레이아웃 1
Transcription
레이아웃 1
www.ittimes.co.kr April 2008 / Vol. 46 Semiconductors at Real People in IT Songdo u-Life A City of the Future Focus Information Security and Software U.S. $9.00 / KOR.₩8,500 04 ISSN 1739-2950 Academia KAIST University put the culture into technology G o P ve ol r ic nm y en t Government registration No. Seoul-Ra-10914 Tel: (82-2)3459-0664~0665 Fax.:(82-2)515-2719 Digital Society N ew 3rd~6th Floor, Seoul Metropolitan Facilities Management Corporation B/D, 540, Cheonggyecheono, Seongdong-gu, Seoul, Korea (133-050) Korea’s No.1 Information Technology Journal Company profile Namuga - Cameras for the Future Namuga(http://www.namuga.co.kr) has been developing hardware and software applications which can be applied to image processing for 2008 CMOS cameras, compression and recognition techniques. Namuga have been doing so since 2004, when it started developing camera lens. It has been developing and producing futuristic technology for Seo Jung-hwa, CEO of cars, networks with fixed-lines and Namuga ATMs. Namuga has also been working on robotic cameras and is currently focusing on cameras that work inside and outside PCs - a huge market for CMOS cameras. We are doing our best to create digital techniques for the future, and to become a company that works together with other parts of society to create a better business culture. Business Areas - Embedded Camera Module This is a Notebook and Camera Module for a monitor. We are leading the high-end market with developed a functional and an in-depth level, our creative design and competitive price range are different from other low-priced Chinese or Taiwanese products. It is the line-up product of VGA, 1.3M, 1.3M Dual, 2M, 3M Auto focus and it is exclusively supplied to Samsung Electronics, LG Electronics and Intel. - Stand-alone USB Camera This is a USB camera for desktops and notebooks. We are the top vendor with Embedded Camera Module for the high-end of the market with perfect management product quality. We have abundant experience with design and the establishment of a self-test standard for resolution. In addition, we focus on the development of new products with our own software technology and a singular plan for the production of a USB Web Camera that is different from those offered by other Taiwanese and Chinese ODM/OEM companies. We also exclusively supply this product to Samsung, Intel, Hewlett-Packard Development Company, L.P. and Creative Technology Ltd. - [Application] Camera Module or Application Per Camera Module This is a product is based on the stable image processes and algorithms. It is optimally developed and supplied to customers for application. We promise the highest quality, and a resolution that can be adjusted for all of our clients. 10 _ April 2008 KOREA IT TIMES ● Camera for automobiles: This is applied for keeping cars in lane when Connected to a satellite navigation system, it behaves as a black-box for automobiles, and a synchronization acquisition camera for back-up. ● Camera for ATM M/C: This is for an image of security at ATMs and it supplies the best quality image in any environment. ● Robotic camera: It is applied in many industries as nextgeneration core technology. - High-definition Video Codec IP Camera It is combined with image and fixed-lined network technology and applied to the newest advanced image compression technology, such as H.264. So rapid image process and IP accessibility is increased with this product and we supply sensible image delivery. This is growing fast in such areas as image conversations, image meetings and an image education for worldwide IPTV services and new customers' services with an image system of education. - Flash Memory Card Reader It is the part that continuously being developed as introducing variety of Flash Memory as a desktop product. We are the 1st vendor to supply products to the big-sized company - Software Applicable software for Embedded Cameras is supplied. This works with all operating systems including Windows Vista, Win CE and Linux. We have developed applicable programs for the hardware. (Headquarters) Suite 709, Biz Center, SKn Technopark, 190-1 Sangdeawon-dong, Jungwon-gu, Seongnam-si, Gyeonggi-do, Korea (Chinese Production Headquarters) 2/3 Floor, 7# Building, Lijincheng Industrial Park Gongyedong-road, Longhua area, BaoAn District, Shenzhen, China I-Components - Plastics for the Age of IT I-Components(http://www.icomponents.co.kr) is a leading players in the advanced IT era. We are maker of engineering plastic film which opens the informatization age. Based on management equipped with broad understanding of LCD materials and the related components industry, the company is making efforts to develop film and materials Kim Yang-kook, CEO of I-Components used to produce components for display films based on precision chemistry, polymers and material engineering. In an effort to establish a global network, our company has maintained a solid partnership with domestic and international companies, such as Basf in Germany, Marubeni in Japan and the Korea Development Bank. IComponents has achieved global standards earlier than other firms by establishing a firm cooperation in production and marketing. I-Components, in line with the growth of the display industry, has materialized optical features, including optical transmittance and double refraction, as well as surface features, like surface flatness and thickness uniformity, and has supplied highly-functional and applicative PC, PMMA and PES to various customers. Glastic PES, a key material with a flexible display which the company developed for the first time in Korea, is an optical film we are exclusively supplying to Basf through strategic cooperation. It is an advanced product which will lead the next-generation plastic market, because it is remarkably heat-resistant and has high transmittancy, surface flatness and optical isotopes. Glastic PES is being used for TFT-LCD, touch panels, E-Books, smart cards and substrates for flexible displays which requires high-temperature processes, such as organic EL OLED. In comparison with glass, glastic PC is an engineering plastic film with 250 times more impact resistance, a sophisticated appearance, printing property, formability, heat resistance and numerical stability. The company, for the first time in Korea, has developed and mass-produced thin films for LGF sheets used in the key pads of mobile telephones, and these have won high popularity on the market. In addition, this product has been used for printing in for as car dashboards, electronic name plates for various home appliances and switches, as well as in mobile telephones. They are excellent in terms of their printing property and effectiveness. In connection with molding areas, there are plamodels for toys, mobile phone inmolds and helmets. As a flame retardant, it is being used for the insulation of electronic goods, electronic heaters and IC chip trays. For coating, there are the screens of portable handsets, ski goggles, protection windows for compact displays and caps that block ultraviolet rays. It also is used for the decoration of office and home furniture to upgrade exteriors, providing an elegant finish to such products. Glastic optical PMMA has excellent surface strength, weather resistance and avirulence ,and it is receiving favorable responses in the market by realizing high optical transmittancy and surface strength. Glastic optical PMMA is being applied to windows, such as protection windows of mobile telephones and PDA screens and frames for PDP TVs. In displays, it is widely used for refrigerators, airconditioners, audio systems, DVDs, notebook computers, MP3-players and LCD protection windows. For exteriors and windows on home appliances, it is being used for refrigerators, office electronic instruments and the panels of automatic vending machines. Unlike existing goods, glastic optical PMMA and glastic PC have a remarkable purity, transparency and processing ability, therefore they are becoming essential products in the IT industry which is leading the core industries of Korea. I-Components is vigorously advancing to become a worldwide leading company in the field of IT materials, Korea's number one industry in the 21st century. We are doing this through continuous investment in research. We continue to innovate and run our business based on our broad manufacturing experience and knowledge of the entire display film industry. I-components, a global top leader in plastic film. Advance together with I-Components and change your future. KOREA IT TIMES April 2008 _ 11 Contents 22 Policy 31 Interview Highlights 10 10 11 Company profile Namuga - Cameras for the Future I-Components - Plastics for the Age of IT 14 Editorial 15 Analysis The "Grand Canal" and IT 16 Cover Story The Semiconductor Industry at War 22 22 24 Policy Lee Myung-bak's difficult first month Ministerial briefings 29 Digital Society A former software programmer talks about he new career path 31 Interview Highlights Nam Jong-soo is confirmed as CEO of KT 32 u-life Songdo's city of the future 34 Academia KAIST University put the culture into technology 36 Display 2008 Experts say Korea needs more display investment 12 _ April 2008 KOREA IT TIMES 32 u-life 38 Finance A credit service for Gyeonggi-do's smaller businesses 40 40 42 43 Vision 2008 Focus on the IT security industry in Korea E&I Club strikes new partnership deal Solar power 44 44 45 Software Software struggling in the shadows Korea's software industry needs to mature 46 Spotlight Alsaba - A Taste of South Asia 48 48 49 Interview Korea Venture Business Association Buyer's Guide 54 Company Focus Hyundai Mobis 56 Green IT Is it time the Korean IT business became a little more eco-friendly? 58 IPTV Spotlight on the latest developments in the world of Internet television April 2008 / Vol. 46 38 Finance 60 44 Software Event Venture business group change their name 61 Podcast Your guide to our new, free service 62 62 64 65 Feature Is UCC really here to stay? Can we build bridges with IT? The true value of good workmanship 66 In-depth report series How is IT transforming Korea? 68 Focus The Incheon Free Economic Zone 70 70 72 73 Hot Issue You Tube in Korea Telecoms merger on the cards? LCD production to step up 74 74 75 News in Brief World Korea 76 How to... Find a good job in IT 80 Briefing Graphic Design _ Lee Do-won Chairman & Publisher Executive Advisor President-Publisher Advisor Vice President Editor-in-Chief Editor Supplement Director Managing Editor Editorial Director Industry Editors Staff Reporters e-mail: [email protected] Kim Tae -sub Han Kon- ju Chung Youn-soo TA CGE LKH LCM JKS KWH KHS KEJ YCW LKM Chang Hong-yul Huh Pyung-youn Kim Byung-woo Monica Chung / monica Tim Alper/tim Kim Joo-hyung Chun Go-eun/toclair Lee Kyong-hwan Lee Chung-moo Jeon Kyung-sook Koo Won-hum 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 David Jones Dondu Sarisiik Matthew Weigand Shin Sung-won Jude Kim Lee Do-won Cho Hee-sang Bok Dong-kyu Financial Auditor Financial Secretory Choi Eun-kyung Cho Hye-kyung Freelance Reporters Business Manager Circulation Manager Administration Manager Sales & Marketing Manager Publication Team Manager Correspondents N.America Europe Southeast Asia Far East China Oceania SW Asia M.East Kim Chang-ho Park Mi-jung Kim Si-hwan Yoon Jong-jin Ko Yeon-sang 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 I Let's show some love to our lab rats t is hardly the kind of news that fills headline writers with joy - according to the UN patent agency, Korea, along with China, is the country that showed the biggest growth in registering patents in 2007. Registering patents brings to mind very few exciting images. Perhaps those images are little more than officials in stuffy offices and lab rat-like engineers with complexions like they have never seen the sun. But little things like patents can create things much greater and of much more importance. From the smallest acorns do the greatest oaks grow. WiBro, IPTV and DMB are Korean inventions that are bringing forth global acceptance. They, too, were once nothing but numbers in a patent office.The incredible speed of modern technological progress means that registering a high amount of patents is a must if you want - as Korea does - to make a primary industry out of IT. A strategic shift is needed by anyone who wants to get involved in the modern IT rat race. Whereas in the past, Korea was happy to undercut the Japanese and Americans with cheaper labor prices, this country long ago lost that high ground to the Chinese and Taiwanese. In fact, even though the Chinese have been fast to register a huge amount of patents themselves, this should be of little concern to people here. The Chinese are not the nation Koreans have to compete with in IT any more. That war has already been fought and lost. But the Chinese are at a disadvantage in IT - their specialty will always be mass-production, rather than developing niche technology that later turns out to be widespread. In fact, the latter is a game the Japanese have been playing and playing well for some time. But Korea, in investing heavily in Research and Development, is showing 14 _ April 2008 KOREA IT TIMES an interest in remaining an IT leader. The Americans, too, have been at the forefront in IT development, and their unparalleled ability to think outside the box has often given them the edge. Who else but them could have given us the likes of Google or the iPod? Unique technology is an absolute must now Korea has found its place in the IT world as not a bulk producer but a specialized niche developer. Niche technology might sound like it is a step backwards from working on the big products that everyone wants, but actually through developing products for a minority of users, we are bound stumble across the next big thing at some point. In order to globalize, sometimes it is more important to look in more detail at smaller markets. It has been said before in this magazine, but it is worth saying again - the real battlefield for Korean IT is not the high-profile squabbling and one-upmanship of major companies like Samsung and Sony, Hynix and Mitsubishi. The real fight is between the small fry of Korean IT and the small fry of Japan and the US. If our little niche companies can be encouraged to strike gold on the world market though government subsidies and a better support network, that is what we must give them. The future lies in the hands of those pale lab rat engineers - it is the year of the rat, after all, and what better time to realize that we need to give them all the help we can muster? TA Analysis Technology can put the “Grand” E into Lee's Canal Scheme veryone I speak to about the "Grand Canal" seems to think it will never be built. They smile and dismiss it as wishful thinking or some crazed Lee Myung-bak project that will never actually be carried out, just discussed into oblivion. Personally, being from the UK, my picture of canals is the now-disused British waterways that were constructed during the Industrial Revolution of the late 1700s. They are now full of nothing but shopping trolleys and rats for the most part. In a world where railways, roads and airports exist, I cannot think of any possible need for a BusanSeoul-Pyongyang canal or anything of its ilk. But from what I have gathered about President Lee, he was elected on the basis of being a person who is able to get things done. Construction is his forte; he built his reputation from the period when he headed up Hyundai's Construction and Engineering division. Seoul is littered with his work - Seoul Forest, the restored Chungyecheon stream and the City Hall square were all built under Lee's mayorship of Seoul. This is a man who likes two things: building things and getting things done. And Mr Lee does not seem to be the kind of person who will go back on his word after picking up just shy of 50% of the popular vote last November. The Grand Canal will be built, ladies and gentlemen, like it or not. So probably the best course of action here is not the dismissive "ah, it'll never actually happen" approach, or harboring a sense of outrage. We had just better learn to live with the idea of a Grand Canal, and think about how it can best be done. Last issue, we ran a nice article by Park Ki-shik, the Vice President of the IT Services Research Division at the Electronics and Telecommunications Research Institute. Mr Park wrote of his vision of a high-tech canal that uses RFID chips on the boats which use the canal, building a WiBro network along the waterway, and so on. Mr Park's piece might have got a lot of people thinking. Suddenly the image of the canal has gone from some muddy, polluted stream full of mosquitoes and bike parts to a futuristic waterway that sounds like something out of a sci-fi novel. What if we all just stopped hating the idea of a Grand Canal and thought of ways to help it become something we can all be a part of? A canal is an idea that seems, on the surface, to be straight out of the history books, but if we can find a way to integrate the both the construction and the operation of the canal with IT, it suddenly becomes a whole new proposition. In fact, construction and IT are arguably two of Korea's three primary industries - with automobiles the third. This country is bristling with young, hungry technologically-gifted experts who have good ideas by the bucketload. What we need is a forum, a chance for these people to suggest and debate possible ways for IT projects to help the canal be a success. We need RFID tags on ships and on cargo, so customers can trace where there product is. We need digital video links and Wireless Internet functions so that the crew of the boats and staff at stations along the waterway can be in constant contact with ports and harbors. Or maybe we do not need anything of the sort. But the government needs to do the decent thing and let the IT community in on the canal plans before any further action is taken. IT must play its part in this and every aspect of Korean life, for the sake of the economy and the future. If the Grand Canal is going to live up to its name, it needs to look like it belongs in the next century, not in the last one. TA KOREA IT TIMES April 2008 _ 15 Cover Story Semiconductors and the Automobile Industry The Way Forward? A utomobiles are not just the combination of their metal parts. In the contemporary auto industry, they are more than what they look like. They are the creatures that come from the electronic logics lagoon. Without electronic functions and chips, automobiles are no longer automobiles. The things we drive around in every day are totally different from what Henry Ford originally intended them to be. Modern automobiles are required to be more comfortable, more reliable and safer for the convenience of drivers. To this end, they need to use a lot of electronic chips and sophisticated parts, all of which are smaller, lighter and increasingly complex. If automobile manufacturers fail to meet diversifying customer needs, they will go bankrupt immediately. Electronic Control Unit, the ECU, Engine Fuel Injection (EFI), Anti-lock Brake System (ABS) are modern devices that consumers take granted as part of the modern driving experience. Navigation and mobile television, like DMB, are also regarded as important commodities for drivers. Lee Yoon-jong, Director of Dongbu HighTek, explains, "Most people don't think about how it is possible for drivers to have so many functions at their disposal? None of this is possible without semiconductors. In calculating speed, igniting engine, and injecting gas supply, automobiles need state of the art semiconductors. Light Emitting Diodes cannot do without them." He says, "Sensors installed in every car are the highlights of semiconductors. Sensors that keep you a distance from cars driving ahead of you, sensors that identify dangers out- 16 _ April 2008 KOREA IT TIMES Is convergence technology between car-makers and the semiconductor sector a way to make Korea more competitive in both industries? We take a closer look. side on the road at night, sensors that measure the air in the tires. They are all territory that semiconductors can conquer." Lee asks up to imagine that Micro Controller Unit is like a device that has 100 small computers inside. According to him, it is like a brain that controls all the sensors, and such systems as DMB and navigation. Ultra-high frequency chips for satellite communication and chips for multi-media are becoming a necessity for automobiles. The ratio of electronic function in automobile system will reach 40%, a huge increase of 20% from 2005. Semiconductors will take care of more than 80% out of that. Semiconductors for cars are different from those used in cellular phones, display, and other electronic appliances. Semiconductors for auto are the things that enhance the convergence of cars and semiconductors, thus creating new markets while semiconductors for other products are the decisive things that make products what they are. In this sense, we can say we have two kinds of semiconductors. For the past 25 years, semiconductor makers have concentrated their efforts on the markets of memory fields, even though two thirds of the world market comes from system IC, where Korea has a relatively low level of competition. In order to catch up with the rest of the global market, government and business circles alike have worked hard, but in vain. In this context, semiconductors for cars can be a springboard for makers to build the industry up to right level. There are a few makers that can produce semiconductors for cars in the global markets. If Korea could be one of them, Korea could be more competitive in terms of both quality and technology. Even though Korea is one of the major auto exporters, this country still remains behind in this area. Experts point out that making semiconductors is more profitable than worrying about where they end up. As cellular phone and display solutions have become cash cows for Korea, the ability to make cars can help semiconductor makers compete in the world market. If Korea can converge them, it will find its way to victory in a high value industry. CGE H ow many people still use diary to jot down phone numbers today? How many people try to memorize song lyrics when they can read the lyrics on a screen and sing along? It all comes from the neverending development of the semiconductor. People today are all too reliant on the semiconductor - its elephantine memory and analyzing skill are second to none. A semiconductor, in general, is the major component that makes up the rectangular shaped chips that are used in almost every electronic device we use today. Semiconductors, which variably conduct electricity though the use of materials like silicon, diamonds and aluminium are essential parts of a whole host of modern electrical devices. Without them, computers, cellular phones, digital audio players and the rest simply would not exist. Semiconductors are divided generally into two categories: memory semiconductors and non memory semiconductors. Memory semiconductors are those that are used for saving information. Non-memory semiconductors, on the other hand, are for the more complex task of information processing. Dynamic Random Access Memory chips (DRAM), Static RAM (SRAM), and Video RAM (VRAM) are classified as memory semiconductors. NAND, or Flash, chips - used in USB memory devices and the like. Computer Cental Processing Units (CPUs), multimedia semiconductors, cell phone chips, Merged Dram Logic chips, power semiconductors, discrete devices, and micro processor are classified as non-memory semiconductors. Memory semiconductors have enabled electronic devices to remember and record information so that it can be used at anytime if needed. Samsung have written a brand new chapter in the world semiconductor history books since the Millennium by Everything You Always Wanted to Know About Semiconductors - But Were Afraid to Ask What are semiconductors? And why are they so important to Korea? We answer all the questions you might have about computer chips. investing a lot of money over a short period of time to make a new version of the memory chip. At present, memory chips are normally produced in gigantic quantity, to be sold on a large scale around the world. Non-memory chips, meanwhile, are like little analysts, who are in charge of information processing. Intel Pentium's CPU is a good example. Non-memory semiconductors require high technology in circuit design. This kind of semiconductor is mainly used in mobile phones, DSP chips (used in radio, sonar and multimedia devices), and micro controllers, which are widely applied in various areas like personal computers, communication devices, electronics, and automobiles. Korea is highly competitive in the memory semiconductor market, yet 75% of non-memory semiconductors are imported from foreign countries. When it comes to the production of memory semiconductors, a lot of investment makes it possible to pro- duce a vast quantity of these, as they are always in high demand. Meanwhile, non-memory semiconductors are produced in smaller quantity with the use of high-value technology. With a little investment, a huge sum of profit can be expected. This is why Japan has been giving its all to non-memory semiconductor production. The new trend in global markets towards multimedia functions in electronics and computers means that non-memory semiconductors are suddenly in high-demand. DRAM and NAND Flash memory are still by far the most popular memory semiconductors on the market, yet their price are sinking without few signs of recovery. According to a Taiwanese surveying company, DRAM Exchange, the price of a DRAM DDR2 512Mb 667ß÷ chip in September, 2007 was $2. In December, the price dropped drastically to $0.88, though there is hope, as the price battled it way back up to $0.94 in February 2008. CGE KOREA IT TIMES April 2008 _ 17 Cover Story Briefing - The Korean Semiconductor Industry Samsung - Memory Leaders S amsung is well-known around the world to just about everyone. However, whenever nonKoreans come to this country for the first time, they are blown away by the whole Samsung experience. Samsung make not only phones and computers, it seems, but microwaves, fridges, cars and even forklift trucks. Little can compare to the success of Samsung's semiconductor business, though. Very few companies, if any, have made as much money when it comes to semiconductors as them. The history of Samsung goes back to before the Second World War, but the most profitable arm of the company, Samsung Electronics, was not founded until the end of the 1960s. Since they started making memory semiconductors, Samsung have pretty much remained at the front of the market, though they lag behind American giants Intel when it comes to the industry as a whole, as nonmemory semiconductors, the kind usually used in computer processors 18 _ April 2008 KOREA IT TIMES and the like, are often far more profitable. In 2005, the company was hit with a scandal when they, along with rivals Hynix were convicted of taking part in a DRAM price-fixing scam at the end of the 1990s. A court handed them a gigantic $300 million fine. Controversy has not left them alone, though, as a further memory scandal dogged them in 2006, with two of their senior memory chip employees hauled into court in the US on further charges of price fixing. Regardless of this, they have stayed on top, and hope to maintain their high industry ranking in the future. Samsung's big strategy to shake the semiconductor world now is its Charge Trap Flash (CTF) NAND technology, the world's first 40 Nano, 32 Gigabyte NAND flash memory chip. This semiconductor is revolutionary in its size. It is 1/3000th the thinkness of a piece of human hair. In other words, a 32 Gb memory capacity in a size of a thumb nail that holds 328 memory elements with no errors. When these 16 NAND Flash components are put together as a 64 gigabyte memory card, 400 years worth of the contents of this monthly magazine can be saved, which is the equivalent to 36,000 pictures, 40 movies, and all the geographical and cartographic information in the world. Ten cards like this can save every single page from the 2,200,000 books in the National Assembly Library in America, and literally make the phrase, "a library in your hand" come true. Samsung predicts a huge success in the NAND flash market over the next five years after making its debut in 2008. Samsung Electronics also developed a 512 Mb Phase-changeing RAM (PRAM) and a System on Chip for hybrid drives. A Samsung spokesman said, "Korea is no longer weak in the nonmemory semiconductor market. As of March 2008, 20,000 different kinds of non-memory semiconductors are going to be displayedon global market and will take up 70% of that market.". However, taking up a large space in the market still does not automatically mean more money. Korea is a country that has to sell low-priced semiconductors to buy oil, something that is becoming more an more expensive by the year. In short, if Korea were be able to by a barrel of oil by selling 50 semiconductors in the past, now this country has to sell in excess of100 to buy a barrel. Although the demand of memory-semiconductors is high, only a small amount of profit is expected in spite of large sum of investment and time. Intel and Toshiba's NAND Flash prices are decreasing every month. And the question we all want answered is this - Will Samsung's faith bring about miracles for the Korean market once again, or is there no hope this time? CGE Hynix - Back to Non - Memory the Way Forward ? T ake a trip to Icheon, in the suburbs of Seoul, and you will find a town dominated by a single company. Just as Suwon is Samsung City, Icheon is Hynix Town. Founded in the early 1980s, Hynix came into the market at exactly the right time to make an impact on global markets. PCs were starting to become commercially successful, and the mobile phone, as we know it, was about to be born. The Japanese semiconductor industry, which had been the major player on the global market, was in terminal demise, and Korean labour prices were still relatively cheap. By the mid 1980s, they were producing 256 Kilobyte Dynamic Random Access Memory (DRAM) chips, and selling them at very competitive prices. The company continued to grow and expand their operations, developing their DRAM operations. In the 1990s, they enjoyed further success as mobile phones, laptop computers and digital cameras started to become more than just gadgets, but everyday household appliances. They went into the new millennium on a high, after successfully merging with LG Semiconductor, and in the early part of this decade, they made it up to the rank of World's number two memory chip producer. This decade, too, has seen Hynix involved in a bitter war of words with other Asian companies after a sudden loss in trade saw the World Trade Organisation swoop in to bail the company out as huge debts threatened to drive the company into bankruptcy. In 2004, increased competition and more debts saw the company sell off its non-memory business, for a total of $822 million, to the American Citigroup corporation, and renamed MagnaChip. At the end of last year they announced a 24% decrease increase in revenue from the previous quarter's 2.44 trillion won, and a 29% decrease from the 2.61 trillion won in the same period last year. However, according to iSemi, global semiconductor research company, Hynix still ranks as the World's 6th biggest semiconductor firm on the planet. But with memory chips starting to plummet late last year, Hyunix's new CEO, Kim Jung-kap announced last October that Hynix was going to go back into the non-memory industry. He was quoted as saying, "We will restart our non-memory operations. We will do it through water-tight preparations and strategy." The Rest Minnows Also Have their Part to Play Frans Van Houten, Chief Exectuve of NXP Semicondutors, has said he believes the world semiconductor industry is worth around $213 billion a year, so there is plenty more money to be made in the semiconductor market, though it is well-renowned as cutthroat industry - full of intense rivalry and dramatic cycles of huge market growth and sudden falls. But even in the brutal sink-or-swim environment of the industry, there are other Korean companies doing well in the semiconductor world. Other success stories include Dongbu Electronics, who built their reputation on supplying semiconductors to American electronics manufacturers Texas Instruments. Dongjin Semichem have been around since the sixties and have operations running all around Asia, including Tiapei and mainland China. And Fine Semitech are a company that has also been active on the LCD front. According to the Korea Seimiconductor Industry Association (KSIA), there are 223 member companies in their organization. The majority of these companies are involved in the equipments business, while materials and design are other major fields for Korean semiconductor-related companies. TA KOREA IT TIMES April 2008 _ 19 Cover Story A sia at Semiconductor War Korea is stuck in the midst of a pitch battle that has the whole of the world in crisis over computer chips T he annals of history are littered with some very strange wars indeed. In the middle ages, the Hundred Years War between England and France lasted more than a hundred years. This while the 1896 Anglo-Zanzibar War was a mere 38 minutes long. 1969 saw El Salvador fight out the Football War - which started with a riot at a sports match. In the 1970s, there were the Cod Wars a row between the UK and Iceland over fish. And now, after all these bizarre wars in Europe and Latin America, Asia is having a go with a strangelymonikered conflict of its own - the Semiconductor War. A semiconductor is possibly the most boring-looking piece of machinery mankind has yet come up with. 20 _ April 2008 KOREA IT TIMES Yet the biggest companies in Asia are entrenched in a vicious guerilla war over these computer chips. And if something is not done about it, things are going to get a lot worse. After much speculation and worry, it seems the worst has happened, as feared, with DRAM memory chips starting to tumble in price. Samsung and Hynix are feeling the burn as NAND flash players start to lose their value not only for them, but for international companies like Intel. Yet in the wake of tumbling prices, the blame game is still raging, with Asian countries all queuing up to point the finger at each other, accusing each other of being at fault for the crisis in prices. Well they might, though - computer hardware spells pretty much primary industry for Korea, Taiwan and Japan. However, for those not of us blessed with insider knowledge, it is hard to understand just what these warring countries hope to achieve by taking sly digs at one another. March saw Korea appeal to the World Trade Organisation (WTO) with complaints about excessive Japanese import duties. But this particular bitter battlefield is not a new one. War has pretty much been raging on this stage since the World Trade Organisation (WTO) bailed out Hynix, a Korean semiconductor company and the third biggest semiconductor manufacturer in the World - back in 2002. The Japanese were outraged then, accusing the WTO of subsiding Korean semiconductor makers, and have since then hoiked their import taxes up to a prohibitive 27% for all Korean memory chips, thus effectively cutting Korean companies out of their own domestic market. Given the fact that Japan is a massive electronics exporter, this has been a huge obstacle for Korean firms - just about everything electrical nowadays needs a semiconductor. Taiwan have also waded into the battle. Last year, Fank Huang, chairman of Taiwanese chip manufacturer Powerchip Semiconductor Corporation, accused Korean company Hynix of attempting to flood the market by increasing their annual bit growth by 120 percent. This was against an average of 70 to 80 percent among Taiwanese manufactures. But China, relative newcomers to the semiconductor business, but a powerful new player in the industry, are not content, either. They want to get involved in the semiconductor scrap as well, and have themselves been accused by Taiwanese companies of cases of industrial espionage. However, that is not all - the Asiawide semiconductor war has spilt out across the oceans to a whole new continent. It seems the USA want to play, too. Over in the America, Intel, the company that created the semiconductor, have been locked in a bitter scrap of their own, trying to outdo their nearest country rivals. A second American Civil War has broken out with On Semiconductors buying up rivals AMI and slashing 200 jobs at the firm to streamline operations. Advanced Micro Devices have just released a quad-core processor chip, only to be hit with the news that rivals Intel are on the verge of releasing a six-core chip. Goodness knows what happens when octa-cores start to hit the market. As a result, a new trend has emerged in the conflict - joining forces with companies from your own country in order to better perform on an international scale. In Japan, Toshiba and Sony have agreed to form a new joint venture for the production of high-performance semiconductors. These flashy new semiconductors will be used in PlayStation games consoles. If this were not enough, Europe traditionally the poor relative in all things semiconductor related - has also been keen to drag itself into the war, with talk of a potential merger between the continent's three biggest Semiconductor companies, Holland's NXP, Germany's Infineon and FrenchItalian outfit ST. Where will the mad one-upmanship and inter-continental sniping end? According to experts, there may be more gloomy news for this war-ridden industry. In March, Gartner, IT Researchers, said there was a "glut" in the inventories of semiconductor producers worldwide. And a "glut" in inventories is not good news, either. It means that these companies' warehouses are filling up with cancelled orders or unsold stock. There are too many chips being produced in today's semiconductor world. The President of the Semiconductor Industry Association, George Scalise, said in a statement. "Even with healthy demand from important end markets, a very competitive environment resulted in price pressures for these products which in turn led to continued erosion in average selling prices." A Samsung Semiconductor researcher, who, due to the sensitivity of the subject, asked to be only identified as K., says that he thinks price wars are inevitable in the modern semiconductor environment. He explains, "As a rule - the semiconductor industry works like this: a company develops a new technology in semiconductors and makes a profit by selling it. But then other companies come along and copy the chip and put their version on the market. In that kind of environment, it is hard to avoid dumping - with companies trying to put a huge amount of stock onto the market before their rivals arrive and undercut them." Samsung has led the way in semiconductors since the DRAM boom in the 1980s, and K. explains that this is vast amount of available produce has flooded the market and caused a price war," says K. It has done so as companies reduce prices on stock that will be out of demand should it sit in their warehouses too long. Is there an end in sight for the Semiconductor War? No chance, according to K. Indeed, new breakthroughs in semi- due to the fact that their technological research and development has been second to none thus far. According to a principle called Moore's Law, developed by Intel employee George Moore in the 1960's, the capacity of computer chips doubles every two years. However, Moore's Law, as the man himself has said, is not an infinite projection. Moore says that physical limits will start to restrain the process in around 2010. And K. agrees. He says, "As semiconductors respond to market needs and get smaller and smaller in size, this makes it harder and harder to make advances in technology." "As the need to develop new technology increases, smaller companies have ganged up together to produce a high quantity of chips. At the same time, bigger companies like Samsung have not cut their production, and this conductor etching machines are set to bring rich rewards for companies that have invested in them. Says K., "Toshiba is spending an enormous amount of money on expanding a new product line so it can recapture the number one spot in the semiconductor standings." Semiconductors are just little bits of plastic and metal, but as they are integral parts of a whole host of electrical devices, they become of utmost importance not only to the individual companies who produce the chips, but also the countries, like Korea, whose entire economies rest on the exporting of electrical goods. The war might seem petty, or even ridiculous to outsiders, but for those involved, it is sink or swim time. There have already been casualties, and there will be more to come in the very near future. TA KOREA IT TIMES April 2008 _ 21 Policy First Month No Bed of Roses for Lee A fter a month in office, President Lee Myung-bak said that four weeks had gone by like six months. What he meant to say was that his work as President was much tougher than he had thought. Lee, the former CEO of Hyundai Construction who was once nicknamed "the bulldozer," was very confident that he could boost the economy from its slowdown during the tenureship of former President Roh Moo-hyun. But things were not that simple. Since he became President, the economy, at home and abroad, has worsened with uncertainty snowballing. Overseas, skyrocketing oil price and the endless credit crunch have left few options for Lee, who appointed can-do spirited economists as key ministers in his cabinet. Oil prices soaring to $100 a barrel seemed to deliver a fatal blow to his original plan to increase the economic growth rate to 7% within his first year of office. He, a man who knows what $100 a barrel oil means to the economy, could not help changing the plan, lowering it to 5%. But experts strongly recommend that he should reduce it yet further -to just 4%. The Credit crisis from U.S.A.managed to cast a very thick, dark over the head of President Lee. Even before Bear Stearns collapsed, US investors in Seoul had started to sell off their assets including stocks, meaning the KOSPI, the Korean stock market index, had a Black Monday experience all of its own. Market analysts say that stronger shocks are yet to come before the likes of Hank Paulson, the US Treasury secretary, can afford any time to relax. Can the "bulldozer" defeat his enemies? Experts are starting to express their doubts. They answer that Mr. Bulldozer will come to the sudden realisation that there exist some things he cannot do in business. To make matters worse, the former CEO faces a huge drop in popularity within Korea. In Korean political culture, popularity sometimes is more important than economy and if a leader has a good public image, he can do everything with the full support of the people. Harsh financial conditions mean that Lee Myung-bak, Korea's new President, has had a tough first month in charge of the country. 22 _ April 2008 KOREA IT TIMES All in all, things are looking less rosy by the day for Lee. Fortunately, however, it seems that he believes he has the answers to all these problems. The first plan he has produced to solve theses puzzles was to start creating a business-friendly atmosphere in Korea. Here. businesspeople have felt the effects of working under a leftist regime for the past five years. His visits to business associations right after his inauguration were characterized as signs that he would be different from former President Roh, who was branded as a left-wing social planner by conservatives. Next, he ordered his cabinet members to pull out all the "electric poles," the name his regime has fiven to antibusiness regulations. The term "electric poles" came out in a meeting presided over by Lee when he unveiled a complaint about electric poles. In that meeting, he told a story about companies in an industrial complex in a southern city who had asked civil servants several times to to remove the poles that prevented trucks with heavy and bulky cargo loaded from making u-turns because they stood in the way along the side of the road. Lee reprimanded them for neither listening to the complaints nor removing the poles. After his remarks in the meeting, the poles were quickly removed, and the power lines were buried under the ground. Since this story, local journalists have used the term "electric poles" when they write stories about reducing inefficiency and deregulation. Deregulation is the backbone of his business-friendly policy. He thinks that all the provisions that have blocked businesses from moving forward and backward freely should be gone. No regulation should be imposed on the mutual capital investment between mother companies and offspring companies. In order to help domestic companies defend themselves from being attacked by foreign capital ventures that are hungry to make profits through mergers and acquisitions, he will permit owners and leading shareholders to take measures like poisonpills and golden shares, both of which in action in advanced capitalist countries. The Ministry of Justice and the Ministry of Finance are working together on the matter. Revision of tax-related laws is likely to get under way sooner or later, for the sake of business circles. Speculation has it that the government will lower the corporation tax rate and cut personal income tax. If the government can save 10% of its budget, tax cuts can be made. Lee seems to think that there is a lot of room for budget saving, something he made an artform of when he was a mayor Seoul. To find some mokgeri or food for tomorrow, as the Korean idiom goes, is Lee's main duty. Even though Korea has been doing very well in such world markets as shipbuilding, semiconductors, and automobiles, if we fail to find new sources of mokgeri, the future will be gloomy. One source of mokgeri could the Information Technology sector. As a matter of fact, for the past few years, Korea has enjoyed a relative superiority in IT. In Korea, wired and wireless broadband services provide people with a new horizon of communication. Cellular phone makers have set a record for production, with Korean firms among the seven biggest retailers of handsets. New services, such as WiBro and DMB are the successors to the throne of the handset. WiBro is a new trend of wireless broadband that enables broadband users to use the Internet while in cars, trains subways, anywhere when they are on the move. The seamless WiBro is now being applied in commercial services in Korea, while other countries are also testing their own services. DMB is also a new trend in television. As is well-known in Korea, Digital Mutimedia Broadcasting is a service that works in conjuction with cellular phones. You can watch TV programs on it when you are not using its phone functions. With DMB, you do not have to rush to home or stay in an office or pub to watch the Super Bowl. Samsung and LG Electronics are competing in a competitive world market with brands like Nokia, Motorola and Sony-Erickson. The question remains unanswered as to how President Lee can keep the IT flag flying in a market where uncertainty rules. Experts point out that everything is not favorable for Lee. They say that Lee will need time to do something for IT expansion because he has shut down the MIC (the Ministry of Information and Communication) that played a key role in encouraging the IT industry and made it blossom in the rugged country of IT. The new Committee of Broadcasting and Communication, which will replace the MIC is still in the chaotic midst of a political controversy over the appointment of chairman. President Lee is writing a grand novel. The title will be "The Great Canal of Korean Peninsula." If his party wins the parliamentary election on April 9th, he sure will put that fanciful scenario into action, overcome any lingering doubts about the feasibility of the project from both inside the government and outside it. If he obtains a majority in the election, his speed of action will be fast, even though the anti-canal voices are getting stronger and stronger by the day. As the former CEO of Hyundai Construction is really good at construction. He has often referred to the success of Dubai, where people have succeeded in building a new city in a desert, one free of regulations. It is one that has attracted more than ten thousands of foreign companies in less than twenty-five years. But Dubai can could turn out to be little more than a mirage in the desert. Soaring oil prices and the credit crunch will not permit Captain Lee to sail a peaceful way. If he fails to get a majority in the April election, he might not even be able to raise the anchor on some of his proposed reforms. It all means that the second month of his presidency could turn out to be an even longer one than the first. CGE KOREA IT TIMES April 2008 _ 23 Policy 6% Economic Growth - Spring Arrives For the Korean Economy? "3 50,000 new jobs and the maintenance of consumer prices below a 3.3% rise in and 6% economic growth in Korea." After a long hard winter, this sounds like the first swallow of spring to Koreans who have been suffering from a harsh economic slowdown. On March 10th, the Ministry of Strategy and Finance (MOSF) reported about the new administration's plans and goals to President Lee Myung-bak. The Minister of the MOSF, Kang Man-soo, said that he planed to cut corporation tax by 3 to 5% this year, to 11-22% next year and to 10-20% by 2013, The current rate is 13-25% percent, depending on the size of a business. Minister Kang also showed his strong willingness to act by mentioning that they would do their best to transform the old economy into a more capable one with 7% growth ability in the new government era. Furthermore, the new government decided to expand the long-term growth foundation by increasing investment in research and development (R&D) to 5% by 2012, from a current rate of 3%. The new administration's other efforts were made known on March 3rd. Not only will they decrease oil prices by 10%, but they will also use 4.8 trillion Korean Won, the international surplus fund of the central government, to support tax cuts and the revitalization of economic projects. To succeed in this goal, the government is trying to increase corporate investment and Korean consumers 24 _ April 2008 KOREA IT TIMES The government reveals new financial plans for the goal of achieving a 7% total national growth rate Kang Man-soo, Minister of the MOSF domestic activities, through deregulation and tax cuts. Needs of the Korean government in times of global recession There are difficulties in promoting these new plans, while there are more silver linings in the plans. Korean economic power has been weaker of late, and people have a hard time of it in worsening external and internal conditions. In particular, the US economy is experiencing a slowdown that negatively affects the entire global economy. It is currently causing worsening trade terms and higher oil prices. It can also raise the price of raw materials, consumer goods and services as well as creating a bottleneck in domestic spending and job generation. Due to the global recession, MOSF has set a goal of 6% economic growth from the 7% total rises in President Lee's period. In addition, the new government has planed three "must-do" details which are the recovery of Korean economy, continuous growth and long-term growth. This means taking step-by-step action in detailed project-by-project analysis, with specified action-dates. The new government has also tried to encourage active business trades with four principles made in order to conquer the current economic barriers. The principles are minimizing regulations, minimizing tax rates, globally standardizing finance and constituting the relations between labor and capital. The government hopes these new economic plans reflect Koreans' wishes wto see the depressed current Korean economy expetience a new revival. Koreans have a thirst for the "booming economy" which President Lee' has promised will materialize in his tenure as head of state. Korea IT Times KEJ Real-time News in Your Browser www.ittimes.co.kr Government to Focus on Investment Growth I LeeYoun-ho, Minister of the MKE n its business plan report to the President Lee Myung-bak on March 17, the Ministry of Knowledge Economy (MKE) focused on investment stimulation and securing future growth engines. In particular, important industrial policies such as "combination of IT with other mainstream industries," "fostering parts and materials industry," and "strengthening service industry" are leading to securing future growth engines. The MKE has made a plan to spend about $10 billion on the development of IT-based convergence technology until 2012. That entails combining IT with five mainstream Ministry plans to boost the parts, materials and service industries. industries - shipbuilding, automobile, medical, national defense, and construction - consequently creating high value added continuously. Minister Lee Youn-ho said, "The important task we are now facing is to realize the creation of high value added on a sustainable basis through IT-based convergence technology development and intensive fostering of parts and materials industry." Innovate Korea In an effort to enhance the competitiveness of SMEs (Small and Medium sized Enterprises), the MKE is going to start an innovation campaign (called Innovate Korea) from June this year. In line with the fundamental changes in the national industry framework, the fostering strategy for SMEs also has to be changed. The MKE believes that SMEs should be able to support the progress of large companies and that the solid partnership between small companies and large companies is not only critical for a healthy national economy, but also very important for the enhancement of Korea's industrial competitiveness. Recently, Minister Lee has been a series of field visits emphasizing the importance of helping SMEs stand on their own two feet. Through the "Innovate Korea" initiative, the MKE is going to spread this movement all around industrial fields starting from June. The productivity of domestic SMEs now stands at 35%, compared with that of large companies. In case of developed foreign countries, their SME's productivity reaches to about 60% of their large companies. The MKE plans to raise the productivity level of domestic SMEs to that of advanced countries within 5 years through this campaign. Creating a better investment environment Investment attraction plays a key role in stimulating the real economy. Smooth money flow and active investment is material to revitalise the difficult current situation of our real economy. According to a report from the World Bank, the business environment index of Korea ranks thirtieth. In comparison with its trade volume ranking of 10th or 11th, this is a very big discrepancy. In particular, in the case of business foundation, it ranks far lower because of its overly complex procedures. Minister Lee said, "Until 2012, we will raise Korea's investment attraction to the make at least the top ten. KOREA IT TIMES April 2008 _ 25 Although investment-related laws and regulations are mutually connected to many ministries and government organizations, the MTE will take the lead in finding out about any hindering factors in attracting and stimulating investment, while checking how the alternatives are being implemented in the field." Before long, a "Business Support Center" will be established and enter into operation to deal with all kinds of problems related to investment, business environment, and regulations in a single place. Bridging the gap in parts and materials In the MKE's business plan report, President Lee has stressed the importance of parts and materials industry and revealed his intention to foster the industry. Prior to the report he said, "Although the parts and materials industry plays a important role in the development of our economy, the problem of the technology gap between Korea and Japan still remains unchanged. Therefore, we should push ahead with competitiveness improvement of parts and materials industry." Before this, President Lee had already given an instruction that we should seek the way to solve the trade deficit problem between Korea and Japan by means of fostering the parts and materials industry. On 20th April, he is scheduled to visit Japan. For this reason, his remarks on this problem before his visit to Japan attracts our attention. It is also reported that among the attending members to his visit to Japan are many businessmen engaged in the parts and materials industry. In order to foster the parts and materials industry, President Lee has pointed out the following two strategies: securing technology through foreign investment, and joint technologi26 _ April 2008 KOREA IT TIMES cal development through cooperation between SMEs and large companies. Soon after the MKE's report, President Lee visited Asahi Glass, of Japan, located in Gumi Industrial Park, thus giving a hint that the expansion of foreign investment and transfer of world-class technology is vital to the revitalization of the Korean economy. Meanwhile, during the report concerning the energy-saving policy, President Lee made the following comments on the bus lanes in the downtown Seoul, reflecting on his days of served as Seoul mayor: "In the case of a serious policy, government officials have to do their best to persuade people with a positive attitude, although it will bring more or less inconvenience on the people in the short term." He continued, "The bus lane has caused inconvenience to some citizens, but from the aspect of public interest, it has made a great contribution to energy saving." Transfer of government jobs to the private sector Many government jobs related to technologies are to be transferred to the market or to the private sector. This job transfer is based on marketcentered and field-oriented management philosophy. To begin with, the MTE plans to transfer certificate jobs related to LS (Logistics Standard) and ES (Excellent Software) - both jobs now belong to the KATS (Korean Agency for Technology and Standards) - to the private sector respectively in September and in November this year. Also, jobs related to recycled products and new products are to be transferred to the private sector. The major functions of KTTC (Korea Technology Transfer Center) are to undergo sweeping changes; the technology related jobs such as technolo- gy transfer, technology evaluation, and M&A brokerage are to be transferred to the private sector until the end of this year. As a result, the KTTC is scheduled to deal with technology infrastructure, including technology evaluation, specialist fostering and management of unused patents. Accordingly, its name will also be changed. Sharing facilities and the equipment of universities and research institutes will be made available on a no-fee basis or on a common use basis. These facilities and equipment, supported by a government budget, will be used by SMEs. In fact, there are a lot of idle facilities, idle equipment, and idle devices in government organizations, universities, and research institute, which cost much money for both storage and maintenance. Fund-raising initiatives In order to invest money in the promising industry, the MTE plans to raise funds so that it can be used for the future growth engine industry. 50% of the fundraising comes from government, and the other 50% from the private sector. So it can be called a semi-official fund. To deal with fundraising for the future growth engine industry, the MTE has decided to set up a new organization named "growth engine bureau" under its umbrella. This fund will begin with a budget of $40 million, and will increase by US$ 20 million each year until 2012, eventually reaching US$ 100 million. Venture capital will also be raised and mezzanine financing will be expanded to promising SMEs. KWH Policy I Convergence Master Plan Set to Boost Growth n a business plan report to the President Lee Myung-bak, the Ministry of Education, Science and Technology (MEST) has put its priority on the private sector-driven strategic distribution of R&D resources and research capacity strengthening of domestic universities and research institutes. The MEST has decided to make a "convergence technology based growth engine master plan" by August this year through the National Science and Technology Council (NSTC). This master plan will include diverse convergence technology based R&D tasks of many related government organizations. For example, the following are expected to be included: convergence technology stimulation, new industry creation (u-health and robot), and industry intensification (next generation automobile and u-city). In order to facilitate the participation and investment from the private sector, tax reduction measures are also to be made until December this year. For an effective distribution of R&D resources and efficient investment, MEST is to review the whole process of national R&D projects: planning, resources distribution, project management, evaluation, and utilization of results. And from the overall point of view, inefficiencies will be removed. Until August this year, the Korea Research Foundation and the Korea Science Foundation will be merged. By revising existing rules and regulations, the different project management methods of each government organizations are to be integrated and simplified. The integration of R&D evaluation systems is also expected to follow. Industry-university linkage programs are to be introduced. In order to expand the research capacity of universities, the government plans to extend its financial support from a current 15% up to 23% by this October, and at the same time it will support the establishment of three or four industry-university technology holding companies in order to commercialize the technologies that many colleges and institutes hold. A task force team will be set up for R&D and manpower fostering in an effort to strengthen the research capacity of domestic universities and research institutes. Council to become control tower for R&D The National Science and Technology Council (NCTC) has become a top national decision-making body for science and technology policies. Because of this, the status of NCTC risen, for the position of deputy prime minister for science and technology, who was responsible for planning and coordinating of major policies for promoting science and technology, has disappeared from the new governmental organization. The existing organization of the NCTC is rather complex: it was composed of one Steering Committee, one Council, and two Special Committees. The steering committee and special committees have also two or three sub committees. At this point in time, however, the MEST has simplified the existing complex system as Kim Do-yeon, Minister of the MEST follows: one Steering Committee and five Specialized Committees, all under its control. It also attracts people's attention that the NCTC has entered under the direct control of the President. Up until now, the existing NCTC has been composed of senior high-ranking officials, but had been a nominal body without real power. Now under the new government organization, the NCTC has become a real control tower for R&D, planning and controlling mid- and long-term R&D development. The First Secretary of education, science, and culture in the presidential office is in charge of the Steering Committee, thus playing a linking role between Cheong Wa Dae (the presidential office), MEST, and government-owned research institutes. This means that the presidential office will directly participate in the mid and long term major policies for science and technology. The five specialized committees under the Steering Committee are mainly composed of experts coming from the private sector, in an effort to better reflect customer opinion. KWH KOREA IT TIMES April 2008 _ 27 Policy Land, Transport and Sea Ministry Urges Drastic Deregulation Increased competition and futuristic control centres pave the way for a new transport infrastructure. C hung Jong-hwan, the Minister of Land, Transportation and Maritime Affairs, has emphasized that his department will give top priority to lifting the regulations that hinder and restrict day-to-day business activities in order to revitalize the economy. Also, in an effort to foster construction and traffic as new growth engine industries, the Ministry of Land, Transportation and Maritime Affairs (MLTMA) has made a plan to step up an IT-based ubiquitous city (u-city) project and to set up Intelligent Transport Systems (ITS) as soon as possible. The ministry's seven major tasks are as follows: (a) drastic removal of regulations that hinder business activities, (b) expansion of future growth engine industry, (c) building global traffic and logistics network, (d) stabilization of real estate market and realization of housing welfare, (e) reduction of traffic congestion, (f) sustainable land management, (g) reasonable management of public construction project costs and budget saving. On the occasion of enacting a law for u-city construction support, the MLTMA is prepared to push ahead with the building of several u-cities on a full-scale basis, investing about US$ 100 million in R&D until 2012 in order to improve competitiveness. Following Dongtan City last year, it will build a u-city respectively in Yongin this year, Paju and Pangyo in 2009, Suwon in 2010, Sejong in 2012, and Songdo in 2013, consequently 28 _ April 2008 KOREA IT TIMES Chung Jong-hwan, Minister of the MLTMA providing about 2.3 million people with all the amenities of u-city by 2015. Also, in an effort to reduce architecture and construction-related regulations, it will extend the eArchitecture Information System (eAIS) nationwide until June this year, shortening the current required time of 60 days for permit and license of architecture to 15 days, eventually saving social costs of about US$1.5 billion a year. Meanwhile, in order to encourage LBS (Location Based Service) and stimulate the traffic and logistics industries, intelligent traffic systems are to be established as soon as possible. At the same time, it will contribute to fostering new growth engine industry, in areas such as traffic information services and intelligent automobiles. As of last year, 27% of all national highways have been equipped with ITS, but it will increase to 45% in 2012, and the current 800,000 subscribers of traffic information services is expected to increase to 5 million in 2012. By setting up an integrated information systems to cover land, sea, and air, the MLTMA plans to enhance the quality of logistics service and to foster logistics specialists. To this end, it will soon start to develop and complete an RFID based logistics hub information system in 2012, which will link all airports, harbors, and inland logistics bases. It is also set to introduce a Bus Information System (BIS) to provide transport news for local areas. This year, the system will be set up in Daegu, Ulsan, and Jeju, and next year the BIS will be extended to seoul. Meanwhile, in the report, President Lee made this comment, "The new government is pushing ahead with two major economic policies. Those are - strengthening competitiveness and drastic deregulation. Their success or failure hangs on the MLTMA's efforts, as about 50% of related regulations are MLTMA rules." He added, "From now on, taking into consideration the problems of pollution and environment, more effort is needed to make more use of railroad and sea transportation instead of land transport. Also, as far as logistics are concerned, Korea has to be the logistics hub for the Northeast Asia." KWH Digital Society Breaking the Code Having advanced IT skills does not mean you have to spend your life chained to a computer. Mok Ha-young gave up a career as a computer programmer to look for a different way to use her skills. She tells us her story. Who are you? Mok Ha-young is a 33 year-old Web Consulting Manager for joinsM, a company that provides marketing solutions for hospitals and medical clinics. But things were not always this way for her - once upon a time she was a successful software programmer for Choyang Shipping, one of the largest companies in the land at that time. She was working at the frontline for one of Korea's biggest industries, but when Choyang went bankrupt, she decided to go down a different career path. After almost four years at Choyang, Mok decided to call it a day on her software programming career, and instead to delve into the world of marketing. She says that she has never looked back since. Mok Ha-young - My Story Software Programming Korean programmers, maybe all programmers, even, tend to think of the programmes they make as their babies. We are immensely proud of them, and we feel they are very precious for us. It was the same for me when I was working as a programmer. I had to spend a few nights working straight through until the morning, but I was always satisfied with the results. My biggest happiness as a software programmer was seeing other people use my work in their daily lives. Marketing Marketing is more based on statistics than I thought. I often had to deal with accounting and statistics information as part of my job in computer programming. I had an idea, about how to improve some aspect of my company's marketing strategy. This idea was taken up, and it gave me a lot of confidence in myself. From then on, I became interested in marketing. Most of the people I used to work with are working as planners or consultants - it seems to have become the rule rather KOREA IT TIMES April 2008 _ 29 than the exception in the Korean programming industry of late. As part of my new job, I spend a lot of time with people. I am out and about, and spend time meeting new and diverse people - that is something that was not the case when I was working as a programmer. An edge in a new industry Online marketing is actually a fairly logical industry for a programmer to get into. We have a better understanding of the inner workings of the Internet than most people, we have the skills that a lot of companies need. Simple advertising and marketing looks ugly and modern Korean "netizens" see straight through it. We have the knowledge to make sophisticated marketing to attract Korean tech-savvy "netizens." A few years ago, people had to put in a lot of time and labour into marketing in order to get the desired result, but with programming skills, we can get the job done in much less time, with a lot less effort. This is my strong point in this field, and for anyone else who is in a position like mine. We can make, compile and understand data much faster than most other marketing people. We know and understand the trends of the Internet better than anyone else, we can spot what peoples' interests are and see what they want to spend their money on. Dreams I did not always want to be involved in marketing. Even before I studied computer science and became a programmer, I had other hopes for my future. When I was at high school, I dreamed of being a teacher. I especially liked geography, and my geography teacher, and I wanted to teach geography, too. But I failed the university test. It was the end of that dream, but it turned out to be a blessing in disguise for me. People say that everyone has three chances to "make it" in their lives. I think that teaching was my first one. On Korea and IT A lot of Koreans think that Korea is some kind of IT powerhouse, but I don't really agree. Someone I know who went to KAIST, Korea's top technology university, but IT salaries were leaving him in financial difficulties, so he ended up taking a medicine conversion course at another institute just to get by. Just studying pure science in this country will make it difficult for you to find a good job after you graduate. These kind of people often find it difficult to find work that is well paid. The government needs to support exactly this kind of person so that we can concentrate harder on development. Inspiration I have paid a lot of attention to what Steve Jobs, the founder of Apple, has had to say for himself. He was born into an unconventional family environment, and dropped out of university. 30 _ April 2008 KOREA IT TIMES What is most amazing for me is that he designed the Apple Mac computer in a converted garage. I think he shows us that the most important things in life are confidence and spirit. Importance of IT We live and breathe technology in the modern world. Can most people imagine even a single day without a computer on their office table at work? Most office workers would have to just go home if there was no terminal for them to use. We can communicate with the entire world at the touch of a button via email, and if that is not enough, we can use video calls to speak to people as though they were in the same room as us. We do not need bulky counting machines, calculators or long division on pieces of paper to do complex monthly account settlements - we just press a few buttons on our keyboards and the calculations are there instantaneously. Mok Ha-young was talking to Tim Alper Why are there so many different computer languages? There are thousands of programming languages, with new ones being created every year. But why have computer engineers created so many languages? If there were only one programming code - would our lives not be easier? Not according to C# Project Manager Eric Gunnerson. He explains, "Why are there so many kinds of programming languages in the world? You might as well ask why there are so many kinds of saw. There are different tools to do different jobs." So just as you might use a metal saw to cut through iron and a chainsaw to cut though wood, C++ might not be the right tool for fixing one problem, but it might be perfect for solving another. Interview Highlights N am Joong-soo, the chief executive officer of KT, started his second term on March 3 by holding a tea-time brainstorming session at the Media Headquarters of KT for half an hour. It was a unique oppertunity for KT staff to be able to have discussions on management issues. KT aired the talks with the CEO through its internal networks of MegaTV, WiBro, Satellite, and Internet so that 38,000 KT employees across the country could watch. He mentioned in the discussion that he believes KT should become a media-entertainment company by providing various content for customers through such media as TV, PC, wired and wireless Internet and mobile phones We spoke exclusively to Nam last month on the occasion of the confirmation of his second term. Q: Congratulations on your second term as KT CEO. Do you have any thoughts to share with us? A: It is a great privilege for me to serve KT again. I would like to say that my second term would not have been made possible without the devotion of all KT's staff. I owe a great deal to them. And I would also like to express my gratitude to our cus- Nam Joong-soo celebrates his second term as KT President Nam Wins Second KT Term tomers and, who have contributed to the continuing progress of KT. Q: You have spoken of your belief that high ranking officers at the company should spend more time out in the field, instead of staying in the office. Can you tell us a little more about it? A: There is a saying - there are three kinds of generals, the brave, the intellectual and the generous. But I want add one more kind to that list - the field general. The concept of field general means a general who prefers working in markets and workplaces to staying in their office. If you go out to see customers, for example, you can see what you cannot see in the office. You can hear complaints from customers more directly than you can behind your desk. Q: What is the media-entertainment business? A: We are living in an era of convergence. No single service in the IT sector can exist on its own. Look at the markets at home and abroad. TV is not what it used to be any more. The traditional fixed TV in your living room is now getting up and walking aroung with its owners. DMB is an example of this. Modern TVs can play multimedia contents, providing TV plus Internet serv- ices. Internet TV is the child of this convergence. The media-entertainment business is a new area that combines information and communication services with the entertainment service. In order to survive in fast-growing future markets, we have no choice but to educate the KT family and invest in assets. Q: SK Telecom bought Hanaro Telecom, second largest broadband provider. Will it be a threat to KT, as number one broadband provider? A: In the short term, that could be a risk to KT because the turnover might mean that we will face some harsh competition in the market would happen. But in long term, KT can take advantage of the competition to make KT stronger. Q: Analysts recommend that KT should merge with KTF, KTs offshoot mobile phone company to compete with the SKT-Hanaro group. What is your opinion? A: I am taking it into consideration. But the important thing is that a merger should be done in a way that help to cement competitiveness and giving added-values to customers. The merger should focused on the values of shareholders, customers and KT. Q: You played guitar six years ago for your staff when you were the CEO of KTF. What is the inspiration you were trying to give to your workers? A: A CEO playing guitar in front of workers was pretty much unthinkable in Korean business culture. CEOs were too often depicted as a person who has no charisma and does not smile in public. But things have changed. In order to change the culture, directors need to change their image. Younger people prefer a fun CEO to a boss who is stuck in their ways. A CEO can change the way his or her staff think, so that original and creative ideas can come out more freely. In this convergence era, a spirit of challenging and creativity is essential. And CEOs should spearhead that campaign. CGE KOREA IT TIMES April 2008 _ 31 U-life The City of the Future arrives in Incheon Songdo's International Business District promises more than just investment - its residents will inhabit a sustainable, highly-connected and intelligent City of the Future. A A projected image of Songdo International City cross the water from Incheon International Airport, you can see four brand new high-rise 60+ story residential towers located in the City of the Future being built today. That city is called Songdo International Business District, located in the heart of Incheon's Free Economic Zone. Songdo IBD officially opens in September 2009 as the first new city in the world designed and planned as an international business district. Songdo IBD is the closest city to the number one airport in the world Incheon International Airport will be only 15 minutes away via the new 7.4 mile superhighway bridge. This US$30 billion plus, 100-million square foot, master-planned Aerotropolis brings together urban, regional and business site planning along with international airport proximity in a syn- 32 _ April 2008 KOREA IT TIMES ergistic manner and is the largest private real estate venture in the world. The city's plan includes fifty million square feet of office space - including a landmark 65-story Tower and Convention Center, thirty million square feet of residential space, ten million square feet of retail, five million square feet of hotel space and ten million square feet of green space. Because of its central location within the Yellow Sea Economic Basin which comprises an economically active population of more than 200 million with a GDP of USD 1.3 trillion Songdo will act as the business hub for multinational companies in Northeast Asia. Dr. Young Maing, the CEO and Chairman of uLife (Songdo IBD's ubiquitous computing division), notes that Incheon's new City of the Future offers the opportunity to other IT com- panies as a test bed for cutting-edge technologies. Songdo uLife was created by a joint venture of Gale International, POSCO E&C and LG CNS. Songdo residents will enjoy myriad digital technologies supported by uLife's state-of-the-art city-wide IT eco-system running on a Broadband Converged Network (BCN). This BCN is a unique, world-class integration of wireless, wired and WiBro networks meshed together citywide, meaning you can always stay connected throughout the entire city without ever having to find a hotspot. The BCN is being designed to offer virtually unlimited potential for all kinds of data, voice, text, photos, online DVD-quality movies, etc. sharing the entire network seamlessly and without crashes, slowdowns nor interruptions. Though Seoul is still on top of the TheAge.com's published list as the #1 Tech Capital of the World, Songdo is already on the list and hasn't even opened for business yet. "Upon completion, Songdo will likely be the ultimate digital city. Even as a work in progress, it makes the list." Not only is Songdo IBD's the largest private project in history with a best-of-class IT infrastructure, it is also a frontrunner in leading sustainable (re: green) city development, creating an unprecedented, lasting heritage from scratch. The Songdo project is being developed by New York- based Gale International on 1500 acres of reclaimed land along Incheon's waterfront. Gale International has committed to making Songdo IBD a hub of commercial activity while ensuring the highest environmental standards. In order to attract the best multinational companies, the developers of Songdo IBD are taking unprecedented initiatives to make it one of the "greenest" places in Asia. Indeed, Songdo IBD was recently named a "green urbanism" pilot project by the U.S. Green Building Council. In addition to maintaining an impressive 40% green space within the Songdo IBD, Gale has made it a priority that all significant buildings in the project meet at least Leadership in Energy and Environmental Development (LEED) Silver ND certification standard for neighborhood development. LEED certification means that a comprehensive list of standards are designed into the project including significant reduction in carbon footprint, efficient use of wastewater, use of local and sustainable materials, improvements in overall energy efficiency including heating and cooling systems and effective management of transportation and waste streams. The uLife BCN also supports sustainable opportunities for interesting city-wide projects. uLife is also using the BCN as the web-based data pipeline to manage individual buildings with installed Intelligent Building Systems. IBS enables buildings to run more efficiently and safely in four areas: energy efficiency, life-safety systems, telecommunications systems and workplace automation. With the fast, ubiquitous and robust backbone city-wide, in a legacy-free infrastructure, uLife's BCN also elegantly enables an integrated approach to facilities management. Integrated Facilities Management (IFM) creates a cross-building com- munication network for monitoring similar systems within multiple facilities. Building owners can reduce costs of running their buildings due to IFM's economy of scale as fewer engineers can monitor multiple spaces at the same time on the same, affordable web-based infrastructure as well as automating/controlling city-wide energy use through load sharing and power use and centralized security monitoring. Maing Young, Chairmain of Songdo uLife International education is also part of the City of the Future's DNA in Songdo. Currently, Gale International and Microsoft Learning are collaborating on the "Educational Excellence in Technology Initiative" to link students, parents, educators, academic institutions, local industry, and government partners in a shared vision of how students and workers can reach their potential through technology skills training in a global context. Specifically, the agreement outlines the integration of the Microsoft Digital Literacy curriculum and Microsoft IT Academy into the Songdo International School, Asia's newest and most modern private preparatory school, where it will be available both in the school curriculum and in after- hours adult education for local citizens. Microsoft joins an already extensive list of best-in-class multinational corporations selected by Gale International to act as strategic partners for Songdo IBD including Morgan Stanley, United Technologies, ISS, and Taubman Centers, among others. Chairman Stanley Gale said, "The objective of the initiative is to provide students of all ages with the relevant knowledge and skills to expand life experience, enhance employment opportunities, and enable social innovations as citizens of a global economy. This effort will serve as a paradigm for other institutions around the world." John B. Hynes, III, Chief Executive Officer and Managing Partner of Gale International, said, "We believe this partnership with Microsoft Learning is further evidence of how Songdo IBD can contribute to the economic competitiveness of Korea." Gale International aims to build a high quality international city where both Koreans and foreigners will want to live and work. Songdo will be one of the most environmentally sustainable and technologically advanced cities in the world. Gale is building a true community where residents and visitors are connected to one another through fully integrated, synergistic mixed-use habitats, state of the art and environmentally responsible architecture and systems, and cultural and educational institutions. A brand new development, the Songdo International Business District will have an impact beyond the bricks and mortar of the city. It aims to lead the world through visionary design, engineering, and green living. Responding to the needs of a changing planet, Gale International is committed to working with its residents and partners to create the ideal city of the 21st Century. KOREA IT TIMES April 2008 _ 33 Academia KAIST Fusing Culture and Technology "If you are going to hire someone to cook for you, you need to know how to cook yourself." This is a common business proverb in Korea. Industry bosses regularly quote it at each other. The same idea applies in the army, too. A commanding officer in the army does not ask soldiers to do something that he would never do himself. If those sayings are right, then how is it possible to know and do everything in every field? The modern world requires a leader who is an expert in one area, and also a jack of all trades. Becoming a master of one is feasible in Korea; if you posses 19 hours a day dedication throughout your school and university years. The theory is that you will get a survival kit required for the real world. But how do you go about becoming a jack of all trades too? The Graduate School of Culture Technology (GSCT) in the Korea Advanced Institute of Science and Technology (KAIST) think they have the answer for person asking themselves that question. The Dean of the Graduate School of Culture Technology, Wohn Kwangyun Ph.D., is the founder of the term Cultural Technology (CT) in Korea. He established a graduate school in 2006 with a vision to carve students into multi-talented individuals who can become IT leaders in the real world. Wohn says, "KAIST has consistently been one of the best engineering schools in Asia. We excel at training students to become leaders in a fastgrowing information technology industry. But new inventions in IT create new culture in the society, and all industries tend to relate to culture both directly and indirectly." He also said that this increases the value of the culture industry. It was 34 _ April 2008 KOREA IT TIMES necessary to develop a field of education that could rise alongside the field of engineering. This field could be derived from sociology, management, or cognitive science, but the overlap is small, while the technology-based culture industry is large, according to Wohn. Engineering and science have a lot to contribute to culture and the two meet in highly pragmatic circumstances. The new department was established to serve as a bridge between engineering and culture. Wohn explains, "The development of science or research can create a deeper understanding of culture. As an example, natural science researches nature while humanity studies the nature of human existence. Just as many things, including the sky and human hardware, can be investigated by science, so too can the cultural phenomena be approached by the same means." With these academic, pragmatic, and inner-motivated purposes, the Graduate School of Culture Technology was launched with the full cooperation and financial support from the Korean Ministry of Culture and Tourism. The Graduate School of Culture and Technology offers two core educational programs: an M.Sc and a Ph.D. course. Students trained at the School are expected to take an active role in culture technology and explore the emerging convergence between the arts, humanities, and technology. The School's major study areas are Media Science and Engineering, Contents Creation and Planning, and Management and Policy for the Content Industry. Some of the nine course clusters include Compulsory, Music, Sound, and Performance, Wohn Kwang-yun, Dean of Graduate School of Culture Technology Human-Computer Interaction and Games, Economics, Business and Policy, and Visuals, Design, and Architecture. "No other schools in Korea teach the subjects of culture and technology as systematically as we do. Some schools are strong in computer music while others are known for their graphic design courses, but our school is more inclusive, because we deliver an all-in-one program with toprate teaching professionals," says Wohn. GSCT even runs a Center for Culture Technology (CCT) to encourage creativity from students who face challenges while researching original topics. Seven different research labs are open to the full-time research staff and artists alongside the GSCT's faculty and students. These labs include: a Visual Media Lab, an Experience Lab, a Music, Sound, and Technology Lab, a Digitalmedia and Contents Lab, a Digital Storytelling and Cognition Lab, a Culture Management and Policy Lab, and a Physical Interaction Lab. The wide variety of courses and labs suggests that GSCT is a place where interdisciplinary education and research can operate independently. "One of the few things I emphasize at orientation every year is that research is an extreme sport. A high degree of spiritual strength is required in extreme sports to achieve speed, height, and a high level of physical exertion. The same is required from students for researching as they challenge their intellectual and physical limits," Wohn explains. Dr. Wohn talks proudly of KAIST's "venture history in IT." As the word venture itself was still catching on in Korea, the first few generations of graduates from KAIST started some successful venture companies like Qnis, Nexon, and Cyworld, and carved out a path for IT ventures in Korea. However, only a few of the KAISTtrained engineers have become IT leaders - because they understood engineering but not the culture behind it. One of GSCT's visions is to invent prototypes of cultural artifacts by considering cutting-edge issues in culture technology. After all, says Wohn, universities are places to learn new things." He explains, "We can't teach things that Wikipedia can already offer people. Realistically, we can't expect to create Renaissance Men like Leonardo Da Vinci. The real world requires team work to make a project. In order to make a productive computer game - a programmer, an artist, and a businessperson must put their heads together. By studying at GSCT, students can increase their communication ability for real world situations." Assistant Professor Noh Jun-yong practices this idea by assigning students to work on projects in groups. Professor Noh has worked in an American firm and realized that most of what he learned in school was irrelevant once he started to work in the real IT world. After two years of training or internship, most workers finally find a comfort zone at work. Noh says, "My teaching philosophy is that what our students learn in our classrooms should be practical in the real world. It's in our best interest to educate students to become unique leaders in the global market." According to Noh, students in top universities in America are recognized for their work during school years by firms and get scouted before they graduate. In Korea, at least six months training is expected for students who already gave their all while training for real life jobs while at school. "The video contents created by our students are quite amazing. It is my personal ambition to see Korea using its own competitive software to create high quality image contents in the near future," says Noh.. Simply being an expert in one field of IT is a limiting thing to do to your career. And forward-thinking professors like these are doing their best to guide these young student sailors to a successful exploration into a new vision of an IT future. CGE Hats off to the Students of the GSCT The Graduate School of Culture Technology is full of explorers who are challenging themselves to cooperate with other visionaries to create new business models in both the IT and cultural industry. Cellist Kim Tae-woo joined the GSCT with a specific goal after he majored in music at Yonsei University. As a performer, he still struggles with the question, how do you make money with culture? Kim wants to learn how to persuade companies to invest more money in culture at the GSCT. In real life, when a performance is not a huge success in public, it is not supported by firms or organizations. Thus, potential does not always translate into professional success. Kim has worked with several groups to gain a better world picture. One of his partners, Lee Jong-eun, is a student at DMC Lab. He majored in Media at Soongsil University. He sought to find a way to connect media and digital contents at GSCT. Park Eugene, from the department of management at Yonsei University, worked at Samsung SDS for three years after graduation, yet found his work piled up with an enormous amount of paperwork. In order to take a look at the big picture, Park joined the Cultural Management and Policy Lab. These three students won the Future Handset Idea contest that was presented by KAIST Convergence Research Center. Without an engineering background, the students brainstormed ideas together and took an emotional approach in their idea. In the end, their silver phones, which allow users to access and transfer information easily using computing power technology, were credited for their creativity and uniqueness. Through communication, we can challenge the limits of art and computers. There is a limit to what technology can do, but not there are no limits to the imagination - and that is our strongest weapon. KOREA IT TIMES April 2008 _ 35 Display 2008 Korea Needs to Show More Display Initiative Experts say the Korean display industry must not rest on its laurels as China and Taiwan look to overtake in the international LCD race. Y ou step out of the house in the morning and get your newspaper. A normal day. Except the paper is not some clumsy myriad of newsprint and oversized pages - it is a single electronic page, one that changes in front of your eyes as new stories break. As you walk down the street, liquid crystal billboards change before your eyes. The bus timetable gives you realtime information on where the bus you are waiting for is, before displaying the latest road safety information. In the shops you walk past, price tags change and flash up messages for shoppers and shop staff. No, this is not Blade Runner, you are not in some sci-fi fantasy set two hundred years in the future - this is happening right now, in 2008. Last year, Sony launched a reading device that is 0.3 millimetres thick, and the likes of LG and the rest are hot on their heels. And these are not devices that strain the eyes like reading a e-book on a PDA, either. As closely as possible, these devices are trying to mimic the experience of looking at real paper. Rather than being backlit, they use flexible display technology. But this is all the tip of the iceberg. 36 _ April 2008 KOREA IT TIMES Organisers talk shop at the IMID Display Conference in 2007 When John Logie Baird, the Scottish inventor of the television set, started making televisions, they used a cathode ray diode to display pictures on a curved screen. But in modern times, the Plasma screen and now the LCD panel have meant that a whole new, more sophisticated process can give TV viewers and compute users a better picture and a flatter, less bulky device. According to experts, the display industry is not just growing, it is ballooning. In the next five years, analysts are predicting the industry will continue to expand at rate of 20% a year. Yes, that is 20%. So in five years' time, the industry will be twice its current size. When it comes to LCD display manufacture, the whole industry is a very Asian affair. In fact, the whole business is more or less run by four East Asian countries. The Japanese invented the technology, but Korea were quick to move and have since taken over as the leading force in manufacture. However, as is so often the case in Asian industry, the Taiwanese and Chinese want in, and their cheap land prices and labour costs make them more competitive than any of the other display suitors. According to Professor Kim Hyunjae of Yonsei University and Executive Commitee Secretary of the IMID, Korea might rule the digital empire for the moment, but this country needs to watch its back. "The Taiwanese are very good at catching up, and China is definitely a powerful emerging force in this market," he says. The reason for all of this is the "Clean Room" - an assembly area that is totally (as the name suggests) clean. For the uninitiated it sounds very nice, if a little uncomplicated. But the reality is that Clean Room environments are exceptionally difficult to create. LCD panels are so sensitive to even the tiniest particle of dust that they would be ruined should they come into contact with foreign matter of any sort. That sort of technology will set you back a cool $2 billion per assembly line - and that is why not many companies are prepared to make the investment. So why are countries like Korea and Taiwan so happy to make this kind of pricey, complex "Clean Room" environment and bigger economies like the United States and Europe, are not? The answer is, surprisingly, semiconductors. It turns out that LCD manufacture is not the only industry that needs a Clean Room - computer chips do, too. And, if there is one thing that Japan, Korea, Taiwan and China all do well, it is semiconductors. Clean Rooms are the norm in all four countries, so this goes a long way to explaining why they lead the market by such a huge margin. Right now, major Korean companies like Samsung and LG have the LCD panel industry cornered, but Kim says this may change. He explains, "It is possible that Korea will be caught up, especially if Taiwanese companies start to cooperate with mainland China on this, as they have such favourable conditions there for industry and manufacturing." Kim suggests that Korean companies needs to be more inventive and forward-thinking if Korea wants to remain number one in the LCD manufacturing business. "There are obviously a lot of parallels to be drawn with the semiconductor business, but there are also major differences. Semiconductors don't need a lot of components, but LCD do, and we are importing most of these at present. We need to start developing our own unique components so we don't need to rely so heavily on foreign sources for this," he says. Indeed, Kim firmly believes that being unique is something Korea must strive to do when it comes to display. He says, "Intellectual property issues Kim Hyun-jae, Professor at Yonsei and Executive Commitee are becoming major sticking points for University Secretary of the IMID, 2008 companies in the display world. Korea has been manufacturing LCD panels for ten years. But the components required in assembly are so diverse. There are so many parts that it is like building a car. We need to be involved with making some of these components ourselves." In spite of this, it seems hard to believe that Korea will be able to stay ahead of the Chinese for long. There is no competition when it comes to industry in most other areas, why should LCD be any different. Kim agrees, and adds, "That is why it is so important to be inventive. Korea will never be able to compete when it comes to consumer goods that are produced on massive scales, like laptop monitors and the like, which use LCD. We need to focus on developing new products, and developing new products for the top end of the market - it is the only way we will stay ahead." The International Meeting on Information Display, October 2008 A new, improved version of the display exhibition, to be held in Seoul this year, aims to be the best of its kind. The IMID has a seven year history, but organisers of this year's conference say that IMID 2008, to be held from the 13th to 17th October, will be the biggest and best yet. Although the US organises the SID, currently the biggest display conference in the world, America itself does not produce LCD panels, so it makes more sense for Asia to showcase the technology, seeing as the Orient is the place where LCD companies operate, say IMID organisers. This year's event will be moved from Daegu to Seoul, to make it easier for foreign visitors to make the journey to the event, and on show will not only be display goods, but semiconductor devices and consumer electronics. However, the only drawback for the IMID is that it has seen relatively few visitors come in from abroad - organisers say that around 70% of the people who have come to the exhibition have been Koreans. That said, the new format and diverse nature of this year's event promises to change all that. Putting the event on in Seoul should attract more people, as should the consumer electronics and semiconductors on display. Says Professor Kim, one of the organisers of IMID, "It is going to be different from most stuffy conferences, because it is also a display exhibition. That means there will be tons of things to see and do. Anyone thinking of coming along can expect to have a lot of fun." TA KOREA IT TIMES April 2008 _ 37 Finance Visiting Credit Guarantee Service Promises to Build an Oasis for Small Businesses G yeonggi-do is no ordinaryprovince in Korea - as the area surrounding Seoul, its population is huge, and it is home to the headquarters of dozens of multinational coorperations, including the Samsung Group. The Gyeonggi Credit Guarantee Foundation provides vital credit guarantee services for smaller businesses within the region. The foundation has offered aggressive, customer-oriented, guaranteeing and customized services to various different companies and groups. As a result, the GCGF provided 15,155 guarantees, amounting to about 763 billion won in 2007. It has also greatly helped smaller businesses and economic leaders in the province. This has been a boost for all who are suffering from the sluggish economy. The GCGF, which is in charge of providing financial assistance to smaller businesses and economic leaders in the province has spearheaded the efforts to create a business-friendly province. It has done so by establishing a smooth capital assistance system and by trying to achieve management stability for Korea's smaller companies. In September 2007, GCGF became the only institution to receive the highest grade in a management evaluation of 20 public agencies in Gyeonggi-do. The GCGF is not going to sit on its laurels and be satisfied with the result of the evaluation, though. It is expected to become a local general credit guarantee institution which speaks up for small companies and economic leaders in the region and leads them by continuously providing customized guarantee services. 38 _ April 2008 KOREA IT TIMES However, the dropping Won - US Dollar exchange rates, high oil prices and various regulations which are becoming obstacles to companies in the metropolitan areas, have worsened the business environment for business people in the province. All of these make up the backbone of the national economy. Park Hae-chin, Chairman of GCGF In this regard, the province has always sought measures to provide assistance for its small- and middlesized firms and small economic leaders. The GCGF has performed guarantee assistance connected with industries and policies aimed at cultivating smaller businesses in the province. It has played the role of effectively creating economic policies by more swiftly providing credit guarantees and simplifying credit evaluation and office procedure. Park Hae-chin, Chairman of the GCGF, has broken the age-old supply-oriented custom. Park believes in the management philosophy of ``visiting credit guarantee service.'' He has led the efforts to relieve corporate financial difficulties by posi- tively expanding credit guarantee supply through business-oriented methods of supply and efforts to construct a business-friendly province. Gyeonggi to Provide One-Stop Service to Cultivate Smaller Businesses The GCGF started to provide assistance to cultivate small firms in the province in August 2007, the time taken for the entire procedure has been reduced to seven days from an initial fifteen days. Accordingly, the province has reduced the steps involved in the procedure from four to two by improving the management system of the funds for cultivating small companies. As a result, the GCGF can provide onestop service involving capital assistance and credit guarantees. GCGF Spearheads Overseas Efforts The GCGF and Gyeonggido Small & Medium Business Association have concentrated their energy on helping related companies expand their business to overseas markets and established a bridgehead for those firms. As a part of such efforts, officials from the two agencies visited Washington in the US, in July last year and provided support for OKTA, a sister agency of the GCGF, to sign an agreement for trade exchange cooperation. In this way, the GCGF has focused on assisting companies in the province to develop in domestic and foreign markets so that businesspeople, who have faced unlimited competition due to the Korea-US Free Trade Agreement (FTA), can actively cope with the situation and occupy the markets faster than their rivals. KWH Interview with Park Hae-chin, Chairman of Gyeonggi Credit Guarantee Foundation Q. What are plans of the GCGF for the year 2008? A. The government and major financial research institutes predict Korea will achieve 5% economic growth due to the gradual consumption recovery, but the nation is expected to suffer from an economic slowdown because of a number of negative factors, including the sub prime mortgage crisis in the US, insecure financial markets and high oil prices. Considering such situations, the roles to be taken by the GCGF will become more important. The GCGF will exert utmost efforts to complete the construction of a businessfriendly province by providing practical and comprehensive credit guarantees for small- and medium-sized companies and local economic leaders this year. For this purpose, the GCGF plans to raise its share of the credit guarantee market to about 13% by supplying credit guarantees amounting to 700 billion Won to about 15,000 firms in the province in 2008. In addition, the GCGF is going to provide top-quality customer service and to carry out its innovative new campaigns. Q. Do you think regulations on companies in the Metropolitan areas will affect the economic slowdown? A. As I said, the financial troubles which smaller companies and business leaders in the province have been experiencing due to the poor domestic consumption are expected to continue for the long term. However, as the new government has said it will reform regulations and invigorate the national economy, there is hope for this year. The economy of Gyeonggi-do has played the role of a driving force for national growth. Therefore, the provincial economy should recover for the sake of the national economy. In other words, one of the biggest tasks of the economic policies of the current government is to make businesspeople comfortable with the idea of expanding their investment. Korea will be able to achieve economic growth only when there is more active investment by businessmen. The government should review various regulations, such as restrictive policies in metropolitan areas, which have hindered activities of businessmen in the province in the past. The province has taken the role of a driving force in the national economy and represents up to a third of Korea's entire small and medium companies. To create a businessfriendly environment, it is important to abolish restrictive regulations on companies and it is key to national development that we activate corporate investment. Q. What is the 5S movement - your new management goal for this year - and what are the management policies you are pursuing? A. All executives and workers of the GCGF, above all, are making smaller companies and local businesspeople in the province work together in unison. We are making the utmost efforts to provide business-oriented services so that smaller firms - the driving force behind Korea's economic development - display business activities to show that they are powerful figures in the national economy. In addition, the GCGF has improved services mind by strengthening the ethical awareness of our employees. This is done by carrying out educational programs for them. We are trying to reform through education and training them to carry out services for customers. We want them to have knowledge about their jobs. We will make efforts to offer the best customer service through conducting unlimited voluntary activities for smaller businesses and leading businessmen in the province. In particular, the GCGF is going to conduct an enterprise-wide 5S movement in 2008. The 5S policy stands for service, speed, satisfaction, stabilization and success management. The GCGF will prepare services to satisfy customers, establish a swift credit guarantee support system through simplifying related procedures and cutting through red tape. We hope to build a substantial and sound organizational culture by strengthening innovative capacity and preparing an independent management basis to create a leading agency of management innovation. The GCGF plans to establish itself as the top regional assistance agency and spearhead assistance for the interests of smaller businesses in Gyeonggi-do. KOREA IT TIMES April 2008 _ 39 W hat is the Future for the Korean Information Security Vision 2008 Industry? Experts hope 2008 is a year for improvement and creating foundations abroad O ver ten years have passed since the nation's information security industry was created. The industry has settled as one of Korea's major industries with the improvement of the environment for investment in information security. It is time for Korea to expand business abroad based on competitive technological power which has been accumulated until now. Leading IT companies, such as IBM and Microsoft, have recently taken a keen interest in the security business, heightening concern in security on the global level. The security business has been getting more important by the day. In comparison, Korea's security industry is in a relatively poor state. Korea's information security industry has created demand in relation to the security market based on national technological strength over the past few years. However, it is true that 40 _ April 2008 KOREA IT TIMES Korea should admit that it has downplayed security as a special area of IT or as part of the software business. As the Ministry of Information and Communication in charge of jobs related to information security has recently been disbanded, the related jobs have been spread out among the Broadcasting and Communications Commission, the Ministry of Knowledge Economy and the Ministry of Public Administration & Security. Because of this, it is difficult to understand the policy direction of the new government on information security. Almost 70% of Korea's information security firms are relatively small businesses. Such a situation has become an obstacle for the industry. In an effort to resolve the problem, the government should expand the size of matching fund, improve investment environment through creating Mergers & Acquisitions (M&A) funds, offer tax incentives to companies pro- tecting information, establish strategies to promote the information security industry and support companies trying to expand abroad, and encourage small- and middle-sized firms in their efforts. The information security market is expected to grow by about 30% this year. However, there is a growing concern that the rich will continue to get richer and the poor will get poorer. It is urgent that we create an atmosphere for M&A to be activated to enlarge the security market and to help companies make smooth advancement into overseas markets. For this purpose, companies should request the new administration's continuous assistance. Domestic companies should stop excessively fierce competition and establish win-win strategies. KWH In an interview with Korea IT Times, Park Dong-hoon, Chairman of the Korea Information Security Industry Association (KISIA), also the CEO of Nics Tech, says Korea should provide a turning point for the 10-year-old information security industry in 2008. He also stressed that the imminent task is to reorganise the information security industry's values. Park said he would do his best to improve status of Korean information security and to create a basis for the industry to expand abroad. Park Dong-hoon, Chairman of KISIA Q: The Ministry of Information and Communication has now gone and many of its responsibilities have been absorbed by the Broadcasting and Communications Commission (BCC). Because of this, a lot of people think the the information security industry will be curtailed. What is the opinion of the BCC regarding the government reorganization? What should be done legally and systematically for the development of the industry? A: The dissolution of the ministry can hinder the development of the IT industry but on the other hand, there will be advantages as well, because the functions of the ministry will be divided into various agencies. As the Korean Information Security Agency is absorbed into the BCC, the market is expected to grow quickly. Korea should establish institutions to activate information security companies to expand their business into overseas markets, prepare related laws, such as a law on protecting individual information. We also need to legislate on the improvement of maintenance costs, and provide support for M&As. Q: NexG was listed on Kosdaq last year and a number of information security firms are expected to be listed on the market this year. What do you think is necessary for such companies to have the ability to stand on their own? A: They should stop exhausting disputes regarding patents or prices. Instead, they need to invest in Research & Development (R&D) to improve their technological competitiveness and cultivate labour resources. Q: The information security business is in a period of "consolidation" at the moment. In addition to the active consolidation of goods, there has also been consolidation of business. What do you think about this? A: Like all software, security is also are expected to be consolidated. The consolidation efforts will consider the users' convenience and costs and be aimed at total security service solutions, in my opinion. Q: The common task of domestic security companies is to succeed in overseas markets. Why do you think domestic companies are not successful in overseas markets and what strategies should they establish? A: First of all, companies should select items for which they can have competitive power over rival firms and then establish strategies where they can concentrate on these items. Domestic firms should also have technological power regarding the product and improve the quality of goods. In this respect, domestic firms are making efforts to improve the reference of major customers and recognition - to secure local channels and establish localization and marketing strategies in order to expand business to overseas markets. Q: As KISIA chairman, what is your vision in terms of leading the KISIA? A: There has been a lot of confusion due to changes in related institutions and advancement of large companies into the security market. Amid the confusion, however, KISIA will promote the unity of member companies so that they can spearhead efforts to develop the domestic information security market as early as possible. Q: What is your prospect for the information security market this year? Please explain KISIA's directions and plans. A: KISIA will concentrate on preventing individual information from being leaked and on products such as Web Application Firewall, security USB and NAC. In connection with companies, large firms are anticipated to join the market and global security firms are expected to actively join the domestic market. Companies are also going to enter the economies of scale stage through M&As. The market, as a whole, will likely aim for total security service, instead of a united market. KISIA plans to collect opinions of member companies in accordance with the new paradigm and then promote views through an organic discussion with related institutions, and reestablish the standing of the organization. KWH KOREA IT TIMES April 2008 _ 41 Vision 2008 IT Clubs Agree to Work Together An ocean might separate the Electronics & Information Club of Seoul, and the BayArea K Group of the United States, but they say that doesn't mean they can't work together. Ra Jung-woong, President of Electronics & Information Club O n a fine wonderful afternoon in mid-March, Korea IT Times had the opportunity to interview with Ra Jung-woong, President of Electronics & Information Club (E&I Club), a non-profit organization, located in the exclusive Gangnam area of Seoul. Wearing a gentle smile, he has received me with a warm welcome. The office rooms of the E&I Club are neither large nor luxurious, but its membership is composed of many well known veterans who have served for a long time and have many great contributions to electronics and information, industries in the beginning stage of the industrialization in Korea. Nearly a decade ago, this club was set up by some major players. In the beginning, the founding members mainly came from Gold Star (now LG Electronics), Samsung and Motorola 42 _ April 2008 KOREA IT TIMES but also from small companies, Korean government, and universities. Professor Ra, returned Korea in 1971 to become the first chartered professor of electrical engineering at KAIST (Korea Advanced Institute of Science and Technology), Korea's top technology university. He is well known by his development of underground rader to detect the deep underground tunnel that North Korean dug in the Korean DMZ (border area between the North and South Korea). He served as the President of the Gwangju Institute of Science and Technology (GIST), another top ranking technology university, and an Administrative Committee member of the Microwave Theory and Techniques (MTT) Society, IEEE in the US. Along with such big names as Minister Kim Kee-hyong, President Oh Myung and Minister Seo Junguck, he started up this club in an effort to contribute to the electronics and information industry, while sharing information and friendship among members. The E&I Club is holds seminars once a month, dealing with important issues directly or indirectly related to practical management. Through this seminar, members exchange ideas, thoughts, and experiences, and at the same time communicate diverse fruitful information to the incumbent junior managers. Ra said that the club will be activated further by recruiting junior managers and presidents as club members to meet the early high expectations its founders initially had. E&I - "We plan to recruit more high-level staff as club members" In an effort to add a new impetus to the workings of the E&I Club, it has recently signed a sisterhood agreement with the BayArea K Group in Silicon Valley of California, America. The BayArea K Group (the K stands for Korean) is an Americabased group of Korean IT professionals from diverse fields - including robotics, mobiles and semiconductors. It is another non-profit organization, like E&I, and was founded a year ago. It now has over 500 members, mainly composed of incumbent managers in the related fields. It has many similarities with the E&I Club from the aspect of human resources. Most of its members come from business circles and the academic world. As they shared so much in common, the two organizations thought it logical to work together and so the sisterhood agreement was signed. On the occasion of this event, E&I Club and the K Group said they have plans to link their respective websites, step up information exchange, and play an active matchmaking role for potential group members. KEJ Korean Company Sees Bright Future in Solar Energy The Solar power industry is still in an embryonic state, but one Korean company say they are making rapid progress. We take a closer look at the operations of Millinet Solar. M illinet Solar are a visionary solar cell manufacturers, with their headquarters in Seongseo Industrial Park in Daegu. The company are now stepping up the mass production of solar cells. At present, Millinet's technology of power conversion efficiency is operating at a level of 15-16%, but they say they are making every effort to raise their conversion rate to a world-class level of 20% by 2010. Millinet Solar have the ambitious plan to produce a high-quality solar cell for power conversion through applied technology in the near future. With the help of worldwide solar energy equipment manufacturer Shumid of Germany, the company's manufacturing system has been completely equipped with the latest in modern solar energy equipment. According to Millinet, this newly completed production line is superior to most existing semiconductor production lines, not only from the aspect of cost saving, but also in terms of productivity and technology efficiency. For this reason they have high expectations that before long, they will be able to bridge the technology gap with competitors from countries such as Japan and Germany. Also, through joint cooperation between industry-academia-government, Millinet plans to establish a solar energy research institute, developing various kinds of solar cell related applied technologies by means of convergence technology, so that it will become a world-class solar energy specialist. The product of this company is a multi-crystalline solar cell. Its external dimensions are 156mm x 156mm, and its cell thickness is 240 +/- 30 microns. The average energy conversion rate ranges from 15 to 16%. Treading an unbeaten path Although the solar energy industry is still in an infant stage, Lee Sangchul, president and CEO of Millinet Solar, has spoken of his ambitious vision to venture into the unknown in the solar energy business, and succeeded in constructing a huge solar cell factory in the Seongseo Industrial Park, in Daegu, Korea. Instead of seeking first profit and growth, Lee has put emphasis on the development of highly-efficient solar cell technology. Because of his efforts, the company has succeeded in localizing solar cells with its own independent technology, creating new jobs, and consequently contributing to the development of new growth engine. As a pioneer in this field, there are still many things to be done. First of all, specialized workers and researchers have to be recruited and trained, and, also, a wide range of technical alliances has to be made. By making efforts to raise the technology efficiency of conversion rate to a level of more than 20%, it will be able to bridge the gap with Japan and Germany, who lead the industry. Hopes for the future Following Millinet Solar, Hyundai Heavy Industries and Shinsung ENG have recently started operations in this field. In fact, the solar cell industry has such a high entry level that it requires a long period of time for preparation, and a lot of investment. Millinet Solar have taken a total of three years to go from market surveys to factory construction and production. In addition to these efforts, more investment has to be made for the development of specialized manpower and technology, while trying to build a solid relationship with business partners overseas. As of now, the production line capacity is 30 MWp and is scheduled to be expanded to 100 MWp in 2009, to 200 MWp in 2010, and to 300 MWp in 2012. Due to partnerships with solar energy specialists overseas, Millinet Solar has successfully secured the raw materials they need at a low price for the past 5 years. Because of this preparation, in the near future the company say they will not need to produce wafers, ingots, and modules, but in the mid- and long-term, they plan to establish an assembly production line, saying that they are aiming to produce to the same level as Q-Cell, the German company who currently lead the way in the solar power industry. KOREA IT TIMES April 2008 _ 43 Software Software - Tech's Poor Relation I n every family, no matter how proud and harmonious-looking on the outside, there is a relative that nobody really likes to talk about. Perhaps he is an embarrassing uncle who always tells uncomfortably dirty jokes, a female cousin who dresses a little too provocatively for her age or a tearaway nephew who is well-known to the local police. The Korean IT industrial family holds itself in quite a lofty esteem, and perhaps rightly so. However, although the hardware industry and Internetbased firms do very well for themselves on both the domestic and international markets, the technology clan has a relative it is not fond of mentioning at home - software. While semiconductor companies, laptop producers, IPTV and wireless companies keep on hitting the jackpot, a permanent raincloud hangs over the head of software producers and engineers in Korea. But this lonely Korean technological child is not alone in his misery. 44 _ April 2008 KOREA IT TIMES Software seems to have a bad name almost wherever you go. There is a lot of instability when it comes to smaller companies, who are in such a competitive business that they can easily go out of business. This makes consumers loathe to trust them - if your software goes out of date or there is a bug to fix, who can you turn to if the manufacturers have gone bust? But what is the alternative - to use software solutions designed by bigger companies? The problem with this kind of programme is that they are often too general and "all-encompassing" to solve the specific problems of individual companies. The bigger companies who offer more customised software development can charge exceptionally high rates, a further problem. Investment in software development and software engineering is distinctly uncool in the modern environment. People, companies and governments are much more easily taken in by the idea of setting up Internet ventures or working on flashy, welldesigned new hardware than setting up schools full of geeky programmers who will spend their time keying indecipherable code into banks of PCs. However, it is exactly this kind of attitude that gets the IT industry into trouble. Software is pretty much integral to whatever you do, regardless of how little you think it has to do with software. The basic computer operating system has its limitations, and even if you run a bank, a school or a medical clinic, the chances are you will need some custom-made or specialized software at some point, if you want your business to work properly or expand. Another problem is that the software industry has such a terrible reputation even for people within the industry. In Korea, horror stories are regularly told about the painfully long hours software engineers have to put in at the big software employers. Too much time spend stuck behind a computer terminal will cause burnout, even in this nation of workaholics. Even the money is not enough of a motivating factor for many. I can count in double figures the amount of former software engineers I know both in Korea and elsewhere, but I cannot hold my hands up and say that I personally know a single working programmer. In Korea, the software business is something that it is acceptable to be in for a few years to get a bit of experience and capital behind you, and a nice chaebol name on your resume. But once you have served your apprenticeship, you get out and find something else to do. This seems to reflect the world trend - except for places like the former Soviet Union, most of the world regards computer programming as some kind of an embarrassing relative, too, and has far too little time for it. There are some signs that people here, and elsewhere in the world are waking up to the fact that this unappreciated relative needs to be incorporated as an important member of the IT family. However, for the moment, it looks like software will go on failing to be sexy enough to make most people's technology agendas. TA Korean Software Industry Needs to Grow Up R Lee Dan-hyung, president of KOSTA equirements Engineering, Object-oriented programming, Cache ObjectScript, Java. These pieces of software terminology might have stopped many readers dead in their tracks. Unsurprisingly, really - they hardly set the pulse racing. Software suffers from bad press, bad vibes and a very poor public image, but without it, our computers are just whirring fans, bleeps and circuit boards. Try sending a text message on your mobile phone or checking the football results online with no software. In the modern world, we need software like we need oxygen. Yet it lies in a state of abject neglect. People in the IT industry are far too interested in developing the next iPhone to worry about trivial issues like spending money on software engineering. Lee Dan-hyung, President of the Korean Software Technology Association (KOSTA), is a man who wants to change all that. While he admits that software skills and deep knowledge of the frightening list of terms above is not necessary for most everyday people, users need to respect the industry more as their most people's software needs are diverse. Most people think software engineering is the domain of boring geeks - but that is causing big problems for the industry as a whole, says a software insider. Lee says that especially now, the popular demand for software is about to become intense. He explains, "Software is the only way to make products and services 'Intelligent', because software can work with complex logic. It is the most efficient and effective way to differentiate your products and service through improved functionality and quality." KOSTA, are a lot of things - an umbrella association for some 440 member companies all related with the Korean software industry, a training and placement centre for wouldbe software engineers, and a group that aims to promote the needs and value of a healthy software industry in modern-day Korea. According to Lee, the industry is anything but healthy in Korea, or anywhere else for that matter, but there is something that needs to be fixed soon. He says, "The mark environment must be changed. What is more, engineering and pure science are no longer popular subjects for university students, who prefer subjects like law and medicine." But all this must change, says Lee. He points to the fact that by 2015, it is forecast that in the OCED, 50% of Research and Development will be carried out in the field of software, and 80% of all functionality of products in major manufacturing industries such as aerospace, automobile. telecommunication and medical equipment will be of the optimal importance in terms of global economics. The problem, according to the KOSTA chief, is that there is a lack of basic information about software engineering and its importance. In schools, students often receive some form of IT instruction, but this all too often focuses on computer science, rather than aspects of software engineering. He says, "There are a lot of problems with the education system when it comes to software - not just here, but all over the world. Although the Americans and the Japanese are starting to show signs of waking up to the fact that they need to improve their capacity through education, they still have a long way to go." He adds that a lack of global vision also hurts the software industry. "Korean companies tend to focus too much on the domestic market - they rarely see the global picture, and that leads them to ignore software engineering. But to increase our competitiveness, we need more training in this field," says Lee. And Lee says that he envisages a future where global collaboration is the norm in the software industry and looks forward to a future where a new age of software entrepreneurship rules in the global technology markets. For the time being, though, Lee admits his immediate goals are more modest. He says, "Our target is to produce 100,000 high level software engineers - it's a small number for the time being, but once we've done that, we can look further down the horizon." TA KOREA IT TIMES April 2008 _ 45 Spotlight Alsaba A Taste of South Asia W Munir Rama, Owner of Alsaba alk through Itaewon, the "foreigner's district" in Seoul, and you will come across a lot of life's characters - people with tales to tell. But none, perhaps, with tales as fascinating to tell as Munir Rana, the owner of Alsaba, a Pakistani restaurant in Itaewon. Although he looks like a man in his late thirties, Rana is 45, and has seen and experienced much in his life. He was born in strictly Muslim Pakistan, was educated in Catholic Philippines, and married into a Buddhist country in Korea. Rana is a tall, impressive individual - talkative and friendly, and armed with an opinion on just about everything. In his life, he has been a model for toothpaste and jeans, a carpet trader and now the owner of one of the most unique restaurants in the country. Rana traveled much in Asia before deciding to settle down in Korea. But now he has firmly laid down his roots here. He is a naturalized Korean citizen and has two sons through his Korean wife, both of whom go to Korean schools. Why Korea, one might ask? "It's closer to the family-orientated lifestyle 46 _ April 2008 KOREA IT TIMES that I am used to," he says. "I have been to Japan, too, but coming to Korea was the best decision I have ever made. The system of senior-junior respect, the sense of unity in this country and the peaceful lifestyle is very hard to resist." Alsaba is perhaps like nothing you have seen before in Itaewon, or even in Korea. When most people think of Pakistani food in a foreigners district, the image they might get is that of a typical Indian-style establishment, with pictures of the Taj Mahal on the wall, full of non-Koreans speaking loudly in English. But nothing could be further from the truth. According to Rana, at least 70% of his clients are Koreans. He says, "I think that Koreans really like Pakistani food. It's very meatbased, as opposed to Indian food, which contains more vegetables, and Koreans who like beef are surprised at how much they like what we serve." Rana says that to understand and appreciate South Asian food, we need to understand the culture of the area a little better. Much of India is Hindu, and vegetarian, which means that they have centuries of experience in making excellent vegetarian food. He explains, "Pakistani food has never been bound by religion in such a way as Hindu Indian food has been. Where they make much better vegetable dishes than we, they are no experts at making meat dishes. As a Muslim country, Pakistan excels at making food from beef and lamb." Indeed, lamb, not part of the Korean diet, is a specialty of Pakistani cuisine, and of Alsaba's too. Rana says, "Most Koreans have never tried lamb, and have a preconception that it is greasy and tastes bad. But once they have tried it in our style, they quickly change their minds about that." And Rana feels that IT, one of Korea's major industries, plays a big part not only in the lives of his clients and his business, but in the life of modern society. He says, "Technology is an important part of our business. I think it is one of the best innovations people have ever created. With the Internet, people can make online reservations and also Muslims who are looking for Muslim food while they are in Seoul can find us through Internet searches." Alsaba was opened just after the 9/11 terror attacks on the US, and Rana says that culture and politics were the main reasons why he decided to open the restaurant. "I opened Alsaba as a direct result of the attacks, in 2001," he explains, "I wanted to show people here who Muslims really were, what they look like, and what they eat - so they didn't go around thinking that all Muslims are terrorists." Authenticity is a key part of the Alsaba experience. While other South Asian restaurants often tend to "Koreanise" their food, to give it a flavour more similar to local food, Rana says he will not allow the Alsaba taste to be compromised. Materialism changes food a lot, and I think that I might make more money by commercializing our food more, but that goes against the original ideas I had when I built Alsaba." Rana says it is not just he who thinks so. "A lot of Koreans who have been to Pakistan and enjoyed the food and the experience have enthused about the dishes they have eaten in Alsaba. Whereas other similar restaurants tend to change their food in subtle ways to make it more commercially acceptable, people who know Pakistani food say they can find the exact same taste in our restaurant," he explains. How about spreading the success of Alsaba to other locations in Korea, outside Itaewon? Rana responds that he is against the idea, on principle. "I have eaten in chains of South Asian restaurants where the food in one branch tastes different to the same dish in another branch in the same city. It compromises the authenticity in this way," he says. And authenticity, it seems, is the very driving force behind Rana's restaurant. "I don't like the idea of a chain of Alsaba restaurants. I am planning to open a new bar and cafe, but it will be totally different to Alsaba. I don't want to try to reproduce the Alsaba experience anywhere else." The name "Alsaba" draws a lot of interest from customers, many of whom think it may be associated with an influential, wealthy Pakistani family of the same name, but Rana explains that the name has a much more personal meaning than this. His wife, a Korean who has converted to Islam, is now called "Saba" in Arabic, so the restaurant is named after her. There is a real family atmosphere in Alsaba - month-old babies sit on their mothers' knees while at another table sits a table of old-age pensioners celebrating one of therir group's ninetieth birthday. They have all come for the unique Pakistani taste of this restaurant. It seems fitting that one of Itaewon's most colourful characters should run a place as diverse and singular as Alsaba. Exclusive Readers' Offer 15% Off at Alsaba Take this voucher along to your next visit to Alsaba in Itaewon and get 15% off your meal. www.alsaba.co.kr KOREA IT TIMES April 2008 _ 47 Interview IT Companies Making Beeline for South America Market KOVA - the Korea Venture Business Association - say new markets are being found for Korean technology in Latin America I n a board of directors meeting with a INKE, a global venture network of Korean people overseas, held in Mexico City at the end of February, Jun Dae-yeol, the Vice Chairman of KOVA, signed an agreement for mutual cooperation between Canieti, the Mexico IT industry association and KOVA. On the occasion of this agreement, Canieti expressed high hopes and expectations that Mexico would be able to learn a lot about information technology from Korean venture companies, and, in turn become a strong IT country in its own right. 48 _ April 2008 KOREA IT TIMES Jun Dae-yeol, Vice Chairman of KOVA Jun said, "Mexico is one of Korea's largest trade partners. We hope this event will become a wonderful starting point for better understanding and mutual cooperation between the two countries." He has emphasized the role of KOVA for trade expansion in the IT industry. Eleven Korean IT companies took part in the event, making business consultations with Mexican buyers, and two companies have already received export orders. In the meantime, in January this year, in the Buenos Aires branch of INKE, KOVA signed a deal with IECyT (an Argentinean science and technology venture research center). Until now, Korean companies have had few opportunities to trade with Latin American countries, the likes of Argentina, but this agreement will provide a new opportunity to start a new period of trade for Korean companies dealing in IT exports. KOVA - "No end to our support efforts" Thanks to the business accomplishments of Korea venture companies supported by KOVA, in 2007, domestic venture companies' exports have increased to $200 million, a 100% increase on the previous year of $100 million. It also has supported six companies who wanted their companies listed on the stock markets of the countries they are trading in, as well as creating investment inducement schemes. In addition, it has supported the establishment of three overseas subsidiaries and three cases of local company acquisition. Korea venture "galleries" set up overseas KOVA is currently running two Korea venture "galleries", one in Moscow, Russia, the other in Jeddah, Saudi Arabia, which are overseas marketing offices established on a permanent basis. Last year, the business achievements made by both Korea venture galleries reached a total of $40 million - $30 million from Moscow and $ 10 million from Jeddah. KOVA is also running a venture gallery in Fukuoka, Japan, and also this year it is making preparations for the establishment of a new venture gallery in Brazil. Meanwhile, explaining about diverse business activities and the recent accomplishments of KOVA, Jun said that all these outstanding achievements were possible with the help of Korea venture businessmen overseas having a solid local network as well as the accumulated experiences of domestic venture businessmen. Said Jun, "A solid and practical connection between venture businessmen at home and abroad has really made a great contribution to these remarkable accomplishments." Buyer's Guide ACROHEM CO., LTD. Products or Technology Since the multifuncionality of mobile phone, discharging period of battery has been reduced. So this product would provide emergency access to your mobile when battery of the mobile phone is out. This also provide talking time and stand-by time as a supplementary accessory which can also charge the mobile phone using secondary battery. Another purpose is to provide compact-sized charger which can always be carried with the phone Business Field / Turnover (USD) ●Manufacturing: Emergency battery charger for mobile phone and other mobile phone devices, VoIP Mouse Phone ●1MillionUSD Telephone : 85-2-6190-0920 Homepage : www.acrohem.com E- mail : [email protected] Major Partner / Customer Mobile Phone Reseller, Stationary Distributors, Corporate Gift Item, General Trader, Gift Item, On-line Distributor, etc.: Anyone who is selling and using mobile phones and mobile devices. Type of partners or companies we want to meet ●Telecommunication Company ●Telecommunication Devices & Accessory Distributor or Reseller ●Corporate Marketing / Advertising Manager Corecess Inc. Products or Technology VDSL2, ADSL2+ (xDSL), L2/3 Ethernet Switch GEPON, WDM-PON (FTTx) Major Partner / Customer Softbank BB, Song Networks(Tele Denmark), Versatel, Korea Telecom, Hanaro Telecom, Trans-Teco(Ecuado Business Field / Turnover (USD) ●Telecommunication equipment (xDSL, Ethernet Switch, FTTH) Telephone : +1-510-683-0188 ext.101 Homepage : www.corecess.com E- mail : [email protected] Type of partners or companies we want to meet Telco, SI, ISP, VAR/Reseller, CATV Service Provider, Utility Provider, HSLA for Hotel, MTU/MDU, Metro Service Provider. KOREA IT TIMES April 2008 _ 49 Buyer's Guide C-TECH Products or Technology Products : SAW filter Saw is the telecommunication-equipment as a filter. The principle is to convert Electromagnetic Waves into the Acoustic Wave. And then, Saw filters out the frequency we want. Saw passes the specified frequency. The advantage of Saw filter is to remove needless frequency well. The application is Wireless telecommunication such as Repeater, Satellite communication, Pager, CATV, PCS,GPS and so on. Major Partner / Customer SK telesys, C&S microwave, Nextlink, RF window, Shyam telecom, Mtron PTI, Cellvine, et Type of partners or companies we want to meet Manufacturer, Agency, Distributor, Company(Wireless Communication, Repeaters, Telecom) Business Field / Turnover (USD) ●Wireless communication system Employees 55 ●US$7,000,000 Telephone : 82-31-703-2086 Homepage : www.ctech.co.kr E- mail : [email protected] DM Technology Co.,Ltd Products or Technology LCD TV with built in DVD/DviX player (Available size : 17’’,19’’,20’’,22’’,26’’,32’’,37’’,42’’) Internet Radio, Digital Photo Frame Major Partner / Customer PALACIO, DIXONS, COMET,MYIRO, JOHN LEWIS, HARRODS 50 _ April 2008 KOREA IT TIMES Type of partners or companies we want to meet Retailer, Distributo etc. Business Field / Turnover (USD) ●LCD TV with built in DVD/DviX player, Internet Radio, Digital Photo Frame ●$110,000,000 Telephone : 52-55-5281-7134 (Ext. 103) Homepage : www.dmtechnology.co.kr E- mail : [email protected] Nextlink Co., Ltd Products or Technology ICS(Interference Cancellation System) Repeater which is one of our main products eliminates direct feedback and multipath feedback signal caused by and between antennas and various obstacles such as moving vehicles, buildings, mountains and so on. By using patented interference cancellation technology(Digital Signal Processing) ICS repeater simply clears the problems which RF repeaters and other in-building solutions have and provides high quality service and easy coverage expansion. ICS repeater removes feedback signal up to 99.9% and makes it possible for service operators to provide subscribers with stable and quality service. The high-performance ICS repeater operates in a site where isolation level between the service antenna and link antenna is low. Also, it is not affected by moving vehicles, buildings and other objects at all. It means ICS repeater can be installed in any place if there is a small space for installation. The ICS repeater gives many benefits such as high service quality and easy coverage expansion at lower cost to service operators. Type of partners or companies we want to meet Mobile telecommunication companies, Repeater wholesalers or distributor Business Field / Turnover ●ICS Repeater, Fiber Optic Repeater, RF Repeater ●USD 47.4million Telephone : 82-31-737-6060(ext.200 Homepage : www.nextlink.co.kr E- mail : [email protected] Major Partner / Customer Major mobile telecommunication companies in Korea and worldwide Ncomputing Co.,Ltd Products or Technology NComputing L series(L130/230), X series(X300) Up to 30 users on 1 PC ! NComputing products enable you to cut your computing costs up to tenfold by sharing the untapped power of your existing PCs. Typically, only one to five percent of a PC processor's power is used at any one time. NComputing software, extension technology and access terminals efficiently harness this excess capacity to let up to 30 users share a single PC! Major Partner / Customer Education, Government, Hospital, Hotel, Public Access market Type of partners or companies we want to meet C-level executives of corporate, IT department Government officer, Education market procurement related, Computer distributor, reselle Business Field / Turnover ●Network Computing Terminal ●USD 15,667(thousand) Telephone : +1-650-594-580 Homepage : www.ncomputing.com E- mail : [email protected] KOREA IT TIMES April 2008 _ 51 Buyer's Guide RF Window Co., Ltd Products or Technology RF Window is a fast growing, dynamic company which offers various wireless last mile solutions for mobile networks. RF WindowOs patented ICS technology has changed the way of RF frequency can be transmitted. Unlike common RF repeaters, RF WindowOs ICS(Interference Cancellation System) Repeater: Cancels all feed-back signals by using DSP (Digital Signal Processing) technology Provides coverage extension for open areas (urban, rural, highways etc.) as well as closed areas (in buildings, subways, underground) Improves the service quality in urban Cell-Shrinking and Pilot-Pollution areas Increases transmission speeds for the EV-DO and WCDMA networks RF WindowOs ICS System is the last solution for network companies which want to reduce both CAPEX and OPEX at the same time. Type of partners or companies we want to meet Mobile telecommunication companies, Repeater wholesalers or distributor Business Field / Turnover (USD) ●ICS Repeater, Fiber Optic Repeater, RF Repeater ●USD 47.4million Telephone : 82-31-737-6060(ext.200 Homepage : www.nextlink.co.kr E- mail : [email protected] Major Partner / Customer Major mobile telecommunication companies in Korea and worldwide Sbntech Co., Ltd Products or Technology SBN Tech are Korean next-generation video phone makers for easy communication with workmates, family and freinds. SBN exhibited its WiFi videophone at CES 2008. USB ports mean that it can be used as a picture displayer when it is not in use. It also has a translation function based on ASL (American Sign Language) for people who are hard of hearing. Major Partner / Customer 1. Calling parent, Friend, Relatives and lovers anywhere in the world. 2. The doctor can easily check this patints health condition without attending on sight 3. Provide effective way to inter/infra conference in corporate 4. Using high internet connection, communicate naturally and easy of sing language. Type of partners or companies we want to meet Provider Video Relay Service for Deaf and Hard of Hearing. Associate of Deaf and Hard of Hearing. Business Field / Turnover (USD) ●IP CAPTION VIDEO PHONE ●1,600,000 Telephone : 82-2-2026-2191 Homepage : www.sbn-tech.com E- mail : [email protected] 52 _ April 2008 KOREA IT TIMES SELOCO, Inc Many parking & building management companies, Many users with a private surveillance system, Etc Major Partner / Customer Products or Technology Smart Standard DVR 1. Based on the ASIC technology and Linux OS 2. Pentaplex (Live / Recording / Playback / Networking / Backup) 3. High frame rate support (240fps live / 240fps record) 4. Triplex mode support (live monitoring & playback simultaneously) 5. Huge Storage support (Max 1.5TB, internal 3 HDD) 6. High Performance Network (Dynamic/Static IP, PSTN) 7. Flexible backup (Built-in CD-RW or DVD-RW / USB HDD / Remote Backup) 8. High Compression rate: 1 ~ 2.5 KB (Enhanced MPEG-4) 9. Remote S/W (Live/Search/Web Viewer, SMS) 10. Graphic User Interface (GUI): USB Mouse, Remote Control, Keypad Surveillance company, Security Solution company, A selling agent relating to DVR Type of partners or companies we want to meet Business Field / Turnover (USD) ●DVR, EDA S/W, ASI ●1,600,00 Telephone : 82-2-3433-0010 Homepage : www.seloco.com E- mail : [email protected] Shehwa P&C Products or Technology Technology : A Personal information protection screen that can be attached to the LCD monitor, It uses an angle-control method to work as a fine blind. Therefore, when the user looks at it directly, the screen can be seen more clearly; while if others attempt to look at it from an angle greater than 30degrees, they will see a black or blank screen, making it great to protect private information. Type of partners or companies we want to meet Mecican Distributor, Wholesaler and Manufacturer who is in IT, mobile phone and computer accessory industr Business Field / Turnover (USD) ●Privacy filter, PE form ●13 million Telephone : 82-31-335-6635, 82-10-8201-0008 Homepage : www.shehwa.co.kr E- mail : [email protected] Major Partner / Customer Distibutor, Wholesaler and Manufacturer who is in IT, mobile phone and computer accessory industry. KOREA IT TIMES April 2008 _ 53 Company Focus Ice On The Roads The conditions could hardly be tougher for cars at Hyundai Mobis' Swedish winter test centre T he knee-deep snow and hanging icicles make the scene look like something out of a fairy tale. The beauty of the countryside make people's heart flutter but the freezing temperatures mean the landscape is all but uninhabited, but for a cluster of undaunted souls. This is the winter test track for of Hyundai Mobis located in Arjeplog, about 500Km to the north of Stockholm, the capital of Sweden. A little way behind, there is a small building behind a signboard with the word ``Mobis'' written on it. This place is not only the command centre for the winter test tracks, but also the headquarters for the development planning of the Mobis control system and its design. "Temperatures here go down as low as -30°, we can get ice over 50cm thick in winter. That makes it exactly the right kind of place for winter test tracks. As a result, the more than thirty companies from across the world, like Mobis, and also Mercedes-Benz and BMW, use this region for their winter test tracks," says Lee Seungho, a researcher at Mobis' technological research institute. Winter test tracks are made up of a series of land track and lake tracks., which means that the cars drive both on road surfaces that have frozen up, and also on solid ice. The Mobis land tracks in Arreplog are set out just in front of the office building. There are three kinds of track.10°, 15° and 20° slopes test 54 _ April 2008 KOREA IT TIMES traction control system (TCS). Split roads test split electronic stability control (ESC) and anti-lock brake system (ABS). And urban tracks check the combined functions of travel and control after setting up obstacles like those that might be found on urban streets. TCS , which is tested on hill roads, prevents wheels from running idle when starting up the engine or speeding up. If a driver presses down on the accelerator when the car is at a standstill on icy or snowy roads, wheels tend to skid. The TCS, however, can maximize the accelerating force of the vehicle by properly adjusting power to the driving wheel. ESC is an advanced technology enabling safe steering by automatically controlling wheel skidding and the turning angle of the car through sensors installed in the four wheels. It works by computing and comparing the driver's actions and actual movements of cars when in sudden dangerous situations, such as coming across an unexpected bend in the road, or an obstacle. The ice track is located on a local lake, which is about 3-minute distant by car from the office building. Due to the extreme cold weather, the water in the lake can freeze to 15 metre-thick sheet of solid ice. Here, it is possible to conduct onestop test controls, driving, traveling and safety performance to test automobile safety for ABS on straight roads, widely used ESC test roads, handling course tracks. Cars also have to go around circular tracks, which are used for turning tests and slippery roads. Every kind of surface is thrown at a vehicle - icy and snowy roads, curves and slopes. Each track is systematically managed to make the toughest of tests. The icy tracks used in this place are made of polished ice. Unlike the rough surface of natural ice, polished ice is as smooth as the ice used for a skating rink. Rigorous tests are executed under the worst possible conditions to ensure the cars can handle whatever can be thrown at them. Hyundai Mobis has developed a sash-integrated control system, incorporating technologies used for MDPS, which is now being mass-produced. In addition, air suspension and advanced airbags have been supplied for the Genesis model since 2006. The unforgiving tracks established in Arreplog and excellent Mobis technicians will play an important role in the development of systems and help get a better product out to customers in a shorter time. Mobis Accelerates Development of Integrated Control System Korea's first ABS system for commercial vehicles set to start production by mid-2008 H yundai Mobis, which announced it would become a global car part maker this year after achieving sales of 1.5 trillion Won through changes and innovation, will get one step closer to the development of vehicle incorporated control system by developing a new, luxurious model. Hyundai Mobis said in March that the company has completed the development of ABS for commercial vehicles as well as state-of-the-art control devices - the ABS and a higher model for ESC. It is now testing with a view to mass-production. Regarding this control system, named Mobis Electronic Brake (MEB), Mobis has finished the establishment of mass-production system for ABS which is over 30 percent smaller than the existing some models and will launch its production. The ABS for commercial vehicles will be applied for models such as Mighty County of Hyundai Motors from the middle of this year and a test of its performance has already been completed. ABS for commercial vehicles, which has been developed in Korea for the first time, is better at control compared with those produced by other leading companies, and is also cheaper. As a result, products by Hyundai Mobis will likely be competitive in both domestic and foreign markets. They also hope to create an import-replacement effect amounting to about 100 billion Won over five years. Hyundai Mobis is focusing on the development of electronic control system because the related technology will advance the development of vehicle incorporated control system. This system is a concept of combination of two pieces of technology. The first is the "active safety system'', aimed at preventing crashes between vehicles in advance, such as adaptive cruise control (ACC) - which controls collisions by maintaining consistent distance from a car ahead. The second is the "sash incorporated control system,'' which promotes travel stability by combining and controlling individual systems. In this way, a vehicle-incorporated control system, which controls various electronic systems using an ECU, is a unique system, one which can protect the safety of passengers under any traveling situations and reduce costs by using various sensors and controlling devices. If this system is commercialized, passengers' safety will be strengthened through a reduction in traffic accidents, and Korea's spending on traffic accidents - which amounts to 1.5 trillion Won per year, will be reduced by about 20%, according to industry figures. Hyundai Mobis has secured core technology for a vehicle incorporated control system after developing a high-quality electronic control device and will be able to speed up the development of a vehicle incorporated control system by linking MDPS which is being mass-produced by Mobis and also advanced airbag technology, for air suspension , which is being provided for Genesis. In the meantime, at a recent presentation, Hyundai Mobis unveiled a plan to increase the annual production of ABS and ESC to 2.87 million units by 2009, - from the current 2 million, and increase the annual production of their EPS system to 1.6 million units by 2010 - from the current 800,000 units. KOREA IT TIMES April 2008 _ 55 Green IT L Green the way to go for IT ooking at the successful story of General Electric (GE) would suggest that the answer to that question is feasible if the flow is created and linked to the companies' revenue. When GE's profit growth rate dropped to single digits, the company's President Immelt took out the "Ecomagination Card" as a new business plan. That long word is an emalgamation of ecology and imagination. Experts were cynical and bitter about the idea - after all was GE not a company that was heavily criticized for creating all kinds of pollution. But GE's unstinted investments and scrupulous preparation not only helped them to gain credit from environmentalist, but also helped the company to gain the title of the global leader in the eco-friendly industry. The Biodegradable Bamboo Phone, designed by Gert-Jan van Breugel GE's most recent sales and net profits have increased by 18% and 15% with the help of the Ecomagination Strategy and its ecofriendly products. As Immelt said, "Green is green." GE is seeking to increase the sales of eco-friendly products to 20 billion dollars by 2010. Preserving nature 56 _ April 2008 KOREA IT TIMES Green is the new buzzword for the Information Technology industry worldwide. But is going along with the flow of the world's trend helping the growth of Korean companies? signifies more than natural habitats or organisms; it is a money and growth engine for entrepreneurs. What does it mean by creating a flow? How do you connect this flow to the business? Mobile phones that are made of bamboo shoots and cotton are just one of the many examples of this. Close to a billion mobile phone handsets are globally produced every year, yet only 10% of them are recycled. Cell phones may be a humans' new best friend, but they are a a real enemy of nature. Gert-Jan van Breugel, a designer from the Netherlands, has designed the bamboo phone and suggested a solution to the problem of recycling. The bamboo phone is made from elements extracted from bamboo trees and the entire phone is biodegradable, except for its antenna and battery. This environmentally-friendly phone has another surprise; it comes with bamboo seeds embedded in the casing. When the battery, antenna and print board are removed, the case will begin to disintegrate in a few weeks. The bamboo seeds within the cast will then start to germinate and grow. This phone is designed to be used without charger as well. Instead it is equipped with a manually-operated crank charger; a 3-minute cranking session gives the phone enough power to make one call. This means the bamboo phone never needs to leave you stranded with no battery. The phone is also equipped with a monochrome display to ensure maximum energy efficiency. From the same urge to save the environment came designer Qian Jiang's cotton-based Softphone. It uses electronic cellulose structures in the form of a series of discs and fine, optically clear electronic fibers stretched in between that allow enough light to pass through and display simple contextual menus. The phone's antenna, battery, camera and microelectronic components are contained inside a tiny chip which, itself, is made of soft squeezable silica. But the best part of this easy, squeezy technology is that when want to hang up, you simply have to give your handset a squeeze. Green IT is the latest trend, but to make a business out of it requires more than just technology. Originality is the key to the success. Korea is working on environmentally friendly products as well. To begin with Kolon Sports' designer Jung Hang-ah has introduced textiles that are made from soy, bamboo, and charcoal. Five backpacks and one T-shirt that are made from plastic bottles were shown off in the company's recent Spring collection, and environmentally-friendly clothes are to be made more and new ranges are to be introduced throughout the year. Since 2004, more than $50 billion has been stumped up by the government to develop 13 core parts of hybrid cars. 1386 cars have been provided for test in public places. An extra 40 billion US dollars has been invested in working on the core technology of environmentally-friendly cars. The Green IT breeze is blowing everywhere. The Industrial computer market is seeking ecologically-friendly products as well. A Company called Advantech (www.advantech.co.kr) has recently released two types of industrial touch panel computers that satisfies the standards of Restriction on Use of Hazardous Substance in Electrical and Electronic Equipment (RoHS). Their computer parts are environmentally friendly and save energy. Low electric power CPU and fan-less hardware helps efficient usage of energy and reduces pollution. The President of Advantech, Choi Youngjoon said, "Every computer our company brings out this year will be ecofriendly. We aim to be the greenest computer makers in Korea." The ongloing slush fund scandal seems to have slowed the managing clock of the Samsung Group since October 2007, but it is hoped here that ecologically-friendly products can serve as new growth engines. ULTRASPARC T2 of SunMicroSystems - a chip that runs on low power The Softphone - a mobile made of cotton The cycle of products in IT industry only lasts for around six months. Although Samsung is very strong in semiconductors and electronics, large investments and long period of time to develop products for six months of glory has not always brought triumph to the company's revenue. The Samsung Group is brainstorming ideas on solar light, nano-technology, and environmentally friendly strategies to get the clock ticking again. Samsung Data Systems, the consulancy and business management arm of the Samsung group, were the first to take the plunge into the Green IT market. They made their move with an Environmental IT Consulting business. The "Environmental IT consulting program" helps companies to offset pollution and operate within international environmental restrictions. SunMicroSystems, a company that is currently promoting Go Green, Save Green campaign. The company progresses every project under an environmentally-friendly base. The most recent processor, ULTRASPARC T2, runs on low power and meets eco-friendly standards. According to a survey conducted by ETNews Korea, 52.9% of 725 people said that they would be prepared to buy Green IT products even if they cost 5% more. This means that Green IT is not just a simple concept, it suggests a product value that will open up consumers' wallets. An increasing number of companies are planning to establish a Green IT-promoting department sometimes this year, and are to start using ecofriendly parts in their products. Only 15% of the 142 companies surveyed have a Green IT Department, but 33% are planning to establish one this year. However, only a small number of companies are actively working on eco-friendly strategies. The companies who educated employees with Green IT training program also stopped at 11%. The ecology gap between global market and Korea is getting bigger every day and Korea must speed up to keep up with the pace. Every IT organization will soon to be required to conform to environmentally-friendly protocol. It is high time Korean companies became more aware when it comes to setting up workable strategies and become a leader in the Green IT movement, rather than a simple player. CGE KOREA IT TIMES April 2008 _ 57 IPTV Race is On for Companies Trying to Bag IPTV Subscribers T he starting gun has gone off. Straight out of their blocks, the runners sprinting for the finish line are KT, Hanaro Telecom and LG Dacom. The prize at the end is IPTV commercialization, which will change people's shopping culture, the health care system, and even the way we watch television. KT, Hanaro Telecom, and LG Dacom are now promoting free IPTV trials and will be showering potential customers with free gifts for the first three to nine months. The competition is getting tougher every month, and now expensive mobile phones are out there to attract people who are considering registration. These three companies are also prepared to keep their original customers with convergence service package deals that add extra money to subscribers' pockets. The cancellation process and fees are set prohibitively high, to encourage more commitment. This means that subscribers had better study carefully before they choose a player to make commitments with. Choosing a carrier is now like marriage: a big financial commitment with hefty penalties for divorce. KT and LG Dacom are providing services only to those who are subscribed to high speed internet. Hana TV, however, is open for everyone who is interested in their IPTV service. Because of this, Hana TV's subscribers are increasing fast. In spite of the long battles in the IPTV billing process and the industry's uncertainty, Hanaro Telecom have launched Hana TV. Hanaro Telecom now has 860,000 subscribers compared with KT's 360,000. The three competitors think that IPTV is their most impressive new 58 _ April 2008 KOREA IT TIMES Three Korean companies do battle for the new market in Internet Television, but do they all have the legs for the chase? product and are sure that it will create a fabulous new source of income for them. All three are set to be reborn as media entertainment companies, and are eager to shake off the mantle of being labeled as traditional telecommunication companies. "In order to survive in the next-generation broadcast and communication convergence market, we need to expand contents and multimedia services. If not, we will soon be put to the sword by the competition," a KT spokesman said. The communication trend is changing from a Personal Computer-based Internet network environment to a TVbased Internet network in IPTV. This can guarantee revenue from the telecommunication market. Starting from April, the competition is expected to get tougher with convergence service packs. High speed internet, IPTV, and Internet phone are parts of the the basic package that will be mostly offered to subscribers. The Kyung Hee University Medical Center recently equipped 150 rooms with IPTV, where their patients can lay down on their beds and be examined by the doctor on monitors they can also use to watch the latest movies, listen to music, and shop on IPTV with a remote control. By July, the hospital is planning to fully equip 1000 patient rooms with u-bed IPTV sets. Another thing that makes IPTV so competitive in Korea is its e-learning contents. Three companies are building their own strategies and ensuring high-standard educational programs to attract subscribers. Four out of ten students are found to be studying online, and the numbers are expected to increase with the recently-passed IPTV Act. KT is providing contents in partnership with MegaStudy, the number one online education center in Korea. Another business model companies seek to push through with IPTV concern shopping contents. KT's 280,000 Mega TV subscribers and Hanaro Telecom's 730,000 Hana TV subscribers are currently shopping through Video On Demand serices (VoD), but the payment transactions are still being made through the phone. A Hanaro Telecom spokesman said, "If the IPTV service goes full whack in the New Year, a simple payment system with a remote control will be provided for subscribers." Hana TV has recently announced that Hana TV's Open Market will soon open for retailers to create SellerCreated Contents (SCC) and provide contents through VoD. Reviews of the products can also be sent in User Created Contents (UCC) form. KT, Hanaro Telecom, and LG Dacom have been warming up long enough to prepare themselves to run on this course. But it looks like being a long distance race, rather than a sprint. They still have to run quite a bit to reach the finish line, but are showing no signs whatsoever of slowing the pace. CGE W Yoo Kwang-hoon, CEO of Millinet Television Revolution Only Moments Away Experts say the Internet is about to change our best electronic friend, the television here would we be without the television - our babysitter, our comfort? In Oldboy, the Korean hit film, Choi Min-sik's character is locked away in a room for twelve years with only a television set to keep him company. He ends up referring to it as his friend - and even his lover. When we feel lonely, bored or afraid, we reach for the remote, and the house is filled with images and sound to make even the darkest night a little brighter. That is why even the most delicate of changes to what is broadcast on our sets, on how they work and what they look like, is of utmost importance to the average person. That is why the Internet Protocol Television (IPTV) revolution is, or should be, of such interest to the average consumer. It promises many things. First, a new means of transporting television signals from producers to viewers - the Internet. And second , it promises to take the idea of realtime away from the broadcasting world. Not much of a revolution say the skeptical, but imagine it - your images no longer come from some monolithic radio mast atop some hill, they come streamed via the same cable that goes into the back of your computer. Gone are the days of fiddling with an easily breakable antenna. And so too will be the days of risking life and limb in a mad dash home in order to make it in time for the latest episode of Muhan Dojun or Prison Break. But despite all the uprooting effects of this impending revolution, television fans need not fret, according to the experts. The IPTV set-top box is a simple device that is easily installed and should be fairly easy to operate, they say. Millinet are a Networks company working with some of Korea's top telecom companies and Internet Providers, and hope to be waving the flag in the frontline of the IPTV revolutionary army. Their CEO, Yoo Kwanghoon, says there is not cause for concern. Says Yoo, "There is no need to throw your television set away just yet. A set-top box is an easy piece of equipment to use, and it is very enabling for the viewer. It will give viewers a new kind of freedom." Yoo believes such a change is inevitable. He explains, "It is a logical extension of the kind of services that already exist. Companies like Hanaro are already using the internet as a kind of DVD rental store. For a fee, a few clicks of a mouse or a remote control can have a blockbuster movies on your screen in seconds. IPTV will take this further, to the realms of everyday television programmes. You will be able to watch what you like, when you like." According to Yoo, it seems the climate is blowing favourable winds in the direction of IPTV. He believes the technological and political boundaries standing in the way of progress are all but gone. "There are few obstacles left in the way of IPTV's progress. It is only a matter of time until this becomes the accepted norm for the television experience," he says. The changes will not come for free, though. This will be a fee-based system, says Yoo, with customers forking out in the region of 25,000 Won per month for subscription fees. However, television has already become more than its early pioneers could ever dream that it would become, but now it is ready to take the next step. With so much high tech in our lives, hitting TV sets to get a picture or fiddling with antennas is all so twentieth century. Our friend, our babysitter, our lover - the television set - is about to grow up and join the rest of the electronic world in the 21st Century. TA KOREA IT TIMES April 2008 _ 59 Event Industry Association Changes Name And Focus A revamped, renamed "KOIBA" aim to speak up for the interests of smaller IT companies through a new policy under a new government tenure. W KOIBA announce their new moniker at a press conference hat is in a name? A lot, if you are a business trying to change the scope of what you are doing. On March 31st, the 12th general meeting of Korea IT Small- and Medium-sized Businesses and Venture Business Association (KOIVA) was held with 135 Information Technology businesspeople at the Renaissance Hotel in Seoul. In this meeting, the IT members with Seo Seung-mo, the chairman of KOIVA announced to that they were no longer KOIVA. Instead, they now want to be known as KOBIA - the Korea IT Business Association. Since KOIVA was found in 1996, it has been responsible of building up strength for the base of the IT industry and providing support for companies working in the IT industry. However, KOIVA's attempts to be developed themselves into the representative IT organization with a responsibility for the Korean IT industry has been diversified with the revised new government organizations. The newly-monikered KOBIA plans to speak up for small- and medium- sized IT venture companies' rights and interests as well as to maintaining sponsorship of a variety of companies in the near future. KOIBA say they will also focus on projects set to merge and expand the base of the overall IT industry in a better business environment. A spokesman also said, "We will continue to improve developed techniques, and build better 60 _ April 2008 KOREA IT TIMES cooperation between IT companies and also network with companies in other industries. We are looking to build an up obstacle-free atmosphere, and support services for companies trying to do business overseas." In addition, the spokesman said they plan to fortify KOBIA's status as a representative generalized IT association. However, KOBIA underlined that all of their grand plans depend very much on the policies of information and communication organizations and other associations in the IT industry that have a say over these matters. On the same day, Lee Chang-han, the director general of Director General for Electronics And IT Industries at Ministry of Knowledge Economy also gave a speech about the political direction of information and communication in 2008 after the KOBIA announcement. In addition, Korea Trade Promotion Corporation (KOTRA) and Korea Development Bank (KDB) spoke at the meeting about the importance of creating an assistance system for smaller- and medium-sized companies in 2008. KEJ "We will build up networks and interbusiness cooperation." Podcast The new Podcast service from Your Questions Answered What is a Podcast? A podcast is a downloadable mp3 audio file that you can quickly and easily access. Upload the files on your mp3 player or mobile phone and listen to them at your own convenience. Why should I listen? To keep up to date with the latest developments in the world of technology in Korea. We offer the best source of English-language IT information on the net, and we won't charge you a thing for it. Check out our website at www.ittimes.co.kr for more information. What can I expect to hear on the podcast? The contents on the podcast will be fun, exciting and informative - giving you the lowdown on all the issues that matter in the world of IT Korea and elsewhere in the world. How can I get the Korea IT Times podcast? The best way to do this will be to go to our website and follow the simple guidelines we will have posted up there when we launch the service. You will need to download a podcast catcher - simple, free software from trustworthy companies. Use Apple's iTunes, Juice player, or a whole lot more to download our free mp3 broadcast. Do I have to pay? Not at all, it is free, and we will try to keep it updated and full of the content that YOU want to hear. What should I do if I am having problems? If you are experiencing any problems, drop us a line or send us an email at [email protected], and we will do our best to help you out. Why are you starting up this service? Korea IT Times is a magazine first and foremost, but the 21st Century is shaping up to be an era of multimedia. That is why we want to give you another way to keep abreast of the latest developments in the world of Korean IT. When can I expect to see the service? We hope to have the podcast available some time in April, but bear with us while we finalise all the technical details. What should I do if I have feedback to give you? We welcome all comment and opinion. If you have anything you want to talk to us about, do not hesitate to get in touch. KOREA IT TIMES April 2008 _ 61 Feature UCC - More than a Flash in the Pot? Video sharing sites are all the rage, but will the excitement over the sites die down or is it here to stay? Cho Eun-jung investigates. A pot full of water boils over - for a moment there is nothing in the kitchen but lather and commotion. But when the steam clears and the mess has been cleared up, there is nothing left in the pot. This is Korea's favourite metaphor nembi geonseong - literally "pot character." It means that like the pot, everyone in Korea gets themselves excited about something that appears to be the next big ting. But ask them again about it next year and they will not even be able to remember anything about it. Hines Ward was a classic example of this - a Korean-American sports star who was an unknown on the Korean peninsula until he was named American Football's MVP in 2006. Nobody had even heard of him until he scooped the prize, but afterwards, you could not escape Hines in Korea - he was everywhere, beaming down at you from advertising hoardings, staring at you from the cover of every magazine in sight. But if you mention his name now to the average Korean, they will sit in thought for a while before suddenly smiling and saying "Oh yes, Hines Ward! I remember him!" That is why Koreans are skeptical to the extreme about anything claiming to be "the next big thing," just in case it turns out to be a case of 62 _ April 2008 KOREA IT TIMES nembi geonseong, a Hines Ward in disguise. For a little while however, the world of technology has been quietly murmuring predictions that User Created Content (UCC) is not from the pot. It is no fad - it is here to stay, say the voices, and the more they keep saying it, the more true it sounds. It all started with a very simple concept - with video capabilities becoming cheaper and more accessible to the ordinary consumer, people needed the ability to upload what they had recorded on their digital cameras and mobile phones onto the web. They wanted to show off their holiday videos to their family and friends or even to all-comers from the rest of the World. Internet entrepreneurs like Bill Gates and the like must be wondering why they allowed the likes of plucky companies like YouTube and Pandora get involved in the whole scheme. Had they acted earlier, we might all be watching UCC videos on some kind of "Microsoft UCC Viewer" instead. Instead, YouTube was an overnight success story - set up by a group of American twentysomethings in a converted garage. The friends had inadvertently spotted a gigantic gap in the market. Suddenly people around the world were sitting on throusands of megabytes of contents, but they had no way of sharing it until YouTube and their ilk. But though most of the world thinks that YouTube was the first UCC video site to make it to the net, this is, actually, a myth. Pandora TV, Korea's biggest video portal, predates the American site by a whole six months. Pandora have a gigantic share of the Korean market. By 2004, they were already getting over one billion page views per month. In 2008, figures have it that they now have a million Korean visitors every day. However, though Pandora are the biggest fish in the Korean pond, they are not even making a splash on the global scene compared to YouTube. Chen and Hurley sold their company to Internet giants Google for a gigantic $880 million, in a deal that shook the IT world. Now, with the clout of Google behind them, YouTube are out to take over the world - and that includes Korea. However, with companies like Mnet cast, Gom TV, Mgoon, Daum, Afreeca and Pandora already offering Korean Internet users video options by the truckload, just how YouTube intend to find a way in to this already saturated market begs the question "how?". Korean companies are realizing, however, that though they might be the bosses of their own patches, they have very little global influence. Pandora has launched a global site, aiming at markets within Asia, and have announced plans for an English version of their site. Rumours have it, however, that they will be providing services in Chinese, Japanese and Spanish, too. April also sees them go live with a global version of their site, Global Pandora. Last year, an American IT venture firm called DCM reportedly invested $10 millions dollars in Pandora's operations. DCM clearly do not think UCC comes from the pot. The experts believe that as the Internet continues to expand, the user experience will develop. Some Internet experts have even called it a new age of the net, with Irish Internet Tim O'Reilly dubbing the new, richer, more dynamic, user-based Internet experience, "Web 2.0." Daum are a Korean company with their finger in a variety of Internet pies - they are one of the biggest UCC video sites in Korea. Their Video Service Team Manger, Shin Jongseob believes UCC will be apart of the Internet's new age. Says Shin, "As the Web 2.0 age approaches, users find themselves using an Internet that is in a better condition for making and using UCC, so the output is increasing all the time. And as the value of UCC increases more and more, its value goes up by the day." Critics point at UCC and make derisory comments. What is on the likes YouTube, Daum and Pandora, they ask. Is there anything else than what many people would consider cyber trash - people falling off bicycles, schoolchildren lip-synching pop songs into hairbrushes, random rants about inane subjects. UCC looks like unbridled chaos from the outside. Chad Vader - Day Shift Manager is a short comedy show broadcast by American friends Matt Sloan and Aaron Yonda on YouTube, starting in 2006. However, although it started as a very low-key production, the first episode of the Star Wars spoof has been viewed over 6.5 million times. The program has been featured on America's ABC network, has been translated into French, Spanish and Portuguese and has spawned a merchandising line of DVDs, t-shirts and other memorabilia. Chad Vader might be an bizarre aside in the annals of Internet history for the moment, but any video series that can pull in a global audience of that size is going to have advertising managers reaching for their cheque books as they look for sponsorship possibilities. Advertising incentives are going to propel the notions of business and profit into the UCC world, one which has, until now, been pretty much "just for fun." Daum's Shin says, "UCC sites are in a position where they can make a profit because they get so many visitors, who stay on their sites for a long time. Advertisers are looking for new ways to post their content and this is also starting to surface. Companies are looking to promote themselves through this new form of media. They want to blend UCC and business." In addition, Daum think that the craze for UCC is borne of a boredom with the conventional media - which they think has run its course. "People are getting bored with the way that the television presents them with information. Videos that are uploaded to sharing sites are rough, for the time being, but web users are hooked now. They find the whole experience empowering," Shin says. Nembi geonseong exists in Korea, but not in the world of UCC, if experts and web site hit counters are to be believed. In fact, as the Internet's contents get richer and richer, what people put up on UCC sites represents not just a new, interesting thing, but an intoxicating freedom, a new democracy and a freedom of speech that meddling governments and big business have, for the time being, very little control over. KOREA IT TIMES April 2008 _ 63 Feature IT Bridges not Strong Enough for Brittle Human Emotions Technology helps the world become a smaller place, but though human relationships are now easier to conduct, Kim Eun-sil asks if they are not suffering as a result. T he camera focuses on a table where a middle-aged man and his son are having breakfast. "Your hair is so messy!" So says the older man to his son. And these are the only words spoken between them during the meal. After breakfast, the older man is looking for his mobile phone before he goes to work so the son calls his father's phone, and he find the phone on the table. On the display, as the phone rings, we can see his caller ID and the son's picture on the phone with, instead of his name, the words "My Hope." It is quite an impressive televisual moment, to be hon- 64 _ April 2008 KOREA IT TIMES est, it almost brings a tear to the eye. I was not the only person who was moved by this SK Telecom commercial. It is one which makes a fantasy of the IT world and nowadays, advertising like this is becoming the norm. But the fantasy is becoming a reality with the appearance of WCMA. According to adverts, if you talk via video phone, it will make your husband come home early or turn you into a dutiful son. Through a well-known portal site, you can help someone who have never met. Society is warmer than before because of portal sites and the world is full of humanity with WCMA. If the commercials are to be believed, IT is building bridges between people. I also regard technology as a convenient way of getting in touch with people. I can tell all the members of a presentations team about a meeting time by SMS at once, and we can even have a meeting online. Every document which we need for our presentation can be uploaded in mere seconds. Now presenters do not have to meet each other face to face before presentation. "Hello" - it is an embarrassing word to say just once on the day of the presentation. After the presentation, everyone feels relieved and they say to each other, "Thank you for your trouble." But these superficial pleasantries mean to say, "We are done here, we don't need each other anymore." The next time they meet, these individuals will probably pretend not to recognize one another. Most people habitually log in to MSN's Messenger or Nate On every day. Messenger comprises lots of people's names in long lists. Some of them might not know each other well, and some of them might even have never met in real life. If you do not want to see a name anymore, even with no real special reason, you can break that relationship in a second with just one click. With one click we built the bridge, but with a similarly brief click, we can also break it. We are becoming more and more accustomed to the terms of the "IT Bridge". An image on a phone can replace our faces, and letters on the screen take the place of our voices. IT helps us build bridges more rapidly than ever, but also gives us the means to destroy them in the blink of an eye. If the old man had told his son he was his "hope" with his own voice, face to face, it would have made the bridge between them stronger than any "IT Bridge". People need strong bridges, ones they can trust, ones that they can walk on and feel safe. If we play our cards right, perhaps we can find a way to couple our intelligence and the power of technology to build bridges that are sturdy enough for our frail human characters. Tech Wizardry an Undervalued Skill A David Jones, a teacher at Boston Campus, a language school in Korea. my's laptop was screaming bloody murder. The big CPU fan was whirring and chirring, behaving like a sick, overweight man running a marathon. Good in spurts, but there was no way he was ever going to finish. We thought the laptop was finished, making all manner of noise, working momentarily, then straight to the BSOD (Blue Screen Of Death). Besides an over-priced cellular phone, her laptop was the only way of communicating with the outside world. There was a job to do. I brought it home one night, puzzling over what looked like a perfectly normal laptop in most respects. The only real concern I had was the amount of filth and grime covering every centimeter of it. So, after some research on the Internet, I figured out a plan of attack. I had to unscrew the keyboard from the laptop in order to have access to the big, obnoxious, pain in our backsides. Trouble was, it appeared normal in every way. I gave it a shake, solid. I spun the fan blades with my finger tip, normal in every way. I gave the fan plug a jiggle, and attempted to pull it out gently. It was then that I knew we had a problem. The connector remained attached to the motherboard, and what I had in Sometimes there is no substitute for good workmanship, and it does not always have to cost the Earth. my hand were three frayed, naked wires, pointing back at me as to say "Why are we out of our protective sheath? " It wasn't as easy as somehow rolling them back on there. This was a job for a professional. I broke the news to Amy. She was more than cool about the situation, and even offered to tag along. We had to get the wires soldered back into the connector, and I figured the best place would be Technomart at Gangbyeon Station in Seoul. It was a quick bus ride away, and I had been there many times with all types of purchases in mind. It was the first person we got to talk to who turned out to be the most helpful. The picture of us both was pretty funny, looking back on it. I had the laptop in question toted under my arm like a school book, wandering from place to place on the 7th floor, saying "laptop fix?" After having a few people shooing us away, we met a really nice man. His English was limited, but, they were far superior to any Korean either Amy or I had acquired up to that point, and he was more than happy to have a look. With the keyboard off in a matter of seconds, he got right to work. I only had to point at the problem, but he already had his soldering iron in hand, preparing some molten metal for the application. He re-attached the wires with the precision of a quiet assassin, picking his targets, and hitting them with acute accuracy that some Olympic biathalon participants would be proud to witness . The work of a solderer should be revered in our culture, but, it seems their destiny is to live a modest, quiet, happy existence, helping the common man with his troubles. We were at his tiny little cubby-hole of an office for no more than 15 minutes. In that time the laptop was taken apart, fixed, and put back together. Amy and I spent this time chatting about how such a shop could exist in such a big building, with seemingly no customers, and make any kind of money at all. We postured that these repairs were going to be pretty pricey if he were to keep his tiny place open. So, when he handed back the laptop, I kind of cringed and asked him how much the job was going to cost us in my broken Korean. He said, matter-of-factly "Man Won". My eyes went wide, and he shook his head in approval, so as to say "I know you thought it was going to be more, but yes, all I really want for this is 10,000 Won." We left shaking our heads, not knowing how places like these stay open - but we left smiling. David Jones [email protected] KOREA IT TIMES April 2008 _ 65 In-depth report How is IT Transforming Korea? The sixth in a ten part series "I would even sell the house for the sake of my child's education," is a phrase that is uttered from the lips of Korean mothers across the nation. Another common expression you might hear is, "I have bent over backwards before the sake of my child." Let's have a look at the ten year old boy next door to see if these expressions are only exaggeration, or if they bear any truth. At three o'clock, Min-su comes home from school. Twenty minutes later, a van with martial arts stickers all over its front and side doors stops in front of Min-su's apartment building. Soon after, kids in taekwondo costumes pop out the of doors and streets, and get into the van. An hour later, another van comes and girls in the neighborhood run to the van, they are going off to an Art Academy. Thirty minutes go by, and the taekwondo van comes back to drop off the kids. Min-su now has to go to a tutoring center to learn English and Maths. He normally finishes his school homework there as well. Min-su's friends say hi to him as they walk to the piano and violin academy. Around six o'clock, kids stand around the food stand eating spicy rice cakes, fishcakes, or a bit of chicken on a stick. Min-su gets home close to seven, since his academy does not send him home until he has completed his assignments. Min-su has to stay at the tutoring center until 9 o'clock during test periods. On Saturday, he has to go to basketball practice and on Sunday, his writing tutor comes to his house to teach him for an hour. 66 _ April 2008 KOREA IT TIMES According to a study conducted by the Korea National Statistical Office, households' education expenses have increased by 10% since 2007. Most families with children in the city area are spending $2400 dollars per month, and at least $300 of it is spent on educating their children. Further studies predict that the minimum cost of education will increase soon. University tuition has increased by 10%, while a 13% increase occurred in expenses for after-school learning centers, private tutors and extracurricular activities. The price of education supplies has increased 6%, to its highest point since 2003. Eight out of ten students are taking extra lessons with private tutors for at least 8 hours a week. Korea's national educational spending for 2007 was $20.1 billion. A study from Hyundai Economy Research Center shows that the actual cost of education is way more than the statistics from the Korea National Statistical Office. Hyundai Economy Research Center has found that the increasing number of kindergartens, whose monthly tuition fees of $2700 is also increasing. Currently, 15% of kindergarteners are paying more than $2000 tuition every month to receive superior education. Further research shows that 20% of high school students spend at least $1000 a month. This is the country where families generally spend at least 20% of their income on education, and 26% of mothers take on part-time work, or second jobs to keep up with increasing educational spending. Where else would online education contents be more welcomed? But how is IT transforming student's lives? There is always so much to learn, but limited budget and time. If it were common to find students shuffling through vocabulary cards in the buses and subways until recently, now it is more common to find students watching their cell phone screens. Students choose private tutors on their own by reading their profiles or checking out the short video clips of their potential teachers, and download chosen subject lectures on their mp3s or mobile phones from learning aid websites like MegaStudy. Lectures are available in mp3 format from $1.50 to $7 and can be replayed as many times as students need. The Ministry of Knowledge Economy's research shows that four out of ten people are getting online education. The average spending on online education per month is estimated to be around $29. According to a month-long survey conducted from October 26, 2007 by the Ministry of Knowledge Economy and Korea Institute for Electronic Commerce, 67% of students aged between 6-19 are using e-learning programs online. National online educational spending in Korea increased 7% from last year to $1.7 billion. Sun Eun-jin, the Director of MegaStudy said, "The ELearning market has been growing since 2000 and its contents and quality are improving fast. We expect to see more subscribers this year with the expansion of the subjects available." From March 16 to 21, JTC1/SC36, or the educational information technology committee meeting, was held on the Island of Jeju. Fourteen countries, including America and Japan took part in discussions with 80 experts from the International Organization for Standardization (ISO). JTC1/SC36 has been running with 25 member countries since 1999 to set international standardization in the education information field. According to Korea Educational Metadata, there are three types of metadata technology for education, technology, copyrights. This technology has been tried out in 16 cities, so if it is internationally standardized, Korea's E-Learning contents and service industry will become more competitive than now. KT's Mega TV, Hanaro Telecom's Hana TV, and LG Dacom's My LGtv are focusing on educational contents to attract Internet Protocol TV (IPTV) subscribers. When IPTV develops yet further, students can study with a private tutor online and have a realtime conversation, just as if a student was actually studying with a teacher face to face. KT's MegaTV educational contents are near to 3,600 at the moment with 500,000 subscribers. Mega TV subscribers can access to any of these educational programs without paying additional costs. 8,300 lectures are for first grade to third grade elementary school students on the subjects they learn at school. Also, a special lecture has been designed for mid-term exams and final exams for students, to study with special help before the test. For high school students who are studying for don't provide - such as Thomas and Friends, Veggie Tale, Between the Lions, and Learning English with Ozmo. We also have programs where children can learn English by songs like Thomas Sing Along, Teletobi Everywhere, and DoodleBobs." Children who are with LG Dacom's college entrance exams, KT has made partners with leading education institutions, MegaStudy and Jongro Academy. Once again, all e-classes are free for Mega TV subscribers. 7,000 educational contents for English and Creative classes are also offered for young learners. Hana TV is working in partnership with VitaEdu, the online teaching center that is best known by the high school student in preparation of the college entrance exam. Hana TV's contents provide strong TOEIC and English learning aids for adults. They also provide lectures for those who are studying to achieve Government Official Certifications. Vice President of Hanaro Telecom, Kim Jin-ha said, "Hana TV is especially strong in contents for young learners. We offer unique, yet competitive programs that other TV providers myLGtv can learn English through childrens' songs, stories, and some of the PBS English teaching programs. Children can learn to read and write English using various programs. The most amazing part of using myLGtv is the subtitle system you can control the speed. This helps young learners pronounce difficult words by playing in a speed that fits the students' English level. Children will no longer have to hop on and off the vans to go to all sorts of academies after school for extra curricular activities. Guitar lessons, piano lessons, taekwondo programs, English lessons, all school-related subject lessons, and even certificate lessons for adults - these are all available online for one tenth of the price of learning offline. It might be that IT is helping students like Min-su get a part of their lives back. CGE KOREA IT TIMES April 2008 _ 67 Focus The Incheon Free Economic Zone A City From Nothing The Incheon Free Economic Zone Authority tells the Korea IT Times about Northwestern Korea's big hope for the creation of a futuristic megapolis where once there were only mudflats. T he Incheon Free Economic Zone (IFEZ) is a project aimed at reviving the national economy by restructuring it into an advanced industrial structure. In the world of Today, Korea still lags far behind Japan in economic terms, and China has emerged as a giant market. Under these circumstances, if we continue to reply on the manufacturing-centered, export-led economy, Korea will still remain a weak nation sandwiched between tech-savvy Japan and the new economic powerhouse - China. The IFEZ was built as a way to further Korea's economic development to an advanced level, while taking advantage of Korea's great geopoliti- 68 _ April 2008 KOREA IT TIMES cal location. The goal is to secure an important engine needed for the country to attract high-value industries, including state-of-the-art technology businesses and tourists. The IFEZ will create business and an eco-friendly residential environment that will meet global standards. Its mission is to attract industries, spread this trend to the entire country, and become a business centre in the huge Northeast Asian market. As of January 2008, a total amount of US$8.9 billion has been committed to the IFEZ. Of this amount, $299 million has been from foreign direct investments. In terms of attracting investment, the IFEZ is still in its initial stage, with a little more than four years having passed since its establishment. What is important is its competitiveness. The IFEZ is a competitive zone thanks to its location, its infrastructure, its personnel resources, and its urban planning. The current strategy to attract investments is to focus on attracting knowledge-based research facilities. These facilities will serve as a catalyst to attract enterprises and create continued value based on their relationship with enterprises. One of our major duties is to help Korean and foreign global enterprises - the leaders of the global economy select the IFEZ as their advanced base and a testbed to advance into the rest of Asia. Now into its fifth year since its founding, the IFEZ has gained in recognition, and a growing number of foreign investors are taking an interest in the IFEZ. We are going to maintain a close relationship with the central government to speed up the "quality management" and remove the negative factors that hamper urban development and investment attraction efforts. First of all, Songdo International City will become a centre for multinational enterprises and modern technology. Currently, Gale International, an American developer, and POSCO Construction are building the Songdo International Business District, the IFEZ's main district with state-of-theart business and eco-friendly residential environment. Portman Holdings, another American developer, Samsung Corporation, and Hyundai Engineering & Construction plan to build Songdo Landmark City in northwestern Songdo, where the 151-story Incheon Tower will be built. Yeongjong Airport City will be born as a hub of logistics and tourism. Fiera Milano, a group of Italian companies that not only manages spaces of exhibition centers, but also organizes shows and exhibitions globally, will build an exhibition center in the logistics complex. Kempinski, a European hotel operator, will develop a leisure complex in the coastal area west of Yeongjong Island, and Lippo Group, a developing firm from Hong Kong, will develop a similar complex in an area northeast of the island. The Cheongra District is turning into a center of international finance and a leisure resort. One of the main development projects in this district is Cheongra World Trade Center (WTC), which will be built in the middle of the district. This district will be housed with a 77-story WTC building, and business and commercial facilities. Besides, Incheon High-Tech Park will be built in an area south of Cheongra. The geographical strengths the IFEZ possesses makes the free economic zone distinguishable from other cities. The IFEZ has strength in terms of its geographical location, infrastructure and abundant local population. As the IFEZ is located at a midway point between major East Asian cities like Beijing, Shanghai, Tokyo and Hong Kong, and it will be convenient to travel from here to any of those cities. In addition, it has both an international airport and a harbor, which make it possible for people and goods to travel fast and easily. Korean people also are industrious, and are welleducated and very IT-savvy. On top of the natural competitiveness of Incheon, the IFEZ has also developed three urban development strategies to help it grow. First, it will build the world's first "ubiquitous city." Ubiquitous systems will be introduced into all aspects of urban life to speed up business and create better residential environments. Secondly, the IFEZ will be an ecologically-friendly venture. More than 35% of business and residential areas will parks or gardens. The IFEZ will be developed as a "designed city." From the urban development stage, everything - from the urban skyline to advertising standards - will be taken into consideration. Major buildings will be planned and designed at a global level and emerge as new landmarks in Northeast Asia. All these features are possible only because the IFEZ is quite a new concept in city development. It is being built as a city from scratch, in contrast to Shanghai or Singapore. The three districts in the IFEZ Songdo, Yeongjong and Cheongra are being built under different development plans. Songdo is modeling itself as a center of multinational enterprises and knowledge-based industries. Yeongjong will be a centre of aviation logistics, tourism and leisure resorts, and Cheongra will become a capital of international financing and leisure. In addition, each district is also designed as a self-reliant city that has residential, commercial and leisure facilities, with their specified industries working side by side. But it has not been plain sailing for the IFEZ, by any standards, and we still need a lot of work done. Most of all, there has been a lack of public understanding when it comes to what we are doing at the IFEZ. When it was established, the IFEZ was regarded as a national project aimed at securing a new growth engine for the national economy for the future. But regrettably, there has been no clear-cut definition of the IFEZ's status and nature yet. For example, nobody can find answers to questions like this - What does the "free" in the IFEZ mean? They are not sure if this is a national project or a provincial project. We are in urgent need of generous support from central government. We need them to help by lifting various restrictive regulations and providing subsidies. The IFEZ is a national project with clear visions of building a businessfriendly city. One of the visions is to build a "free" Incheon and a "free" Korea. If the "free Incheon" model is established stably and successfully, it can act as a model for the whole country. KOREA IT TIMES April 2008 _ 69 Hot Issue “ We Will Improve in Korea” YouTube Chief - The online video site's founder tells Korea that YouTube's international perspective gives them the upper hand in the UCC war. 70 _ April 2008 KOREA IT TIMES B usiness managers around the globe must get tired of this dull mantra: "East Asia is the next big market." However, as this area contains one third of the World's population, and as Asian markets just keep on growing, the increasingly large disposable income of young Asians means everything to corporate fatcats in US and European offices. The English Premier League is the most popular football league in Asia so much so that its Chief Executive recently announced plans to "export" games, and have matches played elsewhere - including Asia. Or especially Asia, maybe. And the IT big hitters are no exceptions to this marketing rule. Google has been trying to crack the gigantic nut that is the Oriental market for some time now. However, Internet companies elsewhere in the World are quickly finding that although their flashy websites from Europe go down well in the US or vice versa, this is just not the case for Asia. The problem is that in the case of Korea, Japan, and even in China, the US and Europe have left it too late with their Internet ventures. In terms of search engines, UCC sites and so on - these sites already exist in Asia, and have existed for some time. Naver, Daum, Pandora, Mnet, Gom. The sites have evolved in Korea, and have almost exclusively Korean staff. They helped to create the national Internet landscape. Korean versions of hit sites like Google and YouTube seem almost doomed from the outset. It is a Korean instinct to reach for Naver, Daum or Pandora TV, just as the rest of the World cannot function without its YouTubes and Googles. It is entrenched in the national character here, and it will be very hard for outsiders to find a way in at this late stage. But at a press conference held in Seoul last month, Steve Chen, the cofounder of YouTube, and its Chief Technical Officer, seemed to hint that YouTube was ready to employ a different strategy in the effort to break into the Korean market. To all the individuals and companies who have said a resounding "so what?" to the launch of YouTube Korea, which went live late in January this year, Chen asks Koreans to think of the international angle. He said, "There is a lot of content being created in Korea, but people here find it hard to reach an international audience. We can offer companies, artists and individuals a global audience, a platform. You can build a world brand through YouTube." Reportedly, the launch of YouTube Korea saw a sudden surge of traffic to the side of 382,000 visitors to the site on 23rd of January, the day of the launch. However, there are now only around 115,000 daily visitors to the site from Korea. When you consider that 997,000 people visit the Pandora TV website a day, there is an incredibly large amount of ground to be made up. And Chen readily conceded that YouTube Korea has not really made much of a dent in the Korean market thus far. He said, "Our site in Korea is little more than a translated version of our main English site at the moment. But we are going to customize it and tailor it to meet Korean needs." Chen was in Korea with a team of Youtube and Google representatives for a five-day tour, which included several Google and YouTube-themed events. The Korean visit completed his tour of Asia. And Chen, himself a TaiwaneseAmerican, admitted there he has reasons of his own, which add a new dimension to his company's desires for YouTube to succeed on this continent. He said, "I have a personal interest in taking YouTube into Asia. I really want it to have a more Asian focus, not just the current American and European outlook." However, Chen even said that he has noticed changes as Google have increased their spending in Korea, showing signs that the YouTubeGoogle team are here with every intention of staying. He said, "I was here in Seoul last year, at the Google offices, which have grown a lot since then." Building partnerships has been a key YouTube-Google strategy in recent times. Indeed, YouTube boasts that it has over 1000 partnerships Worldwide. YouTube has been busy especially here, building up partnerships with a diverse network of companies here. Companies involved in media operations, like the Joongang group and MBN, have signed up. And in the area of youth culture, the likes of the Gorilla Crew break dancing community and Park Jin-young, the music producer behind the Wondergirls, have also joined forces with YouTube. They have also set up a channel with Castnet, an online talent-promotion site. Indeed, they also revealed that they are working with Korean UCC video site Mgoon, and might see a site like this as a way into the Korean market for them. In recent times, it has been difficult to get YouTube out of the news, especially in Asia. Last month saw furore in Pakistan as a video which allegedly appeared to criticize the Islamic faith provoked Pakistani officials to impose a blanket ban on the site, which has recently been lifted after the offending videos were taken down by the site. Pakistan government spokespeople had labeled the videos, "highly profane and sacrilegious footage." Over in China, there has been a myriad of problems, with videos showing the Taiwanese flag causing a stir, resulting in bans and restrictions. Thailand also banned YouTube for around six months last year after videos that appeared to deride the Thai royal family were uploaded to the site. However, despite these hiccups, Google and YouTube remain confident that they will break into the Asian market. Chen believes the desire to grow further - into Asia and beyond - is only natural for a company like YouTube. He said, "Most of our users are not from the US. Going global is a logical step for us." As UCC sites are, by their very definition, user-based, YouTube are recognizing a need to connect with their users, wherever they may be. Chen added, "I'd say about 1% of what we are worth as a company is down to our own technical expertise. The other 99% is thanks to our users - the peo- ple out there who upload and download contents on the site." YouTube are truly global, but have come up against a lot of local resistance in Asia. Trying to force their way into a market that is already close to saturation is hard. Local competition between the likes of Daum, Pandora and Mnetcast is high enough even without YouTube. But the company seem sure that their unique "international appeal" will mean that Koreans are forced to turn to them if they want to do anything on the world stage. "Working together [with companies, TV stations and musicians] we can sell global advertising on YouTube," announced Chen. That is something not one of the Korean UCC sites can boast, and if Korean companies buy into this message, the American company might just have found themselves an edge over Korean domestic competition. It is certainly worth thinking about while Pandora and GOM pretty much have the domestic market sewn up, one thing they will struggle with is getting commercial messages out to an international audience. Everyone in Korea knows what Naver and Pandora are, but does anyone else in the World? Indeed, Pandora are moving quickly to try to rectify this discrepancy. April is the month when the company goes live with a global service that is targeted at markets like The Philippines, China and other countries close to Korea in terms of geography and culture. However, YouTube have an interesting strategy in aiming for Korean companies who are looking to expand abroad, if that indeed is their primary target. If that is the line they try to pursue - rather than trying to target the nation's youth, who could not care less about foreign UCC sites - they might enjoy some success through this more inventive approach. TA KOREA IT TIMES April 2008 _ 71 Hot Issue Telecoms merger set to go ahead KT and KTF are set to merge, but unions worry that job and pay cuts loom on the horizon I t was confirmed that KT and KTF are to undergo reorganization in preparation for the consolidation of the two companies. KT, in particular, has started analyzing the wage system of KTF, considering changes in employment conditions which become the most sensitive in the process of merging companies. As KT officially initiated the reorganization process for the merger with KTF like this, the industry expects that KT will make an application to get approval for the merger in good time. The two conglomerates are making plans to establish IT, distribution and logistics subsidiaries which will share a common infrastructure after the merger, according to an KT and KTF statement made on March 23rd. Lee Yong-kyung, former president of KT, pursued the establishment of an IT unit five years ago but the plan 72 _ April 2008 KOREA IT TIMES was cancelled following after trade union protests. It seems that the unions would agree to the separation of the company under the proposition of consolidation. The industry mentions a plan that KT, either independently or in collaboration with outside IT consulting organizations like CSC, will establish an affiliate in July or August. By that time, KT will complete the IT infra planning process innovation (PI) project, which is being pursued by the company. Regarding this, KT and KTF said, in a joint statement, ``All this is just a rumor and nothing has yet been decided.'' The industry, however, forecasts that KT will complete a plan to establish an IT business but the timing of its actual opening will be rearranged depending on the progress of the merger. KT and KTF plan to pursue projects related to the PI project, and the next-generation customer management system in consideration of the organization of consolidated database and the system compatibility. KTF is working on a next-generation project based on service-oriented architecture (SOA) with the goal of launching its operation in January next year. KT also is going to finish the design job in July. The appearance of a distribution subsidiary is imminent as well. KT initially pursued a plan to jointly use the distribution network of KTF M&S, a KTF affiliate, in the form of owning its shares. As the merger process has been progressed more rapidly than expected, however, KT is making a plan beyond simply purchasing shares. A distribution business to be launched after the merger will reportedly undertake some of the duties of the KT Plaza in addition to jobs related to the existing mobile communication agencies. A KT union leader stressed, ``There will essentially a distribution company after the consolidation. However, there remains a problem regarding the degree of job transfer and imposing new duties on existing workers.'' KT management has started to prepare employment terms such as the actual wage system, except for the establishment of affiliates. As there are significant differences in terms of wage between KT and KTF, meaning that KTF workers will likely suffer pay cuts. In connection with this matter, an official from KT admitted that the two companies are analyzing their wage system and working on their infrastructure, adding, that he thought it too early to start talking openly about the merger. JKS S amsung Electronics started the mass-production of 32-inch full HD LCD panels last month for the first time in the world and other major panel makers, including LG Display, Sharp and AUO, are all set to follow suit. Such a movement is aimed at maximizing the profitability of TV or panel makers in the market in which the 32inch displays have occupied the largest share of consumption. The PDP industry also is poised to actively join the 32-inch display market - one which has been winning great popularity among consumers. As a result, LCD and PDP makers are expected to once again engage in a new power struggle. Following Samsung's move to start to produce the LCD panels, LG Display says it is going to launch the products as early as this month, according to sources in the industry speaking in March. Samsung will start to supply panels for TV sets for the company's DM business and then plans to expand to major TV makers in other countries. LG Display has a plan to provide the first portion of its production to LG Electronics. Overseas companies also are taking up aggressive positions. Sharp, of Japan, is going to launch the mass-production of 32-inch panels before the end of the first half of the year, once it has finished developing them. IPS Alpha Technology, a joint venture between Japan's Matzushita, Toshiba and Hitachi, is going to develop 32-inch full HD panels and then start its production during the third quarter of the year. Taiwan's AUO will start production of their panels as early as Summer this year. LCD panel makers are joining the 32-inch full HD market one after another like this because demand for the so-called ``second TV'' is rapidly growing both in emerging markets, such as China, and in more advanced markets. LCD Television Production Starts in Earnest As the High-Definition versus LCD display war continues to rage, the big electronics players release their products - but with such high prices, how successful will they be? Their goal is to increase their profitability by actively exploring the 32inch premium market. The price of a PAVV Bordeaux 550, the latest model of 32-inch full HD TV, recently launched by Samsung, is about 1.5 million won, almost 25-percent more expensive than HD-class products of the same size. The LCD camp which is advanced in terms of quantitative competition has aggressively joined the 32-inch TV market, the PDP industry is expected to face an increased sense of crisis once again. Since LG Electronics launched the world's first 32-inch SD-class PDP module at the end of last year, the product has emerged as a successful hit. LG Electronics and Samsung SDI had the plan to introduce the HDclass module and actively join the 32inch TV market during the first half of the year. If the LCD camp starts a major attack with a full HD product with higher definition than the HDclass goods, the PDP industry will inevitably find itself under pressure. Bu Jae-ho, the Director of Display Search Korea, a Korean market research firm, said, ``As domestic and foreign panel companies will increase their productivity from the second half of this year, the 32-inch full HD LCD panels will have price competitiveness too.'' He also predicts that putting all their eggs in one basket may not be a wise move for many companies. Says Bu, ``Although the PDP industry is not a leading player, the two sides will have to wage an uphill battle as that they have placed a heavy bet on the success of the 32inch TV market.'' JKS KOREA IT TIMES April 2008 _ 73 News in Brief Mozilla Chief slates Apple's Safari Update "borders on malware distribution practices" Mozilla, the company who make the Firefox Internet browser, has hit out at Apple for using underhand tactics in getting users of the iTunes music store to make them download Safari, a rival browser made by the Apple group. A new update for the iTunes player prompts users to install Safari on their PCs, but the CEO of Mozilla, John Lilly, says that Apple is not playing fair. The Windows version of iTunes automatically searches for updates for the iTunes player, but the Safari browser is a totally different product, and would require a user to specifically request the update sotware not to have it automatically installed on their PC. But Lilly says the practice "bad" and says it "should stop". He implies that it is immoral to exploit users in this way. He said, on his personal blog, "This is software that users didn't ask for, and maybe didn't want. This is wrong, and borders on malware distribution practices." Aussie Web Surfer Makes Meteor Find An Australian geologist has reportedly found a huge meteorite crater - on the Internet. Arthur Hickman, who works for the Australian government, found the 260 metre-wide, 30 metre-deep blast site on Google Earth. The site, which is yet to confirmed by experts as a meteor crater, is estimated as being as up to 100,000 years old. It is located in Western Australia, and will be named after its finder, who said "I wasn't looking for it, I just saw a circular structure on Google Earth that struck me as odd." World American Town Bans Wireless Internet for "Health Reasons" The City Council of Sebastopol, a town in California, has decided to rescind an agreement with an Internet provider, Sonic.net, to provide free wireless Internet access for residents. The Council took their decision after 235 local residents signed a petition trying to get the local authorities to take reverse their decision to allow Wi-Fi in the town. The council said residents were worried about the possible effects of radiation caused by the wireless signals. One resident said, "Wi-Fi gives me headaches and makes me very sick." Google Boss Expresses Microsoft Doubt Amid growing rumours that Microsoft are on the verge of buying up Yahoo's Internet services, Google's Chief Executive Eric Schmidt has warned that the Internet as a whole may suffer should the takeover go through Schmidt said, "We would be concerned by any kind of acquisition of Yahoo by Microsoft. We are concerned that there are things Microsoft could do that would be bad for the Internet." Last year, the European Union fined Microsoft a record $1.4 billion for ignoring sanctions imposed on it for anti-competitive behaviour, caused by linking the Windows and IT Explorer applications. Meanwhile, Fortune Magazine, an American publication says that Microsoft is preparing to hit back at companies who are turning to free an open source by asking large corporate users to pay for what MS claims are 235 patent infringements made by the software used by the free operating system. TA 74 _ April 2008 KOREA IT TIMES K Korea World Korea Say Goodbye to "Yes" - And Hello to "YESS" Korean software company hopes to bag 20% of the market share with a new customized office strategy. B Baek Jong-jin, CEO of Haansoft aek Jong-jin, CEO of Haansoft, showed off his company's newest customized office service, "YESS," with office software and special consulting service added at the Grand Inter Continental Hotel in Samsung-dong in March. Baek said that Haansoft hope to get back the office market which was taken over by Microsoft through customized services for different types of businesses. He also added that a customized service can be done only with the services of domestic software companies. "YESS" overcomes the typical old office system problems by accumulating condensed technical know-how gathered over the past 19 years. It constitutes a System Integration (SI) service and special consulting service which is customized to each company's business environment that are based on "Haansoft Office 2007." In addition, it keeps the same office packages and license prices while it also contains a new, free consulting service. The basic SI expenses are included in the license price and the office solution and utilized Scenarios are complimentarily supplied for small sized companies. He pointed the limitations in the past, saying, "We supplied the customized office service for public organizations such as the Supreme Court, the Korean Post and so on because their practical usage of Hangul Word Processor (HWP) is fairly high. However, there are few such services for private ownership companies. YESS is to actively assault these private companies," he added. Baek emphasized that Haansoft can increase its 18% of the current market share to more than 20% by this year through this customized office strategic service. Therefore, it will help small and medium sized companies' businesses in their search for active economic growth. KEJ KOREA IT TIMES April 2008 _ 75 How to--- F ind a Good Job in IT 76 _ April 2008 KOREA IT TIMES Your heart is racing, your hands are sweaty. When you speak, your voice sounds high-pitched and alien to you. Only one situation can make a human being like this - the dreaded job interview. I T is one of Korea's biggest industries - and a job at a major Korean IT company is so lucrative that even a couple of years spent working in certain jobs at big firm can set you up for life. But as any Korean jobseeker will tell you, competition for the best jobs is cut-throat. Many believe that only graduates of the so-called "SKY" universities Korean "Ivy League"-equivalent Universities, Seoul National, Korea University or Yonsei, need apply for the best jobs. However, experts in the recruitment business say that there is a way in, even if you think your resume does not look as good as the next person's. IT Job seeker's Tip #1 If you think that you fit about 50% of the requirements in the job advert you are looking at, you might as well apply for the. More often than not, companies set their goals unrealistically high, and only realize this when they start to get resumes in. Kim Joo-pil, the manager of Recruitagency, a Korean job agency who specialize in IT recruitment, says "Everyone wants to get a great job at a good company, but it's not easy to get this chance. So the best thing to do if you think your resume is not impressive enough is to make a career plan - to build up to a bigger job step-by-step. Think carefully - is the job and the company that you are applying for going to be helpful for your ultimate goal. Is it a step up for you?" The consequences of neglecting a career plan, says Kim, could have serious negative repercussions on your future. "Looking for a job without a clear plan in your mind might mean you end up changing jobs frequently in the future, and that is quite harmful for your career goals." But many candidates worry about those all important qualifications more than anything else. They ask, "How on earth will a big company even look twice at my resume if I haven't got the name of a big university on it?" Satnam Brar is the Managing Director of Enterprise Resource Planning at Maxiumus, an International IT recruitment agency based in London. He believes that for IT companies, bits of paper are not the be all and end all. He says, "Directly relevant experience is the key. Formal qualifications are the icing on the cake, but the fact that you have actually done the job before is the cake itself." And a lot of experts are now saying that it is not just insider knowledge and techy skills that will win you a job. So-called "soft" or "people" skills are becoming more and more valuable in the IT world. Brar says, "The days of the IT geek locked to a keyboard and screen are dying fast. Employers are looking at inter-personal, communication and commercial skills as well as technical ability." Kim agrees. "IT projects more often than not require a lot of collaboration and teamwork. That means that just being technically proficient is not enough for most Human Recourses managers. You have to be able to show you are good at being a person, too. Communication is not less important than job ability," he says. IT Job seeker's Tip #2 Read back everything before you send it, and then ask someone else to check it spelling mistakes and inaccuracies might make potential employers bin your application on the spot. Also, try to avoid sending attachments if possible, people are very suspicious of potential viruses sent along with emails. Self-belief is also a vital commodity, say the experts. Says Ki, "IT is all about the unknown - new technology and new solutions, so you need to demonstrate that you are a confident person who is not afraid to try things they have never done before." And confidence might mean not just bravery with computers and team projects, but also in building relationships outside the constraints of the office. Brar says, "It's important to be able to network, both in person and online, to build relationships with past and potential clients." The last point to remember should KOREA IT TIMES April 2008 _ 77 IT Job seeker's Tip #3 Blow 'em away: How to really make an IT employer sit up and take notice of you Write a targeted covering letter that is clearly written only for the company you are applying for. It should immediately show that you are writing to apply to that company for that job, not writing generally to a whole host of companies. You probably only have a few seconds to draw attention to yourself from amongst hundreds of applicants. Learn a programming language be possibly the most important one don't mess up your chance to make a good impression. Recruiters are inundated with resumes and applications, so even the tiniest of mistakes in this process could mean that you never make it to the interview room. Says Kim, "You would be surprised how many candidates make mistakes with the name of a company, the date or the spelling of a particular name. These are all easy mistakes to make when you are applying for two or three different jobs at the same time. However, it creates an ugly first impression." And first impressions are everything in getting a good job. If you are stuck, there is no shame in asking a professional to help you out. Kim says, "If you ask a recruitment specialist, they can really help you out. They have seen thousands of resumes, both good and bad, and they are armed with a lot of information about the companies you would like to work for." Perhaps there will never be an easy solution, an easy way to get a good job in IT. But it is important to remember that the technology sector is possibly the fastest-growing industry in the world. If you have both technical skills and belief, there should be nothing to stop you beating those interview nerves and getting whatever job you put your mind to. TA 78 _ April 2008 KOREA IT TIMES Even if you are not planning a job in the software or Internet industry, having some knowledge of basic programming code could make you a potentially indispensable employee. Teach yourself Java, C++ or another language. You can use online tutorials, or buy yourself an inexpensive "how-to" book. Learn about a different Operating System The Korean government is actively promoting Linux, while Open Office and other alternatives to Windows are available. If you end up in an office with a Mac or Linux computers, you should be able to use these systems, too. Know how to work with HTML Every year, the amount of people who need to know how to create, update and alter web content increases. You might think you the Internet like the back of your hand, but your knowledge is too shallow until you know its inner workings. Read the news It is not enough to have a wide smile and some technical knowledge in most interviews - you need to look like you actually take an interest in IT, too. Knowing about trends and latest IT developments will really make you look like you know what you are talking about in an interview. In Korea, especially, there are a lot of high-quality magazines (like this one!), newspapers websites and blogs that will keep you abreast of the latest industry goingson. Research the company and its competitors Doing your homework at school might have bored you to tears, but you have to do your homework when you are looking for a job, too. Research the business you are applying for, read news stories that mention the company and check their site for news and press releases. Do the same with the competition, too, and in the interview, you will come across as an expert on their subject. Tricky interview questions and how to deal with them. Satnam Brar, Managing Director of ERP Recruitment at Maximus Recruitment, tells you how to make sure you don't get caught out by difficult questions in a job interview 1) Q: Tell me something about yourself A: This is a classic 'ice-breaker', often used to get an interview started and to get you talking. Map out in advance the areas you would like to cover, which should include your qualifications and academic history, career to date, achievements and a few personal details to give the picture of a rounded individual. Don't get carried away. This is an interview, not a chat show, so no matter how fascinating a person you are, five minutes should be enough. 2) Q: What one thing has given you the greatest sense of achievement? A: Here the interviewer is trying to establish what really motivates you. Your answer, which should be work-related and relatively recent, should stem from your understanding of the job specification and the corporate environment it exists in. If the role involves a high degree of responsibility for others, think of an achievement in the people management area. If you will be called upon to overhaul a department or alter its direction, pick an achievement which demonstrates change management skills. Show how your abilities and experience made the difference. 3) Q: What are your strengths and weaknesses? A: This is meant to test your ability to analyze yourself and others. Focus on three or four major strengths such as technical ability or communications skills and show how they have directly benefited past employers and could benefit the interviewer's organization. Don't be modest. If you don't tell the interviewer how wonderful you are, no-one else is going to do it for you. Weaknesses are a little more tricky. The obvious answer would be to deny you have any but that would leave most of us with a credibility problem. One solution is to pick on something minor that would have little or no impact on the job under discussion or to dress up a strength as a weakness, as in, "Sometimes I think I drive myself too hard to get the job done." Job interviewers are not priests or psy- chiatrists and do not want to hear about any dark nights of the soul you may be experiencing. 4) Q: Give me five adjectives that would describe you as a person A: Keep them positive and relate them back to the job description. 'Independent', for example, may be fine if you are going to be working alone out in the field but might create some doubts if you need to operate in a closely-knit team. 5) Q: What is the most difficult situation you have faced and how did you resolve it? A: Pick on something recent and easy to explain and make sure that you don't infer you were the source of the problem in the first place. Show how you analyzed the problem quickly and clearly, how you acted decisively and show a positive outcome. 6) Q: Why are you looking to change jobs? A: Keep it positive. You are on the move because you relish new challenges, wish to take on more responsibility or want to develop your skills, not because your present employer is a skinflint who doesn't recognize your true worth. 7) Q: Do you have any questions? A: Retain at least one or two questions for the end of the interview to demonstrate interest and a lively mind. Make sure that you maintain a positive image. Tough questioning about future plans and the company's status are quite legitimate, but too much interest in the length of the lunch break or the sick-pay scheme may set alarm bells ringing. Finally... Remember that, no matter how they are phrased, all the questions posed to you in an interview boil down to one. That is, "How would you fit into this company and do the job better than any of the other people we are talking to?" KOREA IT TIMES April 2008 _ 79 Briefing Posco Drawing u-Health Care Attention L arge domestic construction companies are preparing to provide u-health care services to apartmentdwellers in cooperation with hospitals. As a marketing strategy to sell luxurious apartments more effectively, large enterprises are trying to introduce uhealth care with a positive attitude. In particular, Posco E & C, in cooperation with Uracle and Seoul National University Hospital, has prepared an action plan to provide the 1,596 apartment units of "The # First World" with u-health service on a full-scale basis from January next year. An official from Posco said, "Following The # First World located in new Songdo City, which is set to become a typical international business district, we are going to provide u-health care services to the 4,000 to 5,000 apartment dwellers among a total of 20,000 apartment units to be built in the New Songdo City development near Incheon Airport." For u-health care services, each apartment is equipped with a lot of high-tech medical equipment and devices to check up the on residents' weight, blood pressure, blood sugar, and so forth. The results of this checkup will be analyzed by the university's medical examination center. In case of emergency, intensive medical care will follow automatically. Prior to the Songdo development, Posco is to deliver u-health care services to the 213 Star Park residents in Jamsil, Seoul in September. SubscribeNow! Open new vistas to the IT World The most reliable source of IT information for your business success Korea IT Times giving you spot-on information to survive in today’s globally-competitive world Korea IT Times: http://www.ittimes.co.kr Phone: 82-2-3459-0664 E-mail: [email protected] 80 _ April 2008 KOREA IT TIMES