News

Transcription

News
COLUMN
Publisher’s Column of ICA President Cho Sung-kap
Accelerating IT Export by
Finding, Supporting New
Main Export Items
A
ccording to a recent report by
The International Cooperation
Agency for Korea IT (ICA), Korea’s IT
export will more than double this year.
This conclusion, reached from a survey
of 370 IT companies, tells us that we
can count on IT exports as an engine of
growth this year and that the IT sector
is a critical issue area for the enhancement of national competitiveness.
In 2004, worries on a worldwide economic downturn appear to be somewhat
fading as the market is picking up in
advanced industrialized countries such as
the United States, the United Kingdom
and Japan. Similarly, more people are
becoming optimistic about the prospect
of an economic recovery in Korea.
Revitalized domestic consumption
combined with the continued expansion
of exports will allow Korea’s IT companies to overcome the sluggishness
they have experienced of late.
As in the past, exports -- especially
exports of the five major export items -matter. The Korea International Trade
Association (KITA) recently pointed to
the fact that IT products -- semiconductors (US$19.5 billion), wireless communications equipments ($18.7 billion),
and computers ($15 billion) -- overwhelmingly occupy an important por-
tion of Korean exports last year.
Now, many Korean companies are
pleading for more support as they lack
resources. Although Korea is striving to
be an export power, it is true that there
are many factors that inhibit further
economic growth.
It is not just today or yesterday that
Korean companies suffer from insufficient resources. To promote exports in
the IT sector, the enhancing of technological power is the only sound option.
The importance of developing original
technologies by an expansion of R&D
investments is now a common sense
concept that all would agree with.
Organic cooperation and coordination
among research activities conducted by
businesses, universities and research
institutes is obviously a necessary condition to offset Korea’s lack of
resources. Considering that the competition will become tougher within the
IT, it goes without saying that a diversification of IT export items is much
called for.
It is for such reasons that this issue of
‘IT KOREA Journal’ turns your attention to online games. Because Korea
has the world’s best Internet infrastructure, it is quite natural that Korea is
emerging as a leader in the online game
marketplace.
According to a survey, the top ten
online game companies will achieve
sales that amount to 947.7 billion won
and the number for mobile games will
be 300 billion won this year. It is
remarkable that online game companies
(50%) and mobile game companies
(63%) will maintain a momentum of
rapid growth this year.
This year, as in the past, ICA will do its
best to support the game industry that
has emerged as a producer of main
export items. We expect that the export
potential of the game businesses will be
maximized and consolidated by information exchanges and a networking
among domestic companies and the efficient linkage among the export routes.
Of course, we will explore and support, as well, other IT sectors that can
become “the world’s number one” so
Korea’s IT industry can realize its
growth potential to its fullest extent.
IT KOREA Journal _ 1
COONNTTEENNTTSS
Published by ICA∙IT Export Magazine
MARCH, 2004
4.
Cover Story/ Kim Nam-ju Ceo of Webzen
6.
New Products
-J.C. Hyun System launches new models of computer main boards
-Aralion launches SATA based storage for small and medium sized
companies
16.
MIC News
30.
ICA News
36.
Export News
-Telson Electronics Signs a $12 Mil. Contract for Mobile phone Exports
IT Korea Journal (ISSUE 6)
to Taiwan
-Fishing-CAM Exports $10 Mil. Amount of ‘Fishing Rods with Camera’
This Year
51.
Special Report The World’s Best, Korean Games
1. Online Game
-Trends in domestic online game market
-Interview / Kim Jeong-ryul, CEO of Gravity
-Introduction of Major Korean Online Game Companies
-Thailand, Another Market in Asia
-Interview / Kim Woo-sik, Chairman of the Korean Game Export
Publisher
Cho Sung-kap
Senior Advisor
Huh Sang-woong
Consultant
Cho Joon-sang, Han Ji-young
Editor
Stanley Park
Photograph Editor
Kang Hong-kyu
Association
2. Mobile Game
-Market Trends of Local Mobile Games
-The Leading Local Mobile Game Companies
-Interview / POCKETSPACE’s president Kim Do-sik
Associate Reporter
Shim Woo-sung, Kim Jong-yul
Oh Hyun-sik, Choi Kyung-yeal
Design Director
Lee Ji-hyun, Woo Soon-sik
Marketing Manager
Bob Chang
Associate Manager
81.
Market Report/ 2003 Business Results of Domestic Mobile Industry
Kim Jong-chol, Han Mi-sun
Published by ICA
88.
Company Interview
(International Cooperation Agency for
KOREA IT)
-Mointek
8F, NCA Building, Mugyo-dong
-NRD-Tech
E-mail: [email protected]
Jung-gu, Seoul, Korea
Homepage: www.ica.or.kr
Tel: 82-2-2022-1400
94.
Internet Statistics
100. Industry News
Fax: 82-2-2022-1499
Editorial Design & Printed by CP&R
’
Kim Nam-ju, the CEO of‘Webzen’
COVER STORY
Kim Nam-ju
the CEO of‘Webzen’
The online games will be one of the
entertainments enjoyed by people of any age,
due to the variation of the game subjects.
● Reported
by Cho Joon-sang ([email protected])
Q: The great success of Webzen in China has become
the topic of conversation lately and it is known that your
company succeeded launching its products in Taiwan
and Japan. Please explain your plans to the entering of
the US and European market places.
A: We listed our stocks in NASDAQ in order to advance
into the US market. We plan to advance into Thailand within
the near future. We are considering to connect with major
game development companies into the US and Europe to
advance into the US and Europe. We are in a hurry to
4 _ IT KOREA Journal
develop a new game to advance into the US and Europe by
2005.
Q: What are the difficulties in exporting online games?
A: The difference in the“emotions”is the most difficult.
Different from the success in China and Asia which have
similar cultures with our own, a great emotional difference
exists in Europe and the US. For example, individually
playing games other than multi-connection games are universal in the European market. In order to overcome such
cultural differences, pre-researches of the market and local-
COVER STORY
ization will be enhanced.
Q: China is the largest market of the Korean domestic
online games; however, it is prospected that China will
’s greatest rival. Please explain about your
be Korea’
preparations for the competition with China.
A: Even though Korea is the leader of online games, it is
true that the countries like China are pressing hard on Korea.
It is important to secure an independent development ability
and operation ability to succeed in competition.
Q: What are the key points for a successful advance
into China?
A: Thorough contracts with business partners and management of the business partners are important. However, it
is also important to confirm the reliability of the partner
before making the contract. We researched the reliabilities of
the local companies before selecting Nine.com as a local
partner in China. When the business partner was selected, a
win-win strategy should be arranged based on mutual confidence. We consider that the key of the success was division
of the roles like the Webzen took charge of developing
games and the Nine.com took charge of local services.
”of leaders of the
Q: What are the“self-confidences”
successful online game companies?
A: Foreign countries recognize the competitive power of
the Korean online games. The foreign companies were not
confident about the success of the online game business a
few years ago, but they are aggressively trying to service the
Korean online games, now. The foreign companies recognize that the online game business is an attractive item due to
the large revenue compared to the sales, because online
games circulated through the Internet do not require circulation fees.
Q: What are the causes of the success of the online
games in Korea?
A: In Korea, a high-speed Internet network was widely
distributed and a specific infra, such as PC centers, was constructed. In addition, the game companies developed the
online games as a niche market other than the PC games and
the CONSOLE games that were already occupied by the
USA and Japan.
Q: It is known that the powerful companies of CONSOLE games, such as the Sony and Microsoft Corporations, will advance into the online game market based on
enormous capital and marketing power. Do you have any
counter-plans?
A: I think that the advance of the existing powerful game
companies will be a crisis and a chance for the Korean online
game companies at the same time. The existing CONSOLE
game companies will take three to four years in developing
online games and learning operation know-how. During that
time, we will grow in the online game market by such action
as advancing into Europe and North America that are still
unexploded territories.
Q: Please explain your future plans in business.
A: First, my plans for this year are the establishment and
the operation of a game portal site.
And, a new product following the‘Mu’is being developed which be published in 2005. The new product is being
developed to be advanced into the Europe and North American markets.
Q: How much amount of time, budget and manpower
are required to develop a multi-connection game, in general?
A: It depends on the size of the game. On average, the
development of a complete online game requires about 30
people, 7 to 8 billion won, and about a year and a half.
Q: What is your management philosophy as a CEO?
A: I think that management is“finding a hidden value”
, so
I try to throw out preconceptions and to find unseen values.
For example, when I visited Thailand to advance the‘Mu’
,I
thought that online games could be successful in Thailand,
due to the Internet infra existing there, such as PC centers.
Q: What is the direction of the development of the
online games?
A: The online game market will increase in the US and
Europe, plus, the online games will be one of the entertainments enjoyed by people of any age, due to the variation of
the game subjects.
IT KOREA Journal _ 5
New Product
New Product of this Month
J.C. Hyun System launches new models
of computer main boards
The storage capacity can be expanded up to 4.0TB at its
maximum. And, it is convenient in use because the
program for the storage management console provides a
J.C. Huyn System
web browser based GUI (Graphic User Interface).
(www.jchyun.com)
Ja-choon Chung, the president of Aralion, said “The main
has launched their
feature of this new product is to supplement a new
865PE chipset ma
function to meet the computer system environments of
in boards of giga
small and medium sized companies rather than to lower
bite technology, the
the price by reducing the function of the existing upper
‘GA-81PE1000-G
products.” In addition, he revealed, “Aralion is planning to
GT’ series.
focus on aggressive marketing and sales based on their
These products are the succeeding models of the ‘GA-
experiences and knowledge acquired in the course of
81PE1000” series, which were hot items last year, and
attracting customers in diverse industry groups and appli-
supports the FSB800 and the 1M L2 cache prescott
cation last year.” Tel: 82-2-2142-1500
processors. Furthermore, these models have had added
to them supplementary functions such as embedding an
8-channel sound codec and a giga bit LAN, which are
adopted only for high class models.
Samsung Electronics sells 12-inch
portable wide DVD players
Tel: 82-2-2105-9100
Samsung Electronics
(www.sec.co.kr) has
Aralion launches SATA based storage
for small and medium sized companies
announced on the
17th of February that
they will start to
market portable DVD
players (Model DVDL1200W) on the local
market, with 12-inch wide TFT-LCD screens. They
adopted a 12-inch LCD for the first time, so that users can
The local storage maker, Aralion (www.aralion.com), has
enjoy movies with a wider screen than ever before
launched a SATA based storage suitable for a 2nd
outside.
storage for small and medium sized companies on the
The new products (Model DVD-L1200W) are designed for
18th of February.
convenience in carrying with a super slim type that is
Aralion’s new storage product, the Hyperstor 1600SA, is
29mm in thickness and a continuous reproduction with a
outstanding in economical efficiency adopting the SCSI
free supply of two batteries. It has three headphone
(FC)-IDE method. It can be extended not only to the DAS,
receivers to enjoy all balanced to function as a whole.
but also to the SAN or the NAS systems supporting a FC or
Furthermore, it is supplied with a adaptor for automobiles
a SCSI interface. In addition, it is equipped with a triple
free of charge. This item can be used in diverse ways
power supply system, ITPS (Internal Triple Power System).
outside because it is capable of reproducing DVD titles,
6 _ IT KOREA Journal
New Product of this Month
music CDs, Video CDs and MP3 CDs. It, also, can be uti-
at the same time through adjusting its resolution (need to
lized as a temporary home theater with a remote controller
connect to VCR terminal) °„Convenient adjusting screen
and a household adaptor at home.
size (normal,larger,small) °„Supports a digital sound
Byung-ryul Ryu, the managing director of the Digital Video
output terminal.
Business Division of Samsung Electronics, said, “The
Dong-jin Choi, the executive director of DAV Business
market prospect for mobile digital products is bright
Division of LG Electronics, said, “With the launching Sky
because of the acceptance of the 5-day week.” And, he
Life HDTV set-top box at this time, the supply of HDTV
revealed that they will continue to strengthen the mobile
and HD broadcasts are expected to become widely
DVD players, which are popular on overseas markets
popular.”
including the US.
LG Electronics provides a three-month free watching
The selling price of the DVD-L1200W is on the level of
ticket to the buying customers who makes an
KW1.4 million.
arrangement of a 3-year subscription to the Sky Life HD
premium channel by the end of February in commemoration of the launching of this new products on the market.
LG Electronics releases Sky Life HDTV
set-top box with a combined use for
ground waves
The price of this model is 659,000 won.
Image Quest launches 2 new models of
LCD TV
LG Electronics (www.lge.com) has announced on the 15th
of February that they launched a set-top box (Model LSS3300), a first in Korea, which is capable of both satellite
and ground wave HD broadcasting and a two-way service.
It is remarkable that this product can use the SkyHD, an
exclusive channel for high definition broadcast for 24
Image Quest (www.hyundaiQ.com) revealed on the 3rd of
hours, ground wave HD broadcasts and the ‘SkyTouch,’ a
February that they launched two new models of the 26-
two-way service, not to mention, the existing sky life
inch wide LCD TV and the 20-inch LCD TV.
channels.
These two products are differentiated for Europe, U.S.A.
The consumers that have digital TVs and home theaters
and local markets, and they are made according to each
can enjoy not only high quality images and sound broad-
market’s required specifications for digital TV including
casts, but also a variety of channels and additional ser-
transmission methods. Either a hanging or standing type
vices with this set-top boxes
is optional. Apart from these products, Image Quest is to
Main features of this model are: °„Provides convenient
show off a 17-inch LCD TV in the 1st quarter and a 32-
broadcast information on satellite and ground wave broad-
inch wide LCD TV in the 2nd quarter to complete a line up
casts *Recording of digital broadcast programs to a VCR
in the 1st half of this year.
IT KOREA Journal _ 7
New Product
New Product of this Month
Naicom launches mouse pad for prevention of wrist strain
noticeably enhancing performance over price.
This product is a high performance 4-way server
embedding the latest Intel Xeon MP chip and ‘XA-32’, an
Naicom (www.flexarm2000 .com) has
exclusive chip for IBM. This server, to which is a 2nd gen-
announced on the 8th of February that
eration enterprise X-architecture, has technology for the
they have launched multi-functional
main frame including a ‘memory mirroring ‘protecting data
mouse pads, the ‘Dr. Flex Arm,’ which is
in emergency storing data into two memories, is applied,
designed ergonomically for prevention of
is by no means inferior to Unix server in stability.
wrist strain.
And, it has a 3U rack that takes 30% less space than
These new products were developed into
other products, it and can store 876GB data without a
2 kinds, one is designed after a ladybug
separate storage with embedded 6 HDDs. It can support a
character for children spending much
large network system such as the SAN (Storage Area
time at the computer, and the other is
Network) by increasing input/output terminals from 6 to 18
designed as a wide pad for use in office.
with the RXE100 (Remote Expansion Enclosure) module,
It can be attached or detached easily and its height can be
plus, a remote input/output control device.
adjusted according to the working condition. The mouse
Sang-ryul Cho, the executive director of the System
pads and the arm supporters can be interchangeable. Its
Operation Division of LGIBM, said, “In making a data
material is soft resin, thus it can be used semi-perma-
center, it does not require a low cost for space, and a
nently.
small and high performance product is favored.” And he
According to company sources, it is not only lessening the
emphasized this server is much higher in performance,
youth’s stress, there are others, such as that of a com-
but that it is priced to half of that of existing 4-way server
puter programmer or a pro gamer, who have to use com-
products.
puters for long periods of time. But, these items correct
one’s posture. The price is 39,000 won/set.
Tel: 82-31-715-9186
MTek Vision develops camera CSP
M Tek Vision(www.mtekvision.
LGIBM unveils a new product of a small
size IA server
co.kr), the developing company of the control IC for
camera mobile phones, has
announced on the 9th of
February that they developed
a camera CSP(camera signal
processor), the ‘MV9311,’ which is suitable for a camera
mobile phone with high quality images.
The features of this product include: ▲Supports 3million
pixels CMOS/CCD image sensor *Automatic focusing ▲
LGIBM(www.lgibm.co.kr) showed off a new product of
Adjustable optical zoom lenses *Correction of distortion
IA(Intel Architecture)server, the ‘e server x 365’ on 12th,
for super small lenses *Mechanical adjustment of shutter
8 _ IT KOREA Journal
New Product of this Month
timing
beta test for the purpose of making this vaccine program
Taking this opportunity for launching the new product(MV
perfect in October of last year. This product is scheduled
9311), M Tek Vision plans to expand the supply of the
to be launched in March with the price being 55,000 won
CSP to camera sensor makers and camera module
(including VAT). They also provide free upgrade services
makers, and to expand their end-users, which were limited
for those who have purchased the prior version, to the
to the existing mobile handset makers so far, to digital
V3Pro 2004, with the customer service period not being
camera makers.
considered expired.
M Tek Vision plans on a mass production in the 2nd
Prior to marketing the new product, AnhLab were selling
quarter, plus, it expects about KW10 billion worth of a new
the item in advance at a 20% discount price via its web
turn over this year.
site between the 9th through the 22nd February. It will
CSP not only changes color senses to that of actual
award those, who purchase the products and hey will be
images from the original image data coming through the
selected by lottery, with prizes including digital cameras,
camera sensor and adjusts the brightness, but also does
MP3 players, a USB storage, etc.
such mechanical controls as automatic focus adjustment
Tel: 82-2-2186-6000
that are necessary for high pixel products.
M Tek Vision, the specialized maker of camera control
sensors, recorded sales of KW56.4 billion last year and it
targets sales goal is 15 billion won this year.
Etronics discloses 43.8mm super slim
DVD player
Tel: 82-2-6336-4114
Etronics (www.inkel.
co.kr) said that they will
AhnLab shows off ‘V3Pro 2004
show off a super slim
DVD player (Inkel VD
AhnLab (www.ahnlab.com)
3500) with a 43.8mm in
has announced on the 8th
thickness.
of February that they have
According to company
launched the ‘V3Pro 2004’, the new virus vaccine program
sources, this product has a feature of making more than
for a PC. The V3Pro 2004 has the features of not only
two times as clear and more distinctive images than the
protection from the existing viruses and worms, but also of
existing interlace method applying the progressive
pre-monitoring with an additional function. This vaccine
scanning technology.
program is also equipped to screen out spam mails so
Furthermore, users can make a CD at the computer with
that it protects one from not only general spam mails, but
the pictures taken by a digital camera or down load from
also worm viruses with certain titles like mydom worms,
the internet, as well as, watch via TV like a picture album,
which were widely spread. As the messenger monitoring
or when we switch on a home theater unit, the back-
was added, it since can scan and cure viruses and worms,
ground image can be changed to the picture we favor.
which tend to spread through messengers such as the
We can reproduce a DVD+/_R/RW, aCD, aCd-R/RW, a
MSN. And, it enhanced user’s convenience with an option
MP3, aKODAK CD and a JPEG as well as a DVD. The
of ‘easy set’ on its environment set menu.
price is on the level of 170,000 won.
AhnLab recruited an evaluation group of 5,000 to do a
Tel: 82-2-850-6000
IT KOREA Journal _ 9
New Product
New Product of this Month
Samsung Electronicsa Comes Up With a
1.8V DDR SDRAM
with AN operating voltage OF 1.8V in the 2nd half of this
year.
Accordingly, the graphic memory of 1.8V graphic DDR is
Samsung Electronics
to surface as the leading product.” And, they revealed that
(www.sec.co.kr) has
Samsung Electronics will be strengthening its market
announced on the 8th
position as the
of February that they
No. 1 company in the industry by keeping more than 50%
launched the high per-
of the market share of the high performance graphic
formance
DRAM market, as well as, on the DRAM for the PC
graphic
DDR(GDDR) SDRAM
market based on its technical predominance.
exclusive for the super power-saving notebook computer
According to IDC, the market surveying company, the
with an operating voltage of a 1.8V, capacity of 256mega
global notebook computer market is expected to keep
bit(Mb) and operating speed of 1Gbps a first in Korea.
growing at a high annual rate of 20% by 2007 and the
The outstanding feature of this product is its ability to save
graphic D ram market is also expected to expand from
power consumption of about 50%, by lowering the oper-
US$1.2 billion this year, 2004, to $1.7 billion in 2006.
ating voltage from the existing 2.5V to 1.8V. Solving the
problem of heat generation, it is expected to contribute to
high performances of notebook computer graphics. The
LG Electronics Releases ‘Real Music
Phone’
desktop PC can use the graphic DRAM, which can
operate at 1Gbps at maximum, but the notebook computer has used the graphic DRAM operating at 600Mbps
of low performance comparatively due to heat generation.
Though this new product is of the 256Mb class, it is made
for the same size as the 128Mb product for existing
notebook PCs, and its does not require additional space
to embed up to 128MB, two times as much as 64Mb, the
maximum capacity of the graphic memory for existing
notebook PCs.
With this graphic DDR SDRAM, the data can be transferred up to 1Gbps at its maximum, so that the multimedia graphic performances such as 3-dimensional
graphic games, DVDs and TV can actually be implemented.
The graphic DRAM embedded in the graphic card of a PC
LG Electronic(www.lge.com) showed off its new product,
and notebook computer carry out the performance of
the ‘Real Music Phone,’ through which we can listen to the
managing graphic data, and it is a higher performance
music stored in the mobile handset without opening the
and value added product more than so general DRAM.
folder.
According to the company sources, “The main memory for
With the ‘Real Music Phone’ (Model LG-KV1400), we can
THE notebook computer is expected to convert to DDR2
enjoy listening to the music with the MOD key outside with
10 _ IT KOREA Journal
New Product of this Month
the folder closed, plus, a decorative 3-dimensional avatar
Above all else, as it can be purchasable per module, it can
at our will. This item realizes a variety of multi-media ser-
meet an user’s individual needs.
vices stored in waiting or music reproduction screens.
Zoi Net is expected to achieve sales of more than 2 billion
In addition, such function as ▲Recording pictures of an
won on the PC backup sector this year. For this, it has
animation for 1 hour and its reproduction by a VGA class
concluded recently a general sales agreement with
(300,000pixels) camera ▲Down loading VOD contents ▲
Mokomo to secure sales outlets covering all of Korea.
Real time streaming and ▲64 polyphony 3D stereo
Zoi Net, which does marketing and specialized backup
sounds ▲A wireless infrared communication port(IrDA)
consulting for such foreign products as Regato and Korea
are supplemented. Phone : 080-023-3300
IBM, recorded sales of KW8 billion worth last year and it is
This 26-inch wide product (Model LT260W) excels in
targeting sales mark of more than 10 billion won this year,
brightness and clearness compared with other models
2004. Tel: 82-2-3479-4700
adopting a 16 cold cathode fluorescent lamps (CCFL),
and an adopted ‘SRS WOW’ to enforce an audio surround
function. With a visual angle of 170 degrees, users can
watch on the bright screen even at a side slant. It is con-
LG Corporation sells a 8.2 million pixels
digital camera
venient to use with five steps of a zoom, PIP, a panorama
and a still.
Hong-gi Kim, the president of Image Quest, said, “We
expect sales of KW82 billion of digital TVs this year, centering on the digital TV business.” And he further said,
“Beginning with the CEBIT2004 in March, we will do a
positive marketing through local and global events
including road shows in the major cities in Europe.”
LG corporation (www.lgcorp.com) revealed on the 29th
Tel: 82-2-583-6872
that they will show off a new model, the ‘EOS-1D Mark II’
with 8.2 million pixels, in April, succeeding from the SLR
Zoi Net unveils new 4 function modularized backup master
digital camera(Model EOS-1D), which is now on the
market.
This new product, embedded with a 28.7mm large CMOS
Zoi Net(www.zoi.net)
sensor to decrease noise and to take pictures in detail, is
launches an upgraded
capable of taking 8.5 shots a second and 40 shots contin-
product
uously at its maximum.
with
modu-
larized four functions of its in-house developed PC backup
The newly developed white balance correction takes an
solution(backup master).
adjustment effect of fine white balance through a color
The backup master version 3.5, which Zoi Net is
correction (CC) filter.
scheduled to show off in April of this year, is the product
It can use two kinds of memory cards, a compact flash
which expands and strengthens the existing products
and a SD memory card and confirm the image by 15 steps
limited to backup into a 4 function of ‘share, forced
with a 230,000 pixels LCD display. It can print directly with
backup, system restoration, and resources management’.
Canon’s direct picture printer. Tel: 82-2-3773-1114
IT KOREA Journal _ 11
New Product
New Product of this Month
Ellion Digital releases DVD+RW DVD
recorder
As it (Model 505D.505M)
includes the Chinese
letter dictionary containing 4,888 letters and
1,750 phrases of colloquial tour Chinese and
Japanese, it provides
various information to students who are preparing for their
Ellion Digital (www.elliondigital.com) announced on 28th
entrance examination, as well as, business men and
that it has developed a DVD recorder(Model DVR-900A)
overseas tourists. It is embedded with a high density LCD
with DVD+RW technology that will be brought to market
and it is equipped with an e-book function that can use the
next month.
contents of the text files down loaded into the dictionary
This Model DVR-900A is capable of storing 4.76GB of
from a computer.
data onto a DVD disc, as well as, reproducing general
According to company sources, they will launch the new
DVD titles. The JPEG and MPEG1 that are photographed
concept of this electronic dictionary with added MP3 in the
with a digital camera, camcorder and TV broadcast can be
first half of this year, 2004, and hopes to penetrate
recorded with this DVD and be watched on a TV screen. A
aggressively into the local electronic dictionary market,
disc can record for one hour in the clear mode and for six
which is dominated so far by Japanese companies such
hours at maximum with a general VCR image quality.
as Sharp Electronic and Casio.
Because of the embedded NTSC TV tuner, it can do
The size of the local electronic dictionary market is esti-
scheduling and registered recording of the exact program
mated to continue the growth pattern seen from 120,000
setting timer when recording a TV broadcast.
units (24 billion won) in 2000, to 196,000 units in 2001 and
With recording, deleting, editing, and changing of animation
700,000 units this year, 2004.
pictures, it can freely edit images recorded in DVD freely.
Tel: 82-2-2691-7770
Ho-Sung Park, the president of Ellion Digital, said, “ We
are scheduling to exhibit the large capacity hard disc type
recorder and the new super slim DVD recorder at the
Net Plaza unveils vacuum tube amp
Cebit Show which is to be held in March in Germany.” And
he expressed the hope that they will achieve sales of
more than $35 million in the DVD recorder sector.
Myung Ji Hitek launches an electronic
dictionary
Myung Ji Hitek (www.mjhp.com) revealed on 27th that
they have developed an electronic dictionary that has
embedded speaker
English and Chinese spoken in a real voice and it sells
The vacuum tube amp, representative of analog audio,
under the brand name of ‘ESSEM’.
joins the PC speaker.
12 _ IT KOREA Journal
New Product of this Month
Net Plaza(www.chammsori.com) revealed on 26th that
book marking.
they will display 2.1 channel PC speaker (Chammsori I-
They are designed with a cylindrical body. And, the high
FIA6) that is embedded with vacuum amp.
quality materials take advantage of the special quality of
According to company sources, this speaker with RMS
metal chrome that creates a dynamic but soft image.
80W makes and reproduces the digital sound of a PC
These are developed in two colors, cyber blue light
softer by removing noise with an unique function of
(128MB) and imperial gold (256MB). Embedded with a
vacuum tube. The source added, it makes a grand sound
USB plug, it can be used for mobile storage.
with the wood made outer box and with the same finish as
According to company sources, they recorded sales of
a piano. The features of this product include ▲Supporting
KW4 billion worth of exporting EZ3 for the last 6 months
the answerback width of 20Hz to 200Hz frequency and
and they expect that export of EZ3 plus will be increased
the signal noise factor of 85dB ▲Embedding a 3inch full
because orders in advance from Europe and the US are
range unit and a 6.5inch unit to satellite and woofer
being increased. Tel: 82-2-705-0025
speakers respectively.
Chang-rak Son, the president of Net Plaza, said, “Even
though multi channel speakers are popular, there is a large
demand for high quality 2.1 channel speakers for the
MCS Logic Discloses new network controller
purpose of enjoying music because CDs and MP3s are in
stereo.” And he continued, “The new speakers are made
MCS Logic (www.mcslogic.com)
elaborately to produce a good quality sound using a vacuum
revelaed on 25th that they have
tube amp as these are PC speakers for listening to music.”
launched a flash type MP3
The consumer price of the ‘Chammsori I-FIA6’ is on the
decoder chip and network con-
level of KW250,000, a rather high price due to its vacuum
troller for an embedded internet
tube. The oxide free copper and gold-plated RCA cables
system.
are provided, different from the PC speaker.
MCS Logic, which has focused on CD MP3 decoder chips
Tel: 82-2-704-3368
so far, has a strategy of securing their market portion by
diversifying their products to include a flash memory type
MP3 decoder.
Alltec Electronic launches MP3 players
supporting multi-language abilities
This company has launched its first products onto the
local network market, which were designated as part of
the next generation business. These chips have such
Alltec Electronic (www.e-
functions as processing effectively the TCP/IP protocol
alltec.com) has announ-
and it can be used in so many ways such as converters,
ced on 25th that they developed and launched the MP3
controllers, processors and interface abilities. Nam Sang-
players, the ‘EZ3 plus (Model AMP-1301H. and1302H),’
yun, the president of MCS Logic said, “We are marketing
which supports multi-language abilities (ID3).
this chips in advance to network hardware developers in
These new products, which has been developed as the
Korea and Taiwan from last year.” And, he continued, “We
succeeding models to the ‘EZ3’ releases in June of last
have expanded our business areas from MP3 chipsets to
year, are equipped with the ID3 looking at titles of songs
networks, thus we expect sales from the first half of this
and names of singers at a glance, as well as, folding and
year.” Tel: 85-2-2376-2322
IT KOREA Journal _ 13
New Product
New Product of this Month
Inside Telnetcom sells new graphic cards
threading, 800MHz FSB, plus, a dual channel DDR 400
memory. As it is embedded with the composites of the S
video and TV output terminal, it can be connected with
various display devices. It can construct the multi-media
environment supporting coaxial and optical output. The
price has not decided upon. Tel: 82-2-704-4481
Samsung Electronics launches a color
laser printer
Inside Telnetcom (www.insidetnc.co.kr) revealed on 18th
that they will launch graphic cards with the latest chipsets
of Nvidia of the US, the ‘inside FX5700 conquest’. This
graphic card supports a 450MHz core clock, a 25MHz
higher than chipset’s basic performance. Its memory clock
is 550MHz and, thus, it can process high capacity
graphics quickly. It is embedded with a 256 MB memory
and it supports a directX 9, graphic acceleration pot of 8
times speed.
In commemoration of launching the new products, Inside
Samsung Electronics (www.sec.co.kr) announced on 19th
Telnetcom will provide lottery tickets, by which participants
that they launched a color laser printer(CLP-500), which
can exchange for upgraded models worth 450,000 won,
was developed in-house.
free of charge. Tel: 82-31-424-1900
This printer can print 20 sheets per minute for black and
white documents and five sheets per minute for color documents. Two new models have been launched in total
Suma Electron shows off micro ATX
main boards
including the model CLP-500N, which supports the
network.
According to company sources, minimum noise (48dB)
Suma Electron (www.suma.co.kr)
has been realized with this printer by its own technology,
have announced on 13th that
and user’s convenience has been enhanced by the
they will release a micro ATX
drawer type toner replenishment method
type main board, the ‘superior
Myung Han-il, the deputy general manager of digital
micro 9100G’.
printing business division, said, “Through aggressive mar-
This product, which is an appro-
keting, they will make the local market of 20,000 units last
priate model for construction of
year grow more than 100% this year.” The consumer price
barebone or slim PCs, home theater PCs, supports hyper
14 _ IT KOREA Journal
is KW1.58 million/unit (including VAT)
New Product of this Month
Allstorage unveils mobile storage
embedded with a MP3 player
as the power IT. And, it realized a ‘power condition graphic
system’ separating a color LCD touch screen. Through this
action, it can manage analysis and control of power quality,
Allstorage(www.allstorage.com)
be an indicator of the power condition and forecast an elec-
announced on 18th that they will
trical fire. Kim Im-bae, the head of the Business Division
display outer storage equipment
said, “With enhancement of the visual performance uti-
embedded with a MP3 player, the
lizing IT like this, this new product has the nickname of
‘axiz pro’
‘digital graphic power board.’ He went on, “ We will continue
This product, to which a 2.5inch
to play a leading role in technology differentiation applying IT
HDD with 30GB capacity is
to heavy electric equipment in the new year.
embedded, can store images and
Tel: 82-2-569-3304
music files, as well as, allowing its user to enjoy the music
stored instantly. Furthermore, it can save file data easily
because it can read all memory cards on the market. The
consumer price is 360,000 won/unit (including VAT)
Unitech Electronic launches new main
boards
Tel: 82-2-3465-0805
KD Power launches intelligent power board
KD Power (www.kdpower.co.kr)
has revealed on 18th that they
launched the ‘new 2004 intelligent power board V6.0’ adopting zeroin transformers for the
first time in the world.
Unitech electronics(www.unitec.co.kr) has announced on
This new power board, an
4th that they will launch two models of main boards with a
essence of the KD Power’s intelligent power board series,
865PE chipset and a 845PE chipset.
was developed focusing on performance innovation
The new product, “the MS-865PE LS” supports a FSB
through technical applications of dispersing a molecular
800MHz and a dual channel DDR 400,AGP 8 times in
structure on the steel plate adopting zeroin transformer
speed, and it is embedded with total eight USB 2.0 pot
and exclusively using a high efficiency steel plate
and serial ATA with ICH5 at the south bridge. The MS-
developed by POSCO. Accordingly, KD has self evaluated
845PE supports a 1 AGP and a 5 PCI.
to get such results as ▲High efficiency (Amorphous
Unitech Electronics said that they will refund the items’
98.22%, Zeroin 98.77%) ▲Low noise (Amorphous 62DB,
purchase cost, if the new products are inferior to other
Zeroin 42DB) ▲Low cost (maximum 30% against
products of the same specification in quality or in case of
Armophous). In particular, it is possible for this power
claim on after service. They, also, provide coupons with
board to do intelligent operations of graphic digital internet
which a 30% discount is given in replacing main boards.
with application of the CDMA wireless network technology
Tel: 82-2-714-8086
IT KOREA Journal _ 15
New Product
New Product of this Month
Thinkware unveils ‘Inavi free’
phone makers such as Samsung Electronics and LG
Electronics successfully launched products supporting
Thinkware (www.thinkware.
the SD card, SD card navigation products are launched
com) has recently launched
a lot.” Tel: 82-2-3433-1500
a 256MB SD card slot, the
‘Inavi’ package convertible
to the HP and Cellvic.
‘Inavi,’ with information of
Samsung SDI’s presentation of the
‘80-inch PDP’
the installation for golf fields
in Korea, provides the most
suitable traveling course to
the destination in voice
sound and in real time. It
can explore the byways and
one-lane roads.
Geonspace (President Joon-Pyo Lee), the specialized
developing company of navigation soft wares, launched
the SD card, the ‘Mio168’, which enhanced greatly such
conveniences as potable, simplicity and mobility on 8th.
The ‘Mio168’, which was co-developed by Geonspace
Samsung SDI (www.samsungsdi.co.kr) has held their
and Id dotcom(President Byung_Gon Choi), a spe-
launching ceremony for the 80-inch HD PDP at the
cialized PDA developing company, was developed as
Shilla hotel on 6th. This product, a HD high resolution
the succeeding model to the compact flash(C/F) card
PDP, is the largest TV display in the world with
type ‘pocket navi’. It is remarkable that the ‘Mio168’ is
1920mm(width) x 1,080mm (length).
the first single unit product of the PDA and the GPS in
SD (Secure Digital) card and navigation devices pours down
Korea.
In parallel with the PDAs, which are becoming smaller,
As it consists of the PDA and the ‘pocket navi III’ in a single
quite a few secure digital (SD) cards and car navigation
package, it is not necessary to purchase separate
devices that adopted slots started to be displayed on the
expansion packs or a GPS holder. The ‘Mio168’ is easy to
tetematics market from the beginning of the year, 2004.
use if it is connected to a power source with a cigar jack.
The industry experts predict that the navigation market
Before launching the ‘Mio168’, Mando Map & Soft and
exclusive for PDAs will be changed rapidly from existing
Navtech had launched the ‘Speed navi’, a SD card type
compact flash(C/F) card type products to secure digital
navigation package and ‘Injomap Motti’ with an elec-
(SD) card slot products, which become smaller and
tronic map and a GPS receiving mechanism respec-
more light, this year.
tively at the end of last year.
According to industry sources, Thinkware launched the
In connection with this, Ahn Yun-ok, the team manager
SD card slots products the ‘Inavi’ package on 5th fol-
of Geonspace said, “The demand for PDAs supporting a
lowing Mando Map & Soft and Navtech. And
SD slot is increasing as PDAs become smaller and
Geonspace is scheduled to show off its SD card type
more compact.” She continued,” Because the PDA
products on 8th. Tel: 82-2-727-3100
16 _ IT KOREA Journal
MIC NEWS
Regular Cooperation of the IPv6 with the EU
Date : 2004-01-16
K
orea and the EU regularized their cooperation in boosting the communication speed of the Trans-Eurasia Information
Network(TEIN) and developing the IPv6 application service technologies.
The Korean Ministry of Information and Communication dispatched representatives of the IPv6 engineers who work at the
Electronics and Telecommunications Research Institute(ETRI), the National Computerization Agency and the Korea Information
Strategy Development Institute with Seok Ho-ik as a leader to ‘Global IPv6 Service Launch Event’ that was held in Brussel,
Belgium on January 15 and 16.
Each member of the delegation of representatives were participants on the various panels, including the reading of a paper on
“The Present Position and Policies for Promoting the IPv6 in Korea”. These same said representatives gave a trial performance of
the IPv6 based HDTV video and live streaming systems that are developed by the ETRI. Those in attendance of the ‘Global IPv6
Service Launch Event’ showed such interest in the paper and the performance that the Ministry of Information and Communication
raised the international position of Korea.
The leader Seok Ho-ik had an interview with Dr. Erkki Likanen, who is a member of the Europe Executive Committee, and they
agreed to enhance their cooperation in boosting the communication speed of the TEIN and developing the IPv6 application service
technologies.
Dr. Erkki Likanen requested that Korea to positively participate in an IPv6 technology development project, which would be proceeded from 2004 as a part of the sixth framework program(FP) of the Europe Executive Committee.
In addition, the delegation leader Seok had additional interviews with Dr. Latif Ladid, who is an IPv6 International Forum chairman
and a Europe Taskforce chairman and Mr. Jim Bound, who is a North America IPv6 Taskforce chairman, and they all agreed to
construct a global cooperation system for promoting the IPv6.
Furthermore, the above mentioned threesome agreed to participate in the Global IPv6 Summit International Event that would be
held in July, in Korea, in order to arrange more concrete plans. Accordingly, it is predicted that the IPv6 will be propagated within
Korea and the international IPv6 cooperation will be enhanced.
Cho Gwang-bok 750-1245([email protected])
Publication of ‘Civil Appeal Cases about Communication
Date : 2004-01-16
Service’
A
guidebook including the prevention and relief gained from injuries communication services has been reprinted with additions
and emendations.
As injuries from the communication services are increasing nowadays, the Korea Communications Commission produced a ‘Civil
Appeal Cases about Communication Service’ in which various civil appeal types and injuries received in the Communication Civil
Appeal Center of Korea Communications Commission are analyzed for the communication service users to help prevent injuries
and be quickly relieved.
The Korea Communications Commission had published a guidebook including injury relief methods according to civil appeal types
last year and this current guidebook is a second edition.
16 _ IT KOREA Journal
In the second edition of the guidebook, the representative injury cases and relief methods can be generally placed according to six
service fields: ▲mobile telephones ▲an ultrahigh-speed Internet ▲local calls ▲trunk calls∙additional calls ▲international telephone service ▲online games. Each of the aforemention are explained in further detail within the publication. In addition, basic
knowledge about communication, civil appeal treating methods and civil appeal treatment centers are included as supplements
within this edition of the guidebook.
The Korea Communications Commission will distribute the guidebook for free to local self-governing bodies, consumer bodies and
related companies.
Shin Jin-seop 750-1780 ([email protected])
Ministry of Information and Communication Rated First
Date : 2004-01-20
in Information Section
T
he Korean Ministry of Information and Communication was ranked first in every government-oriented evaluations that dealt with information, so it is confirmed by its con-
trolling in-house body that the Ministry of Information and Communication is the information leading Ministry.
The Korean Ministry of Information and Communication was elected as the best Ministry in
the Civil Service Information Ability Competitive Exhibition held by the Ministry of
Government Administration and Home Affairs in November of 2003 and awarded the first
place in the Ministry Information Level Evaluation performed by the Office for Government
Policy Coordination in December of 2003. In addition, the homepage of the Ministry of
Information and Communication was selected as the best homepage in the Homepage
Evaluation of Administrative Agencies performed by the Ministry of Government
Administration and Home Affairs on January 19, 2004.
Chin Dae-je, the Minister of the Ministry of Information and Communication, had emphasized internal renovations and changes since February, 2003, when he was appointed as
the department’s Minister Chin made an effort to realize informationize the ministerial
works and to reinforce the information-utilizing ability of its officers. Minister Chin practiced meetings of executive members by
using a policy management system(GPLCS) instead of depending on paper documents. He used electronic reports in an e-mail
type for reducing face-to-face reports, created online proposals by using group wares in the Ministry, plus, using presentation documents instead of word type documents. These are just some examples at Minister Chin’s attempts for internal renovations within
his ministry.
According to the result of the awards, the information abilities of the officers of the above mentioned Ministry can be judged, as
well as, the Ministry can be a model for the application of the IT technology in changes and innovations that were emphasized by
the concept of the “Participative Government”. The officers of the Ministry of Information and Communication have self-confidence
and strong wills concerning the conducting of various information and communication policies like the IT growth power, which is
based on the information abilities.
Yoon Hyun-ju (750-2140) ([email protected])
IT KOREA Journal _ 17
MIC
NEWS
German Fraunhofer Institute Advancing Into Korea
Date : 2004-01-29
F
raunhofer IGD, Germany’s leading research institute, is
setting up a research and development(R&D) center in
Korea.
A Memorandom of Understanding(MOU) for the establishment
of the R&D center will be contracted between Dr. Encarnacao,
the IGD director of the Fraunhofer Institute and Kim Tae-hyun,
the director of the Korea Institute of Information Technology
Assessment in the government building of the Ministry of
Information and Communication at Gwanghwamoon on
January 30, 2004, with Chin Dae-je, the Minister of the
Ministry of Information and Communication and German
Ambassador to Korea Michael Geier in attendence.
The Fraunhofer Institute is known as one of the four top research institutes within Germany in the field of engineering technology
development and its adaption for industrial use. The Fraunhofer Institute includes eighty unit research institutes and thirteen
thousand researchers, plus, an annual budget of a billion Euro.
The Fraunhofer IGD Institute, which is to set up an R&D center in Korea, processes global technological power in the areas of
computer graphics, virtual reality and information security.
The Fraunhofer institute’s virtual reality technology is especially praised and used by many famous German automobile manufacturers like Mercedes-Benz and BMW.
The Korean Ministry of Information and Communication said that the Fraunhofer Institute IGD would invest up to five billion won a
year for four years, a total of 20 billion won in research funding and collaborative research manpower, as well as, it would begin
collaborative research with the ETRI, various Korean companies and universities, this activity of interaction is expected to commerce in April of 2004.
It is known that the Intelligent Manufacturing technology and the Information Assurance technology will be researched at the
German based R&D center.
The Intelligent Manufacturing technology uses a virtual reality technology to manufacture a virtual sample and to efficiently design
a product, produce parts, improve manufacturing processes and perform a simulation by co-working on the networks. The
Intelligent Manufacturing technology is expected to save time and money for developing electronic products like cellular phones
and automobiles.
The Information Assurance technology is a DRM technology for assuring information and copyrights in storing and transferring
data and multimedia contents that are received and transferred via on-line methods. The Information Assurance technology is
required to make it possible to secure reliability for online businesses.
Hyundai Motor, Samsung Electronics, and Samsung Heavy Industries were proposed to participate in the abovementioned
research.
The Korean Ministry of Information and Communication prospected that the technical interchange between Korea and Europe
would be activated to introduce the excellent technologies of European countries to Korea and to increase the advancement of the
domestic companies here into the European market. Chung Seok-jin 750-2314([email protected])
18 _ IT KOREA Journal
Announcing Research Results About the Present
Conditions of Digital TV in Foreign Countries
Date : 2004-02-02
T
he Korean Ministry of Information and Communication and the Korea Broadcasting Commission released a report about
research on the actual condition of foreign countries. The report had been created between the period of November 22 to
December 16, 2003, in order to stop adverse criticisms on the digital TV transfer type.
The report includes the actual conditions of the issues, some named were ▲performance of a fixed receipt in the ATSC type ▲the
possibility of a HD mobile receipt in the DVB-T type ▲present conditions of the mobile receipt ▲present conditions and prospects
of the HD broadcasting service provision ▲matters related to a single frequency network.
More specifically, about the performance of the fixed receipt in the ATSC type, the report said that the development of a receiver
technology such as an equalizer and the improvement of a receiver method had taken place with the goal being to improve a
receiving performance. In addition, the CRC said that an ATSC receiver of an FPGA type had been improved to the same level as
the DVB-T type, based on a laboratory test result using a DVB-T receiver and an ATSC receiver of the FPGA type.
▲CRC: Communication Research Centre, FPGA: Field Programmable Gate Arrays
About the possibility of the HD mobile receipt in the DVB-T type, some broadcasting stations of England and Australia claimed that
the HD could be compatible with a mobile receipt, technically, but the German T-Systems came to an evaluation and opinion that
the HD mobile receipt was not realistic.
In addition, when the mobile receipt was tested in Australia, the technical possibility of the HD mobile receipt was proved,
however, it was required to carefully examine the reality and the necessity before the service took place.
On the other hand, Japan adopted an individual type and proved the technical possibility of the HD mobile receipt by using a
diversity receiver with four antennas, which was manufactured by the NHK Technology Institute.
A large number of broadcasting stations from the visiting countries were interested in the mobile receipt. Especially, the broadcasting stations in Germany and Taiwan, whose ground wave broadcastings have low occupancy rates, actively promoted the
mobile receipt in order to enhance their competitive power, and such broadcasting stations expected that the mobile receipt would
make profits in the case where the importance of the mobile receipt are increased.
When a diversity receiver, which has been on the market since June last year, is used, the mobile receipt in vehicles is possible;
however, the broadcasting stations that had adopted the DVB-T type planed to provide a mobile receipt in the DVB-H type
because of the problem of power consumption.
▲DVB-H : Digital Video Broadcasting-Handheld
About the HD broadcasting service, the report said that America and Canada used the ATSC type, Australia used the DVB-T type
while Taiwan and England examined the possibilities to introduce the HD broadcasting service into their respective countries.
About the broadcasting time, 1,040 hours per year were required in Australia, 14 hours per week were recommended in Canada
and the broadcasting times were determined by the broadcasting stations in the USA. In the USA, the major broadcasting stations
like CBS, FOX, and UPN organized the HD programs for more than 50% of their programs within prime times.
In Australia, it was required to broadcast the standard definition(SD) and the high definition(HD) at the same time, by the ABA,
thus resulting in the deterioration of HD quality. However, the broadcasting stations in Australia expected the improvement of the
HD quality through the improvement of technology.
About the single frequency network, the technical development and standardization of the ATSC type has taken place with the
single frequency network being temporarily serviced in the USA and Canada. However, the regular introduction of the single frequency network would require a certain amount of time.
In addition, the regions of Australia, Singapore, and Germany operated single frequency networks in the DVB-T type, Taiwan tem-
IT KOREA Journal _ 19
MIC
NEWS
porarily operated the single frequency network to determine the requirement of the single frequency network would be by next
year and England would not even accept a nationwide single frequency network in order to protect local broadcasting stations.
The report additionally reported that the following were confirmed in visiting countries ▲competitive promotion of converting
ground wave broadcasting to digital ▲improvement of receiving performance of the ATSC type and the DVB-T type based on the
rapid development of broadcasting technology ▲increase in the consumption of the HD services and mobile receipt.
The Korean report said that a poor reception problem, which has been a chronic problem in the analog broadcasting service,
should be solved and an actual plan for universally providing of the HD broadcasting and mobile receipt service should be provided in order to cope with the changes and requirements of viewers.
This research was performed by a research team formed by 17 people who worked in the Korean Ministry of Information and
Communication, KBC, KBS, MBC, and SBS, as well as, some were selected from technical engineers with its co-leaders coming
from the Ministry of Information and Communication and the KBC.
The research team visited eighteen offices and agencies like government offices, standards associations, plus, broadcasting stations in eight countries, such as the USA, Canada, England, Germany, Australia, Singapore, Taiwan and Japan, which is the
issues about the transfer type of the ground wave digital TV could be assured.
Song Sang-hoon 750-1866([email protected])
Policies of the Korean Ministry of Information and
Date : 2004-02-04
Communication, 2004
T
he Korean Ministry of Information and
Communication planned to achieve 240
thousand billion won of IT production and 70 billion
dollars of IT exports, as well as, to make 50
thousand jobs, this year.
In addition, the aforementioned Ministry of
Information and Communication planned to
introduce early new communication services like
the 2.3GHz mobile Internet and satellite and
ground wave DMB and to raise the IT growth
power based on the latest infra, such as the
Broadband convergence Network(BcN).
Chin Dae-je, the Minister of the Korean Ministry of
Information and Communication reported on an
operational report that included such plans to Korean President Roh Moo-hyun at the Presidential Residence of the Republic of
Korea on February 4.
Minister Chin reported that he would strictly practice newly growing broadband IT promotion plans to achieve 380 thousand billion
won of IT production and 110 billion dollars of IT exports, as well as, to make 270 thousand jobs and one million and five hundred
thousand positions, by 2007. To these ends, he would practice: ▲an introduction and activation of communication, broadcast services ▲a construction of the newest IT infra ▲raising 9 IT growth powers ▲bringing intelligent knowledge to the front ▲reformation of the postal services.
20 _ IT KOREA Journal
Minister Chin reported that the Ministry of Information and Communication would promote common technology based tasks like
the construction of infra and the introduction of Information Technology Architecture(ITA) through controlling the functions of an
“electronic government”. Minister Chin, also, reported that he would support the diffusion of civil intelligence knowledge by constructing an intellectual information DB and deal with various dysfunctions of the intelligence knowledge, such as cyber-terrorism
and spam mails.
In addition, Minister Chin explained that he would reform the postal services by providing rapid, correct and safe services while
developing a mutually helpful relationship between labor and capital.
Lee Seung-won 750-2153([email protected])
Inauguration of the ‘Game Export Conference’
Date : 2004-02-12
T
he Korean Ministry of Information and
Communication held an inauguration cer-
emony for the ‘Game Export Conference’ for
the foreign marketing cooperation of domestic
Korean games with people from game businesses, communication companies and
support offices headed by people like Jin Daeje, Minister of the Ministry of Information and
Communication and Lee, Yong-Kyoung,
President of Korea Telecom. The ceremony
was held in the Orchid room of the Chosun
Hotel on February 12, 2004.
The participating bodies of the ‘Game Export
Conference’, which had more than eighty
domestic game companies, numbered in their
ranks were such companies as Ncsoft,
Webzen, Neowiz Corporation, CCR, Actozsoft, Joyon, and the Com2us Corporation, Communication companies, such as KT,
SKT, KTF, and LGT and support agencies, such as the Korea Institute of Multimedia Contents and Software(KIPA), the Korea
Software Financial Cooperative, the Export-Import Bank of Korea and the Korea Export Insurance Company all agreed to concentrate on the export of domestic Korean made games.
Kim Woo-sik, the manager of the business department in KT was elected as the first chairman of the ‘Game Export Conference’.
The ‘Game Export Conference’ was determined to investigate and analyze information on the game market environment with a
focus on areas such as the present condition of the foreign game markets and the habitual practices of foreign countries’ businesses, plus, provide the analyzed information to the game companies.
In addition, the communication companies agreed to develop and invest promising games and to connect game contents to
foreign marketing along with the development of the businesses of foreign communication networks.
Moreover, it was determined at this conference that they all would support field marketing through export support offices, such as
iPark, support foreign investment explanation meetings and participation in various exhibitions and last, but not least, support the
construction of test beds within foreign countries.
IT KOREA Journal _ 21
MIC
NEWS
Also, it was determined by the conference members to support localization operations of excellent domestic Korean games by
such means as translation of the games, to assure export contracts of the domestic games and to support legal and tax consulting
about international contracts. National policy research institutes, such as the Electronics and Telecommunications Research
Institute(ETRI), agreed to give technical support, and the ‘Game Export Conference’ were determined to help in gaining the cooperation of famous foreign game companies.
The Korean domestic game business has made rapid progress, especially, in the area of online games, resulting in a growth rate
of more than 60% in the last five years. In addition, domestic games are exported to Japan, Taiwan, and Thailand, as well as, the
domestic games occupy 80% of the Chinese game market.
However, the Korean domestic game companies have been promoted in foreign marketing under inferior conditions, thus,
resulting in giving way to huge foreign game companies. Also, the domestic game companies have had difficulties in dealing with
international disputes. The Korean Ministry of Information and Communication expected that the inauguration of the ‘Game Export
Conference’ strengthens the cooperation of the game companies, the communication companies, and the support offices which
enhances the development, the investment, and the foreign marketing of the country’s domestic games.
Chung Seok-jin 750-2335([email protected])
Next-Generation Mobile Communication Standardization
Conference to Be Held in Pusan
Date : 2004-02-16
T
he Radio Research Laboratory of the Korean Ministry of Information and Communication is holding the 12th ITU-R WP8F
Conference that presents international standardization performances after the IMT-2000, at the Paradise Hotel in Pusan on
February 18 to 25.
About 300 people of governmental representatives and civil engineers from about 25 countries with representatives from
international standard associations, domestic and foreign communication companies and manufacturers other than S. Blust,
the chairman of WP8F, and Wee, Gyu-Jin, the vice-president of the Radio Research Laboratory participated in the
Conference.
It was planned to define the concept of the next-generation mobile communication services, and to discuss about the method of
calculating the necessary amount of frequencies, as well as, plans on ways of using 2.5/2.6ß◊ frequencies.
It is expected that the next-generation mobile communication services would be realized by a wideband system that freely
receives and transfers moving pictures. Since the method of securing frequencies for the next-generation mobile communication
services will be determined in the WRC by 2007, the WP8F will technically research the method of calculating the necessary
amount of frequencies.
The IMT-2000 frequencies selected to be 800/900ß÷, 1.7/1.8ß◊, 2ß◊, 2.5/2.6ß◊ in the WARC-92, the WRC-2000 and, it was
pointed out, the bands other than 2.5/2.6ß◊ cannot be used worldwide because Europe, Asia, and the USA use the other bands.
Accordingly, each involved country and company were interested in the use of the 2.5/2.6ß◊ band that was discussed at the
Conference.
The Radio Research Laboratory expects that this Conference will be a change in way of showing the IT development of Korea to
the worldwide mobile communication professionals. Plus the conference will be encouraging the IMT-2000 development and
mobile communication system development to advance into foreign countries.
Wee Gyu-jin 710-6550([email protected])
22 _ IT KOREA Journal
Supporting 130 Billion Won to Raise IT Manpower
Date : 2004-02-18
T
his year, 2004, 130 billion won is to be invested into the training of professionals in the fields of the IT next-generation growth
power, in this year.
The Korean Ministry of Information and Communication confirmed a ‘2004 information communication manpower training program’
on February 18. The program was created in order to train IT professionals who will become creative and internationally competitive by having IT knowledge and technology that is required within the industry.
Accordingly, the Korean Ministry of Information and Communication will provide 45 billion and 600 million won for improving the IT
education programs in various universities and 54 billion and 400 million won for training researchers of the highest qualities.
In addition, 17 billion and 900 million won will be provided to train global IT manpower and 12 billion and 100 million won will be
provided to develop IT technology.
Looking into the program, an SCM model, which was experimentally introduced to the IT manpower training program, it was
decided it will be regularly promoted.
To this end, the SCM model is to be applied to the system integration(SI), S/W developments, multimedia and games, plus,
business information technologies other than embedded software and curriculums will be reorganized.
More specifically, the IT system on chip(SoC) designers will be trained and students studying abroad and in IT Research Centers
(ITRC) within universities in the fields of the next-generation growth power will be supported by priority.
In addition, the globalization of universities will be promoted, as well as, foreign exchange programs for enhancing the international awareness of the university students will be supported.
Universities will be able to employ excellent foreign IT professionals as professors and 600 domestic Korean students will be
selected and supported to study and to do research abroad.
The Korean Ministry of Information and Communication will perform special training in promising IT fields like free software,
games, biometrics technology and the wireless Internet. In addition, the ratio of industrial professionals in an evaluation committee will be increased when evaluating the business of cooperative systems, plus, the importance of the professors in the cooperative systems will be emphasized.
Choi Byung-taek 750-2324([email protected])
Supporting 54 Billion and 100 Million Won to Solve
Date : 2004-02-19
Information Differentials
T
he government will strongly try to solve information differentials of neglected social classes like the disable and elderly
people.
The Korean Ministry of Information and Communication determined to provide 54 billion and 100 million won by this year, 2004, to
solve the information differentials of the information neglected classes of people in order to realize a digital welfare society.
The Korean Ministry of Information and Communication announced the ‘2004 information differentials solving plan’ on February 19
and determined to provide 19 billion and 802 million won for a citizen information education program, 27 billion and 234 million
won for each ministries’ information education program, 5 billion and 125 million won for an information access providing program
IT KOREA Journal _ 23
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NEWS
and one billion and 945 million won for an information culture diffusion program.
The information differentials of the various neglected social classes and groups has been gradually solved due to various information differential solving programs which have been performed since 2001.
Based on the ‘2003 research for information on the differential condition of information concerning various neglected classes that
was performed by the Korea Agency for Digital Opportunity and Promotion, an information differential solving responsible agency
in the Ministry of Information and Communication, it was found that the Internet utilization rate of disabled people on June, 2003
was 27.6%, which increased by 5.2% compared to last year and the Internet utilization rate of the elderly, over 50 years of age,
was 14%, which increased by 4.9% as compared to last year.
Even the information access rate of the information neglected classes has increasingly grown, as well as, the differentials between
general citizens and the neglected classes had increased as well. Especially, the Internet utilization differential between the
general citizen and the elderly, the poor and the uneducated people of the “information neglected class” was 63.6%.
In order to solve the basic problems of the information neglected classes that appeared in the research, the Korean Ministry of
Information and Communication will concentrate on the provision of digital opportunity like improving the quality of life and
earnings through the utilization of information.
The Korean Ministry of Information and Communication determined the directions of the information differential solving program
which went into the citizen information education program, the officer information education program, the information access providing program and the information culture diffusion program.
Yoon Yang-su 750-1223([email protected])
Investing 80 Billion and 800 Million Won Into the Digital
Date : 2004-02-19
Contents Industry
T
he Koran Ministry of Information and Communication determined to raise the digital contents industry by investing 80 billion
and 800 million one this year, 2004, for accomplishing the national income of 20 thousand dollars.
The Korean Ministry of Information and Communication announced, their ‘2004 digital contents industry raising plan’ on February
19, 2004, stating the desire to be one of the top 5 countries worldwide having strong digital contents industries by 2007 and
accomplishing this by creating a 7 thousand and 500 billion won worth of domestic production, 400 million dollars of exports, and
producing 12,000 new jobs(having 60,000 new positions).
The important issues of the ‘2004 digital contents industry raising plan’ were ▲construction of a digital contents industrial base ▲
promotion of digital contents exports ▲promotion of digital contents circulation ▲development of core technology and the raising
of needed manpower ▲constitution of an IT complex.
The Korean Ministry of Information and Communication is to enhance the function of the Korea Institute of Multimedia Contents
and Software, which is a digital contents industry-supporting agency to support the digital contents industry from the discovery of
strategic items stage to the investment and the export stage. In addition, the Ministry is to enhance the connection between the
businesses that were individually supported.
Plus, the condition of producing digital contents by Korean domestic companies will be improved by inducing foreign production
centers, involvement with the export items and the export regions being varied to improve the export of the digital contents.
Park Seong-hee 750-2322([email protected])
24 _ IT KOREA Journal
Practical Introduction of the IPv6 to the Home Network
By Next Year
Date : 2004-02-23
D
etailed promotion schedules for generally introducing the IPv6 were settled. The Korean Ministry of Information and
Communication held the third ‘IPv6 strategy conference’ in the government building of the Ministry of Information and
Communication in Gwanghwamun on February 20, for the provision and the diffusion of the IPv6, which is a necessary element for
constructing the Broadband convergence Network(BcN) and home networks. Chin, Dae-Je, Minister of the Ministry of Information
and Communication, people from various equipment manufacturers and communication companies and decision makers from
research institutes participated in the conference.
At the conference, the IPv6 introduction plans reported from each company and each agency were examined and detailed
schedules for promoting various strategies were discussed.
Minister Jin emphasized that the successful promotion of the IPv6 business was the important motto of the Ministry of Information
and Communication in 2004 and he announced that the IPv6 would be applied from the beginning of the second half of the year,
2004.
The attendants at the conference agreed to the promotion schedules of developing the IPv6 home routers and the small-sized
routers, introducing a certification system for the IPv6 equipment and starting the IPv6 and the KR DNS services by the first half of
this year, 2004, while constructing IPv6 sample networks(KOREAv6) by the second half of the year.
In addition, in order to construct initial markets, the conference attendants agreed to the introduction of the IPv6 to various information businesses like the national broadband convergence network, the electronic government communication network, and
home network business,.
The attendants of this conference, also, agreed to the participation in the ‘Global IPv6 Summit in Korea’, which would be held in
July in Seoul, for the public relations and promotion of international cooperation needed for the IPv6 program. The attendants
determined that 2004 was the prime year of the IPv6 diffusion in Korea and all agreed to enhancing various governmental and
civilian international cooperation such as the IPv6 cooperation among Korea, China and Japan.
The Korean Ministry of Information and Communication made the evaluation that the “decision-makers” sympathized with the
detailed roadmap of the IPv6 through the conference.
Choi Gwan-bok 750-1245([email protected])
Supporting 16 Billion Won to 124 IT Curriculum
Reorganized Schools
124
Date : 2004-02-23
schools that reorganized their curriculums to focusing on the computer and software fields and IT growth power fields
were provided with 16 billion won.
The Korean Ministry of Information and Communication selected 29 universities, 34 colleges and 5 technical high-schools that
reorganized their curriculums, thsu, reflecting the industrial consumption of needed manpower and technology, based on the result
of the ‘2004 curriculum reorganization support program for IT and non-IT departments’.
This year, 2004, 6 billion won is to be given in support to 39 schools in the fields of computer and software like software development, embedded system software, system integration(SI), multimedia and game software and business information technology,
IT KOREA Journal _ 25
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NEWS
in order to raise and manage needed IT manpower.
The following amounts are to be divided among various educational institutions as follows: 150 million won per year will, in
support, be given to the IT departments of the universities for up to two years, 100 million won per year will be given to support
colleges for up to two years and 150 million won will be offered in support to technical high-schools thus providing them more educational equipment and software. Plus, 100 million won per year will be given in support to the non-IT departments of the universities for up to two years.
The Korean Ministry of Information and Communication expected that the aforementioned program would raise creative IT manpower that have practical business ability and, also, have the problem solving ability required by companies. This is expected to
reduce the unemployment of the youth by increasing the employment of new recruits into the IT industry.
The Korean Ministry of Information and Communication will add a hardware sample track, which will be presented by analyzing
the consumption of companies, to the “IT manpower raising SCM model” in order to perform a curriculum reorganization support
program that focuses on software and hardware. In addition, the Ministry will practically support internships for the students who
completed the reorganized curriculum.
Shin Jang-su 750-2325([email protected])
Awarding New Software Grand Prize for February, 2004
Date : 2004-02-25
T
he Korean Ministry of Information & Communication has selected “ZIPITTM” of Sujiewon
NetSoft in the category of general softwares and
“Contents package using wire and wireless image
transfer” of Motech Global Entertainment in the category of multi media softwares to award the “New
Software Grand Prize” for the month of February,
2004 respectively.
“ZIPITTM” is a business solution for correcting
addresses, which refines, converts and recovers customer identification data including an user’s address,
phone number and e-mail address quickly and correctly by comparing with its server DB.
With the latest DB of an user’s administrative districts
and zip codes, it corrects an user’s incorrect identification data, and it can correct 9 million users’ data per hour with high speed and accuracy even with the usual PC.
It is an open system designed to operate under any kind of hardware and operating systems(OS), plus, it is supplied to corporations including POSCO and public sectors, as well as, to the financial sector which include local banks.
“Contents package for using wire and wireless image transfer” is the soft ware, by which an user edits the image on a PC, a PC
camera and monitor using its window for editing and transfers it to a mobile phone.
With the server base to transfer 2,000 images, of any sort, per second, it can service all over the world with a charging and
network linkage both in Korea and within overseas countries.
26 _ IT KOREA Journal
Shown off in August of last year, it is used by Interpark, Naver, etc. And it has completed network interworking and localization
tests for 170 countries to do service within about 85% of the global wireless internet market.
Motech Global Entertainment expects sales of 5 billion won this year with this contents packages through 1,000 websites in
Korea and 100 major websites abroad.
The awarding ceremony was held in the medium conference hall on the 14th floor of the Korean Ministry of Information &
Communication’s building in Gwangwhamun with the Ministry’s vice minister, Kim Chang-gon, in attendance, on the afternoon of
25th February, 2004.
Minister Chin Visit the Middle East as the President’s
Special Envoy
Date : 2004-03-02
C
hin Dae-Je, the Minister of Information & Communication, will visit Egypt, Lebanon, Yemen, Tunis and Turkey from 2nd
March to 11th March to help Korean IT(Information Technology) companies advance into the Middle East, as well as, to
carry out his duty as the special envoy of Korean President Rho Moo-hyun.
Minister Chin will deliver the signed letters of the President concerning the Korean Government’s efforts to create an atmosphere
of friendly cooperation with Arab countries and enhance Arab countries’ understanding of the Korean Government’s decision on
dispatching additional Korean soldiers to Iraq. The minister will do this and contact the heads of Lebanon, Yemen and Tunis
during his stay.
Minister Chin will do activities in a way that will expand the overseas base for Korean IT companies while advancing into the
Middle East by concluding a cooperation agreement with Egypt concerning the information and communication technology field,
participation in opening the Internet Education and Training Center in Egypt, supporting Korean companies’ bidding for high speed
internet(xDSL) equipment contracts for the CDMA mobile equipment and electronic government during his stay.
Minister Chin will discuss the cooperation on the IT sector with Dr. Ahmed Mahmoudi Nazif, Egyptian Minister of Information &
Communication and Akil Hamed Beshir, Chairman of Egyptian Telecom, in Egypt and Chin will also meet with Lebanese
President Emile Lahoud, Prime Minister Rafic Bahaeddine Hariri, Foreign Minister Jean Badawi Obeid, and minister of
Information & Communication Jean Louis Kordahi in Lebanon. After then, Minister Chin will visit Yemen to meet with Yemen
President Ali Abdulah Salih, Foreign Minister Abu Bakr Abdullah Al-Qirbi, Communication Minister Abdul Malik Sulaiman and the
Presidential Chief Secretary, Interior Minister and Economic Planning Misister in Yemen. Then, Chin will pay a visit to Tunisia to
meet with President Zine El Abidine Ben Ali as well as the nation’s Foreign Minister and Transportation & Communication
Minister.
General Assembly of the IETF in Seoul Marks Friendly
Relation
Date : 2004-03-02
T
he Korean Ministry of Information & Communication will hold social events at the World Cup Football Stadium in Seoul to
introduce Korea and to cement friendly relationships between member countries on March 2 during the period of the 59th
Seoul IETF General Assembly, which started from the 29th of last month.
IT KOREA Journal _ 27
MIC
NEWS
About 600 internet engineering task force specialists in Korea and overseas countries will take part in IETF Social Events including
the Vice minister of Information & Communication Kim Chang-gon and the Chairman of IETF to have an opportunity of experiencing Korea’s traditional culture.
Vice-minister Kim will make a congratulatory opening speech on the day, entitled “Let’s make a promise to realize a more convenient and abundant world by way of the internet with the world people’s dearest wish again, just at the place of impression which
has drawn attention all over the world at the 2002 Korea-Japan World Cup Football Competition.”
By holding the General Assembly of the IETF in Korea this time, the Korean Ministry has foreseen that we will make a foothold
for advancing into the international internet engineering standards on the next generation internet sector, thus, we will take this
opportunity to show our capabilities as a strong internet country.
The IETF, a private international internet standardization organization that is considered the world’s top authority, will hold the
general assembly in Seoul with an attendance of about 1,500 experts untill March 4 in a hotel in Sogong-dong.
UN ITU Strategic Academic Conference Oopened in
Seoul
Date : 2004-03-02
T
he Korean Ministry of Information & Communication will hold “IT New Initiatives Symposium & Workshop” at the
Intercontinental Hotel beside COEX from March 3 to March 5 together with ITU.
World leading specialists will discuss the technology, regulation and policy related with the development of the future information
technology society with the topics/activities at the symposium, “Build Up Broadband Combined Network(BcN)” and the workshop,
“Direction of Development of the Mobile Information Society” being under discussion.
At the symposium on BcN on March 3, 300 experts in Korea and overseas countries will address the subjects of World Market
Trends, BcN Policies and Technology & Standardizations.
Besides, at the workshop on the Mobile Information Society to be held between March 4 and March 5, 100 world leading mobile
communication experts will discuss the prospect of broadband mobile communication integration, the core technology of mobile
communication and its applications, and the policy & regulations relating to mobile communication through case studies of Korea,
Japan, Norway, Morocco, etc.
In particular, the case study and research presentation on Korea’s BcN and mobile communication sector by ITU, the specialized
international organization on IT under the UN, will be an appraisal of Korea’s BcN construction basic scheme and an official recognition of Korea’s leading role in the field of information & communication including mobile communication.
This event will be ITU’s strategically planned program to diffuse an advanced example of information and communication sector to
189 member countries, and to present the direction of development for new technology and new issue of policy.
The Korean Ministry of information & Communication has foreseen that Korea’s position in broadband IT will be enhanced and
local IT industry’s advancing into the global market will be even more expanded, because this event will take place in Korea, an
advanced country in the IT sector, according to ITU’s suggestion.
Korea ranked 4th in the world according to the Digital Access Index of Global Electrical and Communication Development Report
issued by ITU in November of last year, plus, Korea was recognized to be a globally advanced country.
28 _ IT KOREA Journal
Set Up Internet Plaza in Egypt
Date : 2004.3.3
T
he Internet Plaza supported by Korea has opened in Cairo of Egypt with this type of area being a first in the Middle East.
The Korean Ministry of Information & Communication and the Egyptian Ministry of Information Technology have opened an
Internet Plaza on March 3, 2004(Egyptian time). The Korean Minister Chin Dae-Je and his Egyptian counterpart Minister Nazif,
and about 150 other high-rank officials from both countries were in attendance.
At the opening ceremony, Minister Chin hoped that the internet plaza will be useful for the expansion of the information digital
mind in Egyptian society, and he promised to broaden manpower and technical exchanges between their two countries so that
Korea’s experience of success in building up the high level of broadband infra can be taught to Egyptians.
The Egyptian Internet Plaza, with Korea’s aid of $300,000 in total, has computer education and seminar rooms, and it is
equipped with the latest equipment such as beam projected and electrically powered screens, as well as, 50 sets of new computers
Beforehand, Minister Chin had a meeting with Minister Nazif and exchanged views with him in order for Korean IT industry to
advance successfully into the Egyptian market concluding a memorandum of understanding(MOU) for both countries’ cooperation
on the IT sector.
At the meeting, Minister Chin mentioned that Korean companies were recognized globally concerning their excellent CDMA
technology, exporting CDMA equipment to China, Japan, Russia, Australia, etc.
Plus, Chin requested for the Egyptian Government’s positive support so that Korean companies may participate in Telecom,
Egypt’s CDMA2000 1x business.
And Minister Nazif promised to positively consider and support Korean companies with excellent technology so they could
advance into the Egyptian market, because Korea’s advanced IT success model can be very helpful for Egypt, too.
Minister Chin had a meeting with Akil Beshir, the Chairman of Telecom Egypt in the afternoon of the same day, asking their
Egyptian support, so that Samsung Electronics may win their CDMA 2000x business. They further discussed ways of mutual
cooperation between Korean companies such as KT and Telecom Egypt.
Telecom Egypt’s CDMA 2000 1x project is to build up 100,000 circuit lines, worth of U$44 million. And six companies including
Samsung Electronics and ZTE of China are known to be participating in the bidding for the Egyptian project.
If the Korean company succeeds in being awarded this project, about 2.6 million units of new mobile handsets will be required.
The chairman of Telecom Egypt called at KT In January expressing hope for learning about the success of Korea’s high speed
internet.
Accordingly, the prospect for Korean companies to advance into the Egyptian market is very bright.
Internally, Egypt is growing rapidly securing 5 million subscribers as of August of last year. And, they have a potential demand of
about 1 million lines on the high speed internet sector.
The internet plaza in Egypt, which is opened at this time, is the ministry’s 4th project, following Cambodia, Rumania and Vietnam,
to narrow the global information gap between various countries and Korea.
MIC NEWS
IT KOREA Journal _ 29
News
ICA, surveyed small & medium IT companies’ export status
and overseas business requirements.
Export Percentage and Ex
pected Growth of Exports in
2004-Prospected a Sharp Incr
ease in Exports.
knowledge on specific items or brokers.
panies’ export status and overseas
According to an investigation on the
through foreign distributors by con-
business requirements for about a
export against total sales in 2003 of the
tracting with them. Both wireless com-
month from January 15, 2004 through
surveyed companies, about 55.6% of
munication systems and software com-
February 13, 2004 for the “2004 ICA
the companies said the export ratio
panies export primarily through agents,
Support for IT Export.” This survey was
would be below 20%. On the other
and the next generation displays com-
conducted targeting small and medium
hand, 24% of the companies said the
panies favor direct marketing. While
IT companies on a higher rank of
export ratio would be more than 60%. It
digital media players and digital con-
exports and export competitive com-
shows that not a few companies have
tents companies export their products
panies according to 14 groups of
placed a lot of emphasis on their
through foreign distributors by con-
promising export items. It was so suc-
exports. Regarding the prospect of
tracting with them, the fixed-line com-
cessful that about 370 companies
export in 2004, some forecast a minus
munication hardware companies set up
responded to the survey. About 30% to
growth. However, about half of the sur-
joint venture companies with foreign
48% respondent companies expressed
veyed companies prospected the export
companies
their will to participate in the IT
growth in 2004 will be doubled com-
●
Cooperation Group, which is an ICA
pared with that of 2003. Viewing from
Main Export Markets-U.S.A.,
Western Europe, China
export support project. ICA has decided
the individual product group, more than
Most of the surveyed companies are
to adjust and execute the project so that
half of the surveyed companies in the
now exporting their products to the US,
it may be in optimum compliance with
fields of broadcasting equipment,
Western Europe and China. The exports
the specific requirements of individual
storage, security systems, software,
to Japan and South East Asia are also
companies by utilizing information of the
computer related services and the next
brisk. On the other hand, the exports to
desired export countries and markets,
generation display products, said that,
South-East Asia, the Central and South
as well as, target companies in detail as
exports would be increased by more
Americas and the Middle East are
per industry revealed by the survey.
than 200%. In the case of storage, in
unsatisfactory. Wireless communication
ICA, in particular, will build the “Best IT
particular, about 70.6% of the com-
equipment and systems, fixed line com-
Korea Pool” with those companies
panies said the exports would be drasti-
munication equipment, high speed
responding to the survey and ICA will
cally increased. But, it should be noted
internet/network hardware and digital
give them its full support by helping
that a number of respondent companies
contents companies are concentrating
them in preference for its export project
were relatively not big. Both security
on the China or the US marketplace.
this year, by supporting them financially
system and software companies, also,
Software and computer related service
to issue an English version of “Korea IT
prospected that exports would increase
companies are focusing on Asian
Companies and Product Directory,” that
a lot this year, expressing their expec-
markets such as China, Japan and
will be distributed to overseas buyers,
tation for an export increase.
South East Asian countries. Broad
thus, continually providing overseas IT
●
Export Marketing Channel - D
ependi ng Mostly on Agents
casting equipment, storage, digital multi-
Most of the surveyed companies take
security system and next generation dis-
advantage of sales agents with
plays companies are targeting only
T
he International Cooperation
Agency for Korea IT (ICA) had
carried out a survey of small and
medium IT and communication com-
market information to them.
The survey results are summarized
as follows:
30 _ IT KOREA Journal
●
Many companies are marketing directly
through their organizations in foreign
countries or exporting their products
media players, secondary batteries,
advanced countries found in such areas
result, include positively seeking to meet
as North America and Western Europe.
with end-users, buyers and agents, or
Desired Export Market - North
America, Western Europe,Sout
heast Asia
understanding companies’ needs
The surveyed companies’ desired
the existing foreign market development
export markets in 2004 were, as men-
group were mentioned in the order of
tioned in order, North America, Western
“providing information on buyers,”
Europe, South East Asia and Japan.
“specialization and subdivision of com-
Being classified by industry, the com-
panies,” “selection of dispatching
From February 18 to 20, ICA held a
panies’ desired export markets for
country according to forecast” and
Korea-China game investment mart in
wireless communication equipment,
“consistency of policy.”
Shanghai, China. The event purported
broadcasting equipment, high speed
●
to attract foreign investment for
internet/network hardware, digital multi-
Export Difficulties - Lacking in
Information on Overseas Market
media players, secondary batteries and
Most of the companies pointed to
projects and to consolidate the foun-
next generation displays are within
“insufficient information of overseas
dation of international exchange and
Western Europe. And, those for wireless
markets” as the greatest difficulty
networking. Six Korean companies
communication services, software, high
involved with their exporting activities.
including Boltsoft and 45 Chinese com-
speed internet /network hardware and
Other difficulties they encountered were
panies including the Beijing Gehua
computer related services included
pointed out in order of localization diffi-
Cultural Development Group partic-
China and Southeast Asia. North
culty, insufficient government support,
ipated in this successful gathering. ICA
America and Japan are the desired
market domination by foreign com-
signed a letter of intent (LOI) with the
markets for storage, security systems
panies, as well as, a manpower
Beijing Gehua Cultural Development
and digital contents firms.
shortage exclusive for an export and an
Group, the Chinese authority in charge
The Management of Foreign
Market Development Group and
Foreign Markets - Ministry of
Information and Communic
ation and Local Municipalities ,
Active, Primarily the US, China
and Japan
inferior business scale.
of digital content businesses to facilitate
Export Marketing Require
ments - Investigation of Target
Market per Item and Consultati
on of Export Strategy
the promotion of joint business enter-
Companies’ top priority requirement is
countries online game developers.
●
●
Korea-China game investment
mart held in Shanghai, China
beforehand and doing follow-up support
continuously. Some points to improve
●
domestic game companies and game
prises between Korea and China in the
IT sector. This meeting was intended to
encourage investment between the two
about export marketing. They need an
There were investor relationship (IR)
The surveyed companies participated
investigation of the target market per
sessions and individual consultations.
positively in the foreign market devel-
item and consultation for an export
The Chinese participants included
opment groups managed by the Korean
strategy. What they need shows no big
Beijing
Ministry of Information & Commun
difference even by industry group.
Shanghai Optic Communications
Gehua,
China
Netcom,
ication or local municipalities. By
Companies’ legal service require-
Development, Tencent, China’s largest
country, the companies took part in the
ments were listed in order of a con-
messenger company, and game com-
groups, preferably, which will develop
sulting service on import/export con-
panies such as Gamania Digital
the markets of China, North America,
tracts, intellectual property related ser-
Entertainment, Ubisoft, and Gamigo
Japan and South East Asia, with the
vices, and mediation/arbitration/legal
Online Entertainment. The Chinese
highest participation rate. Some advan-
proceeding services in a trade conflict.
counterparts expressed the high
tages
Market
Variation of requirements for each
interest in the Korean game industry
Development Group” project, which was
service item was not noticeable. It is
and willingness to make investments
used to achieve a high performance
same by industry group.
into it.
of
the
“Foreign
IT KOREA Journal _ 31
News
ICA will support Korean companies to exhibit their products in world famous IT fairs.
ICA will support local promising
ICA Supporting Fair Schedule
Korean small and medium IT companies, which are now experiencing dif-
No.
Name of Exhibition
Period
market because of insufficient financial
1
CeBit Hannover
3.18 ~ 3.24
Germany
and marketing capabilities in a way that
2
Telexpo
3.02 ~ 3.05
Brazil
allows them to exhibit their material in
3
Convergence India
3.18 ~ 3.20
India
world famous IT and communication
4
CTIA Wireless
3.22 ~ 3.24
U.S.A.
fairs. Particularly in such international
5
NAB
4.17 ~ 4.22
U.S.A.
6
SVIAZ/Expo-Comm
5.11 ~ 5.15
Russia
7
Communic Asia
6.15 ~ 6.18
Singapore
could be an exemplary system for
8
Supercomm
6.22 ~ 6.24
U.S.A.
advancing into foreign markets. The
9
Networld
7.02 ~ 7.04
Japan
various companies will take this oppor-
10
Expo-comm
7.21 ~ 7.23
Japan
tunity to promote “Broadband IT Korea”
11
ICT Vietnam
8.28 ~ 8.31
Vietnam
by exhibiting in world famous IT fairs.
12
CeBit Turkey
8.31 ~ 9.05
Turkey
13
PT/Expo-comm
10.26 ~ 10.30
U.S.A.
14
Cartes
11.18 ~ 11.20
France
15
Comdex
11.14 ~ 11.18
U.S.A.
16
CES 2005
2005.1.8 ~ 1.11
U.S.A.
ficulties in advancing into the global
fairs will provide good opportunities for
small and medium IT companies to penetrate into overseas markets, and it
ICA’s supports include the cost of
leasing exhibition space, the cost of
installing an exhibition booth, pre-marketing, the cost of holding events and a
joint meeting room.
32 _ IT KOREA Journal
Host Country
ICA Plans to Dispatch “IT Cooperation Group” Primarily to Emerging Markets.
ICA will be dispatching the “IT
country and by market for emerging IT
Cooperation Group” to the global IT
markets such as China, South East
markets this year in a way that pro-
Asia, the Central & South Americas, the
motes export by Korean IT industry and
Middle East and Africa, not entirely
helps small & medium IT companies
depending on exports to major IT
advance into foreign markets, which are
markets such as the US. ICA will select
now facing difficulties because of insuffi-
local IT core companies for about five
cient marketing and financial capabil-
items that are appropriate for each of
ities, in spite of excellent technical capa-
the advanced countries’ IT industry and
bilities.
to dispatch them to the advanced IT
The “IT Cooperation Group” will be
markets. ICA will select about 10 core
to the countries with big market potential
seeking actual performance results by
companies among “Korea’s IT First-
such as those usually found in devel-
developing a differentiated program by
class Product Makers” to dispatch them
oping countries.
ICA publishes report on “Long-term IT sector strategies for successful
conclusion of FTA negotiations
On March 16, ICA published a report
would benefit from all different types of
In addition, the report points out that
entitled “Long-term IT Sector Strategies
FTA’s including a Korea-Singapore
because the IT sector is a rapidly globa-
for A Successful Conclusion of FTA
FTA, a Korea-Japan FTA, a Korea-
blizing sector and because competition
Negotiations.” The report’s main thrust
China FTA, a Korea-China-Japan FTA,
and international specialization is pro-
is that the conclusion of FTA’s is
a Korea-US FTA and an ASEAN+3
nounced in the Asia Pacific region,
desirable for the development of the IT
FTA.
Korea would suffer considerable eco-
industries in Korea.
Considering the drastic re-arranging
of the world’s economic map fostered by
The positive effects include an
nomic losses if other FTA’s — such as a
increase of production and employment
China-Japan-Southeast Asia FTA — are
in the Korean domestic IT sector.
concluded without Korea’s participation.
the establishment of multilateral regional
communities such as EU, NAFTA, and
Economic spillover effect of FTA for the IT sector
AFTA and widespread implementation
of bilateral FTA’s, plus, the report
Categories
Production increase in the IT sector
(unit: 1 billion KRW)
argues that Korea, the fourth manufac-
Employmen
(unit: 1000)
turer of information communications
Korea-Singapore
49
1
equipment following China and Japan,
Korea-Japan
916
4
should actively promote FTA’s and it
Korea-China
4,127
18
Korea-US
4,903
21
Korea-China-Japan
5,058
22
ASEAN+3
5,593
24
predicts that Korea would benefit from a
domestic spill over effect of FTA’s.
In particular, according to the positive
analyses made in the report Korea
IT KOREA Journal _ 33
Beauty of Korea
eauty of Korea
photographer kang hong-kyu
[email protected]
NEWS
Exports News
Fishing-CAM Exports $10 Mil.
Amount of ‘Fishing Rods With
Camera’ This Year
display device.
Thanks to infrared and illumination
company’s total overseas supply contract now amounts to $35 million.
functions, an underwater scene can be
Since the second half of last year,
seen even at night. The equipment can
Telson has been promoting an export
withstand water pressure up to that
diversification concept for overseas
found 30 meters underwater. Through a
markets including China, the United
wireless transceiver, fishing activities
States, Central and South America,
can be seen or recorded in locations up
Southeast Asia, Taiwan, the Middle
to 1 kilometers away from the fishing
East, and Russia.
site.
Tel : 82-2-2140-1114
Tel: 82-53-588-1113
Last month, Fishing-CAM(www.
Fishing-CAM.co.kr) signed 1 million
USD supply contract with ACD
International, a supplier to Walmart, the
largest general merchandises store in
Telson Electronics Signs a $13
Mil. Contract for Mobile Phone
Exports to Taiwan
Telson Electronics to Export Ultrasmall Color Sliding Phones to
China
the United States. Fishing-Cam is con-
Telson Electronics(www.telson.co.kr)
tacting another distributor for its access
announce that it will export its newly
to the US east coast.
developed color sliding phone, which is
Earlier this month, as it was partic-
the world’s smallest, to China.
ipating in the Fish Tackle & Trade
According to the contract, 10,000
Exhibition in Beijing, it was contacted by
phones will be supplied and shipment
China WorldTV and signed a broad-
will begin in April.
casting contents contract with the
This mobile phone was developed by
company to supply Fishing-CAM’s video
Telson to aim for the world market.
contents.
Developed as a Telson brand product,
Furthermore, Fishing-CAM was
this is a world’s smallest color sliding
invited by Chinese fisheries authorities
phone(74mm x 39mm x 20.9mm). Two
types are available and each type meet
to participate in a fishing exhibition to be
held in Guangzhou, Guangdong in July.
Telson Electronics(www.telson.co.kr)
This week, Fishing-Cam will sign a con-
signed a supply contract with Taiwan to
tract with a Russian company to supply
supply $13.7 million amount of dual
6,000 fishing rods.
band mobile phones.
the CDMA and the GSM standards
respectively.
The Chinese company that signed the
contract is a distributor of mobile
Next month, its domestic Korean
The dual LCD folder type mobile
phones and communications equip-
sales will begin. This year, the company
phones that Telson will supply can
ments headquartered in Shenzhen. The
expects that its sales will amount to $10
produce 64 chords, have a camera
company has an extensive distribution
million by exports alone.
installed and have wireless Internet
network in Shanghai, Shenzhen and
specializes in GSM phones.
Fishing-CAM is a high-tech fishing
access capability. Telson will begin
rod. The rod’s specially manufactured
exporting this item from the end of this
In February, Telson Electronics
thin fishline is composed of eight
month, and the delivery will be com-
signed $1.85 million supply contracts
lines, including a power supply line
pleted by the end of next month.
with ARCOA and KeyPoint.
and a video line. The rod is connected
Last year, 2003, in August, Telson
A Telson authority says, “We have
with a camera that allows illumination
signed a $7.5 million contract with
successfully entered the GSM market
and infrared photographing. Under-
Taiwan’s ARCOA to supply the next
by signing contracts that amount to
water scenes can be seen on land
generation General Packet Radio
$150 million since the second half of
through a camcorder or a small
Service(GPRS) cellular phones. The
last year. Beginning with the world’s
36 _ IT KOREA Journal
NEWS
Exports News
smallest sliding phones that will be
Coordination, Electronics and Telecom-
Suite,” a security control and online
exported from April, we will continue to
muncations Research Institute (ETRI)
security service product, will be
release high-function and specialized
and the Agency for Defense Devel-
released in the first half of this year. The
phones which will include such types as
opment.
company’s strategy is to expand its
watch phones, smart phones, and multi-
Tel: 82-2-2057 - 6584~5
media phones.”
market base by entering the application
security market through an interlocking
Tel: 82-2-2410-1114
of its products with a system man-
SecuBrain’s Server Security
Product Debuts in Japan
NITZ Signs Contract With Japan’s
CSC to Export PC Security
Solution
agement software and fault tolerant
system.
Lee Byeong-cheol, the CEO of
SecuBrain (left) is celebrating the
signing of export contract to Japan with
the firm’s employees.
Tel : 82-2-568-4525
MedicalStandard to Export PACS
to Japan
NITZ(www.nitz.co.kr), an information
security company headquartered in
Daedeok Valley, signed a licensing con-
SecuBrain(www.secubrain.com)
tract with Japan’s CSC(headed by
announced that Hizard, a server
Omoki Kawanami) to export its “PC
security product, is going to be exported
Shield, “ which is a PC comprehensive
to Japan.
security solution.
This export is the first fruit of the
MedicalStandard(www.medical-
According to this contract, CSC, an
exclusive sales contract signed last year
standard.com) announced that it has
affiliated company of Mitsubishi Heavy
in September, with Miracle Linux, a sub-
signed a $400,000 contract with Japan’s
Industries in charge of System
sidiary of Oracle Corporation Japan.
JPD(Japan Pola Digital) to export its
Integration(SI), will assume the role of
Lee Byeong-cheol(Bryan Lee), the
“pacplus” solution, a Picture Archiving
technological support and direct sales of
president of SecuBrain, says, “This is
and Communications System(PACS)
the “PC Shield” within Japan and IIM, a
the first time a Korean server security
product.
software distributor, will be in charge of
business is delivering products to
A MedicalStandard spokesperson
the sales throughout Japan. Beginning
Japan. In March, we will export a
says, “JPD, which is on the verge of
from Mitsubishi companies, the CSC
server security product that will be
signing contracts with 5 or 6 hospitals,
and the IMM plan to expand its sales
used for Japan’s Electronic Govern-
will enter Japan’s Full-PACS and telear-
into the Japanese government, as well
ment Project.
diology market with MedicalStandard
as, the financial and business sectors.
SecuBrain’s goal this year is to
products.
PC Shield is a comprehensive
achieve sales of 2.5 billion won in
Last year, MedicalStandard sold the
security solution equipped with a host of
Japan. To do so, the company will forge
Mini-PACS solution to 40 hospitals,
functions including: email security, a PC
partnerships with 10 companies with a
including Nihon University Hospital and
firewall, malignant program blocking
nationwide distribution network until
the Full-PACS to three hospitals
and assets management. In Korea,
March in addition to the NEC, which is
including the Takahashi Central
NITZ’s customers include major organi-
its existing partner. By May, SecuBrain
Hospital.
zations such as KT, Korea Customs
will have local Korean partners.
Service, Office for Government Policy
Tel : 82-2-2282-6600
Furthermore, the “Hizard Security
IT KOREA Journal _ 37
NEWS
Exports News
Movain-InterJungBo to Export
Filtering Software to the United
States
to Verizon, the leading providers of
recognition distance with up to 10
wireline and wireless communications in
meters and a tag recognition speed of
the United States.
up to 1000 units per second. It can
Samsung Electronics explained as
overcome limits of control means and it
following: “It is symbolically important
is composed of reader, antenna, tag,
that Verizon, the largest CDMA service
and middleware. Capable of saving time
provider in the United States, has
and cost and improving productivity, it
decided to adopt Samsung’s rotary
can be applied to various fields
folder cameraphone for its high-end
including physical distribution, as well
cameraphone lineup”.
as, distribution and assets man-
This product is characterized by a
agement. HiTRAX will begin by the
high definition camera and folder that
exclusive distribution of Matrics
Movain-InterJungBo(www.movain.com)
can swivel 180 degrees. And, this facili-
products in Korea. By the end of this
signed an overseas sales contract with
tates photographig regardless of angles.
year, 2004, it will also release its own
Digital River, a US based company.
Thanks to an internal flash, photo-
reader and antenna by OEM production.
Thanks to this contract, from March
graphic imagery capturing is possible
Tae-seop, the CEO of the company,
onwards, Movain-InterJungBo will be
even under dark conditions. Up to 200
said, “Considering the fact that the UHF-
able to launch online sales at famous
images can be saved.
RFID market is in its beginning stage, it
software sales sites such as Amazon
A Samsung authority said, “This
is necessary to apply advanced
and BestBuy. The product, which will be
product that emphasizes technology
products to various fields as soon as
sold is called “Comjigi,” was developed
and value, will enhance the prestige of
possible, so that each industrial sector
by Movain-InterJungBo and it will be
Samsung’s high-end cameraphones in
can enhance its competitiveness.
marketed overseas under the name of
the US market. Samsung plans to lead
Through OEM production and export,
“WebW@cher.”
the US CDMA market by releasing high-
we will at the same time equip ourselves
functional cameraphones.”
with technological power.”
Digital River, an e-commerce outsourcing company, is an agency for the
Tel: 1588-3366
Matrics, which became HiTRAX’s
online sales at major software sites and
partner, has about 50 UHF RFID
its sales record in 2003 was more than
patents or patent applications under
$100 million.
Comjigi is equipped with five filtering
functions based on image recognition fil-
HiTRAX Signs Exclusive Contract
With Matrics for the Supply of the
UHF RFID in March 17
review and it is a RFID system supplier
to many companies including McCarran
International Airport, Boeing, Walmart,
tering, keyword, level, database list and
Coca Cola and Siemens.
an user defined blocking options. It can
Tel : 82-2-508-1188
also control Internet and computer
access time.
ClickQ Opens the Road for
Translation Software Export (Feb. 13)
Tel : 82-2-3484-4027
Samsung Electronics to Export
Rotary Folder Type Cameraphone
to Verizon (US)
HiTRAX(www.hitrax.co.kr) signed an
exclusive contract and a memorandum
Samsung Electronics (www.sec.co.kr)
of understanding with Matrics for OEM
announced that it has begun supplying
production of its UHF(860-960MHz)
of its rotary folder cameraphones, with
band RFID products.
180 degrees swivel camera and folder,
38 _ IT KOREA Journal
UHF RFID, is a new system with a
ClickQ(www.clickq.com), a company
specializing in translation software,
NEWS
Exports News
signed a contract with ASG, a US
service provider with more than 130
software distributor, for worldwide distri-
million subscribers worldwide including
bution of its products.
the United States, the United Kingdom,
mobile phone exported to Taiwan.”
TEL : 82-2-2140-1114
ASG will distribute the “Tranew,”
and Germany. VK’s products will be
ClickQ’s translation software, to
sold under the VK brand through
overseas markets through its distrib-
Unique Distribution Limited, Vodafone’s
DesignClipArt Will Begin
ution network. The two companies
major supplier.
Export of Its Application
reached an agreement for a joint mar-
A VK authority said, “The first
keting effort in China, aiming at Chinese
shipment will be the VG207, a
companies and US companies within
Europeanized version of the VG200
China. Profit will be divided up between
which was quite popular for its stability
ClickQ and ASG.
within the Greater China market. VG207
Tool to Japan
Tranew can translate Korea, English,
actively reflects the quality and con-
Chinese, Japanese languages in two
sumer needs of the European market.
directions. User’s inputs can be inte-
In March, a Europeanized GPRS ter-
DesignClipArt(www.mybuil
grated into a bi-directional database for
minal model(207i) will be released in the
der.co.kr), a software development
later use.
United Kingdom, France, Germany,
company, announced that it will
Gang Myeong-ju, the head of ClickQ
Spain and Portugal through Vodafone’s
supply “My-builder” — XML-based
research institute, said, “Tranew boasts
network. We are also negotiating for a
application development support
a comprehensive database of termi-
supply of 500 thousand units to be sup-
tool — to Japan’s Mitsui.
nologies and usages within various
plied for three months afterwards.”
industrial fields. And it supports major
Tel : 82-31-779-8018
Developed by DesignClipArt, Mybuilder is an XML-based application
languages including Korean. ASG has
development support tool that
guaranteed
enables reporting development, as
us
an
initial
sales
amounting to $1 million.”
ASG, a US software development
and distribution company established in
Telson Electronics to Export
World’s Smallest Sliding Phones
to Taiwan
well as, screen inquiry and data
input/output. The product has a considerable market share in Korea as
well.
1986, has a distribution network covering 45 countries and its sales in 2003
Telson Electronics(www.telson.co.kr) has
Beginning from its adoption by
was $156.7 million.
completed the development of world’s
Miraesoftware’s ERP, My-builder
smallest color sliding phone and signed
was supplied as Posdata’s SI devel-
contracts that amount to $4.05 million with
opment
Taiwan’s ARCOA and KeyPoint. The
Information Technology’s ERP
supply begins in April, 2004.
development tool.
Tel : 080-003-1114
VK to Export GSM Terminals to
Vodafone (VK200)
tool
and
Daesang
This product was developed by
It is also used as part of a Seoul
Telson for overseas markets. The new
Metropolitan Government project’s
VK Corporation(www.vkcorp.co.kr)
models, which are the world’s smallest
report development.
signed a contract with Vodafone(UK),
sliding phone(74mmx39mmx20.9mm),
In addition, there also was a
the world’s largest mobile communica-
are of two types: the CDMA model and
bundle-supply to Medialand’s DMS
tions company, to supply 5000 GSM ter-
the GSM model. An authority of Telson
solution as a report development
minals by the end of this month. It also
says, “Since the second half of last
tool for workplace users
announced that it is undergoing a
year, we are supplying the Telson brand
Last year, DesignClipArt began to
follow-up negotiation process for a
and the ODM-based CDMA/GSM
explore export possibilities and this
supply of 500,000 mobile phones in a
mobile phones to the Taiwanese
is its first achievement.
three-month’s period.
market. We are very successful and our
Vodafone is a mobile communications
Tel : 82-2-452-7030
GSM model is the best selling Korean
IT KOREA Journal _ 39
NEWS
Exports News
Mirinae Entertainment Signs
Contract With Thailand’s Liberta
to Export “Khan”
arrangement. The parts will be
An authority of the company says,
has occurred since the Ministry of
In March 11, Mirinae Entertainment
“Although the CDMA450 MHz market is
Science & Technology’s first established
(khan.mirinae.com), an online game
a niche market, it offers good prof-
a technology transfer center in a public
company, signed a contract with Liberta,
itability and good prospects for growth.
institute.” Tel : 82-42-869-4793
Thailand’s IT business, to export its
Under the Chinese government’s
online game — “Kahn.” Under the con-
directive, sales activities were discon-
tract, Mirinae Entertainment get an
tinued for a few months. With the
earnest of $200,000 and a running
resumption of the sales of new 450 MHz
royalty of 35%.
products, our efforts in other markets
Liberta is a manufacturer of items like
assembled in China for sales.
This is also the first time a transfer
Suprema to Supply Fingerprint
Recognition Solution to Three
Companies Including Fujitsu
will be boosted as well.”
PCs, notebooks, and digital cameras.
Gigatelecom enjoys the largest share
This manufacturer has 200 branches
in Romania’s 450 MHz market and this
throughout Thailand. It is also actively
Korean firm is preparing for an entry to
pursuing expansion into Southeast Asia
other 450 MHz markets including
and India.
Russia and Portugal.
Jeong Jae-seong, the CEO of the
There are about 20 CDMA 450 MHz
company said, “We expect that we can
mobile phone markets worldwide
become a major player in the online
including China, Romania, and Russia.
market of Thailand within six months
transfer experts to achieve this feat.
Suprema(www.suprema.co.kr)
announced that it recently signed $1
Tel : 82-2-558-6300
because Liberta has sufficient capital
million contracts with Fujitsu, BMF and
and a distribution network to support us.”
ST Microelectronics for a supply of finger-
The background of the storyline of
“Kahn” concerns the Mongol Empire. It
KAIST Exports 3D Thin Film
Measurement Technology to the US
Tel : 82-2-514-6333
Gigatelecom to Export 450MHz
Mobile Phones to China
Gigatelecom(www.
gigatelecom.com), a
Through these contracts, Suprema will
supply a sliding-type fingerprint recog-
is a popular online game that can be
played in low-specification PC’s.
print recognition modules and solution.
The Korea Advanced Institute of
nition module and solution to Fujitsu and
Science and Technology(www.kai
a fingerprint recognition solution and
st.ac.kr) announced that its 3D thin film
module(a pressure method product that
measurement technology developed by
can withstand extreme conditions char-
Professor Kim Seung-u(49) of the
acterized by intense humidity and high
Department of Mechanical Engineering
temperatures) to BMF, a company spe-
will be exported to ZYGO, a world-
cializing in sensors.
famous
electronic
measurement
equipment company.
The fingerprint recognition module that
will be supplied to Fujitsu is smaller than
manufacturer of mobile phones,
The exported technology is equip-
existing products and it can be applied to
announced that it signed a 10 billion
ment for the monitoring of the TFT-LCD
portable equipment such as mobile
KRW contract with Parson, a Chinese
panel’s production process. It is used for
phones. Suprema adds that the product
distributor of mobile phones, on March
the measurement of multi-layered trans-
also solved factors that limit mobile phone
10. Gigatelecom will supply the
parent thin film.
quality such as processor speed.
CDMA450 MHz mobile phones from
March to September this year, 2004.
The mobile phones that will be
Under the contract, an earnest of
To ST Microelectronics, Europe’s
$20,000 and a running royalty(2.5% of
large semiconductor company, Suprema
sales) will paid to KAIST.
will supply its fingerprint recognition
shipped are of the “GSD 456 model with
Dr. Kim Hui-tae of the KAIST Center
solution and module that uses the
a color LCD. Gigatelecom will export
for Technology Transfer and Licensing
quantity of electric charge measurement
them under a semi-knock down(SKD)
said, “It took nine months for technology
method. Tel : 82-2-571-9305
40 _ IT KOREA Journal
NEWS
Exports News
Yaho to Export Mobile Content
and Solution to Mexico
made possible thanks to its partnership
Colombia, Argentina, Venezuela, etc.
with Telcel, the largest service provider
Tel : 82-2-3660-5800
in Latin America. It is also expected that
Pantech’s business activities in the
Latin American mobile phones market
Yaho Communication(www.yaho
will be greatly helped by Telcel.
Taijin Media Shipped 1.2 Bil. Won
Worth of Electronic Indices to Japan
hpia.com), a mobile content provider,
Pantech will supply 40,000 units by
signed a contract with Mexico’s a
the end of this month. Within the first
Taijin Media Co., Ltd.(www.taijin
content provider, to supply a Mobile
half of this year, five models will sup-
media.com), a specialized maker of
Karaoke service and related solution.
plied and a total of 300 thousand units
karaoke system has signed a supply
will be exported to the Mexican market
agreement for about 1.2 billion won
service
by the end of this year, 2004. The two
worth of electronic indices with Daiichi
provider, through El Limon, will offer the
models exported this month are the
Kousho of Japan.
service. To do so, El Limon is working
“Pantech Fotorex,” with a 260,000 color
Taijin Media will have shipped 5,000
with a local terminal company to revise
LCD and a 310,000 pixel camera and
units of electronic indices and 4,000
specifications and authoring tools.
the “Pantech Rubi,” a color phone
rechargers by April of this year, 2004.
Because this contract specifies both a
without a camera.
From April, Telcel, Mexico’s largest
mobile
communications
Daiich Kousho is the No. 1 karaoke
minimum guarantee and a running guar-
Telcel, is a subsidiary of America
system company in Japan in terms of
antee, the contract will be a good
Movil, the largest communications
the market share. Taijin Media has
example of creating a real profit through
company in Latin America. It is the
exported about 50 billion won worth of
a content export. Yaho and El Limon will
largest mobile communications service
electronic indices from 2002 through
extend their comprehensive partnership
provider with branches in Brazil,
2003. Tel : 82-2-366-4700
for joint development and marketing
promotion in the Lain American mobile
market in the fields of mobile games,
contents, etc.
This contract is the latest in the series
LG Cable Has Contracted With a US Company to
Export Shipboard Cables
of Yaho’s overseas successes. In
November of last year, Yaho estab-
LG Cable(www.
lished a local subsidiary in Hong Kong.
lgcable.co.kr) dis-
of
In December, it signed a supply contract
closed on February
Engineers), both of which are very
with Entel, a Chinese mobile content
4, 2004 that it con-
strict in their quality and safety stan-
provider.
cluded an export
dards.
Pantech(www.pan
Electrical
and
Electronic
contract with Ge-
This export order will be shipped
neral Dynamics of
to General Dynamics successively
the US, the world top maker of avi-
from the coming month March, and
ation, space and munitions, on the
it is expected to receive more than
supply of $6 million worth of ship-
U$ 10 million worth of orders in the
board cables to be installed in a US
future.
Tel: 82-2-3444-5782
Pantech Enters Latin American
Mobile Phones Market
Commi-ssion) and the IEEE (Institute
war vessel of 40,000 tons.
The company recorded a sales of
tech.co.kr) announced
It is the largest export quantity of
more than 45 billion won in this sector
on the sixth of this month that it
shipboard cables on a single scale in
and it plans to achieve a sales of 65
released two GSM mobile phones within
Korea. LG Cable’s shipboard cables
billion won, an increase of 45%, this
Mexico City and that the Korean firm
had been certified by the IEC
year, 2004.
celebrated the event.
(International
Electrotechnical
Tel : 82-2-2189-9114
Pantech’s entering the market was
IT KOREA Journal _ 41
NEWS
Exports News
KDMedia Signed a Contract to
Export 2 Mil. DVDs to Japan
Lim Gi-jong, the president of the
The company’s growth speed is fast,
company, said, “In reality, Korean
too. Following an export of $30 million
venture companies’ penetrating into the
worth in 2002, it shipped $70 million
KDMedia Co.,Ltd.(www.kdmedia.net)
GSM market is as difficult as ‘a camel’s
worth last year. Plus, the company has
disclosed on February 3, 2004 that they
walking through a needle’s eye’ due to
been awarded the “Export Trophy” for
executed an export contract with
the larger companies’ sales distribution
two consecutive years. Innostream took
Japanese DVD specialist M&O Creation
network and brand power,” and he con-
over Innolinx, the CDMA mobile handset
Company for about 2 million units of
tinued, “We can obtain noticeable
maker, in order for them to develop into
DVD titles. The estimated contract
results because we have everything in
a medium company and they increased
amount is 1.5 billion won.
readiness for the global market since
their production to 200,000 units per
our establishment.”
month.
KDMedia, which advanced into the
Japanese market in 2002, has supplied
“Innostream” is a well known brand of
Lim Gi-jong said, “We will reinforce on
the products to 10 Japanese com-
mobile phone especially in China, its
a large scale the research and mar-
panies. The company expected a sales
main market. Acccording to the survey
keting manpower this year, as well as,
of 12 billion won and an increase of
of e-Price, the special mobile phone
launch 10 kinds of new products, at
43% compared with last year in the
web site of China, at the end of last
least, onto the global market.” He dis-
DVD media sector. Tel : 82-2-861-7711
year, “Innostream” ranked 1st in popu-
closed, “We will achieve a sales of
larity for two consecutive months
KW400 billion and an operating profit of
excluding “Nokia” and “Motorola”.
40 billion won this year. The company is
Innostream Shipped Its Own
Brand of GSM Mobile Handsets.
The Korean company will be
advancing into Europe, the home for
GSM mobile phones, following the
also scheduled to be listed on KOSDAQ
in the 1st half of this year, 2004.
Tel : 82-31-707-3860
success in the Chinese market.
A local venture company advanced into
the GSM mobile handset market with its
KT Launched On-Line Game, “Cronous” in Thailand
own brand attracting an unusual amount
KT Corp.(www.kt.co.kr) started to
of attention from the industry.
The company is Innostream Inc.
service the on-line game “Cronous” in
(www.innostream.com). Innostream,
Thailand from the middle of this
established in 2000, has been exporting
month, on which it signed an export
GSM mobile handsets under the brand
agent
name of “Innostream” to China, its main
Interactive.
agreement
with
Lizard
market, they also export to the US,
KT held a service opening cer-
Vietnam, Hong Kong and Russia. The
emony on the 15th the Thai press and
synergy
company achieved a sales of 120 billion
150 concerned people, together with
awareness gained through KT’s
won last year and it has kept growing by
Bigcell Media, the Thai service
broadband project and Korean on-
more than 200% every year.
provider of “Cronous” in attendance.
line game technology. Beginning with
effect
of
corporate
The GSM mobile handset market is
On the day of the ceremony, 10,000
Thailand, we will progress through
an arena for such major companies as
users or so connected to the web site
the game business targetting the
Nokia and Samsung Electronic, and
of “Cronous”, so it was a smooth start.
global market, which of course,
most of local leading or venture mobile
Kim Han-suk, the head of KT’s
includes such areas as Asia, North
handset makers supply the products
Global Business Division, said, “It is a
with
model business, which creates a
an
ODM(Original
Manufacturing) order.
42 _ IT KOREA Journal
Design
America and Europe.
Tel : 82-31-727-2860
NEWS
Exports News
HyVISION SYSTEM Supply Test
Equipment for Mobile Camera
Phone Modules to Amkor
matic test equipment for mobile camera
phone modules, the main item of this
year. Tel : 82-31-735-1573
Daewoo Electronics Ship
the Parts for Microwave
Ovens to Galants of China
HyVISION SYSTEM Inc.(www.hy
Eolith Supplies Mobile Game to
China
vision.co.kr) has disclosed that they
started mass production of automatic
Daewoo Electronics(www.dwe.co.kr)
focusing and test equipment for mobile
has revealed that they will ship
camera phone modules (Model : HVT-
“magnetron”, core parts of microwave
300A) and they have concluded a con-
ovens, to Galants of China, the
tract with Amkor Korea recently on the
largest microwave oven maker in the
supply of this equipment.
world. According to the company
source, the Korean company has
The equipment focuses the lenses
gotten a favorable response from
automatically and tests the performance
of the image sensor and images as well.
Eolith Co., Ltd.(www.eolith.co.kr) has
Galants, since it started exporting a
And, it can do all the necessary opera-
concluded a contract with a Chinese
small quantity from October of last
tions in the assembling and testing of
game company to provide the service
year, plus, it has recently agreed to
camera modules automatically and col-
for the mobile game “Phoncoco” or
supply 1.5 million pieces of magnetron
lectively.
“Raccoon”. “Phoncoco”, which was
by June of this year. Daewoo Electron
HyVISION SYSTEM first in Korea
developed by Atoaz of Japan, was an
plans to supply 1.5 million pieces
developed the test system for the
arcade game, and it was known rather
more in the 2nd half of this year, 2004,
CMOS image sensor and provided
as “Raccoon” than “Phoncoco” in Korea.
and it also plans to supply to
more than 50 units to the related com-
Eolith, on the 13th, has secured from
microwave oven makers in countries
panies. Furthermore, the firm plans to
Atoaz of Japan, which has the original
supply the automatic test equipment
copy right, the right of servicing the
As Daewoo starts exporting mag-
additionally to Amkor Korea as
mobile game “Phoncoco” in China for
netron, it will be increasing their pro-
HyVISION increases production of
two years.
duction from last year’s 5 million pieces
mobile camera phone modules.
A concerned employee of the
company said, “We have already
Eolith will receive a down payment of
$30,000 with a running royalty of 40% of
sales from the Chinese company.
other than China.
to 7 million pieces or so this year.
A concerned employee of the
company said, “Upon deciding on the
received orders for the automatic test
Besides “Phoncoco,” Eolith has
exports, we have been putting into full
equipment from buyers, not only in
recently signed a contract with the same
operation our production lines,” and
Korea, but also in Japan and Taiwan.
Chinese company on the supply of four
he continued, “We plan to increase
As buyers’ inquiries are rushing in, our
kinds of other mobile games, with the
the export quantity by enhancing the
technical capabilities are well recog-
titles “King of Fighter 2001,” “Metal Slug,”
productivity and operation rate.”
nized from the companies both in Korea
“Samurai Showdown” and “Fatal Furor”.
and abroad so much so that we could
Magnetrons are core parts as they
Jeon Ju-Young, the president of
create the electromagnetic waves in
Eolith, said, “Taking this opportunity, the
microwave ovens, which are pro-
The company is expected to record a
main business of Eolith will quickly
duced by seven companies in the
sales of 13.2 billion won this year, 2004,
change from arcade games to mobile
world including three Korean com-
by selling exclusive tool kits for the
games. And, we will speed up the
panies Samsung Electronics, LG
image processing with USB2.0, high
expansion of mobile games not only in
Electronics and Daewoo Electronics.
performance surveillance cameras and
Korea but also in foreign countries.”
industrial cameras, as well as, auto-
Tel : 82-2-543-0169
not accept export orders.”
Tel : 82-2-360-7114
IT KOREA Journal _ 43
NEWS
Exports News
PIOLINK Eecuted a Sales
Contract of L4/L7 Switches in
Japan
PIOLINK, Inc.(www.
piolink.co.kr) has con-
Moon Hong-joo, the president of Pio
such as CompUSA, Amazon, Goodguys
Link said, “We will place ourselves as
and Futureshop, following its business
the leading export company of multi-
talks with those companies to supply a
layer switches this year with a priority on
total of $15 million worth of goods per
aggresive marketing and quality
annum.
products.”
At the CES show, Nexway (www.next
cluded a sales contract
-way.co.kr),also, formed export agree-
with Ampere(www.ampee.co.jp) of
ments with four world-renowned distrib-
Japan, the network solution provider, to
market in Japan.
Successive Hits in MP3 Player
Shipment in Early 2004
PIOLINK will supply Layer(L)4/7
ution companies, like the American firm
TDK, to annually furnish 1.5 million MP3
players.
switches, server load balancers, virus,
As a result, this year 2004, Nexway
as well as, packet filtering solutions all
will offer 80,000 units to TDK and
over Japan via Ampere’s sales and dis-
300,000 units to Lexar.
tribution networks.
In addition, Nexway will start to
PIOLINK has built up a sales network
explore the European market by suc-
covering all of Asia by securing Ampere
cessively furnishing five models such as
as its new business partner after it
their 1” hard disc type model to NEC
signed a sales agreement with Sun
Europe.
Power of Taiwan that covered 10 Asian
Digitalway Tel: 82-31-788-5376
countries last year.
“Pantech” Brand Advances Into
Russia
Hyundai MultiCAV to Supply
Pantech Co., Ltd.(www.pantech.
PCs to Japanese Company,
Applied
co.kr) has launched four kinds of mobile
From the early part of 2004, Korea’s
handsets with the brand of “Pantech”
leading MP3 player suppliers such as
and they are targeting Russia’s high and
middle price market with them.
Hyundai MultiCAV(www.multicav.
Digitalway and Nextway have shown a
co.kr) recently revealed that it
smooth start in their exports by succes-
Pantech sold 800,000 units of
formed an agreement with Applied, a
sively making export contracts with
mobile handsets to the Russian market
Japanese distribution company for
various world-famous contribution and
with the forecasted market size of 13
computer goods, to annually supply
IT companies.
million units this year, 2004, and they
them with 30,000 PCs.
Digitalway(www.digitalway.co.kr)
will be increasing their market share
Through the contract, Hyundai
revealed, on January 18, 2004, that it
MultiCAV is scheduled to ship
had $50 million worth of export negotia-
Lee Sung-kyu, the president of
30,000 PCs (worth 22.2 billion won)
tions at the CES 2004 show(January 8-
Pantech said, “Having advanced into
by the end of 2004. The initial
11) held in Las Vegas, U.S.A.. It
the Russian mobile phone market, we
shipment is slated for March.
reportedly contracted with Best Buy in
could also aim at the European
the US.
market, of which the entry barrier is
Dealing in computer hardware
and software, Applied is a distributor
running
26
discount
Last February, Digitalway launched
by 10%.
rather high.
stores
their hard disc type MP3 players
Exporting our own brand products to
throughout Japan. Its annual sales
(HD200) and their flash memory type
27 countries this year, we will cement
reaches $200 million
ones in the US. Digitalway is, also, in
our market position as a true global
the midst of working level negotiations
major company.
Tel : (82-31)735-8080
with big foreign distribution companies
44 _ IT KOREA Journal
Tel : 82-2-3660-5800
NEWS
Exports News
ERAE Electronics Industry
Supplies PDP TV to Department
Stores in the US
Signing a contract
of
amount
in
of
an
$50
for the PDP TV.
David
Jung,
PDP TVs and 3,000 LCD TVs into the
ERAE
European marketplace while trying to
Electronics, said that “Including around
CEO
of
open up the markets in France, Spain
$50 million of PDP TV supply, the
and Italy.”
company is planning to sell the total of
The company is also scheduled to
40,000 PDP TVs which amounts to $80
perform a brand marketing in the
million in the US market.”
Korean domestic digital TV market as
million with the
The company is also scheduled to
biggest S depart-
construct a local production and sales
ment store, in the
system with strategic alliance with a US-
US, ERAE Electronics Industry Co.
based company.
soon as the takeover of E-Tronics is finished at the end of February.”
Adopting the brands ‘Inkel’ and
‘Sherwood’, which boast a high recog-
(www.erae.com) is accelerating its
ERAE Electronics Industry will start to
activity in the North American digital TV
supply 42-inch SD PDP TVs (model
domestic
marketplace. Having a meeting with the
EPT-4200AN) into the North American
company’s PDP TV, LCD TV brand
high-level managers from the S
market in an OEM (Original Equipment
names, ERAE Electronics is expected
department store at the CES Exhibition
Manufacturing) method starting in
to get a good brand marketing effect
booth in Las Vegas, the two companies
February, 2004.
for themselves.
ironed out the difficult matters con-
He also added that “until this coming
cerning the export amounts, and prices
March, the company will ship 6,000
nition product name among the Korean
consumers,
as
the
Tel : 82-2-861-6804
NanumSoft Made a Big Hit in Desktop Management System
Exports
Having specialized in the development
of
computer
million worth of its Korean produced
that takes place in the process of
remote PC-management.
software,
material over the next five years. This
NanumSoft just announced that the
March, as agreed to in this agreement,
Moreover, the NanumSoft program
company recently exported to Japan
the company commenced the initial
allows the operator to recover com-
and Brunei its desktop management
shipment of its exported wares. At the
puters in trouble by using server pro-
system, the ‘Secu TCO’, developed by
same time, NanumSoft is eagerly pur-
grams at his own PC and to remove
this Korean company’s own in-house
suing shipments of its software
illegal software programs in those
technology.
products
computers.
into
the
areas
of
From the end of last year, 2003,
Southeastern Asia and Europe, as
Says the firm’s president Min
NanumSoft has supplied its new software
well as, the firm is in the process of
Gyong-sin, “PC-management pro-
program to 10 PC room agents of
active export negotiations with
grams are widely applicable to
Softbank in Japan which opened in
Centerzone of Denmark and Schuratz
schools, educational institutes and
Nagoya, Fukuoka, Osaka and other cities.
of Germany.
companies’ computer rooms. We have
This year, 2004, NanumSoft expects to
The new software program by
made a successful advancement into
rake in 3 billion won via additionally sup-
NanumSoft combines data restoration,
the world markets thanks to our heavy
plying to at least 100 agents there.
disaster prevention and security func-
investment and thorough preparation.
In addition, last October, 2003,
tions. With it, users can save consid-
Hence, from this year, 2004, we
NanumSoft concluded a contract
erable costs in managing networks
expect to experience an impressive
agreement with Delensia, a software
and several tens or several hundreds
growth by our company.”
developer in Brunei, to export $12
of PCs and improve the weak security
Tel : 82-62-350-0651
IT KOREA Journal _ 45
NEWS
Exports News
TOVIS to Ship $3 Million Worth
of Casino Monitors to Australia
develop a good reputation with
and LCD monitors for industrial and
Australian customers. the Korean firm is
casino uses and supplies the IGT of the
expected to receive more than $5
US, the biggest casino game machine
million worth of additional orders next
makers in the world. The Korean firm
year.
expects this year’s sales to top 35 billion
Based in Sydney, the Australian
counterpart to TOVIS, Bright Mac
won, up 52% from last year.
Tel: 82-33-763-2125
International is the biggest supplier of
game-related products in Australia.
Says company president Kim Yongbeom, “These contracts with the
Mirae Energy Industry Exports
ESS System to the US
A specialized manufacturer of monitors
Australian company are meaningful in
for industrial and casino uses, TOVIS
that our company successfully made
Mirae Energy Industry(www.ess2.
Co., Ltd. (www.tovism.com) recently
inroads into one of the world’s ‘Top 3’
com) will ship an ‘ESS system(Electric
announced that it has formed an
game monitor markets. Until last year,
Saving & Safety Control System)’ to the
agreement with Bright Mac Inter-
we have concentrated on the American
US. With making a MOU in October,
national, an Australian distributor of
and European markets.
2003 of at least $10 million worth of
game machines, to supply monitors for
use in casinos.
However, entering this year, 2004, we
exports a year with FCU Group in the
have substantially constructed a glob-
US, Mirae Energy Industry received an
LC, which amounts to $250,000.
Through this contract, this year, 2004,
alized supply system by expanding our
TOVIS is scheduled to ship at least $3
markets into Australia, Latin America
million worth of casino monitors to
and Asia.
RCS, the US company, which
adopted the ESS system, is a major
Australia, one of the world’s “Top 3”
Established in 1998, TOVIS has spe-
subsidiary in the FCU Group; fur-
game monitor markets. If its products
cialized in producing and selling CRT
thermore, RCS is known for its
excellent fund raising ability proven by
the takeover of the AlpsResort,
Gangwon province, Korea, from
Haneolsoft to Start ‘Outpost’ Service in Southeat Asia
Morgan Stanley.
Mirae Energy Industry is expecting
the arrival of the first LC to be a chance
company of the Southeas Asia of
Tera Japan is publishing various online games.
to expand its US exports.
The ESS system, which was designated as the No.1 electrical power
Do Hyun-woo, CEO of Haneolsoft
new technology by the Korean
said, “With an increasing interest in
Ministry of Commerce, Industry and
Haneolsoft Co. (www.haneolsoft.
military games within the Chinese and
Energy, can control loads through a
com), an on-line game developer,
South-East on-line game markets, we
‘soft switching system’ which can
revealed that it signed a contract with
could make a contract with good
control electrical power below one six-
Tera ICT Malaysia (CEO Tom
terms with Tera ICT Malaysia”.
tieths of a second.
Tamura) to export its ‘Outpost’ game
to Malaysia and Singapore.
The terms of this contract is a
While Honeolsoft is starting the
Accordingly, without the happening of
localization of the games, which will
a high frequency and a falling-off in effi-
be
and
ciency, 30% of power saving ability is
$120,000 deposit, plus, 30% of the
Singapore, an open beta is also
possible and electrical leakage/shock
total sales.
scheduled to begin in this year.
can be prevented.
Tera ICT Malaysia, a subsidiary
46 _ IT KOREA Journal
provided
to
TEL : 02-546-9460
Malaysia
Tel : 82-2-2272-8289
NEWS
Exports News
TECHMATE Exports Set Top Box
in the Amount of 23 Billion Won to
Turkey
TECHMATE Corp, a
digital communication
which TIM is suppling.
global market by joining various interna-
MAXON Telecom Co. explained that
tional software conferences held in
“TIM will introduce a Maxon camera
China, Singapore and the US and by
phone in the promotion targeting mobile
holding large-scale road shows. This
phone agencies nationwide.”
year’s shipment goal is set at $4
Tel : 82-2-2008-0700
million.” Tel: 82-2-6000-3456
equipment specialist,
announced that it will
export set top boxes which amount to
about 23 billion won to ATMACA, a
middle-power
home
appliances
company in Turkey.
Miracom Inc. to Ship $1 Million
Worth of Software Programs to
the Chinese and American
Semiconductor Chip Makers
3D On-Line Game ‘Yulhyeolgangho’ Exported to China
MGAME Corp. (CEO Shon Seungchul), the ‘Yulhyeolgangho’ service
The company’s exported items are
the ‘YE-2000 CI Plus’ and ‘YE-2000
An IT solution
provider (publisher), signed a contract
Plus’, and they will be supplied until
provider, Miracom
with Seventeen.com (www.17game.
28th of next month. Last year, 2003,
Inc. revealed that it recently formed an
com), a Chinese game provider, to
TECHMATE had shipped set top boxes
agreement with several semiconductor
export ‘Yulhyeolgangho.’
of the total of 39.6billion won to Turkey,
chip companies in China and the US to
According to the terms of the export
the Middle East and Europe.
export $1 million worth of software pro-
contract, the initial price of the license is
grams.
at $1.2 million and after the service is
Song Kyung-sik, CEO of Techmate
said “Over 20 million new users were
Miracom Inc. has also made a con-
started, the running guarantee is 27% of
created in Turkey when the analog
tract with the Chinese corporation
sales amounts. As the terms of the con-
broadcasting system was changed to a
(CPS) of ChipPac, a subsidiary of
tract are of the best level in the game
digital
in
Citicorp and a specialist in semicon-
business, the company will first receive
December of last year, and we com-
ductor packaging and testing, to supply
investment funds before the regular
posed a high-valued product lineup to
$600,000 worth of integrated production
service is open.
strengthen the market strategies.”
management solution. Miracom, as well
‘Yulhyeolgangho’ developed by KRG
as, received an order for an equipment
soft, which was merged with E net in
automatizing project worth $400,000
June of 2003, is a game based on a
from HAS Semiconductor which is
popular comic book story. After the
based in Oregon, U.S.A. and the
close beta service started for three
Korean company plans to furnish its
months, the subscribers of this game
XML-based factory automation solution
have been over 500,000, thus attracting
‘FA Mate’ to the US firm.
gamers’ interest.
broadcasting
system
Tel : 82-31-706-8844
MAXON Telecom to Export
Mobile Phone in Italy
MAXON Telecom Co. (www.maxon
.co.kr) announced that it made a contract
Under the agreement with CPS,
Park Kyu-hyun, CEO of E net,
to supply a GSM camera phone(model
Miracom Inc. is scheduled to replace
revealed that “because the ‘Yulhyeol-
MX-7990) in an amount of about 4.7
CPS’s existing production man-
gangho’ game is based on an Oriental
million euros with the number one
agement solution by Camster of the
martial art, the opening into the Chinese
telecommunication carrier in Italy with its
US with its own solution ‘MES Plus.
market brighten the possibility of
shipping of 28,000 units in the first quarter.
Moreover, the Korean company
entering into the markets of Taiwan,
Embedding a multimedia message
expects an additional agreement to be
Japan and Thailand and the regular
service (MMS), a mobile Internet
reached in March whose worth would
service on this game was started in
service (WAP) and a telecommunication
be $1 million.
Korea and China simultaneously.’’
carrier service(SAT), the phone can
Says Baek Won-in, president of
More information on ‘Yulhyeolgangho’
perform data services, image trans-
Miracom Inc., “Plans are afoot to make
game can be gotten from the homepage
mission and mobile banking services,
full-fledged efforts to advance into the
(www.yulgang.com).
IT KOREA Journal _ 47
NEWS
Exports News
KORNIC Systems Corporation
Exports LCD ODF System to
Taiwan
which amounts to $3.5 million in
the $7 million worth of agreement con-
February and an order in March that will
cluded with the same counterpart on
come to 3,200 PDP and LCD TVs
November 16, last year.
(about $7 million).
KORNIC
Systems
Under the agreement, this year, 2004,
Corporation
Considering a growth trend in the
Oullim should make an initial shipment
(www.kornic.co.kr), a semi-conductor
European market, the company is
worth $5 million; and with more than 60%
provider, announced that it received an
expecting that the estimated sales
of the firm’s products being sold in
order to supply a ‘LCD inline ODF
amount of $35 million in exports can be
Japan, the contracted term is automati-
system’ at an amount of $6.4 million
achieved.
cally extended, thus letting Oullim supply
(7.64 billion won) from Toppol Opto
Electronics Corporation in Taiwan.
ERAE Electronics Industry, recently
an additional $7 million worth.
spotlighted due to its alleged takeover of
Unlike the last contract, when the
An ODF (One Drop Filling) processing
E-Tronics and its contract with the US-
products to be shipped were confined to
is to inject liquid crystal between TFT
based Sears, is expected to keep its
the small to medium-sized virtual private
glass and C/F glass, and has its superi-
sales growth by supplying digital TVs to
network (VPN) equipment SECURE-
orities onto the existing differential
overseas big logistics companies and
WORKS
pressure processing in that its produc-
upon winning from LG Electronics an
agreement was made for various
tivity and cost is reduced. Accordingly,
order on CDMA terminals.
security products, including a large VPN
many LCD manufacturers have adopted
Tel : 82-2-861-6804
the ODF processing.
LDC equipment with domestic manufacturers and the company won the order
by defeating Japanese manufacturers.”
this
year’s
equipment SECUREWORKS V3.0, integrated security management solution
One source at the company said,
“Since 2000, KORNIC has developed
Easywall,
and a VPV Client.
Oullim Information Technology
Information to Export $12 Mil.
Worth of Security Solution to
Japan
The system delivery is completed until
Says Nozawa Shinko, the managing
director of Secom Choshinetsu,
“Recently, the importance of internet
security is emerging as a hot issue. So,
we decided to form the additional con-
the coming June 11. Tel : 82-31-379-2700
tract to meet the increasing demand for
security solution. By being equipped with
various security products ranging from
ERAE Electronics Industry
Increases PDP LCD TV Shipment
to Carrefour in Europe
small and medium-sized equipment for
branch offices to large equipment
designed for integrated security management solutions, we can enjoy the
ERAE Electronics Industry Co.
effect of our prior occupation in the
(www.erae.com) announced that the
Picture: Lee Byung-hyeon, director of Oullim
orders from Carrefour, the biggest
Technology Information, and Nozawa Shinko,
logistics company in Europe has rapidly
been increasing.
managing director of Secom Choshinetsu,
signed export agreements for Oullim’s
security products.
Since October, 2003, ERAE has sup-
Japanese firewall and :VPN market.”
Lee Byung-hyeon, director of Oullim,
predicts, “Besides firewall and VPN
products, we are seeking to export
recently released worm-preventing solu-
plied the PDP and the LCD TV to
On February 14, Oullim Information
Carrefour, and the Korean company has
Technology Information Inc. concluded
also added its TV receiving tuner
an agreement with the Japanese security
Oullim’s Japanese counterpart Secom
embedded products which appeals to
company Secom Chshinetsu to export
Choshinetsu was founded in 1967 and it
customers in its quality and price. ERAE
$12 million worth of security solutions.
has grown into a promising specialized
Electronics Industry has already taken
Through this contract, Oullim gained
in an order of 1,700 PDP and LCD TVs
$5 million worth of orders in addition to
48 _ IT KOREA Journal
tions, whose result is expected to be
visible soon.”
security firm with an annual sales reaching
20 billion yen. Tel: 82-2-2142-0596
NEWS
Exports News
Infravalley Exports Ring-Back
Tone Solution to the Philippines
nience store and a pharmacy in the
fairs related to the video and security
Tokyo area through a Japanese
field.
importer’s agency.
The ‘CUMI’ not only hs security moni-
Infravalley Inc. (www.infravalley.com),
The price of the product is 190,000
toring functions such as a remote
a mobile solution specialist, announced
yen(about 1.9 million won). With this
control, monitoring abilities and
that it supplied a ring-back tone service
export as its momentum, Seculix will
recording through the Internet, but, also,
solution(IP Server) around the amount
expand the amount of its items into the
a remote video meeting function by real-
of 200,000 subscribers to Smart, the top
Japanese market and actively open the
izing the existing DVR hardware system
mobile telecommunication operator in
Southeast Asian and Chinese markets
as a software one.
Philippines. The company will provide
by participating in various international
Tel : 82-53-620-2044
additional equipment for 300,000 subscribers until the end of this year, 2004.
Infravalley is taking charge of this
equipment supply with Witcom, wired/
Samsung SDI Delivers PDP to Sony
wireless ASP managing operator, and
Cherrypics in Hong Kong.
A source at Infravalley mentioned that
Samsung SDI Co.(www.sam-
“Setting this year as the aggressive
sungsdi.co.kr) will deliver its PDP
export year, the company has executed
modules to the world top home appli-
He, also, hinted at the expansion of
business and marketing activities in
ances maker, Sony, commencing this
overseas sales agents, saying “The
Southeast Asia, Europe and the
April.
company will discuss the product
delivered the PDP modules to JVC,
Fujitsu General and Toshiva.
American continents” adding that “The
Bae Chul-hwan, vice-president of
supply with the world famous TV set
whole e solution supply business on
Samsung SDI, presenting the world’s
companies including Philips at CES,
system infra such as billing and intel-
first 80-inch PDP module at the Shilla
the home appliances exhibition, which
ligent network has moved forward with
Hotel, said, “Recently, Samsung has
will be held in Las Vegas.”
the cooperation of the system and
supplied PDP module samples to
Samsung is going forward with
mobile telecom companies”
Sony and the approval processing
negotiations for supplying modules
has gone on, and about 10,000 sets a
with HP, which declared the firm’s
month will be shipped to Japan.”
advance into the PDP TV business.
Infravalley had shipped the ring-back
tone solution to S Telecom in Vietnam
and MobileOne in Singapore last year.
Tel : 82-31-907-1044
Seculix Exports DVR to Japan
Seculix (www.seculix.com), a video
solution company, introduced a low-
Samsung SDI will first supply 42-
With the construction of the second
inch SD PDP modules, and then
factory for producing PDPs in 2003,
export the whole products it has pro-
the PDP production has increased
duced. Sony wanted to import more
and the PDP module price has also
products than exported, but Samsung
risen. Accordingly, the sales amount
SDI coordinated the numbers of
in PDP TV is expected to reach
exported items, considering the
1400billion won, which is about 3
balance with other buyers.
times the amount of 560 billion won in
priced digital video recorder(DVR), the
The vice-president also explained
‘CUMI,’ into the Japanese market. The
that, “Sony, which does not have the
Samsung SDI is scheduled to deal
company also announced that it has
needed LCD and PDP production
with the tremendous demands by
exported its products amounting to 10
facilities, asked the products shipped
operating a third line that can produce
million yen (about 106 million won), to AI
be a total of 20,000 units a month,
12 million PDPs a month at the end of
Survey, a Japanese logistics company.
but due to the shortage of products,
this year and a fourth line in the
The whole ‘CUMIs’ shipped to Japan
Samsung decided to ship 10,000
second half in 2004.
this time are supposed to be sold in
units a month.” Samsung has already
2003.
Tel : 82-2-727-3100
small stores such as a shop, a conve-
IT KOREA Journal _ 49
NEWS
Exports News
Hellonet to Export Mobile Game
(My Angel) to China
Hellonet (www.hellonet.co.kr), a
mobile game provider, revealed that it
will export its mobile games to China.
include Japan, Southeast Asia, Europe
company in Malaysia of the Tera
and the American continent with various
Corporation in Japan.
mobile games such as the ‘Virtual
After completing the localization of
Soccer Manager’ and the ‘Dark Horse
‘Survival Project’, HanbitSoft is
Grand Prix’.
scheduled to start a closed beta service
Tel : 82-51-610-0448~7
Making contracts with a Beijing-based
in Malaysia and Singapore commencing
in February, 2004.
company, Cosmos Digital and a
Guangzhou-based
company,
the
Keumbung Group, Hellonet announced
that it will provide a mobile singer game
Kim Young-man said, “The company
HanbitSoft Exports ‘Survival
Project’ to Malaysia and
Singapore
entitled ‘My Angel’ and an action game
called ‘Snowpang’ starting from the
will chalk up over the 5 billion won of
sales amount with only the ‘Survival
Project’ by aggressively focusing on
market strategies that target children
HanbitSoft Inc. (www.hanbitsoft.co.kr)
and students in both countries.”
revealed that it signed a contract with
second half of this year.
The
‘Survival
Project’,
which
Lee Hwan-jung, CEO of Hellonet said,
Tera ICT (CEO Tamura Ichro) and
HanbitSoft has published and IO
“the company is expecting over a 500
shipped its on-line game ‘Survival
Entertainment has developed, has
million won sales amount while the
Project’ to Malaysia and Singapore. The
earned about 33billion won in both
games maintain their popularity within
deposit for this contract is $150,000 with
domestic as well as overseas markets,
the next two years.”
a typical running guarantee.
plus, it has been on pay service in
Hellonet is scheduled to expand its
Tera ICT, running a game portal site
foreign markets from just China to
(www.e-games.com.my), is a subsidiary
Korea, China, Taiwan and Hong Kong.
Tel : 82-2-3284-3119
InkTec Enters Into Printer Supplies Market in the US
InkTec Co. (www.inktec.co.kr), a
print technology specialist, revealed
products due to their high quality and
InkTec will concentrate on the North
reasonable price.
American market setting the entrance
that it will deliver its inkjet printer sup-
The first amount of refill kits and
plies to the US-based Longs Drug
compatible cartridges, which InkTec
Plus, InkTec is negotiating to supply
Store.
will deliver to the Longs Drug Store
its products to another 3~4 big office
comes close to $75,000.
machines and supplies retailers in the
Longs Drug Store, which has about
into Wal-Mart as a final goal.
450 chain stores open 24 hours a day,
One source at InkTec said that.
first dealt mainly with drugs, but
“Although 2~3 models will now be dis-
Accounting for 38% of the whole
recently varied its sales items.
played in the 450 stores, additional
inkjet printer market worldwide, the
orders will be created soon.”
North America market is estimated to
Supplying its own ink cartridges to
120 countries, InkTec started to ship
InkTec, establishing a US-based
cartridges to the big chain stores in the
corporation in May, 2002, had failed to
US where HP, the printer specialist,
sign a contract due to the delay of
has been the dominant power.
dealings with Fry’s Electronics, which
After comparing other products,
Longs Drug Store selected InkTec
50 _ IT KOREA Journal
is a mass retailer.
With this Longs Drug Store contract,
US.
consume about 50 million inkjet
printers by RiRa Research.
Tel : 82-31-493-7388
SPECIAL
1.Online Game
1. Trends
Trends in
in domestic
domestic online
online game
game market
market
1.
2. Interview/Kim
Interview/Kim Jeong-ryul,
Jeong-ryul, Chairman
Chairman of
of Gravity
Gravity
2.
3. Introduction
Introduction of
of Major
Major Korean
Korean Online
Online Game
Game Companies
Companies
3.
4.
4. Thailand,
Thailand, Another
Another Market
Market in
in Asia
Asia
5.
5. Interview/Kim
Interview/Kim Woo-suk,
Woo-suk, Chairman
Chairman of
of the
the Korean
Korean Game
Game
Export Association
2.Mobile Game
1. Market Trends of Local Mobile Games
2. The Leading Local Mobile Game Companies
3. Interview/POCKETSPACE’s president Kim Do-sik
SPECIAL � 1. Trends in domestic online game market
Korean Online Games Are
the World’s Best
From Southeast Asia to the Americas and Europe ...
Conquering the world
Since the 1998 release of NCsoft’s “Lineage,” the world’s first graphic Internet game, Korea’s online game
market has grown rapidly and the new full 3D era online games are mushrooming within the game world.
Based on a world-class Internet infrastructure, the Korean online game market is growing more than 30% each
year and, without losing momentum, Korean online game companies are taking advantage of business
opportunities abroad. They are literally embarked on a conquest of the international game world.
Reported by Shim Woo-sung ([email protected])
W
ith more than a 30% annual growth, a 1 trillion won
market expected this year
According to the “Korea Game White Paper 2003” published
by Korea Game Development & Promotion Institute, the size of
the Korean online game market last year was 587.9 billion won
and this meant a 30% growth from last year’s 452.2 billion won.
The market growth has somewhat slowed down considering that
the annual growth rate was 69% (268.2 billion won). This,
however, happened because the market has matured. As for 2004
and 2005, the expected growth rate is still an impressive 25%.
The market will be as big as 734.9 billion won to 918.6 billion
won in 2005. However, this forecast is based on market statistical
data available in mid-2003 that was in turn based on the end-2002
market condition. The compilation of 2003 data will be made in
the second quarter of this year. An export drive was not a dominant trend in 2002 and 2003 and the Korean domestic pie grew
much bigger in 2003. Considering these factors, our current
forecast may be too conservative.
Recently, a Korean newspaper conducted a survey on the size
of the domestic online market in 2002 and 2003. According to the
survey results, the top ten Korean online game companies grew
more than 50% and achieved sales totaling 632.9 billion won in
52 _ IT KOREA Journal
2003. The sales goal of these companies this year is 947.7 billion
won, about a 50% increase from last year.
The most outstanding leap forward was made by game portal
companies such as NHN, Plenus, and Neowiz with their growth
rates in 2003 being respectively 128%, 159%, and 317%. This
success can be explained by their diversification of sales
channels including the introduction of various methods to
expand paid subscriptions and a full scale launch of publishing
businesses.
These Korean firms are making inroads into the East Asian
market, it was, also, important that China is included in this
market. Last year, Gravity launched businesses within 17 countries and attained an amazing sales increase record of 528%.
Webzen, also, successfully entered the Chinese market (paid subscriptions became a norm there) and its sales increased by nearly
100%. Similarly, Actozsoft settled a royalty conflict with a
Chinese service provider and its sales increased by 180% last
year.
Therefore, because the sales of top ten companies alone surpassed 900 billion won, the Korean online market as a whole,
with hundreds of online game companies, is likely to become a 1
trillion won market.
Wireless/wireline interworking is a dominant
trend; the popularity of cartoon online games
increases
Recently, the wireless and wireline networks are merging
rapidly in Korea and, to adapt to the changing environment,
online game companies are actively developing new game services in tune with wireless/wireline interworking trends. Games
are thus offered for both PC’s and mobile phones. Essentially,
there is a community of interests between online game companies
that are attracted by the rapidly growing mobile game market and
the mobile game companies that cannot ignore the development
of the online game market. Furthermore, because of the introduction of the Mobile Number Portability (MNP) this year, new
high-end mobile phones have rapidly replaced low-end phones
and this in turn contributes to the evolution of new interlocking
trends. Therefore, major online game companies such as Webzen,
NAKO Interactive, Gravity, and NCsoft are now offering mobile
versions of their existing online games.
NCsoft, which has an inhouse development team, is offering a
mobile version of “Lineage,” its main game title. Lessons and
ideas they get from their mobile experience can be applied to the
online version.
Webzen is also offering two mobile games that are interlocked
with “Mu.” NAKO Interactive, famous for its “Laghaim,” as well
as developing or has already developed about 10 games that
copes with the wireless/wireline interworking trends. The experience points gained in the mobile game field can be transferred
to the online version and the ranking can be confirmed on the
web. Commenting on the new trend, an authority of a domestic
online game company said,“Because most mobile phones are
now high-end, games that offer both wireless and wireline versions will become dominant in the market. "
Another new trend is the popularity of cartoon-like online
games. Before, the online games were mostly of two types: fantasy
games represented by Lineage and chivalry games represented by
Yulhyulgangho. The new category is a cartoon online game and a
tripartite division of the online game market is emerging.
SunnyYNK’s “Seal Online” is a game that takes advantage of a
full 3D cartoon rendering technique. During its “open beta
service” event, there were about 60 thousand simultaneous users
and 15 days after the introduction of charging, the company had
already 37 thousand paid subscribers and sales of more than 1
billion KRW. Seal Online was thus threatening the status of
Lineage’s Mu
Similar things can be said about Nexon’s “Mabinogi.” The
game has introduced fresh ideas including minstrels songs based
on composition skills. Gravity’s
“Ragnarok” is probably the most representative of the successful cartoon
online game. There are about 30
thousand simultaneous users. Thanks
to their cute characters and soft mood
they convey, cartoon-like games are
popular among teens and people in
� Gravity’s “Ragnarok”
their twenties and authorities in this
business thinks that the games will enjoy their heydays for a
while, along with fantasy and chivalry games.
Online game’s export drive marches on
Such Korean online games were thoroughly tested in the
domestic market and their competitiveness was proven. Boosted
by their domestic success, the online game companies are aggressively pursuing business opportunities in East Asia — China,
Japan, Taiwan, Hong Kong, Singapore and Malaysia. As a result,
“Ragnarok” in Japan, “Mu” and “Legend of Mir” in China and
“Lineage” in Taiwan became part of‘Hallyu (Korea Fever)’
.
Especially, within the Chinese market, Korean online games
occupy more than half of the games ranked on the top 10 list. It
is not an exaggeration to say that the Korean online games are on
the verge of conquering the Asian online game market.
The secret of such a outward drive made by online game companies, lies in the world-class very high speed Internet environment within Korea, which was created by the cooperation
between a government that established the physical and human
infrastructure necessary for achieving the goal transforming
Korea into an IT power and the business sector..
According to “Korea’s Export in the Game Industry in 2003:
Trends and Forecast,” a report published by a Korea Game
Development & Promotion Institute, the size of online game
exports grew from 100 billion won in 2002 to 188.7 billion won
in 2003. Most analysts think that the overseas online game
business is on the right track considering their export successes.
This year, Korean domestic online game companies will pursue
more proactive operational strategies for growth. Therefore, the
future seems to be bright in this sector of Korean economy.
Major game companies that are engaged in an overseas
directed business such as Actozsoft, NCsoft, Gravity, Webzen,
Mgame, and CCR, will expand and diversity their export
footholds from China and Southeast Asia to the United States and
Europe. New export items will be promoted as well. In addition
to the online role playing games they have been concentrating on,
they will release board games and shooting games to the overseas
IT KOREA Journal _ 53
SPECIAL � 1. Trends in domestic online game market
markets, thereby becoming leaders in
the world online game marketplace.
Actozsoft had achieved export
sales of 11.5 billion won in 2002 by
exporting “Legend of Mir II” to
China. Last year, 40 billion won or
70% of 60 billion won expected
sales was achieved by exports alone.
Following the success of the Legend
� Webzen’s “Mu.”
of Mir, Actozsoft plans to launch
“A3,” an online game for adults and to enter the European and
US markets. Actozsoft’s export is expected to be even more
successful than last year’s. Although Actozsoft was dethroned
from its number one exporter status in 2002, it still outranks
NCsoft in terms of total sales. This company estimates that the
“Lineage” service in Taiwan will gather about 28 billion won
royalty income. This year, “Lineage II” service overseas will
begin full-scale and new game services will be launched in many
countries including the United States. Actozsoft’s goal is to
maintain its status as a leader of the domestic online game market.
According to a preliminary estimate, Gravity, which is
offering “Ragnarok” in 17 countries since 2002, achieved a
sales record of 37.3 billion won in 2003, more than a 500%
increase from 2002. Income from its exports is estimated to be
about 20.7 billion won. This year, its service areas will be
expanded from just China, Japan, and Taiwan to include the
United States and Europe. It will also launch a characterlicensing business, thus maintaining its status as a major
exporter of online games.
Webzen, which recently has been a much about firm thanks
to the success of “Mu,” the first Korean 3D online game, is estimated to have achieved a sales record of 57.8 billion won, of
which about 9.3 billion won was earned from abroad.
Mgame, whose 2003 sales estimate is 18.3 billion won,
gathered 4.5 billion won from its royalty income. This year’s
goal is 6 billion won, as its overseas market base will be
expanded and diversified from just Taiwan and China to
include Japan, Southeast Asia and the United States. It is especially targeting the US market, where it has sold the license for
their “Knight Online.” CCR is no less ambitious. This year, it
will begin the commercial service of its “FR Online” (the
company invested 8 billion won for this game) and the sales
goal is 26 billion won, of which more than 8 billion won will be
from overseas markets. Other major game companies, such as
Nexon, NHN and Plenus are also beginning their overseas
expansion this year and overall, the future of the Korean online
game export is bright.
54 _ IT KOREA Journal
Foreign human and capital resources are introduced to the domestic online game business
With the vitalization of the Korean
game companies’ overseas activities,
there is an explosive increase of foreigners working in the overseas
branches and subsidiaries of Korean
companies. In December 2002, NCsoft
boasted of many famous foreign developers including its new R&D vice� NCsoft’s “Lineage”
president recruited from Blizzard
Entertainment, a famous game developer. In addition, as
NCsoft is actively promoting its exports into China, Japan,
Taiwan and the United States, the size of its overseas subsidiaries and joint venture companies are increasing and are
staffed by a larger number of foreigners.
In the case of NHN, NHN Japan, established in 2000, now
has more than 100 employees of which about 80% are
Japanese. Similarly, Nexon Japan established in 1999, has only
23 Japanese among its 30 employees. Plenus, which is running
Netmarble, a game portal site, is employing many foreigners as
it is hastening its overseas market expansion into China, Japan,
etc. Commenting on this phenomenon, an authority of Korean
game companied said, “As the prestige of the Korean game
companies is increasing, many competent foreign developers
want to work in Korean companies.”
In addition to foreign human resources, foreign capital
resources are being introduced to the Korean online game
market. Recently, a Korea-China game mart, organized by the
Chinese government and the International Cooperation Agency
for Korea IT (ICA), in connection with the Ministry of
Information & Communication, was held in Shanghai and the
Chinese participants from 30 IT-related companies have
revealed their intent to invest on average more than 1 billion
won into Korean game companies.
This means that the Chinese companies are interested in
investing at least 30 billion won. They were interested in not
only online game companies, but also, in communications and
publication, which are not directly related to the game
business.
As the Korean online game business is consolidating its
world’s most powerful status, late comers into the business are
eager to work with Korean companies who have advanced technology and experience. In sum, along with semiconductor
products and mobile phones, online game products and services
are emerging as major Korean export items.
List of World-wide Exported Korea Online Games
Country
Company name
Title
Date
Gravity
Lagnarok
Lineage
Lineage2
MIR2
A3
1000 Year
Dragon Raja
N-Age
Mu
Asgard
Tactical Comanders
Fortess Blue
Survival Project
With your Destiny
Tales Weaver
Laghaim
Lagnarok
Lineage
Lineage2
MIR2
A3
Dragon Raja
N-Age
Mu
Tactical Comanders
Fortess2 Blue
Survival Project
With your Destiny
Priston Tale
Laghaim
Lagnarok
Lineage
Lineage2
Tactical Comanders
Nexus TK
Laghaim
Lagnarok
Mu
Fortess2 Blue
A3
Priston Tale
Dragon Raja
N-Age
Laghaim
MIR2
Laghaim(15 Country)
Lagnarok
Nexia
Laghaim
Lagnarok
Lineage
Lineage2
Mu
Kaje
Qplayer
Legend of Darkness
Tactical Comanders
Asgard
Fortess2 Blue
Survival Project
A3
Seal online
N-Age
Laghaim
Lagnarok
Legend of Darkness
Dragon Raja
Laghaim
Lagnarok
Laghaim
Oct. 2002,
July. 2000
Nov. 2003
Feb. 2003
July. 2003
July. 2002
Mar. 2001
Oct. 2002
Nov. 2002
Nov. 2002
Feb. 2002
Sep. 2001
Oct. 2003
Sep. 2003
Sep. 2003
Aug. 2002
May. 2003
May. 2003
Mar. 2004
May. 2001
Mar. 2004
July. 2001
June.2003
Feb. 2003
Jan. 2003
Mar. 2003
Oct. 2003
May. 2003
Aug. 2002
Aug. 2002
June.2003
Nov. 2001
Mar. 2004
Feb. 2002
Aug. 1998
Nov. 2003
Mar. 2002
June. 2003
Aug. 2003
Mar. 2004
Nov. 2003
June. 2003
Oct. 2003
Oct. 2003
Sep. 2001
Nov. 2002
July. 2003
Mar. 2001
Feb. 2003
Dec. 2002
June. 2002
Oct. 2003
Nov. 2002
Dec. 1999
July. 2000
Aug. 2001
May. 2001
May. 2002
Dec. 2002
July. 2003
Mar. 2004
Sep. 2003
Dec. 2003
Feb. 2002
Aug. 2003
July. 2002
July. 2003
Mar. 2004
Sep. 2003
Mar. 2004
Ncsoft
Actozsoft
Taiwan
eSoftNet
Webzen
Nexon
CCR
Hanbit Soft
SOFTMAX
NAKO Interactive
Gravity
Ncsoft
Actozsoft
China
ESoftNet
Webzen
Nexon
CCR
Hanbit Soft
Priston
NAKO Interactive
Gravity
Ncsoft
USA
Nexon
Thailand
NAKO Interactive
Gravity
Webzen
CCR
Actozsoft
Priston
EsoftNet
Italy
Europe
Indonesia
NAKO Interactive
Actozsoft
NAKO Interactive
Gravity
Nexon
NAKO Interactive
Gravity
Ncsoft
Webzen
Japan
Malaysia
Philippines
※ source : PICCA
Nexon
CCR
Hanbit Soft
Actozsoft
Grigon Entetainment
EsoftNet
NAKO Interactive
Gravity
Nexon
EsoftNet
NAKO Interactive
Gravity
NAKO Interactive
IT KOREA Journal _ 55
SPECIAL � 2. Interview Kim Jeong-ryul, Chairman of Gravity
R
agnarok ‐ the most
internationalized game ‐ exported to
17 countries
With 30 more countries added this year and its sales expected
to reach the $100 billion mark
▶IT KOREA Journal: Gravity has sold the online game
“Ragnarok” to more than 17 countries. Can you tell us
the secret know-how of your success?
I have been in this game business for more than 25
years and I have become familiar with various aspects of
licensing. Such experience has helped me a lot. And, to be
able to cover the whole world simultaneously, I organized
an overseas support team from the beginning of this enterprise. Therefore, we were ahead of others.
▶IT KOREA Journal: “Ragnarok” is very popular,
not only in Korea, but also overseas. Any particular
56 _ IT KOREA Journal
reasons?
We were there first and that made the difference.
Considering the characteristics of the online game market,
prior occupation is very important. In addition, most
online games are about brutal and immoral siege warfare,
whereas Ragnarok is a humane community game.
Overseas users love it without reservation.
▶ IT KOREA Journal: Recently, some server programs have been leaked to Taiwan and China, where
illegal game servers are in operation. What do you
think of illegal servers?
It is true that the number of simultaneous
users decreases when an illegal server operation is not allowed. Therefore, some companies willingly tolerate illegal servers
because that considerably helps to attract
users. However, the effect is just temporary. We, though, were more long-term
minded and decided not to allow such a situation to exist. Now, there aren’t any
illegal servers for Ragnarok. At first, when
illegal servers in China were closed down,
simultaneous access suddenly dropped by
50%. Yet, it didn’t take long for the number of users to
being back to normal. My recommendation for other companies is that they should approach the problem with a
long-term perspective. They should not be tempted by
immediate gains.
▶IT KOREA Journal: Recently, Ragnarok festivals
were successfully held in five cities in Thailand. Are
you planning for some more in other countries?
The first Ragnarok festival was held in Japan. We got
very positive inputs and we decided to have similar ones
throughout Southeast Asian countries including Thailand
and the Philippines. In July of this year, there will be a
Ragnarok festival Korea. Gamers from the whole world
— the Americas, Europe, etc. — will be invited. This
event will become an international festival and Ragnarok
will become a world-famous game.
▶IT KOREA Journal: You expect sales this year to be
more than twice that of last year. And, the overseas
sales will become more than 70% of the total. What
are the countries that will help you to realize this goal?
In March, we will add Brazil and India to our international family. By the end of this year, Eastern Europe,
Oceania, Mexico, etc will join the Ragnarok family. We
expect 30 new countries this year. We will localize its
service and independent servers will be installed in all
these areas and countries. We have already signed contracts with most of the countries under consideration and
if all the contracts become effective, then we would have
more than 30 countries. Consequently, we expect the sales
to increase by at least 100% this year.
IT KOREA Journal: What should the
government do for companies like yours
that explore game business opportunities overseas?
I would like to cite capital and marketing. First of all, because the game
engine is expensive, most underfunded
companies develop engines by themselves.
Unfortunately, the quality of their engines
is not very high and this harms their competitiveness, as might be expected.
Government support will greatly help such
businesses. Furthermore, the government should conduct
market surveys and organize overseas exhibitions. Such
support should be unevenly distributed to all companies.
▶IT KOREA Journal: What is the future shape of
Gravity that you would like to realize?
I want it to be a global entertainment company. Now, in
addition to games, we have invested 10 billion KRW to
produce a Ragnarok animation in Japan. There will be a
worldwide release this year including Korea and Japan.
We are also implementing a character business in Taiwan.
About 20 mobile games including “Ragnarok Another
Story” were already released. In the future, we will participate in movie production. Through such efforts, Gravity
will be recognized by the world as a company specializing in entertainment.
▶IT KOREA Journal: Finally, would you like to share
your wisdom with other Korean companies that are
interested in overseas ventures?
Above all, finding the right local partner is a must. In
particular, it is necessary to find partners equipped with
all the aspects of business competence — capital, distribution channels and technology. To have a discerning eye,
you need an exhaustive market survey. As soon as you
choose a country, don’t try to save labor and marketing
costs. Exporting online games is to sell culture, not
product. Other costs are not involved. Labor and marketing costs necessary for game development and operation are all that it takes. Don’t try to save money. What
you need, among other things, is a bold and appropriate
move based on marketing knowledge.
IT KOREA Journal _ 57
SPECIAL � 3. Introduction of Major Korean Online Game Companies
Introduction of Major
Korean Online Game Companies
[ Hangame ]
Hangame (www.hangame.com) is a game portal operated by a professional Internet group called ‘NHN Corp.
(www.nhncorp.com)’ that runs the Internet search portal site ‘Naver (www.naver.com)’ and the Internet game service ‘Hangame’.
The NHN Corp. started a regular Internet portal business in June 1999 with the name of ‘Naver’ and changed the name to NHN
Corp. in September 2001. The NHN Corp. was listed in KOSDAQ in October of 2002.
The NHN Corp. lays emphasis on the provision of high quality services. The NHN Corp. can develop every solution within the
company so it is distinguished from other companies. In the NHN Corp., professional developers in the fields like game development, web development and search development occupy more than 60% of the whole staff. The NHN Corp. started to advance
into the Japanese market in 2003 and announced the merger of the Japanese Naver and the Hangame. Nowadays, Hangame Japan has
4.5 million members and a maximum simultaneous connecting membership of 52,000 and sat on the top of the Japanese web-game
market. The NHN Corp., which made sales of 166.6 billion won and a revenue of 65.7 billion won in 2003, will try to capture the
RPG market by the enhancement of its community service and an online game called ‘Archlord’ and will largely improve a global
business, especially in Japan and China.
Major Online Games Provided by the Hangame
‘ARCHLORD’
‘ARCHLORD’ as the representative online game of the
Hangame. The ‘Archlord’, which has been provided for three
years, is a full 3D RPG. The title ‘Archlord’ is the combination of ‘arch’ meaning ‘best’ and ‘chief’ and ‘lord’ meaning
‘monarch’ and ‘king’, so ‘Archlord’ means the best monarch,
in other words, the ‘absolute monarch’. About 70% of the
‘Archlord’ was completed by investigating 70 professionals
and 10 billion won with 3 billion won for initial marketing.
The close beta-service will be started in late March of this
year, 2004. The moving pictures and the OST of the
‘Archlord’ were disclosed through the KAMEX and its
homepage (www.archlord.com) last year. The ‘Archlord’
includes descriptive stories representing discords among
various tribes and the activities of heroes with great battle
scenes between the human tribe and the oak tribe produced by
a digital animation method, resulting in great images like those
found in top fantasy movies. The ‘Archlord’ targeting on
being graded as for ‘12-year-old’ is in the middle of development. The ‘Archlord’ is in a legitimate game type preferred
by the MMO RPG mania of 18 to 20 years old.
58 _ IT KOREA Journal
‘OUTPOST’
The ‘Outpost,’ whose
service was started in June,
2003, is a military action
game with the background
of a third World War am
ong Europe, Asia, Africa
and America for capturing
the ownership energy left in
the world. The ‘Output’
reproduced more than 300 actual military devices like tanks
and helicopters and action effects using motion captures.
‘LIMIT ONLINE’
The service of the ‘Limit
Online’ was started in Jan
uary, 2004, and the game is
a military FPS(First Person
Shooting) game ab out a
long war between humans
and androids that are robots resembling humans. The reputation of the ‘Limit Online’ is that it is excellent in terms of the
touches of the FPS and suspense.
‘ARCHSHADE’
The service of the
‘Archshade’ was started in
January, 2004.
The ‘Archshade’ is generated by transferring an
arcade game of the same
title to online, resulting in
the connection of the arcade
and the online. Different
from existing FPS, a
maximum of 10 people can perform network plays and individual information like ranking is stored when using ID cards,
so the arcade game can be enjoyed like an online game. In
addition, the online ‘Archshade’ users can battle with the
gamers in recreation rooms, so the online users can enjoy the
great pleasure of the arcade at home.
‘HANQUA’
The service of the ‘Hanqua’ was started in April, 2003. The
‘Hanqua’ is a 3D fishing game for capturing various types of
fish from rivers, lakes and oceans in the world, raise the fish in
water tanks decorated by users or to show the fish by
exhibiting them in the
water tanks. As the
users capture a larger
amount of fish, the
fishing instruments and
boats are upgraded to
be able to advance to
further fishing places and capture the various fish.
‘BUZZER BEATER’
The ‘Buzzer Beater’
whose service was
started in December,
2003 is a real time
online basketball game
in which various types
of plays can be performed like street-basketball of one by one or three by three and the standard basketball of five by five.
‘GOLDWING’
The service of the
‘Goldwing’ was star
ted in September,2002.
The ‘Goldwing’ is a
3D shooting game in
which users choose a
fighting plane from 18
cute fighting planes
like ‘poker’ and ‘mustang,’ which are changed from the
fighting planes used in the first and second World Wars and
flight battles can be enjoyed on the background of various
stages. The characteristics of the ‘Goldwing’ are easy operations using a mouse, fine and realistic graphics, realistic
sounds and speedy progress, resulting in a sense of real flights.
‘UPPU’
The ‘Uppu’ whose
service was started in
January, 2003 is an
arcade game in which
a cute character having
a key is in its vehicle
and attacks enemies by
using farts to collect
jewels. Maximum of 6 users can play the game, which has
IT KOREA Journal _ 59
SPECIAL � 3. Introduction of Major Korean Online Game Companies
characteristics of a speedy progress and various vehicles, at the
same time.
‘INUSIAD’
The service of the
‘Inusiad’ was started in
November, 2002.
The ‘Inusiad’ is an
online RPG about magic
competition of wizards on
the background of a virtual
Inusia ground. In the
game, corps of various characters like wizards, soldiers, and
archers are formed and the corps are increased through battles
against other players.
‘RYL ONLINE’
The ‘Risk Your Life
(RYL) Online’ whose se
rvice was started in
December, 2002 is a
fantasy online RPG game
about the opposition
between the old world and
the new world on the
background of the colonization age of the virtual Carterant
kingdom. The ‘RYL Online’ using a 3D engine developed by
Gamasoft Co. represents the essence of a full 3D PRG through
realistic graphics.
‘PRISTONTALE’
[ Netmarble ]
The Netmarble Inc. (www.netmarble.net) is a game
portal site established in March, 2000. The Netmarble Inc. was
selected as the most raised site in 2001 and it was raised to the
top of game portals in 2002. The Netmarble Inc. was merged
to Plenus (www.plenus.com), which runs Internet and movie
businesses, in December, 2002.
The Netmarble Inc. focused on the development and the
service of games in various genres like educational games,
web board games, arcade games, and sports games, and leads
the generation of new business models, such as web publishing model of online games, based on the development and
the service of the games.
The Netmarble Inc. increases its business to an entertainment portal, which services the VOD service of movies
and dramas and entertainment contents service of cartoons,
avatars, and entertainers.
Major Online Games Provided by the Netmarble
‘DARK EDEN’
The ‘Dark Eden’ is a legitimate horror RPG game
about vampires in a near
future. The ‘Dark Eden’ re
alizes a modern horror
fantasy background by
mixing chivalry, middle-age
fantasy, as well as, SF mood.
‘STONE AGE’
The ‘Stone Age’ is an
online RPG game about the
lives of primitive men on the
background of the Stone
Age. The primitive men live
on four islands by utilizing
the characteristics of the islands.
‘KANGJIN SOCCER’
A 3D online game, the ‘Pristontale’, was first serviced in
December, 2002. The users of the ‘Pristontale’ can enjoy
various characters, jobs, and skills on the background of a
virtual continent, ‘Priston’. The ‘Pristontale’ is famous among
female and children, because of cartoon-like characters and
splendorous maps.
60 _ IT KOREA Journal
The ‘Kingjin Soccer’ is a soccer game possibly enjoyed by
20 users at the same time.
The users of any sex and age can enjoy the ‘Kangjin Soccer’
since the users can select different characters and use winning
technologies and various items. In addition, the ‘Kangjin
Soccer’ is a real-time online game emphasizing teamwork,
resulting in competitive tension.
‘CARTOONRACE PLUS’
The ‘Cartoonrace
Plus’ is an online rac
ing game in which
users decorate specific vehicles and
enjoy racing with a
maximum of eight
other users.
In the game, various vehicles and options are arranged, and
individual vehicles can be made through dress-up tunings. In
addition, various items improve the pleasure of the game.
‘GUNZ THE DUEL’
[ Mgame ]
The Mgame Corp. (www.mgame.com) was established in
1999; however, the company started the development of
online games in 1996 and developed and serviced an online
game entitled ‘Darksaver’ in 1997.
Nowadays, the Mgame Corp. develops and services the
Internet game side ‘Mgame’ and a large number of online
games, such as ‘Darksaver’, ‘Biography of Soma Mythology’,
‘Droyan Online’, ‘Online Worms’, ‘Online Bomberman’,
‘Neo-Darksaver’, and so on. The number of members for each
game was 15 million where in the Mgame is 10 million, the
‘Darksaver’ is 2 million, the ‘Biography of Soma Mythology’
and the ‘Droyan Online’ are more than 500 thousand each and
the ‘Online Worms’ is 800 thousand. In addition, the number
of the simultaneous connecting users is over 100 thousand.
The Mgame Corp. provides the games of various genres, such
as public board games like ‘Baduk’, ‘Chess’ and ‘Godori’ and
the RPG online games for mania, so that it is prospected that
the Mgame Corp. will grow as a real global online game publisher. The Mgame Corp. contains necessary technologies for
the development and the service of online games like server
technologies and network technologies, as well as, service
knowledge for providing the pleasure of the online games to
its users.The Mgame Corp. made the sale of 4 billion and 500
million won by the royalties from foreign countries out of the
expected sale of 18 billion and 300 million won in 2003. The
Mgame Corp. will vary its export regions into Japan,
Southeastern Asia and the US, following Taiwan and China, in
order to make the sale of 6 billion won this year. Specifically,
the Mgame Corp. focuses on their advancement into the US
market by publishing the ‘Knight Online’ in the US with a
license type.
Major Online Games Provided by the Mgame
‘LUNENTIA’
The ‘Gunz the Duel’ is an alternative shooting action game
where it is possible to perform various actions.
Various characters of the game can hold various clothes and
items based on the tastes of the users, as well as, the characters
may hold various weapons.
In addition, role-playing elements are added to the ‘Gunz
the Duel’, resulting in various stories based on the scores of its
users.
The ‘Lunentia’ is the
first online RPG game for
females. The game uses a
large number of elements
that distinguish the
‘Lunentia’ from existing
RPG, resulting in giving
pleasure to users. The
basic concept of the ‘Lunentia’ is ‘nonsense’ using a specific
way of facing things, which is different from a conventional
rule, and parodies accompanying humor. Accordingly, the
IT KOREA Journal _ 61
SPECIAL � 3. Introduction of Major Korean Online Game Companies
female users and other light and casual minded users, who
avoided the RPG due to the heaviness and difficulty of the
RPG, may enjoy the ‘Lunentia’.
‘NEO DARKSAVER’
[ Pmang ]
The Neowiz Corp. (www.neowiz.com) is a professional
Internet company established in May, 1997. The Neowiz
Corp., which had provided various Internet services like the
Sayclub, started the game portal Pmang (www.pmang.com)
last year to become a general online game company.
Pmang publishes various games based on 15 web board
games. In particular, the game like ‘Go Stop’ for adults, which
has an average of simultaneous connection or its users at
around 150 thousand, became the most famous board game in
Korea last year. In addition, the Pmang provided games in
various genres, such as online racing games and shooting
games, and thus, became a well-known game portal company.
The Neowiz Corp. undertook a Japanese company named
‘Ifactory’ and established Neowiz Japan in 2003 to advance
into Japan.
‘ACCION ONLINE’
The ‘Neo Darksaver’ is a RPG on the background of a
Middle Age fantasy world. The game is formed of a scenario
system of real time turn type and includes small and cute characters.
‘KNIGHT ONLINE’
The beta test of the ‘Accion Online’, an online mechanical
shooting game, will be started in April. In the ‘Accion Online’,
the users riding on robots fight against enemies, and the view
points are changed from the first person to the third person so
beginners can easily enjoy the game.
In addition, the ‘Accion Online’ uses various multi-play
modes, more than 50 kinds of weapons and various strategies,
resulting in splendor and realistic special effects next to PC
games or CONSOLE games.
The ‘Knight Online’ is a full 3D PRG game. The most characteristic of the game is great battles among the users. The
users should participate in the battles right after registering
accounts and selecting tribes. The hero of the battles receives
peerage and prizes from a king. Moreover, the users may be
lords of castles and lords of manors to rule a city.
62 _ IT KOREA Journal
[‘LAGHAIM’ by NACO Interactive ]
The NACO Interactive Co., Ltd. (www.laghaim.com) is
an online game company established in July, 2000 and started
the service of a full 3D RPG game called ‘Laghaim’ in
[ ‘RAGNAROK’ by Gravity ]
August, 2001. The number of members of the ‘Laghaim’ in
November, 2001 was 2 million and the number of simultaneous connecting members became over 30 thousand in the
shortest period of time within Korea. Based on the success
found in Korea, the services of the ‘Laghaim’ were started in
Japan in January, 2002 and within Taiwan and China in July,
2002. In addition, the ‘Laghaim’ advanced into Europe by
cooperating with the European ISP company in October, 2002,
into Indonesia in March, 2003, into Germany in August, 2003
and into Malaysia in December, 2003. The ‘Laghaim’
advanced into the US in January, 2004 and it is to be serviced.
The ‘Laghaim’ is formed of full 3D graphics to provide realistic and splendorous graphics. In addition, the various
viewing points in the game can be freely changed, and
zooming in and zooming out are possible. The motions of tens
of characters are changed according to the clothes, and various
feelings like greetings, laughing, and crying can be expressed.
In addition, a large continent possible of containing 100
million people is a characteristic of the game. Detailed expressions like the difference in the length of shadows according to
the changes in weather and time are also considered. The users
may produce and sell items, may raise animals and may build
houses.
The Gravity (www.gravity.co.kr) established in April,
2000, is a company developing computer game software and
online contents. Gravity became famous by developing and
servicing the online game ‘Ragnarok’.
‘Ragnarok’ based on a famous fantasy cartoon is a role
playing game using a huge background and settings. The main
characteristic of ‘Ragnarok’ is its cute graphics, which use
bright pastel colors.
The portion of female users of this game is larger than other
games and the ages of its users vary from teenagers to those in
their thirties.
After the domestic service was started in August, 2002,
‘Ragnarok’ advanced into Japan, Taiwan, Thailand, China and
the US. In late 2003, ‘Ragnarok’ advanced into 5 countries
within Europe, which made its the first Korean online game
there, plus, this Korean firm has service contracts with India
and Brazil that were established in January, 2004, resulting in
its advance into 17 countries of the world.
‘Ragnarok’, having 16 million users, is actually quite
famous in foreign countries, for example, a ‘Ragnarok
Festival’ was held in Japan.
In addition, the ‘Ragnarok’ was presented a foreign product
award in the ‘AMD awards’ held in Japan by the Ministry of
Public Management, Home Affairs, Posts and
Telecommunications, in February, 2003.
’by SunnyYNK ]
[‘SEAL ONLINE’
The SunnyYNK Inc.(www.ynk.net) ran a business related
to games via a game character licensing business in 1998, and
became a regular game company as well as being a professional game publisher, by becoming an official partner of
IT KOREA Journal _ 63
SPECIAL � 3. Introduction of Major Korean Online Game Companies
‘Vivendi Universal Interactive’.
Being a game publisher means a business having game
copyrights, reprocessing the game, as well as, servicing the
game to users.
The SunnyYNK Inc. has a business model of selecting
excellent game developing companies and cooperating with
the companies in circulation, marketing, advertising, customer
supports, technology supports and investments, which include
operations except those for the development of the games.
The SunnyYNK Inc. made a base as a professional game
publisher by successfully publishing the online game
‘Ragnarok’ and the game portal site ‘Candybar’ in 2002.
In addition, the SunnyYNK Inc. made a publishing contract
with Grigon Entertainment, a promising game developing
company and published the charged online game ‘Seal
Online’, in 2003.
The game companies paid attention to the ‘Seal Online’,
which was exported to Taiwan and Japan in 2003. The
SunnyYNK Inc. made the Japanese license contract of the
‘Seal Online’ with the GBM, a Japanese service company, at
the royalty of 42% of the sale, which was the highest among
the domestic Korean online games.
SunnyYNK Inc. made the Taiwan license contract of the
‘Seal Online’ with Taiwan Index Company (TIC), a Taiwan
game distribution company, under the conditions of a deposit
for $1.25 million (or 1.5 billion won) and a minimum royalty
worth $3 million (3.5 billion won).
‘Seal Online’ realized a full 3D cartoon rendering technology to show realistic battles through a combo system on the
smooth background like those used for animations.
‘
’by CCR ]
[ FORTRESS 2 BLUE’
The CCR (www.ccr.co.kr) established in March, 1995, is
an online game company that generated ‘Fortress 2 Blue’. The
CCR services various online games through a game portal X2
Game (www.X2game.com) and introduced the ‘One Source,
Multi Use’ concept for a first among the game companies to
run a character merchandizing business of animation, publication and toys using the ‘Fortress’.
CCR published an upgraded version of the ‘Fortress 2 Blue’
to secure various game groups from casual games for any sex
and age to hardcore games for maniacs. Due to the strong
points of the ‘Fortress 2 Blue’ being easy to play and not
violent, the ‘Fortress 2 Blue’ is famous as being called a
‘public game’. The ‘Fortress 2 Blue’ is a turn-type shooting
game in which gamers attack enemies in turn within a limited
time, and various strategies may be realized by controlling a
spacebar and direction keys. The ‘Fortress 2 Blue’ is enjoyed
by teenagers and office workers alike, and the game improved
the game culture in Korea.
The ‘Fortress 2 Blue’ has 12 million members in Korea
(50,000 to 70,000 simultaneous connecting members) and 40
million members in China, Japan and Taiwan. ‘Fortress 2
Blue’ makes sales on the average of 1.2 billion won per month
in 10,000 PC centers.
In addition, the ‘Fortress 2 Blue’ was reproduced as a TV
animation series by 7 Korean and Japanese companies and
broadcasted by Tokyo TV in Japan and SBS in Korea.
’by NCsoft ]
[‘LINEAGE 2’
The NCsoft Corporation (www.ncsoft.co.kr) is a professional online game company that was established in March,
1997. The NCsoft Corporation is famous as a company that
opened a new area of domestic online games by publishing the
64 _ IT KOREA Journal
battles by clicking the left button of a mouse. In addition,
when a gamer is at a lower level, the gamer may hunt monsters, and when a gamer gets to a higher level, the gamer may
perform complicate and profound war, political and economic
actions. Accordingly, all of the gamers from beginners to the
“professional” can enjoy the game.
The charged service of the ‘Lineage 2’ was started in
October 2003, and the ‘Lineage 2’ maintains the same number
of simultaneous connecting members as the number of simultaneous connecting members of the exhibition service. The
‘Lineage 2’ has more than 1.95 million members and more
than 100,000 simultaneous connecting members, so ‘Lineage
2’ is expected to become a mega-hit.
[ ‘MU’ by Webzen ]
‘Lineage’ in 1998. It is estimated that the NCsoft Corporation,
which made a conquest of national and international online
game markets, made a revenue of about 28 billion won by the
royalties connected to the ‘Lineage’ service in Taiwan last
year. The NCsoft Corporation plans to regulate the international services of the ‘Lineage 2’ and start the services of new
games in the USA in order to keep the position of the
company as a representative online game company.
The development of the ‘Lineage 2’ was started in October,
2000, and the exhibition service thereof was started in July,
2003. The ‘Lineage 2’ is a great work formed by investigating
120 development professionals and 10 billion won. The
‘Lineage 2’ is now beta tested in Japan, Taiwan and China.
The characteristic of the ‘Lineage 2’ is a complete 3D
graphic providing a realistic experience to gamers. In particular, the background and the characters represented by full
3D graphics resemble a real world and people, and are
expressed by using optimum unreal engines. In addition, the
spacious world of the ‘Lineage 2’ including oceans, mountains, valleys, and woods is expressed by a single loading,
resulting in the improvement of the absorption of the attention
of the gamers into the game.
The ‘Lineage 2’ has a simple interface, which was used in
‘Lineage’, so that its users may perform movements and basic
Webzen (www.webzen.co
.kr) is a professional online
game company established in
April 2000. Webzen made a
strong blast into national and
international game markets by
generating the 3D online game
‘Mu’. Webzen entered KOSDA
Q last year and it was called a
‘loyal stock’. In addition, the
Webzen was listed in NASDAQ as the first Korean venture
company. The ‘Mu’, whose service was started in November,
2001, is a role-playing game using full 3D solid images, first
in Korea, that represents magnificent graphics on par with and
actual SF movie. ‘Mu’ enables the presentations of soft movements of characters through a quarter view, such as splendorous backgrounds, light effects, waving woods, rain, lightening, and magical effects. In addition, it is possible to express
various characters by using 100 thousand types of armor,
weapons and defense tools. In addition, various motions such
as sitting, greeting, shouting hurray and trying one’s patience
are possible. ‘Mu’ provides hot-keys for professional gamers,
resulting in rapid manipulations. In addition, the users can
move characters, attack monsters, perform commercial transactions and sit the characters by clicking the left button of a
mouse.
The sales of Webzen was 57 billion won last year, which
was increased by 100% from its sales in 2002. In addition, the
foreign sales of Webzen was increased to 9.3 billion won last
year, which had been 1.4 billion won in 2002, due to the
success in the charged service of the ‘Mu’ in China and
IT KOREA Journal _ 65
SPECIAL � 3. Introduction of Major Korean Online Game Companies
Taiwan. Webzen is currently preparing a new product to
follow up on the success of ‘Mu’ and plans to vary business by
advancing into the game portal business. Webzen has already
advanced into China, Taiwan and Japan with plans to advance
into Thailand within this year, 2004, they have started preparations to advance into Europe and America in the near future.
‘
’by Actoz Soft ]
[ A3’
The Actoz Soft Co., Ltd.
(www.actoz.co.kr) is a professional online game co
mpany established in Oct
ober, 1996. The Actoz Soft
Co., Ltd. became famous with
‘The Legend of MIR’ in
1998. The company, which exported 11.5 billion won in 2002
by the service of ‘The Legend of MIR 2’ in China, accomplished the export of 40 billion won last year which occupied
70% of the sales of the company, which was 60 billion won.
It was because the adult online game ‘A3’, which was published in December, 2002, was well exported, and a royalty
dispute against a Chinese service company was dissolved and
the Korean firm received 18 billion won at once. The Actoz
Soft Co., Ltd. will start the general service of the ‘A3’ in
China, Japan and Hong Kong and advance into Europe and the
US this year, 2004, so that it is prospected that the Actoz Soft
Co., Ltd. will make better export accomplishments than they
did last year. The ‘A3’ is an action RPG game targeting adults
by claiming the sympathy of adults. The ‘A3’ is evaluated as
pulling down the limits of expressions due to shocking images
revealed as the game’s progresses.
‘
’by Nexon ]
[ WORLD OF WIND’
The Nexon Corporation
(www.nexon.com) was established in 1995 and started the
service of the ‘World of Win
d’ as the first online game in
Korea, which was in 1996.
The Nexon Corporation established a local corporation in
the Silicon Valley in August, 1997 and started the service of
the ‘Nexus TK’, which is the English edition of the ‘World of
Wind’, in July 1998.
During the three months of an exhibition service period, the
‘Nexus TK’ became famous as 100 thousand gamers con66 _ IT KOREA Journal
nected to the game, and the ‘Nexus TK’ has been listed in the
top 50 of a chart provided by the Internet World Chart
(www.worldcharts.com), whose chart is formed by votes of
gamers worldwide, since the start of the service, the location
of Korean online games have improved. The Nexon
Corporation established a local corporation in Japan in 1999
and serviced the Japanese edition of the ‘World of Wind’,
plus, started the service in Indonesia in May, 2001. In addition,
the Nexon Corporation succeeded in the license advance into
Taiwan and China, and plans aggressive to advance into other
foreign countries in 2004. The ‘World of Wind’ includes convenient help messages like the explanation of locations, which
are selected by users, so that the users may easily enjoy the
game. In addition, lives and structures representing the period
of the game were reproduced in the game by using charming
images, so young women like the game.
The ‘World of Wind’ provides tens of faces and hundreds of
clothes, so tens of thousand characters can be realized within
the game by combining the faces and the clothes.
[ ‘KHAN’ by Mirinae Entertainment ]
The Mirinae Entertain
ment (www.mirinae.com) is
an online game company
established in May, 2001.
The company focuses on
the online game ‘Khan’
whose service was started in
November, 2003. The ‘Kh
an’ as a full 3D RPG game uses splendor graphics and easy
control, various characters whose characteristics are raised
according to the intentions of the users, hundreds of items and
new monsters. The users may freely select a character from 8
characters having different jobs and develop the character. The
scenario of ‘Khan’, which provides 8 episodes and 23 maps, is
that the users attacked from virtual lords cooperate with each
other to repulse the enemy, in the period of time before
Genghis Khan.
The users can reach the level of the Lord Khan by growing
through actions done within various battles. The ‘Khan’
emphasized communities through a strong ‘party’ function and
the users of the game can be further developed by collecting
training points via a training point growth (TGP) system and
distributing of the training points. In addition, a real time
ranking system is provided while possibly performing chatting
by using an emoticon function.
SPECIAL � 4. Chung Pil-yong, CEO of GamSofNet
Thailand, Another Market in Asia
R
ecently, IT markets have been rapidly developed
worldwide, mostly in Asian countries. The major
exporting country of Korean games was China; however, the
exporting regions for Korea are gradually expanding to
encompass Asian countries such as Thailand, Indonesia, Taiwan
and India because of the potential energy and the possibility of
future game markets in other Asian countries have increased.
In particular, it is worthy to note the game market in Thailand.
The number of Internet users there have increased in a geometrical progression, and the Thailand’s government has aggressively activated their Internet and IT industry. It is predicted that
Thailand will be a newly rising market for Korea having
improved its Internet and game technology.
When Korean games were initially advanced into the Chinese
market, various problems occurred and the Korean game companies experienced a period of trial and error. In order not to
repeat such trial and error process again, the characteristics of the
Thailand game market should be examined and detailed strategies
for properly corresponding to the characteristics of the area
should be arranged.
The Thailand game market has three merits. First, it is relatively easy for game companies to advance, because Thailand has
economically cooperated with Western countries and accumulated knowledge about economical cooperation. In late 2003,
about 10,000 broadband communication networks were distributed within Thailand. Moreover, it is expected that the subscribers in Thailand will be 20,000 by the first half of 2004 and
50,000 by the end of 2004, due to the rapid spread of online
games there. Accordingly, a lot of ISP companies plan to increase
the broadband communication network by using the game
industry. When considering the environment and the characteristics of the Thailand game market, one which the market prefers
games having a high brand preference while having a low price,
not to mention the fact that most game businessmen studied
abroad, the prospect of the Korean games is bright in Thailand
where Korean products have a positive image.
Second, Prime Minister Thaksin Shinawatra promotes regular
plans for improving the IT industry like advocating a strong
network among Asian countries. More specifically, the needed
required equipment and networks within each Thai governmental
agency has been grasped because of the realization of an electronic government concept, and said Asian government has raised
the distribution of high speed Internet
services like the ADSL and the
ISDN. After the National Electronics
and Computer Technology Center
(NECTEC) was created in September
of 1986, various projects related to
IT, such as an e-commerce center, a
software park and the development of
a public PC, were performed. In
addition, it is known that the Thai government supports online
game industry.
Third, as PC centers spread throughout Thailand, the Internet
and games have become increasingly famous and familiar to Thai
youngsters as they become the central figures within this
spreading trend. The online game market in Thailand was 400
million dollars in 2002; however, it is expected that the online
game market will be increased by 100% to 840 million dollars by
2005. It is estimated that most of two million computer gamers
enjoy online games. The online games of ‘Ragnarok’, ‘N-Age,’
‘Fairy Land,’ ‘King of Kings’ and ‘Dragon Raja’ were serviced
in Thailand, and the number of serviced online games has are
increased to 15, recently. The registered members of ‘Ragnarok’
are about 700,000, and the simultaneous connecting members are
about 200,000 after the charged service thereof was started.
Even the game market has explosively grown within one year
after ‘Ragnarok’ was introduced to Thailand in the second half of
2002, the Thai market is still in its initial stage. The Internet lines
are expensive; however, illegal software is widely used even in
Internet cafes. Furthermore, the speed of the Internet is slow,
resulting in it being difficult to download games.
However, in the case where the Korean games preoccupy the
game market of Thailand in the initial stage, the Korean games
will spread deeper roots into the areas within the Thailand game
market showing potential energy.
The online games were suddenly introduced into the Thailand
game market and due to the poor technology in Thailand, the
Korean products preoccupied the initial online game field. In
addition, it is predicted that the Korean products will lead the
Thailand game market for quite some time. Games like ‘Arcana’
and ‘Fantasy’ are in the middle of development by Thai companies; however, it will take more than two years until the games
are regularly serviced.
IT KOREA Journal _ 67
SPECIAL � 5. Interview Kim Woo-suk, Chairman of the Korean Game Export Association
K
orean Game Export Association
Kim Woo-suk
Chairman of the Korean Game Export
Association
“Focusing on the Export Promotion of
Korean Games and the Diversification of
Export Markets”
▶IT KOREA Journal: Would you like to comment on the
background and object of setting up the Korean Games Export
Association and plans for its future activities?
The global game market has been ever growing due to the high
growth of the game industry itself, which can be the core of the
digital contents industry. In order to promote exports of local
Korean games, game companies, communication service
providers, giant publishers and our government’s supportive
organizations, we have set up an export association on a non-governmental basis in order to help each other in overseas marketing
and the export business. We will be positively mediating Korean
game companies’ international conflict relating to their games,
helping them overcome the difficulties in exporting games with
governmental supports of the concerned organization, and
making an alternative measure to an important issue on the
games.
▶IT KOREA Journal: Communication service providers
including KT, SK Telecom and LG Telecom take part in the
Association. What is the program’s to link to the communi68 _ IT KOREA Journal
cation service providers and game companies?
We will let communication service providers such as KT, SK
Telecom and LG Telecom find and invest in promising Korean
games, and help them market the games in linkage with communication service providers abroad.
▶IT KOREA Journal: The export of Korean games is now
concentrated on Chinese circles such as China, Taiwan and
Southeast Asian countries. On the other hand, the export to
North America and Europe is small. What is your plan to
expand exports of on-line games in the future?
The main export countries of on-line games are limited to
China, Japan, Taiwan and Southeast Asian countries because of
the cultural similarity. As on-line games are becoming globalized,
we will be making efforts to enhance the awareness of local online games and their products by providing marketing guidance to
the local companies in the US, Europe and Central & South
American markets with global contents, and inducing the
investment presentation. Since Korean mobile handsets, in particular, are now gaining a greater popularity in the world market,
it is expected that local mobile games, of which game programs
will be embedded to Korean mobile handsets, will have a chance
of success in capturing the markets in the US and Europe.
Accordingly, if we are making every possible effort to export the
games with support of those countries’ language versions, it will
contribute greatly to the diversification of export market.
▶IT KOREA Journal: China is now the largest market for
Korean on-line games and it is expected to become our greatest
rival as well. What do you think is the measure to enhance our
competitiveness with China ?
Lately, the Chinese authorities are studying the development of
Chinese on-line games because they are afraid that they will be
subject to Korea culturally on grounds that about 80% of foreign
made on-line games are made in Korea. It might be thought that
Korean on-line games will be in a critical situation as Chinese
authorities cope with it quickly by announcing an intensive
investment plan so as to develop their game soft ware. We,
however, could get over such difficulties if we strongly overhaul
local on-line games in a way to benefit each country by increasing
competitiveness, endeavoring, in many ways, on the contents and
service of our on-line games.
▶IT KOREA Journal: What do you think is the most difficult
problem Korean on-line game companies are now facing in
exporting their products? And, what do you think are some
measures to solve it?
The greatest difficulties are that the companies lack information
and data about their target export countries. Accordingly, we plan
to service the game industry with the market information and its
analysis that will be made through each country’s I-PARK or
commercial attache there, as well as, the Government’s supportive
organization. We are now supplying each country’s model contract to them. We will be putting into practice the performance
guarantee of payment and technical assistance to enhance reliability in contracting with foreign companies and the source code
deposit system in association with the Korea Software Financial
Cooperative and Program Deliberation & Mediation Committee.
Furthermore, we plan to put into practice export financing in consultation with the Korea Export Insurance Corporation and Korea
Export/Import Bank. We will be seeking solutions through the
Arbitration & Mediation Committee to be organized so that the
government may positively mediate in the conflicts of games
between countries. The “screening system”, above all, should be
changed into a “Private Self Screening System,” under which
private committee members will do the screening to make decisions. It is believed that fixing a “Private Self Screening System”
will be advantageous to exporting with the enhancement of competitiveness both in Korea and abroad by making the most of the
creativeness of the game.
▶IT KOREA Journal: What do you think are the measures to
enhance overseas competitiveness of Korean on-line games?
In case of on-line games, we should first make a precise
analyses of those who can enjoy a cultural life in each country,
and establish a target market for each class of people. Then, we
should approach them to build up a confidence. It will contribute
greatly to enhancing competitiveness. If it is a mutual benefit by
mutual cooperation, it will contribute greatly to increasing competitiveness in overseas countries.
▶IT KOREA Journal: Korean on-line game companies are
equipped with both product and technical competitiveness to
some extent. But most of them are small and medium sized
companies, of which overseas marketing and financial capabilities tend to be inferior. What do you think are some effective
measures to solve it?
Since the top 5% of companies dominate more than 70% of the
local Korean on-line market, quite a few on-line game companies
have been advancing into oversea markets actively in order for
them to off-set their inferior local market position by entering the
overseas markets. They, however, could not compete with large
companies in term of organizational and financial capabilities. As
some of them tend to give up even their technologies to foreign
companies, actual draining out our own high technology by them
is also a rising and serious problem.
To solve it, accordingly, appropriate supports should be given to
them? rather than by the private sector but, instead, by governmental organization. It is most desirable in preparing for the
future.
▶IT KOREA Journal: Regarding the companies which want
to advance into overseas markets with the help of the Korea
Game Export Association, would you please comment on how
to connect with it ?
The Association has opened the door. If they contact the Korea
Entertainment System Industry Association or the Game Business
Team of Korea IT Industry Promotion Agency, they can make
sure of connecting with a lot of businesses within the Association.
We are planning to make it reborn as the organization serving the
export of Korean games and providing information by expanding
and making the Association develop more in the future, and we
will do our utmost to develop the game industry into a national
basic industry.
IT KOREA Journal _ 69
SPECIAL � 1. Market Trends of Local Mobile Games
Korean Mobile Games Are
Subjugating Global Game Market
LBS/3D/wire & wireless linkage hi-tech games rush to show off
Following local on-line games, the Korean mobile games are making inroads into the global market.
Strengthening performances of mobile phones a lot, the high technology games such as the 3D and Network
games associated with the LBS (Location Base Service) are pouring down on the market. Great games of wire
& wireless linkage with famous on-line games contribute to the development of the mobile market.
Reported by Shim Woo-sung([email protected])
T
he growing speed of local mobile games is surprising.
According to the ‘2003 annual report of Korean game
industry’ issued by the Korean Entertainment System Industry
Association (KESIA), local mobile games keep growing at an
annual growth rate of 63% every year from 100 billion won in
2002 to 170 billion won in 2003, and is prospected to reach 300
billion won by 2007. According to the ‘2003 trend analysis of
game development and guide’ issued by the Korea Game
Development Institute (KGDI), the number of mobile games registered with the KGDI has increased 67% compared with last
year, and the number of multi- platform games, which support
both on-line and mobile games at the same time, was 41, an
increase of 140% as compared with last year. According to
industry sources, the wire & wireless linkage games were not
thinkable at all 2 or 3 years ago and it is a good example that the
Korean game industry has been, also, developing technically.
Pouring Down of Hi-Tech Games Such As LBS and 3D
Top of the list of local Korean mobile games this year are the
‘high technology’ games. Above all, the recent mobile LBS
games are noticeable, thus, it will be expected to open a new
genre of mobile games this year.
70 _ IT KOREA Journal
GameVil (www.gamevil.com)
completed development of the
strategic simulation game entitled
“Quasi Three Ancient King doms” by
using LBS technology and it provides
their services through SK Telecom
since February. The basic scenario of � GameVil “Quasi Three
Ancient Kingdoms”
this game is the battling of one individual against another between towns with key positions not on
the Chinese continent but located on SK Telecom’s base stations.
Making an alliance among users via network like on-line games,
they are attacking others and defend themselves.
SoftEnter (www.softenter.com) also provides the services for
“Battle Canon Live” the mobile game associated with LBS,
which they developed with SK Telecom. This game is a new
concept of mobile game where users fire canons at others reading
the map, on which others’ locations are displayed, on their
mobile phones. And its users can express their feelings either
with emotion or in “chatting” while enjoying the game.
According to the concerned company staff, they are scheduled to
show off a mobile game not only associated with the LBS, but
also to be implemented with the Global Positioning System
(GPS) sooner or later.
� Web E&G Korea’s “Pengdori’s Dream”
� Zio Interactive’s
“3D Gunner”
As an LBS game, it is possible to confirm
users’ locations in real-time, it shows mobile game’s advantage
well, which an on-line game or a PC game can not imitate. In
particular, as it can make an alliance between regions and nurture
characters, it is expected to activate network mobile games.
3D Mobile games are also noticeable, which were introduced
in Korea last year, together with the LBS. Displaying Web E&G
Korea’s (www.webngkr.com) “Pengdori’s Dream” and “Dance
Factory”, Zio Interactive’s (www.zio.co.kr) “3D Gunner”,
GameVil’s “Hyper Battle 3D”, and etc., it is prospected that this
year will be the first year for 3D mobile games.
“Pengdori’s Dream” is a flying action game in which flying
penguins in the sky and missile attacking effects are expressed in
3D and creates excellent visual effects. “Dance Factory” is a
rhythm game, in which users are pressing the buttons corresponding to directions of arrows coming out according to the
melody of the music muck like “DDR”, an arcade game. Users
can enjoy exciting rhythms of the dance music while watching a
dancing girl’s rhythmic movements in 3D.
Besides, “Hyper Battle 3D” is appraised as the perfect 3D
game because all the characters in the game and their actions and
movements are expressed in 3D. And “3D Gunner” is a 3D
shooting game that shows battles between battleships and
fighters in the background of World War II, plus, it shows even
more realistic 3D effects.
Due to a limited number of 3D mobile phones in the market so
far, not a large demand for these games exists. But, because local
mobile service providers are targeting to have sales of more than
3 million 3D mobile handsets this year, it is prospected that users
will be able to enjoy more upgraded 3D games in various ways.
Wire & Wireless Linkage Games ‘Tide,’ Large
Portals Pour in
Another tendency of the local mobile games this year is the
“wire & wireless linkage.” Especially, the large game portal
companies, including HanGame, NetMarble and MGame, which
joined the mobile game market after opening the local Korean
market for the wireless network in September of last year, 2003,
have selected the mobile field as their main strategic market.
Accordingly, it is expected that they will compete fiercely with
existing specialized mobile game companies.
These companies set up their business strategies to strengthen
web-to-phone service positioning wire & wireless linkage games
on the front, specially based on the wire infra. And it is revealed
that they are developing a variety of wire & wireless games on
the basis of their users being secured through existing internet
games and game know-how.
NHN (www.nhncorp.com) providing the HanGame service
plans to apply wire&wireless games, which are now limited only
to the PDA, to mobile phones this year and, thus, show-off 10
kinds of in-house developed mobile games consecutively this
year.
NeoWiz (www.neowiz.com) plans to show-off pet games
using an avatar design based on the Pmang and the Say Club, as
well as, unveil network games associated with the 3 mobile
service providers. In addition, they are promoting a publishing
business which will explore the mobile role playing and the 3D
games together with the mobile service providers.
MGame (www.mgame.com) plans to provide services for
four kinds of wire & wireless linkage games that have been
developed by their subsidiary company, M JoyNet, and they add
more than 10 kinds of wire&wireless games at the same time this
year. They are in course of selecting a variety of contents
according to the plan that they will provide service combining
contents and games in the 2nd half of this year.
According to the plan to associate not only with the game
playing, but also, with the point, item and game money. They are
going on to increase the needed manpower in a exclusive charge.
A staff of a mobile game company said, “Though game portal
companies are now focusing on web-to-phone service, they could
be a threat to the mobile game companies, as well as, the network
game companies, if they use their quite a few members as the
weapon.”
Great On-line Game to Be Offered by Mobile Service
Following game portals, the on-line game companies are
showing off mobile versions of their great on-line games consecutively. Accordingly, it is expected even fiercer competition
within the mobile market this year.
Gravity (www.gravity.co.kr), servicing “Ragnarok,”
developed the “Ragnarok supplementary story” on the subject of
the game character “Kapra” and they are now providing a service
through KTF. This game is a master piece that is securing more
than 60 million users in 17 countries. According to the company
sources, it has an advantage that items in the mobile game can be
used in an on-line game. Furthermore, this company has
IT KOREA Journal _ 71
SPECIAL � 1. Market Trends of Local Mobile Games
� NCsoft “Lineage
Siege Hero Warfare”
� Gravity “Ragnarok”
� The Soft “Accrorace”
launched “Ragnarok Mobile” using six characters in the
“Ragnarok” on-line game and the company is on course of
strengthening the mobile business. Nexon (www.nexon.com)
is now providing “Mobile Beads”, which its subsidiary
company of Mobile Hands developed and a mobile version of
the on-line game “Beads” via SK Telecom. This game, which
can do both a wire & wireless linkage, can convert the points
acquired in the mobile game into on-line cyber money to
deposit. The concerned staff of this company said that they
were going to strengthen the business a lot, launching 10 kinds
of mobile games this year, 2004. HanbitSoft (www.hanbitsoft.co.kr) is planning to release the famous animation
“Atom” series this year, 2004 following its entry into the
mobile game market last year. And, it has become a progressing game portal business in cooperation with a leading
mobile contents company. NCsoft (www.ncsoft.co.kr),which
is famous for “Lineage”, has been showing off such mobile
games as “Lineage Portion Pangpang” and “Lineage Siege
Hero Warfare” that were developed from a model of Lineage,
and it supports to deposit points through both a wire & wireless
linkage. The Soft (www.accrorace.com) developed a 3D
mobile version of its on-line racing game “Accrorace” and it is
now servicing it through SK Telecom. This company plans to
launch “Accrorace” mobile games in a series this year, 2004.
Besides, quite a few on-line game companies including
Webzen (www.webzen.co.kr) are providing service of mobile
games developed after a model of their own on-line games. In
accordance with their conclusion that mobile phone’s performance is getting better enough not to damage the product
images of their representative on-line games, it is thought, in
general, that they want to be in a strategic position to preoccupy the local Korean mobile game market, which is
becoming larger.
Mobile Games “Long Run”, Too
Mobile games have an disadvantage that their life-span is
short. Recently, however, there are many mobile games that are
72 _ IT KOREA Journal
surviving more than one year. It’s just a few games that dash
into the “long run” showing off their “renewal version” every
year. Such an exemplary company is called Pocket Space
(www.pocketspace.co.kr). This company that prefixes
“pocket” to all its game as the brand name has devoted itself to
the sector of sports. This one of the main reasons why their
games have a long survival rate. In spite of a disadvantage that
sports games will lose female users, this company has more
than six kinds of mobile games which have been in service for
more than three years. In the case of the company’s representative game “Pocket Yagoo”, it recorded 600,000 down loads
and sales of KW1.2 billion for 3 years since its launching.
� Pocket Space “Pocket Tennis”,
“Pocket Yagoo2”
� GameVil “Nom”
� Com2us
“Boongobbang
Tycoon 2”
Besides, “Bread fish Tycoon 2,” which was launched last
year by Com2Us (www.com2us.com), is surviving over long
period of time with a sales record of 1 billion won for one year.
This game based on the subject of a fish-like cake vendor
makes a genre of business simulation simple and appropriate
for mobile games. It is said that users are not fed up easily due
to its many variances, though, its operation is rather simple.
Because of the success of this game last year, similar games
have shown up successively to give rise to the ‘Tycoon’ syndrome.
In addition, “Nom” which is a representative mobile game
from Gamevil, recorded monthly sales of 100 million won for
one year since its launching. The game, in which a hero character Nom is evading various obstacles can be played with a
button while the game is progressing fast, so it is appraised to
have created a new genre of mobile action.
Regarding the mobile games which succeed in maintaining a
long existence, Kim Do-shik, the president of Pocket Space
said, “Showing off the top quality games on the sports sector
only for five years is the secret of the long run success.” , and
he continued, “It’s natural that the life-span of mobile games
which are sensitive to the fashion is short. As we devoted ourselves to only one sector, our quality is accepted overseas.
Accordingly, we were able to advance into Europe following
Japan and the US. Now, it’s time that local Korean game companies should have their own peculiarity to advance into global
market.”
World No. 1 Korean Games, Rush in Love
Calls From All Over the World
According to game industry sources, as Korean mobile
games are developed, so love calls from all over the world are
rushing in. Export of mobile games in 2002 was more or less
2.5 billion won with a share of only 2% of the total game
market. But, it recorded an export of about 10 billion won
worth with a share of 5%. Since each mobile game company
set an export goal of several thousands of million won this
year, total exports are prospected to increase by geometric progression. It is even more encouraging that the export market is
diversified into Europe, the US and Southeast Asia, not to
mention those of Japan and from China in the past.
In case of China, Korean on-line game companies have
nearly dominated the market, hence, the Korean mobile game
companies are advancing into China, too. China has risen to be
the largest market in the world overtaking the US with 120
million mobile phone subscribers listed last year. However, the
supplying rate is only 16% and it has an even larger market
potential. 20 or so Korean mobile game companies advanced
into the Chinese market so far and several other companies are
preparing to penetrate into the market.
Following China, recently, KDDI of Japan plays a role of an
advance base for the Korean mobile games’ advancing into the
Japanese market. According to Edia of Japan’s branch office in
Korea, KDDI’s mobile games supplier, about 20 kinds of
Korean mobile games are serviced through KDDI, thus taking
the largest quantity, except for Japanese based games. Besides,
more than 20 other mobile games have passed the service proposals and are currently going through tests. So, it is estimated
that more than 30 Korean mobile games will be serviced via
KDDI.
The main reason that Korean local mobile game companies
are relying heavily on KDDI like this is that KDDI uses a Brew
based platform. Local mobile game companies that had experienced it through KTF, is targeting on KDDI which uses the
same platform as KTF.
Though the Japanese Java based mobile game market has
already been saturated, The Brew based market is now in the
introductory stage in Japan. Local mobile game companies’
Brew based game development capabilities and commercial-
ization experiences accumulated in Korea have made them
depend on KDDI as the easy partner.
Apart from China and Japan, Mana Stone (www.manastone.com) which developed its original mobile game
“Namoo (Tree)”, and Open Town (www.opentown.com) had
succeeded in exporting their mobile games to Germany. Web
E&G Korea had supplied three kinds of mobile games to
Telstar, the 1st tier mobile communication service provider for
Australia.
E3net (www.e3net.co.kr) which is well known for
“Stacking Coins”, supplied their mobile games to China
Telecom, the largest mobile communication service provider in
Taiwan that has been servicing the games since last February.
As more and more local Korean mobile game companies
advances into the global market, so has Korea’s image has been
strengthened as a strong country in the IT field.
� Mana Stone
“Namoo (Tree)”
� E3net “StackingCoins”
List of Korea’s Leading Mobile Game Companies
COMPANY NAME
Eznego
Entaz
Emotion
Geotel
Mjoynet
Olarks
Opentown
Zio Interactive
Com2us
GameVil
Mdream
Cecraft
E3net
Web E&G Korea
ManaStone
Pocketspace
Softenter
Enium
FLUX
Mobilise
NAZCA
Norigae Soft
Softnyx
TOMIS Information
Entelligent
Gretech
URL
www.eznego.com
www.entaz.com
www.emotion.co.kr
www.geoteli.co.kr
www.mjoynet.com
www.olarks.com
www.opentown.com
www.zio.co.kr
www.com2us.com
www.gamevil.com
www.m-dream.com
www.cecraft.com
www.e3net.co.kr
www.webengkr.com
www.manastone.com
www.pocketspace.co.kr
www.softenter.com
www.enium.co.kr
www.flux2game.com
www.mobilrise.com
www.nazca.co.kr
www.norigaesoft.com
www.softnyx.co.kr
www.tomis.co.kr
www.entelligent.co.kr
www.gretech.com
TEL
82-2-3424-7772
82-2-547-0623
82-2-542-1987
82-2-548-7244
82-2-3486-3910
82-2-6230-6853
82-2-2203-6310
82-2-3218-8208
82-2-6292-6000
82-2-876-5252
82-2-543-0169
82-2-548-4634
82-2-565-1800
82-2-576-6505
82-2-2192-3900
82-2-566-5010
82-2-558-8600
82-2-3446-7676
82-2-2299-6839
82-2-458-6017
82-2-3141-8302
82-2-712-3915
82-2-3783-7300
82-2-784-0110
82-2-928-7623
82-2-2112-5700
IT KOREA Journal _ 73
SPECIAL � 2. The Leading Local Mobile Game Companies
The Leading Local Mobile Game Companies
Com2us Corporation
Com2us Corporation (www.Com2us.com), established in 1996
and incorporated in 1998, started its mobile internet game service
first in Korea in 1999. They also developed a Java based game for
the mobile phone which was a first in the world back in 2000.
So far, Com2us has serviced more than 70 kinds of mobile
games through three mobile service providers including SK
Telecom, KTF and LG Telecom. Besides, it has strengthened its
position as the global mobile game specialist supplying mobile
games to more than 40 countries including Japan, China, Europe
and the US.
Com2us has devoted itself to the belief in technology and
development with its 50 game developers out of 90 of its total
employees. The company’s representative mobile game is its
original “Fish Bread Tycon 2”, which had recorded 700,000
downloads in less than a month after its launching.
“Fish Bread Tycon2”, which was launched in April, 2003, is
the first local business simulation game, in which a street vendor
makes “Fish Bread”, fish-shaped small breads to save money by
selling the breads, and, then getting another vendor to sell the
breads with the saved money. Users can enjoy the game by
pressing the numbers from 1 through 9 like dialing a mobile
phone. Users can find an efficient method by themselves while
they are playing the game with its convenient User Interface (UI).
This ability within the game is what stimulates interest in the
game. “Fish Bread Tycon2” is still popular with a record of more
than 1 million downloads in January of 2004. By dint of the popularity, it made a new genre of the Tycon type and made the
Tycon series games all the more popular. It is the first and
original game of all the Tycon series games.
74 _ IT KOREA Journal
Thanks to these popular games, Com2us has become the
leading mobile game specialist in Korea with a sales of 12
billion won last year.
This company has been exploring overseas markets since 2000,
not to mention of the local market. It is now penetrating into 40
countries including those in Asia, Europe, as well as the US. It set
up a branch office in London. Com2us is now servicing a mobile
sports game, the Korean League of Pro Baseball, and a Western
style four-stick game, Backgammon via Vodafon Global, T
Mobile, Orange and Telefonica to 21 countries in Europe, such as
the UK, Germany, France, Spain, Greece and Egypt. This Korean
firm is scheduled to launch a tennis mobile game called “Andre
Agasi” a bowling game entitled “Bowling2”. The company is
also scheduled to supply eight kinds of mobile games including
“Andre Agasi” through Verizon Wireless, AT&T Wireless and T
Mobile U.S,A., sooner or later, in the US market. Com2us established a branch office wihinte in Japan in March, 2002. The
company is now providing its mobile games via the Japanese
leading mobile service providers, KDDI, NTT within the
Japanese market. In particular, it ranked 1st at the Java portal in
Japan last year based on its technical capabilities of servicing
Java based downloading mobile games and being the first in the
world to do so. Its technology is accepted even in the Japanese
market, a very strong mobile game country. The company has
been supplying its mobile games to China Telecom and China
Unicom since 2003.
● URL: www.com2us.com
● Tel: 82-2-6292-6018
Web ENG Korea
Web ENG Korea (www.webengkr.com), established in June,
2000, is a specialized mobile game company with a capital of
510 million won and 45 employees. It was registered with LG
Telecom as the contents provider (CP) in October of the same
year, and it supplied two kinds of mobile game contents.
In March, 2001, it was registered as LG Telecom’s official CP.
In May of the same year, Web ENG Korea was awarded with the
“grand prix” in the category of digital contents with its “wire &
wireless linkage virtual avatar chatting” for Information &
Communication Minister’s trophy. It was supplied to NTT in
cooperation with SK Telecom in July, and they shipped 12 kinds
of the Virtual Machine (VM) associated contents to Japan in
August.
Web ENG Korea supplied to KTF in January, 2002, and
shipped three kinds of its mobile games to the UK and Germany
through “Midlet” of Europe in June of the same year.
This Korean firm succeeded in entering into the Chinese and
the US markets in February and March, 2003, respectively.
This year, 2004, the company also supplied three kinds of
mobile games to Telsta, a 1st tier mobile service provider of
Australia.
Web ENG Korea is famous for the “Blue Marble,” which was
launched in July, 2003, among its quite numerous mobile games
in service.
It is a mobile version of the master piece of a board game also
entitled “Blue Marble.” Multi-users throw dice at the same time
to move their horses and its users play business games of real
estate, hotel and tour targeting on major cities in the world. This
mobile game is far improved from the existing “Blue Marble.”
Users can now buy items at stores to destroy other user’s
buildings and villas, make other user’s horses fall into a sleep or
coma and the players can increase the points on the surface of the
other user’s die. Adding a variety of events, this popular game
stimulates an user’s interest even more.
Web ENG Korea is drawing attention with its latest 3D associated mobile games, “Paengdori’s Dream” and “Dance
Factory.” Paengdori’s Dream” is a flying action game in which
flying penguins in the sky and missile attacking effects are
expressed in 3D and it displays excellent visual effects.
“Dance Factory” is a rhythm game, in which users are
pressing the buttons corresponding to directions of arrows
coming out according to the melody of the music like “DDR”,
an arcade game. Users can enjoy the exciting rhythm of the
dance music while watching a dancing girl’s rhythmic movements in 3D.
● URL: www.webengkr.com
● Tel: 82-2-576-6505
Pocketspace
Pocketspace (www.pocketspace.co.kr), established in
March, 2000, is a speciali
zed mobile game company.
The company has focused
on the development of only
sports mobile games. Its
major games are all about sports including baseball, football,
tennis, boxing and golf. The baseball game is among “long run”
mobile games that has registered 600,000 users only in Korea. As
the company devoted itself only to a single sector, sports, the
number of games launched by Pocketspace is less than other’s.
But, its product quality is accepted all over the world.
Pocketspace games are serviced not only through local three
mobile service providers, but also, through the KDDI of Japan.
The Korean firm’s games are serviced not only by a single sppots
game, but under the title of “Pocket Space Zone” that combines
all the sports. Besides, the company’s games are serviced as an
example via J-Phone, T-Mobile and Verizon in Japan, the US
and Europe.
In particular, PocketSpace, whose technical capabilities are recognized by overseas customers, is planning to set up corporate
companies in Japan, Germany and the US this year and it will be in
course of developing mobile games to KDDI’s platform, a main
business partner with the Japanese outlet in the first half of 2004.
● URL: www.pocketspace.co.kr
● Tel: 82-2-566-5010
Entaz
Entaz (www.entaz.com), established in February, 2000, as a
specialized mobile game company, serviced two kinds of its
mobile games through local three mobile service providers in
November of the same year of its founding. But, the company’s
main platform is the Brew and it supplied 36 kinds of Brew associated mobile games to KTF. Entaz is expected to record a sales
of 5billion won from KTF.
IT KOREA Journal _ 75
SPECIAL � 2. The Leading Local Mobile Game Companies
The football mobile game, “Gangster’s Football,” which was
developed after the “2002 Korea-Japan World Cup Football
Games” was designed for its users to play games in real time
against each other using a network system.
Using lovely gangster characters, this game shows playing
football in a peculiar way and its user can enjoy the game in real
time together with other users due to the use of the network
system. Besides, a user can play the game watching a PC level
graphics and sounds because of the Brew system. After then,
there were various Gangster series mobile games that had been
launched by Entaz.
● URL: www.entaz.com
● Tel: 82-2-525-6017
MjoyNet
MjoyNet (www.mjoynet.com), which was established in May,
2000, as a specialized mobile game company, succeeded in supplying a mobile game version of the then popular comic book the
“Fiery Veteran Warrior” to SK Telecom in November of the
same year of its founding, The game company gained its great
popularity at that time.
“Fiery Veteran Warrior” is a Korean comic book series that
opened a new genre of comic chivalry which was beyond the traditional genre of the usually serious and grave chivalry, attractively popular among its readers. Users can meet lovely animated
characters expressed in 3D that practice and fight one another in
this mobile game version.
This uniquely Korean game consists of its scenario and on-line
modes. The scenario mode takes the adventure method, by which
existing readers of “Fiery Veteran Warrior” can become characters in the story as they create an adventure.
And, the on-line mode lets the characters raised in the scenario
mode appear in the warriors’ world, the cyber space, in which the
characters fight each other and make themselves known to other
users.
As this game became popular through SK Telecom, so it is
also serviced through KTF from June of 2001.
● URL: www.mjoynet.com
● Tel: 82-2-3486-3910
76 _ IT KOREA Journal
Eznego Corporation
Eznego (www.ezn
ego.com) established in
2001 as a specialized
mobile
game
developer, supplied Iapplication “Hockey”
to the NTT of Japan in
December of the same
year of its founding in
Korea. The company
was awarded special
recognition at SK
Telecom’s Mobile
Multimedia Contents
Contest Presentation n December, 2001, for its “Kill’em All” and
this game company supplied the the SK-VM associated game,
“Harry2” to SK Telecom.
After then, Eznego continually supplied mobile games to SK
Telecom. This game firm launched KTF’s multi pack associated
game “Cartris” in March, 2002. At present, Eznego is providing
many kinds of network games such as “Fishing,” “Poker” and
“Go-stop” under the “ZENIO” brand to SK Telecom and KTF.
Eznego’s “Brain Survivor” was awarded with an “Excellent
Game for This Month” by the Korean Ministry of Culture and
Tourism in June, 2003.
● URL: www.eznego.com
● Tel: 82-2-3424-7772
Zio Interactive, Inc.
Zio Interactive (www.zio.co.kr), established in August, 1997,
is a specialized mobile game developer that is now developing
mobile games interfaced with various mobile phone platforms
and PDAs.
Displaying the PDA game “Zio Golf,” which was interfaced to
WindowCE, first appeared in the world market in 1999. Zio
became famous and it established a branch office in April, 2000,
because of the recognition of its development capabilities. In
addition, the company succeeded in concluding an alliance
agreement with Intel in the PDA sector in 2001, as well as,
advancing into the Japanese market in September of the same
year. The Korean game company started to supply its mobile
games to the KDDI in September of last year. And, it succeeded
in supplying its mobile games to China Unicom in October of last
year.
Zio Interactive has numerous licensed mobile games and
genuine games with its representative game being the famous
wrestling match entitled the “WWE Mobile Madness.” Its
platform is GVM, while interfaced with 40 polyphonic sounds
and 260,000 color pixels. This game, which is serviced through
local three mobile service providers, implemented famous pro
wrestlers’ various techniques within mobile phones. Besides, the
company is providing its service for the 3D associated mobile
game “3D Gunner.”
● URL: www.zio.co.kr
● Tel: 82-2-3218-8237
screen, a first in the world, to escape a variety of obstacles and
monsters by pressing a single confirm button. It is serviced
through local 3 mobile service providers.
Besides, GAMEVIL has recently shown-off a 3D associated
game entitled “Hyper Battle 3D.” The company achieved a sales
of 4.5 billion won on the Korean local market last year and a sales
of 200 million won in Hong Kong, Taiwan, Japan, the US and
Europe the same year. GAEMVIL set an export goal of 500
million won.
● URL:www.gamevil.com
● Tel: 82-2-876-5252 (204)
GAMEVIL Inc.
M DREAM (www.m-dream.com), established in February of
2002, is a specialized game company.
The company develops mobile games, on-line games and PC
games. M DREAM was designated as the excellent contents
provider (CP) in the category of mobile games by KTF in
December, 2001, and it was selected as the best partner in April,
2002 by SK Telecom.
M DREAM, which supplies numerous mobile games to SK
Telecom and KTF, had developed and launched mobile versions
of such arcade games as “Raccoon” and “Bogulbogul” to create a
popular following.
The company launched a mobile version of the Japanese adult
comic book “Classmate,” of which the scenes in the game are
reproduced nearly the same as the original scenes. All five female
characters in the game each has one’s framework of the story like
the comic book. It is serviced to those who are 18 years old or
older.
M DREAM was designated as a promising export company
in July, 2002, by the Small and Medium Business Administ
ration and it was awarded with a “2002 Venture Grand Prix”
Commerce, Industry and Energy Minister’s trophy sponsored
by the Korea Venture Business Association.
The company incorporated M DREAM China in
November, of 2002, and it is aggressively developing
overseas markets.
● URL: www.m-dream.com
● Tel: 82-2-543-0169
GAMEVIL (www.gamevil.
com), established in January,
2000, is a mobile game specialist that is now supplying
numerous mobile games to
local three mobile service
providers.
The company completed
development of the strategic
simulation game labeled
“Quasi Three Ancient Kingdoms” by using the LBS technology, which GAMEVIL first did
in Korea and it has been providing its services through SK
Telecom since February.
The basic scenario of this game is individuals battling against
one another between towns with key positions not located on the
Chinese continent but within SK Telecom’s base stations.
Making an alliance among users via a network like on-line
games, they attack others and defend themselves.
A genuinely original mobile game called “Nom ( Male),”
which has survived for more than one year period “long run” and
launched in February, 2003, has continued to record a sales of
more than 100 million won per month.
This is the mobile game in which its user can play by turning
mobile handsets, thus breaking from the fixed idea of the LCD
M DREAM Co.
IT KOREA Journal _ 77
SPECIAL � 2. The Leading Local Mobile Game Companies
E3net Co., Ltd.
E3net (www.e3net.co.kr), established in May, 2000 as a specialized mobile game developer, supplied its first mobile game to
KTF in December of 2002. “Stacking Coins” launched in
February, 2003, was a great success.
This game is a “long run” mobile game serviced through three
local mobile service providers that has survived for more than
one year. This is a game in which its users stack coins. The more
coins that are stacked, the higher the number of points are
obtained. E3Net signed the contract with Nation Tips of Hong
Kong in April of last year as its supplier to China, plus, E3net
supplies its wares to China Mobile through M. Net, NEC’s subsidiary company. E3net concluded a supply contract with a
Taiwanese contents provider (CP) in August of the same year
and it shipped its material to Hong Kong and the Philippines.
Besides, the company made contracts with “Play Station”,
“XBOX” and “Success” of Japan in September of the same year.
This game is serviced via Vodafon and the NTT of Japan, as
well.
E3net has supplied its “Stacking Coins” to China Telecom, the
largest mobile service provider in Taiwan since February of this
year, 2004.
● URL: www.e3net.co.kr
● Tel : 82-2-565-1800
Norigae Soft Co., Ltd.
Norigae Soft (www.norigaesoft.com) started business
on November 19, 2000, as a
specialized wireless internet
solution and mobile game
developer, and it was incorporated in June, 2001.
Norigae is now supplying
its base business VM (Virtual
Machine) game titles to local three mobile service providers
including SK Telecom.
Norigae Soft is now developing many types of mobile games
78 _ IT KOREA Journal
in connection with existing network service providers. As it positively participated in the Government’s task project, it was designated as an “Excellent New Technology Company” by the
Korean Ministry of Information and Communication. And, it was
designated as a promising export company by the Small and
Medium Business Administration.
Besides, the company was awarded with the “Preliminary
Support for Excellent Game” given by the Korea Game
Development Institute (KGDI) and with “Excellent Game for this
Month” by the Ministry of Culture and Tourism.
Its representative mobile game is a sports game entitled
“Basketball” that interfaces with 4Gray and 256 colors. This
mobile game with convenient interfacing has a fast scrolling and
a giant character’s realistic action.
This company is planning to export mobile game contents to
Europe, U.S.A., Israel and China at present.
● URL: www.norigaesoft.com
● Tel: 82-2-712-3915
Entelligent
Entelligent(www.entelligent. co.kr), established in
September, 2001, has developed and supplied 11
kinds of mobile games to
SK Telecom since March,
2002.
Entelligent Inc. The representative mobile game of
this company, which was
awarded with a “Korea
Game Grand Prix” consecutively for the past two years
(2002 and 2003), is the
“Heroes of Three Kingdoms
Unlimited War.”
This game is an action RPG game associated with Network
and the game has a record of being ranked 1st for six consecutive weeks (from end of December, 2003 to end of January,
2004) by SK Telecom. It is ranked 2nd now with an accumulated 300,000 downloads. The platform of this game is the
GVM. Mobile phones with 256 colors or so can be used for this
game.
● URL: www.entelligent.co.kr
● Tel: 82-2-928-9582
SPECIAL � 3. Interview POCKETSPACE’s president Kim Do-sik
Pocketspace
POCKETSPACE’s president Kim Do-sik
POCKETSPACE (www.pocketspace.co.kr), the
mobile game specialist, has been developing mobile
games and providing service through mobile service
providers in Korea and abroad. It is remarkable that
the company has been concentrating on “sports”
only. It recorded the sales of KW2 billion in 2003.
According to the company’s president Kim Do-sik,
POCKETSPACE ranked the middle among the top 30
companies, which takes in about 80% share of the
total annual sales of local 500 mobile game
companies. The company was established in March
of 1999 as one of the front runners for the mobile
game companies. Though it was incorporated in
March of 2000, it follows Com2us, the first mobile
game company considering the year of its
establishment being 1999.
“Mobile games need specialty, too”
K
im Do-sik, the president of POCKETSPACE, passes
through “A man who was born for the games.” My
curiosity about him disappeared upon calling upon him for an
interview. More than 40 software items for the PS2 and the
XBOX at a glance were densely piled up in his office. Taking a
closer look at them, I realized that those software items were not
local games, but original Japanese games. I was very much interested in those games and when I expressed my envy to him, he
said, with pride, that he had ten times as many game software
items at his home. He said he felt relieved to buy one when a new
game software came out. And, he continued, “ Since I am not free
these days, I cannot enjoy playing games, and he pointed a stack
of video game machines left in the corner of his office. He has
never lost a game. I realized that he was a veteran game player
among the industry’s CEOs.
Since childhood, playing such games was his hobby and his
specialty. Kim Do-sik, born in 1973, started his business in 1999,
when he was 28 years old. His business career is only that he
worked for an internet related company as the team manager of
business strategy for one year. He had no reason to delay starting
his own business because he believed he was destined to become
the business man of games. The only reason he had to be with the
company for one year is that he had to wait for Lee Joon-hee’s
employment contract, the present head in charge of development
IT KOREA Journal _ 79
SPECIAL � 3. Interview POCKETSPACE’s president Kim Do-sik
of the games at POCKETSPACE, to expire, because Kim himself
is not an engineer.
Venture businesses should give up their “short
sight” and concentrate on a sound target market
Kim Do-sik first wanted to start an on-line game business.
However, because it required a lot of investment money and manpower, he decided to do a mobile business to save money for it.
Now, four years later, he thinks that it was right for him to have
started a mobile business.
He believes that because mobile handsets’ performance is
noticeably developing day by day, mobile games will surpass all
other games sooner or later. At present, on-line and video games
excel in quality and quantity. Yet, the boundary between wire and
wireless will not always exist and mobile handsets’ performance
will not fall behind those of video game machines or desktop PCs
in the near future.
The mobile games, by which users can play games at any time
and at any place different from where the games are located at
desk or indoor, will surpass them soon. And so, Kim Do-sik said
that he would definitely create a mobile game business after 5 or
10 years.
Concerning the current market situation, in which 500 mobile
game companies take part, he said, “It is because of their “Short
Sight,” the local venture companies face their major problems.”
He experienced quite a few companies that forget their business
philosophy to go astray due to their “Short Sight,” by which they
decide easily to venture into other business. Therefore, he, from
the beginning, has devoted himself to only “sports” among a
variety of mobile games. He has prefixed “Pocket” to all his
mobile games. It may remind one of the Japanese “Pocket
Monster,” but it does not matter at all. And, he named “Pocket -”
for his company to emphasize that the company is a specialized
game company for mobile handsets, which users can carry by
putting the games into their pockets.
The company’s leading games include baseball, basketball,
football, tennis, boxing, golf, etc. “Baseball” was very popular,
with 600,000
users in Korea. Regarding the question to why he sticks to the
sports games despite it may lose female users, he said, “Because I
like the sports, and I can do them well.”
He stressed, “The life span of mobile games is said to be rather
short, because the games follow ever changing fashion tastes and
meet a current social demand.” So, he does not make licensed
games of famous movies or TV dramas. He made it a rule to
show off simple, but not boring, and high quality games. He
80 _ IT KOREA Journal
always plays the new games himself upon their being developed
before launching. If he concludes that some of them are not satisfactory to him, he does not hesitate to abandon them. It is his
business mind-set that if a game is entertaining to him, then it
could entertain others.
It is a venture business to work with good people.
Owing to it, the number of POCKETSPACE’s new games is
less than half of that of other’s. But, the product’s quality is well
accepted well all over the world.
POCKETSPACE’s mobile games are serviced not only
through three local mobile service providers, but also through the
KDDI of Japan. Its games are serviced not by a single sports
game, but under the title of “Pocketsspace Zone” which combines
all sports. Besides, the company’s games are serviced as an
example via J-Phone, T-Mobile and Verizon in Japan, the US and
Europe.
He is confident that though “sports” mobile games are
developed a lot by game companies abroad, none of them have
closely competed with his firm yet. Over four years of his steady
efforts of sticking to “sports” games have brought such a result.
The company’s slogan this year is “Global Market.”
POCKETSPACE is now setting up corporate companies in
Japan, Germany and the US, and it has organized a business
team, exclusively for the global market. And, POCKETSPACE is
on course in developing mobile games for KDDI’s platform, a
main business partner for POCKETSPACE in the first half of this
year, 2004. Later, it will develop such games again for the local
Korean mobile service providers.
These days, Kim Do-sik often plays basketball with his
employees in the gymnasium near the company after work.
Sometimes, he plays football with his close friends. He has, also,
taken part in the district
society of Bundang, a new town near Seoul, as a baseball
player. He said, “POCKSPACE has never lost a game at the
football matches with Web ENG Korea. ”
Regarding his
philosophy on life, he replied, “Endless Change.” Since CEOs of
venture companies usually have to face a lot of difficulties, it is
essential that they should be capable of dealing with the difficulties. He feels satisfied in encountering users on the street who
are enjoying the mobile games of POCKETSPACE. He ended
with, “I hope I can devote my lifetime to my favorite field while
working happily with my good employees.”
Pocketspace
Market Report|2003 Business Results of Domestic Mobile Industry
1. Mobile Phone Services
Total Subscribers- 33.59 Million, Over
70% of Total Population
SKT took 87.5% of net new subscribers in 2003 while
LGT and KTF maintained their status quo
As of the end of 2003, the total
mobile
phone
subscribers
recorded an increase of 1.25
million from 32.342 million in
2002 to 33.592 million.
A milestone in the history of the
Korean domestic mobile communication industry was set by
the number of subscribers
accounting for more than 70% of
the total population.
When the number of subscribers
passed over the 60% of the total
population in October, 2001, the
domestic mobile communication
service providers said the market
was saturated, and in two years,
the percentage surpassed 70%
which only a few countries
including Singapore recorded.
Edited by mobilecom (www.mobilcomi.com)
T
he net increase of new subscribers in 2003 was reduced to 40% of that of previous year, indicating that the domestic market almost reached its saturation
point. The number of net increase in 2002 reached 3.297 million while 1.249 million in
2003, which indicated that the net increase of new subscribers in 2004 would not
surpass 1 million.
2003, together with the reduction of the net increase of new subscribers over the
previous year, the number of new subscriptions and cancellations were also reduced.
The new subscribers reached 10.049 million in 2001 and 10.834 million in 2002 and
dropped to 7.725 million in 2003. The number of cancellations were recorded at 7.821
million in 2001, 7.537 in 2002, but 6.476 million in 2003. These statistics indicate that
the domestic mobile phone service market is saturated, and, thus, ready to go into its
stabilized phase. It is uncertain that the trend of the market’s stabilization will be continued in 2004. Recently, the phone number migration system was introduced, which
removed the barrier for subscribers to change their service providers. It is highly possible that the cancellation cases will rapidly be increased.
With the introduction of the phone number migration system, the fierce competition
among service providers is expected to target the subscribers of other service
providers. This action by the service providers will likely cause the increase of cancellations and new subscriptions. For example, SK Telecom recorded an average of
216,000 cases of cancellations a month in 2002. The company, however, said that as of
January 15, 2003, 180,000 subscribers left the company, and total cancellations
reached 229,000, surpassing the average cases of the previous year. In 2004, the
increase of new subscriptions and cancellations is likely to be inevitable in the Korean
domestic mobile communication service market.
SKT took 87.5% of the net increase of subscribers in 2003
SK Telecom overwhelmingly led the market in 2003. Out of 1.25 million of net
increase of subscribers, SKT took 1.094 million(87.5%). In 2002, the company also
dominated the market, taking 61.9% of the net increase of subscribers.
The KTF and LG Telecom took 109,000(8.7%) and 47,000(3.7%) of the new subscribers counted in the net increase respectively. KTF and LG Telecom seeing the net
IT KOREA Journal _ 81
decrease of subscribers for five and seven consecutive months
respectively had to be satisfied with the fact that their subscribers were not reduced in that year.
The difference in net increase of new subscribers between
SK Telecom and the two other PCS service providers was
mainly caused by cancellations rather than the gaining of new
subscriptions. In 2003, SK Telecom received 3.688 million
(47.7%) new subscribers, KTF 2.618 million(33.9%) and LG
Telecomm 1.419 million(18.4%). The shares of new subscribers did not show any overwhelming difference.
Considering SK Telecomm experienced the decrease of 6%
from the 53.2% of the market share in 2002, the numbers of
new subscribers of the three companies were well balanced.
However, SK Telecomm saw some 2.595 million subscribers
leave while respectively KTF and LG Telecomm saw 2.509
million and 1.372 million respectively. SK Telecom recorded an
average of 1.2% of the monthly cancellation rate while KTF and
LG Telecomm recorded 2.0% and 2.4%. SK Telecomm never
saw a monthly cancellation rate higher than 2%. In February and
December, 2003, the company saw the monthly cancellation rate
of less than 1%. The difference of cancellation rates resulted in
the overwhelming market share of SK Telecom.
Handsets with color display account for 57% of
total handsets used in Korea
In 2003, SK Telecom achieved a remarkable business record
in every quarter. In January, the cdma2000 1X subscribers surpassed 10 million. In the second quarter, the cdma2000 1xEVDO subscribers surpassed 1 million. It was August 9 in the third
quarter that high-end multimedia service, ‘June’ subscribers,
surpassed 1 million. Color display handset users surpassed 50%
of its subscribers in September, and 10 million in November.
SK Telecom overwhelmed its two competitors in both quantity
and quality of subscribers.
In December, SK Telecom announced that 10.57 million
subscribers of the company used handsets with a color display,
accounting for 57.7% of total subscribers of the company. The
percentage of 57.7 was the highest one among three domestic
mobile communication service providers. Since the company
had far more subscribers than the other two companies, it was
no wonder that SK Telecom was the first company in which the
subscribers using color display handsets surpassed 10 million.
Rather than the actual numbers, the highest percentage of color
display handset users was more meaningful.
KTF fiercely competed for the highest percentage of color
display users and ended the year with 57%. As of the end of 2003,
82 _ IT KOREA Journal
the subscribers using color display handsets reached the 5.953
million mark. Since KTF recorded a higher rate of color display
handset users(30.2%) than SK Telecom(24.8%) at the end of
2002, the former outnumbered the latter until the end of
September 2003. But KTF passed on its place to SK Telecom due
to the poor business results in the net increase of new subscribers.
SK Telecom and KTF surpassed the 50% mark of color
display handset using rates of their subscribers in September,
but LG Telecom followed in November, 2003. Until the end of
June, LG Telecom maintained about 30% of the color display
handset using rates of its subscribers. Since July, when the
company launched a new color handset under the brand of ‘Can
You Phone,’ the rate began to rapidly increase. In the first half,
the subscribers using color display handsets showed an increase
of 529,000, and 767,000 within the second half. Out of 1.296
million of the net increase of color display handset users in
2003, 60% was achieved in the second half of that year.
The handsets with a color display emerged as a leading
product in the domestic Korean mobile handset market. As of
the end of 2002, only 28.4% of total mobile communication
service subscribers used color display handsets. In 2003, 9.996
million subscribers changed their handset into those with color
display. The color display handset is the key factor to expand
the high performance multimedia services. The fact that more
than half of mobile communication service subscribers use
color display handsets means that the foothold to expand the
wireless Internet service is has been prepared.
The cdma 1X handsets used by 73.9% of subscribers, the Wireless Internet market is
expanding
In 2003, subscribers using the high-end handsets beyond the
cdma 1x version reached 24.827 million, recording an increase
of 8.289 million from the recorded 16.538 million of the previous year. The cdma 1x handset using rate, also, increased
rapidly from 51.1% in 2002 to 73.9% in 2003. Only 28.5% of
subscribers used the IS-95A/B handsets.
In 2003, the cdma 1x handsets with a color display emerged
as the mainstream of the domestic mobile communication
service market. The wide spread of high-end handsets is predicted to result in the rapid growth of the domestic wireless
Internet market in 2004 and 2005.
By service provider, 16.444 million subscribers(78.8%) out
of the total subscribers of SK Telecom, 7.472 million(71.6%) of
KTF, and 2.93 million(60.6%) were found to possess handsets
beyond the cdma 1x version. Comparing the fact more than 1/3
ARPU, 7,189 won higher than that of the cdma 1x subscribers.
The voice ARPU of the cdma EV-DO was 37,476 won which
was 7,368 won higher than that of cdma 1x subscribers.
The cdma EV-DO subscribers with high-end handsets show
a tendency of using far more data and voice call services than
others. Compared with 2G subscribers showing the ARPU of
20,891 won in voice call and 1,151 won in data service, the
ARPU of cdma 1x subscribers are more than twice as higher.
The subscribers of ‘June’ and ‘fimm,’ the representative
high-end multimedia services of SK Telecom and KTF were
totaled to be 3 million as of the end of 2003. The former
secured 1.678 million and the latter 1.33 million. As of the end
of 2002, the ‘fimm’ service recorded 101,000 subscribers while
‘June’ 66,000. However, due to the poor result of the net
increase of new subscribers, KTF was behind SK Telecom in
the number of cdma EV-DO subscribers in 2003. SK Telecom
first celebrated the passing of over 1 million subscribers of the
‘June’ on August 9, 2003. As of the end of 2003, the ‘fimm’
subscribers accounted for 12.7% of the total subscribers of
KTF, while the ‘June’ was 9.1% of those for SK Telecom.
of the total subscribers of KTF and LG Telecom used 2G
handsets, SK Telecom lowered the percentage to about the level
of 1/5. As of the end of 2002, the subscribers with cdma 1x
handset accounted for 57.7%, about 10% higher than 47.1% of
KTF. The difference between the two companies was narrowed
as of the end of 2003. LG Telecom also raised their percentage
of subscribers using the cdma 1x handsets from 36.3% in 2002
to the level of 60%.
Subscribers using the cdmaEV-DO accounted for
13%, increased by 24 times over the previous year
The subscribers of the cdma EV-DO, the latest synchronous
commercial service, accounted for 13% of the total domestic
mobile communication service subscribers. The cdma EV-DO
subscribers reached 4.379 million in 2003, recording a
remarkable increase of 4.207 million from 172,000 in 2002.
The growth rate was 2400%.
In the field of the cdma EV-DO, SK Telecom, also overwhelmed its two competitors. As of the end of December, 2003,
SK Telecom had 3.562 million subscribers, showing an
increase of 3.428 million over the previous year and taking
81.3% of the cdma EV-DO market. KTF recorded 816,000
cdma EV-DO subscribers, making an increase of 778,000 from
38,000 of the previous year.
The cdma EV-DO subscribers of SK Telecom and KTF
accounted for 20% and 7.8% respectively. The cdma EV-DO services result in the high ARPU. The more subscribers use the cdma
EV-DO services, the higher income the service providers achieve.
According to the data from SK Telecom, the subscribers using
the high-end handsets beyond the cdma 1x recorded 6.978 won
of the average ARPU. Excluding the cdma EV-DO service subscribers, the ARPU decreased by 1,516 won to 5,462 won.
Considering that the cdma EV-DO subscribers reached 1.433
million which accounted for only about 10% of total subscribers using high-end handsets(12.375 million) as of the end
of June 2003, the above described difference of the ARPU indicates the high ARPU from the cdma EV-DO subscribers.
According to the data from KTF in the third quarter of 2003,
the cdma EV-DO service subscribers recorded 10,524 won of
The largest matter of concern is whether or not SK
Telecom can keep its market share in 2004
In 2003, SK Telecom overwhelmed the domestic Korean
mobile communication service market. Yet, with the introduction of the phone number migration system, SK Telecom
has to be alert to keep its subscribers from moving to other
service providers.
The phone number migration system was introduced sequentially with a six-month term to the subscribers of SK Telecom
on January 1, 2004, KTF on June 1 and LG Telecom on
January 1, 2005, which is likely to provide even more difficulties for SK Telecom keeping its market share.
During the first 15 days of January 2004, 142,000 were
accepted as new subscribers, but total cancellation cases
reached 229,000 cases, which included 180,000 cases that
migrated to other service providers. If the situation goes on, SK
Telecom is expected to record the net decrease of its subscribers
for the first time in 2 years and 6 months since June 2001.
Mobile communication subscribers of the three service providers in 2003
Dec
Jan
Feb
Mar
April
Total number 47,640
47,663
47,687
47,711
Subscribers
32,342
32,417
32,631
Provide Rate
67.9%
68.0%
68.4%
May
(unit:1,000 person)
June
July
Aug
Sep
Oct
Nov
Dec
Sum
47,735
47,759 47,782
47,806
47,830
47,854
47,878
47,901
47,925
47,925
32,859
32,992
33,066 33,169
33157
33155
33,208
33,283
33,445
33,592
33,592
68.9%
69.1%
69.2% 69.4%
69.4%
69.3%
69.4%
69.5%
69.8%
70.1%
70.1%
IT KOREA Journal _ 83
Market Report|2003 Business Results of Domestic Mobile Industry
2. Wireless Internet
The Korean domestic wireless Internet market
grew to the size of 2 trillion won, recording an
increase of 60% over the previous year.
Excluding the SMS, net sales revenue reached 1.4 trillion
won… The Nate, a wireless Internet portal site, recorded
100 billion won of the monthly sales revenue.
In 2003, the Korean domestic
wireless Internet market was
increased by 60% over the
previous year to pass over the
2 trillion won mark in total sales
revenue. The VOD services
represented by the brands
‘June’ and ‘fimm’ led the
growth. In addition, the mobile
games and other mobile
contents, also, made a significant contribution to the
growth. In particular, the mobile
contents recorded the total
sales amount of 400 billion won
T
he Korean domestic wireless Internet market was lingering at the level of 1.2 trillion
won in 2002 and it made an increase of 60% in 2003 over the previous year which
amounted to the level of 2 trillion won. As of the end of the third quarter of 2003, the accumulated sales revenue of the wireless Internet hit 1,399.2 billion surpass the total sales
amount of the previous year. As of the end of November 2003, the total sales revenue of
the three mobile communication service providers amounted to 1,789.1 billion won.
The aforementioned market made a remarkable growth in the first quarter, recording
418.2 billion won of the total sales revenue. Since then the market grew by 50 billion won
in the second and third quarters with 469.4 billion won and 511.5 billion won of the total
sales respectively, and the in the fourth quarter, the market reached the level of 600 billion
won, recording 10 billion won of increase from the previous quarter. Even the monthly
sales revenues in October and November reached the 390 billion level to approach 418.2
billion won in the sales revenue of the first quarter.
No one expected that the total sales of wireless Internet would achieve the level of 2
trillion won. The market was generally predicted to reach 1.9~1.95 trillion won. But the
soaring growth in the fourth quarter enabled the market size to surpass the 2 trillion won
level. The remarkable growth of the fourth quarter was led by SK Telecom.
to be one of the best supplementary services, leading the
increase of sales revenue of
service providers as a lucrative
service following the SMS.
84 _ IT KOREA Journal
NATE, a wireless Internet Portal of SK Telecom, is on the threshold of
100 billion won in monthly sales revenue
In April 2003, SK Telecom recorded 100.4 billion won of monthly sales within the
wireless Internet field, which was increased to 128 and 141.5 billion won in October and
November respectively. In particular, the growth was achieved by the NATE-related
wireless Internet excluding the SMS.
SK Telecom achieved 90.1 billion won in the monthly sales of the NATE which
increased by more than 10 billion over the previous month(79.8 billion won in
September). Considering the trend of growth, it was forecast that the 100 billion won level
of monthly sales revenue in the net wireless Internet sector, excluding the SMS, would be
opened sooner or later.
The market size of 2 trillion won was not formed by only the
wireless Internet because a considerable amount of sales
revenue of the SMS was included in those total numbers. The
sales revenue of the SMS accounted for about 30% of that of
the wireless Internet for the three service providers(SK Telecom
29%, the KTF 27% and LG Telecom 28%). It is considered reasonable that the real wireless Internet market reached the level
of 1.4 trillion won.
The sales revenue of the SMS accounted for about a half of
the wireless Internet sales revenue in 2001(SK Telecom 49.2%
and KTF 47.7%), but less than 1/3 in 2003, which indicated the
increase of access to wireless Internet with the expanding supply
of high-end handsets including those with color displays.
The increase of the weight of the wireless Internet in the
ARPU also indicated the growth of the Korean domestic
wireless Internet market. In the case of SK Telecom, the
wireless Internet accounted for only 10% of the ARPU in 2002
that grew to 17.3% in November 2003. It accounted for 19.6%
of the net ARPU, excluding the subscription and access fees.
The wireless Internet accounted for 14.1% of the ARPU of
KTF. Excluding the subscription and access fees from the
ARPU, it accounted for 18% as of November 2003. Compared
with the same period of the previous year, the ARPU of the
wireless Internet in November reached 5,464 won, showing an
increase of 992 won from the 4,472 won(accounting for 11.4%
of the total sales revenue) recorded in November, 2002.
Compared with the total sales revenue, the percentage of sales
revenue of the wireless Internet grew by 2.7%.
LG Telecom recorded weak business results in the
high-end handsets area, which was led by the
wireless Internet businesses.
The wireless Internet content formed about a 400 billion won
market in 2003, accounting for about 20% of the total wireless
Internet markets. SK Telecom took 230 billion won(58%), KTF 120
billion won(30.3%) and LG Telecom 46.5 billion won(11.7%).
SK Telecom recorded a higher market share in this market
Sales revenue of wireless Internet by quarter
7,000
380(6.3%)
6,000
371(7.9%)
5,000
370(7.3%)
1,450(24.0%)
336(8.0%)
4,000
1,196(28.6%)
3,000
2,000
1,267(27.0%)
1,316(26.0%)
2,650(63.4%)
3,057(65.1%)
3,383(66.7%)
4,200(69.7%)
1 Quarter
2 Quarter
3 Quarter
4 Quarter
1,000
0
LG Telecom
KTF
SK Telecom
than those of the mobile communication service subscribers
(SK Telecom 54.5%, KTF 31.1% and LG Telecom 14.4%), but
LG Telecom’s was lower.
The weakness of LG Telecom was caused by the fact that the
percentage of subscribers using high-end handsets beyond the
cdma 1x was lower than that of the other two competitors.
As described before, it was September, 2003 that SK
Telecom and KTF experienced the percentage of subscribers
using handsets with color displays crossed over the 50% level
mark, but LG Telecom didn’t reach it until November, 2003. In
the case of handsets capable of high-speed download, the gap
was wider. SK Telecom recorded more than 50% of the subscribers with handsets beyond the cdma 1x version as of the end
of 2002 and a 60% level in February of 2003. But, LG Telecom
recorded 50% in August, 2003 and 60% in December, 2003.
Compared with KTF reaching 50% in February, 2003 and 60%
in June, 2003, LG telecom lagged behind.
An analyst said that the lack of strategy on wireless Internet
was one of the causes of weak business results in the field. He
continued that LG Telecom did benchmarking to catch up with
the other two competitors without its own policies and vision,
which led to the frequent trial and errors. At the end of 2002,
LG Telecom revised the whole menu through the benchmarking, but the company continuously changed the menu only
to bring confusion to subscribers.
sales revenue of wireless Internet by service provider
(unit:billion won)
Dec
Jan
Feb
Mar
April
May
June
July
Aug
Sep
Oct
Nov
Dec
Sum
SK Telecom 957
895
820
935
1,005
1,042
1,010
1,092
1,103
1,188
1,280
1,415
-
11,785
KTF
430
410
371
415
418
422
426
433
463
465
463
486
-
4,773
LG Telecom 116
115
104
117
123
129
119
122
122
126
126
131
-
1,334
Total
1,420
1,295
1,467
1,546
1,593
1,555
1,647
1,688
1,779
1,869
2,032
-
17,89
1,503
IT KOREA Journal _ 85
Market Report|2003 Business Results of Domestic Mobile Industry
3. Mobile Handsets
Domestic manufacturers supplied 120
million handsets in 2003
Samsung supplied 55.7 million, LG 26 million, recording
the largest volume so far
The Korean domestic mobile
handset manufacturers showed
a clear contrast among themselves in 2003. The two majors,
Samsung and LG, were busy
renewing their highest business
record in every quarter while
the small-sized venture companies made their all-out effort
to survive.
In 2003, 13.89 million handsets
were supplied to the Korean
domestic market. It was comparatively a poor result, compared with the 16 million
handsets supplied in 2002.
In fact, a lot of expectation was
placed on a market where its
users began to change their
handsets with new ones.
T
he total quantity sold in 2003 was less than the 14.76 million handsets sold in 2000
and the 14.02 million handsets sold in 2001. Some said the newly launched high-end
models created demands. Yet, something was wrong in the domestic mobile handset market.
Considering the two year change cycle of mobile handsets, the basic demands for substitution were estimated to be 14 million. Adding the 2 million demanded sets created by the
new high-end model, the total demands should have reached at least 16 million handsets in
2003. But, only less than 14 million handsets were sold in the domestic market in 2003.
An analyst said the poor business results were a result of the burdensome high prices
and the rapidly changing roadmap of handset area. At present, the handsets from Samsung
are sold at prices of 500,000 to 600,000 won, which are similar to the prices of refrigerators. Handsets with build-in digital cameras are usually priced at the 400,000 won level.
To the subscribers in their twenties and thirties, who in particular prefer handsets with a
built-in digital camera, the prices at the 400,000 won level make them hesitate on whether
to change or not, which was thought to have an influence on the domestic market.
The domestic mobile handset market entered the mega pixel age. It is predicted that
handsets with a built-in digital camera of 2 million pixels would be launched in the second
or third quarter and 3 million pixels at the end of 2004. The rapid changes of the handset
roadmap also make users hesitate in changing their handsets, expecting another new
version with better specifications. This factor, also, had a negative influence on the
domestic handset market in 2003. In addition, the handset manufacturers were reluctant to
supply their products to SK Telecom because of the serious situation of SK Networks, the
mother company, caused by the improper practices in the management, which also
worked as a discouraging factor in the handset market in 2003.
The ‘big 3’ held a total of 86% of the market share
In 2003, the domestic ‘big 3,’ Samsung Electronics, LG Electronics and Curitel took
86% of the Korean domestic mobile handset market, and Motorola, SK Teletech and the
KTFT held 10% or so. A total of 96% or so of the domestic market was dominated by the
six companies in 2003. Sewon Telecom and Telson, OEM and ODM companies, had no
real chance to take their share in any meaningful amount.
Even the VK, which had focused on overseas markets, launched the VK100 in
December, saying that the model was the highest-end handset among the same grade
86 _ IT KOREA Journal
are expected to launch additional models with built-in mega
pixel digital cameras. In the second quarter, they are likely to
compete with the time to launch additional models with built-in
digital cameras of 2 million pixels.
In the Korean domestic market of handsets with a built-in
digital camera, Samsung Electronics recorded the lion’s share
of the market at 58%, supplying 4.19 million sets. Curitel
emerging as a strong competitor to Samsung took 15% of that
market supplying 1.07 million sets. Curitel began to effectively
focus on the domestic market with its new models having builtin cameras. LG Electronics took only 8% of the marketplace
until the third quarter, supplying 600,000 handsets. The
company showed its potential starting in September of that year
by its launching new models. Since then, the company has supplied 100,000 sets a month. In 2004, LG Electronics is predicted to fiercely compete with Curitel.
ones. This new model had little influence on the domestic
market in 2003.
In conclusion, six or seven companies were competing with
the Korean domestic market and this would continue until the
full-scale W-CDMA market was formed.
In 2003, Samsung Electronics took the share of 53% in the
domestic Korean mobile handset market, supplying 7.385
million handsets. The company made efforts to raise their
market share to 55% but failed because of the advent of Curitel.
LG Electronics recorded their share at 22%, supplying a total
of 3.1 million or so handsets, which was evaluated as the
average result. The company, however, displayed its reserved
strength, by selling more than 200,000 handsets of 130/1300
models, newly launched handsets which came with such highend specifications as the installation of additional memory chips
and application processors.
Curitel had 11% by supplying 1.64 million handsets. It was a
big jump for the company that once only had recorded a one digit
market share. The company greatly promoted its brands and built
up a strong foothold in the domestic market through the competition on the development of such high-end handsets as those
with a built-in mega pixel digital camera and stereo speakers
Domestic mobile handset manufacturers supplied
120 million sets in 2003
The Korean domestic mobile handset manufacturers
achieved abundant business results in 2003, supplying a total of
120 million sets, excluding the 30 million sets of Nokia TMC.
The Korean mobile phone manufacturers took in about 25% of
the global market. Among the domestic manufacturers,
Samsung Electronics, in particular, achieved remarkable results,
supplying 55.7 million sets. The company supplied 15 million
sets in the third and fourth quarter. In 2004, the company is
forecast to supply at least 65 million sets.
LG Electronics, also, recorded their best results in the firm’s
mobile handset business history. In 2002, the company supplied
16 million sets and was expected to supply 25 million sets in
2003. As of the end of 2003, the company recorded 26 million
sets of supply to be the second largest suppliers in the Korean
domestic market and fifth in the global market.
LG shipped 6 million sets of the GSM mobile handsets for
the first time in 2003 so to prepare a foothold allowing for their
“take-off” in the GSM handset markets. Considering 10 million
GSM handset in shipments, the company is targeting a total
supply of 35 million mobile handsets in 2004, thus becoming
the fourth largest supplier in the global market.
Handsets with a built-in digital camera account for
higher than 50% of the market
In 2003, the handsets with a built-in digital camera became
the mainstream of the market, accounting for 51% of the total
handsets in Korea. In particular, a total of 75% sold in the 4th
quarter of 2003 were those handsets with a built-in digital
camera. In the first quarter of 2004, the handsets with a built-in
digital camera were predicted to account for higher than 80% of
the newly sold handsets.
In particular, since October, 2003, an increasing number of
handsets with a built-in mega pixel digital camera have been
launched becoming a mainstream product in the Korean
domestic market. Samsung Electronics and Curitel competitively launched handsets with a built-in mega pixel digital
camera in October, 2003. At the end of the year, LG Electronics
also began to supply those types of handsets. In the first quarter
of 2004, most of the domestic mobile handset manufacturers
Major manufacturers’ supply of mobile handsets in the Korean domestic market in 2003
Total Supply
Camera Phone
(unit:1,000)
2003 Jan
Feb
Mar
April
May
June
July
Aug
Sep
Oct
Nov
Dec
Sum
1,232
1,024
880
898
1,155
1,137
1,114
1,172
1,318
1,362
1,292
1,306
13,890
296
301
281
316
435
487
570
622
868
989
966
1,000
7,131
IT KOREA Journal _ 87
Company Interview|Mointek
The Leader of Digital Video Solution
The company that developed the video editor for
mobile phones is now nurturing the dream of becoming the
world-best “multimedia communications company”
Dr. Kim Jeong-hun, along with other experts, founded Mointek (www.mointek.com) when he was a
researcher at the Electronics and Telecommunications Research Institute (ETRI). The company has
developed a host of technologies —the “multimedia authoring,” the “CDMA/IMT-2000 diagnosis and
testing,” and the original MPEG-4/7 technologies. Mointek, also, succeeded in the commercial
development of the “Digital Video Authoring Software” technology, as well as, being a leader in the digital
video field, thanks to its content-based image retrieval (CBIR) technology.
Reported by Shim Woo-sung ([email protected])
P
resident Kim is an engineer who worked
company is continuously developing new
at the ETRI for 15 years. A specialist in
technologies and products.
the computer and communications fields, he
Simultaneous pursuit of “research”
and “survival”
established Mointek in June of 1999, when
Korea was facing a financial crisis. His
decision was a bold one, he could only rely
Like most engineers, President Kim had
upon technological power. Located in
technological acumen, but he was not
Daedeok Valley, Mointek is an R & D venture
familiar with the business world and its prac-
company that develops various future-oriented
� Qsign studio
tices. Since its foundation, the company has
concentrated too much on advanced tech-
technologies along with the ETRI.
Initially, lacking capital but confident of its
nology development with the ETRI and the
technological power thanks to the firm’s
company has suffered from insufficient
gathering of high quality engineers, Mointek
funding for five years. Venture companies in
now boasts many original technologies in the
the Daedeok Valley, like Mointek, boast
areas of video encryption, video indexing,
superb brain power and their engineers all
image retrieval, video summary generation,
dream about high-tech products that do not
MPEG editing, ITS Dedicated Short Range
even exist. To enter the realistic world of the
business market, however, they have to deal
Communications (DSRC) and CDMA diagnosis and monitoring. Never stopping, the
88 _ IT KOREA Journal
� Digital Board
with the hard realities of that market, espe-
Mointek
“Qsign Studio,” a video editing
software, is the result of
Mointek’s transformation. This
ambitious product, intended for
people who do not have
professional editing skills,
allows them to do video editing
with ease.
� President Kim Jeong-hun
cially, when it comes to funding. Mointek is now changing.
board), which was released immediately before Qsign Studio,
“Somewhat belatedly, we realized that developing advanced
is an e-learning software for presentation and authoring edu-
technology does not guarantee a company’s survival,” says
cational contents. The software facilitates presentation,
President Kim. Recently, thanks to government support,
lecture, and the generation of various contents. Because of its
Mointek went through a marketing consulting program.
high pricing and immaturity in the market place, the item’s
President Kim has renewed his resolution which is as follows:
sales did not soar despite the high attention it captured.
“Before, we’ve vaguely thought that technology will give us a
More recently, Mointek released a solution for mobile
bright future someday. Now, we have abandoned ‘engineers’
phones that allows for video editing and it is contacting mobile
pride’ and technologies that do not attract consumers’
communications service providers. Unexpectedly, the solution
attention.” Therefore, Mointek, is now going after technologies
is much more than simple editing software; it is equipped with
that can be commercialized in 10 to 20 years and the
functions comparable to those for desktop PC’s. Moinstek
company is entering the existing market for survival’s sake.
hopes that mobile phones installed with their developed
“Qsign Studio,” a video editing software, is the result of
Mointek’s transformation. This ambitious product, intended for
people who do not have professional editing skills, allows
software will become very popular with consumers.
With the ETRI, Mointek is also very busy developing hotly
pursued contents for satellite DBM.
them to do video editing with ease. Qsign Studio is already
supplied to schools and 30 universities and educational institutions. The market was so positive about the quality of Qsign
Studio that it is used in multimedia training programs for
teachers.
True venture business through self-controlled
management
Through the above mentioned efforts, Mointek is aiming for
a 500% sales increase this year. Such a goal appears to be
Overseas importers, including those in the United States,
unrealistic. President Kim, however, explains that it looks that
Australia, and Japan, are greatly interested in Qsign Studio
way because last year’s sales record was so low. Even
and negotiations are actively underway. The DIBO (digital
including sales of various R & D services, the firm’s sales
IT KOREA Journal _ 89
Company Interview|Mointek
amounted to a mere 400 million KRW last year. This year,
corporate management. The company name “Mointek” was
through its exclusive sales agency in Japan, Qsign Studio and
coined from “moin (gathering of people or technology)” and
DIBO will be exported and at the same time, Mointek will
“tek (technology).” “If you can open employees’ minds, their
establish a separate sales corporation and promote an
minds will be oriented toward the development of the company
aggressive marketing campaign in the Korean domestic
as a whole,” says President Kim. He even argues that
market. By Mointeck supplying mobile phone video editors to
employees’ salaries should take into account the number of
mobile communications service providers and by maintaining
name cards they have.
its current thrust in R & D, it is expected that a 500% increase
would turn out to be a reasonable goal.
The idea is that doing business is meeting people. Mointek
is famous for having no restrictions related to dress code or
Plus, Mointek is also counting on a “Korean style media
work hours. Employees even decide on their own salaries.
player,” a LINUX-based media player, which will soon be
President Kim is resolute that these aspects of “self-man-
released into the domestic market currently occupied by
agement” will be maintained even when Mointek becomes a
foreign products. According to President Kim, the Mointek
much bigger corporation. All employees support his idea and
version will be more powerful than that of Microsoft’s Windows
“self-management” is firmly in place at Mointek. President Kim
Media Player.
says, “a venture business that is run by just a few employees
Mointek has the capability of releasing such diverse
is like a family. A company run by the principle of self-con-
products because it boasts an array of original solution tech-
trolled management is an embodiment of what is a true
nologies such as digital video authoring tools, search and
venture business. And I want to maintain that corporate tra-
save tools, as well as, video compression and security tools.
dition forever.”
President Kim emphasizes that “human” is the essence of
Major Mointek Products
▶Qsign Studio
its user’s selection and consumption of the video images
This is a popularized version of the digital video authoring
under various environments, including digital broadcasting,
tool that can easily and speedily edit video contents on the
the Internet and mobile communications.
Internet and user-made contents made by camcorder.
Thanks to Qsign Studio, video editing is no longer monopo-
▶ Content-based surveillance video indexing and
lized by specialists.
search system
Under a surveillance environment, this system offers a
▶DIBO
variety of functions: a detection of object’s movement
This system is for digital writing and production of educa-
ability, as well as, indexing and search.
tional contents with wide e-learning applicability including
addition to an automatic surveillance function, this system
presentations and educational contents authoring.
offers an efficient integrated management of high capacity
surveillance videos.
▶ MPEG-7-based video summary generation and
Thanks to this comprehensive solution, the surveillance in
browsing technology
various workplaces can be automatized, its traffic can be
An application technology that uses the MPEG-7 as a
analyzed statistically and automatically, plus, over-
standard, this is a video summary generation and browsing
speeding and passing the center-line can be automatically
technology that offers efficient search and browsing tools for
detected.
90 _ IT KOREA Journal
Company Interview|NRD-Tech
“1Gbps ultra-high speed wireless communications
network” for the first time in the world
A millimeter-wave system, using the 60GHz band leads to
the development of a wireless communications system
whose speed surpasses light communication speed
NRD-Tech, a venture company located in Busan, developed the 1Gbps ultra-high speed wireless
product, whose speed surpasses the light communication speed. The company made a sensational
debut in several overseas markets including Japan, Taiwan, Hong Kong, and China. Established in 1998,
NRD-Tech (www.nrdtech.com) — the author of the technological shock — is a company specializing in
an ultra-high speed wireless communications network. The company was jointly established by professor
Yoneyama of Japan, a world-famous specialist in the field of the millimeter-wave and the originator of the
Non Radiative Dielectric Guide Theory and Professor Shin Cheon-woo of Kyungsung University was to
develop ultra-high speed wireless products that use the millimeter-wave.
Reported by Shim Woo-sung([email protected])
E
stablished in September of 2000, NRD-Tech is headed
whose maximum theoretical speed is 11Mbps.
by Shin Cheon-woo, a professor at Kyungsung
Reporters decided to conduct a test in Busan where NRD-
University. The millimeter-wave communications system that
Tech is located. It took only about 10 seconds for the
this
company
developed
notebook PC in a moving car to
operates at 30GHz-300GHz,
download a 100M high-volume
which allows a speed that is 100
video. Even more surprising was
times faster than the 1GHz band
the fact that the hand-off was func-
used
phones.
tioning perfectly in the car that was
Therefore, under their system,
speeding at 60km. NRD-Tech has
high-volume multimedia data
developed its own hand-off system
can be transmitted to and from
which is completely free from tem-
mobile phones. In addition, its
porary disconnections and delays
speed is 1Gbps: more than ten
that often occur in the wireless
times faster than the 2.4GHz
LAN connections.
for
mobile
band-based wireless LAN,
The epitome and secret of NRD
IT KOREA Journal _ 91
Company Interview|NRD-Tech
the NRD-Tech firm worked with other Korean venture companies such as Dasan Networks and MMC Technology1.
These companies thus boasted Korea’s status as an IT
: : : Click : : :
power. The second step consists of installing the network in
Client B
Client A
the whole Taipei area. With the completion of the third step,
all of Taiwan will be covered by the system.
HTTP://WWW.NRDTECH.COM
Besides Taiwan, the Korean company is also implementing
a new business project with the HP Hong Kong’s system
business division. NRD-Tech has, also, established partnerCamera
Video출력
ships with major companies in China and Japan. In Japan and
Germany, this Korean firm is even considering establishing
� NRD-Tech Network
subsidiaries.
Leading companies such as Sony and HP have recognized
technology is a plastic antenna that took six years of research
the technological power and potential of this Korean company
and 100 researchers for its R&D works. Designed from a wave
and are interested in making investments. Despite such
engineering rather than electronic engineering perspective,
success abroad, NRD-Tech almost gave up doing business in
the antenna uses plastic as the dielectric material to reduce
Korea because the needed band was not licensed. President
wave radiance. About 100 relevant technologies were
Shin reaffirmed his resolution: “Our business is so unique that
patented in about 100 countries including Korea, China,
it is something without precedence. Because there isn’t any
Japan, European countries, etc.
precedence, we cannot get the license. We, thus, have to
NRD-Tech, which released 35GHz, 60GHz, and 75GHz
succeed abroad, make a precedence, and, then, apply for a
band products, is concentrating its marketing efforts on a
license in Korea. We must succeed abroad so that we can
60GHz band product because although its transmission dis-
enter the Korean market. This is quite the opposite of what
tance is limited (about 1 km), it is free from frequency inter-
other Korean businesses are doing.”
ference and security problems. Its 35GHz and 75GHz band
products have a communication distance of 50km and 10km,
respectively and this means that these products can cover a
major city.
A rush of orders from abroad, 10 billion KRW
sales expected this year
President Shin’s reason for launching this business is
More famous abroad than in Korea
Bakbone
Because the frequency band necessary for its products is
not licensed in Korea, this company is making marketing
Contents
sever
Network architecture
ISP
Bakbone
inroads abroad. In particular, in March of last year, NRDTech signed a 20 billion KRW contract with a Taiwanese
Anywhere
broadcasting company to initiate an ultra-high speed
wireless communications service to cover the whole of
Taiwan. According to the first step, Panchiao was covered by
Outdoors
Internet & Contents Service
July and the areas near Taipei by September.
These areas include schools, a stadium and government
buildings. In setting up the wireless communications
network, only domestically made equipment were used as
92 _ IT KOREA Journal
Anytime
High capacity internet service throught wireless LAN
NRD-Tech
more than ten times faster than
the 2.4GHz band-based wireless
LAN, whose maximum
theoretical speed is 11Mbps.
� President Shin Cheon-woo
unusual. As early as March, 1999, after a three-year study,
amounted to 600 million KRW. Of course, Korean domestic
Professor Shin made a presentation on the 60GHz band
sales are nil. This company expects that sales this year
wireless communications technology. At the time, the
would be 10 billion KRW — almost 2000% growth from last
backbone was just T1-based and when he argued that
year. NRD-Tech’s confidence stems from the fact that, as
wireless communications speed could reach 1Gbps, some
mentioned above, many countries are already buying the
critics even said that he was a defrauder. This hurt his pride
technology and countries like China and Japan are even
and President Shin wanted to prove that he was speaking the
interested in manufacturing the company’s products in their
truth by launching the business.
own countries.
In silence, he researched for three more years and, at last,
in 2002, he completed the development and commercial-
President Shin, however, says “the bottomline is that tech-
ization of this technology. What he got, however, was a cold
nological development will be done in Korea because although
response from the very high speed Internet service providers
we are not respected in Korea, we cannot let our core tech-
and wireless LAN companies. They acknowledged the
nologies leak to other countries.” Fortunately, there is a large
strengths of the technology, but, they were not interested in a
domestic corporation that is interested in mass producing
technology that cannot use licensed frequency.
NRD-Tech products and negotiations are undeway.
Furthermore, the “portable Internet” era was slowly
Finally, President Shin said, “Korea is surely an IT power
emerging and this also was a blow to his business — the
but in truth, outside of Seoul, even in the case of major cities,
government was supporting the development of portable
the communications environment is deplorable. I hope NRD-
Internet. President Shin did not give up and tried harder to
Tech will contribute to the vitalization of a communications
demonstrate the potential of his technology to the overseas
network in the rest of the country. I, also, want to show that
markets.
academics can succeed as entrepreneurs. I wish I could be a
The result was a big success. Last year, sales to foreign
good model for young engineers.”
companies, who bought his products as “samples,”
IT KOREA Journal _ 93
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Internet Statistics
※ Source:KRNIC
Statistics on Domestic Internet Use
(As of January 2004)
� The Number of .KR Domains
Boosted by the launch of Korean language domain services in the
latter half of 2003, the total number of .kr domains registered
reached an all time high of 611,548 by December 2003. This
number, however, started to fall in January 2004, decreasing to
608, 314. A monthly breakdown shows that the number started
to increase from mid-year until it reached an increase of 7.5% (the
highest) in November. The slight drop began in December.
A look at .kr domain registration within two-level domains shows
that co.kr takes up the largest proportion at 459,520(75.54%)
followed by Korean language(Hangul) .kr with 11.76%. The
domain type with the highest rate of increase was (Hangul) .kr
with 2.98% followed by or.kr (0.63%) and go.kr (0.63%). Other
domain types, however, showed decreases in registration.
Proportion of .KR Domain Registration
Number of .KR Domains by Year
Number of .KR Domains by Month and by Type
Number of .KR Domains by Month
94 _ IT KOREA Journal
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A look at the number of .kr domains by region shows that Seoul
accounts for the most with a rate of increase of 55.59%, followed
by Gyeonggi (16.46%), Busan (4.52%), Daegu (3.93%), Incheon
(3.56%), Daejeon (2.21%), and Gwangju (1.91%). Even though
there is no change in the standing of the regions, it is interesting to
note that the proportion of domains registered in areas other than
Seoul and Gyeonggi province is growing, closing the gap between
Seoul and the other regions.
Number of IPv4 Addresses Allocated for Korea
Regional Proportion of .KR Domain Registration
Number of IPv4 Addresses by Country (Unit: Addresses, as of January 2004)
Domestic Distribution of IPv6 Addresses (sTLA/35)
� Current Condition of IP Address/AS Number in Korea
Under the IPv4 system, the APNIC allocates IP addresses on a
regular basis depending on the past and current demand for IP
addresses in each country. IP addresses allocated for Korea are
currently based on C class unit and distributed to domestic ISPs. As
of January 2004, IPv4 addresses secured to Korea numbered
30,980,608 with an additional 1,769,472 allocated to Korea in
October 2003. Korea ranked 9th, following the US, Japan, Canada
and others in total number of IP addresses.
IT KOREA Journal _ 95
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Internet Statistics
※ Source:KRNIC
Internet Statistics In Korea
(As of January 2004)
As it did in the number of IPv4 addresses, the US ranked first in the
number of IPv6 addresses (73) followed by Japan (65), Germany
(51) and Switzerland (41). Korea ranked 12th with 18 addresses.
Number of AS Numbers Secured by Country
Number of IPv6 Addresses Secured by Country (sTLA/35)
※ 600 is the total number of AS numbers Korea holds while 524 is a total of AS
numbers allocated to Korea.
� Number of Service Subscribers by Access Channel
Autonomous System (AS) is a unique numbering system used for
the identification of a network, which is a combination of IP
addresses. The figure below is the cumulative number of IP
addresses measured since April 1997 when KRNIC initiated the
allocation service of AS numbers. By the end of January 2004, the
cumulative number of AS numbers allocated to Korea stood at
524. Korea ranked 6th, with 600, in terms of the number of AS
numbers secured.
Number of AS Numbers Allocated for Korea
96 _ IT KOREA Journal
The number of subscriptions for Internet access services through
xDSL (6,877,118 subscribers) and CATV (4,023,488) is higher than
through ISDN.
Number of Subscribers by Access Channel (As of December 2003)
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The above figure was based on raw data acquired from ISPs whose
IP addresses are allocated by KRNIC.
Results of the Survey on the“ Level of Informatization
for the Latter Half of 2003”(as of December 2003)
� Internet Use Rate and Number of Internet Users
� The Number of Mobile Addresses(WINC Service) Registered
As of January 2004, the number of mobile addresses (WINC)
registered for the WINC service, officially launched in July 2002,
stood at 5,898. WINC refers to a numbering system that enables
access to wireless Internet content, launched under the agreement
between KRNIC and three domestic wireless communication
carriers(KTF, LG Telecom, and SK Telecom). This new system
enables access to the wireless Internet through simple numbers
rather than having to enter complicated URLs. Anyone who wants
to register for access numbers can do so in real-time at one of the
web sites of the domain name resellers after checking whether the
numbers he or she wants are already registered or not.
Number of WINC Registered for Each Month
※ The cumulative number(1,569) before June 2002 is based on the data gathered
during the pilot service period.
※ Because of changes in measurement methods, there could be differences in
numbers for the same year between this edition and those editions issued
before summer 2003.
Results of Survey on the“Level of Informatization for the Latter Half of 2003”(As of December 2003)
An era of 30 million Internet users is just around the corner as the
number of Internet users has already reached 29.22 million(those
over six years of age who access the Internet more than once a
month). The percentage of Internet users in Korea, by the end of
2003, had increased to 65.5%, up 6.1 percentage points(or 2.95
million users) from the previous year.
Changes in the Percentage and the Number of Internet Users
A look at the percentage of Internet users and the number of
Internet users by gender revealed that 71.7% of men were using
the Internet(up 6.5 percentage points from the previous year; an
increase of 1.59 million to 16.01 million) while 59.2% of women
were using the Internet(up 5.6 percentage points, an increase of
1.36 million to 13.21 million).
IT KOREA Journal _ 97
|CENTER NEWS|
Internet Statistics
※ Source:KRNIC
Results of the Survey on the“Level of Informatization
for the Latter Half of 2003”(as of December 2003)
Comparison of the Percentage
of Internet Users by Gender
Comparison of the Number of
Internet Users by Gender
By vocation, 92% of office workers and 97% of students have
accessed the Internet. Housewives showed the highest growth rate
(up 13.1 percentage points from the previous year) with 50.3%
having accessed the Internet.
Comparison of the Percentage of Internet Use by Vocation
By age, the percentage of Internet users of two age groupspeople aged 6~19 and those in their 20’s- continued to increase to
exceed 94%(6~19: 94.8% up 3.4 percentage points; 20’s: 94.5%
up 4.7 percentage points). Interestingly, the age groups of those in
their 30’s and 40’s, which had showed relatively low rates in the
past, showed strong increases: 80.7%(up 11.3 percentage points
from the previous year, or an increase by 0.98 million to 7.14
million) and 51.6%(up 12.3 percentage points from the previous
year, or an increase by 1.08 million to 4.08 million), respectively.
Those in their 50’s also showed a steady increase in the percentage
of Internet users.
Comparison of the Percentage
of Internet Users by Age
98 _ IT KOREA Journal
Comparison of the Number of
Internet Users by Age
� Pattern of Internet Use
Those survey cited various purposes for using the Internet. While
most responded that they used the Internet primarily to get
information(searches, reading newspapers/news/magazines),
which is the basic idea of the Internet, many also answered that
they use the Internet for economic activities(shopping/reservations,
online banking), for communication(chatting/instant messaging,
Purpose for Internet Use (Multiple response)
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online communities), for entertainment(games, music, movies) and
for education. This is a testimony to the fact that the Internet has
become an integral part of our daily lives.
It was found that Internet users spent an average of 12.5 hours
online and that 85% of users had an e-mail account(an average of
1.7 accounts each).
Time Spent Online (weekly average)
Frequency of Online Shopping
Access to Fee-based Content?
Number of Email Accounts
46.9
27.3
16.8
The percentage of people who have purchased goods or services
online within the past six months was 39.9%. Most frequently
bought online shopping items, according to those surveyed, were
apparel/general merchandise(51.2%), books(34.5%) and car
accessories/daily necessities(24.0%). Regarding the frequency of
Internet shopping, 51.9 % said that they did it‘ less than once a
month’
, 34.7% responded‘ once or twice a month’
, and 12.3%
replied‘ more than three times a month’
.
Only 25.2% of Internet users have accessed fee-based content.
Popular fee-based content included online games(48.5%), Movies
and broadcasting(42.8%), and educational materials(21.8%). By
gender, men’s favorite online content included online games
(22.8%), research/study data(9.5%), adult-only sites(7.3%) and
newspaper/news(6.6.%). Women’s favorites were music(17.8%),
educational materials(11.5.%) and online communities(2.5%).
Online Shopping Items (Multiple response)
Most Frequently Used Fee-based Content (Multiple response)
3.9
4.6
0.5
Less than 1~2
an hour hours
2~4
hours
4~10 More than response
hours 10 hours
IT KOREA Journal _ 99
NEWS
Industry News
‘Wear Computers’ at Yong-In Songdam College’s
‘Digital, Wearable & Vision 2004’
A project team at Yong-In Songdam
digital hood jacket designed for health
direction for what we shall wear, and
College held the second exhibition of
and entertainment purposes, the ‘digital
where computing technology shall be
‘Digital, Wearable & Vision 2004’ at the
best’ that solved a mobile device’s
heading toward.
college’s Sugdam Art Museum during
major drawback, e.g., limited battery
Professor Chung said, “I wanted to
March 2 through March 5.
capacity, clothing of high functionality
share the outcome of the studies on the
using EL light designed for use under
wearable computers with other people
sorship from the Korean Ministry of
special
environments,
through this exhibition. I am happy to
Education
The exhibition, which receives spon&
Human
working
Resources
sportswear for ski or cycling, digital EL
see lots of people coming here and
Development, has attracted attention for
jackets that can be applied to clothing
showing an interest here.”
its new concept of the ‘wearable com-
for a theater performance During the
puter’ from the academic and industry
exhibition, models wore these clothes in
circles since launched in 2003.
a fashion show.
The concept of ‘wearable computers’
The exhibition showed a technology
originates from Marshall McLuhan who
of combining the LBS (Location Based
had projected ‘computers to become the
System) with voiced guides that allows
most important part of people’s apprarel’
children and the elderly people on the
in his book of the mid-1960s titled ‘War
move to be guided on which road to
and Peace in the Global Village’.
take by following the friendly voice of
Organizers at this exhibition said the
event is aimed at providing a
vision about the advanced technology
and directions for the future
culture as part of making his vision
come true.
their parents or family members.
Chung Ki-sam, professor at the
college’s medical information system
department, who organized the exhibition, delivered his lecture of the
‘wearable computing technology and its
The organizers displayed a variety of
application cases’, where he drew an
futuristic clothing that contrasts starkly
analogy between the desire of people
with traditional ones, and thus attracted
living in the 18th century for watches
lots of attention from visitors. Among
and the current culture for mobile
the clothing in the spotlight were: a
phones, and thus suggested a future
100 _ IT KOREA Journal
NEWS
Industry News
200,000 Subscribers Switched to KTF in Jan
Following the launch of MNP (Mobile
was found to be happy with the KTF
scribers to KTF were found to be in the
Number Portability), about 300,000 sub-
services. In a survey of these 160,000
respective age groups of 25 to 35 and
scribers switched to other operators in
switched subscribers in February 25 by
36 to 49.
January.
300,000
KTF found that 97% of them to be sat-
The ARPU of these switched sub-
switchers, 200,000 switched to KTF (or
Among
these
isfied with the KTF service and a 58% of
scribers to KTF was surveyed by KTF to
66.7%), and 100,000 switched to LG
them to show an intent to recommend to
be higher than that of existing KTF sub-
Telecom (or 33.3%), according to KTF.
their friends that they too should sub-
scribers as well as that of the sub-
The ratio of 66.7% for KTF versus
scribe to KTF.
scribers to SKT.
33.3% for LG Telecom is similar to last
The KTF analysis showed these
The average price for mobile phones
year’s comparable ratio of 68% for KTF
switched subscribers tend to be good
paid by these switched subscribers to
and32% for LG Telecom.
quality subscribers who usually are slow
KTF was found to be in the high-priced
A representative at KTF added that a
in changing their mobile numbers. A
range of 420,000 won or higher with
majority of these switched subscribers
39% and 28% of these switched sub-
multimedia functionality.
KT to Open High-Speed Ethernet Connection With Hong Kong
to the Hong Kong-Korea connection
November, 2003. Meanwhile, the dis-
results in a multiple functionality of its
tance between Korea and Hong Kong
Ethernet switches that also work for
was connected with the undersea cable
transmission and line allocations.
Flag East Asia (FEA) whose coverage
The international Ethernet Internet
service was introduced for the first time
extends from Korea to China, the Middle
East and Europe.
KT(www.kt.co.kr) has signed an
in Korea when a joint team of KT and
It was for the first time in the world, in
agreement with Hutchison Global
Japan’s Kyushu Telecom launched it for
particular, to put Ethernet VPLS tech-
Communications Ltd to provide an
a Japan-Korea connection in March,
nology into commercial use for the new
international high-speed Ethernet
2003.
Ethernet service on the Korea-Hong
Internet service for the Asia Pacific
Therefore, the Hong Kong-Korea con-
region after the completion of the
nection follows the Japan-Korea con-
So KT and Hutchison put a feasibility
Ethernet telecom network, a spokesman
nection for the international Ethernet
test in place to verify the quality of the
at KT said on February 25.
Internet service.
new Ethernet VPLS technology-based
Kong connection.
The international Ethernet-based
Unlike the Japan-Korean connection
service through testings of the interna-
Internet service offers an advantage of
which uses leased-line for point-to-point
tional telecom network connection and
simple network configuration, a low
line connection, the new Hong Kong-
stability. The deployment was made in
Internet usage fee, and various speed
Korea connection used multiple con-
consideration
options of from 1Mbps to 1Gbps. This is
nection type.
expansion, effective operation and
of
future
service
compared to traditional leased line-
To launch the new service, KT and
maintenance for an international
based Internet services offering little
Hutchison has deployed a joint Ethernet
telecom network between the two oper-
speed options on top of their compli-
platform at both KT’s Gwangwhamun
ators, and a standardization for service
cated network configurations. The
international gateway and Hutchison’s
operation quality.
advantage of the new Ethernet service
international telecom center since
IT KOREA Journal _ 101
NEWS
Industry News
SKT Ready to Launch Satellite for DMB
Service(DMB)
ready to designate its licensed operator.
In this way, Japan provide a nationwide
support to the satellite DMB service, as
COM2US Acquired
ISO14001
it regards it as a chance to take a
second leap into becoming an advanced
COM2US(www.com2us.com)
announced
IT nation.
In March, Korean lawmakers finally
on March 4
passed a revision of the broadcasting
that it has
act, paving the way to issue its license
won the ISO
for an operator of a satellite DMB in
14001 to fit
2004. Japan is faster than Korea in
the global s
issuing its license, as in Japan, a prelim-
tandards for environment-friendly
inary license for a satellite DMB was
management systems. The
already issued in July, 2003.
mobile game provider COM2US
SKT said that the Hanbyol Satellite for
It is the industry’s hope, therefore,
has expanded its business into
the upcoming digital multimedia broad-
that the nation won’t repeat the mistake
40 countries within Asia and
casting (DMB) service is ready to be
of the KT-launched Mugunghwa satellite
Europe, as well as, the US so
“shot-off” a launch pad, after moving
which had cost KT dearly, but it is short
that the company has shipped
into its launch pad on February 13. The
of being fully utilized due to a legal
out its mobile games through
Hanbyol Satellite is the world’s first
stranglehold.
local mobile operators and its
satellite of its kind for the use of the
DMB service.
The cost of the satellite was shared
by SKT for 34.66% and MBCO for
own branch offices or subsidiaries.
The satellite was completed on
65.34% of the total cost on the basis of
In April, 2003, COM2US star
February 12, after two years of con-
the number of relay equipment and cov-
ted its business in China. Park
struction at the Space Systems/Loral
erages. The total cost of buying and
Ji-Young, president of COM2US,
headquarters in Palo Alto, California,
launching the satellite, along with the
said, “The acquisition of the
the US started in June, 2002. On
operation of its ground offices and
ISO14001, combined with our
February 13, the satellite was moved to
insurance premiums, stood at 272 billion
global competitiveness, will bring
its launch pad at Kennedy Space
won, 94.5 billion won of which was
us closer to our drive towards
Center, Florida.
borne by SKT. The joint utilization of the
becoming a world-class mobile
The satellite is jointly owned by SKT
satellite is expected to allow SKT to
game provider, as it will put us
and Japan’s provider of the DMB
save at least 150 billion won by sharing
onto an effective track to maxi-
service MBCO for the common use of
cost with MBCO for insurance, oper-
mizing our business efficiency as
DMB service in both Japan and Korea.
ation, ground offices and satellite main-
well as activities for standard-
tenance.
ization.” COM2US is generating
The worldwide attention among global
satellite and IT players is paid to the
The satellite DMB service beams its
about 20 percent of its revenues
launch of the Hanbyol Satellite since
channels from the satellite to terrestrial
from its international business.
major operators in Japan and Korea
repeaters for relay to mobile phones,
This year, the company targets
joined forces to be a “fast-getter” in the
PDAs and vehicle receivers so that it
50 percent of its revenues to be
satellite DMB service.
allows subscribers to enjoy multi-
export-generated.
Japan completed revision of its
related acts on satellite DMB and was
102 _ IT KOREA Journal
channel multimedia broadcasting
anytime and anywhere.
NEWS
Industry News
SKT Develops A New Concept of Home-Network Service(SKT)
corner of the home, and, in case of
breaking into your home. Because the
emergencies like fire or gas leakages,
robots will be moving to trail these
the robots will send an emergency
people at home and will be taking real
message via mobile phone to home
time shots of them and sending the pic-
owners on the move. The new robotic
tures to the mobile phones of their
home-network service will be launched
family heads.
along with providers of artificial intelligence solution.
In this regard, SKT has provided a
telemetry service and tele-surveillance
So the new service allows home
service against maritime environment
owners on the move to keep a real-time
pollution since 2000, while also pro-
watch over every spot in their home by
viding a mobile home-network service
a moving robot. So this new service is
that allows its subscribers on the move
SKT plans to develop and launch a
compared to traditional services whose
to open or close their home entrance
new concept of home-network service
coverage is limited to several fixed
gates or gas meters. SKT plans to
using intelligence robotics during the
places where camera or risk-recog-
extend the scope of the mobile tele-ser-
first half of 2004. This is an advanced
nizing sensors are installed.
vices into mobile tele-medicine that
concept in home-network service, SKT
So you don’t have to worry, if you
allows patients to use mobile phones in
said, as the new service will use
leave behind your children or aged
sending their health information about
“robots”: Loaded with a camera and
parents alone at home, or you don’t
their blood pressure or other such things
sensors, the robots will go around every
need to feel nervous about an outsider
to their medical treatment staff.
Dacom Launched WLAN at Incheon Airport
Dacom
launched
the
at the Incheon International Airport - two
card for AirLAN service. The new
places at the departure lounge on the
AirLAN service at the Incheon airport
third floor and another two at the entry
does not require a separate access
lounge on the second floor.
program, as its users will be able to
AirLAN users connect wireless cards
have an easy access to the Internet
with their laptop or PDA so that they can
simply by entering the number of their
have an broadband access to Internet
prepaid card into the access authenti-
anywhere and at anytime, and they can
cation window that pops up when they
wireless
enjoy data transmission speed that is 30
clicks InternetExplorer. The AirLAN
‘AirLAN’ service at Incheon International
times faster than the speed of mobile
users can rent the WLAN card at the
Airport on February 2. So people can
phones.
AirLAN lounges for free and purchase
use a laptop to access the Internet at
Expatriats in Seoul are usually denied
said prepaid card at the same lounges.
the airport. Dacom was the Korea’s first
the comfort of easily accessing the
Meanwhile, Dacom provides the AirLAN
operator to provide a public wireless
Internet with their laptop, but they are
service for people in subway stations,
LAN (WLAN) service under its ‘AirLAN’
allowed to have their laptop-based
highway express bus terminals, public
brand. For the AirLAN service, Dacom
Internet access at the Incheon airport’s
agencies, etc., as well as for its
installed AirLAN lounges in four places
AirLAN lounge, once they buy a prepaid
Borahome.net subscribers.
IT KOREA Journal _ 103
NEWS
Industry News
Samsung Electronics Teamed With IBM to Develop System LSI
service MBCO for the common use of
of the KT-launched Mugunghwa satellite
DMB service in both Japan and Korea.
which had cost KT dearly, but it is short
The worldwide attention among global
satellite and IT players is paid to the
of being fully utilized due to a legal
stranglehold.
launch of the Hanbyol Satellite since
The cost of the satellite was shared
major operators in Japan and Korea
by SKT for 34.66% and MBCO for
joined forces to be a “fast-getter” in the
65.34% of the total cost on the basis of
satellite DMB service.
the number of relay equipment and cov-
Japan completed revision of its
erages. The total cost of buying and
SKT said that the Hanbyol Satellite for
related acts on satellite DMB and was
launching the satellite, along with the
the upcoming digital multimedia broad-
ready to designate its licensed operator.
operation of its ground offices and
casting (DMB) service is ready to be
In this way, Japan provide a nationwide
insurance premiums, stood at 272 billion
“shot-off” a launch pad, after moving
support to the satellite DMB service, as
won, 94.5 billion won of which was
into its launch pad on February 13. The
it regards it as a chance to take a
borne by SKT.
Hanbyol Satellite is the world’s first
second leap into becoming an advanced
satellite of its kind for the use of the
IT nation.
DMB service.
The joint utilization of the satellite is
expected to allow SKT to save at least
In March, Korean lawmakers finally
150 billion won by sharing cost with
The satellite was completed on
passed a revision of the broadcasting
MBCO for insurance, operation, ground
February 12, after two years of con-
act, paving the way to issue its license
offices and satellite maintenance.
struction at the Space Systems/Loral
for an operator of a satellite DMB in
headquarters in Palo Alto, California,
2004.
The satellite DMB service beams its
channels from the satellite to terrestrial
the US started in June, 2002. On
Japan is faster than Korea in issuing
repeaters for relay to mobile phones,
February 13, the satellite was moved to
its license, as in Japan, a preliminary
PDAs and vehicle receivers so that it
its launch pad at Kennedy Space
license for a satellite DMB was already
allows subscribers to enjoy multi-
Center, Florida.
issued in July, 2003.
channel multimedia broadcasting
The satellite is jointly owned by SKT
It is the industry’s hope, therefore,
and Japan’s provider of the DMB
that the nation won’t repeat the mistake
anytime and anywhere.
China Mobile Launches “Coin-Piling” Mobile Game of E3net
coin piling has become one of the
named it ‘coin-piling-2,’ and, in March,
popular mobile games, as the three
provide it to these three mobile
mobile telecom service providers in
providers. Also, the company plans to
Korea posted an accumulated total of
support a service of connecting the
E3net(www.e3net.co.kr) said that
500,000 download hits for the mobile
mobile with the online game through
China Mobile launched E3net’s ‘coin
coin piling game as of February, 2004.
its open beta service at an online
piling’ mobile game on March 1. In
E3net plans to launch a new version
casual board game portal site located
Korea, the company’s mobile-based
of the popular mobile coin-piling game
at http://www.funkyfunky.com
104 _ IT KOREA Journal
NEWS
Industry News
Samsung Electronics Established a System
LSI Research Center in China
Samsung established a research
customization system for its R&D pro-
institute for system LSI in China, as part
jects to fit Chinese market conditions.
of its drive of localizing its system LSI
Samsung targets to increase the
business within China that is emerging
number of its best-selling system LSI
as the global center of the IT industry.
products from two in 2003 to 10 by
The new research institute in China
2006.
will undertake R&D projects for the elec-
Lately, there is a surge in demand for
tronic items that generate a big revenue
the high-density SoC semiconductor, as
stream and are expected to develop: °‚
the IT industry goes digitalized and con-
backdrop, Samsung’s new research
Chinese-bound sytem LSI semicon-
vergent. There is a shift in the semicon-
institute in China is expected to raise
ductor like MCU (Micro Controller Unit);
ductor business field from a simple
Samsung’s profile as a provider of total
°‚ A R&D for system solutions in the
delivery of memory chips towards the
system LSI solutions.
areas of DVD players, VCD, CDP and
production of system solutions.
LCD monitors.
Samsung Electronics plans to gen-
So the system solution technology is
erate at least $400 million in revenues
Samsung Electronics in China plans
emerging as an important factor to
from its system LSI business in China,
to establish a local development
impact the future direction of the semi-
which represents a 30% increase, com-
structure, where it can achieve a local
conductor industry. Against this
pared to the previous year.
Samsung Produces Two-Display, One-Chip Driven LCD Modules
to drive a mobile phone’s inner display
also risen. The share of TFT-LCD
and outer display.
mobile phones is expected to increase
These new modules are compared to
from 31% in 2004 to 45% by the end of
traditional ones that are driven by two IC
2005, as demand for color screen
chips and a backlight. The new modules
mobile phones is on the rise. The TFT-
at Samsung, therefore, are able to be
LCD display for mobile phones is
produced 1mm slimmer and at a lower
expected to reach a 170 million unit
cost, compared to traditional modules.
market in 2004 and 320 million unit
These products improved the quality
of display in both the indoor and outdoor
Samsung Electronics started com-
environment.
market in 2006.
Samsung plans to sell at least 50
million units of 10-inch or smaller TFT-
mercial production in March of ‘two-
Samsung Electronics produces these
display, one-chip driven TFT-LCD
modules in a variety of 1.52, 1.68, 1.8,
modules’. In these modules, one LCD
1.9 and 2.0-inch sizes to meet the trend
Samsung plans to increase the share
Drive IC (or LDI) is used to simultane-
of further segmentation and sophisti-
of smaller TFT-LCD display production
ously drive both inner and outer displays
cation in the mobile phone market.
at its facilities of Line1 and Line2
of a mobile phone.
LCDs for mobile phones or others in
2004.
The display for mobile phones is
located in Kiheung, while facilitating its
These new TFT-LCD modules are
emerging as a mainstream of the TFT-
marketing drive for TFT-LCD display
made up of one IC chip and a backlight
LCD, as the display for LCD-TV has
business.
IT KOREA Journal _ 105
NEWS
Industry News
LG Developed 5G Digital TV Receiver Chipset
LG Electronics developed the 5G
the terrestrial digital TV (VSB:Vestigial
rate of the 5G chipset to be 94%. The
Side Band) and digital cable TV broad-
new 5G receiver chipset has also drasti-
casting (QAM: Quadrature Amplitude
cally improved the reception coverage
Modulation)
into the deeper hard-to-reach areas.
LG Electronics has spent more than
Meanwhile, about 70 percent of 1,600
8 billion won to develop the 5G receiver
or more broadcasters in the U.S. are
chipset with 60 or more R&D members
cable TV broadcasters. Given this fact,
for two years with more than 60 patents
LG’s 5G receiver chipset is expected to
pending in Korea and abroad.
be well received in the US.
In 1997, LG developed the 1G DTV
The LG’s 5G receiver chipset is
receiver chipset for the first time in the
expected to facilitate the spread of
world.
digital TVs in North America in accor-
receiver chip which was designed to
By developing the 5G DTV receiver
dance with the ‘guidelines for mandating
improve the receiver functionality of
chipset, LG firms up its lead in the DTV
DTV digital tuners’ (footnote2)’ of 2002
digital TVs in a move widely seen to
receiver chipset technology area. The
by the US FCC (Federal Communi
boost the spread of the digital TV broad-
receiver chipset serves as the brain for
cations Commission), as well as the
casting viewer base in such countries as
digital TV.
‘regulations on cable-ready digital TV’ of
the US, Korea, Canada, etc., where the
LG adopted its own algorism to
North American DTV standard of ATSC
enhance the receiver functionality for
LG plans to adopt the 5G receiver
was adopted.
the 5G version, while also drastically
chipset for an entire line-up of integrated
The 5G receiver chipset offers a
improving the receiver success rate by
digital TV models and digital settop
drastic function improvement from the
resolving the ‘multiple ghosts,’ which
boxes to be shipped out to the world
4G version with its deeper coverage into
refers to a receiver interference by sky-
market so that LG can achieve its goal
the hard-to-reach urban areas and the
scrapers.
of topping the world’s digital TV receiver
sharper indoor reception, while also
A field test by a domestic TV broad-
adopting one chip solution for receiving
caster has found the receiver success
2003 by the US FCC.
chipset market with 50% of market
share by 2007.
Mobile Compia Opened a “Dream Doctor” Service
Mobile Compia, a specialist for corporate-use PDA, set up a ‘Dream
Doctor’ to provide a virtual controlled after-sales service for
is the basis for the Dream Doctor to
Cho Sung-je, president of Mobile
provide the cyber one-stop customer
Compia, said, “This new service is a
service for its PDA customers, as well
reflection of our commitment to pio-
as corporate mobile consulting and
neering the way for customer satis-
its PDA customers, Mobile Compia
support services. The Dream Doctor
faction, along with the mobile special-
announced on January 15. Dream
allows the company’s PDA users to
ization consulting service that our
Doctor is the first of its kind in the
access the virtual-controlled AS
company offered last year. This year,
domestic PDA market.
service at their offices without having
we will continue to focus on customer
to visit the customer service center.
satisfaction.”
The VCS (Virtual Control System)
106 _ IT KOREA Journal
NEWS
Industry News
LG Electronics Launches Air Purifier Business
tries share a similar lifestyle. In this way,
The HEPA filter, for instance, purifies
the global demand for air purifiers is on
the inner side of itself and thereby,
a rising trend.
resolved the problem of spreading
LG holds a world-class technology for
LG Electronics said on February 26
that it launched an air purifier business.
Driven by a well-being desire to be
germs from the air purifier itself.
germ disinfection and air purification
Also, Klena deployed the Soldat disin-
that placed the company in top spot
fection ion which was jointly developed
within the world’s air conditioner market
with Germany’s ETR. This ion at Klena
for the fourth-consecutive year. LG uses
is released into the air and thereby
a combination of its technology on the
removes molds that would otherwise
cutting edge to develop the ‘LG air
cause allergic troubles and nurture bac-
purifier Klena’ that is run on a revolu-
teria.
tionary new mechanism for disinfecting
A testing by the Korea Consumer
indoor harmful germs or VOCs and for
Science Research Center has found the
purifying air.
Klena air purifier to remove 98.9% of
free from hazardous materials like
LG Electronics plans to go ahead with
large intestine bacteria that is prevalent
indoor VOC or yellow sand, demand for
the world-class technology to launch a
in indoor places, and 99.1% of yellow
air purifiers in Korea is expected to
series of consumer-sensitive products;
staphylococcus.
increase from 400,000 units in 2003 to
to maintain its R&D stream through its
A research team of the bio-industry
500,000 in 2004 and one million in
global R&D network for air purification
and material, led by Professor Sung
2007.
core technologies; and enhance mar-
Baek-Rin at Yonsei University has found
Demand for air purifiers in Japan has
keting and brand image drives at home
the Klena to remove 99% of the TypeA
increased from 970,000 in 2000 to 2.2
and abroad. The new Klena deployed
flu virus. Meanwhile, the Klena deployed
million in 2003, as Japan shares a simi-
the 3-dimensional filter system in a 20-
LG’s original technology ‘nano carbon
larity with Korea in that both countries
phase like the world-patented bio-disin-
ball (NCB) that removes daily life
suffer from yellow sand and both coun-
fection HEPA filter.
smells.
NAKO Interactive Exports Laghaim to Four Southeast Asian Countries
NAKO Interactive(www.laghaim.
Malaysia, the Philippines, Vietnam
com) signed an agreement with
and Singapore. The representative
Malay sia’s online publisher Tera ICT
said, ‘We agreed not to disclose the
to export the ‘laghaim’ online game to
contract terms, but these terms are
four Southeast Asian countries., a
satisfactory.” He added, “The laghaim
representative at NAKO Interactive
game is ready to broaden its popu-
said on February 25.
larity base in Southeast Asia as
Under the agreement, NAKO
laghaim has become popular in
Interactive will export the laghaim
Taiwan, China, Japan, as well as,
online game to four countries -
within Europe.”
� The
laghaim
game
IT KOREA Journal _ 107
NEWS
Industry News
Samsung Electro-Mechanics Developed
‘Wireless AV Module’
video streams indoor than the WLAN
does, while also using the 5GHz frequency to avoid noise interferences with
the 2.4GHz that is used for WLAN and
bedroom, your set-top box is in the
living room and your DVD player is in
your library room.
Bluetooth technology.
Meanwhile, the wireless AV module
was deployed for wireless PDP TV that
Each time you buy a TV or video
was displayed at the ‘2004 CES’ in Las
player or DVD player, or each time you
Vegas, held in January. So the wireless
move to a new house, you will have to
AV module is expected to become a
do chores of connecting these devices
core telecom component for the ‘digital
with lines.
home’ that is attracting the worldwide
Samsung Electro-Mechanics at
The wireless AV module-built TV is
www.sem.samsung.co.kr) said on
designed to set you free from these
Samsung Electro-Mechanics formed
March 3 that it developed the wireless
menial chores of trying to connect all
a R&D taskforce for the wireless AV
AV module (wireless modules for digital
these devices with the different lines.
module in June, 2003, and has since
attention.
video data transmission) that would be
Compared to the 54Mbps WLAN
operated it to take a full advantage of its
able to increase the maximum effective
products using the traditional 802.11a or
tuner-based technology that allows it to
transmission speed up to 35Mbps per
802.11g, the wireless AV module has
design the RF part of the development.
second.
little difference in its maximum trans-
If you load your TV with the wireless
mission speed.
Samsung Electro-Mechanics plans to
put the new AV modules into com-
AV module, you don’t have to make the
The new wireless AV module is up to
mercial production in April, as the
wired connections for antenna cables,
40% faster than the traditional WLAN
company had completed its sample
DVD and set-top boxes with TV that
that can provide up to 25Mbps of
testing and signed a contract with a
would mess up your living room with so
effective transmission speed , as the
world-class home electronic company.
many connection lines. The wireless AV
new wireless AV modulet can support
Also, the company plans to be a “fast-
module-built TV will allow you to have a
up to 35Mbps of speed for transmitting
getter” of the market by developing a
wireless access to high-resolution video
video data.
new AV module in 2004, using the next
data via TV. This means that you can
Samsung Electro-Mechanics said it
generation technology MIMO (Multi
enjoy movie or TV broadcasting pro-
uses a multi-antenna that allows for
Input Multi Output) which enhances
grams even if your TV is in your
more stability in receiving and sending
antenna effectiveness.
KT Deploys 50Mbps VDSL Lines
NAKO Interactive(www.lag haim
Under the agreement, NAKO Inter
factory.” He added, “The laghaim
.com) signed an agreement with
active will export the laghaim online
game is ready to broaden its popu-
Malaysia’s online publisher Tera ICT
game to four countries - Malaysia, the
larity base in Southeast Asia as
to export the ‘laghaim’ online game to
Philippines, Vietnam and Singapore.
laghaim has become popular in
four Southeast Asian countries., a
The representative said, ‘We
representative at NAKO Interactive
agreed not to disclose the contract
said on February 25.
terms, but these terms are satis-
108 _ IT KOREA Journal
Taiwan, China, Japan, as well as,
within Europe.”
NEWS
Industry News
ETRI-led WIPI2.0 Adopted As the KWISF’s Official Standard
members who represents the mobile
telecom industry: three mobile telecom
service providers, three major mobile
phone makers (Samsung, LG and
The home-developed standard for
mobile phones have been on the
Motorola), mobile software developers
wireless Internet platform the WIPI
market. With the confirmation of WIPI
(Korea IBM, Microsoft, Sun, etc), mobile
(Wireless
for
2.0 as the official standard by KWISF, a
CPs (GavaPlus, Anicomm Software,
Interoperability) Version 2.0 was
team of mobile phone vendors,
etc.), TTA, Radio Research Laboratory,
adopted on February 11 as the official
providers and mobile CPs have com-
etc. Kim Heung-nam who leads the
standard of the KWISF by the KWISF’s
bined forces to develop, manufacture
WIPI-developing team at the KWISF’s
operating committee. The WIPI was
and market the WIPI-enabled applica-
embedded software technology center
developed by an ETRI-led team and it
tions and handsets. Therefore, the WIPI
said, “Korea has the world-class infra-
has been put to common use by the
Version 2.0 mobile phones are expected
structure for mobile telecom and
three mobile telecom providers. The aim
to be launched during the latter half of
wireless Internet. This is what makes
of the WIPI is to avoid overlapping
2004. New mobile application services
the vast potential for the wireless
investment by providers and to nurture
such as the phone camera, the LBS, the
Internet content industry.” Kim added:
mobile content providers by enhancing
security telecom, the input & output
“The WIPI 2.0 supports the Java
interoperability across different mobile
standards for PC connection, etc., have
standard language and it is well repre-
contents. The KWISF played a central
been adopted as standards for the WIPI
sentative of domestic and international
role in releasing a series of new WIPI
2.0. Java language J2ME was adopted
mobile players. This year, the WIPI 2.0
versions since 2001. The first com-
as a standard for the WIPI 2.0 in a move
will be able to take off towards
mercial model of the WIPI-loaded
seen to globalize the WIPI.
becoming a de-facto international
Internet
Platform
mobile phone was launched in June,
Behind the rally around the WIPI 2.0
2003. As of March, about 140,000 WIPI
has been the ETRI-led consortium of 60
standard to drive into the world marketplace venues like China”.
Naver to Provide ‘Moblog’
NHN(www.nhncorp.com) said on
March 5 that NHN signed a strategic
agreed to launch a joint marketing cam-
fledged launch of its new moblog
paign for these services.
service during March 15 to April 11,
cooperation with KT to provide the
The users of Nespot Swing mobile
where users will take pictures under the
mobile blog service (‘moblog’) as the
phones will be able to do the mobile-
given four topics and put these pictures
mobile version of the fixed-line blog
based blog management that is almost
onto blogs at websites. A quiz contest
service.
the same as the users of the fixed-line
will also be held about the usage of the
KT and NHN agreed under the
Internet are currently able to, as the
Naver blog using the Nespot Swing.
agreement to provide Naver cafe and
mobile blog is beyond the simple
Also, the launch of a phone-to-web
mobile blog services for the ‘Nespot
placing of pictures or text data onto the
moblog service is slated for mid-
Swing’ mobile phone, which is a combi-
blog at websites via mobile phones.
March?this service allows users to send
nation of the EVDO and the public
Meanwhile, NHN plans to launch a
WLAN service. Both companies also
photo content on the occasion of its full-
text and pictures onto blogs at websites
via a mobile telecom network.
IT KOREA Journal _ 109
NEWS
Industry News
Samsung Developed Chipset for Satellite DMB Phones
to mobile phones, PDAs and vehicle
highest integration for DMB phones,
receivers so that its subscribers riding in
while, also, resolving the problem of
vehicles can view a high-definition
limited battery lifespans by minimizing
broadcasting service.
the electricity consumption for powering
Samsung pioneered the way to local-
DMB phones.
izing key components for satellite DMB
A representative at Samsung Elect
receivers by developing the chipsets
ronics said, “By being the first developer
with its technology that allows the DMB
of the satellite DMB chipsets, we’ve pre-
phones to come out in the slimmest
pared a foothold to lead the way for core
size and in the highest integration.
chipset technology for the next gener-
Samsung Electronics has become the
Samsung applied the SoC (System
ation mobile receivers. The new chipset
world’s first firm to develop chipsets for
on Chip) technology for the satellite
is also expected to advance the com-
the mobile devices of the satellite Digital
DMB chipsets so as to load various
mercialization of the satellite DMB
Mobile Broadcasting (DMB) service.
applications like user authentication and
service.”
The satellite DMB is emerging as the
next-generation broadcasting service,
collection & management of fees into
one chip.
as DMB beams its channels from the
Also, the chipset was designed to
satellite to terrestrial repeaters for relay
ensure the slimmest size and the
Samsung plans to launch its own
chipset-loaded DMB phones in line with
the mobile operator’s timetable to
launch the satellite DMB service.
Lineage II Hit 30,000 Simultaneous Access in One Week
than expected given the fact that the
at Seven Eleven’s online shopping mall.
online game is not a mainstream game
The LineageII Starter Kit has hit the
in the Japan’s game market, and is,
major sales outlets at Japan’s estab-
thus, smaller than that in China or
lished electronics chains Bic Camera
Taiwan.
and Yodobashi Camera since February
Lately, the broadband penetration in
Japan has been increased and the
broadband subscription fee has been
10, 2003.
On February 18, NC Japan had to rush
to add one more server in an
NCsoft’s(www.ncsoft.com) Lineage II
lowered so that the infrastructure for
Emergency move, as its LineageII
hit Japan after it had hit Taiwan. In one
online gamers has improved. Lineage II
was attracting a lot more online players
week after it was launched on February
has become popular among Japanese
than it had expected. Run on seven
11 in Japan, Lineage II was taking
gamers because LineageII is found to
servers, LineageII
Japan’s game business by storm by
show no shortfalls of graphics against
recording 30,000 persons who had
traditional video games, while also pro-
simultaneous access to the online game
viding excellent game performances.
and by attracting 170,000 online playing
members.
The ‘LineageII Starter Kit’ has recor
ded as a best-seller on the software
The response by Japanese gamers to
sales chart for the second consecutive
Lineage II was surprisingly stronger
month since launched in December 15
110 _ IT KOREA Journal
set a record for rapid growth in terms
of the number of its
member gamers, as well as, the
number of simultaneous access by
Japanese gamers among the online
role playing games in Japan.
NEWS
Industry News
SKT Set Up Roaming Centers at Incheon
and Gimpo Airports
Intel to Set Up R&D
Center in Korea
cedures.
SKT said that an average of 2,000
customers visits the SKT center each
The global IT player Intel will
day for the roaming service (based on
establish a R&D center in Korea.
data gained up to February of 2004),
A representative at Intel Korea
plus, the addition of the new roaming
said on March 8 that the
centers will reduce waiting time for cus-
company plans to establish a 20-
tomers.
member research & devel-
Currently, SKT provides a roaming
opment center in Korea. So we
service that allows its subscribers to use
are looking for a place to locate
SKT said on March 3 that it has
their mobile phones and mobile
it.”
installed two roaming centers at the
numbers when they fly overseas to 13
Intel Korea said that the Intel’s
Incheon International Airport’s duty-free
countries (the US, China, Japan,
R&D institute in Korea will focus
shop area and the Gimpo Airport’s
Thailand, Hong Kong, Taiwan, Guam,
on developing an advanced
International Flight building, bringing its
Saipan, Australia, New Zealand,
wireless telecom technology and
total to five roaming centers located at
Canada, Mexico and Peru). SKT also
next-generation platform tech-
three airports in Gimhae, Gimpo and
provides a rental phone service, where
nology for content application.
Incheon.
people rent mobile phones before their
Intel Korea signed a MOU with
Air passengers can receive the
flight to overseas countries: This service
the ETRI on March 8 to jointly
roaming service at the SKT center
is available for its subscribers flying to
develop home-network tech-
located at the airport’s duty-free shop
160 countries.
nology.
areas after undergoing immigration pro-
Webzen Launches Commercial Online ‘Mu’ Game in Japan
Webzen(www.MuOnline.co.kr) plans
improved its image through its online
Japanese gamers were invited to a
to launch a commercial 3D online ‘Mu’
and offline marketing events, as well as,
Webzen-hosted seminar so that they
game service on February 27 in Japan
a series of revisions and server settings
can meet ‘Mu’ developers. A series of
following its successful commercial
to fit the local need of Japanese
offline events has successfully taken
launch of ‘Mu’ in Taiwan and China.
gamers.
place at NetCafes within Japan
In Japan, ‘Mu’ recorded the largest
Webzen has paid attention to local-
accumulated number of 300,000 online
ization of its online game to satisfy the
playing members and the biggest simul-
desire of Japanese gamers. For
taneous access hits among its beta
instance, ‘Tamajjang,’ which has
online services.
become a mascot of luck in Japan, after
In February, 2003, Webzen signed a
it took by storm
Tama River of
publishing agreement with its local
Kanakawa Perfecture, has been suc-
partner Gameon. Webzen has since
cessfully introduced into the Webzen’s
provided a free ‘Mu’ service’ and
online game for Japanese gamers.
� Webzen’s “Mu.”
IT KOREA Journal _ 111