Vision 2008
Transcription
Vision 2008
March 2008 / Vol. 45 www.ittimes.co.kr Korea’s No.1 Information Technology Journal What lies ahead for Korean IT in a new political era? The world goes Cover Story The Future of Display Stereoscopic 3D Presidential Inauguration Special Recommendations Vision 2008 Exclusive Interview Series u-life ezCaretech Are we at war on cyberspace? U.S. $9.00 / KOR. 8,500 03 ISSN 1739-2950 Th C e o (S w ve ee or r Pa ld Sto ge g r s oe y 18 s -2 3 1) D 3rd~6th Floor, Seoul Metropolitan Facilities Management Corporation B/D, 540, Cheonggyecheono, Seongdong-gu, Seoul, Korea (133-050) Government registration No. Seoul-Ra-10914 Tel: (82-2)3459-0664~0665 Fax.:(82-2)515-2719 Vision 2008 Contents March 2008 / Vol. 45 Graphic Design _ Lee Do-won 22 New President 26 Recommendations 16 Editorial Can Korea Cope Without A Technology Ministry? 35 17 Analysis YouTube Still Desperately Seeking Korean Success 18 Cover Story The Future of Display - Stereoscopic 3D The world is not flat. 22 President New President Means New Hope for Korea 26 Presidential Inauguration Recommendations / Local government Incheon to Stand at the Forefront of Economic Resolution 27 Busan to Take a Leap into the Future 28 Presidential Inauguration Recommendations 28 Chin Dae-je - ex MIC minister, KT President 29 Korea Association of Robotics, Chairman of KVBA 30 Medical IT - ezCaretech Digital Industry - Core Logic Telecoms - DTVInteractive Games Industry- Wemade 31 Games Industry- Joymax Software - Adobe Korea UCC-Pandora TV Storage- 3Gen Data Systems Korea 32 Presidential Inauguration Tourism Korea Tourism Organization Wrapping Paper for Korea 34 Presidential Inauguration 1 4 _ March 2008 KOREA IT TIMES Opinion The Great Canal and Technology s Role Overview - Vision 2008 36 Vision 2008 Telecommunications and Broadcasting Digital TV- Making Buses Everywhere More Dangerous 37 Internet Video Chief Hopes for Government Breaks 38 Vision 2008 Online Games Games Industy Fights for Survival 40 Digital Industry Core Logic's "Core" Business Plan 42 Software Adobe - "We'll Enrich the Net" 43 Solutions Global Partnership Starts to Pay Off 44 Storage Solutions 3Gen Data Systems Korea - storage solutions 46 U-life ezCaretech and the Sisyphean Challenge 28 Recommendations 54 Interview The Changing Face Of Korea in Turkey 56 Contribution Time to Go Back to Basics 50 Local Government Busan Metropolitan Government 52 Contribution Is the World at Cyber war? Kim Tae -sub Han Kon- ju Chung Youn-boo Vice President Advisor Vice President Editor-in-Chief Editor Huh Pyung-youn Chang Hong-yul Kim Byung-woo Monica Chung Tim Alper/tim Supplement Director Managing Editor Editorial Director TA HYI CGE IT Industry Editors 58 Exhibition Smaller Businesses Hope to Reap CeBIT Benefits 60 In-depth Report How is IT transforming Korea? 62 Design At Any Cost? 64 SK, KT and LG Telecom play StarCraft II 66 Essay Brave New World Not To Everyone s Liking 68 Spotlight Korean Energy Company Powers Up the Philippines 70 Tourism Blooming Paradise for Sightseeing in Mud Flat, Incheon 72 An Investment Destination Like No Other 74 News in Brief 48 Academia Korea Polytechnic University e-mail: [email protected] Chairman & Publisher Executive Advisor President-Publisher 75 Real-Time News Asiana to use RFID in Baggage Handling 76 Korean language hits the Louvre 77 Young Artists Given Room to Exhibit in Seoul Hotel 78 How to ... Shop Online Safely Kim Joo-hyung Yeo Hong-il Chun Go-eun/toclair Lee Kyong-hwan Lee Chung-moo Jeon Kyung-sook Koo Won-hum Staff Reporters KHS KEJ Freelance Reporters KKW Photographer Advertising Manager Art Director Designers Internet Manager Ki Hee-sung/hskih Kim Eun-jeong/aceellie Yeon Choul-woong Lee Kyung-min Ko Ki-wan Cho Eun-jung Kim Eun-sil Dondu Sarisiik Matthew Weigand Shin Sung-won Jude Kim Lee Do-won Cho Hee-sang Bok Dong-kyu Business Manager Circulation Manager Administration Manager Sales & Marketing Manager Publication Team Manager Kim Chang-ho Park Mi-jung Kim Si-hwan Yoon Jong-jin Ko Yeon-sang Financial Auditor Financial Secretory Choi Eun-kyung Cho Hye-kyung Correspondents N.America Europe Southeast Asia Far East China Oceania SW Asia M.East James Joo young-hoon Choi Young-zun. Lee Sung-ki Lee Jin-bok Kim Moon-soo Chun Jong-sung You In-kyung Choi Duk-hee Chung Jung-ja Overseas Sales/Distribution Agents ( Reference: www.ittimes.co.kr) Korea IT Times Guide Published by KDC Times Co of the KDC Group 3rd~6th Floor, Seoul Metropolitan Facilities Management Corporation B/D, 540, Cheonggyecheono, Seongdong-gu, Seoul, Korea (133-050) Tel: (82-2)3459-0664//0621/0678/0671 Http://www.ittimes.co.kr E-mail: [email protected] Under the pertinent registration No. RA-09536 on Oct.2, 2003 Advertising Te l: (82-2)3459-0664 Fax: (82-2)515-2719 Subscription & Circulation Tel : ( 82-2)3459-0678/0614 Subscription Rate by Air Mail Newsstand in South Korea: US$ 9.00(8.500 won)per copy Within South Korea: US$97.00(102,000won)per year(12 issues) Asia: US$131.80 per year(12 issue) N.America, Europe and Middle East : US$199.80 per year(12 issues) Africa, Central and South America and South Pacific: US$264.60 per year(12 issues) Editorial Can Korea Cope Without A Technology Ministry? T he 600 year-old Namdaemun Gate in Seoul burned to the ground last month, with only a few days to go before President Lee Myung-bak took office. Experts hope that this is not a bad omen for the incoming Korean executive. At the same time, the powers that be, or used to be, are issuing warnings to the new administration. Minister of Science and Technology Kim Woo-sik is in a precocious situation. The Ministry he governs over is about to be effectively disbanded by the Lee administration, who will divide the work done by the old bureau between three different ministries. Indeed, Kim has been in the news, making headlines by imploring Lee not to undo all the good work of the Ministry. He said, "Korean economic growth cannot be separated from science and technology development." And he may have a point. Science and Technology duties will now be performed by ministers and civil servants running the education, finance and industry ministries. But with Lee s "747" plan in action, there are many who fear that the finance and industry ministries may have their hands full with other matters in the near future. According to the 747 action plan, the new government will ensure 7% growth, a GDP growth of $40,000 per capita and make the country the World s seventh largest economy. All of this sounds very nice, but with Korea s economy a mainly export-driven one, the Industry Ministry will be an especially busy place in the very near future. All this business about GDP and growth per capita sounds like numbers to me, so that will be dealt with by the finance people, who are usually far too busy to spend much time with things like developing better semiconductors and things like that. Which leaves us with the Education Ministry. Lee Myungbak has reiterated his desire to overhaul the Korean education system, and introduce lessons in English, as well as try to get more ethnic Koreans living abroad to come to Korea to teach. That does not fit in too well with 1 6 _ March 2008 KOREA IT TIMES regulations requiring all foreign teachers to go through complex police and health checks before being granted teaching visas, which may also end up causing the education ministry extra paperwork. So if the education people are too busy with their affairs, what happens to poor little Science and Technology? The answer is key to the future of the Korean economy. Lee was elected on the promise of boosting the coffers of Korea, and on the basis of his extensive business experience with Hyundai. The unique difference between Korea and its IT competitors was the existence of a specialised ministry which dealt with electronic matters. Other countries find even the idea of having a national IT policy almost impossible to imagine. Indeed, perhaps Lee will allow IT companies to find their own way on the free market, as is done in most countries. Samsung and LG do not the government to hold their hands, they are perfectly capable of finding their own way. Analysis YouTube Still Desperately Seeking Korean Success The battle for the eyes and ears of UCC users still rages as Korean companies fight to keep hold of their own markets. E ver since Google began on its quest to take over the digital world, it has been met by an infuriating pocket of resistance in South Korea. It must seem to them an obstinate little country, not unlike the village the Roman Empire could not conquer in the Asterix comics familiar to Europeans. Wondergirls , the teen pop favourites, Google was hoping to gain some popular support for its video services. When it comes to all things IT, it is well-documented that Korea likes to be different. We don t use Windows Media Player to watch videos, we use Gom player, we don t like MSN Messenger, Nate On is much better. And most importantly, when it comes to search engines, Naver trumps Google any day of the week. Google must be asking themselves just where they are going wrong. Is there some big Korean secret to success they are not being let in on? In terms of the global stage, Naver s presence in Korea is almost impossible to understand. With superior technology, research and development, Google has blown much bigger fish than Naver out of the water before. Lycos, Altavista, Webcrawler, these have all fallen by the wayside as Google continues to expand, at the expense of the rest. But of course the smaller IT enterprises do need extensive government support if they are to succeed where other countries smaller IT enterprises might fail. But however hard they try, Naver is still the search engine of choice for almost every Korean alive. With the three ministries all clearly with other fish to fry, will a boost in personnel and budget for them really be enough to give them the boost they need in the cut-throat world IT market? Yet Google s latest plaything, YouTube.com, the world s biggest online User Created Content (UCC) site, is one arm of the American company Google are determined must succeed in Korea. Surely, President Lee will not let the country s most significant export, IT, flounder at the expense of a little bureaucratic shake-up. Time and money have been poured into Reasearch and Development as YouTube executives desperately try to make headway into the elusive Korean market. That said, Korean businesses could do with a little clarification as to just how those already busy ministries are going to handle the Korean IT industry now the Ministry of Science and Technology has been consigned to Korea s political Recycle Bin. Technology must not become the next Namdaemun, another Korean tragedy of this size simply must be avoided. At present, sites like Panadora TV, Mncast and Gom TV rule the Korean market, and local users post and view digital content on these sites, rather than bothering with whatever YouTube has to offer. So YouTube has just released a Korean version amid much pomp, ceremony and marketing. With celebrities on board YouTube Korea like Park Jin-young, founder of However, the simple truth is that these smaller Korean companies have no special magic potions, they are just smaller, more adaptable, and designed especially to cope with the Korean market. They are not looking to export their products to far-flung lands. They just want to be number one in Korea. It is a humble aim, but one which allows them more focus than their bloated American competition. Jason Hahn, reporter at Ohmynews International, puts it like this, Not only was Pandora TV born and groomed in Korea, but it also has a better approach to the subtleties of Korean culture. Examples of this may be as small as design differences, or may be as big as particular language barriers, but they are definitely there. Hahn adds that this is not the first time Google has run into difficulties because of strong domestic competitors. Baidu, the dominant search engine in China, is a prime example. Google has not been able to make much of a dent in Baidu's armour either. Hahn is optimistic about Google s chances in the long run, though. He says, I think YouTube has a chance of success in Korea, although any progress in the market will take time, because it is not the first of its kind in the market. Korea is a logical hotbed for the online video and UCC craze. TA KOREA IT TIMES March 2008 _ 1 7 Cover Story 3D Display glasses, with the development of digital technologies and the emergence of high-definition display. The Future of Display Stereoscopic 3D The world is not flat. Would music lovers accustomed to stereo ever go back to mono? 3D video users will never go back to a flat world either. The world will never be flat again. ext-generation display technology follows image technologies, going from black and white, through color, to HD level. It projects superior pictures, by giving the images depth, projected in front of the screen, in a way that works almost identical to normal human sight. N One of the biggest upsets in U.S. film history happened in early February. A stereoscopic 3D concert film of teenage American singers Hannah Montana and Miley Cyrus tour, entitled, Hannah Montana and Miley Cyrus: Best of Both Worlds Concert was ranked first in the U.S. box office earnings on its first week of showing. The reason why this film made so many headlines was that it was a stereoscopic 3D film, and made a remarkable box office record, with earnings of as much as 31 million dollars at 683 screens nationwide. The Eye, ranked second during the same week, recorded unexpectedly poor sales of more than 12 million dollars at 2,436 screens nationwide. In this regard, the box-office profits of 1 8 _ March 2008 KOREA IT TIMES the film Hannah Montana and Miley Cyrus: Best of Both Worlds Concert also achieved astonishing results. Beowulf 3D , released last year in Korea, has achieved a similarly record-breaking status. The film, directed by Robert Zemeckis, the director of the hit films such as Polar Express and Back to the Future succeeded in drawing in as many as 0.9 million viewers in Korea. A survey showed that among them, 130,000 people, 15 percent of the total number of cinema audiences, viewed the 3D film. Considering that the total number of first-run theaters for the film Beowulf , including 3D screen theaters, was no more than 370. It showed that 3D films are getting more and more popular here. In addition, all theater and film stakeholders were encouraged by the additional growth in admission charges, as 3D screens more than doubled their profits. Recently, many experts have begun a discussion on how to improve display culture, the next generation display that follows the image technologies, such as black and white, color, and now high-definition. We now live in an era when media is undergoing rapid changes - from listening-based to watching-based media, and to a sensitive media that even carries customer satisfaction. Undergoing evolution of imaging and advanced technologies, human eyes are no longer satisfied with flat images. It seems that as of now, we need to pay due attention to stereoscopic 3D image. A stereoscopic 3D image is a technology of presenting an image based on binocular disparity, and giving the images depth, and projected in front of the screen, most similar to natural human sight. The scientist and painter Leonardo da Vinci discovered that the two human eyes can have a sense of depth by receiving different sight information respectively. Since then, there have been many new developments in this field, over a long period of time. We can also enjoy stereoscopic 3D images without the need for special Monkeys do not fall from the branches of a tree, even though they move freely in the tree. That is because they have a clear awareness of the distance due to front-oriented eye sight. Species with a side-oriented eye sight, such as birds, have no ability to recognize 3D. 3D films are set to dominate the landscape of the film industry. Some world-renown directors, such as Steven Spielberg, are planning to produce 3D films and release them soon. Stereoscopic 3D digital cinema will pass the 20,000 mark worldwide within three years. It seems that the trade winds blowing 3D film on are strong, as 3D returns to make a mark in the world of modern movies. Mike Campbell, Co-Chief Executive Officer of the Regal Entertainment Group and CEO of its theatre operations, emphasized his ideas at an academic conference,. He said, 3D films will lay a firm foundation for the promotion of the whole new film industry, based on the boxoffice records of the 3D films released so far. As a matter of fact, the number of 3D cinemas in the United States has increased rapidly from 100 in 2006 to 700 now. It is also expected to grow more than 6,000 in the next three years. Korea is in a similar situation. Stereoscopic 3D digital theater systems were introduced to the theaters for the first time in late 2006. Now experts say that the number of system will amount to as many as 400 screens in three years. At present, there are 36 screens. released in 2009, as a start for the new venture. Film producers, distributors, theaters, and audiences have demonstrated an enormous satisfaction with the results of 3D film technology. How can a 3D film be such a huge success and also change the landscape for the film industry? Why is 3D expanding so fast? From the perspectives of producers, theaters, and audiences, what producers want first and foremost is to realize the differentiated images and boost profits. The art of mak3D Film promotional material at Hong Kong International Airport ing movies is also progressing everyday. However, 3D images which present the same image as The Four 3D films, including natural human sight is a magical Nightmare Before Christmas and method by which producers can creChicken Little , presented by Walt ate an idealistic image, which is much Disney Pictures, have already been more than what they dreamed of. 3D released worldwide. Last year, the 3D films can be relatively easily protected blockbuster Beowulf , directed by from piracy - a major problemfor Robert Zemeckis, premiered on 800 Hollywood film makers. In addition, it screens around the world. can raise high profits, by investing a minimum of additional production In addition, famous directors in costs. Hollywood such as Peter Jackson, and James Cameron are now produc3D films can bring more benefits to ing 3D new films, which will be on theaters. Recently, theaters have release in 2008 or 2009. The biggest seen their market share pinched due blockbusters of the past , such as Star to the development of home entertainWars, Aliens, King Kong, ment. In response, they are expected Transformers, and Terminator , are to devise new methods to attract more also set to be remade into 3D films for customers, different from home immanent re-release. HDTV. 3D film is the answer that theaters are looking for. In addition, Jeffrey Katzenberg, chief executive of admission fees, which are at maxiDreamWorks Animation, announced mum 50% more expensive than 2-D recently that all his films will be profilms, is making huge contributions to duced based on 3D technology. He boosting box office revenues. announced of a new 3D film, Monsters vs. Aliens be KOREA IT TIMES March 2008 _ 1 9 sales, with a view to maximizing synergy effects. The two companies KDC and masterImage succeeded in developing a stereoscopic 3D digital theater system for the second time in the world in 2006, which shook the world s film industry. In the meantime, Real D, which was the first American developer of the 3D digital theater system, monopolized the world s market. A panoramic view of Telson, a subsidiary of the KDC Group, which is a producer of the stereoscopic 3D digital theater system. Customers will be deeply moved by films, more than ever, due to a whole new image on the screen, a kind that they have never seen before. In this regard, 3D films in various sectors will be on the increase, driven by interest and necessity. New production methods and image processing technologies will encourage the emergence of a new huge market, which will serve to create a new image culture in our times. The KDC Group and masterImage are among the world s leading 3D image technology groups, and are in pole postion when it comes to all things 3D. Korea s research on 3D image-based technologies was initiated with the participation of such a state-owned research institute as the Electronics and Telecommunications Research Institute (ETRI) in 2002. Leading companies in the private sector are KDC Corp. and masterImage. 2 0 _ March 2008 KOREA IT TIMES Founded in 1972, this year marks the 36th anniversary of its establishment as Korea s leading IT company. KDC has four subsidiaries, listed on Kosdaq in 1996. The overall sales of the KDC Corp, an IT enterprise of middle standing, amounted to more than $1.1 hundred million, employing a staff of 800 people. KDC has decided to put priority on the next-generation display business as a new growth engine in 2004, and has joined forces to make inroads to the display market in close collaboration with masterImage, a professional 3D enterprise. Launched with the participation of influential engineers in the 3D sector, masterImage has secured core technology with regard to stereoscopic 3D images. Currently, KDC Corp. is the biggest shareholder of masterImage. KDC and masterImage joined hands to lay a firm foundation in the following fields , product development, production, and The stereoscopic 3D digital theater system co-developed by KDC and masterImage has been already offered to the following Asian countries - Hong Kong, Taiwan, the Philipines and also Korea. Recently, it has been also installed to in the Cinemark cinema in Oregon. In addition, the system enabled customers to enjoy the following films - The Nightmare Before Christmas 3D; Meet the Robinsons 3D; Beowulf 3D; and Hannah Montana and Miley Cyrus: Best of Both Worlds Concert 3D. Some of them are still showing. Stereoscopic 3D digital theater system Additionally, KDC and masterImage signed a partnership deal with Kinoton, a leading provider of the digital cinema equipment and services in Europe, greatly contributing to making inroads into the European market in the nearest future. KDC and masterImage are also negotiating terms and conditions with cinema business people in more than 20 countries, such as China, India, Thailand, and Malaysia. The conformity of the product has largely improved, based on the use of single projectors, and a single circular polarized rotary filter. The product makes it possible to present stereographic 3D image comfortably. In fact, this technology has many advantages over other products, in terms of excellent level of brightness. It is easy to install, and can be provided at a relatively reasonable price compared to other products. Recently, both companies have released new Full HD beam splitter cameras for the cinema production to be used in the film and broadcasting sectors for the first time in Korea. In the meantime, the previous stereoscopic 3D digital cameras had to be arranged horizontally, which means that two cameras were installed parallel with each other. Therefore, the digital theater cameras previously used in the broadcasting and film industries could not adjust the distance between two cameras freely, the cameras just presented image in qualities below the professional level, such as for people making short films or for domestic use. However, the Full HD beam splitter camera for cinema production developed by the two companies this time was designed based on beam splitter method,vertically for one camera and dimensional effects of the image makes viewers feel excited, as if they were in the film. It can make people feel as if their chairs were rocking, the wind was blowing, and water splashing. We now live in an era going from watching images to watching and feeling images. Many display experts expect that 3D digital industries will continue to take quantum leaps of this sort with the passing of every year. View of Full HD beam splitter cameras for cinema production by KDC and masterImage - the beam splitter method of using a camera and a unified 3D monitor. horizontally for the other. Thus, digital theater cameras which are designed for broadcasting and film-making are available. In addition, close-shot and artificial control of three-dimensional effects can enable the free realization of 3D images, which will eradicate the root cause of dizziness. Stereoscopic 3D monitors are arranged in one system, which will enable people to check the dimensional images in realtime while photographing. We live in an era of sensitive media that carries customer satisfaction, shifting from the simple role of media. Undergoing such innovative evolution, our eyes will no longer be satisfied with the plain and ordinary 2D image. KHS The company released a 3D kiosk product, which can enable people to enjoy high-definition stereoscopic 3D images by installing camera lobbies, shopping malls, and amusement parks. The product will present movie trailers of 3D films in advance, after being installed in a cinema s box office. Equipped with a coin and bill payment function, it is also expected to raise additional revenue. The Future of the 3D digital image A 3D film screened for visitors on a tour of America’s Universal Studios presents hands-on experiences. The 3D Kiosk KOREA IT TIMES March 2008 _ 2 1 President Inauguration New President President and and his his New Scarlet Philosophy Philosophy Means Means Scarlet New Hope Hope for for Korea Korea New Lee Myung-bak won a landslide victory in elections last year, and he has now taken up the reins of power. Chun Go-eun takes a closer look at Korea's new man in charge. A new dawn has risen with President Lee Myung-bak. Not only is President Lee known for his optimism and firmness, similar to the character Scarlet, in Gone with the Wind, he is also the man who changed poverty into hope. The election campaign was a modern American Civil War between the ruling party and minority parties. The fierce presidential nomination process of the Grand National Party and many scandals have rocked popular faith in him. During the two years leading up to his election victory, Lee was subjected to brutal and personal attacks from the ruling party. In the course of the negative offensive, Lee's personal life was laid completely bare. Determination He persevered through the many ordeals patiently with a strong belief on the positive outcome, and finally the people gave him a stamp of approval. In the presidential election on December 19, 2007, Lee garnered 48.7 percent of the total ballets, approaching one half of total votes cast. He won 22.5 percent more votes than his closest competitor, Chung Dong-young of the United New Democratic Party associated with the incumbent administration. President Lee Myung-bak was inaugurated as the 17th President of the Republic of Korea on February 25, 2008. And his other barefoot journey with his friend, hope, begins with him donating his assets to the state. Here is a summary of a biography of President Lee Myungbak according to notes on the Blue House website: President Lee Myung-bak was born on December 19, 1941 to a poor cattle farm laborer. He had to start working to help support his destitute family when he was still in elementary school. He continued to work his way through high school by selling such things as rice snacks, fruit, fish and clothes from street stalls. By doing so, he was finally able to finish night classes at Dongji Commercial High School in Pohang, a port city in south-eatern Korea. In recalling the past, he said, "The chronic poverty that haunted my large family never disappeared until after I was in my 20s." Even though he put himself through Korea University by working as a street cleaner, he never let go of hope. Lee Myung-bak(left) with outgoing President Roh Moo-hyun at the new President’s inauguration in February able accomplishments. His devotion rewarded him and gave him rapid promotion to the position of director within five years and then CEO of Hyundai Engineering and Construction after only 12 years. At that time, he was 35 years old. While working in the Hyundai Group, he developed a cosmopolitan mindset as a leading CEO in Korea through establishing a human network with international dignitaries, including Prime Minister Lee Kuan Yew of Singapore, Prime Minister Mahathir bin Mohamad of Malaysia, President Jiang Zemin of China and President Mikhail Gorbachev of the Soviet Union. He also crossed the world to build various magnificent structures, including the Penang Bridge in Malaysia and a thermal power plant in Iraq. Lee Myung-bak has long been the talisman of salaried workers, in particular. Lee Myung-bak took up politics in 1992 as a proportional representative of the New Korea Party in the 14th National Asseembly after wrapping up a 27-year career with the Hyundai Group. In 1996, he was elected to the National Assembly defeating outgoing President Roh Moo-hyun in the Jongno district in Seoul. Subsequently, he declared his candidacy for the election of Seoul Mayor in 2002. Despite strong oppression from the ruling party of that time and low approval ratings in the early surveys, he won the election. The challenging spirit of Lee Myung-bak as a politician began to attract keen attention from the public. After the election, he vowed, "I will give Seoul a complete makeover." Honoring his pledge, he began to implement his plans one by one. A New Seoul The Business World After graduating from university, he joined Hyundai Engineering and Construction and pulled off some remark- 2 2 _ March 2008 KOREA IT TIMES The first makeover was Cheonggyecheon stream. Cheonggyecheon, a stream that runs through Seoul meant nothing but sewage-smelling water, a road and an over- KOREA IT TIMES March 2008 _ 2 3 Such remarkable changes in the City of Seoul and Lee's leadership caught the eye of international media, including The Times, Businessweek and Financial Times. The restored Cheonggyecheon stream was chosen as the "Best Product of the Year" by Samsung Economic Research Institute. It was also selected as the best construction project at the Venice Bienn-ale. President Lee hopes to build new economic prosperity in Korea pass covering the stream. Critics argued that restoring the stream would cause traffic congestion and an environmental disaster as well as disruption to adjacent business districts. The overhaul of the public transportation system was met with a similar response. However, the successful completion of the project astonished many people. A City to Export? During his tenure, the Seoul Metropolitan Government became the first public institution to export public policies to other countries. The urban waterway restoration project is particularly significant in that it was completed after persuading sho-pkeepers in the affected areas that had previously rejected the project. It has now become a global role model in urban development. At that time, Mayor Lee and city officials involved in the project met with shopkeepers as many as 4,200 times. Some of them even threatened to burn Seoul City Hall down. However, it is very moving that these small business owners later gave Lee Myung-bak the strongest support during his presidential election campaign. Mayor Lee's leadership helped transform the landscape of Seoul. Walkways have been built or are planned around historic structures in the vicinity of Jongno, including Gwanghwamun Gate and Cheonggyecheon Stream, allowing citizens to stroll around freely. The area in front of City Hall, once occupied by nothing but cars, has been turned into a green plaza for Seoulites. Color-coded buses now steer clear of traffic jams and run more quickly in the central bus-only lanes. A grandiose apartment construction project had been planned on a lot of 1.25 million square meters on Ttukseom Island. Instead, a spacious ecological park, Seoul Forest, was created in its place. 2 4 _ March 2008 KOREA IT TIMES In October 2007, Time magazine chose Lee Myung-bak as the TIME Hero of the Environment for that year. By that time, Lee had become an international celebrity, and the reputation of Seoul followed suit. The man-made stream, of course, has become one of the most famous tourist attractions in the city. A New President The 17th presidential election is significant for Koreans because this year marks the 60th anniversary of the founding of the Republic of Korea. President Lee Myung-bak said at his inaguration speech, "We fought for and regained the land that had been taken from us and established our nation. Our forefathers who gave their lives for the sake of our independence, our men and women in uniform who were martyred on the battle field, our farmers who toiled for a good harvest come rain or shine, our laborers and workers who worked late into the night in factories, and those who sacrificed their youth to fight for democracy, these are the stories of greatness that bring tears. "That is how one of the poorest countries in the world has come to bid for its place among the 10 largest economies in the world. A country that lived by the mercy of others is now able to give to others in need and stand shoulder to shoulder with the most advanced countries. "Some say this is a miracle. Others say this is a legend. But we know what it truly is. This is not a miracle but the shining crystallization of our blood, sweat and tears." President Lee pledged to bring peace to Korea, invigorate the economy, enliven our culture, advance our science and technology, strengthen security, and carry out the duties to the international community. It is hoped that a new age of pragmatism will start with newly elected President Lee Myung-bak. CGE Three Thorny IT Issues for Lee How the new President tackles key issues will determine his success in technology policy. The Korean IT industry grew up dramatically, just as President Lee Myung-bak did. Lee was born to a starving family and had to struggle for food in a war-torn country. But he became President. Korean IT industry has a similar background. In the early 1990s, Korea was regarded as a rugged country where it was hard for any kind of technology-based industry to take root. But the IT industry saw the commercialization of CDMA, DMB and WiBro, the World's first services of their kind. Problem One: The MIC Fallout First, Lee's administration should take care of the aftermath has come following the dismantling of the MIC, the Ministry of Information and Communication. The MIC has long taken charge of making laws and policies to boost IT industries. The state-run organization was behind the curtain of the podium that features the miracle of Korean IT success. It is ironical that Lee shut down and tore the MIC into three parts that went to three ministries and committees including the newlyborn Committee of Broadcasting and Communication. In the market, the dismantling was interpreted as a sign that the government would not put its energy on the enhancement of IT industries. In Korea, the shut-down of an organization tends mean it is to be understood it has been officially neglected. The doubt is that President Lee can fill the vacancy created by the dismantling, with a can-do spirit. As is well known, President Lee was the CEO of Hyundai Construction Corporation. That means Lee is not well armed with an IT-minded philosophy. Critics pinpointed that he killed the MIC because he did not recognize the importance of IT from his business background. If priority is put on traditional businesses like construction and heavy industry, Korean IT may suffer a long period of recess both in demand and supply. How to operate the Committee of Broadcasting and Communication will be critical for the future of IT since the Committee has power to boost IPTV, or Internet Protocol TV, which is next on the horizon. Business circles evaluate that IPTV will create a new market for content providers, network suppliers, and equipment manufacturers. When IPTV starts, subscribers can enjoy watching TV and using the Internet on one monitor through Internet Protocol networks. People can open their e-mails and Now the question is this: Can President Lee find ways to boost IT industry still trapped in the darkest tunnel in the cycle of economy. Experts have warned that if Korean IT could not make a breakthrough to get over the saturated IT markets, hardware or software, the future might be gloomy. In order to weather the storm, President Lee needs to tackle the following three problems. KKW ([email protected]) chat with friends as well as watching TV on the divided screen. KT and SK Telecom, two lions in wire and wireless broadband service provider markets in Korea, have long cherished for the introduction of IPTV. If Lee's government pushes for it, the IPTV industry will blossom soon. Problem Two: Price Cuts for Subscribers? Secondly, for Lee's administration, how to deal with a high pressure from subscribers who want the telecommunication fee to be down is critical. President Lee, during his presidential campaign, took it into consideration that his government will take policy to lower the subscription fee. Currently more than 40,000,000 subscribers have raised their voices to force service providers to cut their fees. This will bring forth a balloon effect. As you press down the side of balloon, the opposite side inflates more, the voices can affect the revenue sheet of telecommunication providers, like SK Telecom, KTF, LG Telecom. Problem Three: How to take on Nokia? Lastly, mobile phone manufactures - like LG and Samsung - should be supported so they can realistically compete with Nokia. For the last few decades, it has been difficult for the phone manufacturers to compete with Nokia, the leading mobile phone manufacturer in the world. More government backing could give domestic phones an edge. The IT industry expects to see the IT policy direction turning from cloudy to sunny with the arrival of Korea's new president. KOREA IT TIMES March 2008 _ 2 5 Presidential Inauguration Recommendations / Local government Incheon to Stand at the Forefront of Economic Resolution Busan to Take a Leap into the Future As Lee Myung-bak takes power, Hur Nam-sik, Mayor of Busan Metropolitan Government, calls for new powers for local government. Ahn Sang-soo, Mayor of the Metropolitan City of Incheon, calls upon the new government to take bold steps towards deregulation and adopt a pan-governmental approach. E ven though Korea overcame the 1997 financial crisis, many people still lead a poor life in a devastating economic situation. Young people find it difficult to seek a job, and workers are always concerned about Saojeong, or early retirement. We call upon the new government to pay more attention to resolving such deteriorating economic problems than anything else. Incheon stands at the forefront of overcoming the country s economic difficulties. @@@?hg @@@?hg @@@?hg ?W5?hg @0Y?hg Incheon was designated as the free economic zone in August 2003, for the first time in Korean history, with a view to creating a new growth engine for the nation in the 21st century. Incheon has designated the areas surrounding the Incheon International Airport as a free trade zone, and strives to establish infrastructures and conduct projects to attract foreign capital for investment. However, it has never received any appropriate government aid, as it failed to stand above the political fray of regulations and balanced local development. We sincerely hope that the Incheon economic free area project will trun out to be a new growth engine which can make a huge economic success at an average rate of almost 7% per year, with a per capita GDP of over 40,000 dollars. The project is expected to serve as a launch pad to promote 2 6 _ March 2008 KOREA IT TIMES economic cooperation in Northeast Asia, also contributing to the gradual opening of the North. It is our earnest hope that new President Lee Myung-bak will do his utmost to take bold steps regarding the deregulation by adopting a pan-governmental approach, needed to successfully bolster the development of Incheon s economic free zone. I would first like to express my appreciation to the Korea IT Times for this valuable opportunity to write some recommendations for the incoming government of this prestigious section. @@@?hg @@@?hg @@@?hg ?W5?hg @0Y?hg In addition, Incheon is currently concentrating all its capabilities on hosting the World City Expo 2009 Incheon, and the 2014 Asian Games successfully, the world s biggest events. @@@?hg @@@?hg @@@?hg ?W5?hg @0Y?hg It is thought that these two events will bring Korea enormous economic spin-off effects of more than trillions of won employment creation and luring foreign tourists. In particular, the World City Expo 2009 Incheon is a festivity focusing on each cities own capabilities and characteristics under the theme of City for the first time in the world s history. @@@?hg @@@?hg @@@?hg ?W5?hg @0Y?hg ?W.?W2@? ?7U?7Ye ?@1?@@@? ?@@?@@@? ?@@?@@@? ?@@@?@@?hf ?@@@?@@?hf ?@@@?3@?hf W5?S5?hf ?@0Y?.Y?hf @@@?hg @@@?hg @@@?hg ?W5?hg @0Y?hg The festival will provide a window of opportunity for cities to carry out their marketing strategies with the participation of 200 cities worldwide. In addition, the 2014 Asian Games, a world-renown festival for almost two billion Asians, is expected to create huge economic spin-off effects amounting to as much as 16.3 trillion won. In this regard, we urge new President Lee to provide us with governmental assistance for the successful promotion of ([email protected]) the two events. It is my great pleasure to address a whole array of readers from different countries, including Korea. I wish all of you and your families the very best in the years ahead. This year marks the 60th anniversary of the founding of the Republic of Korea. With the inauguration of the new government, I certainly believe that this year will serve as an opportunity for us all to take a giant step into the future. We, the Busan Metropolitan Government, will put the highest priority on the successful promotion of "Ten Visions for the Development of Busan," which is a new challenge and a hope for the future. We also believe that this year will be a milestone in bolstering the local economy in Busan. To this end, we will strive to make impending local issues incorporated into national tasks and implement them in a constructive and sound manner, in close collaboration with the new government. We are committed to strengthening the national competitiveness and laying a firm foundation to take Busan's development into reality. Against this backdrop, we have spared no efforts to help the incoming government's policies deal with Busan's impending projects. As a result, most of the "Ten Vision Projects" needed to restore Busan's economy - such as the construction of Gangseo high-tech canal and logistics-oriented industrial city closely related to the Korean Peninsula Grand Canal project; the redevelopment of the North Port and the promotion of hub ports; the construction of perimeter high-speed beltway these were successfully incorporated into the public pledges of the new government. The President promised to secure the promotion of decentralization and the independent operation of municipal finance. He also provided the following public pledges - an expansion of local finance by increasing the tax rate of local grants and improving the subsidy system; active investments in local industries; and re-organization projects of old downtown areas near transportation stations - expressing his high expectations for local development. In this regard, we sincerely call upon the new government to provide budgetary assistances to the promotion of large-scaled projects such as the construction of Gangseo industrial city, as well as legal and institutional assistances in an active manner, with a strong emphasis on the successful implementation of the impending local projects needed for the realization of Busan's bright future. In addition, we want to underline the importance of establishing a binding and sustainable cooperation system, going beyond the boundary of the simple consensus, with the view to successfully implementing the new government's "Creative Metropolitan Development" strategies. We also call on the central government to do its utmost to bring about some regulations on the following matters - such as special accounting for metropolitan economic blocs; comprehensive subsidies; and independent local branches for metropolitan blocs, by legislating a special act on the development of metropolitan economic blocs including the facilitation of local cooperation. ([email protected]) KOREA IT TIMES March 2008 _ 2 7 Presidential Inauguration Recommendations Chin Dae-je, Former Minister Information and Communication of We need a national Chief Information Officer. The government is in the progress of downsizing its government organization from the existing eighteen ministries and four sub-ministries to fifteen ministries and two sub-ministries. A smaller government might be able to make a strong government as is the new government's assertion, but critic's restless voices against the idea should also be put into a consideration. nence of this position has risen greatly as information technology has become a more important part of business. By creating this job title to formulate an enterprises' strategic goals and support its ultimate goals, the employees will be encouraged to stay on track. A national Chief Information Officer who has ultimate authority is definitely needed to pacify the interminable conflicts between information technology organizations and businesses. The efforts of the Ministry of Commerce, Industry and Energy to invest money directly into digital TV from the IT839 strategy is completely different from their basic purpose. There is a limit to the Knowledge Economy Committee's efforts for IT development. We welcome the new government, one with a strong economic philosophy, one which has stressed the need for a warm market economy. I, as a member of the IT industry, sincerely expect a big change in terms of an easing of regulations, the promotion of investments, and more consolidation for new industries in this new era, heralded by the new government. It is imperative for the economy to pioneer Korean sustainable developing resources and develop them in a coherent, strategic plan. Especially, we should focus on the globally developed industries and competitive industry alike. High-value fields, such as digital contents 2 8 _ March 2008 KOREA IT TIMES I would first like to extend my heartfelt congratulations for the inauguration of President Lee Myung-bak, who was considered one of the best chief executive officers in Korea's history. We are also deeply satisfied with his idea that the industrial development is one of the critical success factors to promote the national development. Entrepreneurs should stand at the forefront of leading the industry to a greater prosperity, with a sense of responsibility in both nation and people. President Lee underlined the importance of pragmatism. Against this backdrop, we also think that it is of great importance to achieve the goal of commercializing technologies into products. Here the role of a CIO who works as the head of the information technology department within an organization can help a lot. The promi- Nam Joong-soo, CEO of KT Shin Kyung-chul, Korea Association of Robotics and merged technologies, should be mainly focused from now on. This is while hardware development, for example semiconductors and a portable terminals, have been well focused. It is necessary that the new government should make good surroundings for business, such as easing regulations for companies' active participation and investment through indication of potential future business. Especially, the legal system should be more dynamic not only to build up Korean global leadership in the merged broadcast and communication market, but also in order to provide the nation with a specialized service at the right time - that can start a new digital era. I hope that the new government tries to boost the use of IT and e-Business in all industries and also tries to help establish a stable base for improved market competitiveness and productivity through investment in the workforce to create the globallycapable labor force. Baek Jong-jin, Chairman of Korea Venture Business Association The government should take steps to help venture businesses make inroads into global markets, ushering in a new era of globalization. 50% of venture businesses have already made inroads to overseas markets, and more than 95% of companies are still planning to extend its business abroad. Venture companies make their own decisions to start their businesses in global markets, as part of their efforts to draw sustainable management strategies. However, we are still confronted with a shortage in the following areas: information on overseas markets, management funds, and labor, as well as a lack of networks linked to the overseas markets. Therefore, the government should serve in If we spare no efforts to be highly competitive in the global markets, drawing on the industry's self-discipline and high-quality products, it is no doubt that we be very successful. There is a great increase in the number of a specialized forms of industry - which requires for huge initial investments in the technological development from the outset, and grows bigger and stronger later, based on accumulated technological expertise. Robotics is a prime example. Robotics is a next-generation growth engine industry, and calls for people to make a huge amount of initial investments in technological development. Therefore, we can gain a competitive edge by investing in the technological development of others. We share the idea that it is high time to make investments in the technological development. The government should give support to the initial investment of technological developments, to help companies create a virtuous circle. a pivotal role in helping companies run their businesses successfully in the global market, by carrying out state-run programs to support human resources and budgetary affairs and assist in the formation of trustworthy global networks. Second, the government should draw measures to expand the scope of the securities markets for companies. In this regard, appropriate measures designed to reinvigorate the M&A markets and expand the technical transactions should be formulated, by taking into due consideration the promotion of the KOSDAQ market, the Korean single securities market, and the special characteristics of the venture businesses. Many companies are born but, at the same time, many die. Most companies still face obstacles in their efforts to get onto the securities market. Therefore, it is of great importance to expand the scope of participation in the securities market for all companies like this. KOREA IT TIMES March 2008 _ 2 9 Presidential Inauguration Recommendations Medical IT Games Industry Lee Chul-hee, President of ezCaretech Jeon Chan-woong, CEO & Founder, Joymax "Medical IT companies are not just simple businesses that provide IT services, because every single thing they have to offer has a direct relationship with a patient's life. What companies involved in this field need is an the means to catch fish, not a cooked fish to be eaten at the table. Detailed guidelines and standardization will allow interoperability and make medical IT companies compete with each other for the best interest of the customers." "I was disappointed to hear the government's decision to close the Ministry of Information and Communication. The construction and manufacturing industry have already been developed but while the required budget was very high for those companies, the IT industry does not need such a huge investment. I hope the new government pays IT the attention it deserves." Digital Industry-Semiconductors Hwang, Ki Soo, CEO of Core Logic Jee Joon-young, Managing Director, Adobe Korea "My strong hope is that Korea's IT business will improve in the coming years with our new government. For fast growth, IT policies and plans should be actively implemented. We need far-reaching reforms, including the deregulations of certain practices, better training, and, especially, the revitalization of the system IC business. While Korea is the world's number one DRAM chip maker and explorer, we do not yet have the advanced technology to make state-of-art non-memory semiconductors." "I'd like to ask the government to step up the quality of IT education in this country. At present, we just have office tours and the like, but the next generation needs multimedia and digital communication for young people. Korea lags behind other countries in this respect, and we also need to expand the software property industry." Telecommunications Internet Won Choong-yun, President of DTVInteractive Kim Kyoung-ik, CEO, Pandora TV "The new government needs to take an interest in and support new media businesses like digital broadcasting, mobile TV, IPTV, and WiBro, which are global trends with a lot of potential. We acutely need a mid- to long-term plan to help support the digital broadcasting equipment industry, which is almost a barren land at the moment." "I think more freedom is needed for the development of the IT industry. In the United States, IT policies are based on freedom. Network costs in Korea are three or four times more expensive than in any other country. The government should provide more assistance in this regard." Games Industry 3 0 _ March 2008 KOREA IT TIMES Software Storage Recommendations - Seo Soo-kil, CEO, Wemade Lee, Kyu-yong, CEO, 3Gen Data Systems Korea "I don't expect much from politicians, but I hope the new administration will at least try to understand new concepts from new and global markets. Try to understand more of what your children are involved in - you might understand more about your children's generation and they future that way." "The IT policy in the past government was tremendously focused on large corporations with hardware products in the enterprises markets. More detailed projects are needed for small and medium sized enterprises' IT development in this duration. Large corporations seem to run their businesses without the help of any smaller enterprises' potentially more inventive solutions. Innovative distribution can be encouraged if a wider range of people get involved." KOREA IT TIMES March 2008 _ 3 1 Presidential Inauguration Tourism to the Korean embassy, take part in an interview with a consul, and bring along the original passports of every student. Korea Tourism Organization Wrapping Paper for Korea H uko is a Japanese student who has just finished her university finals. She decides to take a graduation trip to Korea and come to see the places where some of her favorite Korean soap operas were shot. As the plane approaches Incheon Airport, Huko concentrates on a travel guideOh Jee-chul, CEO of the book in order to squeeze out Korea Tourism Organization as much information on Korea as possible in the last minute. When she arrives, with butterflies in her stomach, she sees an information desk with a sign that reads: "Phone Rental for the fastest check-in in the world and the newest traveler information." Huko takes a look at the rental phones and personal Digital Assistants (PDA), and finds it amazing that all sorts of travel information is provided in Japanese. Not only that, when she clicks on a hotel category, she could see the pictures and descriptions of the hotels and book a room automatically. The lady at the information desk says, "If you put the phone on the top of the tag reader in a taxi, it will automatically contact the hotel you reserved and let them know the exact time of your arrival, to assist you with a faster check in. You also won't need to worry about communication difficulties with the taxi driver, either." From the moment Huko had arrived in Korea from Japan, she has already made a travel companion. "Every country has the potential for tourism." That is according to Oh Jee-chul, CEO of the Korea Tourism Organization. What makes tourism worth improving? Tourism will make up 20% of the entire world's Growth Domestic Product (GDP) in five years’ time. In Korea for the past 5 years, tourism accounted for a little over 10% of our GDP. "Tourism is an industry that consistently grows. Currently, 17,000,000 tourists are visiting China. 40 million 3 2 _ March 2008 KOREA IT TIMES The applicants also need legal confirmation of your application, a list of names of the students, and the supervising teacher or the travel agent's personal information. Even with all this procedure, it takes 15 working days to be issued with a visa to enter Korea. Japan, on the other hand, requires a simple subscription process and the visa is issued in only two days. The guidelines and policies to improve these three subjects will definitely help to promote Korea's most interesting tourist projects. people in the world are on holidays overseas. America and China are expecting to host up to 100,000,000 tourists in the near the future. The tourism industry creates a lot of jobs. 1,8000,000 people are currently working in the tourism industry in Korea. Our vision is to create 400,000 new job positions with tourism. Lastly, tourism increases the value of a country. The question is which wrapping paper to use on Korea - would a gold ribbon be best, or should we go with green? Tomi Ahonen is an European mobile communications consultant. As he said in his book, Digital Korea, one of Korea's major strengths that it really can grab the world's attention when it comes to information technology. He wrote, "To understand our digital future, we have to understand South Korea." "With the IT infrastructure in Korea, the country can show more than historical sites, natural beauty, and modern architecture," said Oh. The majority in Korea already watches TV while on the go, and navigates their way around on their mobile phones. By using that as one of the ribbons, Korea Tourism Organization is in progress to create multi-language mobile electronic map, story telling content, and travel information. '88 Seoul Olympics, no single five-star hotel has been built in Korea. Hotel business is also trade business," Oh added. But, currently, on top of over taxation on their profit, Korean hotels have been on regular payment plans on their utilities. According to Oh, this must be adjusted by 2010 so that the hotels can pay utility fees on the industry payment plan. Also, property tax should be reduced by 50% and local tax on business complex should be abolished. He said, "Golf resorts are seeking for help to attract domestic clients as well as foreign guests." In 2007, 1,000,000 Koreans visited overseas golf resorts and spent 1.88 trillion dollars. In return, the number of visitors to Korean golf resorts can be counted on the fingers of one hand. Golf should no longer be seen as a prestigious sport for Koreans. But the government's over taxation on golf resorts has been squeezing Korean golfers' pockets. Special consumption tax and sports promotion funds on golf resorts should be abolished for golf resorts that are already fed up with paying property mortgages, profit taxes, and nature preserving taxes. The travel guide phone, 1330, and travel guide information system, i-net, are another ribbon to wrap tourism and IT together. Just as the Year of the Rat represents quick propagation, the i-net system will be spread to 393 travel bureaus in all parts of Korea by the first half of 2008. In order for the golf resorts to preserve the land surrounding the golf course, they also have to buy the land around the course and pay its tax. All of these are what costs the consumers in the end. Anything from restaurant information, performance schedule, travel sites, and public transportation guide will be provided with an i-net system, and 1330 phone services will respond to travelers' calls within 49 seconds at the maximum. The golf course usage fees and even the fees for caddies are higher in Korea than any other developed country in Asia. We need to resolve some visa issues, to make it easier for people to come her in the first place. So the KTO has found two beautiful colored ribbons to wrap Korea. But is Korea itself ready to be wrapped in paper like this? By practicing no-visa projects in popular cities in Japan and China, the countries managed to attract more tourists than ever before in history. In order for, say, Chinese teenagers to come to Korea on field trips, the procedure is extremely complex. The hesitant response from most tourism organizations is due to restriction on tourism industries and visa issues. "Since the Either a travel agent or the supervising teacher should show up Then what are the Korea Tourism Organization's assignments until the government completes their assignment to set Korea on a wrapping paper? The creative and original tourist packages should continuously be developed. "For an example, there are 33 Buddhist temples in Korea with great sceneries and traditional food. The Japanese believe that a complete tour of all the temples in a country brings fortune. This year, a package tour will be created for the tourists to be able to visit all 33 Buddhist temples in Korea," said Oh. Oh also said that other projects like Peace Life Zone travel packages including the DMZ(Demilitarized Zone) is on its progress. Slow City is another idea. Four regions were currently chosen as the area where maintains the traditional culture and nature. A travel package is to be developed for bona fide city slickers. And the last thing Korea needs before it is wrapped is friendly people. Oh added, "We need to work on facial and verbal expressions. On every corner, a campaign will soon start to promote a sparkling Korea with a great level of cleanness. Public restrooms are a major topic. A 'three-word greeting' campaign is another idea. But it would be the best thing if tourism was taught as a mandatory subject from the early education." An eco-friendly environment, IT based tour guides, the reduction of travel costs with policy alteration, original tour attractions with a good package deal, and the cooperation of local people added altogether added to the country will wrap the country with colorful ribbons in a fancy wrapping paper. Once it is beautifully wrapped, on-line marketing will display them in their show window. Korean food recipes, the comments of tourists, and the other interests of bloggers will be post online and the world of Google will lead people to the site, www.visitkorea.or.kr, to provide them with more information. Korea Tourism Organization's soon-to-be-made ribbons wait to wrap Korea in the bright colors of high-technology. CGE KOREA IT TIMES March 2008 _ 3 3 Presidential Inauguration Opinion The Great Canal and Technology s Role Park Ki-shik, Vice President of the IT Services Research Division of the Electronics and Telecommunications Research Institute, gives us his spin on Lee Myung-bak's ambitious plans to build a network of canals across the country. Overview - Vision 2008 V ision 2008 is an extensive series of interviews we have conducted across a pretty wide spectrum of Korean IT companies and technology companies based in Korea. T he election may be over, but the debate on the Great Canal project continues. The project was one of Lee Myung-bak's key election pledges during the 17th presidential campaign, and controversy is still lingering on a wide range of thorny issues. The Great Canal, which is planned to comprise three sub-canals, namely Seoul-Busan, Seoul-Honam, and North Korean canals, is considered a national project that will eventually link the three sub-canals into a one big canal, which will stretch across the entire Korean peninsula. If the Great Canal is successfully constructed, it will provide a new means of transportation that will cut logistics costs in preparation for a future rise in commercial traffic and lead to "grand national integration". The hope is to not only link communications, but to create human links along a waterway that runs in every direction. There may be many benefits and useful side-effects of the canal's construction. Indeed, several rivers in Europe, such as the Rhine and the Danube, are linked to form waterways, attracting cargo and tourists since time immemorial. When it comes to the current dispute, the arguments for and against the canal tend to polarize people. It 3 4 _ March 2008 KOREA IT TIMES seems you are either a canal supporter or a canal skeptic. However, my personal opinion is not so black and white. I think we have to consider the fact that the degree and extent of any positive or negative results that are expected from the canal construction can be strongly influenced by how we drive the project and how we manage and operate it after its construction rather than on the canal itself. In fact, as many people have pointed out, the undertaking of the Great Canal project in the traditional way of starting up a construction project may turn it into a mundane business. However, I believe that we can mitigate some of the negative perspectives if the Great Canal project is planned as a 21st century "intelligent" canal by using advanced up-to-date technologies including IT. We can surely resolve these issues if we make the most of our cutting-edge IT industry, which is brimming with of strengths and advantages. For an instance, we can think of building a real-time, sensor-based canal operation system by utilizing Korea's advanced IT through such means as building a WiBro network along the waterway, mounting RFIDs on ships, and installing sensors on the ridges and the river bed. In addition, we can meticulously construct and operate real-time canal management systems for monitoring the environment, preventing accidents, and managing water resources based on the Ubiquitous Sensor Network (USN), RFID, and a variety of high-tech information technologies. Not only would this make it possible to resolve issues related to environmental damage and natural disasters, which concern many people, but we might also expect to reap the benefits of improving the environment and water quality and reducing disasters. I also believe that developing and utilizing a software-based simulated canal operation system beforehand for such a large national project is a desirable alternative. It is necessary to tackle the Great Canal project, conceived in the 21st century, with the kind of creative mind that has conceived the great construction projects of Dubai. We need a new perspective that supersedes the existing frame of thoughts. The combination of Korea's IT prowess with the dream of a Great Canal stretching across the Korean peninsula may drive this country one step closer to becoming a more mature advanced nation. In compiling Vision 2008, it has been surprising to see that there have been a few striking similarities in the kind of responses we have had, even from very different people involved in some very different industries. The first trend, and possibly most striking, is the fact that almost everyone we spoke to seems to imply that 2008 is not just an important year for their companies - it is rapidly becoming a make-orbreak year for Korean IT. Never before have Korean companies, who have, until now, been happily working on their own in a hermetic bubble, occasionally foraying into the outside world to sell some of their wares. However, the idea of Korean IT existing as a cottage industry is quickly becoming a fantasy. Based abroad, there are other, very powerful movers in the world of IT, and globalization is a double-edged sword for Korea. While global markets are great, in a way, because they allow Korea to sell their wares everywhere from Guam to Guinea to Guadalajara. However, the other side of the coin is that there is nothing to stop companies from other countries to take on the Koreans at their own game, or even to sail over here and try to blow their Korean competitors out of the water. 2008 sees a lot of Korean companies braced for just that. However, there is also good news contained in these pages. It seems that Korean companies are not only fully aware of the competition from abroad - they also have developed elaborate and wellthought out strategies to attempt to deal with the difficulties they face ahead of them. We hope that you will agree that whether it frightens or re assures, it all makes for some very interesting reading. Tim Alper, Editor ([email protected]) KOREA IT TIMES March 2008 _ 3 5 Vision 2008 Telecommunications and Broadcasting Internet DTV Interactive Video Chief Hopes for Government Breaks Digital TV - Making Buses Everywhere More Dangerous Places To Be Pandora TV are Korea's biggest User Created Content site, but say if companies like them are to expand, they need the government to adopt the right policies. DTV Interactive are not content with taking the Korean domestic digital TV market - they want the Americans and Chinese to follow suit. I f you are thinking taking a bus in Korea, there are plenty of dangers to consider before you hop on. Bus drivers in Korea can drive in a way that will make you feel like you are on a rollercoaster, and old women with loose shopping bags can catch you in the kidneys when you are least expecting it. But as though that is not enough, a new threat has been added - the rogue mobile digital video user. This strange individual seems unconcerned about where he or she is going, where the bus is going or has come from, and certainly seems to be oblivious of the presence of fellow passengers. What does consume this person's interest - every last milligram of their interest, at that, is what is happening on their mobile phone or personal media player. You see, Digital TV means much more than some flash household appliance for these people. For them, Digital TV also means Digital Multimedia Broadcasting (DMB), which means that you can watch television on your mobile, your mp3 player, your laptop computer. You name it - if it is electrical, the chances are you can now watch TV on it. And as if modern broadcasting technology had not progressed enough, experts are now saying that more progress is on its way. DTV Interactive are a Korean Digital TV manufacturer. According to their Chairman, Wo Choong-yun, soon, you won't even need to stick an aerial into an application in order to get it to pick up TV signals. T based network and will evolve into wireless IPTV harmonized with mobile high-speed internet systems." And having identified the Chinese and American interest in digital TV, DTV have set their sights on overseas markets in the year ahead, looking to take advantage of the Olympics in Beijing, as Chinese operators try to release products in time to tie into what they hope will be the biggest show on earth. Won explains, "DTV Interactive will devote all our energy on to break into the emerging markets in China and the USA. Digital and Mobile TV standards can be established there by developing new products and finding sales and marketing partners." DTV Interactive, who have the biggest share of the domestic market, too, plan to go further than consolidating their home dominance. They will expand beyond Korean shores in their quest to enable the world to watch TV wherever, whenever. "We have been doing our best to open up new markets overseas ever since we founded the company," Says Won. All of which means that in all likeliness, we will all be glued to our mobiles, PMP, watches or whatever else we will soon be able to see our favourite soap operas on. And if DTV Interactive have their way, not just the buses in Korea will become more hazardous for passengers - but also those in Shanghai and Seattle, too. TA Won says, "Not only Korea, but China and the US are getting involved in DMB and Internet Protocol TV (IPTV). The amount of equipment related to digital broadcasting is going to increase. IPTV will surpass the existing wire- 3 6 _ March 2008 KOREA IT TIMES Pandora TV he World of IT loves anachronisms. More than anything else, it loves predictions that contain anachronisms. Like this one - UCC is the future. User Created Content (UCC) sites are one of the fastest growing areas of global technology. The idea is simple, but beautiful - we live in a world where a large proportion of us carry digital video cameras around in our pockets in the shape of mobile phones. UCC sharing sites allow us to upload our videos to the Internet, and share them with not only our friends and families, but with the rest of the World, too. UCC is an area of the Internet where Korean companies have enjoyed no small success, but a change of government could mean a journey into the unknown for Korean companies who have been working their way towards success. With Lee Myung-bak now in charge of Korea's executive, companies are hoping he will look after their interests - in the interest of the Korean economy. Pandora TV are Korea's leading UCC site. They have the lion's share of the personal media market in this country, and hope to expand their enterprises to incorporate foreign markets, too, taking on big hitters like Googlebacked YouTube, the biggest UCC site on the planet. Like other successful Korean IT ventures, Pandora TV are now looking abroad, to see if they can capture some of the foreign market - in particular the potentially lucrative East Asian market, which many analysts believe the biggest UCC battles will be played out on. few corners if they are to continue to expand. He says, "Domestic network connection costs are three to four times more expensive than network connections in other countries. This is a very big problem for us. We are not alone in needing government support for things like this if it is at all possible." Countries like China, the Philippines and Indonesia have gigantic populations that are slowly becoming just as Internet-conscious as the rest of the World. And the Pandora CEO thinks the role of the government is not so sizeable, relatively speaking. Says Kim, "Most IT policies are already open to the public in Korea. That means they can be debated and weighed up in the public arena." Such countries have industrialized rapidly and are now joining the technological rat race. More disposable income in the hands of so many means big bucks for international companies that break into these markets. However, if Korean companies want to be amongst the companies that make a mark in emerging markets, many believe that they will face very stiff competition from rich companies from the USA and elsewhere. For this reason, government help is essential for such enterprises. Many have, in the past, criticized the Korean government for being too interventionalist when it comes to IT. However, Kim believes that this is not the case, though he would like to see authorities expand their network of support. "The government does not interfere with the work of individual companies. The problem is that it also does not give any real support to them," he says. Pandora TV's Chief Executive Kim Kyoung-ik says that, ideally, the new administration will provide a better level of support for companies like his, who are looking to expand beyond these shores. When it comes to state intervention in IT, Kim believes that Korea needs to take its lead from America. He says, "In the United States, IT policies are based on freedom. I think more freedom is needed for the development of the IT industry in Korea." Kim believes that Pandora TV needs the government to help them to cut a TA KOREA IT TIMES March 2008 _ 3 7 Vision 2008 Online Games Joymax / Wemade Online computer games are no longer a niche market - they are big business. But can the Korean market survive the arrival of the Japanese and US giants? And games like World of Warcraft (WoW) and Second Life have hit the headlines in recent years, with people selling online Second Life properties turning their virtual earnings into real profits. Anshe Chung, a Chinese Second Life enthusiast made front pages across the globe when she became the first computer games millionaire. Her vast network of property in the computer game has made her over $1 million in real money, opening up the floodgates for the virtual world to invade the land of reality. When, only thirty six years ago, Atari released Pong, widely recognised as the first commercial computer game in history, its designer, Allan Alcorn probably had no idea what he had started. Korean computer games generate a lot of money for the economy, but can they be exported on a large scale? E very morning, a 76-year old man in Busan gets up and goes straight into the online computer gaming world of Legends of Mir. Think that computer games are for spotty teenage boys with poor social skills? Think again. And the elderly Busanite is by no means an anomaly in Korean society. Legends of Mir's oldest female player is a 69-year old woman from Andong. 3 8 _ March 2008 KOREA IT TIMES When the online community spot the pensioners' characters online, they are universally greeted with deep virtual bows from younger players. Korea is awash with online computer games. And if Korean companies have anything to do with it, the world is going to have to come to terms with learning one of the English language's longest anachronisms. MMORPG stands for Massively Multiplayer Online Role Playing Game. Pong saw two paddles move slowly across the screen to strike a ball back and forth in a rough imitation of table tennis, but in well under half a century, the computer game industry has become one of the biggest success stories in human business history. Fortunately for this country, Korea was an early mover in computer game technology, and rather than specialise in the kind of games made for imported games consoles from Japan and the US, Korean computer games companies decided to make software for hardware that could be made in Korea, namely Personal Computers. And as Korea managed to pull off the feat of being one of the first countries in the World to widely spread highspeed Internet access across the nation, the notion of online PC computer games was an easy fit for Korean users. of Wemade, who make the hugely popular Legends of Mir series of games. He says that his company sees a different solution to the unstoppable onslaught of the big-hitting games giants from the US and Japan. Through the Lineage series, Legends of Mir and Silkroad Online and many other titles, Korea has become something of an expert in making MMORPGs. Jeon Chan-woong is the CEO and founder of Joymax, who make Silkroad Online and other titles. Jeon explains that while packaged games traditionally tend to allow for static player dynamics, online games are different. He says, "The player versus computer or player versus player format is staid and static. MMORPGs allow for players to compete and collaborate in so many different ways." In this way a group of players can work together, or an individual can go it alone, the possibilities and combinations are seemingly endless. Perhaps the name "Second Life" is more apt than first seems. Indeed, experts believe that online gaming could be yet another new form of nascent social interaction - a new way to meet real people, in real life, could well be to log as your favourite fantasy character. Jeon says, "MMORPGs easily create a sense of community, with users going online to create and join new communities. There is nothing to stop these users meeting in the offline world - and indeed many people do this kind of thing already. Games are becoming social tools." However, though Korean companies have enjoyed some deal of success in the lucrative East Asian market, which includes China, with a population of around 1.6 billion people, there is danger on the horizon. The Americans and the Japanese, the established computer game superpowers, are starting to see the advantages of developing online PC games, not just their own consoles and games which can only be used on such machines. Nintendo, Sony, Electronic Arts and Microsoft are the biggest hitters in the gaming world, and have financial clout that smaller Korean companies could not dream of commanding. For this reason, Korea's biggest game producers are quickly waking up to the fact that although they may have all but monopolised their domestic market, they must move quickly on the global stage in order to survive. "We need to go global. In fact we need to go global fast, in order to stay afloat. That means on every level. Our boardroom meetings are held in English and we are providing our staff with free English lessons so we can communicate with people outside Korea. We have to form alliances with foreign companies, and find partners from other countries." This desire to diversify and go elsewhere in the world is not born of some megalomania, some vague hope to capture the World market, but a desperate desire to succeed against some of the biggest, richest companies around. Says Seo, "We cannot take on the likes of Microsoft - we do not have the financial clout to take on even a single department of a company like that. So we have to develop things which are global and practical." But for different companies that means different things. Joymax boss Jeon says he intends to create a new niche in the world gaming market - a kind of worldwide games database. So what is global and practical? Seo says, "We are looking at buying up intellectual property rights for film tieins and so on. We have a lot of experience and we are capable of creating online worlds other companies cannot do right yet - we have to use our advantage now." He says, "We have launched the joymax.com site, and we intend it to turn into a searchable portal site for gamers who want to know more information about the latest online game news. We want it to turn into the Google of the gaming world." So it seems that the domestic computer games market are at least aware of the potential difficulties about to blow their way when the big spenders - the likes of Sony, Nintendo and Electronic Arts - start to invest in the MMORPG market. TA Seo Soo-kil is the CEO and President KOREA IT TIMES March 2008 _ 3 9 Vision 2008 Digital Industry Core Logic pany has opened an office in Shenzhen following its Shanghai operations and is shifting into high gear with its consumer business preparations for China. Core Logic’s "Core" Business Plan Core Logic acquires global chip competitiveness and moves on to the mobile device market in service oriented business format. "T he Worldwide semiconductor market and industry will continue to show gradual improvement this year. Core Logic has been growing fast since it was set up. Especially this year, it is doing its best to take another leap and radically reform with diverse efforts - such as business expansion, customer diversification, business globalization and more." This is according to Hwang Ki-soo, the president of the Core Logic group. He is confident with the techniques that have meant a sharp rate of growth in the global digital mobile equipment markets for past ten years. However, Mr. Hwang emphasized that it is also important to set the availability of growth for next ten years in order to take a leap, withholding the current rate of growth. "Business performance from last year shows a slowdown," said Hwang. However, he added, "We saw a slowdown in our growth when we changed our main product to the Multimedia Application Processor (MAP) from the Camera Application Processor (CAP). This is just a passage of rights every company goes through in its growth process." The ace in the hole that he has been planning to play since two years ago is already in the making. Core Logic plans to 4 0 _ March 2008 KOREA IT TIMES With the trend in the mobile phone market shifting to smart phone from feature phone, a rapid rise in the smart phone market is expected. By preparing an innovative portfolio, Core Logic is switching its previous slave type multimedia application processor products into strong master application processors. Core Logic's JADE is applicable not only to cellular phones but also to digital consumer products such as satellite navigation, which also provide Java and blue tooth functions. Core Logic seeks to further expand its capabilities in the digital consumer market with mobile System-on-Chip (SoC) technology that has been proven in the mobile phone industry. Developing digital consumer business further, Core Logic plans to balance with its handset business, which had taken more than 80% of the main source of profit. Open Operating Systems, such as Symbian and Linux, will be ported to Core Logic Applications Processor (AP) chips to be used in smart phones and the middleware is being prepared as well. Core Logic is actively pursuing entry into the Chinese market for not only its handset business, but its mobile digital consumer business as well using its mobile SoC technology, which it has accumulated over the years. With the development and release of this product, Core Logic plans to preoccupy the smart phone market, which will lead future mobile phone market growth to achieve not only continuous growth in the mobile phone market, but to enter the digital consumer market, which will require this type of performance and functionality as well. With this strengthened market competitiveness, Core Logic is ready to be reborn as a true multimedia solution provider competing with global players. As a step of strengthening overseas activity, Core Logic converted its Shanghai branch office into a formal corporate entity to actively address the Chinese market last year and a newly-opened an office in Shenzen, well known for fast-growing consumer business. Core Logic's most remarkable innovation is "JADE," which was introduced in April 2007. JADE is a Multimedia Application Processor (MAP), a current upfront product of Core Logic, and was demonstrated at the Mobile World Congress2008. downsize its mobile phone business except for the chips used in smart phones which combine mobile phone and PC functions and will leverage its mobile processor technology accumulated up to this point to expand its business field into mobile electronic devices. In particular, the company is transforming into a multimedia platform solution company, which manufactures both hardware (processors) and software for mobile devices such as navigation, 3D gaming consoles, and camcorders. To this end, Core Logic last year acquired Mcubeworks, a professional mobile multimedia software company, for 22.7 billion won. By combining Core Logic's chip technology and Mcubeworks' software skills, the company plans to shorten the development time for multimedia platforms to be included in various mobile devices. JADE is equipped with a H.264 decoder, the next generation image solution that not only enables satellite mobile broadcasting and terrestrial broadcasting service which are commercially utilized in Korea, but simultaneously provides DVB-H service, the mobile TV standard in Europe. In addition, this product enables better content sharing by DRM, USB2.0, and MTP. Together with its low power consumption, it fits perfectly into music-playing mobile phones. Core Logic recently signed an acquisition agreement with STS Semiconductor for greater synergy in the semiconductor field in December last year, and made a great step towards the Electronic Manufacturing Service (EMS) business. This change for Core Logic is intended to enhance its competitiveness in the global market, and its transformation to be a total platform service provider will accelerate in both life and capability. Hwang says that the year 2008 will be very first step towards the evolution of Core Logic with a platform-typed product combining hardware chips with a variety of software. Therefore, this year is critical for the company if they want to make a leap to become a major global player. If Core Logic is to take that leap, they will have to continue to develop their products through the innovation of technology and also to construct service-oriented business surroundings for increasing customer satisfaction. In addition, in order to diversify its business, Core Logic has expanded its business areas into the mobile digital consumer business from its previous handset business and is embarking on plans to lower the percentage of its handset business which currently is 100% to make room for more efforts in the consumer sector. In order to target the Chinese consumer market, the com- KOREA IT TIMES March 2008 _ 4 1 Vision 2008 Software Vision 2008 Solutions Adobe Korea Global Partnership Starts to Pay Off Adobe - "We'll Enrich the Net" Coming into the spotlight in terms of growth potentials, AlcatelLucent is reaping the rewards of a successful merger. Software giants Adobe say design needs to improve and go across media fast as customers grow weary of the mundane. "D esign is everything." These are the words of Jee Joonyoung, the Managing Director of Adobe Korea. It is a sweeping statement, but perhaps more than an empty brag from a major figure in the Korean IT design world. Adobe are one of the biggest software companies on the planet, but have made their name biggest in the field of design software for the desktop publishing businesses - where products like InDesign and Photoshop have become almost household names, even for people who have no idea what they are. Jee says design is of vital importance in the modern world. He says, "Think about new housing developments, he says, nobody wants to live in a grey box-like tower block anymore. They want to live in something that looks attractive from the outside as well." However, there are groups of customers who do not share this rabid fascination with design. Not everyone wants their mobile phone to be designed by Chanel or Armani. They just want it to weigh less, or they want its batteries to last longer. As mentioned elsewhere in this magazine - a product's practicalities are bound to get less funding if so much if IT companies start hiring top fashion designers to design their products. 4 2 _ March 2008 KOREA IT TIMES Alcatel - Lucent Korea tion, customer basis, and businesses. In particular, complementary jobs were created in light of the production. However, Park Min-hyoung, Senior Marketing manager at Adobe, disagrees. He says design must be seen as part of the total package. "If design meets its original purpose, quality doesn't have to suffer. A mobile phone that is designed well - but not good enough in terms of quality - might not satisfy customers, but the opposite is also true. There needs to be a good balance." And Jee adds, by way of example, "It used to be that in book publishing, for example, a company would just print their book and that would be it. Nowadays, a book publisher needs to develop not only the offline contents, but web contents to promote the book on the net. They may also want to develop mobile contents, for people using their phones or other devices on the net." The big hitters in the design game believe that the future of the Internet lies in the hands of web designers. Park says, "Users are being bombarded with advertising and marketing every time they turn on their computers. Simply having your website out there on the net does not guarantee that anyone will actually visit it. It takes something special for today's customers to sit up and take notice." Adobe see Korea as a big potential market for their new software, and Park says that Koreans have a particular need for their products. It is true that badly-designed website is market poison if you want your business or orgnaization to succeed. If it looks primitive and/or difficult to use, it is unlikely that people will want to buy anything from you, or do business with you. TA He says, "Koreans are early adapters, and they are getting an international reputation as being people who can get their foot in the door first, so the idea of publishing better material, on several platforms, faster and more effectively is very attractive to them." Yang choon-gyung, CEO and chairman of Alcatel-Lucent Korea A lcatel-Lucent Korea marked an additional growth of more than 100 percent in 2007, compared with its business plan designed for last year. It was made possible, now that it has gained greater synergy effects through its activities overseas. Yang Choon-gyung, CEO and Chairman of Alcatel-Lucent Korea, said, "The company saw a slight increase in the overall sales in 2007, compared to the aggregate revenues of respective companies before the merger. It is a huge success despite the deadly effects of foreign exchanges last year. The company succeeded in putting into practice its roadmap for costs and personnel reduction in the first year since the merger, which was originally scheduled for the following three years." 2008 will see Adobe release their Rich Internet application software for companies who hope they can find a way to grab the imaginations of customers who think they have already seen it all when it comes to the Internet. Yang added, "Korea made a huge success by achieving the synergy effects of the merger, more than any other countries in the world. In this regard, AlcatelLucent Korea was recognized by the headquarters as a highly successful entity." Jee says, "We are already in a world where contents are pretty much available everywhere." He explained that there were nearly no overlapped areas of business between Alcatel and Lucent, in terms of produc- The Alcatel-Lucent chief also made clear that light transmission equipment achieved outstanding results last year, expecting that demands are still growing for the new and additional establishment of the equipment. In particular, he emphasized that two-way custom services based on the end-to-end solutions should serve as a pivotal role to help Korean companies to gain a competitive edge over the growing IPTV market. Responding to the news that AlcatelLucent will join hands with Japan's NEC to form a new joint venture at the Mobile World Congress held recently in Spain, he said, "The joint venture will bring great achievements to the development of wireless technologies in the future." He underlined the importance that Korean conglomerates, such as Samsung and LG, should stand at the forefront of forging a global partnership to gain a competitive edge over fourthgeneration mobile technologies in the market. Lucent Korea had a satisfactory first year as a merged company in 2007, with a strong emphasis on maximizing the synergy effects of integration. Coming into the spotlight in terms of growth potential, it succeeded in yielding tangible results and creating the effects of growth synergy led by the merger. Alcatel-Lucent was successfully equipped with a wide range of produc- tion lines and solution portfolios that cover a marked convergence of the online, wireless, and broadband infrastructures, through the merger. AlcatelLucent made headway in the Korean network market last year. In particular, Alcatel-Lucent presents a solution to all networks and service requirements, by providing "TPSDA," GPON equipment "7342ISAM FTTU (Fiber to the User)," BSR, next-generation multi-services router "7750SR," and service aggregation equipment "7450 ESS(Ethernet Service Switch)" Alcatel-Lucent Korea succeeded in establishing the network of FTTH subscribers by ensuring that Hanaro Telecom was the first GPON customer in Korea. It also initiated its domestic businesses by providing service routers available for the IP-TV to KINX. Formed from the merger of Alcatel and Lucent Technologies, Alcatel-Lucent combines two entities that share a common lineage that can be traced back to 1986, when Alcatel's parent company, CGE (la Compagnie Generale d'Electricite), acquired ITT's European telecom business. Nearly 60 years earlier, ITT had purchased most of AT&T's manufacturing operations outside the United States. AT&T was Lucent's former parent company. Alcatel-Lucent is bringing its common heritage back together and starting an exciting new chapter of its history -- creating the world's first truly global communications solutions provider, with the most complete end-to-end portfolio of solutions and services in the industry. KHS KOREA IT TIMES March 2008 _ 4 3 Vision 2008 Storage 3Gen 3Gen Data Systems Korea - storage solutions for a growing world 3 Gen Data Systems are a professional vendor based in Michigan USA and are a global provider of high quality TCO (Total Cost of Ownership). nical strategy, one which changes from hardware-centered to solutioncentered. This change will setting up a new solution in the field of storage. They are also providers of some cutting-edge storage solutions with complicated-sounding names. These include SCSI (Small Computer System Interface), iSCSI (internet Small Computer Interface), SAN (Storage Area Network) and NAS (Network Attached Storage) that enable businesses worldwide to store, protect, and manage their data with ease and efficiency. 3Gen actually introduced two strategic products, and one of them has been loaded to a hardware chip set as a standard unit. Then this product will be introduced to the market as a single-bodied piece of hardware, while all server back-up programs are formed as software. The headquarters of 3Gen is currently in Michigan, USA, It has more than 20-year experience in the storage industry and there are five more international branches, including Seoul, the capital of Korea. Contents of biz promotion and strategic storage Lee Kyu-yong, the CEO of 3Gen Data System Korea, said that they have been promoting a differentiated tech- Therefore, customers can feel the benefits, in terms of cost-cutting and managing. A high level of techniques is easily recognizable: it is impossible to delete the back-up data meaning customers should fear nothing from external hackers and mistakes in management. Strengths and opportunities There are four big positives from 3Gen: price, acknowledgment of the brand values, the product itself, and the market. Lee said, "Compared with the current import prices of Taiwanese storage, our products are competitive. We are also leading public relations, compared with Taiwan and competitors from other countries." He also added, "Our products are competitive enough with major competitor companies' mid-range or entry level products. Furthermore, the SMB market has grown. And especially, UCC, IPTV, CCTV have changed to SMB products. They have started using low-priced massive storage solutions." Global networks, biz co-operation trend and plan However, Lee pointed out a problem through his 17-year long experience with four global companies such as 3Com. It is difficult to succeed in cooperative business between foreignbased corporation and most domestic companies. or in the subject of their partners' cooperational business between domestic companies because companies run limited sales "only" on the sales of their own products. For this reason, 3Gen plans to build up co-operation oppertunities with capable Korean companies who are also looking for good solutions. 3Gen believe they will increase overseas sales through domestic and global networking. "IntelliSAN SAS RM120" a SAN storage solution, supplying a hardware servers with a technology to prevent data loss 4 4 _ March 2008 KOREA IT TIMES KEJ U-life a year or two at its own expense to do stenography until the system became familiar to them. With full support from ezCaretech, the physicians transformed into Supermen and Wonder women doctor within the space of a few years. ezCaretech and the Sisyphean Challenge Can technology and healthcare ever go hand in hand? We take a look at one company who say they already do. e zCaretech is the child of Seoul National University Hospital and some IT experts. Its efforts have given the supermen and wonder women Doctors of Seoul National University Bundang Hospital a new supernatural power - the ability to answer to a call within the space of a few seconds. The seven-year old ezCaretech is determined to see its their huge boulder stay at the top of the hill, like Sisyphus in the Greek myth. In the story, Sisyphus was condemned to push a giant rock up to the top of a hill, though every time he got near the top, it slipped and rolled back to the bottom. And every time ezCaretech reaches the top, Zeus seems to display his cleverness and sends ezCaretech back for more frustration. However, it seems ezCaretech's Sisyphean task over the last five years has finally paid off, with a large return on investment last year. Lee Chul-hee, President of ezCaretech, defines the company as a Total Medial IT Service enterprise which enables the digitalization of hospitals by providing software, customization, and IT outsourcing. 4 6 _ March 2008 KOREA IT TIMES Lee says, "What makes our product unique is that our system is the masterpiece of cooperation between doctors and engineers. A year before the Seoul National University Hospital building was planned to be built in Bundang by 2003, just as many fellows and nurses were hired as engineers to build the software together. All of the same people who researched the software for a year are currently working at the Bundang base." This itself guarantees that the ezCaretech's products were build to satisfy all doctors, nurses, and the patients. Seoul National University Hospital's medical innovation began with ezCaretech's "4-less system". For them, that meant "slip-less, filmless, paperless, and chartless". As Doctor Lee Hak-jong of the Department of Radiology at Seoul National University Bundang Hospital (SNUBH) said in his last interview in December, "Slip-less" means the automatic electronic transfer of the doctor's prescriptions in the office to pharmacies and labs. ezCare -Picture Archiving Communication System allows filmless checking and interpreting of Xrays, scans, and MRI results on com- President Lee Chul-hee of ezCaretech puter right after the film was taken. Paperless solutions, ezCare-Office, computerizes every possible bit of paperwork during the administration to save time in decision-making and sharing information. Lastly, a chartless solution is enabled by ezCare-Electronic Medical Record, which saves patients' medical history, drug responses, health conditions, hospitalization and discharge records in computer. ezCare-EMR also offers Clinical Data Repository, which enables systematic management of accumulated clinical data and Data Warehouse to analyze variety medical information. These are the solutions that make a ubiquitous hospital possible. The actual solution to enable convenient access anywhere and anytime, however, was not always the kind of news most doctors in country wanted. When the EMR was first introduced to local doctor's offices, it took a while for ezCaretech to convince all the doctors to make transition from transitional paper chart to electronic chart. Not only did ezCaretech install the software on general hospitals' computers, but it also sometimes had to provide Physician Assistance (PA) for The nine stars that make up the SNUBH constellation including Seoul Internal Medicine, Seohyun Seoul Internal Medicine, and Chang Internal Medicine are cooperating to take a step further towards the idea of ubiquitous healthcare of its true definition, chartless mobility - anywhere and anytime. If a patient's medical records from a local doctor's office are not transferable to the big hospitals, the trendy idea of U-healthcare will never be completed. President Lee Chul-hee said, "Even if all the u-health services and devices start to pour out, the establishment of so called Ubiquitous Healthcare service is only a failure if it can't provide a direct link between physicians and patients." The next set of SNUBH Constellations should be made in spite of a tension between local doctor's offices and the general hospitals. The ideal theory of bigger hospitals taking local Doctor's offices' patients is outdated. U-Health and the balance between medical policies is the key to the conflict. Medical services should be adjusted to individual's preferences and there is more than one way to obstruct big firm's monopolization. For example, for those who prefer to visit general hospitals for minor illness. It is rather a big loss for a big hospital to examine a flu patient. But if a patient wants to be examined at the general hospital by paying extra, why should it be restricted? A successful example case of this is SNUH Healthcare Systems' Gangnam Center in Gangnam, Seoul. "This center was build for VIPs' health examination, and running successfully. We are seeking to build more institutions like this," said manager Park Chan-ho. So, should all EMRs or digital systems be standardized in the interests of the government? Korea recently signed a MOU agreement with an American company, Intermountain, to develop Electronic Health Record (EHR) systems in collaboration. It is seeking to create global standardization of EHR system by 2010 to take a step closer towards ubiquitous healthcare system. ezCaretech is heavily participating in EHR research assignments and the Ministry of Health and Welfare's RFID research and development while independently investing 5% of their profit on research and development to upgrade their solution and software. Why then, are companies like ezCaretech and Yonsei University Health System using their time and effort to help someone else build a bus, when they have already successfully built Corvettes or Mustangs that are waiting to be upgraded? Can there only be one kind of EHR system? "As long as the core is uniform, the outward style or appearance can take on new forms," said Lee, "There should be several levels of standardization since each client's preferences are different. For example, the size of database and data format varies due to the size of a hospital. Clients also prefer different user interfaces and design. Even if hospitals are of a comparable size, the business processes are different." Lee also suggests that as long as protocols are kept during information exchange, the electronic healthcare system should be left as customized development software. Why would a local clinic need a superdome database system? Surely, something like that would be far beyond the needs of the average clinic, and the unnecessary bloat will be inefficient. What the medical IT companies need are guidelines and several levels of standardization to allow interoperability. However Lee is not so sure. He said, "Medical IT companies are not just simple companies that provide IT services. That is because every single thing they have to offer has a direct relationship with a patient's life." He added, "About six months ago, we decided that innovation, enthusiasm, trust, and professionalism were characteristics a professional medical IT enterprise should have. Our main concern is how to satisfy the entire citizen body with a useful service. Therefore, the title of Number One Medical IT Company doesn't mean much unless we have fulfilled our ultimate goal of improving every citizen's quality of life." Pointless or seemingly impossible activities are often described as Sisyphean. ezCaretech, though, have succeeded not only to build a huge boulder in seven years, but to roll it up near the top of the hill as well. Is the struggle itself towards the summit enough in itself, or do we need to see the task completed in order to be happy? That, for some, at least, is the question of the year. For more information about this company, please visit www.ezcaretech.com CGE KOREA IT TIMES March 2008 _ 4 7 Academia KPU Korea Polytechnic University Wants to Lead Korea to Greater Prosperity University graduates have had an incredible 100% employment rate since its founding, thanks mainly to the school's customized education programs. Particularly, it has constructed a healthy cooperative system with industry through the "Family Companies," mostly small and medium-sized enterprises throughout Korea. This network has been instrumental in promoting cooperation and exchanges with local businesses. These efforts have contributed greatly to the school's remarkable growth into one of the universities most highly esteemed by the government and the industrial world, doing all this in a relatively short period. Dean Choi Joon-young of Korea Polytechnic University K orea Polytechnic University (KPU) commemorates its 10th anniversary this year. The university has come a long way since it opened in a rugged environment amid toddling industrial compounds in 1997. KPU has served as a leading role, dealing with several difficulties to achieve its goal of producing capable engineers with innovative minds to lead a knowledge-based industrial society in the 21st century. It has thereby established itself firmly as Korea's most prestigious educational institution for industrial engineers, expediting cooperation between academia and business and contributing to the nation's competitiveness in industrial technology. 4 8 _ March 2008 KOREA IT TIMES In addition, amid deepening of unemployment woes among young adults, Korea Polytechnic University graduates have enjoyed an unparalleled 100% employment rate since its founding. Behind its stunning achievements is a new paradigm of customized education programs, - such as "family companies," "project on-the-job training credits," and "engineering house." These programs symbolize the university's all-out effort to bolster the industryacademia cooperative system. Additionally, KPU is recognized as one of the nation's top engineering universities in terms of the amount of research funding per professor and education cost per student. Its excellence has been verified through various appraisals by concerned agencies. Korea Polytechnic University has also achieved remarkable results, despite its short history, in terms of the rate of applications they receive. The general screening for the academic year 2008 was highly competitive, with 15.5 applicants for each place. It also marked an application rate of 19 to one place last year, the highest competitive rate of in the university's history. The rate has been soaring, exceeding a level of 15 applications to one place, during two consecutive years. Many believe this is due to the excellent employment rate of students at the university. In particular, Korea Polytechnic University focuses on providing trained and customized talent for small and mid-sized companies facing a severe labor shortage. It laid firm foundations, offering students with practically applicable expertise to help with specializing in adjusting themselves to small and mid-sized companies. It also linked a variety of industry-academia cooperation programs to the regular curriculum, and reflected growing demands from small and mid-sized companies into the academic curriculum. As a result, the employment rate and candidate students' application are simultaneously increasing. In particular, students are required to be given on-the-job training at mid and smallsized companies, at least four months during vacation periods, according to school regulations, and are required to score high in their training evaluations. It greatly contributes to the increasing employment of students in a natural manner. In addition, Korea Polytechnic University spares no efforts to creating a "company-friendly" environment, by coping with the increasing demands from the industry. For example, it considers the industry's requests in rearranging the academic curriculum, designing laboratories, and purchasing equipment. "Family companies" is a system that is mutually beneficial to both company and university, by forging a family-like close relationship between the two. It is a prime example, underlining the importance of the partnership. Korea Polytechnic University has already established a cooperative network for industry-academia with about 3,400 "family companies," as of early this month, marking the highest number of networks among universities nationwide. With the advantage that KPU is the only university located in a commercial area, this system has successfully built a flexible and continuously cooperative structure that has been acclaimed as a role model, one which can lead in the innovation of the competitive power of small and medium companies. The family companies system maintains that 20 companies, on average, are under control by one professor in the school. Another aspect that we need to take a closer look at is that all the lessons of the university put priorities on helping students gain deeper insight into practicality and applicable expertise in the industry, rather than theoretical lessons. Therefore, students find it easy to adjust themselves to the completely new environment in the workplace. That is because KPU has been striving to cultivate industry-friendly students, by understanding the demands of small and mid-sized companies facing the chronic technological labor shortage. The university serves to get rid of the inconveniences that the companies are confronted with in retraining students into a skillful labor force. In particular, approximately 90% of the total workers are reported to move into small and mid-sized companies. The students are highly welcomed by companies, now that they can be put into the workforce without exhaustive training. In particular, KPU is actively engaged in encouraging industryacademia cooperation by facilitating the professor achievements review system. Above all, full-time professors have considerable accumulated experiences in the industry after gaining their doctoral degree. They serve as a bridge, linking the companies' demands to students' career. It is widely considered that Korea Polytechnic University faces a need to seek measures to develop the existing industry-academia cooperation model in a constructive and sound manner, after undergoing the rational reviewing process. In particular, it is of great importance to review and analyze the Technology and Innovation Park (TIP) model, a new win-win model that companies and university have made concerted efforts to develop over the last one year. This year marks the first anniversary of the founding of the TIP model, where companies, university, and students gather to carry out all the activities education, research and development, and life - in one place. The TIP building is fully equipped with an engineering house, a dormitory, and conveniences facilities, which are designed to further promote the support for professors and entrepreneurial researchers as well as students. Korea Polytechnic University fully realizes that it is even more important how it works in the next 10 years than during its proud first decade. In this regard, the university now renews its resolution to concentrate all its energy on mobilizing local enterprises to join forces to create an infrastructure for regional reform through its Engineering House. It will, thereby, be able to enrich the national economy and make a leap to become a model institution for Northeast Asian industry. Korea Polytechnic University has achieved remarkable results, by marking qualitative and quantitative growth over the last decade, and laid a firm foundation for facilitating the university's development, by creating its unique brand as Korea's leading university in terms of the industry-academia cooperation. KPU proclaimed the KPU Vision 2020, a blueprint for the university's mid- and long-term development designed to cultivate the globally competitive engineers at the 10th anniversary ceremony held last December. In particular, KPU plans to create its second campus of 330580m2 by harmonizing research and development facilities with production lines at the Shihwa Multi Techno Valley, known as the Shihwa MTV, a high-tech, complex new city. As Korea's only authentic polytechnic university, Korea Polytechnic University will continue to create new values for the future of Korean industry and lead the nation to a new era of greater prosperity. Just as Stanford University lies at the heart of Silicon Valley, Korea Polytechnic University is nestled amid Korea's major industrial parks. Thus, the university is building a regional reform system, linking academia and industry to perform at the heart of the Northeast Asian industrial network. KHS KOREA IT TIMES March 2008 _ 4 9 Congratulations Local Government on the inauguration of the 17th President Lee Myung-bak Busan Metropolitan Government Vows to Usher in a New Era A Vision to Promote the Region’s Future Development T he Busan Metropolitan Government proclaimed a "new era to restore the local economy," and presented ten visions needed to promote the region's future development, among various impending issues facing Busan. It is also committed to step into a higher plane towards the achievement of its goal to become the world's leading city. In this regard, the government intends to carry out its plans, depending on the regional blocs of the city, for the effective implementation of the initiatives. First, it aims to provide more sites to the industrial complex located in the western bloc of Busan, and create the "Gangseo high-tech canal and logistics industrial city," expecting to serve as a driving force for the city's future growth. Busan will also take procedural steps to secure additional sites for the Busan New Port and distriparks, and establish core infrastructures to develop Busan as a hub of Northeast Asia. At the same time, it also plans to complete construction work on a new airport in the southern part of Busan at the earliest possible date. The government also said that Busan would drive forward with urban rehabilitation projects - such as the North Port Re-development Project and installment of the KTX subterranean line. It will also be actively engaged in promoting the formation of the Busan civil park, which came to a standstill, due to conflicting opinions between Korean and U.S. governments surrounding a environmental pollution examination. The Busan government also unveiled its pledge to undergo administrative procedures, including construction design, for the comprehensive development of the Moonhyun Financial Complex, within this year. As part of its efforts, the city will construct a tourism and convention cluster by developing the East Busan tourism complex and the Haewoondae tourism resort, and the expanding of the BEXCO facilities in the eastern part of Busan. Busan is also starting construction work on the image center and image fitting facilities, which will make up the city's film and image town. This matches with the city's fame for Asia's premium film festival, the Busan International Film Festival. At the same time, the government will expand the metropolitan transportation network in the southeastern part of Busan by building a beltway at the outskirts of the city, expanding the Nakdong Great Bridge, and conducting projects for the installment of a double track line for the Donghae Southern Line and Gyeongjeon Line. It will also spare no effort to gain official government recognition, as it announced its bid for the 2020 Summer Olympic Games, within this year. In particular, the new government puts its highest priority on becoming one of the world's top seven economic powers, with a national per capita income of 40,000 dollars. In this regard, innovative changes are expected to come throughout all sectors of society, resulting in numerous economic policies designed to revive the national economy - such as the deregulation and creation of a investment-friendly environment. Additionally, Busan will strengthen its social welfare policies designed for low-income people with its ultimate aim of allowing people to live rich and comfortable lives. It will also center its attention on creating a comfortable city where people can enjoy their lives, by forming a citizen-oriented transportation environment and managing urban maintenance in an environmentally- friendly manner. Creative Leader in Export Credit Korea Eximbank No doubt, Busan is one of Korea's greatest tourist attractions with an excellent, business-friendly environment. The Busan Metropolitan Government will make every effort to create the "Marine Capital of Northeast Asia." It is Busan’s sincere hope that it will emerge as a leading global city, where global companies, logistics, talented people, and tourists want to come. KHS 5 0 _ March 2008 KOREA IT TIMES www.koreaexim.go.kr Contribution O n January 1, 2008, the Ministry of National Defense issued an alert warning about hacking attacks from Ko Ki-wan, a senior reporter overseas on computers that with the Korea Economic Daily belong to individual soldiers. It was uncommon indeed that the Ministry responded like that on the first day of the year. The Ministry explained that it found some hackers based on a third country logging on and taking out confidential files. The path the hackers took was sending e-mails to soldiers. The name of the e-mails was "An Update on North Korean Forces." When a soldier opens the eye-catching e-mail, hackers can immediately have accesses to the internal computer networks of the Ministry where top military secrets are kept. Later that day, the finger of blame was pointed at China, but this was not confirmed. Although alerts failed to draw a great deal of attention amid the New Year celebrations, hacking watchdogs emphasized the uncommon situation should be dealt seriously in that military authorities admitted foreign hackers tried to break into the networks, announcing alerts hurridly, even on the first day of the year, and that the hacking was done by a "third country", not by a single individual. If a third country is involved in the hacking drama, it can possibly be translated as a new form of war on cyber network If it is a cyber Cold War, Mcafee, the biggest computer security company based on U.S.A., may have a property rights on the introduction of such a war. Mcafee issued its ambitious cyber crime report in November last year in which the concept of cyber war was included. It warned in the report that hackers sponsored by governments across the world were believed to attack, on pur- 5 2 _ March 2008 KOREA IT TIMES pose, the computer networks in companies, military organization, and foreign governments to steal valuable information. Mcafee reached a conclusion that the cold war between the U.S.A. and the Soviet Union was actually replaced by a new version of cyber Cold War. The difference between these two cold wars, it put, is that there is no ideology, no geographical boundaries, worse than that, no days and nights. Finally, it declared that the a cyber Cold War had broken out. Evidences seem to be clear to prove the declaration. Estonia in Europe experienced in April last year "Die-hard 4.0," an American movie where all computer networks were conquered and controlled by hackers. Two months later, the Pentagon was under attack by hackers. The Foreign Policy, a magazine on foreign diplomacy, pointed out that the news of the year readers missed in 2007 would be the beginning of the cyber Cold War and declared that 2007 was the first year of the war. The preying lions roaring for in the jungle of war were the countries well-advanced in Internet, like South Korea, who tend to use it rather than to to protect themselves from anti-security attempts. Companies and governmental organizations who ignore security will be torn to death digitally. According to the National Information and Security department, or NIS, the number of hacking attempts against the Korean government networks amounts to 100 million cases a day. We could see just how serious it was on the first day of the year when Defense Ministry was on alert. So, which countries would be on the lists of "war criminals" in this new cold war? Watchdogs do not hesitate to point fingers at China, North Korea, Russia, USA, and South Korea, and so forth. Those countries are evaluated to have high level of equipment, networks, manpower, money and moreover, the reason to campaign in this covert war. The Estonians learnt their lesson the hard way, allegedly at the hands of Russia. The April disaster that happened in Estonia shocked the nation politically and economically. The Baltic country was devastated by a hacking attack. Internet networks of government organizations, the media, financial companies malfunctioned for three weeks, the worst ever incident in the history of hacking. Estonia had no choice but to bow to the DDoS (Denials of Service) attacks which paralyzes the networks by inputting a level of traffic that is too much for servers to cope with. Estonia suspected that Russia was behind it, pointing out that the attack was made right after the sculpture of the deceased Russian soldiers stationed in the capital city, Tallinn, were moved on by the Estonian government. The Minister of Information and Communication made it public claims that the Russian government did it to destroy their society. But Kremlin spokesmen denied there was any truth in Estonia's claims. After the Estonia-Russia conflict, similar cyber attacks followed. In August 2007, prime minister's office, and three ministries in Germany had to investigate cyber attackers. Germany found that some spy programs had been installed to transmit German information to Lanzhou, China every day. The German government blamed China, saying China desperately needed information on prime-minister Angela Merkel's announcements to be unpacked during her visit to China. The Chinese authorities rebuked the claim. Two months before the German allegation, the Pentagon was attacked by cyber spies. Some computer systems and e-mails of assistants to the Defense Minister were the targets. The Defense Minister, exceptionally, came out and admitted that the attacks had been very successful. The Ministry also cast a suspicious eye at China. But tit-for-tat attacks are still going on, surrounding the conflicts among the super powers. What is more serious is that the three cases are the tip of the iceberg. 99 percent of what happened in cyber cold war tends to be unknown and to remain confidential because nobody can identify the hackers. An expert on NATO said that some countries have no ability to trace back the hackers and to install firewalls against the attacks. Mcafee believes that just about everybody is hacking everybody. South Korea is no exception. According to the Ministry of Information and Communication, 7,588 cases of hacking were recorded in 2007, an increase of 77 percent compared to 2006. The attacks were mainly campaigned on such ministries of Foreign Affairs and Commerce, Unification, and Government Administration and Home Affairs. An official from the NIS confessed that South Korea is struggling to defend itself from the cyber bombings coming from outside. Over the past ten years, relations between North and South Korea have been improving, with a mood of reconciliation in the air. But on the cyber frontline they have exchanged fire. It is likely that off-line peace is one thing, but on-line war is another. According to a reliable source, North Korea has been launching cyber attacks since 2004 when South Korean military authorities confirmed the acts of North Korea. The access Point on the Internet was from China, but South Korean agencies claimed that North Korea did it because North Korea has no national domain and bought some Internet Protocol (IP) in China. For two months beginning in April, 314 computers in the National Assembly, Nuclear Atomic Research, Defense Research Center, Airforce University, were exposed to the clicks of hackers. Song Young-keun of Defense Security Command reported in the National Assembly that North Korea had organized a hacking troop to attack South Korea. An estimated 600 cyber warriors are burning the midnight oil to get access to information on Korea, Japan, and other enemies. They are all experts who were evaluated as "geniuses" on computers in schools across North Korea. Sources said that North Korea is operating a secure facility in some place in China to launch cyber attack against South Korea. The North Korea Computer Center (KCC) in Pyongyang, the capital city, controls all cyber activities in North Korea. What is ironical is that underdeveloped countries in Africa without any advanced computer system are the strongest countries against cyber attacks. As long as one country is connected along with others on Internet Protocols, it is destined to be vulnerable to cyber attacks, especially to such hacking tools as DDoSes, Psishing scams, and BotNets. When a company gets contaminated with DDoS, the system shuts down. Pshishing is a malicious, harmful webpage that tries to make people click on it. When users click on icons on it, their information will be transmitted automatically to their attackers. In the cyber Cold War, nobody knows who their attacker is. It is certain that no casualties and dead bodies are reported in the war, but the damage is very severe indeed. In order to defend your country from the unexpected defeat perfectly, it is recommended to demolish all of your computerized networks. And can anyone do that? KKW ([email protected]) KOREA IT TIMES March 2008 _ 5 3 Interview Turkey Turkish-Korean relations over the years The Changing Face Of Korea in Turkey Turkey-South Korea relations date back to the war in 1950-53. As a NATO member, Turkey sent three brigades to contribute to South Korea s struggle. Following the war years, both countries recognized each other in 1957 and kicked off political relations. Over the last 50 years, the economy of South Korea has improved significantly. At the end of the war in 1953, its national income was less than even many African countries. Then per capita income was only 70 USD in Korea and 144 USD in Turkey. When we look at today's figures, it is 4,000 USD in Turkey, but 15,000 USD in Korea. The trade and economic relations between Turkey and Korea registered a considerable increase in the late 1980s. As Turkey has mainly imported industrialized goods, South Korean companies made big investment in Turkish market, especially in the automotive sector. As Turkey makes its mark on the International stage, we take a closer look at Korean-Turkish relations in 2008. By Dondu Sarisiik Kibar thinks trade opportunities between Korea and Turkey will continue to develop outh Korea was a fairytale country only 15 years ago for Turkish children, whose grandfathers served in the military with the NATO effort in the Korean War. S But rather than those black and white war memories, Korea today means LG plasma TVs, Samsung mobile phones and Hyundai automobiles in Turkey. Ali Kibar is one of the first businessmen who opened the doors for Korea-Turkey joint investments. Now, he is the Co-Chairman of the Turkish-Korean Business Council. KITT(Korea IT Times): How do you evaluate Turkey-Korea trade relations? What is the current volume? Ali Kibar: Both countries buy and sell goods from each other. However, when we compare import and export figures, we can see Turkish exporters are a way behind their Korean counterparts. Just as an example, the Turkey-Korea export rate is was 0. 02% in 2005. It slightly increased to 0. 04% in 2006, but decreased to 0.03% in 2007. There are 51 Korea-based firms and 88 Turkish-Korean joint investments in the fields of IT, automobiles, electronic, tourism, industry and mining. Hyundai made the biggest South Korean investment in a partnership 5 4 _ March 2008 KOREA IT TIMES with Kibar Holding, at cost of 230 million USD in 1997. KITT: How much does IT sector consist of this amount? AK: The trade volume is around 4,521.1 million USD according to 2007 official figures. IT makes up around 18% of this amount. KITT: Looking at the profile of Korean IT companies, operational in Turkey, how do they against their rivals - Sony, Fuji and so on in the Turkish market?) AK: Korean companies had to cut prices in order to survive against their rivals in Turkish market since they had a low-quality profile 15-20 years ago. To sell cheaper products was the only way to introduce themselves to consumers here. The investment in R&D and product quality has turned the market around and companies have started selling at higher prices. They even sell some products at higher prices than their Japanese counterparts today. KITT: What kind of investments can you envisage for 2008? Will there be any new Korean business players in Turkey?) AK: I think we will see new Korean investments in 2008. I know Hyosung will invest in raw textile goods and products with polyester. Rotem will be here for transportation and railways. Hyundai will do more in automotive and rustproof metal sheet. There will be additional names, too. KITT: What events are there in your agenda to conduct in seeking new cooperation opportunities? AK: As the Turkish - Korean Business Council, we are planning to carry out a series of events and mutual visits to reach higher trade cooperation. Two meetings - one in Korea and one in Turkey - are planned for the future. During the meetings, we will look for new cooperation opportunities, evaluate trade volume situation and discuss what kind of products Turkey can provide for Korea. The priority to boost bilateral trade and economic relations is to support Korean investments in Turkey. Not only big industrial ones, it is also important to provide middle-sized investors with incentives. It is a big advantage that South Korean companies see Turkey a central base to reach all countries in the region. What is the Turkish-Korean Business Council? Turkish-Korean Business Council was established in 1989 under the umbrella of Foreign Economic Board (DEIK) and the Korea's Chamber of Trade and Industry (KCTI). To date, the council has organized eleven meetings to boost bilateral relations between two countries as well as managed the high level attendance by political leaders to eliminate the difficulties that Korean and Turkish businessmen face up. The 8th meeting took place during Turkish Prime Minister Tayyip Erdogan s visit to Seoul in February 2004. South Korean President Roh Moo-Hyun was present at the 10th meeting in April 2005 in Istanbul, too. The latest meeting happened on September 5 2007, in Istanbul. As a result of the cooperation between DEIK and KCTI, a number of Korean companies invested in Turkey and also based joint investments with Turkish partners in Iraq. Korean Interest in Turkey: SK Telecom is interested in Turkish Telecom, which is included in Turkey's privatization portfolio. The Korean firm has also expressed interest in the GSM (global system for mobile communications) operator Telsim. Korean Air has started flights between Incheon and Istanbul. Netpia, a Korean IT company, has decided to introduce next-generation Internet technology in Turkey that will allow the use of special characters in the Turkish alphabet and improve efficiency in e-commerce and e-government. The Korea Agency for Digital Opportunity and Promotion (KADO) and the Turkish Informatics Foundation (TBV) signed a protocol for cooperation in information and communication technologies. The Export-Import Bank of Korea (KEXIM) signed credit agreements with two major Turkish banks, Yapi Kredi and Is Bankasi. According to these agreements, credit agreements with terms varying between two and five years will be opened to Turkish companies importing goods and services from Korea. The Korean Institute of Export Insurance opened credits to two major Turkish industrial groups, Koc and Zorlu. Turkey and Korea have discussed cooperation prospects in the defense industry, tourism, maritime transportation, and cooperation in third party countries (especially in the construction sector in Iraq). KOREA IT TIMES March 2008 _ 5 5 Contribution Time to Go Back to Basics Some companies need to get away from the drawing board and focus on the bigger picture. If not, they risk alienating the customers who pay their bills, says Kim Eun-sil want to show you something really funny. Come here," said my sister. She was laughing her head off when she called me into her room. "I She was at her computer, watching an online video clip of JoA, a new "cyber actress" - a computer-generated character which can perform at the request of the company that designed her. The "actress" was dancing to a Korean pop song that has become about as famous as the national anthem - "Tell Me," by teen group Wondergirls. I think the idea was that she was supposed to be provocative, but it actually made for some pretty painful viewing; it was frightening stuff. It was supposed to look sexy, but it looked more like something from a horror film. Actually JoA was not even "she" for me, more like some kind of "it." The company which created her were showing off their high technology-motion-capture capabilies. They seemed proud of how realistic her clothes looked, and how realistic her hair was - according to them, their biggest achievement. JoA was "ordered" to dance with an expressionless face so as to highlight how good her hair, clothes and movement looked. Ironically, their choice, one which they took in order to make her look better, caused a problem that I had never considered could be a problem in a sprite created by IT. The company wanted to create a cyber actress who had something in common with humans. But what instilled this fear in me was the fact that she never blinked once in the whole video. It was a blink that JoA needed in order to be human, not brilliant hair or realistic clothes. It seems such a tiny thing that might, one that could easily have been forgotten, but that was big mistake because no one can live without blinking. devices with flashy features and advanced functions, but although these gadgets look great, are well designed and must sound fantastic in a boardroom meeting, they often ignore or forget about what the eventual users are buying them for. Mobile phones are our best electronic friends, they are closer to us than any other thing else - until it their batteries run out, that is. They become useless lumps of metal as soon as the power goes off, however wonderful their functions may be. Mobiles pick up new features every day, but it seems mobile makers pay little attention to how long the batteries on their marvelous products last. When I was studying English in a language school, my classmates had a lot of fun because of our electronic dictionaries. We called them 'Konglish machines' because they were full of incorrect and poorly-translated expressions. It was funny at the time, but in reality it is a tragedy for Korean students; they spend time and money on expensive dictionaries to learn English but most electronic dictionaries are not good enough no matter how great functions they have. An electronic dictionary needs to be first and foremost a 'dictionary', not a five gigabyte MP3 player with ultra fine LCD display. The electronics giants warring over which format was better - Blu-ray Disc or HD DVD, might have done better to remember that audiences are much more concerned by what happens at the end of the movie they are watching than by how high-quality the images on their screens are. If the JoA is reading this, she might worry herself sick but the answer is simple, and even boring. Just blink. If companies could just focus a little more on the basics, they might end up spreading a little more of that precious commodity - customer satisfaction. It was another unfortunate example of developers ignoring the basics and focusing on tiny, intricate details. But JoA is not alone in the IT world. Koreans are surrounded by electronic 5 6 _ March 2008 KOREA IT TIMES KOREA IT TIMES March 2008 _ 5 7 Exhibition KOTRA Smaller Businesses Hope to Reap CeBIT Benefits The IT world is growing more and more competitive, but it is not the big hitters who need to step up their game - Smaller companies who must carry the torch for the sake of the Korean economy. people in the business to be the world's biggest IT fair. It will be held from the 4th to the 9th of March in 2008, and Korean companies know that this is their big chance to show the world what they can do. Ham Jeong-oh, Director General of the IT and Electronics Industry and marketing team at KOTRA t is something that never fails to amaze non-Koreans - Koreans abroad are as happy when they see the Samsung logo as when they hear their own national anthem. I Having big chaebols, super-companies like Hyundai, LG and Samsung hailing from these shores is certainly something to be proud of for a country like Korea - a country than only industrialized in the latter part of last century. However, resting on the laurels of the big boys may not be a good idea, according to experts in the fields of investment. Actually, it is the small fry that really count when it comes to the building blocks of the Korean economy. If the small and medium sized companies fail to globalize and turn into the next LG, Korea runs the risk of becoming also-rans in the Asian race for the export market. The Centre of Office and Information Technology exhibition, the CeBIT show, is held every year in Hannover, Germany, and is considered by most 5 8 _ March 2008 KOREA IT TIMES CeBIT 2008 is expected to be the biggest fair of its kind, and the Korea Trade Investment Promotion Agency, or KOTRA, has high hopes for the CeBIT this year. KOTRA is officially a non-profit organization, and receives funding from the Korean government. It attempts to help Korean companies by introducing overseas buyers to the most appropriate business partners in Korea through an extensive network of contacts and advisory services. Ham Jeong-oh is the Director General of the IT and Electronics Industry and marketing team at KOTRA. He says that CeBIT can help smaller Korean companies put themselves, and the country, on the map. He says, "Most Korean companies at CeBIT have their own unique technologies, targeted at a niche market. As larger companies tend to dominate the big markets, niches become more and more important for smaller companies. Bluetooth and Home Networks are examples of this, and there are a lot of Korean companies working with things like this at CeBIT 2008. It is harder for bigger companies to target niches, so that is where smaller companies come in." But Korea is not alone in having lots of promising small companies - the rest of Asia is also bristling with young, innovative IT projects eager to get off the ground. And with countries like China able to boast cheaper labor costs, many believe that it will be hard for Korea to compete against companies that can be more competitive than them when it comes to prices. However, Ham says smaller companies need to rethink their international strategies if they want to succeed. He has worked in China, and believes Korean companies need to shift their focus away from China. He says, "China has always been the big rival for Korea, but we have to consign that ideology to the past now. People here used to look down on Chinese products, thinking they were cheap and inferior, but quality has radically improved in recent years." The Chinese economic miracle has meant a seismic shift in the way Korean companies need do business, according to Ham. "The price war days have gone," he says, "Korea now needs to recognize that when it comes to IT, its natural competitors are not China and Vietnam, but the USA and Japan. We need to focus on core technologies, and time and effort needs to keep on going into research and development. It's time to develop or die for many businesses." However, just being good at what they do is not enough for Korean company, thinks Ham. He says business strate- gies need to be well thought-out if companies are to succeed in the global market. "Improving quality and lowering prices are obviously things that make companies more competitive wherever they are, but Korean smaller businesses need to realize the need for aggressive marketing abroad. That is something that KOTRA can help with - we have 93 offices worldwide, and can offer a vast network of support." However, it is not all doom and gloom for Korean companies, according to Ham. He believes that companies here do have a certain edge over foreign enterprises, especially when it comes to the famous Korean work ethic. Says Ham, "Koreans have a unique characteristic - they are obsessed with the idea of doing their utmost at all times. Our sense of diligence and hard work is incomparable with most other countries. Our business style is unique. There are no excuses for things that have not been done - just results." Indeed, Ham thinks this is a special talent that other nations cannot boast. He adds, " Koreans take pride in their work, and this sense of integrity makes them attractive business partners for foreign buyers and investors." And the CeBIT 2008 exhibition will allow plenty of opportunities for the Korean participants to show off their worth. KOTRA have put together a special DVD for the Korean companies at the fair, and have set up a scheme called Online Business Partnering (OBP). OBP allows companies and potential buyers to browse through companies' goods and to allow conversation between the two parties before the fair has even begun, thus potentially saving both groups a lot of time when they are at CeBIT. There will be four halls of Korean exhibitors at CeBIT, and a wellequipped presentation area set up by KOTRA for smaller businesses who cannot display the full value of their products from their booths. With all this support, Korean businesses are hoping to do well from CeBIT 2008 as they venture into the difficult times ahead in an IT industry that is becoming more competitive by the day. TA Some of the eye-catching products on display from the Korean companies at CeBIT 2008 "Nouveau" Dimming Pattern Switch (NV0404) The Nouveau’s sophisticated design is introduced by the JoongAng Control, who has been in business for 20 years and have four utility models and two patents. The "Nouveau" makes it possible to sense and control lighting and illumination scene and temperature adjustment with a single switch and the control circuits are consisted of on/off four circuits and dimming four circuits. The home environment can be controlled by home network systems and telephone, using a RS-485 communication system. Stereo Bluetooth Headset (GBH-S100) This headset, the first of its kind in the world will be displayed by GT Telecom. Not only does it have a multi-point function with a connection up to three devices: a cell phone, a MP3 player and a computer, it also has improved sound quality with special technology that equips noise suppression and echo cancellation. In addition, its maximum stand by time is 60 days in an ultra power save mode. It folds when there is an incoming call, and it also can protect users from making calls by accident with an auto key lock. "CheckTap" Turning off a computer, a monitor, a printer, a scanner, a speaker, a fan and a heater seperatly is not needed with this smart device, "CheckTap" which is introduced by the Incasolution. It senses real-time using of a computer, and in case all electronics are turned on but not used, it cuts off the relevant instrument automatically. This automatic control system of energy saving takes pride bringing about a 50% plus power saving, boasting fire risk prevention, device protection and environmental education. KOREA IT TIMES March 2008 _ 5 9 In-depth Report How How is is IT IT transforming transforming Korea? Korea? The fifth of a tenpart series n Korea, the digital camera is called as Dica, for short. Until five years ago, Dica was single. All it really cared about was upgrading itself constantly by adapting everything it could possibly do to improve its image quality and its zooming ability. I Four years ago, Dica went out on a first date with a camcorder and grabbed full attention from the publicity. A year later, it changed its partner to an MP3 player, but it was soon found itself together with a Portable Multimedia Player (PMP). The second generation digital cameras and cellular phones are thinking of moving in together, calling themselves DicaPhone, meaning Digital Camera Phone. So, how are the digital camera and its changing partners changing Korea? Koreans have become more familiar with the visual media than printed media over the last five years. Studies show that people today are more in favor of being entertained by images and video than reading. The National Statistical Office analyzed that the workers in the city area are spending 34.9% on entertainment. On the other hand, the expense rate on books and magazines stopped at 5.1%. Now that Koreas' full attention is given to visual media, digital cameras have turned into a ubiquitous item. This was proven by 88.9% increase in production of digital electronics including cameras. With digital cameras everywhere, everybody can now be a field reporter. We call these people "citizen reporters". "Dog poo" girl is a good example of this. turning lens to aid Selca, the Korean way of saying "self portrait camera". All sorts of pictures are uploaded to blogs, mini-homepages, websites, and portals for different purposes. Since these photos are open for everyone to see online, a magic wand that gives a little touch to a photo is needed. Here, the fairy is Photoshop. People who are taking the most advantage from Photoshop are celebrities. Before, a model had to cover a facial imperfection through make-up only. Now, a little touch through Photoshop can erase the freckles, brighten skin tone, and reduces wrinkles. Digital cameras have transformed a typical person to someone who can make difference in community and beautified uglies to pretties. If Digital Single-lens Reflex Cameras (DSLR) were a hot issue last year, Premium Convergence Digital Cameras that are added with various features to the compact digital cameras are the new rising stars this year. DSLR's picture quality is better than that of compact cameras, but its gigantic size and the costly price has made buyers hesitate before parting with their money. first company to produce the cameras with MP3 and PMP functions. The concept of convergence this year is not only adding more features to the previous version, but it also completed its added fuction. Some products are coming with the touch screen LCD, while Kodak, Nikon, and Sony promoted digital cameras with wireless lan that connects to the PC without any cables. The latest model from Sony even allows the wireless transfer of data from one camera to another as long as they are from the same brand. A strengthened convergence function has increased the LCD size and memory capacity. The new LCD screen enlarged its size from 2 inch screen to 3 and 3.5 inch screen. The internal memory was previously 10 MB, but it is now up to 512 MB. Those who change their cameras in 2008 with the newest model I7 from Samsung Techwin will be able to travel overseas with no travel guides. This slim camera contains 4500 travel information of 30 countries in 512MB internal memory. Sony Cybershot G1 2008 users will be able to share joy with the pictures. With the Wi-Fi, four sony cameras can transfer data to each other. On top of 3.5 inch LCD screen and 2 GB internal memory, MP3 player and photo album searching feature are added to provide the joy of watching and listening. A couple of years ago, a woman was taking the subway with her puppy and the puppy happened to relieve itself on the subway seat. The woman left it as it was and got out of the subway. Moreover, buyers want to be able to occasionally use the video feature on compact digital cameras that DSLR don't have as function. Samsung Techwin, Canon, Nikon, and Sony this year have improved the compact digital cameras' picture quality to DSLR standard with unique design and special features to compete in the market. The anonymous citizen reporter took photos of it with a digital camera phones and put it online. Thousands of comments were made and soon enough, an anonymous citizen's report became the hottest news around. Since the demand of digital cameras was the highest in the year 2000 with its highest record in sales, companies are targeting those who purchased cameras in 2000 to buy new ones this year. Nikon Coolpix P5000 will be good for those who travel or hike often. Its users will be able to take high quality photos with 10 megapixel 1/1.8-inch CCD without having to worry about taking blurry photos due to mild vibration. Lens shift VR and ISO 64-1600 reduces the vibration to take a stable picture. Within a few weeks, a new law was made to forbid pets on the subway. Photography is no longer a simple hobby, it gives people the power to change the law and change the society. These brand new digital cameras with upgraded features are not as pricy as the last year. Samsung Techwin is currently the number one compact digital camera selling company. In second place is Canon Korea followed by Sony Korea. Nikon, Fuji Film, and Olympus are highly competing each other to bit the record. Samsung Techwin was the Best Shot Selector (BSS) function identifies and saves the sharpest image automatically from ten sequential shots, and Face-priority AF will satisfy those who loves to take self portrait photos. Dicas and DicaPhones are now the pets that people can carry around everywhere. On the street, in restaurants, and in coffee shops, at least one or two people are taking their own self portraits using their digital cameras or digital camera phones. Digital cameras and their changing partners have a multitude of functions. Sometimes they act as social activists. At other times they are reporters. They even can be considered as plastic surgeons. When Sky and Samsung made a cellular phone with a camera lens that could turn 360 degrees, its users were able to take a look at themselves on the phone screen as they took a self portrait. New phones come with the lenses both on the front and back. Modern digital cameras and digital camera phones' all-inone entertainment systems are the future. These rather than dogs (especially those that go to the toilet on subways) are rapidly becoming man's best friend. CGE Even digital cameras like the Nikon S4 have a 360 degreeSource: Korean Press Association 6 0 _ March 2008 KOREA IT TIMES KOREA IT TIMES March 2008 _ 6 1 In-depth Report Design At Any Cost? With the likes of Armani and Prada starting to design mobile phones and BMW and Ferrari putting their names to flashy new laptops, it seems technology and expensive design now go hand in hand. But does better design mean we will end up with an inferior product? Cho Eun-jung investigates. ere are some words you don't hear much any more: "Who cares what it looks like as long as it works properly?" H We don't hear them because design has become a buzzword in modern society. Especially in all things technical, it used to be that practicality was the overriding concern, with the design of a product of little consequence. The Design Council, a design database in the United Kingdom, found in a survey that 25% of manufacturing companies now rate design as a "crucial" factor in their business. The same report also found that even in the financial sector, 91% of rapidly growing businesses in the UK said that design was indispensable. Chris Bewick is a British web-based designer. He fronts Stompfrog, a company who have designed web pages for www.yell.com, the British Yellow Pages' website. Bewick believes it is easy to forget how important design is in everyday life. He says, "Everything is designed, I think people often forget that. The cup that you drink your coffee from in the morning has at some point been designed by someone, why is the handle that shape and why is it that colour? It is definitely not a mistake." Park Jung-yeon is also a designer. She works at Hankook Reearch, the largest marketing research company in Korea. Park believes that companies that invest in good design can reap the financial rewards. She says, "iRiver are Korea's biggest-selling mp3 player producers at the moment. But they caught the attention of customers. They have done this through sensible, well-thought out designs that have cap- 6 2 _ March 2008 KOREA IT TIMES tured the imaginations of buyers - like the Mickey Mouse mp3 and Prism mp3 players." However, with the sheer amount of companies on the market, how a product is designed is becoming more and more important. Take mobile phones, for example. Fifteen years ago, an ugly brick-shaped lump of metal was an acceptable design to house the components that made up a portable telephone. But in Today's market, most mobiles have very similar functions, and an increasing number of customers are paying scant interest to the features of individual handsets. A few years ago, a Russian company called Ancort made the headlines around the World when they released a $1.3 million phone, designed by the luxury accessories maker Peter Aloisson. This phone was encrusted with diamonds, rose and the sides were inlaid with fine wood. It represents the ultimate triumph of design over functionality in mobile phones - a very expensive status symbol indeed. Though the Ancort mobile was aimed at society's elite, other mobile makers on the market are now starting to spend big on design. LG have broken ground with their Prada and Chocolate phones, while Nokia have set up NokiaDesign to ensure they stay ahead of the game. The Finnish mobile makers have brought all sorts of people psychologists, industrial designers, materials experts, and anthropologists - into the NokiaDesign group. They claim, "We use human-behavioral research to think about how the future might turn out." In an interview with Business Week magazine, Jan Chipcase of the Nokia research team said that their research has taken them to places as far-flung as African villages in their quest for better design. He said, "We're thinking about how we could redesign the mobile phone and the communication experience to be more suitable for sharing." businesses in the pocket. He urges companies, "Employ a designer! Decide on a budget for your website and find the best designer you can for your money. Just because your receptionist's son got an A in his last HTML homework, it doesn't mean he can build you a website. Bad design costs more than good design." But design in IT is by no means limited to mobile phones. Other electrical devices also need design - luxury carmakers Ferrari and Lamborghini have been drafted in to help laptop computer designers wow buyers with flashy casing. Mp3 players have taken their cue from Apple's immensely popular iPod, whose design has won worldwide acclaim. Hwang Jin-a is a designer at Insmobile, Korean mobile phone software developers. She thinks that Korea needs to learn valuable lessons from overseas designers. She thinks that while Korean designers are good at picking up on the latest trends, it is they who need to be creating these trends, instead of simply following them. And elsewhere in the IT world, design, as an industry, has also skyrocketed - top web designers can earn upwards of $80,000 a year. Says Hwang, "Foreign designers are often more creative and original than people here. They are always trying to think of something new. We need to learn from them about thinking outside the box, and about how to be more receptive to ideas." In short, the modern electronics industry relies as much on designers as it does on techy types. Sitting on the shelf, what a product looks like is probably what will make a buyer pick it and not its competitor, and most electronics companies recognize this fact, which is why they are prepared to splash the cash on design and design research. The job of Web Designer is a very recently-created post, but it has become a profession practiced by tens of thousands of people around the World, and Bewick points out that it is not just big flashy sites that need the help of a specialized design pro. He says, "Every website, no matter how bad it looks, has been designed by someone who has probably spent a long time making it look that way. As Internet users become more web-savvy, their expectations change and they are no longer satisfied with flat uninspiring websites. As this user benchmark continues to increase it is more and more important to have an exciting and engaging online brand." But is there a risk that companies will pump too much money into design at the expense of practicalities? If more money is going into design, it is being taken away from somewhere else in a company. Could good design end up taking away from the quality of the end product? Many experts believe that striking a careful balance between content and layout is the key for most Internet-based companies. Bewick says, "Without a usable interface and valuable content an all singing and dancing presentation layer is a waste of time and money. Getting a balance between these three things is the key to a good website. Different websites have different purposes so the balance is some times going to change." Bewick says that neglecting proper design can end up hitting However, Hwang believes that the learning process should be a two-way street. Korean designers have plenty to be proud of, too, according to her. She says, "We are hardworking and faithful. I don't think anyone can top the Koreans when it comes to our untiring spirit." It seems that Korea and design are linked together as if by fate. Hwang argues that design is of urgent importance to countries like Korea. She says, "We must invest more in design. In fact, without design, we are nothing. We don't have oil or gas in this country; we don't have vast manpower resources either. All we have is brains and labour. So we have to be able to export our design ideas in order to survive." It seems that though companies are pouring money into design, often at the expense of product quality, they are only doing so at the bequest of customers. A little black box that can do everything is not good enough for today's consumers - they want little black boxes that look good, too. The Naver of Design? find:Design is a website set up in collaboration with Google. Using the same search algorithms as Google, the site finds web pages with a design theme and files them under categories. For example, if a user types in "aeroplane," the site will display sites that refer to concepts like environmentally-friendly aircraft design, trends in aircraft design and design innovations. KOREA IT TIMES March 2008 _ 6 3 In-depth Report SK, SK, KT KT and and LG LG Telecom Telecom play play StarCraft StarCraft II II Humans (Terrans) struggle for control against alien races Protoss and Zerg. Each faction has its distinctive advantages and drawbacks. SK, KT, and LG Telecom are playing StarCraft in the battle for customers K Telecom and KT have a problem. Their bases are under attack so they are zerging to triumph over each other. In the computer game StarCraft II, the Zerg have rapid build-times and are inexpensive units, making them so well suited for rushing that the term zerg or zerging has entered gaming vocabulary as a synonym for a tactic of "rushing in." S StarCraft, for anyone who does not know what it is, is a computer game hugely popular in Korea, where three "factions" fight it out in space for the control of a planet. 6 4 _ March 2008 KOREA IT TIMES The two leading Korean telecommunication company's zerging started with the newly elected President Lee Myung-bak administration. If the two companies' battlefields were compared to roleplaying game called Lineage where the government interfered with restrictions and gave them the quests, it is now the StarCraft, a real-time strategy game between three different species. If the previous strategies for Protoss KT and Terran SKT were to steal each other's subscribers, their marketing strategy now concentrates on how to not to lose their own subscribers. September 19, 2007, the Terrans, SK Telecom (SKT), took the initiative to start a 50% discounted service for calls between its customers. SKT this year is planning to expand discounted services for calls between family members and its customers. From March 4, 2008, SKT will give discount up to 50% maximum on basic fee and the phone rates for the phone calls made within family members. Moreover, the new converged service will lead up to 10~25% save for the subscribers. A SKT spokesman said, "If government accepts lets take over Hanaro Telecom, we are willing to make converged services that gives up to 10~25% discount when used as package. Frankly, the real competition begins now since it is not only KT who provides converged services." Our converged service will be competitive both in its price and quality." Kim Shin-bae, CEO of SKT, noted that the discount in payment plans this time is something that satisfies its customers, telecom companies, and related businesses. He said, "Through the reduction in excessive marketing and an improvement in effective managing, we will continue to provide a low payment plan." The converged discount service was sent as a quest from the government before, so the telecom companies played their role game, but it did not require zerging. Now that the companies' payment plan no longer needs approval from the government, the competitions between the companies will give nest eggs to subscribers. The Protoss, KT, are also working on their marketing strategy to provide a lower payment plan for its subscribers. The converged communication service pack of five items including phone lines, high-speed Internet service Megapass, Internet TV MegaTV, Internet phone VoIP, and video phone "Show" will give subscribers up to 20% off if used as the package of all 5. On top of the cooperation between the related parties, a strategic cooperation amongst the telecom companies are expected. The companies are required to analyze the pattern of each family's expenditure on communication charges. KT announced its newest converged service a day earlier than SK this month, on February 3. A KT spokesman said, "We are not expecting the subscribers to grow in short time period since we put landline as one of the packaged deal in converged services, but in the long run, the number of converged service subscribers will increase. Those families who spend less than 92000 won on communication fees per month will be able to save more than 20% by using our converged service." But the real attacks are expected to spark its fuse by the end of the year. By the end of the year, subscribers will be able to choose from three telecom companies' Quadruple Play Service (QPS) that converges four communication services. This will eventually develop throughout the years as Pentagon Play Service (PPS) to the Hexagon Play Service (HPS) with five to six converged services. KT's QPS will head toward SK's gateway next month with a QPS of landline, Megapass, MegaTV, and Show. SKT, at the current point, is focusing on increasing the number of soldiers and attacking units by joining forces with Hanaro Telecom. SK's QPS will cover SKT mobile phone, the Hanaro Telecom landline, IPTV high speed Internet as a package service. LG Telecom Group, the Zergs, are rushing to prepare for an upcoming attack. LG Telecom spokesman said, "We are trying to merge LG Telecom, LG Dacom, and LG Powercom to come up with QPS by the end of this year. Although it has been a year since the legal standards were set for converged services for a year, the converged services were reluctant to commercialize. The subscribers found that they did not save as much by using converged services. But converged services are not everything the subscribers are waiting for. Internet and television services are currently signed up to a contract to use for a certain period. The condition of subscription and cancellation should be reexamined by telecom companies. The outcome of this high competition will bring a revolution to both market and consumers. The telecom companies will try their best to satisfy their subscribers by displaying numerous discount plans, but what they are to fundamentally focus on is to keep their customers in house. Instead of using money and effort to steal a customer from the other telecom company, the telecom companies should build a protecting strategy. The number of subscribers who changed their telecom service last year was 8,800,000. If we can imagine that those subscribers had been be paid a $100 subsidy, the marketing expense sprinkled over the market is 880,000,000,000 won. The newest version of StarCraft must be played with the strategies to protect each species' attack unit. Not only should the companies care for how much a subscriber use their phone per month, but they also should consider how long the subscriber's contract is. If the telecom companies give privileges to those who have been using their product for long term period, the moving rate of the subscribers will stabilize. The three telecom companies' zerging with time and expense is moving toward each other's attack units. Their fierce strategies, on the other hand, can only benefit customers' pockets in the long run. CGE KOREA IT TIMES March 2008 _ 6 5 Essay Digital Society The Technophile Brave New World Not To Everyone s Liking Lim Eun-jin, goes to the same English class as Joo. When he is not in the classroom, though, he runs a kalbi jib, a traditional Korean rib restaurant, in Seoul, and is a self-confessed technology addict. Korea might be one of the biggest technological powers in the World, but though some ordinary Koreans can t get enough of the new, others are not too keen. We take a closer look. Indeed, the sight of him at work is quite something to behold. When he is not sitting behind a computer screen, furiously typing instructions into his keyboard, Kim is prowling around the tables or the kitchens, muttering instructions to his staff via a wireless microphone which connects to earpieces all his staff wear as part of their uniform. Lim - “Technology makes life easier.” When life calls for him to be away from the restaurant, Kim still runs a tight ship - via remote desktop from his laptop computer, which allows him access to the network at work. generation gap separates them, but Joo Sun-hee, 40 and Lim Eun-jin, 26, are so different they might have come from different planets. A Though the two met at a language school in Seoul, did the same homework and laughed at the same jokes, their lifestyles speak volumes about the nature of modern Korean life. her distrust for the technological revolution that has swept over her country. The bali high-speed culture of Korea does not need the electrical devices the young here craves for. Children growing up with these machines become impatient, and will turn out to be impatient as adults. I don t have a mobile phone a DVD player or a digital camera, says Joo with a certain hint of pride in her voice. Indeed, this is the great paradox of Korea in 2008; just how do the country s many technophobes and technophiles live in harmony together? At home, her spartan apartment is even devoid of a television. A computer is her one concession to the modern hightech lifestyle, but she appears to use it very infrequently. Joo is a jolly woman, short and with an eternally gleeful countenance. She has devoted her life to fine art, and spends her time teaching people of all ages how to draw and paint. I have difficulty getting the pesky thing to work, she complains, I am forever asking friends to come around to help whenever I try to get something done on it. Lim, meanwhile, is a business-minded young man. His time is taken up with running the family business and post-graduate study. When he is not working or buried in a pile of books, he finds it hard to pull himself away from the latest technological gadget he has laid his hands on. Although it might be difficult to imagine life without modern communication devices and the Internet, Joo seems unbothered by the whole idea. Most young people would panic at the very thought of not being able to use the Internet or their mobile phones for even a day, but Joo has managed this for the best part of a lifetime. The Technophobe Joo says, I think I was born with an innate distrust for machines. I m not interested in how they work or what they do. Even the idea of having a mobile phone is offensive for me. They are forever ringing and beeping for reasons I cannot understand. I find electrical noises shrill and unappealing. Joo - “I’m not interested in machines at all.” 6 6 _ March 2008 KOREA IT TIMES It is difficult for Joo to contain I wouldn t consider myself out of touch, she says, I spend a lot of time with young people, but I ll admit I m lost if they ever start talking technology or if they bring up celebrities that are popular because of the Internet or television. She is, however, taking a few brave steps into uncharted territory of technology. Recently, she bought an mp3 player to listen to audio assignments her English teacher gives her in her language school. However, Joo admits that this is her second audio player. What happened to the first? I threw the stupid thing away. One wonders how much time the new device will be given. In his personal life, too, there is no escape from technology. Kim is a keen snowboarder, and has customized a set of walkie-talkies so that he and his friends can communicate hands-free while making their ways down the slopes at breakneck speeds. I like to integrate technology in pretty much every aspect of life, he says. The fascination with modern technology began for Lim at a very early age, he explains, his eyes lighting up at the memory. My love of all things electronical started when I was 9 years old. I don t really have many memories before I was that age. The young Lim used to rent videos from a local video shop. One day, he watched a movie that he liked so much, he decided he wanted to keep it. I wanted to copy the tape because I didn t have any money to buy a copy of my own, so I borrowed my friend s video player, he says. The boy had no idea how to go about copying from tape to tape, or how to link the two machines together, but after several days of toil, he succeeded in making a copy. It was hard work, he says, But through trial and error, I got there in the end. but the process itself, the exploration and gradual understanding of the technology was the most exciting part for me. That was the origin for me, how I started getting interested in gadgets. Explains Lim, I think I like using electronic goods too much now, perhaps. Every time I get one of these, I can t seem to spend enough time with it, figuring out how to use it properly, to the fullness of its abilities. I am always on the look-out for new electronic goods, because those things help me and people I care about, help make our lives easier to live. That is why people always say I am a high-tech person. But modern technology is no bed of roses for him. His obsession is, by his own admission, verging on the unhealthy. He says, Buying a new piece of technology is a thrill for me, but also a curse. I can t rest until I have understood and mastered its every function. Once I bought a PDA [Personal Digital Assistant], and I ended up not sleeping for three days because of it. I just sat up with the thing all night, battling with the thing, trying to understand exactly how it worked. TA Famous Technophobes The Luddites were a group of textiles makers in 19th Century Britain. They opposed the effects of the Industrial Revolution, which was starting to introduce machinery into the clothesmaking business. Their protests extended to damaging and destroying the textiles machines they thought were threatening their livelihoods. The term Luddite is still used today as a derogatory term for people who are technologically ignorant. The Amish are a group of ultra-religious Christians, who live mainly in America and Canada. They reject modern society as a whole, do not drive cars or use machines, as a rule, using horse and carts and living a mainly agrarian lifestyle. The Amish are especially skeptical about electrical goods, which they fear may cause their close-knit society to break up. Expert , but former UK Prime Minister Tony Blair was a selfconfessed technology-hater, and even went on computer courses when in office, during his ten year stint as British PM. Anarcho-Primitivism is a political movement that advocates a return to tribalistic way of life, with no computers and no technology. The group express distrust for science, which they believe is an unnatural way of understanding the World. There are Anarcho-Primitivist groups in India, Europe, the US and Israel. How to Survive a Robot Uprising is a book by Daniel Wilson, a Robotics PhD student from Carnagie Mellon University in the USA. Although the book is mostly comedic, the writer says it contains serious advice on how humans can protect themselves from machines should they one day decide to take over the World. North Korea s Kim Jong-il may be a self-proclaimed Internet KOREA IT TIMES March 2008 _ 6 7 Spotlight KEPCO Korean Energy Company Powers Up the Philippines Cebu feels the energy rush of a new power station to be jointly built by Korea and the Philippines ebruary 14th is Valentine’s Day for most, but in Cebu, in the Philippines, they were celebrating something altogether different. Work began on a power plant in Cebu with Philippine government officials, Lee Won-geol, the CEO of Korea Electric Power Corporation (KEPCO), Lee Kang-won, the chief of the local subsidiary, and Governor Garcia, of Cebu, all forsaking time with their loved ones for a celebration of a different sort. The Cebu power plant uses a commercial management method, which is first to be developed by KEPCO as an overseas project. The proprietors of this project have direct ownership and management rights, and can sell electric power to local energy boards after the building of the power station, meaning that KEPCO will manage the power plant for 25 years, from 2011 onwards. Bituminous coal, the fuel to be used in the power station, will be supplied by Indonesia under a long-term supply contract with KEPCO. However, after the contract has been finalized, KEPO plans to supply fuel from neighboring nations, connecting the station with resource-development projects that can provide it with coal, uranium and so on. Domestic companies have also participated in the project the construction of the Cebu power plant will be carried out by Philippine companies and the operating system will also be provided domestically. It is expected that this project will generate around $100 million in revenue. F Since KEPHILCO (KEPCO Philippines Corporation) was established in 1995, KEPCO got special mention from the Philippine local officials, although restoration projects for the Malaya power plant come under some intense competition. The rivalry between countries who want to export energy is fierce. However, KEPCO's skills and expertise have seen them through. Therefore, the llijan power plant project is a landmark one KEPCO won the contract against some sharp competition from other countries back in 1996. KEPCO is the Philippines’ second biggest IPP (Independent Power Producer). They produce 12% of the Philippines' 6 8 _ March 2008 KOREA IT TIMES foreign investment project after the EPIRA (Electric Power Industry Reform Act). KEPCO is currently employing approximately 580 managers as well as additional employing up to 980 people a day while the Cebu power plant was being built. Moreover, KEPCO is increasing Philippine know-how through updated machinery and teaching high-tech clean energy management skills. It also earns a lot of respect in the area of recyclable energy, including atomic power. KEPCO's social contribution in the Philippines has been very much active since the beginning of the Philippine electric power project, helping with the support of medical treatment, IT education, and helping local areas out with projects to boost their income. Valentine’s Day meant a day away from husbands and wives, girlfriends and partners for those involved, but for those in the power business in Cebu, Valentine’s Day 2008 was all about the power of Korean-Philippine love. KEJ KEPCO, ranked as most incorruptible public institution The Korean Independent Commission against Corruption has recently announced that KEPCO was ranked the 'least corruptible public company in Korea.' Lee Won-geol, CEO of KEPCO, (2nd from the left), receiving a plaque from Philippine President Arroyo for KEPCO's efforts in the Philippines. entire electric power resources. They do this through 'Project Financing', which can raise financial resources by using the proprietors' capability to secure credit for building projects. The new Cebu project started with an agreement between Korea and the Philippines in June, 2004 based successful talks with Philippine President Arroyo in 2003. KEPCO is trying to become the number one private proprietor in the generation of electric power in the Philippines, with 15% of the entire Philippine energy budget going to them. For this reason, KEPCO is investing in a Naga power plant, and is operating new projects in the Cebu power plant. KEPCO is also running construction power plant projects in the Malaya and Ilijan. KEPCO uses developed management techniques to maximize profits and it is trying to develop relations between two countries and economic conditions with construction of the Philippine electric power infrastructure. Change of Integrity Scores (Graph should be insulted, but no editing needed) It came first in the commission's league table, scoring 9.56 points, and coming top of a 19 companylist. The Commission based their findings on an investigation which tested the integrity of public officials. The main reason for KEPCO's extraordinary increase in integrity scoring is that bribes have been almost eliminated: 4 cases were reported in 2006 and none in 2007. "Latent incorruption", which means providing rapid, kind operation and service to customers, was 0.38 points higher than in 2006. In the year of 2006, it was ranked on the top 5th among 72 related public offices with an increase of 0.48 points, exceeding the average for most public companies. KEPCO believes that these results were caused by Lee Won-geol's strong anti-corruption drive and innovative system reforms against bad entrenched habits. KEPCO showed the worst level of integrity in investigations earlier in the 2000's. They scored only 4.47 in 2002 and 5.80 in 2003. However, the score sharply increased to 8.72 in 2004, a continuous effort to weed out corruption yielded a score of 8.78 in 2005 and 9.08 in 2006. An official at KEPCO said that they planned to reform and improve the systems continuously for improvement of transparent systems, and to progress constant activities against corruption. They intend to do this through incentives, such as voluntary awareness reform, in order to keep up their number one ranking in 2008. Then they finally achieved 9.56 with constant activities against corruption with the appointment of Lee Won-geol as CEO in March, 2007. Courtesy of Integrity Innovation Team, KEPCO Audit Dept., and KEPCO PR Dept. KEPCO’s integrity score (out of 10) The Cebu power plant construction is a project which was developed by an agreement between Korea and the Philippines, and it is remarkable not only as a breakthrough in Korean-Philippines relations, but it is the first Greenfield KOREA IT TIMES March 2008 _ 6 9 Tourism Blooming Paradise for Sightseeing in Mud Flat, Incheon effect - with over 3,770 billion won expected to be generated through the EXPO. The city plans to build up an EXPO main showroom with 500 thousand m2 of land in Songdo international city, and to promote the progress and potential power of Incheon, officials will be connecting it with Visit Incheon 2009. There will be approximately 120 festivals held, and around 2000 events held all over Incheon. An Incheon city official said, "Incheon can take the leap and become an international city through the EXPO, and the city can be a place full of international culture and tourism through Visit Incheon and other initiatives." Cruise Ships Maximization of inducing visitors with specialized sightseeing products ou can see the indigo blue-colored West Sea, rippling majestically when visiting the city of Incheon. Y Incheon also plans to specialize itself with representative festivals such as the Incheon Ocean Festival, the IncheonChinese Cultural Festival, the Incheon Worldwide fireworks Laser Festival and more, to help people in the city enjoy a variety of cultural activities. The city will try its best to activate the traditional culture and to preserve cultural heritage. In addition, Incheon will develop the individual tourist attractions with convenience facilities in Palmi-do, the new Mooui arts center, developed in the Wolmi Tour specialized district, a remodeled Seopo-ri sightseeing spot and more. As Visit Incheon 2009 approaches, the city is going all out in its efforts. Southern Ilwon, the 'Moonsan district' Acceleration to attract Foreign Visitors for the Incheon City EXPO The project to lay the foundations for a growing force in the 21st century in the Songdo international city started up as a way of filling up the mud flat. The large Incheon bridge, the one that heads towards Youngjong airport as a future international gateway, stands with a dignified appearance. The dream that connects the sky, the sea and the places, Youngjong-Songdo-Cheongra through this prospective path, is starting to come true as efforts continue to build up the economic-centric Northeast. Incheon, has high hopes and plans to develop the growing culture and arts industry to provide people with enjoyable opportunities for culture and art through a higher-quality of life with improvement of GNP (Gross National Product), and also plans to aid future cultural and artistic activities. Incheon implements a policy to actively construct and widen cultural infrastructure in the expansion of culture. It is also plans to assign 2,000,000m2 of the Dowha, Soongui, Jooahn-dong areas in the southern part of Incheon as 'Incheon, the Development District of Cultural Industry' through efforts of the Ministry of Culture & Tourism. 7 0 _ March 2008 KOREA IT TIMES Incheon has started builing up impetus for the preparation of the 2009 Incheon World City EXPO one year in advance. It will be the first EXPO of its kind in the world. The Incheon world city EXPO, supported by the government, will be held with the title of 'A City with Dreams', with 100 prominent enterprises and 200 international cities in the entire Incheon area taking part, from August 7th to October 25th next year. Incheon estimates it will host 10 million visitors, including 1 million foreign visitors, and it also expects a big economic Incheon also has other plans for the future. These include such ideas as introducing a regular liner in 2009, and inducing a home port in 2011, in order to boost the cruise industry. Incheon already started out in its quest to make inroads into the cruise industry last year with a marketing contract and TFT (ThinFilm Transistor) which was struck between the Incheon Port Authority and the Incheon Tourism Organization for the European destinations like the Netherlands, Spain and Germany. In fact, the Cruise Industry Buildup Forum drew positive feedback from related organizations and companies in last December. The activities of "cruise inducement" are planned for Japan, South-East Asia in the first half of the year. And an international cruise conference will be held in order to build popular support. In addition, the improvement of Incheon's port would be in an active progress with unique welcoming events for incoming cruise ship and visitors to the port. In the long-term, plans are to build ports, and have the "mother port" as Incheon. Plans are afoot to have such cruises up and running in 2011, and have cruise tourism infrastructure up and running by then. Cruise tourism continues to increase by an average of 10% annually since 2001, with around 10 million tourists as things stand. It accounts for over 4% of the average annual amount of international tourists. A local government spokesperson said, "Incheon has the Incheon international airport, and the new port which is the most up-to-date in the country. As for strength, the potential of the cruise industry for us is much bigger than any other city near Seoul." Sightseeing and Islands The development business, is currently heating up as Incheon unveils plans to develop some of the largely uninhabited islands in the West Sea, off the coast. Plans involve constructing a tidal power plant, a golf course and a sightseeing complex, The tidal power plant construction business, which plans to be completed in 2016, will be connected with 6500m of sea walls and four islands: Kanghwa Island, Seokmo Island, Kyodong Island, SeoKum Island. 32 water turbine electric generators that work up to 25.2MW are installed, and electric power at 1536GWh, which is at 8.5% of Incheon annual electric power usage, is provided. Incheon can expect to save approximately \90 trillion through the construction of such tidal plants. The plan to developing the authorized place for a disposal plant for nuclear waste in 1995 was cancelled, with the revelation of a possible fault so the place since has been in the process of developing itself as a tourism complex. The synthesized ocean sightseeing complex, with a golf course and a 150-room hotel, will sponsored by the CJ Group. Planning permission has also been granted to a golf course and a condominium complex, with 100 rooms, in Seokmo Island, Kanghwa. Yongyou and the Moo area will also be developed with hotels, resorts, casinos, theme parks, a sports leisure complex, marina ports, malls and residential facilities all planned. Incheon also has plans to expand support for the sightseeing industry by obtaining sufficient a budget developing an area for nightlife in Wolmi, a special sightseeing zone, with convenience facilities near beaches in Ongjin Koon, Bakryeong Myeon, Deokjeok Myeon and Jawon Myeon, The city also plans an operation to release promotional material about culture and sightseeing, in order help generate the building up of the sightseeing infrastructure of the province. KEJ KOREA IT TIMES March 2008 _ 7 1 Tourism Sri Lanka An Investment Destination Like No Other Sri Lanka offers more than meets the eye for investors, says Yeo Hong-il y means of an invitation from the Embassy of Sri Lanka in Seoul, the Korea IT Times was able to see the investment condition and the IT investment circumstance in Sri Lanka onsite for over 10 days from February 7th to 19th. B Why Choose Sri Lanka? In an investment promotion gathering for Korean investment and trade delegation, held in the Ivy Room of the Hotel Cinnamon Grand in Colombo, Sarath Amunugama, Minister of Enterprise Development and Investment Promotion said, "Pioneering South Asia's economic liberalization, Sri Lanka, for over two decades, has followed free market policies and has evolved a business-friendly policy environment favorable to investment and economic growth." Koreans on hand were able to confirm that over the years, successive governments of in Sri Lanka including the strong leadership of current Sri Lanka government have continued to liberalise many areas of the economy to pave the way for international investment. As a result, Sri Lanka remains one of the most attractive investment destinations in the Asia-Pacific region. Lanka's capital, is situated at the crossroads of major shipping routes to South Asia and the Far East. In recent years, the port has become a major trans-shipment hub. Sri Lanka hopes to leverage on its locational advantage by implementing a policy framework to position the country as a service hub to the subcontinent, Amunugama explains. Sri Lanka is the logical location for manufacturing and service organizations that wish to establish a presence in what is fast becoming an economic powerhouse in the region. The island is ideally located as the gateway to the vast Indian subcontinent- home to a quarter of the world's population. ed that fragmentary assistance-oriented investment of the past is now over. Choi also stressed the importance of resource diplomacy with Sri Lanka. In that context, he asked for interest and support from the government because it is a burden for some corporations to carry out such long-term economic cooperation relations with foreign countries like Sri Lanka. In the case of the IT industry, the major fields which are being promoted by the BOI(Board of Investment of Sri Lanka) are software development, e-Commerce, IT training, and IT-based construction. Sigiriya, the "lion rock", stands majestically, overlooking luscious green jungle surroundings. Billateral relations to be taken to a higher level 8% of the entire population of Sri Lanka work abroad right now, according to the Ministry of Foreign Employment Promotion and Welfare, Sri Lanka. Accordingly, 1.5 million Sri Lankans contribute to the largest employment income, earning US$ 2.7 billion annually. In the case with Korea as well, Sri Lanka dispatches approximately. 2,000 industry trainees to Korea yearly, allowing to account for 2% of oversea employment income. In order to dispatch more Sri Lankan young industry trainees to Korea, customer-oriented Sri Lankan young industry trainees need to be nurtured before everything else, according to some experts. A skilled workforce, generous tax incentives plus a comparatively high quality of life as well as liberal business environment make Sri Lanka a desirable investment destination in which to invest Kim Duck-joo teaches Sri Lanka industry trainees at the National Institute of Technical Education in Sri Lanka. So to nurture good quality's Sri Lanka industry trainees to tailor customer taste in Korea is a pressing need. Moreover, there are no restrictions on repatriation of earnings, fees and capital, and on foreign exchange transactions relating to current account payments like all other countries in the world implement to attract foreign direct investment. Choi Jae-jong, the managing director of Ceylon Heavy Industries and Construction, has been doing business over ten years here, said, "One of the several advantages of Sri Lanka is its accessibility to Southwest Asia. In that sense, Korean corporations deserve to consider making inroads into the Middle East or India via Sri Lanka." Despite the fact that for over 90% of Sri Lanka industry trainees, Korea offers them a land of opportunity, Kim said that the Institute does its best to pour customer satisfaction mind into them through its curriculum so that Korean employers can be satisfied with Sri Lankan industry trainees. Asitha Perera, the Ambassador of Sri Lanka in Korea who was on hand, added that Sri Lanka also has much to offer because of its many natural attributes and competitive advantages. Location is key in all of this. Colombo, Sri Refering to the fact that Sri Lanka holds development possibility because this country is a less-developed country, Choi said that Korea has to persue long-term economic relations with Sri Lanka. He insist- However, he says, "It is a pity that Sri Lanka has no special infrastructure for Sri Lanka industry trainees to utilize their experience in Korea after coming back to their country." The policy environment is indeed compelling, according to Minister Amunugama. Total foreign ownership is permitted across all areas of the economy. 7 2 _ March 2008 KOREA IT TIMES Sri Lanka already receives a lot of financial assistance from Korea, but experts say that from now on, such fragmentary assistance-oriented investment needs to be upgraded to more long-term economic cooperation. Experts agreed that Sri Lankan basic culture foundation is oriented towards a more European or Western style, because this country has been ruled by colonial powers. Portugal, the Netherlands and the British took in turn to run the country over a period of 450 years. Because of this, Sri Lankan people's expectation degree about welfare level is similar to Europe. In short, Sri Lanka's edge is that its culture is being globalized right now, and it is now developing an infrastructure that it will be able to use effectively in the future. In a further link to Korea, Sri Lankan was one of the countries that supported South Korea during the Korean War. In that regard, it was a scar for bilateral relation that the Kapeul Spinning Company revealed moral problems in the past. By examining the mistakes of the past and learning from experience, bilateral economic cooperation between Korea and Sri Lanka needs to be developed and upgraded to a long-term standpoint. In this way, Korea needs to take its lead from the likes of Japan, who have been approached South America with a middle and long-term point of view, with a view to building not just immediately . A more intense competition also between Korean corporations here in Sri Lanka needs to be created in order for the two countries to reap the mutual benefits. In addition, the country boasts rich natural splendour for investors. How many destinations in the world will allow a visitor to snorkel off golden sand beaches in the morning and go off in search of rare leopards in the mountains? Faiszer Musthapha, Deputy Minister of Tourism says flatly, "Probably, not many. Sri Lanka is one of those few places in the world, with a breathtaking array of landscapes and wildlife, packed into a relatively compact area." Colombo and the Galle area, where the Korean journalists stayed during their visit, was littered with beautiful beaches with impressive resort hotels. In many ways, Sri Lanka seems to have the whole package when it comes to investment, but if opportunities are to be taken, the time to act would seem to be now. KOREA IT TIMES March 2008 _ 7 3 News in Brief Real-Time News Asiana to use RFID in Baggage Handling Pakistan imposes YouTube ban after "blasphemous" video appears on UCC site EU Set to Impose Privacy Laws on RFID Chips A giant IT row has erupted in Pakistan after the country imposed a sweeping ban on UCC video site, YouTube. The Pakistan Telecommunication Authority confirmed that it has ordered every Internet Service Provider in the country to block users from using the website for the foreseeable future, after a controversial film deemed offensive to Muslims appeared on the site. A Pakistani telecoms official said this was a reaction to the posting of a recent movie trailer of a new film made by Dutch politician Geert Wilders, which allegedly portrays Islam in a negative way. Wilders has criticized Islam in the past and is a spokesman for anti-immigration policy. He has previously asked for the Netherlands to impose a ban on the Koran, the Muslim holy book, saying he thinks it contravenes the spirit of Dutch law. RFID (Radio Frequency Identification) tags attached to retail products will have to be deactivated at the point of sale to protect consumers' privacy under draft guidelines drawn up by the European Commission (EC). If the European Commission (EC) gets its way, it looks like the European Union is set for a blanket deactivation of RFID tags used in retail products. The EC says it is moving to protect consumer privacy and has drafted guidelines to ensure people's actions are not being monitored for more sinister reasons. They say that a public consultation period will be active until 25 April 2008, before the EC puts its recommendations before the 27 member states of the Union in Summer 2008. EU officials have recommended that retailers automatically deactivate RFID tags at the point of sale, unless the consumer explicitly chooses to leave the tags active. Bangladesh to Introduce e-Governement in 2008 HP Beats Rivals in Customer Satisfaction Report Bangladeshi newspaper The Financial Express says the country is taking steps to introduce e-government this year, with plans to have the system up and running as early as June. According to reports, the country has enlisted the help of Price Waterhouse Coopers, the consultancy firm, to help with the procees. PWC will help draft e-governance strategy, and update the way the country is run. Hewlett Packard (HP) have topped the league tables for customer support in technical products, according to survey put together by the Customer Respect Group, a research group based in the US. HP pipped Intuit, Xerox and Microsoft to the post, with a 7.7 score out of ten on a customer satisfaction scale. The average score was only around 6, though, indicating that companies still have a long way to go when it comes to keeping the customer satisfied. Terry Golesworthy, President of the Customer Respect Group said, "Online support is now a critical factor for any technical product. Site usability and the willingness to engage with the customer to resolve issues have become major purchasing considerations. As technology costs go down, the ability of support sites to help all customers will be a major driver on product profitability." A government official told The Financial Express, "The government offices still run on the traditional mode. The strategy aims to stimulate the use of more technology in offices. Government officials are still used to a manual filing system - there is no modern database." Kazakhstan officials in Seoul also revealed last month that plans were underway to introduce some elements of egovernment into at least some local government work, with the assistance of Korean IT firms. Asiana Air Information Decision Technology announced that RFID (Radio Frequency Identification) technology was to be applied to the baggage procedure on domestic departure and arrival lines and the Gimpo-Naneda line. Asiana Air had a ceremony at Gimpo domestic airport on February 27th for the opening service of RFID technology application to the baggage procedure on all domestic Asiana Airlines flights at eleven airports and the international line between Gimpo and Haneda. Not only can the fixed time rate of quick and exact flight service be improved at the domestic airport, but passengers' baggage route can be The opening ceremony for Asiana’s new RFID technologies at Gimpo airport tracked down through Asiana's RFID technology in February application; therefore, baggage check-up and claim at a destination airport can be expected to be more rapid. Asiana IDT's flight baggage RFID system is consisted to confirm passengers' personal and baggage information with the Reader, which is installed on every main moving path of baggage with a RFID tag, to hold Asiana Air's freight, freight system and Korea Airports Corporation's baggage information system in common, and also to be utilized to the baggage information with text message services and LCD monitors. Asiana IDT's accumulated technologies, trial and experience of service business in the RFID/USN (Ubiquitous Sensor Network) and this baggage service with RFID are expected to be widely applied to all flight fields such air cargo, cabin meals and supplies, management of duty-free goods in the cabin and other fields such as distribution, manufacture and freight. TA Asiana's Flow of Flight Baggage RFID System 7 4 _ March 2008 KOREA IT TIMES KOREA IT TIMES March 2008 _ 7 5 Real-Time News Korean language hits the Louvre Young Artists Given Room to Exhibit in Seoul Hotel Paris' most famous museum is braced for a Korean invasion after a joint project with Korean Air saw a guide service launched in the French capital's landmark museum. From February 1st through to March 31st, acclaimed artist Park Yong-in will showcase his artwork in the lobby of the Millennium Seoul Hilton. Cho, Yang-ho, Chairman of Korean air, right, shakes hands with Henri Loyrette, chief Director of the Louvre orean people can now appreciate commentary about masterpieces in Korean at the Museum of the Louvre - a world-famous treasure house full of the richest cultural heritage. K On February 12th, Korean Air and the Louvre launched the a guided tour service in Korean for the first time, Hangeul is supported on the Personal Digital Assistant (PDA) system for the explanation of pieces of art at the Louvre in Paris. Korean Air has supported the modernized project of equipments for the explanation of priceless masterpieces and has succeeded in provision of the Korean service after a conditional negotiation. Cho, Yang-ho, the chairman at the Hanjin group, which included Korean Air, Henri Loyrette, the Chief Director of the Louvre, Cho Il-hwan, the Korean ambassador to France, and other important figures in the governmental and cultural world attended to this meaningful launch ceremony. Cho said, "This guidance system service sponsored by Korean Air, is a small gift not only to Korean and French speakers, who love culture and art, but also art devotees across the world. We tried to make it possible in return to Korean nations because we can have been developed as a worldwide airline with Koreans' cheers and utilization." He also added, "From now on, Korean people can add a new level of enjoyment to their world-famous art. They can go to the Louvre and come away with a much deeper level of understanding from their experiences." GNC Media, which was a Korean exclusive partner of Reunion des Musees Nationaux (RMN), was in charge of rechecking manuscripts about works of art. Ten different Korean voice actors took part in the recording process. Korean interpretation service is now provided for more than 600 important pieces, including the Mona Lisa, Liberty Leading the People, the Venus de Milo, and so on, with and an additional 1,000 commentaries by theme. 7 6 _ March 2008 KOREA IT TIMES The total amount of these voice services means it is the number one Korean language service among worldwide museums. The screen of works explanations, captions and logos are indicated on a personal portable terminal while the voice explanation about the art is playing, while Korean Air advertising is also included in the audio program. Therefore, the company will also be able to spread their image of "Excellence in Flight" to the visiting Korean public. Korean will be the 7th language for explanation service is available in, after French, English, German, Spanish, Italian and Japanese. The number of audiences from all over the world has reached 8,300,000 people, and the total amount of Korean visitors is estimated at around 1%, which amounts to 80, 000 people. Even though Chinese, Russians and others has visited the Louvre at a higher rate, Korean was chosen as the 7th language for the service. Because of this, it could be an opportunity to raise national pride for both native Koreans and Korean immigrants in France. To celebrate this service, Korean air insulated their PR aircraft, B747-400, with the Korean script-stitched Mona Lisa with typography. The plane will carry passengers on the line between Incheon and Paris from February 12th this year. Moreover, Korean Air plans to convey their appreciation to their customers through a variety of "Thank-you events," according to their homepage and travel information sites. Korean Air says they are willing to be the messenger between culture, art and people and will actively develop support in global culture as well. Korean Air will continuously sponsor this service for six years for the improvement of the service, helping in the explanation of art in Korean at the Louvre. graduate of Hongik University, Park also studied in Paris, France at the Academie De La Grande Chaumiere. Park has been recognized for his talent and has won several awards. He is known for being able to turn abstract ideas into art through his extraordinary use of color. A His dazzling and highly saturated color scheme have been presented in most of his artworks with his unique painting technique by using color that was pre-mixed on the palette, instead of mixing and layering it on canvas. Also, unlike other artists, he is not afraid to use dark and toned-down color as a primary color and adds bright complementary color onto it for a sense of contrast. His works have been exhibited around the world and he is known for the rich variety of approaches to representational art, using simple composition by simplifying and flattening objects or using refined and polished color. in the lower lobby including "The Fall in Amsterdam" and "The landscape of Zurich". There is no entry fee; guests may peruse his artwork for free at any time of the day. Also, along with Park, promising young artist, sculptor Park Gun-won will showcase his artwork in the lobby at the same time. A graduate of Hongik University, who has also studied in Italy and Germany, he has exhibited around the world with hope and humanity showing through his artwork. He is known for using a variety of medium-like light fixtures, ceramic or bronze in the search for hope and a human touch to express the agony of people as members of an oppressive society. In the past, the Millennium Seoul Hilton has hosted works of other artists including Korean celebrity Cho Young-nam and a collection of exclusive limited edition replicas of the works of Vincent Van Gogh. Approximately sixty pieces of Park's work will be on display KEJ KOREA IT TIMES March 2008 _ 7 7 How to ... 276 million registered users worldwide. Shop Online Safely Buying online at bargain prices is great fun, but there are many ways to fall afoul of online scams. We investigate how to take care while on the net. Tip # 1 A fancy, flashy website might be a trompe l oeil. Some phishing scams are exceptionally intricate, full of snares to draw you into handing over your card details. Be sure you can 100% trust a site first. Tip #2 Buying from abroad is always a risk. If you are not familiar with the laws of that country, you might have trouble persuading Korean or other countries courts to help you with getting your money back from foreign tricksters. But while shopping online is undoubtedly faster, cheaper and less time-consuming than traipsing through crowded shopping centres or trying to make your way through busy high streets looking for bargains than are easily found with the click of a mouse - online shopping is not bug-free by any means. A fool and his money are easily parted, and a variety of Internet scams, traps and cons lie in wait for any fools not careful with how they spend their money on the net. In fact a whole web of nasty things might happen to your money or your purchases as a result of online pests who are after a quick buck from getting one over on unsuspecting users. According to experts these range from being sent products later than expected to having your card details sold for a few dollars by web pirates. Though more prudish elements of society might grumble that there are no such dangers with going into a shop and paying in cash for what you need, living in the 21st Century requires that at you will have to use your card online at some point. Tip #3 Read the company s Privacy Policy before you hand over money. This tells you what information the company is gathering on you and how they will use it. If they don t have a Privacy Policy, this might be a bad sign. The simple solution to everything is to use a credit card when buying online. Credit cards, unlike debit cards, are insured against fraud, and you should be able to claim back any money you have lost due to people stealing your card information. However, it may be time-consuming and frustrating trying to recoup your losses, and a better overall solution is to try to be savvy about your online shopping habits in the first place. ake a walk around any office computer pool in Korea. When the boss is out of sight, most men spend their time reading sports news and looking at pictures of scantily clad women on the Internet. But the female employees are busy with another thing ? Internet shopping. T Buying online is one of the fastest-growing crazes in the whole World. Korean companies alone rake in over 15 trillion Won (US$16.33 billion) a year from online sales, and that amount is growing fast. Department store Shinsegae 7 8 _ March 2008 KOREA IT TIMES estimate that if sales continue to rise as expected, Korean people will be spending more money on the web than they do in shops by next year. eBay is an online auction site not often used by Koreans, but elsewhere in the World, it is a massive hit. Although it is a company that is barely twelve years old, it makes almost $8 billion a year and employs almost 12,000 people. eBay is one of the Internet s biggest success stories, and people all over the World use it to buy and sell online, with around Shopsafe, a British consumer guide for online shoppers, advise that basic precautions need to be taken fist when shopping online. As well as checking that you have adequate security filtering software on the computer you are using, Shopsafe say, Make sure that you log out safely when you have finished a transaction online and don t leave the computer unsupervised while shopping online to avoid extra risk. long as you take basic care, you shouldn t have to worry. Do not rush into anything, there are hundreds of online shops out there. But some may argue that this is precisely the problem. The sheer amount of online shopping malls out there means that it is hard to tell which ones can be trusted and which ones we should be wary of. One way to tell if a company is trustworthy or not is to check if the site is secure or not. Secure sites usually have a small yellow padlock icon at the bottom corner of the window they are in. You should be able to click on the padlock to view the site s safety certificate. Check this to see that the certificate is up to date and applies to the web site you are using. However, a safe site is no guarantee that your money is in safe hands. Phishing is the latest way for Internet cyber criminals to get their hands on your hard-earned dosh. Not unlike conventional fishing enthusiasts, phishers lure unsuspecting punters into handing over their bank details by using a variety of tasty bait. The kind of things you might come across are dubious online shopping websites, but emailed phishing scams are common, with shady users sending out emails claiming that there as been some kind of mix-up with your payment or online banking details. Phishing scams like this are now rife all over the Internet, but they are just after one thing - your money. To the untrained eye, it is hard for users to tell the difference between a well designed online scam site and a legitimate business just trying to sell their wares on the Internet. Again, the accepted wisdom is to only trust big sites, but there is a problem with this philosophy. If we all buy via one or two sites, the smaller sites will never develop on their own, and the monopoly of the few will be able to put their prices up. Also, several phishing scams have exploited public overreliance on the established names, with fake eBay and PayPay scams aplenty on the net. Graham Miller, one of the founders of Shopsafe, says, So KOREA IT TIMES March 2008 _ 7 9 Instead, it is essential that we use a mixture of common sense, good judgment and safety precautions when we go online. Daum DS, a Korean shopping site, think good judgment all round is needed to avoid potential problems. The company said, Online shopping companies need to pay closer attention to the importance of keeping customers private information a secret, but online shoppers also have a responsibility to themselves. We all need to stay vigilant. The online world of shopping is a liberating one, but we still need to take care. Feel free to explore new shopping possibilities, but make sure you are not making yourself a target for people who are looking to make a lot of money ? at your expense. TA Online shopping mall Daum DS’s top tips Change your password regularly to throw would-be hackers off the scent. Install good Firewall and anti-virus software. Be sure to update these regularly -there is a lot of malicious software that looks for computer users who have not updated their safety nets. Don t visit any sites you think look or sound suspicious, and don t install any software you are prompted to do unless you are absolutely sure you know what you are saying yes to. At a Glance - The Growing World of Online Shopping World: CNN reported last year that total worldwide Internet-related sales are forecast to hit around $174.5 billion by the end of the year. Sex: Women aged 18-35 are Korea s biggest consumers, though younger teens are the fastest-growing group of online consumers in the country. Number: The Korean government estimates that the amount of online shopping sites in the country grows by 20% every year. North Korea: DPR Korea, one of the World s most technophobic places, has just opened several online shopping signs, offering users arts, crafts and graphics made in the secretive state. The South Korean government bans such websites, saying that they may be used to spread dangerous propaganda. Elsewhere: Everything from twin babies to human kidneys have appeared on eBay s auction site. This while online retailers sites offer a bizarre variety of goods - reptiledepot.com can sell you a variety of snakes, while amazon.com stock not only books and CDs, but also cheese-stuffed cow hooves. 8 0 _ March 2008 KOREA IT TIMES KOREA IT TIMES March 2008 _ 8 1 Want to know all about ICT trends in Korea? Subscribe Now! Open new vistas to the IT World. A reliable partner for your business success. 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