yet, it is true that current
business circles think of
RFID as a growth
possibility rather than stable
growth under way. Since
hardware developers that
develop readers are no more
than 2 to 3 years old in
terms of their reader development history, and tag prices are still
not economically feasible, the market is not yet being formed.
However now that market’s high possibility and related
technology’s study is briskly under way, the period to introduce
to the market is expected to come soon.
and capital that is being constructed by means of existing policy
through its u-Japan strategy.
At home, on one hand, MIC and MOCIE are devising related
industry activation with the implementation of a tax benefit
policy and pilot projects. Additionally, the government plans to
actualize a Ubiquitous world with a u-City construction by
encouraging the harmony of the IT industry and construction
industry.
Several problems have
yet to be solved in advance
including
initial
introduction expenses,
reader recognition error
problems and tag price
problems.
Nevertheless, a whole
raft of advanced countries
including the United States
and Japan are attempting
RFID
introduction
competitively and striving
to usher in this new
technology.
In the light of the fact that RFID’s technology development
as well as diverse movements for standardization are becoming
more practical through a standardization stage right now, Korea
should actively cope with such diverse movement so that we can
usher in a Ubiquitous future.
“It is possible for visually handicapped
to also know surrounding road conditions
or the location of a street crossing by
deciphering location through sensors
buried in the ground.”
Standardization brings
practical usage
At present, RFID technology’s
standardization is under way with priority
given to EPCglobal, the Department of
Defense and Wal-Mart in the United States,
and ISO/IEC, an international standardization
organization.
At home, technology development as well
as standardization are under way centering
around governmental institutions like the USN
Standardization Forum, National Internet
Development Agency of Korea (NIDA),
Electronics and Telecommunications Research
Institute (ETRI) and the Mobile RFID Forum.
These organizations are striving to propel
domestic and international standardization of
Mobile RFID-related technology.
The United States is driving forward
diverse policies and projects for the sake of
RFID utilization with circulation and military
goals alongside private companies centering
around the Department of Defense. Japan is
propelling its Ubiquitous society actualization
through IT infrastructure, technology power
RFID/USN business meeting for export with foreign buyers
2006-11-1
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Cover Story
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001 채널맥(3443-0701)
Opinion
RFID/USN Korea 2006
Five Technical Challenges
Face Mainstream RFID Adoption
By Shon Seung-won, vice president of ETRI
Security, privacy most pressing concerns
I
another business area. It means more workers can
t is well known that Radio Frequency
be hired for such a new business area.
Identification (RFID) technology can be used
Additionally, there are many possible RFID
for the realization of a ubiquitous environment
applications such as medical applications, people
in which IT technology is seamlessly integrated
tracking, retail services, and other customer
into our everyday lives and then provides useful
oriented applications. In medical applications,
services to humans. Though conventional Internet
RFID can be used for linking a patient with key
technologies such as web services can also
drugs, the personnel giving the drugs and
provide intelligence to our lives, these
biometric measurements. Also, RFID can be used
technologies are confined to the virtual
for people tracking. It can be used for entrance
environment. That is, conventional Internet
management or security, contact management at
technology provides intelligence only by
events, and baby tags in hospitals to manage
manipulating digitized data and the effects are
access to post-natal wards. Also, RFID can be
confined to this digitized data. However,
Shon Seung-won,
vice president of ETRI
used in retail services for tracking store trolleys in
ubiquitous technology which is harnessed by
supermarkets and active shelves.
RFID technology provides intelligence to our real
As such, RFID technology can be viewed as the promising
environment not only by manipulating digitized data but also by
technology for the future world. However, despite this promise,
sensing and controlling physical devices. RFID technology
there are several key issues that must be addressed to make
brings us the visibility of RFID tagged physical devices, control,
RFID technology flourish in the market. Some of these are
flexibility, and plenty of higher level applications that make
summarized as follows:
human lives more convenient and comfortable.
- Overcome Market Immaturity: Application of RFID to
RFID technology has many benefits over other identification
item level products is a difficult problem. There are many
technologies such as bar codes. Unlike bar codes, which need to
technical problems to provide visibility to each item.
be scanned manually and read individually, RFID technology
- Cost Overhead Problem: Though physical costs are
does not require line-of-sight for reading due to its intrinsic
becoming less important as the cost of tags falls due to
wireless communication capability between the RFID tag and
semiconductor fabrication characteristics, the implementation
reader. Within the reading range of an RFID reader, it is
costs will remain a challenge for smaller organizations and
possible to automatically read hundreds of tags a second and
benefit professional services and systems integrators in the
then isolate one specific tag. Not only can these tags be read
initial stage of roll-out.
faster than bar codes, they also contain more information. They
- Possible Privacy Infringement Problem: It is the key issue
even process the information so they can recall it more
for vendors to overcome this fear by the recycling, blocking or
efficiently.
disabling tags when they are no longer needed. Many NGOs are
RFID applications are limited only by the imagination. It
strongly opposing the adoption of RFID technology in the real
means that there are many possible applications for RFID and it
world. And they even regard the RFID as a spy-chip.
also means that the RFID technology is the core technology for
- Implementation Hurdles: The physical characteristics of
making a Ubiquitous World. In the manufacturing and business
RFID tags are also big hurdles to realize RFID tags to real
area, many businessmen can save their money in manufacturing,
applications. Also, the issues of integrating the data to existing
managing and distributing products. The benefits of this
IT applications are big burdens to real applications.
efficiency eventually will be given to customers in terms of the
- Lack of Adopters: To comply with mandates from Walprice and quality of products. Also, this efficiency can make
Mart and the US Department of Defense suppliers have had no
choice but to adopt RFID. There are best-practice lessons to be
learned from these and other interesting pilot programs.
Among the stated issues, privacy and security infringement
will be the most critical issue to make RFID technology
prevalent in real applications. The remaining issues will be
solved in the near future. Possible abuse, or just excessive use,
by retailers and government agencies of RFID’s tracking
capability raises questions about potential violations of personal
privacy. Also, it is known that RFID tags can be easily cloned
and modified. It is also easy to eavesdrop on the communicated
message between the RFID tag and reader. Current passive
RFID tags only provide naive security capabilities such as a kill
password and access password to the user. Unfortunately these
conventional security features can be broken easily.
What makes the situation worse is the intrinsic characteristics
of RFID tags, that is, the resource constraints of RFID tags.
Due to the low cost of passive RFID tags and the fact that they
operate without a battery, there are some weaknesses associated
with RFID-based object identification. Conventional stable
security technologies that are used for Internet and Smart Cards
cannot be used for RFID environments due to its high resource
constraint and special characteristics of RFID applications. It
means we have to develop proper security and privacy
enhancing technologies to make RFID technology popular in the
market.
In order to increase consumer acceptance of RFID
technology, RFID advocates must promote and implement
comprehensive security measures along with consumer
education, enforcement guidelines, and research in and
development of practical security technologies. Technical
organizations such as EPCglobal, Inc. are developing standards
for the Electronic Product Code, including its Guidelines on
EPCs for Consumer Products.
A simple countermeasure -- a built-in option designed to
kill the functionality of an RFID tag when the consumer leaves
the store -- has been incorporated into the EPCglobal standard.
For consumers, its purpose is easy to understand and thus easy
to accept. However, killing a tag’s functionality curtails the
future potential use of RFID in consumer services. So this
naive solution to keep privacy may not be acceptable to many
consumers and not be appropriate for the ubiquitous world.
Many privacy-protection solution mechanisms are being
developed in academia and research communities. Among
these, the most secure and reliable approach is to use
cryptography. Because conventional cryptography techniques
cannot be applied to RFID environments, engineers and
scientists have to develop proper security solutions to boost the
security of RFID environments and preserve the privacy of
RFID users. These solutions include lightweight crypto
modules, security protocols, security management of RFID
tags, security techniques for RFID middleware and
Information Services and privacy enhancing technologies.
An example of this technology is the anonymous-ID
scheme in which an encrypted ID is stored in the tag. The
encryption algorithm AES and hash function SHA-1 can be
used for this encryption purpose. In response to a reader’s
request, the tag replies with the encrypted ID to the reader.
The reader then sends the encrypted ID from the tag to the
RFID back-end system, requesting the back-end system -middleware, information server, or application -- to decrypt
the encrypted ID. The back-end system does so to obtain the
real ID of the tag and sends the ID back to the reader. This
scheme prevents the leaking of private consumer data by
encrypting the ID.
RFID privacy and security issues are stimulating topics and
these topics are known to critical points to make RFID
technology successful in real world. In the research community
many researchers are actively studying to develop proper
security technologies for RFID from the RFID tag to RFID
back-end systems. These efforts involve rich interplay among
many disciplines, digital and analog hardware designs, system
designs, supply-chain logistics, privacy rights, data
management, and cryptography.
In addition to these technological efforts, social efforts such
as educational along with corporate application policiesy are
required to reassure RFID users that their private information is
indeed safe. In summary, to reduce the privacy infringement
worrisome and the vulnerabilities of RFID applications,
comprehensive countermeasures must combine a variety of
viewpoints -- legal, social, and technological -- to address any
potential security threats to the personal data of tens of millions
of consumers worldwide.
2006-11-1
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SK Telecom
Diverse Killer Service Knowhow
Reader-embedded cellular phone terminal launching and spread under way
S
K Telecom plans to construct
Mobile
RFID
project
infrastructure and create a new
business model. The company will
draw on its diverse killer application
discovery experience and knowhow
in the wireless Internet field as
evidenced by its current nationwide
mobile communication infrastructure.
SK Telecom is launching its
reader-embedded cellular terminal
and preferentially pushing its
popularization.
Right now, the company has a
governmental pilot project under way
linking a rolling form cladding reader
to a cellular phone, but due to
inconvenience of use the company
has difficulties in getting real
customers to use it.
In connection with this, SK
Telecom has completed development
of a chip which can be embedded in a
terminal by teaming up with the Electronics and
Telecommunications Research Institute (ETRI). It has
successfully completed the company’s pilot terminal
development project with this chip, according to SK Telecom
CEO and President Kim Shin-bae.
Second, the company holds the responsibility to develop
Mobile RFID’s killer services. The CEO speaks about this by
saying: “SK Telecom has been continuously developing
business models with mass subscribers as its object and plans to
nurture it as a killer service by actualizing profitable business
model through market test.”
Selected as Mobile RFID
pilot business provider
Since the company was selected as a Mobile RFID pilot
business provider by both the Ministry of Information and
Communication (MIC) and National Information Society
SK Telecom
RFID/USN Korea 2006
booths for demonstration in 8 different locations: Incheon
Airport u-zone, a new shop branch, a TTL zone, the SK TTower, and the Myung-dong SKC plaza. They allowed
customers to be able to experience the technology free-of-charge
in a demonstration terminal.
The services to be provided include music content, TV
content, movie star stories, games, lifestyle information, stock
information, and shopping information.
Through Mobile RFID to be commenced at this time, the
CEO underscores: “By equipping RFID-reader to customer’s
cellular phone, subscribers, end-users, are forecast to be able to
confirm on whether a product is a genuine article or not or
acquire diverse information through RFID tag not only in B2B
sphere, but also in B2C sphere.”
Mobile RFID pilot service commencement
Mobile RFID demonstration
Agency (NIA) in May 2006, Kim notes that SK Telecom began
the Mobile RFID pilot service from October 27 this year.
The first service to be presented by SK Telecom is the UPortal service. This was selected from the company’s six
propulsion services which are Taxi Safety Service,
Authentication, Supply Chain, Trace and Tracking, and Digital
Content.
By proceeding related infrastructure construction in the
meanwhile, we came to provide Mobile RFID pilot services on
the 900MHz band for the first time, Kim said.
He added: “U-Portal service is forecast to be able to induce a
conformation on whether a sale is possible or not in Digital
Offline space and data use activation of customer through
convenient UI.”
U-Portal is expected to provide publicity about new products
and appropriate content by venue, playing a gateway role for
digital content such as music, games, and lifestyle information.
During the period of this pilot service, SK Telecom installed
SK Telecom consortium partners include Seoul City for
taxis, Boryung and Tongyong for tourism, Korea Food Industry
Association (KFIA) for foods, the Ministry of Health and
Welfare for medical supplies, Gangwon province for cows, and
SKC for multimedia, according to Kim.
As a pilot project example, the CEO introduced the KT&G
RFID pilot service and embedded-model chip development. SK
Telecom has provided customers with genuine article
confirmation as well as product information services from
December 2005 to March 2006 by teaming up with KT&G and
Shinsegye I&C.
Regarding embedded-model chip development propulsion,
the company has Mobile RFID reader simple chip joint
development under way with ETRI.
In more detail, the Taxi Safety Service sends taxi information
to family and friends through
SMS if a passenger reads the
taxi tag with his cellular
phone reader.
Second, the Medical
Supplies
Confirmation
Service verifies medical
supplies
production
information if a customer
reads the RFID tag attached to
a medical supplies receptacle.
Third, the Space-based
Travel Information Guidance
Service is an infrastructure
construction pilot project to
deal with increased travel
demands. Increased demand is due to the full-scale introduction
of the five-day workweek. Also, as the country is growing,
more tourism information must be given on a higher level.
Fourth, the Food Record Supply Chain Service is a service
which allows a customer to confirm food production as well as
its circulation records by reading the RFID tag attached to a
product.
SK Telecom’s RFID pilot service commencement on Oct. 27 of this
year
Fifth, Trace and Tracking helps customers purchase Korean
beef safely by recording information about the cow’s habitat
that was accumulated from an RFID tag attached to the cow
during its lifetime.
Sixth, the Digital Content U-Portal Service allows customers
to appreciate or purchase any content that they want anytime
and anywhere.
Still at the beginning stage
Differing from advanced countries such as the United States,
Japan or Europe which execute unsparing investment on RFID
related technology as well as R&D, SK Telecom president Kim
pointed out: “In the case of our country, RFID’s concept was
introduced for the first time in 2002 and its service level also
remains at a beginning stage
as its pilot service is
introduced in some public
fields recently.”
In order for Korea to leap
into a position to nurture the
competitiveness of the RFID
field, Kim maintains that our
country needs to establish a
mobile RFID technology
industry and business model
based on our country’s
worldwide
mobile
communication infrastructure.
Different from a fixedmodel RFID reader, mobile
RFID can be linked to new businesses such as mobile
settlement, advertisement and public opinion surveys in that it
holds edge Tag recognition, and that information confirmation is
possible anytime and anywhere.
He also said that all the new services which SK Telecom
offers will be available for demonstrations firsthand at the 2006
RFID/USN Exhibition.
“By equipping RFID-reader to customer’s
cellular phone, subscribers, end-users,
are forecast to be able to confirm on
whether a product is a genuine article
or not or acquire diverse information
through RFID tag not only in B2B sphere,
but also in B2C sphere.”
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Asiana IDT
Asiana IDT Embraces Future
of Ticketless Travel
Manufacturing and construction logistics also to be improved
B
y concentrating its research in the niche
RFID/USN Korea 2006 exhibition: a
area of flight baggage, Asiana IDT
solution regarding flight reservations,
(www.asiana.com), a corporation of the
ticketing, and note issuing; a sensor tag
Kumho Asiana Group specializing in the
reader for USN; middleware developed by
field of IT, is poised to pull ahead of the
its RFID/USN Center; and a mobile RFID
crowd in the Radio Frequency
solution.
Identification/Ubiquitous Sensor Network
In more detail, the solution regarding
(RFID/USN) business.
flight reservations, ticketing and note issuing
What is especially worthy of note is that
will enable a literal one stop service by
the company will implement its plan by the
making all reservation and note issuing
end of this year or by the first half of next
processes ticketless with just a customer’s
year at the latest, according to Asiana IDT
cellular phone required for identification.
CEO Park Keun-sik.
Second, regarding the Sensor Tag Reader
In a special exclusive interview with The
for USN, joint collaboration research and
Korea IT Times regarding the RFID/USN
development is under way by teaming up
Korea 2006 conference which will kick off
with
the
Electronics
and
on Nov. 7 at COEX, Seoul, Korea, the CEO
Telecommunications Research Institute
noted: “Niche market like flight baggage is a
(ETRI) in Daejeon, Korea.
Asiana IDT CEO Park Keun-sik
field which deserves to be challenged
Third, the middleware developed by
sufficiently by us possessing the technological capabilities and
Asiana IDT’s RFID/USN Center boasts of fast performance. Its
know-how gathered from the main areas of business of our
tag transaction speed per second is unrivaled, being able to scan
group including air/land transportation, finance, construction,
8,000 to 12,000 tags per second. For comparison, competitors’
leisure, manufacturing, and logistics because worldwide
tag scanners can only scan 300 to 500 tags per second.
ordinary tag developers don’t show their interest in such a niche
Fourthly, Asiana IDT will showcase its Mobile RFID
market in that it doesn’t pay.”
solution as reader functions and tags are expected to be
Speaking about the company’s RFID/USN business
eventually embedded in all cellular phones.
direction, Park explains that Asiana IDT has set a goal to
develop the best suited tags, readers, and antennas to fit the
Many applications of RFID technology
environment. He added that the company particularly
Park elaborates on his expectations of participation: “Seeing
concentrates its efforts on developing equipment specialized for
through RFID/USN technology field’s bright prospect and its
its purposes.
growth possibility a little earlier, Asiana IDT has chosen this
In conjunction with this, Park said that Asiana IDT’s
field as its strategic business rearing field. So after establishing
RFID/USN Center established in 2005 will eventually pay for
its RFID/USN Center, we are applying spurs on technology
itself. The technology it will develop will be applied to the
accumulation and its upbringing.”
fields of aviation, tires, complex cargo logistics, and
As a result, its RFID/USN Center has created an astonishing
construction, according to him.
outcome in a short period and perhaps is expected to show off
its research results continuously from now on, Jung Hong-Chae,
Ph.D., director of the RFID/USN R&D Center, said.
Ticketless travel, labelless baggage
Jung added that he believes this exhibition display is also one
Asiana IDT is slated to display four items in the forthcoming
Asiana IDT
RFID/USN Korea 2006
manufacturers at home and abroad.
He has committed himself to
carrying out the company’s
preparation as planned. The
company’s road map includes a
market activation period of 3 to 4
years and will confidently multiply
the personnel and budget during
this period.
The Asiana IDT RFID/USN
R&D Center envisions a company
which is number one at home in
the fields of aviation, tires,
construction and logistics. The
company’s first execution strategy
is to, above all, provide the best
system performance at the most
reasonable price, according to
Flight baggage niche market to be dominated by Asiana IDT
Park.
of its preparation processes and in particular he hopes
Director Jung also said that because there have
this exhibition will acquaint the market with our
not been any examples of trial and error from
company’s RFID/USN brand.
predecessors, pioneering technology causes a
In consideration of the fact that Asiana IDT is
bottleneck in carrying out such tasks and adds a
supporting Kumho Asiana Group’s IT division, the
mental burden to have to produce results fast.
company is now preparing for preferential solutions
The two gentlemen were of the same opinion in
to apply after reviewing and analyzing RFID/USN
that in the field of RFID/USN, semiconductor,
application fields related to Group business content,
telecommunication, and network technology as well
according to Jung.
as infrastructure conditions are very important
Asiana IDT is preparing for a tire tag application
problems. However, in Korea all fields are good
solution which will be applied to tire manufacturing
without omitting anything.
lot management and circulation logistics. It is also
Provided we go forward by making the most of
developing a flight cargo and baggage application
such infrastructure, Korea will be able to become a
solution and a construction site logistics solution.
RFID/USN power before long, they said.
Regarding the RFID/USN R&D Center’s new technology
development, the director emphasizes: “For instance, Asiana
IDT is preparing solutions fitting to there after selecting
Business Model alone which is possible to commercialize within
five years at the latest by applying RFID/USN.”
As stated earlier, it is worth taking note of Asiana IDT
because the company is increasing its business potential by
surveying and analyzing niche markets such as flight baggage.
Asiana IDT’s current key R&D content encompasses
middleware as well as specific tag and reader technology and
solution excavation through Business Process Modeling. But
starting next year its R&D scope will be extended to the USN
field, Jung said.
Growth and Extension
CEO Park commented about the company’s growth vision as
well as execution strategy as RFID/USN Leader by saying: “Our
RFID/USN R&D Center prepared from March last year, is
showing a remarkable achievement in a relative short period.”
He added that the performance of the middleware which was
launched recently is quite light compared with competing
2006-11-1
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Keynote Speech
RFID/USN Korea 2006
Kia Motors
Kia Successfully Introduces
RFID-based e-Logistics System
Experts to Speak About
Futuristic City, Technology
K
ia Motors, whose President is Chung
Eui-sun, has received the Presidential
Grand Prize for its distinguished
achievements in e-Business, specifically in
the e-Logistics system. Recently it has
enlarged the scope of RFID application to
the manufacturing field for the first time in
Korea. In 2003, Kia Motors introduced
the Toyota’s production method of Just In
Time (JIT) to its company, but has
successfully changed its system to an e-JIT
production method, so that it may be more
suitable and efficient for the domestic auto
industry. Now, furthermore, it has newly
developed an e-Logistics system, which is
a much more advanced system than the eJIT production method. As a result of
these efforts, it has come to receive the eBusiness grand prize.
Three salient features
of e-logistics system
From the following three aspects, the eLogistics System is showing many differences from other existing logistics systems.
First, the new system gives information on
the production performance by process on
a real-time basis. The RFID tags are
attached to the roof of cars, and so when
the cars pass through each process that is
installed with an antenna, they can transmit
the information on cars and parts usage to
the server.
Secondly, RFID technology makes it
possible to obtain and use the input and
output information on the car parts. The
RFID tag reader is installed both in the
entrance gate of Kia Motors and the exit
gate of its partner companies. Therefore
when cargo trucks pass through those gates
the information on the cargo is read and
transmitted to the server. Thirdly, a large
briefing board shows employees parts
New Songdo City to have everything except flying cars
M
any interesting topics will be presented by well-known
speakers at the RFID/USN Korea 2006 Exhibition and
Conference in November 2006. Among those are
Whang Jong-sung, head of the National Information Society
Agency (NIA), who will present on the topic of “RFID Project
Implementation Status in the Public Sector.” Also, Juno Kim of
U-Comm Technology Company LTD will speak regarding
“Mobile RFID Market and Technology Trends.” In addition,
Kang Hun will speak on the topic of “Incheon Free Economic
Zone U-city Strategic Planning.” Namkoong Bin of the u-IT
Cluster Center will also speak on the subject of “Becoming a uIT Hub in Northeast Asia.”
Kia has enlarged the scope of RFID application to the manufacturing field for the first time in Korea
usage on a real-time basis and the inventory level of each production line in the
assembly factory. Monitoring on a realtime basis enables the proper quantity of
parts to be supplied.
From daily basis to real-time
basis inventory system
By introducing the e-Logistics System,
Kia Motors’ daily-based inventory management system has been changed into a
real-time basis system. Through this new
system, the order precision ratio has greatly improved, that is, from 58% before the
introduction of the new system to 99.8%
under the new system. Consequently, a
stable ordering system has been established. Concerning the monitoring of the
production lines and inventory situation,
until now the time and quantity of parts
supply has depended upon the judgment of
the manager in charge. But now through
this new system, the inventory volume is
always kept in the least level and most
optimal condition.
Order precision
ratio revolution
Over the years, Kia Motors has focused
on improving its order precision ratio, trying hard to apply diverse technologies, and
finally succeeded in the establishment of eLogistics System. From the beginning of
RFID application, the company has made
intensive research on what impact its RFID
application can have on the auto manufacturing process. At the same time it has
tried to build this system to seek mutual
benefit with its partner companies. All
these efforts have cooperated to bring success. Through this e-Logistics System, Kia
continues to reduce the inventory maintenance costs and losses coming from defective parts. People will want to see how Kia
Motor continues to make efforts to develop
a much more advanced system by strengthening this new system and manpower education.
RFID public sector implementation
Whang Joon-sung’s speech will cover many RFID aspects.
Among them will be strategies to revitalize the demand for
RFID/USN technology, obstacles in the way to dissemination of
RFID, and directions that RFID/USN technology will take in
2007.
Whang will outline a three step process to create demand for
RFID in the market. The development of pilot projects is the
major first step, while taking full advantage of successful pilot
programs is the next. This is all best done within government
organizations. Finally, inducing the private sector to become
involved in the new technology is the third step to revitalizing
the demand for RFID/USN.
The most difficult obstacle to overcome in adopting RFID,
according to the NIA Head, is the lack of confidence that
potential investors have in the new technology. Another
obstacle which will be spoken about by Whang will be potential
technical weaknesses of the new technology. A third obstacle
standing in the way of RFID adoption will be the absence of a
key RFID broker to market and sell the new technology.
However, these obstacles are easily overcome by suggestions to
be found in the speech.
More exiting will be the section of the speech dedicated to
the trends for RFID/USN in 2007. The Head of the NIA will
speak about diverse fields in which the technology can be
applied. He will also explain details about current pilot projects
and their current status regarding success or failure. Finally, he
will speak about field tests in which the technical reliability of
the new technology is verified.
It will be a very informative speech, all in all.
Mobile RFID market
Juno Kim will detail plans to include RFID readers into
mobile phones. The representative from U-Comm Technology
will begin with an explanation of the mobile RFID concept, and
explain the current mobile RFID pilot program in Korea. He
will include current service providers participating in the
program and also explain a little about content providers and
what they are currently testing.
Kim will also speak about the upcoming trends in mobile
RFID applications. He will focus on current technical details
that the big three developers involved are focusing on. He will
also cover partial and all-in-one solutions.
The speaker will conclude with some topics regarding RFID
infrastructure, including both current infrastructure and
upcoming infrastructure necessary to take full advantage of the
technology. He will mention leading companies in all aspects of
the development of this technology, and cover when the first
phones will come to the commercial market.
Incheon Free Economic Zone
Kang Hung will explain to us the latest version of the U-City
vision for the Incheon Free Economic Zone (IFEZ). After that,
he will spend some time explaining the current IFEZ USN plan.
For those still unfamiliar with the area, Hung will give an
overview of exactly what the IFEZ is, including detailed maps
of the area. He will touch on what is currently built and what is
planned for the future. The newly-created Portman Consortium
investment area will be shown as well.
In addition, Kang Hung will also explain the competitive
advantages of the IFEZ both geographically and
governmentally. He will spend some time explaining the
current abilities of the zone and the vision of what the zone can
2006-11-1
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Cover Story
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RFID/USN Korea 2006
do in the future.
The speaker will also go on to talk about the U-City concept
for IFEZ, including the reason behind it all. He will detail
strategic planning regarding the creation of the Ubiquitous City.
He will detail plans for health care, traffic control, personal
homes, and finances within the city.
Hung will also speak about the current status of all plans in
this project, including the current budget and organizations
involved in making the U-City a reality. He will speak about
the current pilot projects going on in the sector, testing centers,
and integrated control centers.
Finally, Kang Hung will conclude with the strategic plan for
the future of the IFEZ. He will speak about the plans for a
creation of a city-wide data network. He will also detail the
current strategy for implementing a ubiquitous sensor network
(USN) in all aspects of life, including medicine, logistics,
vehicle navigation, and social welfare. He will speak about the
next generation plans for a futuristic roadway and the very
interesting Intellectual Streetlight concept.
Many people will be interested to hear about these topics.
Becoming u-IT hub
Finally, Namkoong Bin will talk about the logistics of
becoming the strongest u-IT hub in Northeast Asia. He will
answer many questions, including “Why did MIC make a plan
to build the u-IT Cluster?” and “What services will be provided
in RFID/USN Infrastructure Facilities?”
The speaker from the u-IT Cluster Center of the NIA will
explain the reasoning behind MIC’s commitment to a u-IT
Cluster in the IFEZ. He will explain the services, infrastructure,
Keynote Speech
and engines involved, and the convergence that will inevitably
happen among them all.
In accordance with the theme of the conference, he will also
talk about the advantages of New Songdo City’s position. He
will go on to explain where the u-IT Cluster will be located and
when it will move to the IFEZ.
Namkoong Bin will continue by explaining in more detail
how his company will make the u-IT hub of Northeast Asia. He
will speak about current budgets, current investors, and current
and upcoming infrastructure facilities.
Especially, he will also spend some time speaking about the
USN Fab Center, explaining its future functions in great detail.
He will explain its position in the value chain of the budding
RFID/USN industry, and also go on to explain the other links in
the developing chain in the IFEZ.
There will also be a detailed time line of service availability
from 2006 to 2009. Each year the center plans to launch a new
set of services, until full operation will be completed in 2009.
Namkoong will speak about that plan in full detail.
Another interesting point that the speaker will cover will be a
list of companies that have already come to the Incheon
Economic Free Zone already. Over fifteen different
international companies and their locations will be revealed
during this presentation.
Namkoong will also spend some time speaking about the economic benefits of the Free Zone, outlining the tax incentives that
the government provides for companies who move into the area.
All in all, the RFID/USN Korea 2006 Exhibition and
Conference will be a very informative and interesting event.
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Special Report / Crystal Valley Conference and Exhibition 2006
Display Korea @ CVCE 2006
New Korean Display Industry Stronghold in Development
Focus on bringing R&D and equipment together for price competitiveness
In consideration of such problems the
Conference Chair said that they will do
their best to make the CVCE 2006 a very
successful event that will be remembered
by all the attendees and exhibitors for a
long time. The conference will focus on
LCD backlighting and OLED
technologies and will have 30 paper
authors invited to speak from all over the
world.
World-class display industry
cluster construction
“Ultimately, CVCE is to help Chungnam so that this
province can be nurtured as a production stronghold
possessing over 30% of world display market and as
a dynamic innovation cluster that combines
manufacturing function and research function.”
C
rystal Valley Conference and
Exhibition 2006 (CVCE,
www.crystalvalley.org) will kick
off November 22, 2006 and will
last for three days at Sun Moon
University, Asan, Korea. This is the
second time the Conference and
Exhibition has met to globalize
Chungnam Crystal Valley.
This CVCE’s purpose is to prepare a
channel of brisk R&D network
construction at home and abroad. This
international collaboration system of
corporations,
universities,
and
laboratories is also about information
exchange, high-grade manpower
exchange, information circulation and
technology recreation associated with the
display industry.
Conference Chair S.H. Lee of the
Chungnam Display Cooperation Agency
stressed: “Ultimately, CVCE is to help
Chungnam so that this province can be
nurtured as a production stronghold
possessing over 30% of world display
market and as a dynamic innovation
cluster that combines manufacturing
function and research function.”
However, CVCE 2005 had a raft of
problems. It was difficult to find a venue
for special exhibitions and meetings.
There
was
also
a
business
accommodation facility shortage. There
was no differentiation strategy with
another conference and exhibition, and
there was even a buyer invitation shortage
both from home and abroad.
Regarding global display market trends,
flat displays in the world display market
are anticipated to surpass the $55 billion
memory semiconductor market by having
sales of $69.9 billion in 2007.
LCD, LED and PDP are forecast to
show an annual growth rate of 22%, 25%,
and 60% respectively while OLED, which
is in a market penetration period, is
expected to show a growth rate of over
113%.
In the home display industry, LCD has
emerged as a key export industry, growing
by an annual average of 23% since its
mass production in 1985. Korea possessed
40% of world market in 2003 with the
largest scale TFT-LCD mass production in
the world since 2001.
PDP occupied approximately 30%
market share in 2003 from 3% in 2001. Its
global market share has enlarged rapidly
since mass production began in 1999.
Thanks to investment from Samsung
Electronics and LG Electronics, LG
Electronics developed a 76 inch PDP-TV
in 2003 and Samsung SDI succeeded in
mass producing a 70 inch PDP-TV by
using Multi Cutting Process technology.
In the case of LED displays, their
global market share ceaselessly increased
from 1% in 2001 to 5.3% in 2003 since its
mass production began in 1999.
Welcome speech for CVCE2006
Cooperation
encouraged
between all
participants
By Lee Seung-whan,
general chair of Crystal Valley Conference
& Exhibition 2006
Lee Seung-whan
I
t is my great pleasure to welcome professionals who specialize in
display industry at this CVCE 2006. The FPD market has been
growing so fast beyond our expectation credit for its development of
producing technology & efficiency and increased outputs.
I firmly believe that all of these outcomes from many engineers and
scientists who working for display research field.
For sharing these achievements with relevant people and to
strengthen our amicable relationship, Chungnam Display Cooperation
Agency was organized. In a similar vein, we continuously promote and
develop CVCE 2006 to fill the main role of FPD.
Especially for this year, CVCE 2006 will put much more emphasis
on LCD, BLU, OLED technology and over 30 theses regarding
BLU/OLED from all around the world will be announced. Also 90
domestic and foreign companies will display their cutting-edge display
products and exchange up-to-date information briskly through BLU &
OLED forums.
Thanks to prominent speakers who gladly share their invaluable time
and experiences for us and all of the attendees who have a great
affection for display industry.
We are going to do our best efforts to make memorable conference
to all of the attendees and speakers who gladly participate in this
conference.
In conclusion, I sincerely hope to meet you at Chungnam Asan,
Crystal Valley of Korea and look for your amicable collaboration,
affection and advice.
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Special Report / Overview
S-LCD Corporation
Eighth Generation LCD Fabrication Line
In the new display industry field of
OLED, SNMD, a joint venture company
between Samsung SDI and NEC, has
begun to mass produce PM-OLED. It also
engaged in R&D about next-generation
displays such as FED, 3-D displays, and
electronic paper.
Equipment, component and material
industries also are rapidly growing in step
with domestic display industry’s growth
and investment enlargement. The
localization rate of components and
materials is becoming higher with priority
given to LCD, but its raw material is
dependent on imports for the most part.
Intensifying competition
among Northeast Asian
countries
The competition between display
clusters to secure world market
competition superiority is intensifying.
The competition between panel
manufacturers to secure display market
initiative is fierce. Samsung, LG and
Sharp are unfolding their fierce
competition for the purpose of a market
initiative.
With regard to competition from large
scale industry clusters, it is reported that
four East Asian countries, namely Korea,
Japan, Taiwan and China, are building
exclusive display complexes now. The
complexes are on the scale of dozen to
several hundred million pyeong.
From the standpoint of the present,
Korea is building the largest display
cluster in the world in Asan Tanggeong
amounting to 2.13 million pyeong (approx.
7.029 million square meters). The
complex actually includes two smaller
complexes. The first complex is 740,000
pyeong (2,442,000 square meters) and the
second complex is 640,000 pyeong
(2,112,000 square meters).
preparations have made the Chunan-Asan
region a mecca of the largest scale display
industry in the world.
A global mecca
for the display industry
With its strategy to secure the initial
market through preinvestment, Japan is
slated to invest 150 billion yen in an 8th
generation line with the goal of mass
production in Oct. 2006 corresponding to
Korea’s aggressive investment.
Taiwan is nurturing LCD clusters
across the entire island centering around
three scientific complexes and China has
joined large-sized LCD investment
competition within China in earnest as
SVA-NEC and BOE-OT commence mass
production through their fifth generation
line to overcome their weak point as
latecomers.
Excellent location near harbor,
airport and Innopolis
Concerning CVCE hosting goals,
Conference Chair Lee emphasizes the
geographical superiority of the ChunanAsan region for the display industry.
Chungnam’s accessibility with harbor and
airport are very convenient. And, due to
its proximity to Daedeok Innopolis, the
region’s growth possibilities as a new
industry hub in Northeast Asian economic
circles are high.
The Chunan-Asan region, among
others, is becoming a site for electronics
industry information machinery and tools.
Samsung Electronics is gathering together
in the region with component and
material manufacturers with priority
given to semiconductor and display
industries.
As a result, Lee assessed that these
Yet, many tasks remain for the
activation of the Chungnam display
industry.
The first is corporate
environment formation to induce the
settlement of cutting-edge LCD
corporations. The second task is back-end
complex formation according to largescale state-of-the-art industry movements.
The third remaining job is collaboration
complex preparation to attract superior
manpower. Also, the area needs to attract
collaborating display-related companies at
home and abroad in order to receive more
R&D funds. These funds can be used to
nurture component, material, and
equipment manufacturers related to the
display industry.
CVCE’s basic development direction in
the middle and long run is to maintain
Crystal Valley’s international image as
well as to leap into a technology and
business hub.
To that end, the Conference Chair
committed himself to doing his best so that
CVCE can contribute to constructing a
world-class display industry cluster that
looks attractive to leading corporations and
laboratories at home and abroad, and
contributing to Crystal Valley’s
internationalization by hosting CVCE
annually.
Moreover, the Conference Chair said
that Chungnam Display Cooperation
Agency will do its best so that the Crystal
Valley Conference and Exhibition can
strike root as an international exhibition
in world display technology contributing
to product standardization by activating
international business dealings.
S
-LCD Corporation, a Samsung
Electronics Co. Ltd. and Sony
Corporation joint venture, held a
topping out ceremony to celebrate a major
milestone of the construction of the 8thgeneration LCD fabrication line at the
Tanjeong production complex. Topping
out is the placement of the uppermost
steel beam, signifying that the structure is
close to its completion. At the ceremony,
officials of S-LCD said the new facility
would trigger a new growth surge for the
company.
From Samsung Electronics, Vice
Chairman Yun Jong-yong , Vice
Chairman Lee Yoon-woo, and President
Lee Sang-wan participated in the
ceremony. From Sony Corporation,
President and Electronics CEO Ryoji
Chubachi, Executive Deputy President
Katsumi Ihara, and Executive Deputy
President Yutaka Nakagawa were on
hand. And from S-LCD, CEO Chang
Won-kie and CFO Hitomi Masatoshi
were on hand.
The six senior executives congratulated one another on the success of their previous collaboration -- the 7th-generation
LCD line -- and promised to work together to ensure continued success with the
8G line.
S-LCD started mass producing LCD
panels on the 7G line in April 2005, nine
months after the company was officially
launched.
As a result of that
collaboration, both Samsung and Sony
have had access to a stable supply of
large-screen LCD TV panels, helping the
partners to become the global market
leaders for LCD TV screens in the 40
inch diagonal range.
S-LCD has maintained its original
investment schedule on its path to market
leadership for LCD TV screens in the 50
inch diagonal range.
By July 2006, the 7G fabrication line
at S-LCD was capable of processing
75,000 mother-glass substrates per
month, with a goal of increasing this
monthly capacity to 90,000 units in early
2007.
Next fall, the 8G S-LCD line will
commence operations, adding another
50,000 mother-glass substrates measuring
a record 2.2 by 2.5 meters to the overall
monthly production capacity, thereby
positioning S-LCD as the world’s largest
producer of large-screen LCD TV panels.
The 8th-generation fabrication line will
mainly be used to produce LCD panels
for 52” or larger diagonal LCD TVs.
Mr. Won-kie Chang, CEO of S-LCD
and Executive Vice President of Samsung
Electronics, says: “Our success in 7G production has already provided a springboard
for a new round of growth at S-LCD. Once
our 8G line is up and running, we will
assume the leading position as a LCD TV
panel manufacturer for the 50” LCD TV
range.”
“Our success in 7G
production has already
provided a springboard
for a new round of
growth at S-LCD. Once
our 8G line is up and
running, we will assume
the leading position as
a LCD TV panel
manufacturer for the
50” LCD TV range.”
Samsung’s 57 inch FullHD
2006-11-1
2006.11.7 01:3 PM
페이지48
001 채널맥(3443-0701)
Special Report / Interview Highlight
Representative Display Industry Hub Construction
Chungcheongnam-do is diving head first into the display industry
T
he province plans to allow
Chungnam’s display industry to usher
national income $20,000 era by
intensively investing 160.9 billion won
(US$171 million) from 2005 through 2008
in the display industry. The display
industry’s relative importance is very big
for not only the local economy, but also
the national economy.
The Crystal Valley Conference and
Exhibition
2006
(CVCE2006,
www.crystalvalley.org) will kick off from
November 22, 2006 over three days.
Governor Lee Wan-gu, Chungcheongnamdo (Chungnam) spoke about the
conference by saying: “The display
industry is the nation’s next-generation
growth engine industry as well as
Chungnam’s foremost strategic industry,
whose contribution degree is high for
employment creation and local economy
activation since its export’s relative
importance, manufacturing industry ratio
and related industry’s effect are very big.”
Actually, Chungnam’s display industry
has been maintaining a steady growth
pace, starting from leading corporate
investment in the middle of the 1990s. As
a result, Chungnam accounts for 13.9
percent of display company distribution
nationwide, approximately 35 percent of
total domestic display production, and 49.8
percent of national display export as of
2006.
Aggressive inducement
Concerning the province’s favorable
location, governor Lee explains: “In the
case of Chungnam, new technology
development like technology convergence
is promising since approximately 100
related corporations are doing their
business centering around Asan and
Cheonan, manpower supply is smooth due
to associated research institutes as well as
Governor Lee Wan-gu,
Chungcheongnam-do
university and particularly IT industry as
well as petrochemical industry are well
being developed like semiconductor and
telecommunication.”
The governor emphasizes that
Chungnam is striking root as the optimal
place for the display industry as
industry hub, he introduced: “Chungnam is
forming Chungnam Crystal Valley, the
largest display cluster in the world both
nominally and virtually, of 4.18 million
pyeong [13.794 million square meters]
scale in a total of 14 complexes such as
Asan Tanggeong T/C 1/2 complex, the
largest module production venue in the
world of 1.40 million pyeong [4.62 million
square meters] scale, and Asan Techno
Valley of 750,000 pyeong [2.475 million
square meters].”
Moreover, it is said that Chungnam is
commencing a full-scale corporate support
service like component and materials
assessment by erecting a Display Industry
Support Center near the Tanggeong area in
which 47.6 billion won (US$50.11
million) was invested for the purpose of
corporate technology innovation as well as
systematic corporate support, according to
Lee.
Governor Lee said that projects to
nurture talent are being set up with priority
given to universities in Asan and Cheonan
including an undergraduate-centered
“The display industry is the nation’s next-generation
growth engine industry as well as Chungnam’s foremost
strategic industry, whose contribution degree is high for
employment creation and local economy activation since
its export’s relative importance, manufacturing industry
ratio and related industry’s effect are very big.”
Chungnam display industry’s productivity
as well as growth appear to be the highest
nationwide. This is a result of national
balanced development policy.
For the construction of Chungnam
Crystal Valley, a worldwide display
display manpower nurturing project in
which 39.1 billion won (US$30.63
million) was invested.
Alongside this the province has other
investments under way in order to nurture
Chungnam as a center of new display
Tanggeong valley in which Samsung Electronics is located
technology and as an R&D cradle. Among
these investments is a local industry
technology development project worth 26
billion won (US$27.40 million) and a
display R&D cluster construction project
worth 23.4 billion won (US$25.00 million)
according to officials responsible for the
province’s investment affairs.
Besides, the Chungnam Display
Cooperation Agency was launched on
March 2005 as a private-initiative council
to promote synergy effect maximization
between projects regarding the display
industry. Chungnam plans to complete
Chungnam Crystal Valley early as well as
to boost brand awareness by maximizing
marketing business outcomes and local
innovation capacity by means of this
Agency.
The governor furthermore promised
aggressive superior corporation as well as
laboratory inducement at home and abroad
and additional active foreigner exclusive
complex formation. In addition, a
Lifestyle of Health and Sustainability
model new city development in the
outskirts of Chungan Asan station will
improve lifestyle conditions of incoming
manpower.
Latest technology presentation
In conjunction with CVCE2006, the
governor notes that this Conference and
Exhibition is to acquaint the world with
Chungnam Crystal Valley and to nurture
this region as a center of new technology
as well as business.
In connection with expectations, he
further stressed: “This Conference and
Exhibition takes place as part of efforts to
nurture this region as a representative hub
of world display industry, which is on a
par with Silicon Valley, a worldwide
center place of semiconductor industry.”
This year’s CVCE2006, which takes
place with twin themes of LCD Backlight
and Organic Light Emitting Diodes
(OLED), is slated to hold a display
manpower recruiting expo and on-thescene tour of each corporation as a
collateral event.
At this industry exhibition to serve as a
ground of brisk information exchange,
leading corporations such as Samsung
Electronics, Samsung SDI, and Samsung
Corning Precision Glass are expected to
take part, Lee said, expressing big hopes
that latest technology presentation of the
best global minds will be presented.
On top of that, the governor underlines
that the recruiting expo to be held
alongside of CVCE2006 plans to offer
diverse information plus get employment
opportunities of diverse display-related
companies.
He sincerely hoped that CVCE would
advance into an internationalized
exhibition, consolidating display industry
cluster construction through cooperation
between industry, school, laboratory and
government.
2006-11-1
2006.11.7 01:3 PM
페이지50
001 채널맥(3443-0701)
Special Report / Companies
Samsung, LG Pull Ahead of Foreign Companies in Crystal Valley 2006
Flat panels to be the order of the day
S
amsung Electronics, a leading
company in the supply of 40 inch and
46 inch LCD TV panels is attempting
to standardize LCD TV sizes. This is a
long term project originally started in
October 2003 when the company began
the construction of the 7th-generation line
of panels and continues today through the
8th generation mass production plan it
announced a few months ago.
It has already equipped itself with a
stable mass production system to meet
rising demand for the forty inch panels.
Based on such stable production capacity,
Samsung has been leading a
standardization movement by securing a
good customer base.
Samsung Electronics has also sought a
joint venture with Sony to keep the lead in
the rapidly growing LCD TV industry.
Samsung benefits by securing a stable
buyer in LCD panels, and Sony benefits
with a steady supply. The joint venture is
named S-LCD Corp. its CEO is Chang
Won-ki and CFO is Hitomi Masatoshi.
Managers in Samsung Electronics and
Sony are both participating in the
directors’ meetings of S-LCD, extending
full support for the venture. Based on
early favorable results, the two companies
decided to make additional investments in
the 7th and 8th generation development
projects.
Samsung’s production capacity is quite
The largest TFT-LCD in the world at 82 inches
good. Samsung can now produce 75,000
substrates per month. However, they plan
to expand the production capacity to
90,000 per month early next year. At the
same time, Samsung also plans to expand
the production capacity of its Line 7-2
from the present 45,000 substrates per
month to 90,000 substrate by the latter half
of this year. Combining the two lines
together, Samsung will have the
production capacity of 2.16 million
substrates per year, according to Suck
Joon-hyung, executive vice-president of
Samsung. This means that altogether,
Samsung is able to produce 1.44 million
panels for 40-inch TVs per month, or
17.28 million panels a year. This will
account for over 24 percent, or one fourth,
of the world’s total LCD TV panel
shipments in 2007.
LG Electronics is not sitting idly by
either. It was the first
company to begin massproduction of its 71 inch
PDP screen, the largest
such screen in the world, in
the 4th quarter of 2004.
The company posted sales
during that time of $1.1
billion with a market share
of 30.6%, plus sales of 1.45
million sheets.
LG also mass-produced
Single Scan technology by
applying it to 42 and 50
inch XGAs. Clear Filter
technology was also
applies to the 42 inch
screens. LG’s processing
power keeps it more
competitive.
LG’s PDP division is
planning to enlarge the
relative importance of High
Definition
and
the
premium product group.
In September 2005, LG began to
operate the company’s A3 line, which was
designed to be able to secure the largest
production capacity over two years to
come without additional ground security
and factory construction. The company is
also scheduled to continue its initiative as
the largest manufacturer in the world by
opening a second A3 line in the third
quarter of 2006.
When LG and Samsung are put
together, they account for around 55% of
the total market for display panels, and are
assured to maintain a superior position to
other countries for quite some time.
However, there are few distinctive
differences in terms of price and quality
competitiveness among Korea, Japan, and
Taiwan’s PDP products. Continuous
competitiveness appears to be the order of
the day in the coming years.
PDP TV is rapidly capturing the 50inch market. In fact, among that market
PVP is projected to account for 59% by
2010, while projection TV and LCDs are
expected to only hold 20% and 21%
respectively. Furthermore, PDP TV
market dominance of the large-sized
display market is expected to be
reinforced, according to Display Search, a
market survey institution.
LG Electronics is well aware of these
trends, and is therefore teaming up with
leading universities in Korea regarding an
educational-industrial collaboration
agreement to create high-grade Master’s
and Doctorate degree graduates.
Although LG and Samsung compete
with each other, fierce competition is not
limited to these two companies. Japanese,
Taiwanese, and Chinese companies are
also in the mix. Japanese enterprises are
currently trying to recoup the top rank that
they lost recently. Taiwanese firms are
“Managers in Samsung Electronics and Sony are
both participating in the directors’ meetings
of S-LCD, extending full support for the venture.
Based on early favorable results, the two companies
decided to make additional investments in the 7th and
8th generation development projects.”
expanding their market volume rapidly
under their government’s active support.
Chinese companies have newly entered
into this stiff market, and lack experience.
And Korean chaebol hope to keep the
leading position.
In the future, LCD companies are
expected to be classified into three
categories. Currently Korean companies
are securing the top position in terms of
large-size LCD technology and production
capacity. Meanwhile, Japanese companies
that commercialized LCD for the first time
in the world possess merits in the small
and medium-size LCD field. Taiwanese
and Chinese companies are still behind the
other two in terms of new technology
development and the number of patent
registrations, but they have been growing
at a rapid pace.
47 inch FullHD by LG
2006-11-1
2006.11.7 01:3 PM
페이지52
001 채널맥(3443-0701)
Special Report / Companies
Building a Reputable PDP Company
S
will be Held in Seoul
Samsung SDI to actualize Premium Line
amsung SDI held the celebration of
the completion of the framework
regarding the P4 line in the
company’s Busan factory on November 1,
2006, paving the way for the company’s
new PDP actualization.
Currently 10,170 pyeong (33,561
square meters) is the largest scale for a
single PDP manufacturing factory. The
new P4 line plant will be 40,000 pyeong
(132,000 square meters).
Samsung SDI plans to produce 216,000
sheets PDP maximum annually with the
P4 line, an exclusive manufacturing
factory of 50inch HD and Full HD PDP.
“By applying cutting-edge manufacturing
process to 4 line, Samsung SDI will
differentiate it from other competitors with
premium line that maximizes the cost
competitiveness,” said Samsung SDI CEO
Kim Soon-taek.
Including the P4 line’s output with the
output of the P1 to P3 lines in its existing
Chunan factory, Samsung SDI is equipped
with a PDP production capability of
approximately 7,320,000 sheets at a
42inch base. The company will be able to
cope with rapidly increasing PDP demand.
Its P4 line which is being built with the
goal of mass production in May 2007 has
completed about 70% of its entire progress
as of November 1.
Provided this P4 line is completed,
Samsung SDI Busan factory will be
transformed into the most state-of-the-art
digital display hub complex in the world.
CEO Kim stressed: “Let’s make every
effort by actualizing high-quality and
premium line so that Samsung SDI can
recapture world No.1 rank.”
“By applying
cutting-edge
manufacturing process
to 4 line, Samsung SDI
will differentiate it from
other competitors with
premium line that
maximizes the cost
competitiveness”
Samsung SDI Dual Slim
Outline of Festival
* Name of festival: 2006 Global
Costume Festival
* Period: November 12 (Sunday)
19:00~21:30
* Place: Grand Hilton Seoul Hotel
* Organizer: Daehan Traditional Art
Preservation Society
* Supporter: Ministry of Culture and
Tourism, Korean Human Culture
Assets Promotion society, The Korea
Times, the Ministry of Commerce,
Industry and Energy and real TV etc.
E
very country has their own traditional dress.
Especially beautiful is the Korean traditional
costume called Hanbok. It is famous all around the
world. Even though many Koreans of the younger
generation call it a fossil style of uncomfortable
dress, the majority of foreign people value it highly. To break
this prejudice and show the Korean traditional costume’s spirit,
the 2006 Global Costume Festival will be held on November 12
at the Grand Hilton Seoul Hotel.
This festival has been held annually since 2001. Participants
can see various traditional costumes of other countries and
different kinds of Korean Hanbok at the festival. Foreign
ambassadors and their spouses will wear their country’s own
traditional dress and walk on the catwalk. In between, the
fashion participants can also enjoy Korean traditional opera
performances such as “Pansori.”
Because this kind of festival can make one more familiar
with Korean culture, many embassies have been paying
attention. 54 embassies have already signed up to participate.
The one night long festival will start at 7 pm. Embassies
participating in the fashion show include Thailand, Japan,
Lebanon, India, Guatemala, Pakistan, Vietnam, Brazil,
Romania, Russia, Finland, Hungary, Canada, and Nigeria.
Since this is a very rare opportunity to enjoy more than 50
different kinds of Hanbok styles ranging from royal dress to
fusion contemporary, the festival will attract the attention of
many foreigners who are interested in Korean culture.
2006-11-1
2006.11.7 01:3 PM
Technology
페이지54
001 채널맥(3443-0701)
/ Vanco
Telecoms Broker
Launches New Service
V
custom design their data
anco, a company
network
to
their
marketing itself as a
requirements. The target
Virtual
Network
market for Vanco NetDirect
Operator (VNO), launched a
is a company that needs to
new service on October 17,
purchase
network
2006 called Vanco NetDirect.
infrastructure. This includes
NetDirect the a web portal
telecoms carriers and cable
that provides a large choice of
companies that want to
telecoms infrastructure for
extend their network reach to
designing, pricing, purchasing
produce more competitive
and
maintaining
data
solutions for their end user
networks in the US and
customers, and large
worldwide.
Wayne Churchill,
enterprises and systems
Vanco NetDirect allows
CEO of Vanco NetDirect
integrators who want
carriers, cable companies,
network solutions.
system integrators and large enterprises to
Vanco CEO Allen Timpany said,
purchase data networks from their
“There are only a very few carriers that
desktops. Data networks are broadband,
have global reach but almost everyone has
either DSL or cable, and private line
multinational customers. With Vanco
connections to the Internet and private
NetDirect telecoms providers can now
networks (MPLS), which enable
offer their customers additional network
companies to connect their computer
capability on a global scale at a
systems anywhere around the world.
competitive price.” He went on to
Vanco NetDirect enables customers to
emphasize that “This is about helping
carriers win more business and at better
margins, and about meeting the needs of
the largest enterprise customers in the
world.”
Wayne Churchill, CEO of Vanco
NetDirect, also stated that “To be able to
offer such comprehensive and competitive
solutions globally, you have to be
independent and deliver connectivity via
the local or regional providers of DIA and
MPLS.” The new CEO also said, “The
cost of networks for enterprise customers
is decreased and service quality is
improved by using high quality local
infrastructure with greater density than is
provided today by the handful of
international carriers. For example,
Vanco NetDirect can provide greater DSL
access to the Internet as well as MPLS
coverage than any other network provider
in the world.”
Vanco was listed on the main market
of the London Stock Exchange in 2001 as
VAN. Vanco does not own telecoms
Vanco’s web presence
Company marketing itself as a Virtual
Network Operator (VNO) launched a new
service on October 17, 2006
assets and therefore has the freedom to
recommend the most appropriate copper,
fiber, and wireless transmission on a
global basis. It provides enterprise clients,
directly or through partners, with costeffective optimized and fully managed
network solutions. Carriers can also
extend their off-net reach with a service
light offering through Vanco NetDirect.
Since flotation, Vanco has doubled
revenues every two years, and now has
total contracts valued at over half a billion
dollars. Its 18 year track record has an
annual revenue growth of 35% or more
per year while consistently making real
operating profits.
With solutions available in 230
countries and territories, Vanco is selected
by the world’s largest organizations to
provide network solutions. Its clients
include Accor Hotels, Asia Netcom,
AT&T, Avis Europe, Bell Canada, British
Airways, Comcast, Ford Motor Company,
IBM/Lloyds TSB, Siemens, telecoms
Italia Sparkle, Telus, Virgin Retails, and
XO Communications.
Through the Vanco network solution
clients get access to the greatest
geographic coverage available through a
single provider. Vanco offers flexibility
to customize and adapt the solution in line
with market changes, technical
developments and business priorities.
Vanco is recognized by the industry for
its financial success and world class
customer service delivery. A significant
proportion of its investment capital goes
into customer care which is reflected by
the awards that it has won, independent
market research and client retention that it
enjoys.
Vanco’s key difference is that it is not
tied into a specific technology or a single
network; instead it builds a network
solution that the client wants and which
gives them the best combination of
availability, performance and security.
Importantly from the client perspective,
Vanco has the flexibility to be able to
adapt the technology and carrier solutions
underpinning the network throughout the
lifetime of the agreement to support
changing client priorities and
requirements.
“There are only a
very few carriers
that have global
reach but almost
everyone has
multinational
customers. With
Vanco NetDirect
telecoms
providers can
now offer their
customers
additional
network
capability on a
global scale at a
competitive
price.”
2006-11-1
2006.11.7 01:3 PM
페이지56
001 채널맥(3443-0701)
GStar 2006
Game Exhibition
Korea@GStar 2006
Korea Shows Reputation
for Gaming Powerhouse
boost games to culture in earnest. In other
words, as games are developing from
simple amusements to an online game,
experts assess that games have seriously
developed to the point of being culture.
Moreover, mobile games or other
games also played a big role in that
Korean cultural flags flew all over
the world beyond home.
Nevertheless, many game
business circles don’t recognize that
games have taken root as culture, or a
normal part of our life although they
should take such an idea seriously.
Korea game industry must adapt to future
Korea@GStar 2006
participation degree is unexpectedly
low-pitched.
Achilles heel of low
participation
NCsoft pavilion in last year’s GStar
T
oday in the case of our Korean
game industry, game economic
efficiency and product value is
becoming higher. Also, cutting-edge
multimedia, network, dimension
graphic, and virtual reality technologies
are combined to make a new form of
entertainment industry.
Korea’s game industry, furthermore,
is continuously nurturing its location as
a global game power beyond a boundary
of the border and culture, forging a
second brilliant Hanryu, or Korean
Wave, following the previous drama
wave.
Turned away even at home
However, an international game show
-- GStar 2006 -- is being neglected at
home.
In spite of the global trend that
worldwide game shows such as E3 or
the Tokyo Game Show are scaling down
their participation and participating
game companies are decreasing from
tens of thousands of developers to
several thousand, Korea’s game show
GStar engaged the interest all over the
world by propelling on the contrary
scale enlargement.
Now that this international game
show is being held in Korea, an IT
power, for the second time and Korea’s
online games are taking advantage of
victory all over the world, this year’s
GStar has been a focus of world press.
The GStar Organizing Committee
made public in an interview with some
newspapers that last year’s GStar was
held with a scale of 156 participating
developers and 1,771 booths. But this
year’s GStar, which will last for four
days from November 9, will grow to 180
participating developers and 2,000
booths.
Despite this, game developers’
The background of such low-pitched
participation is speculated to be of
course Sea Story, the recent game
scandal.
However, there are also other
opinions too. Game developers say that
the enormous expenses for participating
in a game show like Gstar does not bring
income.
Experts accordingly point out that in
the case of Korea’s game industry,
opinions must be changed. They
comment:
“Such
speculative
entertainment like Sea Story cannot be
regarded in the same light as Culture
product-online games, the No.1 item of
Korea’s dutiful export.”
NCsoft’s Aion
It is true that there is still a conservative
point of view to classify the games
industry as a shady industry, though it is
dubbed as the best Hanryu product in the
world.
What’s more, the opinions of domestic
game business circles must also be
changed, experts point out.
Frankly speaking, the real reason scores
of game developers chose to not attend
GStar is due to profits. Arcade game
developers which accounted for 40% of
attendees last year will be absent almost
entirely. Not a few of staple online game
companies also won’t participate in this
year’s GStar.
Including Gravity that applied for 90
booths at first but canceled suddenly,
Actozsoft, NHN, CJ Internet, and Freechal
won’t take part in this show, according to
the Secretariat. In addition despite Sega
taking part with 50 booths, Blizzard
Entertainment and EA which gain
many profits at home will not.
Owing to such reason, game
business circles are not likely to
avoid society’s assessment of
corporate egotism.
Proposals for Korean game
development
Still Korean games have a long
way to go.
First, the point at issue in
Korea’s game industry must be
diagnosed as it is. Korea’s online
game-related technology attains
superiority in server and
networking, but is rather fragile in
graphic simulation.
Business circle experts point out:
“Joint efforts of the private and the
government must be unfolded urgently for
technology education and to secure homemade itself technology plus producing
special human strength.”
It is a reality that manpower is
exorbitantly short to back up our
reputation of a real game power, they note.
Government must
combat piracy
Webzen’s Kingdom of Warriors
Within the continuous growth of the
Korean game industry, online games
grew most rapidly.
The biggest role of online games was to
Secondly, Korean game developers
have been manufacturing their games with
young males and men between twenty and
thirty in mind, who respond to the latests
game trends quickly.
In recent years, however, many
different demographical groups are
starting to get accustomed to the Internet
and computers all over the world. Hence
more close analysis is necessary about
target years of age which can enjoy their
leisure time with games.
WeMade’s Chang Chun Online
Hanbitsoft’s Hell Gate London
Thirdly, continuous efforts must be
devoted to keep up the Hanryu (Korean
Wave), game, experts maintain.
Experts point out: “We are sympathetic
sufficiently with related institutions’ will
to enhance Korea game’s phase all over
the world by holding an international game
show like “GStar’. But what is more
urgent rather than this, is that the
government including MIC (the
Ministry of Information &
Communication) and MCT (the
Ministry of Culture & Tourism) is
to allow policy bills as well as
growth base to be consolidated so
that Korean game industry can
grow as it should.”
In that respect, the government’s
powerful confrontation is being
demanded with regard to Chinese
piracy of Korean games in that such
intellectual property right infringement is
fanning the fall of Korean online games.
2006-11-1
2006.11.7 01:3 PM
페이지58
001 채널맥(3443-0701)
Game Exhibition
Korea@GStar 2006
GStar 2006 Features
Online, Mobile Games
The following are excerpts from an interview with Kim Myung-gon, minister of Culture
and Tourism. -- Ed.
Q: We know that the MCT is making arrangements for GStar 2006 to be a successful international exhibition. Could you give us a brief explanation about the
government’s preparations and expectations for the event?
Game industry supported by governmental ministry
Korea@GStar 2006
Kim Myung-gon,
minister of Culture and Tourism
A: As you know, the GStar is an international game and game culture exhibition. Over
the past, most game exhibitions had to suffer from the problems of high costs and low
efficiency, because many game companies had caused an excessive competition in the PC
package and console game. In an effort to remove these problems, GStar 2006 will try to
show much difference from those existing game exhibitions, putting emphasis on the online
game, which is forming a new market. To this end, GStar Organization Committee has made
an ambitious plan that this international exhibition will induce 1,000 overseas buyers every
year during the display period. Also the export amount of the game industry is scheduled to
increase to US$300 million until 2010. Last year’s exports amounted to US$200 million.
Q: Notably, the MCT is taking measures to make the game industry healthy and
sound. Could you give us the reason why?
A: Unlike other content industries, the game industry includes the dysfunction such as the gambling
along with violence. For this reason, the gambling factor has to be excluded from the games. In an effort to
make the game industry and game culture more healthy and sound, the MIC has recently organized a
“Screening Committee for Grading Games.” From now on, the games that are expected to cause a
gambling problem will be exited out of market by applying a strict rule to the game. At the same time, the
government will encourage and promote the creation and supply of sound games, while developing the
policies to remove the dysfunction of excessive game addiction.
A general view of GStar 2005
G
Star is an international game and game culture
exhibition. This year GStar is to be held at the Korea
International Exhibition Center (KINTEX) in Ilsan,
Goyang-si, Gyeonggi Province from November 9 to 12. This
exhibition shows all kinds of advanced game-related
technologies and new game content. A large number of
businessmen and professionals who are related to the game
business will flock to the game show, trying to explore a new
international business market, capturing the trend of game
business, and seeking their new business strategies. On the
occasion of this international event, the Korea IT Times had
an interview with Kim Myung-gon, the minister of Culture
and Tourism (MCT), and asked about the MCT’s
preparations GStar, expectations on this international game
trade show, and the promotion policy of the game industry.
In addition to this, during the interview Minister Kim
explained the MCT’s efforts to make Korea’s game industry
and game culture healthier, especially putting emphasis on
removing the speculative gambling problem from the game
industry and game culture. The MCT’s special measures for
the soundness of the game industry seems to have been made
mainly because of the nationwide scandal related to the game
industry a couple of months ago.
In pursuit of globalizing
domestic game industry
This year about 226 companies from 30 countries are
expected to participate in the GStar 2006. These companies
will have business consultations while displaying various
game items in their booths. In the past, most game
exhibitions suffered from the problems of high costs and low
efficiency, because many game companies caused excessive
competition in the PC and console game market. In an effort
to remove these problems, GStar 2006 will try to show
differences from those existing game exhibitions, putting an
emphasis on online games, which is forming a new market.
To this end, GStar Organization Committee has made an
ambitious goal that this international exhibition will induce at
least 1,000 overseas buyers every year during the display
period. Also the export amount of game industry is
scheduled to increase to US$300 million until 2010. Last
year’s exports stood at US$200 million.
GStar becomes Korea’s typical cultural
event
GStar is not an event of the game industry alone, but it
covers a variety of cultural events. It includes a game music
concert, a B-Boy performance, a band performance, a gamers’
party and a game character fashion show along with many
interesting sights. The Hall of Game History will show how
games have changed with the passage of time, providing a
cultural space for visitors to experience a game. In order to
share information on the game industry and game culture, the
international conference is to be held which will contribute to
the development of the domestic game industry. When GStar
2006 is over the MCT will review this event and hear the
opinions of the game industry, so that they can improve GStar
next year.
Supporting measures to be given
for arcade and video games
Korea’s online games are taking the lead in the world online
market with a market share of 25%. Also, mobile games rank
third in the global market. But in the case of video and arcade
games whose market is much larger in the global game market,
Korea is in its infancy. Therefore, the government feels a strong
need to support arcade and video games, so the MCT is taking
supporting measures. The Korean government has included the
cultural content industry in the category of the new growth
engine industry. The game industry belongs to the cultural
contents industry. For this reason, the government will continue
to support the cultural industry. As a result of these efforts, the
industry is showing steady growth. The Korean Wave is
symbolic of our successful endeavor.
Screening committee for grading games
After expressing the government’s willingness to support the
game industry, Minister Kim especially pointed out the
importance of the soundness of game industry and game culture.
He has explained the MCT’s measures and policy directions as
follows. A game is the combination product of culture and
industry. Not only online games but also mobile games and
arcade games are combined with cultural content and advanced
IT industry. This means that the game industry has great
potential.
However, unlike other content industries, the game industry
includes dysfunctional behaviors such as gambling and violence.
For this reason, the gambling factor has to be excluded from
games. In an effort to make the game industry and game culture
more healthy and sound, the MIC has recently organized a
Screening Committee for Grading Games. From now on the
games that are expected to cause a gambling problem will be
thrown out of market by applying a strict rule to the games. At
the same time, the government will encourage and promote the
creation and supply of sound games, developing policies to
remove the dysfunction of excessive game addiction.
2006-11-1
2006.11.7 01:3 PM
페이지60
001 채널맥(3443-0701)
Game Exhibition
Korea@GStar 2006
GStar to Attract Ten Thousand
Foreign Publishers by 2010
The following are excerpts from an interview with Hong Ki-wha,
chairman of the GStar organizing committee and president of KOTRA -Ed.
Q: What is the focal point and differentiated content of GStar
2006 compared with the previous year’s game show?
Korea@GStar 2006
A: The 1st GStar held last year was an exhibition that we could look for
the vision and possibility of the global game show. Meanwhile, the GStar
2006 will offer an important chance to firm up its position as a global game
show.
It is also important for us to develop the GStar 2006 as an exhibition
that all visitors can feel and experience the game-related industries,
including online game, video, mobile and arcade.
To organize an upgraded game exhibition in terms of both quality and
quantity, we also expanded the exhibition space by 60 percent from the
previous year by leasing the whole KINTEX boasting of the 53,541 square
meters of space.
Plans to increase foreign buyers by 1,000 every year
G
Star aims at attracting 10,000 foreign publishers by
2010 by increasing the number of foreign buyers by
1,000 every year, Hong Ki-wha, chairman of the GStar
organizing committee, said.
At the same time, GStar plans to increase the export
consultation amount to US$300 million in 2010 from
US$200 million attained in the GStar 2005, he said.
Noting that existing game shows brought about high
expenses and low efficiency owing to excessive competition
of PC packages and console games, Hong said that the GStar
committee will push for actual business output in the game
exhibition industry by building new themes in the online
game field, which started to grow recently.
He also said that the committee will expand various
events supporting business, including export consultation
meetings and conferences during the GStar 2006 period.
The most important thing to make GStar 2006 a globallevel game show is to attract world-famous foreign
companies through active overseas marketing, Hong said.
In an interview with Korea IT Times Hong, who is also
president of KOTRA, said: “The committee is going all-out
to attract the world’s top-tier game companies and invite
global buyers to the GStar 2006, which will be held at Korea
International Exhibition Center (KINTEX) in Goyang City,
Gyeonggi Province on November 9-12.”
The Ministry of Culture and Tourism (MCT) and the
Ministry of Information and Communication (MIC) jointly
support the international game show, organized by the GStar
organizing committee.
Over 150 domestic and foreign game companies will
introduce their new products and technologies at 2,000
booths at KINTEX during the GStar 2006 period.
Meanwhile, about 160,000 people including government
officials, executives, staff and experts in the game industry
are expected to visit the exhibition to be held on a 53,541
square meter lot.
“The GStar 2005, which was held at the KINTEX on Nov.
10-13 last year, focused on maximizing exhibition effects by
gathering various kinds of existing game shows to one place.
However, the GStar 2006 is aimed at bolstering its
international competitiveness through global marketing and
growing up to one of the world’s top three game shows,” he
explained.
Asked about the future marketing direction for the GStar
2006, Hong remarked that Korea’s hosting of the show is a
very good decision to strengthen the international
competitiveness of the domestic game industry.
Noting that the GStar 2006 is the world’s biggest game
show, he continued: “It indicates that Korea’s online game
industry has been growing up at a rapid pace and expanding
its great influence over the global game market.”
The KINTEX can accommodate about 2,000 booths on a
54,700 square meters of land, much bigger than the 30,000
square meters of space for Tokyo’s TGS and 50,000 square
meters of E3 in Los Angeles.
On the committee’s marketing strategy to attract keen
interest from world-famous game companies, the committee
chairman said: “I think business to business is aimed at
establishing close networks between companies. We will
exert best efforts to establish a large-scale exhibition hall
armed with state-of-the-art facilities where foreign buyers
can attain exact information and engage in business
consultations with domestic game makers in an amicable
climate.”
“In a nutshell, we will prepare for a marketplace in Korea
through which the GStar can secure its firm position as the
world’s top-level game show,” he continued, adding that the
organizing committee will make an in-depth analysis of
applicants to the GStar 2006 and map out a proper PR
strategy.
On the polarization of the domestic game industry, Hong
explained: “Not only large game makers such as Nexon but
also small and financially weak game companies are required
to participate in the GStar 2006 in order to beef up their
international competitiveness. It is the only way for the
nation’s game industry to bolster the driving force and
advance into profitable overseas markets.
“To help small and medium-sized game companies
introduce their products more effectively to foreign buyers,
we plan to provide them with a center place of the exhibition
hall, while allotting the edge of the hall to large game
companies,” he explained.
Hong Ki-wha,
chairman of the GStar organizing
committee and president of KOTRA
Q: Would you comment on the growth direction that the GStar
has been actively pushing ahead?
A: Through the hosting of the second GStar exhibition this year with
226 companies from 30 countries in attendance, we plan to build new
theme of Korea’s game show, centering on online games.
Considering the gradually declining trend of the global game exhibition
industry, we plan to foster the GStar as an international game show
creating actual business effects.
Q: What do you think is the main subject of the domestic game
industry for international cooperation?
A: As the game industry is the entertainment one, only those companies
that can show creative and artisan spirit are able to make a success in the
industry.
In the future, the networking-based online game industry is expected to
grow at a fast face. As a result, Korea’s online game makers should play a
leading role in the world’s online game industry.
Hong also stressed the importance of matchmaking overseas
buyers and domestic game companies with high international
competitiveness.
“Related to this, the GStar organizing committee will
actively arrange for matchmaking between overseas buyers and
domestic game companies and implement various methods to
help the GStar enter the ranks of the world’s big three game
shows,” said Hong.
“We will also exert best efforts to let GStar greatly contribute
to enhancing competitiveness of the nation by providing ITrelated companies with advanced technology and know-how,”
he continued.
Recognizing the importance of overseas advancement by
such culture industries as games and broadcasting, KOTRA has
been strengthening its assistance for overseas marketing of
cultural industry since 2005.
Related to this, KOTRA has held export consultation
meetings every year coordinated with such world-famous game
exhibitions as E3, TGS and China Joy.
KOTRA also plans to hold export road shows to explore new
game markets in Southeast Asia under the close cooperation
with relevant institutions.
At the same time, the committee will make best efforts to
develop GStar into a symbolic exhibition activating two-way
communication between game makers and users.
2006-11-1
2006.11.7 01:4 PM
페이지62
001 채널맥(3443-0701)
Game Exhibition
NCsoft
Heaven, Hell, and Dragons
New game Aion to include lots of interesting features
Korea@GStar 2006
N
In the Aion world, players must have ability
Csoft, a leader of the world’s online game
beyond simple and repeated battles through
trends, will participate in GStar 2006 to be
fights with various monsters. They must have a
held at the Korea International Exhibition
sense of connection and unflinching team spirit.
Center (KINTEX) in Goyang City, Gyeonggi
They will be also able to experience dynamic
Province on November 9 to 12 with its new
PvP at the “Abyss,” the route connecting the
games — SP JAM, Aion and Atrix.
two antagonistic camps.
NCsoft is planning to introduce its massively
The players’ experience accumulated
multiplayer online role-playing game
through such conflicts is to be connected with
(MMORPG) Aion to domestic gamers at GStar
the fight against the dragon tribe that threatens
2006. Aion attracted much acclaim and praise
the existence of the overall world.
from the press at home and abroad at E3, the
Accordingly, players can experience rapidly
world’s biggest game exhibition held last May.
changing play styles. Through such an organic
At GStar 2006, NCsoft will introduce a
NCsoft CEO
connection between PvP and PvE, Aion is sugdemonstration version of Aion, The Tower of
Kim Tack-jin
gesting a completion type of the comprehensive
Eternity. NCsoft game developers have prepared
conflict structure by supplementing shortcomings possessed
for the pilot test of Aion at their own studio in Korea. NCsoft
by individual systems and generating synergy effects of merhas succeeded in popularizing the online game and upgrading
its.
games to be better than movies through Lineage, which sucAion focuses on the fundamental fun of the RPG. It aims
cessfully combined a game and the Internet, and Lineage 2,
at helping players feel fun and a sense of achievement at
which set a milestone for a movie-like game like movie.
every moment in the course of growing characters and advenUnder the NCsoft’s development philosophy, “Game is
turing in the world. “To this end, NCsoft rechecked basic conNext Cinema,” Aion has set the next task to be challenged by
tent, including battles, items, skills and level designs, and has
MMORPGs as interaction. It is a core keyword of online
tried to deliver only fun to Aion players,” said a spokesman of
games that other cultural genres cannot achieve.
the company. Aion is designed to implement the top-level 3D
Aion will introduce new cultural content worlds with
graphics that maximize the reality of imagination. Its biggest
which players can positively make their own stories. Aion, a
purpose is to show the attractive fantasy world to players in a
completion-type MMORPG that emphasizes interaction, conrealistic image.
sists of comprehensive conflict structures, called the Heavens,
NCsoft will make sincere efforts to produce Aion’s
Devildom and Dragon World. Meanwhile, players will be
unique characteristics by refraining from dramatic expression
able to experience active exchanges with Aion’s world based
trends of games recently introduced and instead seeking a
on strategic battles that they have never experienced before.
new realistic dramatic version.
All activities of players become the strength to change the
Aion is the work dealing with tribes pursuing different
world and the changed world affects the players again. Such
goals in a world and unknown creatures countering them.
a new type of interaction will help players experience the
The Aion’s world is divided into the two camps — the
vision of the next cinema that makes its own stories.
heavens and the devildom. They form the two sides for
Aion’s world implements interaction that has a compreplayers with the Tower of Eternity, Aion, at the center. In
hensive conflict structure of man to environment and man to
addition, there is a dragon world that antagonizes both the
man. Through the comprehensive conflict structure, called
heavens and the devildom.
the PvPvE, Aion players can actively interchange, grow and
In the meantime, ATrix developed by Galaxy Gate and
develop with the environment. They can also experience
published by NCsoft is a 3D casual online action game
numerous feelings through various relations of man to man,
targeted at children aged between 10 and 15. Gamers can
called the flower of online games.
enjoy fully 3D manufactured cinematic slash fighting actions.
At GStar 2006, NCsoft will introduce a demo version of
ATrix and carry out the Open Beta Test (OBT) for the game
within this year, the spokesman said.
ATrix boasts of such merits as movie camera-like
presentation, background events that destroy the background
and large-scale fights in which a maximum of 32 users can
participate simultaneously.
The biggest characteristics of ATrix are adventurous
amusement to solve given objectives one by one and large-scale
wars with other gamers.
Meanwhile, SP JAM is a casual snowboard racing game that
helps gamers feel a tense atmosphere through racy speed, a
dizzy sense of gravity and luxurious tricks. Gamers also can
express their own style through stylish dresses and various
background music tracks.
At GStar 2006, NCsoft will exhibit the game play video of
ATrix and carry out the OBT for the game during this winter
vacation period.
NCsoft, which aims at providing domestic gamers with fresh
amusement through products-oriented exhibition, designed its
40 booths at GStar 2006 in such a way as to help gamers
concentrate on games by removing factors other than games
from the design.
The concept of NCsoft booths is a modern, polished art
gallery. In the booths, gamers are able to virtually experience
the online world.
NCsoft has provided gamers with various popular games,
including Lineage, Lineage II, City of Heros, Guild Wars, Auto
Assault and Tabula Rasa through its online presence, PlayNC.
NCsoft participated in the ASEM 2006 held in Helsinki,
Finland on September 10 and 11 with its two most popular
games, Guild Wars and Lineage II.
“Ahead of the world market debut of Nightfall, the third
chapter of Guild Wars, NCsoft held the first closed test at home
at the end of July,” a spokesman said.
Guild Wars Nightfall, the next game in the award-winning
and critically acclaimed Guild Wars series, has become
available in stores worldwide last month.
In the third Guild Wars chapter, players must fight to hold
back the night as a mad ruler attempts to free an outcast god and
bring darkness to the continent of Elona.
However, players will not fight alone. Guild Wars Nightfall
introduces new customizable Heroes who level up, follow
player instructions in combat, and use skills and equipment of
the player’s choosing.
These Heroes will follow the player through savage coasts,
ancient monuments, and poisonous deserts during an epic story
that spans 20 missions and hundreds of quests.
For the ultimate one-on-one challenge, competitive players
can choose to enter the new Hero versus Hero Battles, where
they group with a custom team of Heroes and fight against other
players from around the world.
NCsoft’s Aion
2006-11-1
2006.11.7 01:4 PM
페이지64
001 채널맥(3443-0701)
Game Exhibition
Webzen
Taking Next-generation Games
to International Audience
WeMade Entertainment
Award-Winning WeMade
Entertainment Plans to Expand
Korea@GStar 2006
Continuous public favor in overseas market
Online game giant to capitalize on success
graphics and gameplay system with
opular multiplayer games such as
priority given to battlezones.
Huxley, Kingdom of Warriors, and
Following the company’s production
Soul of the Ultimate Nation will be
of MU online, Kingdom of Warriors is
shown at this year’s GStar 2006 starting
also occupying an important position as
November 9 at the Korea International
a strategic game to capture the Chinese
Exhibition Center (KINTEX), Goyang,
market. It has been developed locally
Korea. Webzen (www.webzen.com), the
and is optimized for Chinese gamers.
publisher of these games, is likely to
While the Asian market including
show off its global strategy which it will
China is filled with feverish expectations
use to take off as an international
about SUN, Webzen’s Huxley title is
publisher.
being intensively marketed in the North
Webzen’s Huxley is rumored to be a
American market, assesses Kim.
game which takes the MMOFPS genre to
As a global project which is being
the next generation. Through its
produced for the North American and
demonstration at GStar 2006, attendees
European markets according to
will be able to experience the nextWebzen’s global strategy, this Huxley is
generation FPS Huxley firsthand. It is
an MMOFPS game that combines the
being developed using the Unreal Engine
appeal of an online game with that of a
3, according to CEO/president Kim Namdeeply-based FPS genre.
ju of Webzen.
Kingdom of Warriors was introduced
Kingdom of Warriors
first in the Chinese and Taiwanese
Global differentiation
markets. The game gained explosive
strategy
interest as a teenage expectation game through game show
Concerning Webzen’s differentiation strategy in world
China Joy held in Shanghai, China on July this year.
market, the CEO outlines four global strategies as follows.
Webzen plans to allow the audience to play Kingdom of
First off, Webzen is eager to secure overseas strongholds
Warriors with 6 different characters including a warrior and
by establishing branch companies. Since establishing the
an assassin. The Korean language version will be open to the
company’s local corporation in Taiwan in July 2004, Webzen
public for the first time at this forthcoming GStar.
will continue by opening affiliated companies in China,
In the case of the company’s product Soul of the Ultimate
Taiwan, and the United States.
Nation, the game is garnering continuous public favor in the
Webzen’s second global strategy is to optimize for local
overseas market.
markets by means of local development as well as overseas
developer scouting, according to Kim.
Thirdly, Webzen is a front runner in platform
Conspicuous globalization
diversification front runner as the company propels its
Webzen is becoming well known for its globalization. In
strategy to expand its market to the whole world. It plans to
conjunction with this, CEO Kim says: “Webzen’s MU online
escape from home as well as Asia by expanding into
is a so-called global game with which 56 million people are
platform markets such as the X-Box 360 and PS3.
enjoying globally.”
Webzen encourages global content publishing. The
Webzen invested a total of 10 billion won (US$10.53
company focuses on overseas blockbuster publishing too
million) over three years into Soul of the Ultimate Nation
with a goal of worldwide service on the foundation of
(SUN). The game is expected to pave the way for a new
experience of Mu Online.
trend in the domestic MMORPG market, presenting excellent
market greatly, said Park.
eMade Entertainment Co. Ltd. has been
WeMade is also the industry leader in onwinning high recognition in the global
line game server and network technologies
market for its excellent online games,
such as database design, database
Park Kwan-ho, CEO of the online game
management, network design and optimization
development company said.
and information architecture. Their methods
In particular, the game Legend of Mir 2
have been tested by millions of users.
developed and serviced by WeMade has
WeMade’s servers are well known for
amazingly recorded 750,000 concurrent users
stability, security and performance.
and 200 million accumulated users in China
Backed by a rich pool of highly
since November 2001 when its service first
experienced and talented developers, there are
started.
four new game titles that are planned to be
WeMade is an online game developer and
released under the WeMade banner in the near
publisher established in February 2000, when
future. They are Changchun Online, Chungin,
the Korean on-line game industry was still at
Kailas and NED Online.
its infancy.
In the meantime, WeMade plans to particThe Legend of Mir 2 has also been gaining
ipate in the Game Show and Trade, All-Round
high popularity among users in Taiwan, Italy
(G Star 2006), which will be held at the Korea
and North America, said Park.
International Exhibition Center (KINTEX) in
The Legend of Mir 2 is truly the pride of 2D
Goyang City, Gyeonggi Province on
Massively Multiplayer Online Role Playing
November 9 to 12. The slogan of G Star 2006
Games (MMORPGs). Based on an enchanting
is “coming up, a super star in the global game
oriental view of the world, it has opened up
market.”
whole new possibilities in the online game
WeMade has already secured 60 booths at
industry where only north European myths and
Changchun Online
G Star 2006 to publicize the four online games
fantasies were prevailing.
Changchun Online, Chungin, Kailas and NED
In the Legend of Mir, players can enjoy
Online. Game demonstrations will be possible for Changchun
more than just killing and dying. In the game users can actively
Online and Chungin and new video presentations will be made
choose to cooperate, compete, ally and negotiate with other
for Kailas and NED Online, he said.
players in catching monsters and earning gold.
Through the international game show, WeMade plans to
The mind-blowing storyline of the game adds more thrills
reveal new videos of the online games and provide users with a
and excitement. In the world of Mir, players have to deal with
variety of game events that they are sure to enjoy, Park said.
various people and circumstances, experiencing joy, pain,
On the other hand, WeMade is planning to expand its compafrustration and all other emotions just like in the real world.
ny into other businesses such as mobile games, character busiIn the course of exploring the world of Mir, users naturally
ness, publication, and digital services.
realize desirable social values such as goodness and
WeMade is moving forward to the future, providing joy to
righteousness.
people around the world and uniting them under a common purLegend of Mir 3, the promising sequel to Mir 2, has recorded
pose, online games. Commenting that the original purpose and
400,000 concurrent users. It spread its own brand name as a
meaning of online game is amusement, CEO Park said, “A game
legendary Korean online game in 2003.
developer is the person to create amusement. My philosophy
Since the Legend of Mir succeeded in gaining high
about a game is to produce an interesting game that users can
popularity in China, Korean game makers are actively entering
enjoy with the game itself.”
the Chinese market. This affects the Chinese online game
P
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/ NHN
NHN Corp to open new services
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Open new vistas to the IT World.
A reliable partner for your business success.
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Through a combination of breaking news and
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needs.
n No. Seou
to users by bolstering its
Since 2003, NHN has
Web document retrieval
been also engaging in a
functions,
including
joint study for retrieval
bulletin board and blog
technology with the
searches.
Center for Intelligent
As the object of users’
Information Retrieval at
information exchange is
the University of
changing from text to
Massachusetts Amherst,
multimedia, Naver is also
said Choi.
offering a video search
Thanks to its active
service after securing 1.2
R&D investment, NHN
million videos, the
entered the ranks of the
biggest volume in Korea,
world’s
top
10
he said.
companies in the number
Choi Hwi-young,
Hangame is planning
of patent applications
CEO of NHN Corp
to expand its sports and
under
the
2005
casual game lineup, including the casual
international patent cooperation pact. It
shares the top 10 list along with Samsung racing game Skid Rush, the football
Electronics, LG Electronics and LG game Art Soccer, the snowboard racing
Chem. NHN achieved a total of 1,667 game Riding Star.
In the meantime, NHN USA opened
patents.
Commenting that the core services of www.ijji.com, a game portal service, in
NHN are retrieval and games, CEO Choi the American market aimed at the
said that the company will concentrate its English-speaking market.
The U.S.-based game portal service is
energy on developing retrieval and game
equipped with a lineup of about 40
sectors in the future.
To provide Hangul, or Korean arcade, Web board and flash games,
alphabet, users with exact and in-depth including such casual games as
information, NHN Gunbound and Golfking, the American
will strengthen its board game Sabotage, and the US service
business tie-up with Switcheroo.
Ijji.com, which started open beta on
public institutions
and groups while July 7, has been highly praised by
p e r s i s t e n t l y American gamers thanks to the fact that
supplementing professional material DB, they can enjoy high-quality games with
others in real time online.
he said.
NHN also advanced into the Japanese
Naver, which possesses its own search
game portal market in September 2000.
engine, is also making all-out efforts to
improve search quality through the NHN Japan is planning to advance into
the search service from early next year in
retrieval technology research center.
In the latter half of 2006, Naver plans an attempt to expand its business area in
to offer more diversified retrieval results the Japanese market.
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5 Fl, Hyun
HN Corp enjoyed its best business
performance in the second quarter
of 2006, posting 132.9 billion won
(US$138.6 million) in sales, 50.6 billion
won (US$52.8 million) in operating
profit and 32.4 billion won (US$33.8
million) in net profit.
The favorable results were mainly
attributable to the Naver retrieval service
gaining high popularity among domestic
users, a steady rise in retrieval and
banner advertisements, and a high
growth in the e-commerce sector, Choi
Hwi-young, CEO of NHN Corp said.
The game industry, which was
somewhat sluggish due to seasonal
factors including the 2006 World Cup, is
also expected to recover its strength. It
will be boosted by upgraded Web board
games and the launch of the Dungeon
and Fighter channeling service, he said.
If this trend continues, NHN will
attain its 2006 target of 540 billion won
(US$572 million) in sales and 205
billion won (US$217 million) in
operating profits as scheduled, said Choi.
NHN has placed top priority on R&D
projects with some 60 percent of its total
employees engaging
in them.
In
particular,
NHN appointed Dr.
Lee Joon-ho, a top
retrieval
engine
researcher, as chief technology officer
(CTO) and succeeded in possessing
effective development systems in the
contents service, technology study, game
Web service, retrieval service,
information infrastructure, database,
game platform and community service
sectors.
Want to know all about IT
trends in Korea and the world?
10~11)
iv.
eoul Un62~64)
/ NamS
Opinion nference (pages 16~19)
IT 21 Co rection (pages (pages 24~25)
33)
Di
Policy rea / APCICT ages (pages 26~
Open Kotulatory Mess
Congra
o
Mixing Fun Games With Serious Data
Retrieval Technology Makes Good Business
pagenfe
s 6 ren
2~6 ce
4)
Company Profile
001 채널맥(3443-0701)
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2006.11.7 01:4 PM
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2006-11-1
2006.11.7 01:4 PM
Academia
페이지68
001 채널맥(3443-0701)
/ IFUP-ICT
Educating IT Manpower for the 21st Century
L
ast October 12 to 14, the
Information
and
Communication
University (ICU) hosted the
International Forum for
Presidents on Information and
Communication Technology
Education 2006 (IFUP-ICT
2006). This forum was held
under the theme of “Educating IT Manpower for the 21st
Century - the IT Talent that
the Global Industry Desires.”
Several parallel sessions
were prepared to solidify the
relationship between academia and industry in the IT
field and to introduce the state
of the art of information
technology in Korea.
ICU is the only participating Korean university in this eminent
forum. Even though ICU doesn’t have a
long history and high name value in Korea,
the university’s distinguished systems —
such as its efficient three-semester system,
early graduation system and English-only
lectures — attract the attention of many
other countries. There are 146 other members of this forum, representatives from ITrelated organizations in education,
research, and industry. Notable were universities from 25 different countries,
including the University of Colorado Colorado Springs, Stevens Institute of
Technology, Queen Mary University of
London, the International Institute of IT Delhi.
During the second forum 150 participants from all around the world discussed
efficient ways to improve the quality of IT
education and presented their university’s
advanced IT education system. Especially,
ICU introduced Korea’s state of the art
WiBro and Mobile technologies which
MIT Professor Nicholas Negroponte
have been steadily developing with an
average rate of 19% over the last 10 years.
IFUP-ICT 2006 started with a notable
opening ceremony. Prominent IT leaders
delivered their addresses at this forum.
Not only did Microsoft founder and
Chairman Bill Gates and Google’s Vice
President Allan Eustace speak but also
Kim Shin-bae, CEO of SK Telecom and
D.P. Kothari, ex-president of IIT gave their
key note speeches at this forum.
Especially interesting was MIT professor Nicholas Negroponte, a scholar who
wrote the famous bestseller Being Digital.
This book has been translated into 40 languages and published around the world.
Actually, he was scheduled to speak at the
opening ceremony but due to his heavy
schedule he could not attend. However, in
the late afternoon he delivered an impressive address for participants who waited
for his lecture.
He commented on company growth by
saying: “Google was born at a small labo-
ratory
in
Stanford
University as a small fry,
but it has been developing
towards world-class global
Internet
company.
Universities are an important consumer and producer
of high quality information.
They also fill a critical role
in educating tomorrow’s
technology and business
leaders.
Additionally
Google will select outstanding students and elite people
through Internship and Coop programs in the amicable
relationship with Korean
universities.”
Remarkable foreign
speakers who participated in
this forum included the exPresident of IIT Kothari, President of
Deutsche Telekom Fachhochschule
Leipzig Volkmar Bruckner and President
of St. Petersburg State University of
Telecommunication Alexander Gogol. On
the other hand, domestic speakers included
the President of POSTECH Park Chan-mo,
the Head of International Cooperation
Agency for Korea IT (ICA) Kim Sun-bae,
and the President of IBM Korea Lee Hwisung.
Visitors were especially impressed by
the advanced technologies of ETRI and
Nano Fab.
During the forum, President of ICU
Huh Un-na commented: “We hold this
forum to strength relationship between IT
leader industry and university all over the
world. And we’ll put more significant on
the role of university and institute where
educating 21 century’s IT leaders. And
also we expect that through this forum we
could find effective ways to promote and
advance global IT industry.”
they’re good, they’re better,
hardworking, sincere, honest, as I said.
The following are experts from an
interview with D.P. Kothari, expresident of India Institute of
Technology . --Ed.
Q: Please tell me your image of
ICU. What’s your impression about
this forum?
Q: What do you think is the most
essential element for qualified IT
professionals?
A: They’re always sincere, honest,
hardworking. They know their job as
well, if not better, than anybody else.
This is what is their essential element.
And since they are not from the west,
they want to make Asia also. And this is
called, it is an Asian century. So Asia
will be in the forefront in this century.
And the reason will be IT professionals
in Asia.
Well 200 universities, 1400
engineering colleges, and we are called
technologist, best technology and
scientific manpower in the world. And
our best bet is export of professionals.
Everywhere - name a country - you will
find an Indian IT professional working
there, including South Korea. Only
yesterday one professional joined this
inner city, Uni city area. He’s from
Bombay. So you’ll find the education
system in India is as good as the best in
US. Especially the IITs, they are the
band men that are known all over the
world. And even when I was the
director at IIT Delhi in 2005 all the 7
directors of 7 IITs were taken to Capital
Hill in USA and were given standing
ovations for the contributions of IIT
professionals to the US economy. They
have declared in fact an IIT day, IIT
week and IIT month in various states of
the US. And we have 30,000 IIT Delhi
alumni throughout the world who are
serving as the flag-bearers, ambassadors
D.P. Kothari, ex-president
of India Institute of Technology
of India. And they are taking it there to
being best by 2020.
Q: How has the hiring style of IT
companies in acquiring IT professionals changing compared to
before?
A: Well the IT professionals are
important wherever they are, from
wherever they are holding their degrees.
The only thing is their salaries has gone
up. Their demand has gone up as India
has become the IT capital of the world,
IT hub. Bangalore, Hyderabad,
Mumbai, Pune, Delhi, Noida, Junagadh,
all these places are called IT hubs. And
well the style of hiring is the same, they
go for the best, anywhere in the world.
So you want to purchase anything, you’ll
get the best brand with minimum
salaries. Since this is an Asian country,
and we are not as rich as others, so even
with less salary you can get them. Like
an Indian professor was appointed
US$70,000 per annum salary. Perhaps if
it had been MIT or the US it would have
got US$100,000. So they’re cheap,
A: I have found the ICU excellent,
also this university’s president excellent.
She was recently given an award by an
Indian organization in Bombay. I was to
attend that, unfortunately I could not
attend, I was not well. I’ve found it a
unique institution. Not many places in
the world you have a Uni city like ICU.
And I’m sure it will go places, it will be
one day recognized as your president
says, by 2012, as the best in the world,
by 2007 the best in Asia.
Q: Can I get your advice regarding the way to improve Korea’s IT
industry and educational environment, and to cultivate talented global IT leaders? What kind of efforts
are required, especially in Asian
countries such as Japan or Korea?
A: The improvement never stops.
Whether its individual, whether its an
institution, whether it is an industry,
whether it is a country.
The
improvement goes on until the last bit of
one’s life. So IT industry in Korea has
done a tremendous progress. There’s
always hope, you know, to do more, to
do better. I am sure the IT industry in
Korea will also do that. You will come
up equal to the very best in the world,
including India, the US, or Europe,
whatever. I think you are doing the job,
ICU is doing their job creating IT
manpower, which is a very important
resource. Who hired remain in Korea,
work for Korea, serve Korea. Don’t lose
them. Give them good salary, good
2006-11-1
2006.11.7 01:4 PM
페이지70
Country Report
001 채널맥(3443-0701)
/ Austria
Setting High Standards
In International Exchange
Comments on the occasion of Austria’s National Day
A
ustria makes a consistent contribution to
translating the principles of international
cooperation into practice: as host country to
the only UN headquarters within the European
Union, as President of the European Union in the
first semester of 2006, and as a venue for the
dialogue of religions and cultures.
Our bilateral political relations are free of problems and
bilateral economic relations are developing with an enormous
speed. Austria’s products, technologies and services enjoy a
very high reputation in the Republic of Korea and vice versa. In
the year 2005 Korean exports to Austria reached a new record
height of nearly 822 million Euros (US$1.03 billion), an
increase of 19.2%. Austrian imports to Korea also reached a
new record level of 471 million Euros (US$594 million), an
increase of 21.5%, bringing the total volume of trade to 1.293
billion Euros (US$1.63 billion). This makes the Republic of
Korea Austria’s 4th largest trading partner outside Europe.
The year 2006 has been marked by many important events
and projects which also had strong influences on the daily work
of the Austrian Embassy in Seoul. I would like to highlight
some of them:
Austria’s EU Presidency
in the first six months of 2006
The EU has a system of rotating presidencies every 6 months
and Austria held the Presidency of the EU in the first semester of
2006, from January 1st to June 30th, 2006.
Already in 1994 the Austrians had confirmed that they
believed in the idea of European integration: In the referendum
on EU membership held in June 1994 a clear majority of nearly
67% had voted in favour of Austria joining the EU. Austria
joined the European Union on January 1, 1995 along with
Sweden and Finland.
Through its EU membership Austria became part of a common market, thus becoming more attractive to countries both
inside and outside of the Union due to its location between
Eastern and Western Europe. These factors have opened up new
possibilities for both consumers and producers.
The positive economic effects should not by any means overshadow the political importance of the European integration
process. Today the European Union plays a crucial role in the
stability of the whole continent. In the past few
years it has become the main focus for most
European countries. With its continuation of the
integration process it is setting the direction of the
whole of Europe. More and more decisions concerning Europe’s future are made within EU institutions. EU membership allows Austria to bring
its specific concerns to bear on EU policy, to have an equal voice
in the decision-making process that will shape the future of both
Europe and Austria.
During Austria’s presidency in particular many citizens
gained a deeper insight into the EU’s work and recognised the
EU’s significance and positive prospects. The Austrian
Presidency had started its work with the aim of creating more
impetus, more confidence and more clarity for Europe. In her
summary of Austria’s EU presidency, Foreign Minister Plassnik
pointed out that this aim had been achieved. The so called
“Europe is listening” initiative was an important stimulus for
finding new ways of establishing contact with the citizen.
Practically an EU Presidency meant that Austria had to chair
all EU meetings for six months, such as the Head of States and
Government in Vienna. But it also chaired meetings in other
countries like Korea, for example on the level of EU
Ambassadors, EU Commercial Counsellors, and EU Political
Counsellors in Seoul. And when the Republic of Korea had official talks with the European Union it was again the Presidency
who chaired the meeting on the European side of the table. In
summary, it is fair to say that the level of European integration is
quite impressive. At the same time was quite a challenge for a
medium sized country to hold the EU Presidency.
During our Presidency, an official visit of the Austrian Dr.
Benita Ferrero-Waldner, Commissioner for External Relations
and Neighbourhood policy of the European Commission, took
place from 19 to 21 April. We had at the same time the Joint
Committee Meeting EU-Korea in Seoul on 19 June 2006.
Finland took over the presidency from Austria on 1 July
2006.
Mozart Year 2006
The year 2006 marks the 250th anniversary of Wolfgang
Amadeus Mozart, who was born in Salzburg on 27 January
1756. Austria has been and is honouring this musical genius with
a comprehensive calendar of events all over the
Former Korean Ambassador to
world. The Austrian Embassy in Seoul has been
Austria to become UN secretary
supporting and continues to support various
General
high-quality cultural projects, celebrating the
Austria warmly welcomed the appointment
Mozart Year 2006.
of Minister for Foreign Affairs Ban Ki-moon, a
Highlights among these events were 15 conformer Korean Ambassador to Vienna with
certs at the Sejong Center of Performing Arts in
close ties to Austria, as Secretary General of the
Seoul called The Complete Mozart Concertos.
United Nations. With its clear vote the UN
There was also a Birthday Concert for Mozart
General Assembly of 192 member nations
on 27 January 2006, his real and only birthday,
unanimously adopted the Security Council’s
at the Mozart Hall in Seoul. Professor Shin
recommendation of 9 October. As from January
Soo-jung organized those concerts. Also, a
2007 Ban Ki-moon will succeed Kofi Annan as
series of successful concerts of the well known
the 8th UN Secretary-General, the second Asian
Vienna Boys Choir were held in various cities
Secretary-General after Burma’s Sithy U Thant.
in Korea. Two concerts of the famous Vienna
The Federal President of the Republic of
Philharmonic Orchestra were also held in Seoul
Austria, Heinz Fischer and the Minister for
Ambassador Wilhelm Donko
in September.
Foreign Affairs Ursula Plassnik offered their
More events will come on this occasion in
sincere congratulations to the newly elected
the remaining weeks of this year: two more Mozart concerts at
Secretary-General immediately after the formal vote in the UN
the Sejong Center of Performing Arts on 14 November and 12
General Assembly: “In Ban Ki-moon the United Nations will
December. The opera The Magic Flute will be shown at the
have a Secretary-General who is intimately familiar with the
Busan Cultural Center from 12 to 14 November. Mozart’s opera
organisation. His long track record of experience and the excelBastian and Bastienne will be shown daily from November to 12
lent knowledge he has acquired through his work at the service
December at the Lotte World Art Theatre. And finally, the
of the United Nations will be of benefit to the UN and thus to us
Arnold Schoenberg Choir will perform in Seoul on 25
all. I am certain that with Ban Ki-moon at the helm of the UN in
November.
the coming years we will have another tireless advocate of a
Austria is well known in Korea as a country of classical
strong and efficient global community of states who will resmusic. And cultural policy is an important element of Austrian
olutely continue the ambitious fitness programme for the UN iniforeign policy. In international diplomacy, the communication of
tiated by Kofi Annan,” the Minister said.
the cultural achievements of a country plays an important role
“The latest events on the Korean peninsula and the threatenthat should not be underestimated. In Austria, foreign policy and
ing scenario associated with North Korea’s nuclear weapons test
culture have always been closely intertwined. This is why
have made us very clearly aware how important the United
Austria is regarded throughout the world as a major cultural
Nations is to world peace. Thanks to his background and his
nation, Austrian State Secretary Hans Winkler rightly emphaexperience within the framework of the six-party talks, Ban Kisised at this year’s International Cultural Policy Conference.
moon is equipped with a particular sensibility for this unresolved
Austria’s EU Presidency deliberately devoted a great deal of
conflict,” stated the Minister for Foreign Affairs Ursula Plassnik.
attention to the cultural dimension of the European project. On
“I am especially pleased that in Ban Ki-moon we have a
account of its own history and tradition, it is self-evident to
friend and connoisseur of Austria who has personal experience
Austria that Europe also has to progress as a project of cultural
of the UN headquarters in Vienna and is aware of the latter’s
diversity. What is at issue is the public opinion in other counimportance. He is thus a guarantor for further intensification of
tries, which we want to reach beyond the scope of traditional
the relations between the United Nations and Vienna,” emphadiplomacy. The oft-cited crisis of European integration is rightly
sised the Foreign Minister, adding that she had invited the new
attributed not only to political and economic problems and difUN Secretary-General to Vienna in her letter of congratulation
ferences; on the contrary, in many cases better understanding of
on his appointment.
the culture of another state may be important.
From 1998 to 2000 Ban Ki-moon had been the South Korean
As far as international resonance is concerned, Austria doubtAmbassador to Austria. In November 2001 he had been awarded
less has certain advantages as a cultural location which have
the Grand Decoration of Honour in Gold for Services to the
become a trademark of our country. We only have to think of the
Republic of Austria in recognition of his contribution to
Vienna Bys Choir, the Vienna Philharmonic Orchestra, the New
strengthening the bilateral relations between the two countries,
Year’s Concert, the Linz-based Ars Electronica or the many
but also and above all for his committed work in the international
summer festivals, to mention just a few examples.
organisations at the UN headquarters in Vienna. During his time
Unfortunately, there are also many questions of international
in Vienna he had also given expression to his enthusiasm for culpolicy that cannot be resolved by cultural exchange alone.
ture by founding an Austrian-South Korean philharmonic
orchestra.
2006-11-1
2006.11.7 01:4 PM
페이지72
001 채널맥(3443-0701)
People & Events
Roh Jun-hyong
attends World
IT Summit
Roh Jun-hyung, Ministry
of
Information
and
Communication visits Italy to
attend the World IT Summit.
He is also scheduled to deliver
Roh Jun-hyong
his opening speech at the 7th
World e-Government Forum
on the subject of How Information Communication
Telecommunication Has Effects on Korean Society.
Lee Jang-moo
attends the 7th
BESETOHA
conference
Lee Jang-moo, President
of Seoul National University,
visited Vietnam Hanoi
National University to attend
Lee Jang-moo
the 7th BESETOHA conference. BESETHOA is co-prepared by four major universities in East Asia including Beijing University, Tokyo
University and Hanoi University to strengthen an amicable relationship among them and achieve sustainable academic development in the region.
KRX to cooperate with Vietnam
Korea Exchange (KRX) exchanged a Memorandum of
Understanding with the Vietnam National Securities
Committee for the purpose of Vietnamese enterprise listing cooperation at home on October 26.
Samsung SDI to
propel PDP #4 line
Samsung SDI president
Kim Soon-taek held a celebration of the completion of the
framework regarding the company’s #4 PDP line in its
Busan factory on November
1.
Kim Soon-taek
Former MIC Minister
Established IT
Investment Firm
Former MIC minister Chin
Dae-je established a special
investment firm, SIC, that
focuses on corporate investment.
The IT investment firm
Chin Dae-je
aide said: “SIC launched all
sorts of management consultancy and support services including overseas inroads by
selectively investing in corporations that hold excellent
technology power and product competitiveness.
“To this end, SIC composed its investment as well as
consultancy team who consisted of corporate experts
from worldwide IT enterprises such as Samsung
Electronics, Nokia, Google and Intel, investment experts
who came from Morgan Stanley as well as Goldman
Sacs.
“These are going to carry out an important catalyst for
growth acceleration such as investment corporation’s
overseas inroad by constructing a global network with a
total of 60 global IT corporation, venture capital, investment bank and law firms. Emphasis is on forging a
ground for coexistence cooperation between larger SW
companies and smaller/medium-sized SW companies.”
Ex-director of Invest
KOREA named as the
first ombudsman for
Daedeok Innopolis
The Ministry of Science
and Technology named Kim
Doo-hwan, ex-director of
Invest KOREA in KOTRA
as the first ombudsman for
Daedeok Innopolis last
Kim Doo-hwan
October 24.
Daedeok
Innopolis will start a foreign capital ombudsman system to
monitor and promote foreign capital inducement. This
ombudsman’s purpose is facilitating the entry and successful establishment of foreign business into Korea. Mr. Kim
as Daedeok Innopolis ombudsman takes charge of support
management for foreign investment companies in this
region and also promotes the proper environment to induce
foreign capital into the region.
Technologically
recognized Ubiquam
Ubiquam Co.’s Kim Eunjong CEO was selected
October’s Boastful SME
CEO by the Korean
Federation of Small and
Medium Business and the
Small & Medium Business
Administration.
Kim Eun-jong
Established in 2002,
Ubiquam gained a turnover of
29.6 billion won (US$31.2 million) last year, posting a
high market share of over 50% in the Russian and
Vietnamese market by developing CDMA cellular phone
for 450MHz appropriate to the Eastern European and
Southeast Asian regions.
The Korean Federation of Small and Medium Business
explained that Ubiquam was recognized internationally in
relation to the company’s technology power by establishing IQlinks which manufactures CDMA cellular phone terminal by teaming up with Qualcomm.
Chairman of the
Small and Medium
Software Company
Development
Council,
Kim Byung-kook.
TmaxSoft president Kim
Byung-kook has been
selected as chairman of the
Small
and
Medium
Kim Byung-kook
Software
Company
Development Council.
The Council said: “Council members and the Korea
Software Industry Council selected TmaxSoft President
Kim Byung-kook as a well-qualified person to solve
domestic software companies’ accumulated problems.”
The newly inaugurated chairman stressed that he will
put an emphasis on preparing ground for the sake of coexistence cooperation between larger software companies
and small to medium-sized software companies. He added
that he will unfold council activities, putting an emphasis
on policy and market environment improvement for the
purpose of software company development.
He pledged that the Council will do its best so that it
can grow as a representative software institution at home
by cooperating with IT service business providers and the
government.
Kim Young-se’s new
business company,
INNOMEN
Kim Young-se, president and
CEO of INNODESIGN establishes new business company,
INNOMEN. The company focuses on global marketing with INNKim Young-se
ODESIGN’s up-to-date creative
design. INNOMEN starts ambitious business projects with
the motto of ‘Frontier global design brand company, leading a high digital value for next generation’. The company
makes inroads into digital product markets such as handsets. Lee-soon, who has directed both C&I and Wide
Telecom, will perform INNOMEN’s CEO duties.
2006-11-1
2006.11.7 01:4 PM
페이지74
001 채널맥(3443-0701)
PHOTO NEWS
Oh Myung (left), president of
Konkuk University visits Colombia’s
presidential palace to meet President
Alvaro Uribe last October 23. At the
meeting, Mr. Uribe expressed his great
impression of Korea’s advanced IT
technology and industry. He also asked
advice of Mr. Oh to find the most efficient way to develop Colombia’s IT
industry. Mr. Uribe and Oh agreed on
collaboration plans such as exchange
students, professors, co-research and
2+2 plural degree programs.
The Ministry of Information and
Communication announced the launching of a Ubiquitous Robot Companion
(URC) trial run last October 24. The
URC project is one of the strategic items
of IT839. During the trial period, people can experience more hands-on and
enjoyable robot services. At the URC
Trial Performance Exhibition which
was held in the KT branch building last
October 25, Roh Jun-hyung, Minister of
Information and Communication
demonstrates with a home-style robot.
Kim Woo-sik (second from left),
Minister of Science and Technology
visited the Korea Institute of
Industrial Technology, Korea
Astronomy Observatory, National
Fusion Research Center, Korea
Institute of Geoscience and Mineral
Resources last October 19. Shin Jaein (left), president of the National
Fusion Research Center explains the
processing phase of nuclear production.
The world’s first
performer robot
Ever 2 Muse is
singing the song I’ll
Close My Eyes For
You at the closing
ceremony of Robot
World 2006. This
exhibition was held
in COEX on October
22.
Chan Kwok’s One-week Promotion was
held from last October 25 to 31 at Millennium
Seoul Hilton’s Chinese restaurant, Taipan.
Chan Kwok was head chef of the famous Hua
Ting restaurant at Singapore’s Orchard
Hotel. He offers some of the dishes that made
him one of the most recognized Chinese chefs
in international culinary circles. (from right)
Eric M. Swanson, General Manager of the
Millenium Seoul Hilton; Chua Thai Keong,
Singapore Ambassador; Chan Kwok, Head
Chef of Hua Ting; Park Hyo-nam, Executive
Chef; and Addison Goh, director of Singapore
travel office in Korea participate in opening
gala for the promotion.
Samsung Electronics develops horizontalview slim local DMB phone models, SCHB560, SPH-B5600 and SPH-B5650 on October
24. This phone series also features a 2-megapixel and 360 degree rotating hinge camera.
Jeon Jun-young (left), vicepresident
of
Samsung
Semiconductor, unveils the
world` s first 1 gigabit 50-nano
DDR2 DRAM memory chip
based on 50 nanometer technology at the Samsung main building in Seoul last October 19.
Samsung plans to mass-produce
this chip from 1Q 2008.
2006-11-1
2006.11.7 01:4 PM
Spotlight
페이지76
001 채널맥(3443-0701)
/ Asiana Airlines
Asiana Airlines Rolls Out
It’s New Livery Aircraft
Asiana Airlines’ new livery
A
siana Airlines proudly introduced its
new livery aircraft today in
celebration of Asiana’s 18th
anniversary of its foundation and in
association with the new corporate identity
that Kumho Asiana Group, the parent
company of Asiana Airlines, has released
earlier this year. Asiana plans to complete
its painting conversion process of the
remaining 60 international air-carriers
within a 5 year period.
Asiana Airlines rolled out its newly
designed B777 livery aircraft on the 26th
of October at 11:00am at Asiana’s hub
airport, Incheon International. The
officials attending the ceremony were
Vice-Chairman and CEO of Asiana
Airlines Park Chan-bup; Kang Joo-an,
President and COO of Asiana; Shin Dongchun, Commissioner to Seoul Regional
Aviation Administration; Park Keun-hae,
Vice President of Incheon International
Airport Corporation; and Park Jae-hong,
director general of Incheon International
Airport Customs.
With Kumho Asiana Group’s release of
the new corporate identity Wing earlier
this year, Asiana Airlines, has been busy
preparing a new livery design for our
aircraft that both represents the previous
images of Asiana’s Saekdong — rainbow
shaped image — mark and also the new
Wing. After eight months of intensive
research and designing the aircraft’s livery
in multiple ways, Asiana has now come
out with an exceptional new design that
has been painted on one of our B777
aircraft. This new livery carrier started its
maiden voyage to Narita, Japan on the
27th as flight number OZ104.
The features of the new livery include a
new color variation of cool gray in contrast
to the current dark gray, the merging of
images from the present Saekdong mark
that represents Asiana, and the integration
of the new logo that our parent company,
Kumho Asiana Group, released earlier this
February. Also the new theme Energy of
Saekdong will be adapted not only on the
tails of our carriers but in print materials,
signs, and other areas to show the true
change of our corporate mark.
Especially, with the introduction of the
new livery air carrier on the 26th, Asiana
will also be changing its official title of the
Economy Class to Travel Class. The
reason for changing the official name of
the class is to show to our Economy Class
passengers that their true purpose of flying
is to travel.
Asiana will commence converting its
new livery on the remaining 60 aircraft
starting with 6 this year and eventually
finalizing all its aircraft with the new
livery within a 5 year period.
2006-11-1
2006.11.7 01:4 PM
페이지78
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On the Scene Report
/ KOTRA -- Middle East & Africa
United Arab Emirates
Prefers Korean
KOTRA’s activities in the UAE
Burj Al Arab Hotel in Dubai
T
op Korean companies are well known
in the Emirates and in several areas
such as automobiles, mobile
telephony, consumer electronics and
construction the products of Korean
companies have been well received in the
local market.
Korean car manufacturers Hyundai and
Kia have been doing exceedingly well in
recent years. The local agent for Hyundai
and Kia vehicles, Juma Al Majid Est., has
reported that overall sales figures have
more than doubled, and for some models
even tripled during the past 2 years. The
new 2007 models have already hit the market and are being well received. Korean
automakers enjoy an ever increasing share
of the Emirati market. The most important
reasons for the growing popularity of
Korean vehicles in the Emirates are highly
competitive pricing, proven quality, and
low maintenance costs.
LG and Samsung mobile telephones
have reported increasing sales in the country. Both companies have introduced a
range of models that are second to none in
terms of aesthetics and features.
Korean products including refrigerators,
washing machines, microwave ovens, air
conditioners, vacuum cleaners, LCD and
plasma screen TVs have gained wide
respect and are ahead of the pack in household and entertainment electronics.
Competition has intensified in this sector
particularly from Japanese, European, and
more recently, Chinese companies. But the
two most prominent Korean companies in
this sector -- LG and Samsung -- have been
able to carve out a significant share of the
market through innovative technology,
competitive pricing and aggressive market-
personal use are the product of American
and European companies.
While both large and small IT
companies from overseas such as
Microsoft, IBM, Apple, Verizon, SAP,
Norton, McAfee, HP, Dell, Acer, and
Oracle have dominated the Emirati
software market to date, Korean
companies are conspicuous in their
absence.
ing strategies.
The aforementioned
Korea has been sucIT hardware products
cessful in gaining a slice
produced by Samsung
of the surging demand
and LG command a
for construction activimajor portion of the
ties in the UAE by winEmirati market. With
ning highly prestigious
their
competitive
building construction
pricing, proven features
and power project conand functionality, high
tracts. For example,
product quality and
Samsung Engineer won
aggressive marketing
one of the most prestithese companies stand
gious and high profile
out among the leading
building projects in the
international players in
UAE, the Burj Dubai.
the field. To their
Upon completion this
credit, Samsung and LG
Yeon Young-chul,
building is expected to
have entered into tiepresident for Middle East & Africa,
KOTRA
be the world’s highest
ups with leading local
tower at more than 700
distributors who possess
meters. In addition to its prowess in the up-to-date knowledge of local market
construction industry, the company is also conditions.
a leading player in the field of power proAside from the hardware products
jects. The expertise and innovative tech- mentioned above, success for Korean
nology of Korean companies in the con- companies has been quite limited.
struction field remain highly regarded in
For a growing number of PC hardware
the UAE.
components including USB drives, floppy
Other areas in which Korean companies discs, CDs, hard drives, monitors, mice,
have gained a noticeable presence include keyboards, motherboards, external
textiles, garment accessories, valves, portable hard drives, external ports,
personal computing hardware, electrical speakers, and cases China and Taiwan are
fittings, electrical equipment and supplies, taking a larger chunk of the market due to
and heavy construction machinery.
extremely competitive pricing. It has
become nearly impossible for Korean
manufacturers of many of these products
Korean IT products in the UAE
Korean companies have had mixed to compete with Chinese companies who
success in tapping the local IT market. sell their goods at prices 75% lower than
their Korean competitors.
The main areas in which Korean firms
In the area of software solutions,
have done well include IT hardware like
PC monitors, laptops, CD/DVD discs and Korean companies have little or no
drives, computer mice, keyboards, and presence in the UAE. Instead, software
solutions for all manner of business and
memory cards.
The Dubai office of the Korea Trade
and Investment Promotion Agency
(KOTRA) was established in 1976.
Reflecting the importance of its role as
regional hub, Dubai was designated as the
KOTRA headquarters for the Middle
Eastern and African region in 2002 in order
to manage the 16 Korea Trade Centers
located in the region.
KOTRA’s Dubai office has played a
vital role in fostering bilateral trade and
consequently good relations between
Korea and Middle Eastern and African
countries in general and the UAE and
Korea in particular.
Over the years, KOTRA Dubai has been
responsible for carrying out a number of
trade and investment promotion activities.
The activities of the KOTRA office Dubai
have notably included a number of things.
Serving as a primary source of information
for Korean businesspeople and companies
wishing to do business in the UAE,
KOTRA provides information about
requirements for setting up a business in
the country, business opportunities, important contact points, economic conditions,
laws and regulations.
The same services are provided to
Emirati businesspeople, companies and
government organizations that wish to
know more about or establish a business in
Korea. Meetings for Korean delegations
are organized with local and regional businessmen and with relevant local government officials. Since the establishment of
the Dubai office several hundreds of millions of dollars worth of business deals
have resulted from KOTRA-facilitated
meetings. The organization has helped
hundreds of Emirati businesspeople travel
to Korea annually for business purposes.
Opening Ceremony of Korea Plant & Construction Support Center in Dubai on May 14, 2006
Another example of the support KOTRA
offers is the provision of recommendation
letters to facilitate visa formalities. It also
regularly organizes outbound delegations
from the UAE to Korea to attend important
trade exhibitions and fairs in Korea. Visits
to Korea by Emirati delegations have
resulted in significant amounts of business
with UAE companies for Korean
exhibitors.
KOTRA also hosts Cyber Meetings
research for those Korean companies that
request the service. Typically, KOTRA
Dubai carries out hundreds of market
research assignments per year.
Market research helps Korean companies get a better grasp of market size, current trends, competition, pricing, distribution structure, local production, imports,
export and re-export statistics, import barriers, and local laws and regulations. The
market research department also provides
“This program helps relatively small companies gain a
foothold in the dynamic local market. Experienced
KOTRA sales consultants with sound knowledge of the
local market assist Korean companies to find importers
and partners for their products and services. “
where business representatives from both
sides can communicate through a live
video link. One more service is providing
marketing support to those Korean companies lacking any marketing and sales infrastructure in the country through KOTRA
Dubai’s Jisawa program. This program
helps relatively small companies gain a
foothold in the dynamic local market.
Experienced KOTRA sales consultants
with sound knowledge of the local market
assist Korean companies to find importers
and partners for their products and services. KOTRA also carries out market
assistance to Korean companies searching
for suitable buyers, suppliers and potential
partners for investment.
In May 2006, KOTRA’s Middle East
and Africa Headquarters opened a new
chapter in KOTRA activities with the
launching of KOPCO, the Korea Plant and
Construction Support Center. Its primary
objective is to help Korean companies tap
the lucrative plant and machinery market in
the Middle Eastern and African regions.
The center aims to help Korean plant and
machinery manufacturers and suppliers
participate in and secure large contracts.
2006-11-1
2006.11.7 01:4 PM
페이지80
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Real-Time News
MIC News
OECD IT Minister Meeting
to Be Held in Seoul
Roh Jun-hyong, Minister of
Information and Communication, said on
October 10: “In order to induce the Second
OECD IT Minister Meeting the three
countries - Korea, Canada, and Portugal have waged a fierce competition until last
week. As a result, Seoul has luckily been
decided as a venue for the meeting.”
He has tried to express the significance
of this international IT meeting by
comparing this diplomatic achievement to
unanimously electing the Korean Minister
Ban Ki-moon as next UN secretary
general. The first OECD ministerial
meeting was held under the subject of
informatization in Ottawa, Canada in
1998. In the first meeting more than 1,000
persons participated including the
international organizations APEC and
ITU, NGOs and CEOs of many private
enterprises. Due to the scale and
characteristics of this international
meeting, Korea is expected to have a good
opportunity to receive worldwide
recognition as an IT-based nation and also
to take an active role in various
discussions.
MIC Minister Roh went on to say: “The
Second OECD IT Minister Meeting is
scheduled to be opened between April and
June, 2008. Under the subject of Future of
the Internet each nation’s IT leaders will
actively participate in the discussions. The
participants will intensively deal with such
topics as what impact the Internet will
have on our society, our politics, and our
economy. From next month, the
government will start to make preparations
for the meeting.” To this end, the MIC is
making consultations with the OECD
secretariat while forming an exclusive
organization for the 2008 OECD IT
meeting. This exclusive organization is to
make preparations for the meeting, which
will include the confirmation of agendas.
In consideration of the fact that a large
number of IT ministers from many
countries will participate in the meeting,
the MIC plans to invite as many CEOs of
global companies as possible, so that this
will be a truly global IT leaders’ meeting.
An official of the MIC said, “To make this
meeting more fruitful one, the MIC will
make arrangements for the themes to be
discussed, consequently making it possible
to present ‘Seoul IT Declaration’ to all the
nations of the world.”
MIC’s Information
Technology Outlook
in 2006
Recently the Ministry of Information
and Communication (MIC) has presented
an IT Outlook 2006 to the 51st
Information, Computer, Communications
Policy Committee (ICCP) meeting of the
OECD, which has been held in Budapest,
Hungary. This report has analyzed the
weight of the IT industry in the trade
balance and has made a comparison of it
among nations. According to the analysis
of this report, as of 2004 Korea’s IT
exports account for 34% of total exports,
thus ranking first among the OECD
members. Also, this report is showing the
value-added creation ratio of the IT
industry among the industries of each
nation. This value-added creation ratio of
Korea has come second in the OECD
member nations. The ratio of R&D
investment in IT industry versus GDP has
also come second in the member nations.
In the Internet superhighway, Korea has 25
subscribers per 100 persons. Following
Iceland at 27 subscribers, Korea has stood
second in member nations. The IT Outlook
2006 consists of the following 8 chapters:
the current situation and outlook of IT
industry, international trade of IT industry,
globalization and division of labor in the
IT industry, China’s IT industry, digital
content, IT and employment, high-tech IT,
and IT policies of member nations.
Fourth 2006 Digital
Contents Awards
Prizewinner
The Ministry of Information and
Communication (MIC) will hold a contest
to select an outstanding domestic company
that produces qualified content. In an
effort to select a prizewinner for fourth
2006 Digital Contents Awards, this contest
is prepared. Various categories of prizes
will awarded to prominent candidates.
The submission deadline for this
contest is November 21 and people can get
the application form from the Korean
software promotion center’s website
(www.software.or.kr). Applications will be
accepted in person or by mail.
Selected prizewinners of this contest
will be noted on the Korean software
promotion
center’s
website
(www.software.or.kr). Qualification for
applicants is based on the excellency of
products’ global competitiveness and
quality.
The Grand Prize winner of six divisions
will be given the Minister of Information
and Communication Prize. And all prize
winners are qualified to participate in the
year-end grand prizes.
Digital Contents Awards is organized
by the Ministry of Information and
Communication and Korea software
promotion center. In a bid to develop
superior domestic digital content and assist
prizewinner companies’ global marketing
and promotion, this award was created.
The award winners will be chosen after
two careful examinations of their
technology and product quality.
Open a Window
to the IT World
Korea IT Times giving you
the right information to survive
in a competitive world
Korea IT Times:
MOST
Magnetic Levitation
Propelled Train to Scuttle
in Seoul in 2011
A magnetic levitation propulsion train
is likely to skim Seoul streets in 2011.
The government decided to commercialize a city-model magnetic levitation
propulsion train that goes at 110km per
hour by investing 450 billion won (US$474
million) by 2011. Through this, the government expects to gain a turnover of 270 billion won (US$284 million) and a production
induction effect of 900 billion won (US$950
million) every year.
By financing Korean Air, KAI, and
Samsung Techwin with 20 billion won
(US$21.1 million) this year and with 30 billion won (US$32 million) next year, the
Ministry of Science and Technology
(MOST) is going to help these Korean enterprises participate in next-generation civilian
airplane international joint development with
France’s Airbus and US’s Boeing.
Under the superintendence of Deputy
Prime Minister Kim Woo-shik of MOST,
the government is fixed to drive forward a
City-model magnetic levitation propulsion
train, a civilian airplane international joint
development project propulsion plan, a biological R&D commercialization facilitation
strategy, and a seed industry development
plan. The magnetic levitation propulsion
train, first off, is forecast to take 5 years for
technology supplements and pilot route construction and one year for composite pilot
operation.
This pilot route will be selected during
the course of the first half next year. The
government plans to insert a magnetic levitation propulsion train into some of their
basic city train routes in Daegu, Daejeon,
North Jeolla Province, Masan, Changwon,
Incheon and Incheon International Airport.
Regarding the civilian airplane international joint development project, the government plans to finance domestic aviation-related enterprises so that they can
participate in it as a Risk Sharing Partner
(RSP). The project includes developing an
A350-XWB airplane in which US$10 billion will be invested by Airbus, and a B787
model airplane, Boeing’s US$13.4 billion
project plus A350 as well as a Genx project
for B787 in which US$3 billion will be
invested by US’s GE.
MOCIE
World semiconductor
facility investment to
decrease next year
World semiconductor business circle’s
facility investment next year is forecast to
decrease by 5% to US$51.5 billion in comparison with 2006 which was US$54 billion.
Korea’s Samsung Electronics appeared to
be the largest semiconductor investment
planning enterprise with US$5.7 billion,
according to Pacific Crest Securities material. Intel followed with US$5.4 billion and
Hynix was next with US$3.1 billion.
Among the top 25 semiconductor investment enterprises, Samsung Austin
Semiconductor appeared to show the
biggest increase, deciding to invest US$1
billion, up 355% from this year. In the case
of Inotera, a joint-venture company between
Nanya and Infenion, the company plans to
invest US$1.6 billion, up 102% than this
year. NEC on the contrary is continuously
decreasing its investments from US$1.28
billion in 2005 through US$870 million in
2006 to US$656 million in 2007.
IITPA
IT Korea’s Flag in East Europe
Under the support of the Ministry of
Information and Communication (MIC),
Incheon IT Industry Promotion Agency
(IITPA, www.iitpa.or.kr) and the Center
for Digital Industry Promotion of Daegu
(DIP, www.dip.or.kr) held its East Europe
IT export consultation meeting in Prague,
Czech Republic and Budapest, Hungary on
October 17 and 19 with 11 selected IT
companies in Incheon and Daegu.
At this IT export consultation meeting the
two agencies gained export consultation outcomes amounting to US$9.38 million
through a total of 106 business talks while
approximately 200 influential buyers in the
Czech Republic and Hungary were on hand.
Through this, the two agencies are assessed
to show off Korea IT enterprise’s technology
power and to prepare a stepping stone for
pioneering East Europe IT market.
Woo Young Systems gained local contracts amounting to US$110,000 as well as
a consultation result of US$980,000, agreeing to supply Budapest Gorza Leno and
Hungary Ministry of National Defense
with electronic blackboards.
Korea’s Digital Electronics Corporation
also agreed to provide Hungary Global
Focus with electronic measuring instruments to a total of US$1.20 million. It also
agreed further to discuss with Prague’s RS
SERVIS regarding export prices as well as
more detail conditions of a total of
US$2.07 million scale. Moreover,
Pavanine (www.pavanine.co.kr) gained
business talk outcomes of US$1.48 million
as the company agreed to sell 3D monitors
and solutions worth US$300,000 respectively to Hungary Lasalo Molner and
Czech FV CAMP. Also, Namjootech
(www.namjootech.co.kr) and Daegu’s
Innonet (www.innonet.net) gained business regarding goods supply of US$1.29
million and US$900,000 respectively.
CEO Eugene Jun, IITPA, said: “The
two agencies have been doing a finely
worked-out advance preparation by surveying buyers in Prague and Budapest in
advance to support participating companies’ marketing.” He expected that with
this business meeting the two agencies can
truly capture the Eastern European IT market. IITPA, on one hand, entered an MOU
with the Hungary IT Association to support
domestic IT companies’ continuous local
market inroads in the rapidly growing
Eastern European market, thereby agreeing
to cooperate closely with the Association
so that Incheon and Daegu corporations’
inroads and exchanges can increase.
2006-11-1
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Real-Time News
Third Quarter Operating Results
Samsung Electronics Posts High Net Income
Samsung Electronics announced its
financial results for the third quarter of
2006 which ended on September 30. The
company posted a net income of 2.19
trillion won (US$2.32 billion) on revenue
of 15.22 trillion won (US$16.1 billion).
Operating income for the third quarter was
1.85 trillion won (US$1.95 billion).
“Our strategy of producing high
performance, differentiated products into
multiple end markets allowed us to power
ahead and deliver solid third quarter
results amid a challenging market
environment of the informationtechnology sector,” said Dr. Woosik Chu,
senior vice president and head of Samsung
Electronics’ investor-relations team.
He went on to say: “We anticipate our
key business units to experience
significant tailwinds in the fourth quarter,
a seasonally strong period. Furthermore,
our plan to invest an additional 1 trillion
won to increase capacity of our memorychip business is expected to create revenue
opportunities next year.”
Operating profit of the Semiconductor
Business reached 1.27 trillion won
(US$1.34 billion) on revenue of 4.91
trillion won (US$5.19 billion) in the third
quarter. Operating profit increased 29.5%
in the third quarter from the second
quarter, mainly due to strong demand of
memory chips from the PC sector.
In the memory-chip business, Samsung
Electronics capitalized on the global
shortage in supply of DRAM chips that
subsequently led to a surge in DRAM
prices. A timely redeployment of
production from slower-growth products
and strengthening higher-growth, premium
products such as DDR2, enhanced profit
margins by 3.7 percentage points from the
Revenue by Business
Business
3Q05
2Q06
3Q06
Semiconductor
Memory
System LSI
LCD
Telecomm. Network
Mobile Phone
Digital Media
Digital Appliance
Total Revenue
4.59
3.47
0.55
2.68
4.58
4.37
1.64
0.85
14.54
4.42
3.32
0.52
2.85
4.28
4.04
1.66
0.77
14.11
4.91
3.64
0.59
3.00
4.71
4.45
1.64
0.83
15.22
(in trillion won)
Growth
YoY
QoQ
7%
11%
5%
10%
7%
15%
12%
5%
3%
10%
2%
10%
(0.3%)
(1.5%)
(2.1%)
8%
5%
8%
Operating Profit by Business
Business
3Q05
2Q06
3Q06
Semiconductor
LCD0.
Telecomm. Network
Digital Media
Digital Appliance
Total Operating Profit
1.35
30
0.55
(0.02)
(0.04)
2.13
0.98
0.07
0.41
(0.06)
0.00
1.42
1.27
0.16
0.52
(0.10)
(0.01)
1.85
(in trillion won)
Growth
YoY
QoQ
(6%)
30%
(46%)
115%
(5%)
29%
(301%)
(68%)
67%
(336%)
(13%)
30%
previous quarter.
The memory business is expected to
see further growth and higher returns in
the fourth quarter, a seasonally strong
period. The price of DRAM chips is
expected to remain strong in the fourth
quarter, and the demand of NAND flash
memory chips is expected to grow with the
introduction of new products that require
larger memory such as MP3s, PMPs, and
handsets.
In addition, migration to the advanced
process technology, in particular 60nanometer (nm) 8-Gigabit (Gb) NAND
Flash technology, is expected to reduce
manufacturing costs and improve
profitability. Samsung Electronics’ plan to
invest an additional 1 trillion won to
increase production capacity of memory
chips is expected to create revenue
opportunities next year.
The Telecommunication Network
Business posted revenue of 4.71 trillion
won (US$4.97 billion), and operating
income of 520 billion won (US$550
million).
In the third quarter, robust sales of the
Ultra Edition premium handsets in Europe
helped boost sales to a record 30.7 million
units and double-digit profit margins of
11.1%.
In the fourth-quarter, the pace of the
demand increase is expected to accelerate
as the overall 3G market grows and
demand for replacement rises. The
company expects both the volume of sales
and average sales price (ASP) to see
significant improvement with the
launching of 3G Ultra Edition handsets in
various form factors and multimedia
handsets.
The LCD Business reported revenue
and operating income of 2.996 trillion won
(US$3.17 billion) and 160 billion won
(US$169 million) respectively. Prices of
IT panels recovered ahead of the
seasonally-robust period and sales of 40inch and larger TV panels remained
strong.
Samsung Electronics’ ability to once
again outperform an overall weak LCD
market reinforced the company’s
competitiveness in the industry.
Demand for LCD TV panels dominated
the industry dynamics.
Samsung
Electronics sold 3 million units of LCD
TV panels, of which sales of 40-inch and
larger TV panels amounted to 1.6 million
units. Samsung Electronics continues to
asset its leadership in the LCD TV panel
market, which grew 37% from the second
quarter.
Samsung Electronics plans to boost
monthly production capacity of its Line 7
to an additional 150,000 units in the
fourth-quarter, a busy selling season.
Digital Media Business posted an
operating loss of 100 billion won on
revenue of 1.64 trillion won (US$1.73
billion), on a parent basis. However, sales
of LCD TV, PDP TV and other high-end
flat-panel TV fared well, generating
formidable profit for the company.
Equity gains, which better depict the
global performance of the Digital Media
Business, jumped to 540 billion won
(US$571 million) in the third quarter from
290 billion won (US$307 million) in the
second quarter. The majority of the equity
gains were generated from strong sales of
digital media products including LCD
TVs.
Sales of its Digital Appliance Business
increased 7.6% quarter-on-quarter to 830
billion won (US$878 million) from
favorable sales of refrigerators and
washing machines. Operating loss was at
14.8 billion won (US$15.6 million).
LG Dacom Hits Record
High for Three
Consecutive Quarters
This year LG Dacom has hit a record
high performance for three straight
quarters. On October 25, LG Dacom
(www.lgdacom.net) released its business
performance in the third quarter. It has
marked sales of US$311 million, operating
income of US$66 million, and the net
profit of US$56 million. The sales
increased by 9% year on year; the
operating income and the net profit
respectively increased by 52% and 198%
year by year. Since its foundation, LG
Dacom has recorded an all-time high for
three straight quarters. Entering this year,
it has started to push ahead with 3
reformation tasks — attitude, cost, and
quality — on a full-scale, ongoing basis.
Now this reformation has settled down
into stable orbits. Also mainstream
businesses such as Internet, eBiz, and IDC
have shown favorable trends. LG Dacom
is analyzing that the above-mentioned
favorable factors have brought all-time
high performance to the company. Due to
improved profitability of mainstream
businesses, the operating margin has
marked 21.2% and the Earnings Before
Interests, Taxes, Depreciation and
Amortization (EBITDA) margin has
recorded 33.7%. Net profit also has nearly
doubled compared with the previous year
because of reduced interest costs that came
from continued improvement in its
financial structure.
Brain Teaser
A sudoku puzzle
It’s fun. It’s challenging . It’s addictive.
Solving time is typically from 10 to 30 minutes, depending on your skill and experience.
Sudoku, also known as ‘Number Place’ or ‘Nanpure’, is a
logic-based placement puzzle. The aim of the puzzle is to
enter a numerical digit from 1 through 9 in each cell of 9x9
grid made up of 3x3 subgrids (called regions). Digits are
given in some cells (the “givens”) and each row, column, and
region must contain only one instance of each numeral.
Completing the puzzle requires patience and logical ability.
Fill in the grid so that every row every column and every 3x3
box contains the digits 1 through 9.
Answer on page 93
Source: Incheon IT Promotion Agency
2006-11-1
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Real-Time News
SK Telecom Shows Subscriber, Revenue Increase in Q3
SK Telecom (www.sktelecom.com)
released its earnings for the third quarter,
with revenue of 2.7125 trillion won
(US$2.9 billion), operating income of
758.1 billion won (US$801 million), and
net income of 456.8 billion won (US$483
million), quarter-to-quarter growth being
2.8%, 22.4%, and 22.4% respectively. Net
income fell 22.3% year-on-year, while
revenue and operating income grew 4.5%
and 13.0% respectively.
Having reached the target of 20 million
subscribers, consistent increase in
subscribers have led to a rise in voice
revenue, and readjustment of connection
fees announced in September have led to a
quarter-to-quarter revenue growth of 2.8%,
and a year-on-year increase of 4.5% to a
record 2.7125 trillion won (US$2.9
billion).
With a drop in marketing costs,
operating income was 758.1 billion won
(US$801 million), a 22.4% growth from
the prior quarter, and a 13.0% year-onyear rise due to an increase in revenue and
readjustment of connection fees. Net
income recorded 456.8 billion won
(US$483 million), growing 22.4% from
the prior quarter, but dropping 22.3% from
the same period of last year when nonoperating income was reflected due to the
sale of SK Teletech.
Marketing expenses grew 13.2% yearon-year to 512.7 billion won (US$542
million), but was a drop of 14.5% from the
prior quarter, taking up 18.9% of revenue.
This was the result of efficient marketing
expenditure with the maintenance of
market leadership despite the impact from
implementation of handset subsidies early
this year and ongoing efforts for market
stabilization.
SK Telecom’s CFO Hah Sung-Min
remarked: “Based on the cumulative
performance up until the third quarter, we
will be able to achieve the revenue
guidelines presented earlier this year of
KRW 10.5 trillion [US$11.1 billion]
without much problem. Within the
changing environment, SK Telecom will
maintain its market leadership to develop
diverse new content, convergence services,
invest in the HSDPA nationwide network,
and strengthen its overseas businesses in
China, Vietnam and the U.S. to achieve
ongoing growth.”
Summary of Income Statement
Type
Revenue
Operating Expense
Operating Income
Non-Operating Income
Non-Operating Expense
Ordinary Income
Net Income for Term
3Q.’06
27,125
19,544
7,581
628
1,750
6,459
4,568
2Q.’06
26,383
20,190
6,193
524
1,453
5,264
3,733
Change
2.8%
-3.2%
22.4%
19.9%
20.5%
22.7%
22.4-%
EBITDA
11,749
9,973
17.8%
EBITA Margin
43.3%
37.8%
5.5%p
* EBITDA=operating income + depreciation (including R&D related depreciation)
(unit: KRW 100 million)
Change
4.5%
1.6%
13.0%
-72.9%
54.1%
-18.2%
-22.3%
3Q.’06
27,125
19,544
7,581
628
1,750
6,459
4,568
3Q.’05
25,955
19,246
6,709
2,322
1,136
7,896
5,879
11,749
43.3%
(unit: KRW100 million)
10,800
8.8%
41.6%
1.7%p
Wireless Internet Sales, Wireless Internet Sales over Cellular Revenue (excluding connection fee)
Type
3Q.’06
2Q.’06
Wireless Internet Sales (KRW 100 million)
6,702
6,758
% of Cellular Revenue (excluding connection fee)
27.8%
28.3%
Cumulative Number of Subscribers and Detailed Number of Subscribers
Type
Total No. of Subscribers
1x (including EV-DO)
EV-DO (including June)
Color Handsets
3Q.’06
20,032
19,274
9,518
18,426
2Q.’06
19,984
19,136
9,122
18,152
Change
-0.8%
-0.5%p
3Q.’06
6,702
27.8%
3Q.’05
6,530
27.6%
Change
0.2%
0.7%
4.3%
1.5%
3Q.’06
20,032
19,274
9,518
18,426
3Q.’05
19,342
18,256
7,760
16,830
(unit: 1,000 persons)
Change
3.6%
5.6%
22.7%
9.5%
3Q.’06
45,236
11,176
11,036
11,403
3Q.’05
44,921
11,301
11,349
12,206
(unit: KRW)
Change
0.7%
-1.1%
-2.8%
-6.6%
ARPU, Wireless Internet ARPU
Type
ARPU
Wireless Internet ARPU
1X(including EV-DO) Wireless Internet ARPU
Color Handset Wireless Internet ARPU
3Q.’06
45,236
11,176
11,036
11,403
2Q.’06
44,352
11,360
11,203
11,675
Change
2.0%
-1.6%
-1.5%
-2.3%
Change
2.6%
0.2%p
KTF Announces its Financial Results
for Third Quarter of 2006
The company posted a net income of
98.1 billion Korean won (US$ 97.1
million), a service income of 1.28 trillion
Korean won (US$1.17 billion), operating
income of 164.1 billion Korean won
(US$158.1 million), current profit of 126.2
billion Korean won (US$114.5 million)
last October 30. Operating margins are
enhanced 7.5% points from the previous
quarter and current margins by 25.9%
from the previous quarter.
But decreased operating margins are 17.1% and net profit is -13.2% from the
previous year respectively.
Wireless date service profits recorded
182.3 billion Korean won (US$179.1
million) in the third quarter of 2006. And
owing to brisk use of SMS text messages,
‘Do si rak,’ a music content download
service and K-ways, a navigation service,
profits of wireless internet content has
been increasing continuously.
It seems KTF’s Internet Contents
businss can fill a main role for this
company as the service has been shown
remarkable progress.
Revenue Comparing Y to Y, Q to Q
Service profit
Operating profit
Current profit
Net profit
Q305
12,669
1,980
1,453
1,301
Q206
13,142
1,527
1,002
806
Q306
12,891
1,641
1,262
981
(unit: a hundred billion)
YoY
QoQ
1.8%
-1.9%
-17.1%
7.5%
-13.2%
25.9%
-24.6%
21.7%
Financial Structure
Greatly Improved
LG Dacom’s financial structure has
greatly improved. As of September 2006,
its debt ratio stands at 65%, down by 53%
compared with the previous year of
118%. In particular, its net debt has
reduced by 31% or US$229 million. As a
result, the net debt to equity now stands at
40%, down 35% compared with the
previous year of 75%. President Park
said: “While stepping up our reformation
activities from the beginning of this year,
all our staff members have made every
effort to satisfy our customers. As a
result, we have been able to achieve this
outstanding performance. On the
occasion of changing our company name
to LG Dacom last September, we will
continue to strengthen reform activities,
exploring a new business, and creating a
synergy effect in cooperation with our
sister company LG Powercom.”
Redback Networks Third Quarter Operating Results
Redback
Networks
Inc.
(http://www.redback.com), a leading
provider of next generation broadband
networking systems, generated US$4.5
million in cash in the third quarter of
2006, boosting its overall cash total to
US$176 million. The company also added
18 new customers in the third quarter for
its SmartEdge family of multi-service
edge routers, including a top 20 carrier
worldwide. In less than two years,
Redback has won more than 200
SmartEdge customers worldwide, including 12 of the largest 20 carriers. Redback
has more than 500 SmartEdge and SMS
customers worldwide, including 15 of the
20 largest carriers.
With the adoption of Statement of
Financial Accounting Standards No. 123R
as of January 1, 2006, Redback Networks
is reporting stock-based compensation
expense in its generally accepted accounting principles (GAAP) results. GAAP net
loss for the third quarter of 2006 was
US$2.4 million or US$0.03 per share
attributable to common stockholders compared to a GAAP net loss of US$8.4 million or US$0.15 per share in the third
quarter of 2005.
Non-GAAP net income was US$9.1
million or US$0.12 per share, compared
to a non-GAAP net loss of US$4.2 million
or US$0.08 per share for the third quarter
of 2005. Excluded from the non-GAAP
results for the third quarter of 2006 were
charges relating to amortization of intangible assets, stock-based compensation,
amortization of the fair value of warrants
issued in connection with a lease agreement, certain federal and state income
taxes, and accretion of a dividend payable
to preferred stockholders which was in the
second quarter of 2006 and the previous
quarters.
For comparative purposes, GAAP pretax income excluding stock-based compensation for the third quarter of 2006 was
US$6.4 million, compared with a GAAP
pre-tax loss excluding stock-based compensation of US$7.3 million for the third
quarter of 2005.
Redback Networks Inc. manages 50
million broadband connections for 15 of
the top 20 carriers worldwide. Redback’s
multi-service routing platform delivers
next generation broadband services such
as VoIP, IPTV, Video-on-Demand and
on-line gaming. Redback Networks has
more than 500 carrier customers worldwide and is based in San Jose, CA. In
2006 Redback marks its 10 year anniversary, celebrating ten years of broadband
innovation.
2006-11-1
2006.11.7 01:5 PM
페이지86
001 채널맥(3443-0701)
Real-Time News
Samsung Unveils Sponsor Activation Plans
athlete with the Samsung MVP Award.
The MVP award ceremony will form part
of the Closing ceremony, and will be
presented to one MVP and four finalists
who will be selected by a high profile
committee and an accredited media poll.
Samsung is also gearing up for a
number of other interactive sponsor
activities during the Asian Games, as it
hosts a digital gallery at the Aspire Indoor
Hall and a Samsung Lounge at the Main
Media Center.
The Samsung Digital Gallery,
measuring 185 square meters will
comprise a unique display of some of the
most technologically sophisticated
products in the world. The gallery will be
divided into zones dedicated to various
categories within Samsung’s expertise,
such as digital media, lifestyle and mobile,
among others. The products include 40”
and 46” LCD TV models that support full
HD resolution -- double the previous best
HD performance, the world-first fourcooling refrigerator “Quarto” and a diverse
line-up of six ultra edition phones leading
in the global mobile handset market of
2006.
The Samsung Digital Gallery will also
feature various other promotional
activities, allowing visitors the opportunity
to sample some of Samsung’s innovative
creations.
The Samsung Lounge will act as a
media center and the base of information
sharing and interview coordination. The
100 square meters Lounge will consist of a
catering area, product showcase, free
Internet station and free dial access from
Samsung’s latest mobile phones. The
Samsung Lounge users will also have the
opportunity to relax, as they watch games
on the LCD screens available, or listen to
soft music playing in the background.
Samsung’s sponsor activation plans do
not stop here. Samsung has launched an
extensive outdoor advertising campaign
with new kinds of media in Doha which
includes a wrap advertisement on the
Qatar National Olympic Committee’s
building and a widespread print
advertising plan covering all major
publications in markets ranging from Iran
through to Pakistan.
Samsung Launches
LED Monitor
For the first time in Korea, Samsung
Electronics has launched a monitor made
with a LED Back Light Unit (BLU). On
October 25, it has begun to sell 20.1-inch
LCD monitor named the SyncMaster
XL20, which has adopted LED BLU. An
official of Samsung has explained that this
new product has realized such a high level
of definition that it can recapture the color
sense of photos taken by a high fidelity
digital camera. Following NEC of Japan,
Samsung Electronics has become the second to succeed in launching an LED monitor. Compared with the conventional Cold
Cathode Fluorescent Lamp, the LED BLU
monitor has much improved its color
expression, so that it can nearly perfectly
capture the natural color. Accordingly, it is
suitable for such professionals as designers
and photographers. The company’s official said: “LED monitors are very expensive. The price of NEC products stands at
about US$6000. Therefore, it is not easy to
commercialize. However, Samsung has
succeeded in lowering by far the price of
this new product, thus making it possible to
open its market to the general public.”
For almost 20 years, Samsung has been
a dedicated supporter of major sporting
events across Asia and the world. Samsung
is a long-time supporter of the Asian
Games, beginning as a local sponsor of the
Seoul 1986 Asian Games and continuing
as a local sponsor for the Hiroshima 1994
Asian Games.
Samsung’s full commitment to the
Asian Games started from 1998
participating as an official partner of the
Bangkok Asian Games and as a multicategory sponsor in the Busan Asian
Games in 2002.
Samsung highlights sports sponsorship
as a platform to raise brand awareness and
build a reputation for excellence in
corporate citizenship. Samsung’s extensive
support of sports, including the Asian
Games, is based on its corporate values
that celebrate peace, encourage friendly
competition and promote unity among
people of all cultures.
MIC News
Detailed Information on the Six Fields
of the Digital Contents Awards
Subscribe
Now!
2006-11-2
2006.11.4 04:45 PM
페이지72
001 채널맥(3443-0701)
With only thirty days remaining, sports
fans from across Asia will celebrate the
long anticipated opening ceremony
marking the start of the 15th Asian Games
Doha 2006. An essential contributor to the
event is Samsung, one of the world’s most
powerful and fastest-growing technology
companies.
As a Prestige Partner of the 15th Asian
Games, Samsung’s partnership includes
exclusivity in the audio/visual, white
goods and mobile phone categories.
Since 1986, Samsung has been a
Sponsor of the Asian Games. This year
that support continues, as Samsung unveils
its sponsor activation plans, which contain
a unique combination of activities.
As the exclusive multi-category
Prestige Partner in the audio/visual
equipment, household appliances and
mobile phone categories for the 15th Asian
Games, Samsung will provide 8,189
products in total, consisting of 3,549
audiovisual devices, 2,772 mobile phones
and 1,868 household appliances which will
be used at the Games’ venues throughout
Doha. This will ensure the smooth
running of the most anticipated Games in
Asian sports history.
“Samsung is a strong supporter of
sporting events because -- like its
technology and products -- sports plays a
vital role in bringing people and cultures
together,” said Mr. Jong-Yong Yun, Vice
Chairman and CEO of Samsung
Electronics. “As a Prestige Partner for the
15th Asian Games Doha 2006, Samsung is
proud to contribute to promoting
friendship and unity in the biggest sporting
event in Asia.”
Samsung has the honor of selecting the
Asian Games’ Most Valuable Player
(MVP) by awarding the most deserving
About Samsung and the
Asian Games
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* Web Information Content
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2006-11-1
2006.11.7 01:5 PM
페이지88
001 채널맥(3443-0701)
Real-Time News
National Semiconductor Unveils New Products
National Semiconductor Korea
(www.national.com), a leading supplier of
IT hardware in the information age,
introduced a variety of new products in
October. These consisted of new types of
buffer-repeaters, industral transceivers,
high-brightness LEDs and a new audio
amplifier.
National’s
DS15BR400
and
DS15BR401 four-channel LVDS bufferrepeaters provide all the features necessary
for designing mainstream LVDS multicards or multi-boxes. The devices operate
from zero to 2.0 Gbps and feature 14
picoseconds of total jitter at 1.5 Gbps data
rates. In addition, the industry’s highest
15 kV of ESD protection ensures
maximum protection for FPGAs, ASICs
and other onboard components. The
DS15BR400 and DS15BR401 include
configurable pre-emphasis and are wellsuited for delivering clean LVDS signals
across cables and backplanes found in a
wide variety of electronic systems,
including telecom, datacom, industrial,
medical, automotive and office imaging
Open a Window
to the IT World
Korea IT Times:
applications.
The four application-specific, dual-port
industrial physical layer transceivers have
unique flex-port switching technology and
advanced cable diagnostics. National’s
DP83849 Phyter family of commercial and
industrial transceivers address the
expansive, unique needs of embedded
design engineers who are developing
products that require high-speed industrial
connectivity and dual-port functionality
for redundancy and system management.
National’s
highly
integrated
DP83849C, DP83849ID, DP83849I and
DP83849IF dual-port transceivers include
a powerful cable diagnostic that features
time domain reflectometry (TDR) and a
dynamic link quality monitor, including
signal-to-noise ratio (SNR) estimation.
TDR detects faults during installation,
saving significant man-hours of de-bug
work. Additional innovative cable
diagnostics provide real-time continuous
dynamic monitoring of the link quality.
For example, the SNR estimation allows
system designers to implement a fault
prediction mechanism to detect changing
or deteriorating link conditions and
proactively take corrective action, saving
lengthy system downtime and costly
repairs.
The new family of light-emitting diode
(LED) drivers are designed to power the
new generation of 1W to 5W, highbrightness LEDs found in automotive,
industrial and general illumination
applications. National’s LM3402,
LM3404 and LM3405 LED drivers offer
the wider input voltage range required by
this fast-growing market segment. In
addition, National’s new LED drivers
provide a constant current to regulate the
LED brightness and low feedback voltage
to minimize power dissipation. Optimized
for 1W LEDs, National offers two
versions of the LM3402 LED driver that
provide wide input voltage ranges of either
6V to 42V or 6V to 75V. For 3W and 5W
LEDs, the LM3404 and LM3405 have
additional output current drive capability.
The new mono, 2.65W, Class D
Boomer audio amplifier from National
Semiconductor
Korea
reduces
electromagnetic interference (EMI) more
than 11 dB below the United States
Federal Communications Commission
(FCC) limit to lower system noise in
portable devices including cell phones,
smart phones, music players, notebook
computers, DVD players, gaming devices
and other portable electronics.
The LM4675 is a single-supply, filterless, high-power-output, Class D mono
audio amplifier. This new class of power
amplifier employs a unique spread
spectrum technology and a low-noise,
filter-less, pulse-width modulation (PWM)
architecture that significantly lowers
electromagnetic interference (EMI) and
eliminates output filters. This combination
reduces external component count, saves
board space, lowers system cost and
simplifies circuit design.
National Semiconductor, the industry’s
premier analog company, creates highvalue analog devices and subsystems.
National’s leading-edge products include
power management circuits, display
drivers, audio and operational amplifiers,
interface products and data conversion
solutions. National’s key analog markets
include wireless handsets, displays and a
variety of broad electronics markets,
including medical, automotive, industrial,
and test and measurement applications.
Headquartered in Santa Clara, Calif.,
National reported sales of $2.16 billion for
fiscal 2006, which ended May 28, 2006.
Additional company and product
information is available at.
LCD TV
Large BLU Market Value to
Exceed 10 Billion Dollars
in 2006
The market for large-size BLUs for LCD
TV, LCD monitor, notebook and industrial
use, 10-inch and larger, has continued to
grow at a rapid pace. The market value is
projected to surge 38% from US$7.5 billion
in 2005 to US$10.4 billion in 2006. This
steep upward trend will likely continue in
the future, posting annual growth of 19% for
five years from 2005 through 2009.
Therefore, the market for large BLUs, key
components for LCDs, will reach US$15
billion in revenues by 2009.
LCD TV Application Market
This attributes to the equal growth in
LCD monitors, notebooks and LCD TVs,
and specifically, the fast pickup in the LCD
TV market has led the overall large BLU
market growth. The market for LCD TVuse BLUs is estimated to garner US$5.5
Large BLU Market Forecasts from 2005 through 2009
2005
2006
2007
2008
2009
Market Value
7,541.2
10,397.3
12,291.3
13,890.0 14,951.9
Growth Rate
74.4%
37.9%
18.2%
13.0%
7.6%
Source: ‘Large BLU Analysis and Forecasts’, Oct. 2006, Displaybank
Mil. US$
CAGR (‘05~’09)
18.7%
-
Large BLU Market Share Forecasts by Application
2005
2006
2007
2008
Monitor
40.0%
29.2%
27.0%
25.3%
Notebook
16.8%
13.1%
12.7%
12.4%
LCD TV
39.4%
53.4%
56.5%
59.0%
Others
3.8%
4.3%
3.7%
3.3%
Total
100.0%
100.0%
100.0%
100.0%
billion in 2006, accounting for 53.4% of
the total market. Monitor and LCD TV
BLU markets remained similar by holding
a 40% share each in 2005, but LCD TV
BLUs are predicted to represent much
more than half the market in 2006. This
share of LCD TV applications will probably increase further to nearly 60% by 2008.
Although the monitor and notebook
BLU market will continue to grow every
year, this increase will be gentler than that
in the LCD TV BLU market. Yearly
[LCD TV BLU Market Share Trend Forecasts by Size]
2005
2006
23” and Under
20%
13%
26”~30”
20%
14%
32”
38%
36%
37” and Over
23%
37%
Total
100%
100%
2007
8%
10%
32%
50%
100%
2009
24.2%
12.3%
59.6%
4.0%
100.0%
growth in LCD TV applications reached
32%, and this dramatic upward trend has
forced Korean and Taiwanese BLU manufacturers to boost the production proportion of LCD TV BLUs.
LCD TV BLU market value
As the LCD TV market is on an upward
trend, the migration towards larger LCD
TV BLUs has appeared outstanding. The
LCD TV BLU market value is projected to
soar by 87% from US$3 billion in 2005 to
US$5.5 billion in 2006. Notably, the size
32-inch is occupying the largest market as
a single size, with its share registering 38%
in 2005, but the trend towards larger LCD
TVs is expected to drive the 32-inch share
down to 36% in 2006.
38% of the overall LCD TV
BLU market in 2006
The market for BLUs for 37-inch and
larger LCD TVs may chalk up US$2.1 billion in 2006, with the share up dramatically
from 23% in 2005 to 38% in 2006. This
share is projected to edge up to nearly 50%
from 2006 through 2007. By contrast, the
23-inch and smaller LCD TV BLU market,
which is targeting the second TV field, will
see its share plunge from 20% in 2005 to
13% in 2006. Such figures demonstrate
the fast shift to larger-size LCD TV BLUs
every quarter led by 40-inch and 42-inch.
2006-11-1
2006.11.7 01:5 PM
페이지90
001 채널맥(3443-0701)
Real-Time News
World Cruise Ships Calling at Busan Port
The Sapphire Princess, 110,000 tons of
the world’s best cruise ship called at Busan
Port on Friday, October 20.
According to Busan Port Authority
(BPA), the Sapphire Princess with 2,600
passengers shipped at Pier 2 in Busan Port.
After arriving at Busan Port, the
passengers toured downtown and tourist
attractions in Busan and the cruise ship
departed to the port of Shanghai in China
late Friday.
BPA held a welcoming ceremony for
the premier cruise ship upon her visit to
Busan Port and promoted the New
International Cruise Terminal slated to
open at the end of this year.
The Sapphire Princess which called at
the largest port in Korea three times last
year made this year’s first calling at Busan
Port in October 8 and she will call at
Busan Port in October 29 again.
Also, ASUKA 48,000 tons of Japanese
cruise ship visited Busan Port with 700
passengers boarding in October 19.
Tae Han, Choi, a director of Customer
Service Center of BPA said that as the city
The Ports of Busan and LA
Sign a Sister Port Agreement
Global Lines Joins
Busan New Port
The world’s third shipping line in terms
of carrying capacity, CMA-CGM joins
operation and development of Busan New
Port.
Recently, CMA-CGM made its final
negotiation with Hyundai Industry
Development Consortium which was
selected as the developer and operator of
four berths of Phase 2-3 at Busan New
Port and reached an agreement to invest
10% of its shares at Phase 2-3 in Busan
New Port.
Officials from the Ministry of Maritime
Affairs and Fisheries (MOMAF) said that
the agreement between CMA-CGM and
Busan Hyundai Industry Development
Consortium waits for an approval from the
Korean government.
The agreement was followed by the
government’s decision that in order to
create cargo at Busan New Port, attracting
foreign lines at brand-new port is required
and CMA-CGM’s intention to have its
dedicated terminal at Busan New Port.
Busan Port Authority (BPA) is also
reported to invest 9% of its shares at the
Phase 2-3 to guarantee stable operation of
the terminal.
In this regard, Hyundai Industry
Development, Bouygues from France will
participate at construction, CMA-CGM,
BPA, Zim-Line from Israel, Korea
Express, KCTC at terminal operation and
MKIF, world’s infra-fund company from
Australia and other companies at financial
Patent application trends for wearable technology
Personal mobile
gateway technology
8.1%
micromini platform
19.4%
Human body
communication
9.1%
Intellectual Property
Fierce Competition to
Obtain Original Patent for
Wearable Computer
A wearable computer is a computer that
is subsumed into the personal space of the
user, controlled by the user, and is always
on and always accessible. Most notably, it
is a device that is always with the user, and
into which the user can always enter
commands. The user can also execute a
set of such entered commands while
walking around or doing other activities.
The wearable computer is different from
other wearable devices such as
wristwatches, regular eyeglasses, and
Wearable platform
19%
Near distance nearing
long communication
40%
Human body
embedded platform
5.4%
wearable radios. Unlike these other
wearable devices that are not
programmable or reconfigurable, the
wearable computer is as reconfigurable as
the familiar desktop or mainframe
computer.
According to the Korea Intellectual
Property Office (KIPO) report on the
patent application trend for wearable
computers for the last 10 years, the total
number of patent applications stands at
186 cases. Among the total patent
applications, 32 cases have been made
during the six years before 1999,
accounting for 17%. The remaining 154
cases have been made since 2000, thus
accounting for 83%. Notably the patent
applications on wearable computers have
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2006 11 2 2006.11.4 04 45 PM 페이지72
Open New Vistas to the IT World
001 채널맥(3443 0701)
Leading ports in Korea and the US -the ports of Busan and Los Angeles -set the stage to promote cooperation and
development.
Antonio Villarigosa, mayor of LA,
and many people from LA and Busan
participated in the ceremony. June Suk
Choo, president of Busan Port
Authority and Geraldine Knatz,
executive director of the Port of LA,
signed a sister port agreement at Grand
Intercontinental Hotel in Seoul at
October 16.
The sister port agreement said two
parties reached an agreement to share
various information in port
infrastructure improvement, commercial
facilities development, port
operation and to cooperate for
trade vitalization and service
improvement.
The executive director of the
Port of LA said that it was very
meaningful to sign the sister port
relationship amid brisk trade
between Korea and the U.S,
adding this sister port agreement
would be the catalyst to boost mutual
cooperation in the future.
The president of BPA said with
marking 40th anniversary of sister city
between Busan and Los Angeles,
establishing sister port relationship
between Busan Port and LA Port would
be the stepping stone to promote mutual
development and prosperity.
By signing the sister port agreement
with the Port of LA, the Busan Port
family increases to seven sister ports in
the world - Port of Osaka, Japan, Port of
LA, Port of Seattle, Port of NY/NJ in
the U.S, Port of Shanghai, China, Port
of South Hampton and Port of
Rotterdam in Europe.
of Busan is emerging as an international
city by holding Asian Games and APEC
Summit, many cruise ships have called at
Busan Port, adding BPA will make
constant efforts to attract more cruise
vessels and to promote the New
International Cruise Terminal.
investment.
Sources from shipping industry said
that the participation of CMA-CGM, ZimLine and other global lines at Busan New
Port would make great contributions to
attracting cargo.
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2006-11-1
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Real-Time News
rapidly increased from the year 2000.
These patent applications can be grouped
by technology as follows: local area
network (LAN) or near field
communication (NFC) accounts for 40%
or 73 cases, miniature platform accounts
for 19.3% or 36 cases, wearable platforms
19.0% or 35 cases, Wearable Body Area
Networks (WBAN) 9.1% or 17 cases, and
personal mobile gateways 8.1% or 15
cases. Major patent applicants in the
overseas countries are Phillips, Xybernaut,
and IBM. But in Korea, the active
applicants include ETRI and KIST. Patent
applications of domestic private
companies still remains inactive. The
Korean government has selected the next
generation PC field as an IT growth engine
and plans to support this field. The
wearable computer is an important part of
the next generation PC field.
Analysis
Open a Window
to the IT World
Korea IT Times:
Assemblyman Choi koo-sik
Will Emergency Exits from Cars Be Possible
In action movies we can often see movie stars successfully escaping by
emergency exit from cars that have accidentally been overturned or sunk in the
water. In some cases, a main character is forcibly put into the car trunk by
scoundrels, but he manages to get out of the trunk and run away safely. Will it be
possible in the real world?
According to the Korea Intellectual Property Office (KIPO) report during the
last decade from 1996 to 2005 the number of patent applications and utility models
for an emergency exit of a car stands at 263 cases. The applications for emergency
exits can be divided into two categories. The first one is to escape from the inside
of the car at the time of car accident, and the other is to get out of the trunk in an
effort to protect a person against criminal activity. The emergency exit device for
the former is 211 cases, accounting for 80.2% of the total applicants, and the latter
is 52 cases, 19.8%.
Since 2001, the patent application has steadily increased by 14 cases per year on
the average. With regard to safety and protection against a car accident and a car
crime, the people’s concern continues to grow. Therefore, emergency exit devices
are expected to be a necessary part of cars.
The present condition of applicants (1996~2005)
Private companies
15.6%
Foreign companies
2.3%
Other companies
11.4%
Renault Samsung
Motors Co., Ltd.
3.8%
Kia Motors Corp.
14.8%
Hyundai Motor Co.
30.8%
Daewoo Motor Co.
21.3%
SK Telecom’s Unethical
Business Activity Causes
Controversy
Recently, SK Telecom has announced
that it will gradually withdraw from its
adult content service which it has been
providing on its wireless Internet portal.
However, it has been revealed that TU
Media, the subsidiary of SK Telecom, has
got approval for a pay-TV channel for
adults. Because of this fork-tongued
business activity, SK Telecom is causing
controversy. More notably, the Korean
Broadcasting Commission (KBC) has
until now opposed to the approval of a
pay-TV channel for adults. But just two
weeks after it had expressed this opposing
opinion, it has suddenly approved of it,
thus causing doubt over its decision.
According to Assemblyman Choi Koo-sik,
a member of the Culture and Tourism
Committee of the National Assembly, on
October 18 SK Telecom announced that it
will stop not only its so-called gaudy story
service but also the content service for
adults. The content service is now being
provided through its Internet portal Nate.
However, it has been revealed that TU
Media had already submitted a request for
approval of its satellite pay-TV channel to
the KBC on March 31 this year. The KBC
approved it 40 days after TU Media
submitted its request.
LCD TV Shipments Likely to
Exceed 100 Million Units by 2009
Demand for LCD TVs will probably
reach 102.5 million units by 2009,
breaking the 100 million units barrier, a
market research firm Displaybank (CEO
Peter Kwon) predicts in its latest
‘Worldwide Mid-to-long-term TV
Market Forecasts’ report.
The latest report is an updated version
of the conventional global mid-to-longterm TV market reports, and significantly
upward adjusts demand for LCD TVs,
taking into consideration the prediction
that the increased volume in demand for
LCD TVs will be 2 million units larger
than expected, according to the market
research firm. Displaybank also stated
that far stronger than expected demand
for 40-inch range TVs will have a huge
impact on the upward trend in LCD TV
demand.
Displaybank stressed that Samsung
Electronics’ smooth capacity expansions
at its seventh-generation (7G) LCD
fabrication line and LG.Philips LCD’s
7.5G capacity expansions will play a
great role in spurring demand for 40-inch
range large TVs.
On the other hand, demand for PDPs
is also forecast to hit 30 million units by
2010, but there is no upward adjustment
for PDP volume compared to the
previous one in the new estimate.
The large-format television market,
40-inch and larger, will register
shipments of 18 million units this year,
accounting for nearly 9% of the total, but
this figure will surge to 70 million units
by 2010, netting a 33% share.
Displaybank added that this growth in
the large TV market will become the
crucial factor to drive growth in the LCD
and PDP panel industry and related
component industry.
(unit: Mpcs)
2005
2006
2007
2008
2009
2010
CAGR
LCD TV
20.7
42.1
64.5
85.8
102.5
121.1
42.3%
Previously demand for LCD TV
20.7
40.2
59.5
75.8
88.5
98.1
36.4%
PDP TV
5.5
9.3
15.5
20.2
25.3
30.8
41.1%
RPTV
5.5
4.7
3.7
3.1
2.8
2.5
-14.6%
Others
CRT TV
TOTAL
-
-
0.2
0.5
1.0
1.6
-
152.1
136.2
116.0
96.7
78.6
60.5
-16.8%
183.8
192.3
199.9
206.3
210.2
216.4
3.3%
(Source: Worldwide Mid-to-long-term TV Market Forecasts, November 2006)
(unit: Mpcs)
2005
2006
2007
2008
2009
2010
CAGR
LCD TV
0.7
4.6
10.4
17.9
26.1
36.1
118.4%
PDP TV
5.1
8.9
15.1
19.8
25.0
30.6
43.1%
RPTV
5.5
4.7
3.7
3.1
2.8
2.5
-14.6%
Others
-
-
0.1
0.3
0.6
1.2
-
40”&Over
11.3
18.1
29.2
41.1
54.6
70.4
44.1%
Total TV
183.8
192.3
199.9
206.3
210.2
216.4
3.3%
6%
9%
15%
20%
26%
33%
-
40”&Over (%)
(Source: Worldwide Mid-to-long-term TV Market Forecasts, November 2006)
Brain Teaser
(See page 82)
2006-11-1
2006.11.7 01:5 PM
페이지94
001 채널맥(3443-0701)
News Briefs
Unusually Larger Celebration
Than Normal Years
provided an opportunity by holding a conference, entitled “Korea and Germany:
Partners in Research and Development,”
over two days from November 1 at the
Grand Hyatt Seoul.
country to Spain International Modern
Arts Exhibition [ARCO] in the forthcoming 2007 for the first time among Asian
countries.”
Fiftieth Anniversary to Provide Valuable
Opportunity to Further Relations
The Embassy of the Republic of
Austria was able to hold an unusually bigger celebration to commemorate the country’s October 26 National Day, rather than
the usual reception at the Ambassador’s
residence. Austria-related companies
such as AVL, Engel, Wildalp, RZB,
Swarovski, Zipfer, Topic, and Sung Shin
New Material Company sponsored the
celebration.
Korea-Hungary Mutual Complementary
Collaboration Structure to be Enlarged
Taiwan to Serve as World’s Leading
Producer of Laptop Computers
On the occasion of the 83rd
Anniversary of the Proclamation of the
Republic of Turkey, the Amb. of Turkey
and Mrs. Deniz Oezmen held a diplomatic
function on October 30 at Seoul
Millennium Hilton. Amb. Oezmen said:
“The 50th anniversary of the establishment of diplomatic relations between
Turkey and Korea in 2007 will provide a
valuable opportunity for the two countries
to further their relations, especially in the
field of trade and invetments.”
Algerian Embassy Stands Ready to Help
Korean IT Sector
On the occasion of the National Day of
the Republic of Hungary, Dr. Istvan
Torzsa, the Ambassador of Hungary, held
a diplomatic function on October 23 at the
Garnet Room of the Lotte Hotel Seoul.
As a central European country, the bilateral relations between our two countries is
forecast to be enlarged due to the both
countries’ potential and mutual complementary collaboration structure, Amb.
Torzsa said.
Korea and Germany: Partners in
Research, Development
The Day of German Unity celebration
hosted by the Embassy of the Federal
Republic of Germany on October 11 at the
Millennium Seoul was the most mammoth
party ever held this year among Seoul
embassy functions. The Embassy also
On the occasion of the 52nd
Anniversary of the Algerian Revolution of
1st November 1954, Amb. Rabah Hadid
feted the country’s National day on Nov. 1
at the Lotte Hotel Seoul. The Amb. said:
“Korean companies will endeavour to find
out more about the sizable and diverse
opportunities for trade and partnership in
the IT sector.”
Korea Invited as Chief Guest Country to
Spain’s ARCO
To fete Spain National Day on Oct. 12,
Spain Amb. Delfin Colome held a diplomatic party at noon at Lotte Hotel Seoul.
Amb. Delfin Colome said: “Spain is
becoming an important trade power for
Korea as the sixth export market in
Europe and in terms of culture as well,
Korea has been invited as the chief guest
On the occasion of the 95th National
Day of the Republic of China on Taiwan,
Chen Yeong-cho, representative of the
Taipei Mission in Korea, thanked the people and government of Republic of Korea
for their friendship and hospitality.
Through the country’s National Day celebration held on October 10 at the Hotel
Shilla, Seoul, the representative stressed:
“Today, Taiwan is the beacon of freedom
and democracy in the western Pacific.”
Czech Republic to Serve
in Geographic Center of Europe
To commemorate the country’s
Independence Day on October 28, Czech
Amb. Tomas Smetanka held a feting function on October 27, one day earlier at the
Hotel Shilla. Amb. Smetanka noted in his
speech: “The Czech Republic is in the
geographic center of Europe, surrounded
by other EU member countries. This centralized location has been determining factor for multinational corporations in doing
their business in Prague.”
Complex Quality of Design for Local,
National and International Industrial
Production
Piemonte Torino Design was held on
October 21 to 29 at the Olympic Museum.
The exhibition showed the complex quality of design meant for local, national and
international industrial production which
is confirmed to be even richer and more
vital than it has been in the past.

Showcasing Korea`s Technological Strongths Showcasing Korea`s

Transcription

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