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ⅡⅡ Software Industry of Korea

ⅢⅢ Activities of KIPA

Table of Content

Overview of Korean IT IndustryⅠⅠ

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Overview of Korean IT IndustryⅠⅠ

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Current Status

Internet subscription BroadbandMobile Phone

over40,000,000

(’06.11)

11,650,000 households

31,580,000 persons

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Issuing online documents : visa, passport, birth records

Financial transactions: payment of taxes and fees

e-Government of Korea

Emerging

Enhanced

Interactive

Transactional

Step1Step1 Step2Step2 Step3Step3 Step4Step4 Step5Step5

Seamless

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Strengths of Korean IT Industry

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WiBro Service DMB / DTV u-Home RFID/USN HSDPA / W-CDMA Broadband Convergence Telematics / LBS IT Service

8 Services Digital TV & Broadcasting devices

Intelligent Robot

Digital Contents / SW Solution

IT SoC

RFID / USN

Mobile / Telematics

Broadband / Home Network

Next Generation PC

Embedded SW

9 Products

Broadband Convergence Network Ubiquitous Sensor Network Soft Infraware

3 Infrastructures

u-IT839 Strategy

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Software Industry of KoreaⅡⅡ

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Telecom

Voice

Broadcasting

Movie

Internet

Game

WiredWireless/Satellite

Terrestrial/SatelliteCable

FTTC+xDSL/LANFTTH or HFC

ConferenceData Music News VOD e-C

Importance of Software Industry

e-Gov’t Informatization of public sector

Digital Homee-Learning, Entertainment

e-Businesse-Commerce

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Software is the core industry infrastructure in the age of digital convergence

Software is the core industry infrastructure in the age of digital convergence

Proportion of software development cost by industry

Software accelerates convergence and mixing

※Source: VDC('06)

Telecom

Industry Automation

Military/aerospace

Medical Service

Home Appliances

Car

51.4

52.451.5

45.7

40.9

54.3 Industry average: 50.1%

Importance of Software Industry

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Growth enginefor next

generation

Core Industry to contribute to reach GDP $30,000 - One of the core resources of IT 839 Strategy

Create new demands of Information and Communication Industry by increases use of digital content

Heavy competition for occupation in the

market

DC Industry is the 2nd one among the entire Industry

u-Japan announced as leading strategy

Employed policy that facilitates DC Industry

- 863 National Science Technology Plan

21C higher value-added business

Industry that creates high benefit with no marginal cost

Importance of the Digital Content Industry

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i Podi Tunes

Music+ Movie+Broadcasting

DC grows with Service and Device in the Digital Environment

Wireless Device : 95.44% of entire device in 2006 Significant Increase in sales of Wireless Internet(4.6% in 2001 → 19.6% in 2006)

iTunes Market Share : 80% of online music in the world iPod Market Share : 70% of the device market in the world

※ Korea developed the world’s first MP3 player, but lostthe advantage without a service model

Wireless Internet sales (hundred million won)

Wireless Device (thousand unit)

Mobile Game sales (hundred million won)

1,011

2,219

2,101

1,785

37

,20

2

36

,84

9

19

,06

9

25

,52

7

32

,50

2

38

,36

3

35

,01

6

31

,43

1

2003 2004 2005 2006

Increase in iPod Sales

Increase in iTunes Use

Increasein Content SalesWireless Device Supply

Increase inWireless

Internet Use

IncreaseIn Mobile

Content Sales

Apple

Growth of Digital Content with Service and Device

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※ Source : KAIT, KIPA(‘07)

20012002

2003

2005 2004

2006(e)

14.7

18.2 18.4 18.720.6

5

10

15

2021.7

2.9 4.7 5.9

8.3

11.912.5

(unit: ￦ trillion)

SW Export

SW Sales

5

10

15

(unit: $billion)

Software Sales and Export of Korea

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1

2

3

4

5

6

7

8

9

10

Package SW Market IT Service Market

MSMS

IBM IBM

Oracle Oracle

SAP SAP

EMC EMC

Samsung SDS Samsung SDS

AhnLab AhnLab

Symantec Symantec

Tmaxsoft Tmaxsoft

HP HP

10.7%

6.4%

4.6%

2.9%

2.7%

1.5%

Samsung SDSSamsung SDS

LG CNSLG CNS

SK C&CSK C&C

IBMIBM

HPHP

KTKT

HITHIT

POSDATAPOSDATA

KDNKDN

SangYong I&CSangYong I&C

23.4%

18.1%

11.8%

9.5%

5.2%

4.3%

3.9%

3.8%

Ranking

Top 10 Software Firms in Korean Market

1.4%

1.4%

1.3%

1.2%

3.2%

2.3%

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1

2

3

4

5

6

7

8

9

10

On-line Game Portal

Nexon Nexon

NcsoftNcsoft

NeowizNeowiz

NHNNHN

CJInternetCJInternet

Blizzard Korea Blizzard Korea

M-GameM-Game

GravityGravity

Hanbitsoft Hanbitsoft

SECSEC

15.0%

13.5%

7.5%

7.1%

6.0%

3.6%

3.2%

NHNNHN

DaumDaum

SKCommunicationsSKCommunications

KTH KTH

Yahoo KoreaYahoo Korea

EmpasEmpas

ItemmaniaItemmania

ItembayItembay

DacommiDacommi

NTOOS.COMNTOOS.COM

26.3%

10.4%

9.2%

Ranking

Top 10 Companies by Core Area in Digital Content Market

2.4%

2.0%

1.9%

4.6%

4.3%

2.2%

1.9%

1.1%

0.9%

0.8%

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Number of companies Number of employees

* source : KAIT(’07)

20012002

2003

20052004

5,4425,601

4,940

4,877

5,304

* source : KAIT(’07)

20012002

2003

20052004

112

122

117

110

120

(unit: thousand)

Number of Companies and Employees

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Package SW Digital ContentIT Service

Leading Korean Software Companies

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Activities of KIPAⅢⅢ

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Established 1998 by Ministry of Information & Communication

Established 1998 by Ministry of Information & Communication

About 170 peopleAbout 170 people Promoting Software IndustryPromoting Software Industry

Nurturing Digital Content IndustryNurturing Digital Content Industry

Improving Software ProductivityImproving Software Productivity

Promoting International CooperationPromoting International Cooperation

Policy Planning

Group

Digital Content

Business Group

Open Source SW Business

Group

Business Support

Group

Korea SWEngineering

Group

SW IndustryCooperation

Group

NuritkumSQUARE

Group

PresidentPresident

About KIPA

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Promoting Software Industry

Improve and revise policies, rules and regulations

Support marketing activities for software companies

Promote use of open-source software

Software market research/analysis & Policy development

Support for Regional Software Centers & Soft Towns

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Nurturing Digital Content Industry

Market analysis & strategy planning

Provide production & test facilities of Digital Content

Nurture star companies & Support global co-production

Set up IT complex (Nuritkum Square) - R&D center, IT Biz center, Cutting-edge IT Theme park

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Improving Software Productivity

Standardize software engineering

technology

Nurture software architects and

embedded software engineers

Improve the software acquisition

management process for public sector

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To share domain knowledge, experience and technology

To enhance and expedite mutual cooperation

To build strong relationships

Promoting International Cooperation (1)

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* MIC : Ministry of Information & Communication * MOFAT : Ministry of Foreign Affairs and Trade

Ministries & Local Gov’s : MOF, MOE, MOGAHA, PPS, KCS..

NIA : E-Government Experience

KADO : Internet Access Center, Digital Divide

IITA : R&D, Human Resource Development

KEXIM : ODA & Long-term base Loan

KOICA : ICT Grant, Invitation & TA

KISDI : APII Center, Research & Strategy

ETRI : R&D, Technology Development

KIPAKIPAMIC/

MOFATMIC/

MOFAT

Gov

KVS

etc

RelatedAgency

R&D

University

Promoting International Cooperation (2)

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Promoting International Cooperation (3)

Long TermPartnership

OpportunityCreation

e-GovernmentKorea Partner Country

G2G Cooperation

Experts Experts

Sharing technology and experience

• F/S: Feasibility Study,• BM: Benchmarking SMR: Seminar

ExecutiveCommittee

Collaboration Expansion

MIC (Korea)KIPA

CounterpartMinistry

② G2G Cooperation MOU

① Project Identification, * SOP

③

KoreaSpecialist

IT Specialist

Working Group

④

F/S Execution

Budget Arrangement Support

⑤

⑥⑥

*SOP: Scope of Project

Concept Procedure

Ministry

Gov. Agency

ICT Co.

R&D

Univ.

MIC

KIPA

Ministry

Gov. Agency

ICT Co.

R&D

Univ.

AIC

CoE

*BM/ SMR/ Etc

M/P & F/S

③

Korea

ADB

World Bank

Others

Dept. ofBudget

Economic Development

Board

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Nuritkum Square (Sangam)

ITBiz Center

IT R&D Center

Digital Pavilion

Co-production Center

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THANK YOUTHANK YOU

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