KOREA INTERNET WHITE PAPER

Transcription

KOREA INTERNET
WHITE PAPER
011010010010110101011010110100100101101010110101101001001
KOREA INTERNET WHITE PAPER
National Computerization Agency
Ministry of Information and Communication
KOREA INTERNET
WHITE PAPER
Global Leader, e-Korea
In this 21st century, individuals and corporations cannot have a bright future if
they don't know how to use computers and the Internet appropriately. Therefore, we
need to have a comprehensive understanding for the information-based society.
More importantly, we need to gain insight through an analysis of the development
stages and current trends of Internet technology so that we can predict what the
future has in store for us.
Recently, the Republic of Korea is one of the fastest growing broadband internet
markets in the world. Korea has completed the integration of the mobile and wired communications
infrastructures. Furthermore, the government and private sector have taken steps to build a foundation for the
next-generation Internet in order to overcome the technical limitations posed by the current Internet. As a
result, Korea is now widely recognized as having the most advanced Internet infrastructure in the world.
This 2002 Korea Internet White Paper is put together to provide you with such an insight. It offers a
description of government policies, analysis of current trends and future direction of the Internet in Korea as
well as up-to-date statistics. Topics ranging from the Internet usage patterns, Internet policies, Internet
business statistics, Internet technology to the state of the Internet in foreign countries are addressed in this
White Paper. For individuals, the 2002 Korea Internet White Paper will be an indispensable source of
information regarding the Internet and, for corporations, it will be also an important market research material
that will help formulate marketing plans. The academia can be able to analyze and predict the socioeconomic effects of the Internet based upon the statistics in this White Paper.
I would like to thank everyone who has participated in the publication of this 2002 Korea Internet White
Paper and sincerely hope that it will be widely used as a significant reference material by those who want to
know the "Global Leader, e-Korea" in depth.
May 2002
Yang, Seung Taik
Minister,
Ministry of Information and Communication
Preface
After a rapid increase of Internet in 2000, we have seen a sustained growth in
Internet users as well as remarkable changes in service quality since last year. The
changes include universality of high-speed broadband Internet access, promotion of
mobile Internet service, and Next-generation Internet technology development. In
addition, Internet business went through a painful restructuring accompanied by
slowdown of global economy and burst of IT bubble in recent years.
Reflecting this changing landscape in Internet, The 2002 Korea Internet White Paper focuses on Internet
use in Korea, Internet Infrastructure, government policies, and Internet businesses. The White Paper also
describes the major Internet issues and trends in 2001 along with relevant statistical data, and gives detailed
information of Internet businesses such as Internet marketing, Internet solutions, and mobile Internet
business.
Since the first publication in 1999, Korea Internet White Paper has tried to provide you with a guideline for
exploring the Korea's Internet present and future. We hope '2002 Korea Internet White Paper' will offer the
information that help you understand the development of Korean Internet market.
I appreciate the Internet experts and editors involved for their efforts to publish the 2002 Korea Internet
White Paper. I also give special thanks to the editorial committee members who gave invaluable comments
and advice.
May 2002
Suh, Sam Young
President,
Milestones in Korea’s Internet Evolution
The Number of Internet Users
(Unit: 1,000 person)
First Stage
Introduction Stage
20,000
15,000
10,000
KREN 2) Ser
HANA Network 1) launched in 1989
Education Network connected to BITNET in 1988
X.400 E-Mail service started in 1985
5,000
CSNET connection in 1984
USENET connection in 1983
1,000
SDN launched in 1982
1980
1985
1990
Second Stage
Third Stage
Developing Stage
Expansion Stage
2 million internet - enabled - mobile phone are
sold in 2001
Number of Broadband Internet subscribers reaches
7.8 million in 2001
IPv6 addresses are allocated and
service begins in 2001
Over 6 million high-speed Internet subscribers in June, 2001
KII established in 2000
Internet population over 10 million in 1999
Internet service over ATM launched in 1998
Internet World EXPO held in 1996
Korea Internet eXchange (KIX) started in 1995
KII 3) project launched in 1994
ISDN Commercial Service started in 1993
rvice started in 1991
1) HANA: First Korea Internet Project
2) KREN: Korean Education Network
3) KII: Korea Information Infrastructure
1995
2000
The
T h e In ternet
ter net aatt a Gl
G laance
n ce
Number of Internet Users
Percentage of Users (%)
Mobile Internet
(Unit : one thousands of people)
Number of Internet Users (ten thousands of people)
30,000
2,438
2,412
25,000
2,223
2,903
23,199
1,904
20,000
51.6
16,971
15,000
48.6
44.7
38.5
943
56.6
56.0
1,640
1,393
28,785
10,000
33.0
6,228
5,000
22.4
0
1999.10
2000.3
2000.8
2000.12
2001.3
2001.6
2001.9
Mobile
Mobile InternetPhone
ready Appliance
Subscribesr
Users
2001.12
(Source: Korea Network Information Center, December 2001)
ISMS
WAP/ME
(Source: Ministry of Information and Communication, October 2001)
Number of Internet Users by Region
Hacking Cases by Year
700
(Unit : ten thousands of people)
(Unit: cases)
6,000
598
5,333
527
5,000
4,000
350
3,000
181
114
128
124
139
77
69
72
59
1,943
2,000
94
79
66
83
28
0
1,000
0
2000
Number of .kr Domains by Month
Number of .kr Domain
516.183
Male/Female Ratio of Internet Users
2.16%
Growth Rate
2001
(Source: Korea Information Security Agency, November 2001)
1.17%
511.319
489.847
-0.42%
476.844
459.474
454.799
452.894
-1.02%
-0.24%
447.108
446.043
455.693
452.151
457,450
-0.78%
-1.28%
Male : 44.4%
Female : 55.6%
-2.65%
-4.20%
2001.1
2001.2
2001.3
2001.4
-3.64%
2001.5
2001.6
2001.7
2001.8
2001.9
2001.10
2001.11
2001.12
Internet Usage by Educational Level
Internet Banking Service
(Unit: %)
99.8
100
99
(Unit: Percent of
Internet Banking
Subscribers)
99.3
88.4
81
Check Balance in
Savings Account
50.9%
Wire Transfers
42.3%
60
4.3
0
41.2
Finished
Finished College diploma
Middle School High School
or higher
(Adults)
Elementary
Students
Middle School
Students
High School
Students
College
Students
(Students)
Others 0.4%
International Wire 1.8%
Bank Account
Services 2.7%
Loan services 1.9%
(Source: Korea Network Information Center, September 2001)
Amount of Spam Mail Sent by Year
2000
Types of Internet Connections
(Unit : %)
2001
(Unit : Internet Users)
80
63.1
49.9
50
28.9
27.3
22.9
20.720.2
11.8
13.9
9.6
5.6
8.8
4.8
8.5
5.5
0
2.5
10 or less
20 or less
30 or less
(Base: Spam mail sent within 1 week)
40 or less
50 or less
Leased
Line
More than 50
3.5
2.7
Dial-up
Modem
ISDN
(Source: Korea Information Security Agency, December 2001)
xDSL
Cable
(Source : Korea Network Information Center, December 2001)
Broadband Internet service by Carrier Provider
Total Size of e-Commerce Market
(Unit: People)
(Unit : one billion wons)
8 million
2001
7,805,515
5 million
2nd Quarter 3rd Quarter
4,387,637
Total Size of e-Commerce Transactions
Business to Business (B2B)
Business to Government (B2G)
Business to Consumer (B2C)
Others
4 million
3 million
2,530,008
2 million
1 million
12,020
ADSL
Cable
LAN
Satellite
Increased
Number Fluctuation
Compared to
Rate
Previous
Ratio
Quarter
100.0
5,221
19.6
26,645
31,866
24,242
29.658
93.1
5,416
22.3
1,705
1,447
4.5
-258
-15.1
588
656
2.1
68
11.6
110
105
0.3
-5
-4.5
1. The 29.658 trillion won figure for B2B transactions is the combined figure of 29.557 trillion won reported from a survey of eCommerce transactions between businesses and 101 billion won from a survey of cyber shopping malls.
2. The B2C figure of 656 billion won and B2G figure of 1.447 trillion won was calculated based upon a cyber shopping
mall survey and e-Commerce survey among businesses and government.
3. While B2G transactions greatly increased by 89.4% in the 2nd quarter, in the 3rd quarter, the growth of B2G transactions
contracted.
875,850
0
Don’
t
Know/Other
Type
Total
(Source: Ministry of Information and Communication, December 2001)
Number of Digital Signature Certificates issued and
(Unit : one million won)
Users of Digital Signature
State of IX bandwidth
IX
Noncommercial
commercial
Managing
Organization
Connected ISPs
Total Access
Capacity
Total Amount of
Peak Traffic
KIX
15
11Gbps
4Gbps
KTIX
KT
54
53Gbps
45Gbps
DIX
DACOM
63
45Gbps
35Gbps
KINX
KINX
35
35Gbps
19Gbps
Korea Internet Certificate Authority
Number of Digital Signature Certificates issued
2000. 12
2001. 12
5,684
75,348
Number of Digital Signature Users
2000. 12
2001. 12
11,153
260,883
Korea Securities Computer Corp.
8,683
82,336
28,175
281,600
Korea Financial Telecommunications &
Clearing Institute
12,478
1,337,855
12,470
1,362,935
Total
-
5,996
-
11,992
26,845
1,501,535
51,798
1,917,410
(Source: Korea Information Security Agency, December 2001)
Revenue e-Commerce Websites
2000
4th Quarter
Total
online only
online/offline
(Unit : one million won)
Compared to Previous Quarter
2001
Ratio
3th Quarter
4th Quarter
Ratio
Ratio
Number Increased
Ratio
Compared to Same Quarter Last Year
Rate of Increase
Ratio
1,851
100.0
2,043
100.0
2,135
100.0
92
4.5
284
15.3
580
31.3
590
28.9
656
30.7
66
11.2
76
13.1
1,271
68.9
1,453
71.1
1,479
69.3
26
1.8
208
16.4
(Source: Korea National Statistical Office)
Recently Purchased Item at an Online Shopping Mall.
(*The survey is composed of individuals over 19 years old and have made a purchase within 6 months of the survey)
19.3
10.5
10.4
8.6
8.1
7.2
6.1
4.8
Books
Computer
Hardware
/Accessories
Househ
-old
Items
Cosmet
-ics
Home
CDs/Recorded
Leisure goods/
Appliances Music/Videos
Sporting
goods/Hobby
Children
Goods
4.6
Accessories
4.5
Clothes
4.1
2.6
2.2
TelecommuniGift
Audio
cation product Certificate/ Equipment
Tickets
1.9
1.4
Food
Furniture
1.2
0.7
Computer
Car
Software accessories
0.5
Flowers
(Source : Korea National Statistical Office, May 2001)
Th
ear in
T hee YYear
i n Rev
Reviiew
ew
The Growing Mobile Internet Market
The mobile Internet market is growing explosively among teenagers and young adults.
Mobile phones and PDAs are popular ways for people to connect to the Internet. The
mobile Internet has grown into a new trend where many people are downloading ring
tones, games, and cute characters to their mobile phones. Words like“Motizens (mobile
n e t i z e n )”and“Thumb Tribe”have appeared in the
Korean language to describe this growing mobile Internet
trend. Sending short messages (SMS) through a mobile
phone is very popular, among teens but now businesses
are using the SMS for marketing purposes and maintaining
client relationships. Several Internet companies now offer a total solution for mobile
and wired Internet connectivity. m-Commerce is now the new frontier for creating a
mobile platform for e-Commerce.
10 Million People use Internet Banking Services.
In 2001, over 10 million people have subscribed to Internet banking
services and carry out banking transactions such as depositing money
in savings accounts, taking out loans, and making wire transfers over
the Internet.
According to a report published by The Bank of Korea titled,
“Internet Banking Usage in Korea,”the number of people who
subscribe to Internet banking services is 11.3 million. It is the first
time that the number of subscribers passed the 10 million mark. In comparison to last year’
s statistic (December
2000), this is an increase of 280%. 24.2% of the Korean population subscribe to Internet banking services. Following
Sweden and Norway where 29.4% and 28% of the respective population subscribe to Internet banking services, Korea
has the third highest Internet banking usage in the world. Internet banking services because the banks are offering
incentives such as discounted fees for Internet banking subseribers. Other incentives such as better deposit rates and
lower loan rates are offered as well.
Fee-based Digital Contents
The Internet industry in Korea has been plagued with unsuccessful
attempts at building a feasible profit model. But after digital contents have
been offered to consumers for a fee, some Internet companies are now
making profits. Due to the high-speed Internet infrastructure and popularity
of PDAs and mobile phones, companies that have been charging fees for
their digital contents over the Internet have profited from this trend. More
consumers are accepting the idea of paying small fees over their mobile
phones for purchases they have made on the Internet. The mobile phone is
now the most widely used method of payment for Internet purchases and is a feasible billing solution.
Interactive entertainment companies, movie companies, and other entertainment-related companies have led the
industry in charging consumers for their media content. Following their lead, online job search companies and on-line
education service firms are also rolling out fee-based services over the Internet. Near the end of 2001, a few Internet
companies have started to post profits from charging consumers for content instead of freely distributing it.
Due to the popularity of cyber characters such as Mashimoro, and Zolaman, Internet community websites have
offered Avatars to members that can be download for a small fee. Gradually, a profit model is emerging on the
Internet.
Next-generation Internet Service and Enhancing the Network
The Next-generation Internet is gaining interest due to the limitations of
the current Internet based on the IPv4 protocol. In February 2001, the
Ministry of Information and Communication announced the plan called the
“IPv6 Internet (A new IP address system) for building a Next-generation
Internet Infrastructure.”In July 2001, the International IPv6 Summit was
held in Seoul.
Companies, academic institutions, and research labs are working hard to
develop IPv6 technology and commercializing it. The emergence of new technologies such as P2P and VoIP based on
the both IPv4 and IPv6 have become important factors in testing the next generation Internet infrastructure and is led
by KOREN and APII.
World’
s Highest Rate of Broadband Internet Usage
Among all members of the OECD, Korea has the highest rate of broadband subscribers as reported in an OECD
report. High-speed Internet connections plays a critical role for building a nation’s information infrastructure and is a
requirement for allowing e-Commerce, media contents, on-line gaming, and other Internet services to grow. Many
nations have introduced policies to foster the growth of broadband services. In Korea companies actively provided
broadband services to consumers in a fair competitive environment and is the reason for broadband market became a
success. More than 7.8 million houses by the end of 2001 have subscribed to high-speed broadband services and cable
companies and DSL service companies are locked in competition to sign-up more subscribers. This intense
competition is the main reason that more people have subscribed to broadband services.
Cyber Universities
Cyber Universities have emerged through the ability to allow distance
learning over the Internet. This is a major event in Korea’s educational
history. In March 2001, Korea Digital University and Seoul Digital
University along with 9 other cyber universities have officially gone on-line.
e-Learning is becoming popular in many sectors of Korea.
There are cyber training institutes for corporate training and
cyber education for teachers. The on-line studybook market
for nursery school kids and elementary school students that is
a part of the Internet education market is growing fast er.
Dot-com Merges and Acquisitions
Dot-com companies that have been fighting for survival have turned to
merging and acquiring each other in 2001. Companies have been trying to
find synergies in merging their marketing departments, capital, sales force,
and technology. Big and small M & A deals have been struck and has seen an
increase of 38% in the 1st quarter of 2001 compared to the previous quarter.
In this process, many professional CEOs were ousted from their positions
and replaced by professional marketers who have international experience. They have become the new generation of
CEOs. More M&A deals to come will change the face of the Internet industry.
Growing Concern over Spam Mail and Computer Viruses
As e-mail has become a general way of communication, many business are using
e-mail to market their products or services and have created a spam mail problem.
Another problem are viruses that are sent to people’s in-boxes through mail servers.
People around the world face these problems daily. In Korea, there have been talks
of taking legal action against individuals or companies that send spam mail
systematically. The Ministry of Information and Communication has ordered all
spam mail in Korea to have the words,“Advertisement”added in the front of the
subject line in each spam mail.
Malicious computer viruses that spread over the Internet has increased. 22,000
web servers in Korea were attacked by the Nimda virus making Korea the fourth
highest computer virus-inflicted nation. Due to these incidents, many companies
and individuals are very suspicious of e-mails that are sent by unknown senders.
On the other hand, anti-virus software companies are rising in importance and
their stocks have risen on the KOSDAQ exchange where“Security”stocks are
popular.
The Popularity of Instant Messaging
In Korea, instant messaging started to take off in the latter half of last year. MSN
Messenger, Daum Messenger, and BuddyBuddy have become very popular instant
messaging programs. This year, the number of people who send instant messages
has extremely increased. Instant messaging is now becoming a way of
communication within companies and has changed the corporate culture. Instant
messaging has taken two features of the Internet, real-time and simultaneous
communication, and packed them into a chatting program. Instant messaging is not
only a simple means of communicating with friends but also an important business tool for communication.
New Domain Service Introduced
The signature“.com”at the end of websites was the shining symbol of
the Internet business but now it has fallen in popularity. Beginning from this
year, new domains that end with“.biz”,“.info”, and“.dj”are being offered
to companies and individuals. People who want to show flair and
uniqueness are keenly interested in these new domains. However, since the
Internet boom went bust along with the slow down of economy, new
domains are not as popular as expected.
C o n t e n t s
Chapter 1
Internet Policy
1. Direction of Internet Policy
14
2. Next Generation Internet
15
3. Internet Address
20
4. Internet Business Promotion Policy
22
5. Prventing Anti-Effects and Digital Divide
25
Chapter 2
Internet Usage
1. Internet Resources
28
2. Internet Usage
30
3. Internet Usage by Industry Sector
35
Chapter 3
Internet Business
1. Digital Contents
40
2. e-Commerce
44
3. Providing a Network Infrastructure
47
4. Mobile Internet Business
50
Chapter 4
Internet Infrastructure
1. Internet eXchange(IX)
54
2. Internet Backbone Network
54
3. Access Network
59
1. List of Internet-related Organizations
65
2. List of ISPs
65
3. List of Government Agencies and Other Agencies
67
Appendix
1. Direction of Internet Policy
1.1 Expansion of Foundation for
Next-generation High-speed
Mobile and wired Internet
they are moving. In order to make the mGovernment project a success, feasible public
services over a mobile network will be tested after
the selection of available services among the
In 2002, the number of households with high-
nationwide civic service based on the Internet
speed Internet service will increase to 10 million
which includes information services and
and next-generation Internet technology such as
application for civil affairs service. After 2003,
NGIX and 6KANET will be developed further to
social welfare, a stable employment rate, medical
develop a new information infrastructure for the
insurance, the quality of the environment, and
future. Internet-enabled mobile phones, PDAs, and
other relevant issues regarding the quality of life
mobile devices will be widely used and the IMT
for citizens will be the center of the digital
2000 service will begin near the end of 2002 so
government’s focus.
that the Internet can be accessed at any time. For
the promotion of mobile LAN services, measures
▶
Digital Company
will be taken to efficiently use radio bandwidth
The government is searching for ways to
and integration technology will be developed for
support efficient management of firms and
allowing connectivity with mobile communication
enhance their competitiveness. The government
networks. Standardization issues and relevant
will promote joint-research on core e-Business
technology to Bluetooth, which allows the
technologies between national research labs and
exchange of information without cables within
corporations. Along with this, the government will
10M, will be continuously pursued.
develop a work process model according to the
type of industry and a standard for general e-
1.2 Improve the Level of Internet
Applications
Business. Furthermore, a network project for small
business will be pursued to lay the foundation for
e-Business operations and applications and
Digital Government
making it available to the 2.9 million small
In the government sector, the five large
businesses and self-employed people who have
government databases including real estate, taxes,
lagged behind in embracing the Internet
citizen services and other databases will be linked
revolution. Together with these projects, the
together by a general adminstration information
government will also systematically train IT
system at the civic, county, and district level in
consultants who are necessary for providing
2002. This project will achieve a digital public
information technology to small businesses. A
service across the entire government. In addition,
‘Support Team for Promoting e-Biz’will be
an m-Government will be introduced to allow
organized and give support to domestic Internet
citizens to process their civil affairs matters while
companies that are entering foreign markets.
▶
14
2002 Korea Internet White Paper
Meanwhile, the government is actively leading an
1.3 A Healthy Internet Environment
international APEC B2B integration project
together with Singapore, Australia, Japan and
The critical information infrastructure is
other countries to promote e-Commerce between
protected from rising cyber terrorism and
nations.
electronic intrusion, a self-regulated information
protection system for enhancing the private
▶
Digital Citizens
s e c t o r’s information protection capabilities is
In 2000, internet courses was given to 4.1
being establish.
million people including farmers, fisherman, and
As e-Commerce over the Internet is becoming
the handicapped. As planned, the internet courses
more active, the protection of personal information
reached 10 million people. In the future,
is increasingly important. However, since most
information application training covering topics
Internet user and website operator do not grasp the
such as Internet applications, e-life, word-
importance of these issues, many individuals have
processing, and ethics for the information age will
become victims of personal information theft. The
be given to citizens. Furthermore, especially for
government will take efforts to make people more
foreigners, a program that can process and verify
aware of the importance of protecting personal
the ID numbers of foreign residents will be
information nationally and foster the Internet
completed soon so that the 270,000 foreigners
companies’ability to enhance their information
residing in Korea and the 3 million overseas
security through self-regulation.
Koreans can also take part in Internet transactions
that take place on Korean websites.
2. Next-generation Internet Policy
2.1 Upgrading the High-speed
Info-communication Infrastructure
622Mbps. International lines include either
submarine optical cables or Internet via satellite
and the U.S.-Korea link has been upgraded to
■ Achievements
bandwidth of 290Mbps. This construction of a
nationwide backbone network and the upgrade of
In 1995, The Korea Information Infrastructure
Korea’s Internet network has resulted in 41,758
(KII) project was pursued and by 2000, high-
cables that are connected to 34,363 public
capacity and high-speed optical transmission
agencies (local governments, educational and
networks in 144 regions around Korea were built.
research institutions, libraries) since September
The Internet backbone network located in major
2001. High-speed Internet service and multimedia
cities have been upgraded to bandwidth of
services are provided at a low cost.
Chapter 1 Internet Policy
15
The government has provided a special school
used for international joint-research projects with
Internet discount for over 10,000 elementary,
Japan, U.S. , Singapore and Eu. Stage 1 and 2 of
middle and high schools. Through government
the KII project laid foundation for an information-
direction, Korea has now built the world’s best
based society.
broadband Infrastructure. In December 2001, 7.8
million people subscribed to high-speed Internet
▶
KII-T(KOREN)
services and 56.6% of the population use the
KII-T project will become the fiber optical-
Internet. This is the highest rate in the world. From
based infrastructure by 2005 and provide an
1995 until 2000, 51.2 billion won was invested
backbone network for testing high-speed info-
into testing and developing next-generation
communication equipment. It will also become the
network technologies, relevant equipments,
backbone for the domestic research network and
application
A test
support closer cooperation with foreign research
network(KOREAN : Korea Advanced Research
networks. Support for international joint-research
Network) was built between Seoul and Daejeon
projects and an overhaul of the work process
and GigaPoPs were installed in five regions where
system are major policy directions.
service
and
others.
universities, research labs, data supply firms, and
software firms conducted 579 application
▶
KII-G(Government)
technology problems covering education, medical,
In order to provide high-speed Internet services
living and office subjects. The network was even
to fishing villages, small cities, adminstration
interconnected to a foreign research network and
offices, and public agencies ATM switch will be
Table 1-01 KII-T Investment Plan
(Unit : 100 million won)
2001
Operate and built Network
2002
2003
2004
2005
Total
Network
51
61
93
31
32
268
Build environment for
International Joint-research
81
24
48
51
51
255
Application Business
Manage Network
45
61
61
55
55
277
Next-generation Internet
Application business
30
30
100
100
100
255
Support International
Joint-research projects
10
30
30
30
30
277
217(172)
206(145)
332(271)
267(212)
Total
268(231) 1,290(1013)
※ The amount inside ( ) is the projected government investment(government investment : 101 billion won, Private sector : 27.7 billion won) ※ 1$ ≑ 1,300 won
Table 1-02 KII-G Investment Plan
2001
Backbone Network
2002
2003
2005
Total
800
602
540
280
270
2,492
50
(100)
(150)
(150)
-
50(450)
Upgrade National Internet
363
273
267
253
232
1,288
Install Public Data Center
1
-
80
-
-
81
12
10
10
10
10
52
Support for ATM usage
Technical support fees
Management fees of Business
Total
19
20
20
20
20
99
1,245
905
917
563
532
4,162
※ The amount inside the ( ) is the amount the company invested ※ 1$ ≑ 1,300 won
16
2004
installed across the country. In addition to
policy of IP addresses, policies for building
expanding the ATM based network, WDM
networks, standardization issues, and R&D will
equipment will also be installed to upgrade
need to be resolved.
network bandwidth between large cities up to
■ Allocation of IPv6 Addresses
622Mps~40Gbps. The government will offer
622Mbps Internet service for each subscriber.
Currently, APNIC allocates IPv6 addresses
sTLA-level (with maximum 9.9×1027) to ISPs and
KII-P(Public)
national NICs. In the initial stages of allocating
The KII-P(Public) project has connected 197
IPv6 addresses, KRNIC and ISPs are trying to
towns across the nation (100%). In 875 countries
secure as many IPv6 addresses as possible by
▶
across the country (71%) had high-speed Network
and building upon the current ADSL Internet
Table 1-04 Korea’s sTLA-level IP addresses (Dec. 2001)
service more than 1.35 million people will
subscribe to high-speed Internet services by 2005.
Network Name
2.2 IPv6 Policy
From the end of Nov. 2001 until today, the total
worldwide Internet user population has reached
500 million people. In order to prepare the
Date of Address
Allocation
Addres
KT-KR
2001:0220::/35
1999. 10. 06
ETRI-KRNIC-KR
2001:0230::/35
1999. 11. 24
DACOM-KR
2001:0270::/35
2000. 09. 08
HITEL-KRNIC-KR
2001:0280::/35
2000. 09. 27
HANARO-KRNIC-KR
2001:0290::/35
2000. 10. 30
KORNET-KRNIC-KR
2001:02B0::/35
2001. 01. 02
2001. 01. 15
NGINET-KRNIC-KR
2001:02B8::/35
dwindling supply of IP addresses, IPv6, the next-
SKTELECOMNET-KRNIC-KR
2001:02D8::/35
2001. 04. 06
generation address system is being introduced.
KREONET2-KRNIC-KR
2001:0320::/35
2001. 08. 23
The full deployment of IPv6 will occur sometime
UNITEL-KRNIC-KR
2001:0330::/35
2001. 09. 20
THRUNET-KRNIC-KR
2001:0378::/35
2001. 12. 18
in 2010 and many issues concerning the allocation
Table 1-03 KII-P(Public) Investment Plan
2001
2002
2003
2004
Long-distance Backbone
Network
1,436
1,880
Local Access network
1,284
1,774
Optical backbone network
1,856
1,246
FTTO
3,366
2,160
1,867
FTTC
3,218
2,477
2,137
xDSL
6,945
1,744
2,502
HFC (CATV)
3,299
2,212
477
442
Mobile Network
3G Mobile Communication Network
2,052
2005
Total
1,816
1,906
9,090
1,699
1,640
1,689
8,086
2,518
2,388
2,293
10,301
1,578
1,342
10,313
1,400
1,097
10,329
2,431
2,343
15,965
2,101
1,656
1,253
10,521
443
398
319
2,069
15,269
17,446
12,990
16,247
15,769
77,721
Internet Network
1,598
2,332
1,980
2,193
2,999
11,102
Support Construction of Airwave
Network(government loans)
1,500
800
1,500
2,000
2,200
8,000
-
1
1
1
1
4
40,248
34,514
31,780
33,748
33,211
173,501
High-speed Network enabled Building
Certificate System
Total
※ The amount inside the ( ) is the amount the company invested ※ 1$ ≑ 1,300 won
17
pursuing a policy of securing IP addresses since
institutions and 28 Korean institutions are
2001. As a result of this policy, Korea obtained 6
interconnected through a tunneling or native
sTLA-level IP addresses in 2001 and currently
method.
Korea has 11 sTLA-level IP addresses. Korea has
the third highest number of IPv6 addresses in the
world.
▶
KOREN IPv6
The first native IPv6 network in Korea was the
experimental KOREN, which was built over an
■ Building IPv6 Network
existing ATM network in 1994. The first IPv6
network was established between Seoul and
6NGIX and 6KANet
Daejeon in 1999. The main objective of the
The NCA built the 6NGIX (IPv6 Next-
establishment of the KOREN IPv6 network is to
generation Internet eXchange), and the 6KANet
build a native IPv6 network and accelerate the
(IPv6 Korea Advanced Network). 6NGIX is the
introduction of IPv6 technology and networks. In
first next-generation exchange node of Korea and
Korea, KAIST, ETRI, Korea University, Korea
is Internet exchange node (IX) for switching IPv6
Telecom
traffic between major organization that have been
internationally, 6TAP, SingAREN, WIDE, APAN,
allocated sTLA-level IP addresses. The 6KANet is
and Tokyo XP are linked to it.
▶
are
linked
to
KOREN
and
a IPv6 subscriber network and allows public
institutions and research institutions to use the
2.3 Grid Computing Policy
IPv6 Internet. It is the first commercial IPv6
network for the government and the public sector,
Grid computing is a necessary computing
but since IPv6 is still a relatively new protocol in
architecture for achieving integration and sharing
Korea, IPv4 service is offered as well.
of advanced computer systems, processing huge
amounts of data, and computing complex
6Bone-KR
mathematical problems in private-sector research
In 1998, ETRI was allocated a 6Bone IP address
labs or for basic research. The core design of grid
(3ffe:2e00::/24 pTLA-level) and built a network
computing is the distribution of a task demanding
based upon it to complete the first launch of the
fast processing power among high-performance
IPv6 protocol in Korea. The 6Bone-KR is the base
computers linked to a network while sharing a
upon expanding the domestic 6Bone subscription
high-capacity database. Grid computing is a new
network and introducing IPv6 addresses in Korea.
info-communication service that will allow joint-
6Bone-KR is an experimental network that is
research between academic institutions and
operated by a group of users who are developing
research labs.
▶
18
applications for IPv6 and related technologies.
Korea’s grid computing project is under the
Many domestic research projects are carried out
direction of the Ministry of Information and
on the 6Bone-KR and each agencies’allocated IP
Communication and is progressing in cooperation
address (NLA, SLA) is categorized in levels.
with the advanced technology development sectors
Currently, 44 institutions have been allocated 48-
within the IT (Information Technology), BT (Bio
bit Prefixes. On the 6Bone-KR, 10 foreign
Technology), NT (Nano Technology), ET
(Environment Technology) and ST (Space
application projects have been completed and
Technology) industry. The project is focused on
include projects such as the“N e x t - g e n e r a t i o n
practical applications of grid computing and will
mobile and wired Internet solutions for
try to produce practical results. After studying and
Multimedia Applications”,“Personal Mobile-
analyzing the successful projects in foreign
enabled Intelligent Web Conferencing ”a n d
countries, the backbone network of KOREN,
“Development of Advanced Applications and
KREONET2, APII Testbed, TEIN(Trans Eurasia
VoIPv6 based on SIP”.
Information Network), and Commercial ISPs will
Besides the domestic research efforts in
be used to create a Grid Network. Together with
uncovering new application services, the Trans-
this network project, research & development of
Eurasia Network TIEN Project and the Asia
Grid middleware which is the core technology of
Pacific Information Infrastructure (APII) testbed is
Grid Computing, will be carried out. By 2005, 3-
being established. Korea will connect its networks
dimensional browsing technology will be
to these foreign research networks to actively
developed and commercialized. A Grid Forum
pursue international joint-projects.
Korea is organized and experts from Korea and
By taking part in these different testing
foreign countries will address standardization,
environments that are necessary for developing
research and development and exchange of
next-generation Internet technology, the domestic
information.
research level can be enhanced and later contribute
to improving national competitiveness.
2.4 Develop New Applications and
Services for the Next-Generation
Internet
2.5 Opening the Mobile Internet
Network Market
Domestically, to activate the Korea Advanced
The mobile Internet is attracting attention as a
Research Network, KOREN, and other next-
next-generation communication market due to the
generation Internet networks are actively
convergence of mobile and wired Internet and
supported and to develop and create core
IMT2000 technology. Currently, the Korea mobile
application services, the NCA together with the
carriers that possess a mobile Internet network
cooperation of corporations, academic institutions,
have locked out competing carriers from tapping
research labs and MIC have continued to actively
into their networks in order to maintain market
promote next-generation Internet application
share and gain more subscribers.
business since March 2000. Currently 12
In wired Internet access networks, one network
Table 4-2-3-02 Next-generation Internet Application Plan
Field
Major
Focus of
Research
Description
IPv6 Deployment
An application service that fosters actual deployment of IPv6 technology that can be used to
build a real testbed and connect to application devices
Advanced End-to-End
high-speed Applcation
P2P, 3D, Real-time Audio/Video Streaming, Tele-Collaboration, and State-of-the-Art
Multimedia Application services
State-of-the-Art Network
Application
An application service that will enhance mobile, satellite, mobile terminals, traffic
engineering, MPLS and other networking technology
19
is linked to many ISPs. In the mobile Internet
and registration guidelines for content providers.
market, mobile carriers limit the contents
The three mobile carriers, SK Telecom, LG
providers and ISP service options available to
Telecom, and Korea Telecom Freetel (KTF), have
subscribers in a monopolistic service. Due to this,
jointly agreed to openly list the registration
the mobile Internet market is not as robust as it
standards for companies wishing to become
could be. Without forming a partnership with
content providers as well as revealing their hidden
wired Internet services. mobile carriers must
menus on their respective web portals. The
invest more to build a proprietary mobile Internet
government will push the mobile carriers to share
network. This is an inefficient allocation of
their gateways and open their Inter Working
resources and does not follow the trend of
Function (IWF) when the domestic mobile Internet
convergence of mobile and wired Internet
standard platform is agreed upon by the latter half
services.
of 2002, contents provider will be able to produce
The MIC has stated in principle that mobile
carriers must open their proprietary mobile
content more conveniently and mobile devices will
have less compatibility problems.
Internet networks to other mobile carriers,
contents providers, and all MISP. In addition, the
MIC has guided the content providers and mobile
carriers to openly release the evaluation standards
3. Internet Address Policy
In order to efficiently use the allocated IPv4
the Domain Name System (DNS). It processes the
addresses any addresses that have been dormant
query value of the tier-based English domain
for long periods of time will be re-allocated. In
name. To upgrade the current DNS system, a
addition, to address the possibility of a shortage of
Internationalized Domain Name System (iDNS) is
IP addresses, a short-term solution involving the
under review. This system will process Korean
improvement and reorganization such as Dynamic
characters and other languages as well as the
Host Configuration Protocol (DHCP) will be
current English ASCII code for accessing
initiated. The government will notify Korean ISPs
information.
about the introduction of IPv6 addresses and
support mobile Internet service providers, satellite
services, and services for networked home
appliances.
▶
Keyword
The Keyword service is a new website address
system that allows users to access websites by just
entering the name of the company, individual, or
▶
20
Multi-lingual Domain Names
other keyword. It is a different system from the
The current domain name system is based on
current tier-based domain name system. The
Keyword service uses search engines like Lookup,
▶
CNRP and LDAP and categorizes the search
results in a directory.
ENUM(Telephone Number Mapping)
ENUM is a protocol that simply converts a
telephone number into a URL. Other applications
can be added to ENUM to provide a wider
Voice and Image Recognition Address
selection of services. For example, communication
System
services such as Internet telephony (VoIP),
The voice recognition address system uses
Internet faxing (FoIP), and e-mail can be sent over
protocol that employs high-capacity Distributed
a telephone by using the existing Internet
Speech Recognition (DSR) technology to convert
connection or telephone line. The receiver of the
voice signals (sound waves) into English code
message sent from the ENUM service can choose
(Internet Address System). While, the image
the type of communication service and then
recognition address system that uses digital
proceed to use it through his or her mobile phone
cameras with a charged coupled device (CCD) to
or telephone.
▶
recognize bar codes, colors, and shapes that are
converted into the Internet address system. In
▶
Mobile Internet Address System
Korea a web browser that includes voice and
Many different kinds of services involving the
image recognition technology has been developed.
Mobile Internet Address system are being
Since this technology has been introduced, a new
developed and commercialized such as the number
market has emerged to develop relevant services.
domain and keyword.
Table 1-07 Types of Mobile Internet Address System Service
Service
A service that converts numbers into a URL
※ Subscribers to Mobile Internet services can enter a set of numbers on their devices to access a website
Mobile Number
domain that is registered under the mobile number address system
ex) http://www.mic.go.kr -> 642
Mobile Keyword
A service that allows users to just enter one word (Korean or English) to access a website
21
4. Promotional Policies for Internet Businesses
4.1. Promoting e-Commerce
■ Combination of On-line and
Off-line Operation
■ Introduce Electronic Transactions
in the Public Sector
By 2002, high-speed Internet service will be
provided to any company that requests one in
By introducing electronic transactions in the
order to lay down a solid foundation for allowing
public sector as early as possible, the spillover
traditional companies to easily go on-line. In the
effect on the private sector will have a positive
first half of 2001, 250 of the 473 national and local
impact in developing the e-Commerce market. In
industrial complexes and agricultural complexes
2001, the Public Procurement Service (PPS) has
around the country have xDSL connections
made the transition to electronic procurement
installed (53% of all complexes). By the end of
procedures by 80%. The Defense Electronic
2001, xDSL connections will be installed in 98
Procurement System (CALS/EC) which will be
complexes resulting in a installation rate of 74%.
completed in 2002 and begin service in 2003 is
By 2002, xDSL will be installed in all of the
major proportion of national procurement.
industrial complexes that demand Internet
Public agencies are using B2B websites to make
services.
MRO purchases which will result in cost savings
The pilot projrct for bringing the information
and have a positive effect on the private sector’s
revolution to companies has begun nationwide.
e-Commerce industry. The payment of taxes and
ASP, a new Internet business model, will be
public fees and other notifications for payment
utilized to show an example of a successful case
will be transferred to a Electronic Bill Presentment
study of applying information technology. Low-
& Payment (EBPP : Electronic Bill Presentment &
cost ASP services will be provided to companies
Payment system).
to support their transition to Internet business tools
This system will improve tax services and
and ASP business will be promoted.
reestablish the importance of e-Commerce
throughout society .
Table 1-07 The Installation Rate of xDSL in Industrial and Agricultural Complexes (1st half of 2001)
Total Number
of Complexes
22
xDSL Installed
xDSL not installed
Number Installed in
2001
Total
Number Installed in
2002
Industrial Complex
188
114
74
32
Agricultural Complex
285
136
149
66
83
Total
473
250
223
98
125
42
■ Foster Global e-Business Environment
■ Upgrading the Infrastructure
The government will integrate and supply
In the 21st century digital economy, a nation
detailed information about e-Marketplace and
must have access to key next-generation e-
foreign e-Commerce sites to support companies
Business technologies to become a developed
efforts to export products through electronic
nation. Korea needs to develop core technologies
transactions. Through these government efforts,
that are compatible with international standards in
domestic Internet companies will be able to plan
the integrated mobile and wired Internet solution
the entry into foreign markets.
market through a joint-effort with the private
In order to ensure secure e-Commerce between
sector in these times of new mobile technology
nations, Korea will strengthen ties internationally
and integration of global operations. The Korean
with Japan and Singapore by participating in the
government will invest 273.3 billion won in
PKI Forum. By establishing an Asia PKI Forum,
research by 2003 to develop mobile Internet
Korea can position itself as a leader in the Asian
technology, information security, and B2B
information security market and gain a foothold in
commerce.
the e-Commerce market. In addition, the Korean
government is pushing ahead to sign an agreement
regarding the joint-approval of digital signature
4.2 Government Support for Internet
Venture Companies
certificates among APEC member nations such as
the United States, Japan, and Australia. The
■ Internet Venture Companies
government is examining plans that will integrate
the digital signature systems in each nation.
The size of the domestic Internet market is
An e-Commerce Study Group (ECSG) has been
approximately 40 trillion won(based on year 2000)
organized with participants from research
which is about 4.4% of total amount of business,
agencies, and the private and public sector to agree
or 30% of output of the IT industry, and was
upon an international regulation
approximately 56 trillion won in 2001. As the
International organizations such as the OECD,
average rate of sales increase from 1999 to 2001
WTO, APEC, and UNCITRAL are at the center of
was very high at 51.4% and the average rate of
debate concerning international law for e-
employment increase was approximately 26%,
Commerce and have invited participation from the
Internet venture can be seen as an industry that is
private sector, public sector, and research
continuously bringing up the Internet industry.
institutions
a system. These
Korea established an ideal Internet environment
organizations have set up an e-Commerce Study
through rapid increase in high-quality information
Grpoup (ECSG). In the ECSG, intellectual
& telecommunications infrastructure and Internet
copyrights protection, individual privacy issues,
users, as well as high venture establishment
on-line taxes, security certification, logistics, legal
enthusiasm. However, the reality is that the
regulations and other issues will be discussed and
management environment has been deteriorated as
the stance of international organizations regarding
a result of the long-term stagnation of the
e-Commerce will be analyzed while Korea ’s
KOSDAQ market and the phase of the overall
position on these matters will be formed.
market downturn. As a result, a fierce competition
to devise
23
for survival is in progress due to the entrance of
▶
Capital Supply Mechanism Decision
newly emerged companies and foreign companies
Usually, the flow of capital into Internet venture
considering Korea as an Internet testbed (refer to
companies can generally be divided into
Table 1)
investments attraction from angel investors/
venture capitalist, or capital raised an Initial Public
■ Government’s Internet Venture Support
Offering (IPO) on the KOSDAQ.
Policy
By holding a Investment Relation(IR) the
government is actively supporting matching
Internet Infrastructure (Physical, Legal,
Internet venture companies and Angel investors /
Systematic Infrastructure) Construction
Venture Capitalist, and assisting corporate
The government is pursuing a 3 phase project
management for CEO’s by implementing finance
targeted at high-speed Internet service environ-
training for operation process from inauguration to
ments in households, various e-business environ-
listing on KOSDAQ.
▶
ments of corporations, and realization of G2B,
At the same time, the government operated the
G4C in government and public institutions. In
KOSDAQ market centered around venture
addition, by introducing a new IP address
companies by strengthening KOSDAQ entry
system(IPv6) to solve the shortage of IP address
conditions (capital encroachment forbidden, less
resources, it is pushing the physical infrastructure
than 1.5 times the industry average) for regular
of Internet venture management to a higher level.
conglomerates (self capital more than 100 billion
Meanwhile, in order to support mergers and
won) in order to grow and develop the KOSDAQ
acquisitions between Internet businesses by
market as an essential capital supply market for
continuously improving laws and systems related
Internet venture companies.
to e-businesses, the government has prepared a tax
support measures such as a 50% exemption of
transfer income tax in the case of exchanging
stocks.
Table 1-08 Technological Development Plans
2001
Project name
Private
Sector
Govern
ment
2003
Private
Sector
Govern
ment
Total
Private
Sector
Govern
ment
Private
Sector
Mobile Internet Service
Platform
100
50
125
65
125
65
350
180
Information security and develop
ment of security technoology
313
134
516
231
433
189
1,262
554
Mobile Internet Application
30
30
30
30
30
30
90
90
ebXML/ebWML Framework
40
23
45
23
-
-
85
46
5
-
-
e-Commerce Sharing Platform
7
13
7
13
14
26
Supply chain Management Software
5
5
5
5
10
10
500
255
728
367
1,816
906
Current Simultaneous
Engineering Development
Total
※ 1$ ≑ 1,300 won
24
Govern
ment
2002
-
588
5
284
5. Preventing Anti-Effects and Digital Divide
5.1 Information Security
of 65,033 cases of damages as a result of computer
viruses between February, 2000, when the
■ Protection of Main Information and
aggregate was started, and December of 2001.
Telecommunication Networks
Accordingly, the MIC and KISA is spreading
Infrastructure
the situation to the public through the media and
forecast/alarm system in the early stages as well as
In order to protect main information and tele-
promptly providing response measures through
communication networks infrastructure which
cooperation between vaccine companies,
have major effects on the national economy and
domestic/inter-national Consortium of Computer
national security such as finance, telecom-
Emergency Response Teams and Forum of
munications, transportation, energy, and admini-
Incident
stration from electronic violations such as hacking
Teams(CONCERT, FIRST). From October of
and spread of computer viruses, the government
2001, the government has designated the 15th of
amended and announced the “ I n f o r m a t i o n
every month as“Hacking and Virus Prevention
Infrastructure Protection Acts”in January, 2001
D a y”to heighten the public awareness and to
and has been enforced as of July, 2001.
make hacking and virus prevention activities a part
In November, 2001, the government appointed
Response
and
Security
of everyday life.
9 information protection agencies to safely and
reliably support analysis and evaluation of
■ Activation of Digital Signatures
weaknesses in main information & telecommunication networks infrastructure as well as the
founding operations of protection measures.
In e-Commerce, it is difficult to verify the
identity of the other party and the legitimacy of the
electronic documents that are transmitted back and
■ Hacking/Virus Prevention and
forth. Also, in the case where the other party
Countermeasures
denies involvement after the transaction, it is
difficult to correspond. To solve these problems in
As of December, 2001, a total of 5,333 cases of
e-Commerce, the government established (Feb.
hacking have been reported at the Korea
1999) a digital signature certification system and
Information Security Agency (KISA) and a total
is currently
providing
digital signature
Table 1-09 Number of Digital Signature Certificate issued and Users of Digital Signatures
Number of Certificates issued
December 2000
Total
26,845
Number of Digital Signature users
December 22, 2001
1,501,535
December 2000
December 2001
51,798
1,917,410
25
certification service through 5 designated
region, income, and gender, but more needs to be
government designation authorities.
done for society across the population by age,
occupation, and educational level.
5.2 Information Use Protection
In order to advance its ongoing digital divide
solution efforts more comprehensively and
The government founded the Personal Data
systematically, the government has prepared legal
Protection Center in April, 2000 to form an
and systematic devices aimed at solving the
environment in which users could use information
information gap such as establishing(January,
and telecommunication services with assurance by
2001) the“Act on solving Digital Divide”and
making improvements in laws and systems for
founding (Sep. 2001) a comprehensive plan for
protection of personal information. Reporting,
digital divide solution that 14 agencies including
registration, and processing of personal
the MIC will co-promote for the next 5 years.
information violation cases were implemented and
Meanwhile, ongoing international cooperative
site monitoring was performed twice a year (once
projects for solving the information gap between
every 6 months) on a regular basis through the
nations such the invitation and training of
Personal Data Protection Center. The number of
information & telecommunication human
reported cases related to personal information
resources and dispatching IT volunteers have been
violation seems to be increasing at a fast rate as
strengthened, and the special project for solving
482 cases were reported in 2001 as compared to
digital divide in East Asia is also actively being
308 cases in the previous year.
promoted.
5.3 Policy for Narrowing
the Digital Divide
The government is expanding the information
super-highway to counties and town areas of
farming and fishing communities to enable the use
of high-speed Internet services without regard to
geographic circumstances, and is operating
Internet use facilities in post offices and town
office of farming and fishing communities and
mid-sized cities in order to expand the information
access possibility of regional residents.
In addition, from June, 2001 10 agencies
including the MIC co-founded the“ I n t e r n e t
Education for 10 Million Citizens (2000-2002)”
which is targeted at the information alienated class
including housewives and the disabled. As a result
of these government efforts to narrow the digital
divide much improvement has been achieved by
26
27
1. Internet Resources
1.1 Number of Domains
1.2 Number of Internet Host Providers
After a peak of 516,183 registered .kr domains
According to a research done by Netsizer, there
in January 2001, the number of .kr domains have
are 137 million worldwide Internet host providers
gradually decreased since then. In December 2001,
in 2001. The number of internet hosts have
the number of registered .kr domains fell to
increased by 1.4 times compared to 2000. The
475,450. In October 2001, the number of
number of internet host providers in Korea have
registered .kr domains increased slightly due to the
increased from 340,000 in 1998 to approximately
official introduction of the education domain in
500,000 in December 2001.
that month. After October 2001, the total number
of .kr domains have fluctuated by small margins.
Diagram 2-02 Number of Internet Hosts in Korea
Diagram 2-01 Number of .kr domains
600,000
517,354
Number of .kr domains
Groth Rate(%)
509.800
691.19
457,450
500,000
460,974
483.700
400,000
300,000
306.10
214.75
201.99
201.56
202,510
225.25
200,000
207,023
131,005
100,000
149.90
61
192
579
2,664
8,045
1993
1994
1995
1996
1997
26,166
-11.58
73,191
7,650 13,856
36,644
0
1998
1999
2000
Dec.
1993
2001
Dec.
1994
Dec.
1995
Dec.
1996
Dec.
1997
Dec.
1998
Dec.
1999
July.
2000
Dec.
2001
(Source : Netsizer(http://www.netsizer.com), December 2001)
Diagram 2-03 Number of AS Number Assignments
Number of Assigned AS Numbers
391
387
369
증가수(Number of)
359
341
335
325
318
313
379
377
328
18
7
5
7
10
6
8
8
3
4
2
2001.1
2001.2
2001.3
2001.4
2001.5
2001.6
2001.7
2001.8
2001.9
2001.10
2001.11
2001.12
28
1.3 Number of IP Addresses and
Autonomous System(AS)
1.4 Number of Internet Service
Providers (ISP)
IP addresses have been regularly assigned by
APNIC in accordance with the status of the IP
The number of ISPs increased from 13 in 1995
to 99 in December 2001.
address assignment in Korea. There are 22,985,
216 IPv4 addresses at the end of 2001. 11
companies including KT, DACOM, SK Telecom,
HANANET each have 1 IPv6 in 35 units.
In May 1999, there were 56 assigned AS
numbers. At the end of December 2001, the
number of AS numbers increased to 391.
Diagram 2-04 The Number of ISPs Registered as KRNIC Members
Number of ISPs
증가수(Number of)
83
88
86
88
92
91
89
94
94
99
97
96
3
2
2
1
0
2001.1
2001.2
2001.3
0
2001.4
2001.5
2
2
1
2001.6
2001.7
2
1
2001.8
0
2001.9
2001.10
2001.11
2001.12
Chapter 2 Internet Usage
29
2. Internet Usage
2.1 Internet users
2.2 Demographic Characteristics of
Internet Usage
24.4 million (56.6% of the Korean population)
Koreans who are older than 7 years old use the
■ By Gender
Internet more than once a month on average
(December 2001). This is a 12 percent increase
In December 2001, 63% of Korean males used
(5.3 million Koreans) from last year when only 19
the Internet and 50.2% of Korean females
million Koreans used the Internet more than once
regularly logged on to the Internet. The total
a month. However, between September and
number of male internet users is 13.54 million,
December in 2001, only 260,000 more Koreans
which is 2.7 million more users than Internet users
logged onto the Internet at least once a month
who are female. After analyzing the Internet usage
regularly. The statistics show that the adoption rate
by gender, the statistics show that Korean females
of the Internet is slowing down. The reason that
are adopting the Internet at a faster rate than
the Internet adoption rate is decreasing is mainly
Korean males. Thus, the male and female ratio of
due to the fact that nearly all of the student
Internet users will gradually become more even.
population (middle school, high school, and
college students) log onto the Internet regularly.
■ By Age
Beginning from 1999, the student population
rapidly adopted the Internet. Internet users in their
At the end of 2001, surveys showed that 93.3%
20s and 30s have also reached a high level of
(8.4 million) of Koreans aged between 7 and 19
Internet usage and currently their Internet adoption
use the Internet. In a comparison of all age groups,
rate has leveled off.
the 7~19-age group showed the highest Internet
Diagram 2-05 Number of Internet Users and
Internet Penetration Rate in Korea
Diagram 2-06 Internet Penetration Rate by Gender
(Unit : %)
100
Oct.1999
Percentage of Population who use the Internet
Number of Internet Users (10,000 people)
2,412
2,438
56.0
56.6
Dec.2000
Dec.2001
2,223
2,903
1,904
63.0
1,640
51.6
1,393
943
38.5
44.7
50.9
48.6
38.6
33.0
30.0
22.4
Oct.
1999
50.2
50
Mar.
2000
Aug.
2000
Dec.
2000
Mar.
2001
June.
2001
Aug.
2001
14.8
Dec.
2001
0
Male
Female
(Source : Korea Network Information Center)
30
usage. The age group with the next highest rate of
it the region with the highest usage rate. After
Internet usage were Koreans aged between 20 and
Gyeonggi, Ulsan was the next highest with 63.9%
29. 84.6% of them used the Internet regularly
of its population logging on to the Internet and
totaling 7.08 million users.
then Seoul came in third with 63.4%.
■ By Region
■ By Occupation
In December 2001, a survey of the rate of
A survey of Internet usage by occupation
Internet usage by region showed that 64.5% of the
showed that nearly all Korean students use the
population in Gyeonggi used the Internet making
Internet with 95% of all students responding that
Diagram 2-07 Number of Internet Users by Age
(Unit : 10,000 people)
Oct.1999
900
787
Mar.2000
822 843
737
Aug.2000
703 708
679
Dec.2000
656 667
604
631
Mar.2001
557
544
507
478
June.2001
476
450
Sep.2001
430
Dec.2001
388
360
315
312
227 263 256
259
210
164
81
119 124
153
66 80 84
53 60
26 30 40
57
0
Between 7~19yers of age
20s
30s
40s
Older than 50s
Diagram 2-08 Internet Penetration Rate by Region
(Unit:%)
80
Dec.2000
63.4
61.8
61.2
63.9
Dec.2001
64.5
56.6
51.9
50
52.0
56.1
52.4
50.0
51.0
46.7
46.2
43.5
50.8
48.8
45.2
42.8
38.5
51.8
48.6
40.6
37.8
37.5
46.1
43.0
38.2
44.4
38.7
36.5
31.4
20
31
they use the Internet regularly. 83.9% of highly
million won a month use the Internet. Families in
skilled professionals and business executives use
the less-than-1.5 million won income bracket
the Internet regularly followed by office workers
showed little growth in Internet usage compared to
with 83.3%.
the previous year. On the other hand, there was a
10% increase of Internet usage in families with an
■ By Income level
income over 1.5 million won a month.
70.4% of families with an income of more than
2.5 million won a month use the Internet regularly.
61% of families who earn between 1.5 million to
2.5 million won use the Internet on a regular basis.
Only 36.8% of families that earn less than 1.5
Diagram 2-09 Internet Penetration Rate by
Monthly Family Income
(Unit : %, Bass : Everyone over 7 years of age)
100
Oct.1999
Dec.2000
Dec.2001
70.4
61.0
49.8
56.0
50
35.2 36.8
29.6
24.5
16.4
0
Less than 1.5 million won 1.5 million won-2.5 million won
Over 2.5 million won
Diagram 2-10 Internet Penetration Rate by Occupation
(Unit : %)
76.1 78.3
74.2
71.6
84.7
81.5 83.3
81.5 83.9
89.9
93.1
95
Dec.2000
Mar.2001
78.7
June.2001
70.0
Sep.2001
Dec.2001
65.0
33.5
34.6
38 36.3
32.2 33
27.6
28.3
18.3
23.4
25.3
19.6
24.3
26.7
30.1 30.1
24.1
26.1 25.3
12.3
32
2.3 Pattern of Internet Usage
■ Initial Purpose of Internet Usage
■ Location
In a 2001 survey, people were polled on why
they used the Internet and many of the respondents
61% of all respondents said that they mainly
answered this question relatively in the same way
connect to the Internet at home (December 2001).
they did in the 2000 survey. However, there was a
Internet usage at home continues to be the most
1.5% increase in respondents who answered that
common response. There is a noticeable drop in
they use the Internet to provide their children with
Internet usage at PC Bangs(Internet Cafe)/Game
a better education compared to last year. This
rooms by 6.9%. This drop can be attributed to the
increase indicates that Korean parents value a
growing broadband connections at home and the
good education for their children.
general pattern of users preferring to surf the
Internet at home.
Diagram 2-12 Types of Internet Connections
(%, Internet User)
100
■ Acccess Type
Dec.2000
Dec.2001
In 2001, the most notable change in Internet
usage was the type of Internet connection that
Koreans used. The market share of broadband
49.9
50
connections such as“xDSL”services doubled in
39.8
size from the previous year. xDSL services took
27.3
the top spot as the most common type of Internet
25.5
17.6
11.8
8.0
connection. Last year, leased lines was the most
8.6
4.8
3.5
0 . 62 . 7
common way people connected to the Internet.
0
Leased
Line
Dial-up
Modem
ISDN
xDSL
CATV
Don’t
Know/Other
Diagram 2-11 Location of Internet Usage
Diagram 2-13 The Length of Internet Usage
(Unit : %, Internet Users)
(%, Internet Use)
60
100
Dec.2000
Dec.2000
Dec.2001
Dec.2001
61.0
50
31.3
48.8
29.2
27.8
30
20.3 21.3
18.6
20.5
14.8
19.5
16.316.3
12.6
6.9 6.7
8.5
0
2.6
0
Home
Office
School
PC Bang/Game
Room
Other
5.2 4.3
4.0
3.3
Less than 3 3-6 months 6-12 months 1-2 years
months
2-3 years
More than 3
years
33
■ The Length of Internet Usage
■ Main Purpose for Using the Internet
The number of“new”Internet users who have
42.3% of all respondents said that searching for
used the Internet less than 2 years has decreased
information or doing research was the main
by 9.6% in comparison to the previous year.
purpose for using the Internet. Since October
Internet users who have at least used the Internet
1999, less and less respondents have said
for more than 2 years increased to 9.7%.
researching and searching was the main purpose
for using the Internet. Meanwhile, more
■ The Frequency of Internet Usage
respondents have said that e-mail, listening to
music, watching a movie, Internet banking,
62.4 percent of Internet users replied that they
community activities, and other activities were the
use the Internet at least once a day. The frequency
main purpose for using the Internet.
that people log onto the Internet is increasing.
Diagram 2-14 Frequency of Internet Usage
(Unit: %, Internet Users)
100
Dec.2000
Dec.2001
62.4
56.4
50
38.6
32.7
0
Daily
2 to 4 times a
week
2.3 1.9
2.7 3.0
3 to 4 times a
week
1 to 2 times a
month
Diagram 2-15 Main Purpose for Using the Internet
(%, Internet User)
100
Oct.1999
Dec.2000
Dec.2001
68.2
55.9
50
42.3
21.4
23.8
19.0
14.5
12.1
7.3
13.2
8.9
2.6 1.7
1.1
8.0
0
Research
Games/Entertainment
e-mail
Chatting
Other
34
3. Internet Usage by Industry Sector
3.1 Companies
more than 1000 employees and 97.7% of firms
with 300 ～ 999 employees have Internet
connectivity. 88.5% of firms with 50 ～2 9 9
■ Current Status of Network Infrastructure
employees, 77.3% of companies with 10 ～4 9
In a survey conducted in July 2001, 44% of
employees, and 46.7% of small companies with
companies with 5 or more employees have a
5~9 employees have Internet access. The smaller
network or have plans to build one. 37.8% of these
the company, the less likely it will be to have
companies already operate a network while 1.6%
are in the process of building a network. 4.6% of
Diagram 2-17 Status of Network Infrastructure
the companies have plans to build a network.
Currently, 80.3% of all financial and insurance
companies have a network infrastructure and have
the more networks than any other industry sector.
Coming in second, the construction industry has
Do not apply
106,387(29.4%)
Built Network
136,925(37.8%)
the next highest rate of networks. The service
industry, petrochemical industry, heavy industry,
agriculture industry, distribution industry, and
No plans to build
network
96,391(26.6%)
light industry, have the next most networks
respectively.
Among the total of 362,326 companies with 5 or
Building network
5,818(1.6%)
more employees, 217,682 of them (60.1%) have
Plan to build
network16,805(4.6%)
access to the Internet. 99.4% of companies with
(Source : National Computerization Agency)
Diagram 2-16 Size of Companies with Internet Access
Firms
250,000
(%)
200,000
80
150,000
60
100,000
40
50,000
20
100
0
0
Total
Number of Firms
Internet Penetration Rate
5~9 employees
10~49 employees
50~299 employees 300~999 employees
More than 1,000 employees
217,682
98,887
100,748
16,278
1,458
311
60.1
46.7
77.3
88.5
97.7
99.4
35
Internet access. 87.5% of finance and insurance
■ Types of Internet Connections
companies posted the highest Internet capability
rate. Companies in the service industry had the
Among the 217,682 companies that have
next highest rate followed by construction
Internet access, 55% of them use an ADSL
companies, chemical companies, heavy industry
Internet connection. 12.8% of the companies use
companies, distribution companies, light industry
dial-up modems, 11.5% use 128Kbps～2 M b p s
firms, and agriculture companies, respectively.
leased lines, cable modems, and 4.5% use 56Kbps
The survey indicates that a finance or insurance
～64Kbps lease lines respectively. While ADSL
company with more than 1000 employees will
connections have dramatically increased in
have the highest rate of Internet usage while an
comparison to the previous year, ISDN
agriculture company with less than 10 employees
connections have decreased substantially. This
will have the least Internet usage rate.
trend will continue on for the next couple of years.
Diagram 2-18 Companies with Internet Access by Industry Sector
Firms
250,000
(%)
200,000
80
150,000
60
100,000
40
50,000
20
100
0
0
TToottaall
Number of Firms
Internet Penetration Rate
Agri농림
culture/
M수산업
aritime
Light
경공업
Industry
Heavy
중공업
Industry
Petrochemi Construction Distribution Fina금융
nce/Insur
석유화학
건설업
유통업
보험업
stry
Industry
Industry ance
Industry
기타
O
ther
서비스업
Services
217,682
1,159
16,637
23,314
11,602
16,905
62,296
22,599
63,169
60.1
43.6
46.1
58.7
61.5
73.6
50.3
87.5
68.5
Diagram 2-19 Types of Internet Connections
(%, Internet Users, Type of Internet Connection)
(%)
140,000
100
120,000
80
100,000
60
80,000
60,000
40
40,000
20
20,000
0
0
Dial-up
SDN
56.64k
Lease
128Kbps
More than
ADSL
Cable Mode
Other
Number of Firms
27,800
6,437
9,809
25,072
2,714
119,816
19,577
3,492
Market share(%)
12.8
3.0
4.5
11.5
1.2
55.0
9.0
1.6
36
3.2 Public Institutions
■ e-Commerce Usage by Company Size
Between January and July in 2001, 34,865
■ Types of Internet Connections
companies (9.6% of all firms in Korea) replied
that they have engaged in e-Commerce. 8.2% of
74% of public institutions access the Internet
all companies with 5～9 employees engaged in e-
through lease lines (TCP/IP). Following in order
Commerce and 11.3% of all companies with 10～
of the next most widely used Internet connection is
49 employees have purchased or sold a product
frame relay, dial-up modem, ATM, and X.25.
using e-Commerce. 12.7% of firms with 50～299
employees have made purchases through e-
■ Current Status of Information Services
Commerce sites and 19.7% of companies with 300
～999 employees have done e-Commerce deals
After surveying the information services
while 30 percent of all firms with more than 1000
provided to citizens of Korea on the Internet, there
employees have had business over e-Commerce.
are over 346 information services operated by the
Apparently, larger firms engage in e-Commerce
central administration institution as well as 90
more widely than smaller firms. Companies with
affiliated agencies. 22.3% of users surveyed
more than 300 employees represent the largest
during one month logged on to financial
majority of businesses engaging in e-commerce.
information services, and 22.1% checked in at
educational information services. Judicial
adminstration information services processed the
most civil affair inquiries (32.1%) and were
followed by educational information services
which process 27.3% of all inquiries from citizens.
Diagram 2-20 e-Commerce Usage by Company Size
Diagram 2-21 The Types of Internet Connections
Used in Public Institutions
(%)
Firms
40,000
50
Dial-up Modem 4%
ADSL 1%
X.25 2%
Other 4%
35,000
40
30,000
25,000
30
20,000
20
15,000
Frame Relay
12%
10,000
10
ATM 3%
5,000
0
0
Total
Number of Firms 34,865
Internat
Penetration Rate
9.6
More
5-9
10-49
50-299
300-999 than 1,000
employees employees employees employees employees
17,389
14,750
2,337
294
94
8.2
11.3
12.7
19.7
30.0
Leased Line
74%
37
■ The Percentage of Public Institutions with an
Computer lessons are required courses in
elementary school starting from first grade.
Intranet Infrastructure
Schools with more than 36 classrooms in total are
Analyzing the percentage of public institutions
required to build 2 computer labs. Schools with
with an Intranet infrastructure by government
less than 36 classrooms are required to only build
institution, 77% of adminstration institutions have
1 computer lab. In this case, schools can decide on
an Intranet infrastructure which is the highest
how large they will build their computer labs.
percentage among all institutions. 75% of judicial
431,981 PCs have been installed in over 10,000
institutions have an Intranet followed by 65% of
schools around Korea. At the end of 2000,
research institutions, and 55% of all educational
235,333 PCs have been installed in elementary
institutions. In a survey of the type of groupware
schools, 121,259 PCs in middle schools, and
that public institutions use, 46% of adminstration
75,389 PCs in high schools including special-
institutions use Nara21 groupware which is the
purpose high schools.
most widely used groupware product. The three
most
popular
groupware
products
are
HandyOffice, Lotus Notes, and Nara21.
Diagram 2-21 Percentage of Public Institutions
with an Intranet Infrastructure
3.3 Educational Institutions
100%
80%
In 2000, 10,064 elementary, middle, and high
schools were equipped with computer networks.
60%
Some schools use leased lines to connect their
40%
s c h o o l’s computer network to the high-speed
20%
network operated by the regional offices of
0
education or the metropolitan offices of education.
Other schools set up their own high-speed
networks.
Percentage
of Institutions
with an
Intranet
Judicia
Institution
75%
Adminstration Educational
Institution
Institution
77%
55%
Reserarch
Institution
Total
65%
64%
Diagram 2-22 Current Status of Online Information Services by Sector
Institutions
work unit
15
60
10
40
5
20
0
38
0
Adminstration
Finance
Foreign
Judicial
Industry
Number of
Institutions
11
5
4
6
8
4
5
6
12
Number of
Work units
33
11
54
48
29
6
33
10
37
Social Infra Agriculture Industry
Science Education
Social
Environment
Culture
5
12
2
10
37
13
24
11
Table 2-01 Current School Computer Network Infrastructure by Region and City
(Unit : Schools)
Current Status of Computer
Current Status of Computer Networks by type of school
Networks in Schools
Provincial
area or City
Number of Schools
Percentage of
Elementary Schools
Computer Networks
Middle Schools
High Schools
Seoul
1,191
100%
533
354
304
Busan
555
100%
266
157
132
Daegu
361
99.1%
178
105
78
Incheon
357
99.1%
176
94
87
Gwangju
243
105%
111
70
62
58
Daejeon
238
99.5%
111
69
Ulsan
165
101.8%
88
41
36
Gyeonggi
1,581
101.8%
880
381
320
Gangwon
640
102.5%
367
158
115
Chungbuk
423
97.9%
235
106
82
Chungnam
728
100.2%
432
185
111
Jeonbuk
728
101.9%
402
191
135
Jeonnam
864
99.9%
455
254
155
Gyeongbuk
913
99.3%
478
231
204
Gyeonnam
856
100%
451
238
167
175
102.9%
105
40
30
10,018
100.6%
5,268
2,674
2,076
Jeju
Total
Table 2-02 Installed School PCs by Regional and Metropolitan Office of Education
(Unit:PCs)
Elementary School
Region
486
586
sub-total
Middle School
486
586
High School
486
586
Seoul
578
34,324
34,902
1,291
17,594
sub-total
18,885
1,122
16,561
Busan
367
13,798
14,165
1,429
6,350
7,779
515
Daegu
651
9,923
10,574
1,397
4,565
5,962
462
Incheon
85
10,831
10,916
340
4,616
4,956
Gwangju
32
5,422
5,454
174
3,678
Daejeon
148
6,171
6,319
705
3,157
Total
sub-total
486
586
Subtotal
17,683
2,991
68,479
71,470
4,686
5,201
2,311
24,834
27,145
3,825
4,287
2,510
18,313
20,823
137
3,292
3,429
562
18,739
9,301
3,852
69
2,778
2,847
275
11,878
12,153
3,862
35
4,087
4,122
888
13,415
14,303
10,438
Ulsan
278
5,825
6,103
278
2,456
2,734
153
1,448
1,601
709
9,729
Gyeonggi
515
46,285
46,800
785
17,154
17,939
452
10,484
10,936
1,752
73,923
75,675
Gangwon
210
8,532
8,742
102
4,873
4,975
308
2,227
2,535
620
15,632
16,252
Chungbuk
514
9,244
9,758
973
4,626
5,599
193
1,916
2,109
1,680
15,786
7,466
Chungnam
626
13,178
13,804
574
6,303
6,877
183
2,656
2,839
1,383
22,137
23,520
Jeonbuk
568
13,064
13,632
281
6,149
6,430
79
2,823
2,902
928
22,036
22,964
Jeonnam
530
13,718
14,248
615
8,179
8,794
159
3,578
3,737
1,304
25,475
26,779
Gyeongbuk
Gyeongnam
Jeju
Total
1,271
18,344
19,615
369
10,649
11,018
226
5,565
5,791
1,866
34,558
36,424
674
16,023
16,697
550
9,359
9,909
748
3,786
4,534
1,972
29,168
31,140
67
3,537
3,604
118
1,570
1,688
18
818
836
203
5,925
6,128
7,114
228,219
235,333
9,981
111,278
121,259
4,859
70,530
75,389
21,954
410,027
431,981
39
1. Digital Contents
1.1 Portal / Community Sites
Getmusic while focusing on cartoons, webcasting
services, and Internet movies. Naver has also
In 2001, the growth of community based portal
succeeded in charged entertainment business by
sites as well as the existing portal sites was
unifying Hangame. In addition Daum has
prominent. Freechal, Sayclub, Skylove, and
implemented an‘Online Postage’form of charged
Damoim secured relatively stable profits through
service as of the latter half of 2001 for commercial
charged contents based on communities formed
group mails with more than 1,000 addresses.
with loyal users.
In 2001, large portal sites such as Daum
In the case of large portal sites, educational
Communications, Yahoo Korea, and Lycos Korea
contents and entertainment contents (cinema,
surfaced as profit makers in e-Commerce. In the
cartoons, horoscope, mobile phone rings, etc.)
case of Daum, the e-Commerce sales figure has
make up the majority of charged contents. Yahoo
surpassed that of advertisement, and is steadily
Korea is concentrating on webcasting services,
growing at 20～30% every month.
while Lycos Korea is strengthening its
entertainment business by acquiring the music site
Diagram 3-01 Number of Unique Visitors at Major Domestic Web Portals (November 2001)
(Unit : ten thousands of people)
daum.net
yahoo.co.kr
naver.com
dreamwiz.com
netian.com
lycos.co.kr
hanmir.com
chollian.net
hananet.net
empas.com
dreamx.net
msn.co.kr
freechal.com
netsgo.com
shinbiro.com
korea.com
iloveschool.co.kr
damoim.net
hitel.net
megapass.co.kr
unitel.co.kr
0
40
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
1.2 Internet Media
business. Internet newspaper publishers are
focusing not on just selling articles but creating
▶
Webcasting Services
profits by raising added value through
In 2001, efforts in developing diverse marketing
reprocessing contents.
strategies, excavating new contents, and providing
In 2001, some Internet news websites achieved
additional services utilizing webcasting made
desired success in charged services by providing
progress. Webcasting stations of major portal sites
educational, stock market, finance, employment
have turned full stride while showing active
contents as well as high quality analyzing
conjunction between e-commerce and webcasting
information. Inews24, a pure Internet-based
by introducing Internet shopping channels. In
newspaper delivering IT and Internet-related
addition, offline educational agencies helped
articles, implemented charged services in the latter
enhance webcasting by strengthening the online
half of 2001. Magazine publishers are promoting
education business.
subscription by granting access to only a portion
As
charged
content
services
became
of the articles online for Internet users.
widespread, strategical challenges such as charged
high-quality contents were prominent amongst
▶
mass media affiliated webcasting stations and
relay companies.
Internet Advertisement
Although the scale of the advertisement market
in 2002 is expected to reach 130 billion won, the
growth rate is slowing down as a result of firms
Internet News Websites
▶
reducing marketing expenditures due to the
As Internet news websites are becoming
continuing economic recession, and skeptical view
universal, newspaper publishers are charging
on online advertising. In 2001, new forms of
Internet users for news articles and news-related
online advertisements were experimented while
services and increasing profits by selling articles
escaping from the existing banner format. In many
to contents providers as part of their contents
cases, the size increased, and various techniques
Diagram 3-02 Webcasting Companies
(Unit : number of companies)
400
350
28.4%
350
300
250
200
150
152
12.3%
132
10.7%
128
10.3%
100
50
14
1.1%
17
1.3%
5
0.4%
35
2.8%
46
3.7%
68
5.5%
14
1.1%
53
4.3%
18
1.4%
45
3.7%
21
1.7%
56
4.5%
21
1.7%
21
1.7%
36
2.9%
0
(source : Internet webcasting agency, December 2001)
Chapter 3 Internet Business
41
Diagram 3-03 Number of Unique Visitors to Internet News websites
(Dec. 10, 2001 ~ Dec. 16, 2001)
(Unit : one thousands of people)
chosun.com
4,757
hankooki.com
4,067
stoo.com
2,528
joins.com
2,473
sportsseoul.com
2,155
donga.com
1,889
infomail.co.kr
1,670
mk.co.kr
1,534
hani.co.kr
1,182
stimesi.com
807
khan.co.kr
701
zdnet.co.kr
682
hankyung.com
590
yonhapnews.co.kr
588
enewscenter.co.kr
501
kdaily.com
266
ohmynews.com
237
kukminilbo.co.kr
222
inews24.com
195
0
(source : Korean Click / www.koreanclick.com)
Table 3-01 Paid Services at Internet news websites
(Unit : one thousands)
News websites
Types
Kdaily.com
Analyst Reports(education, stocks)
Donga.com
Analyst Reports(education)
Digital Chosun Daily
Database, Entertainment, Analyst Reports(education)
Media KHAN
Entertainment, Analyst Reports(stocks)
Internet Hankyoreh
Analyst Reports(jobs,education)
Joins.com
Database ,Analyst Report(jobs,education),other
hankooki.com
Entertainment, Analyst Reports (education,jobs), other
Mk.co.kr
News article (broadcasting), Analyst Reports(stocks, finance, education, jobs)
Hankyung.com
News article (broadcasting), Analyst Reports (stocks, finance, reports, education)
(source : Korea Press Association, 2001)
Table 3-02 Online Ad Revenue
(Unit : 100 millions of wons, %)
1999
Online service
Internet
Total
2000
2001
2002(estimate)
Ad revenue
442
265
200
150
Growth rate
55
-40
-25
-25
1,350
Ad revenue
370
710
1,000
Growth rate
270
90
40
35
Ad revenue
812
975
1,200
1,500
Growth rate
111
20
25
25
(source : Cheil Communications)
42
such as game banner, high moving, pop show
is over. A recent change worth noting is that many
banner, and mobile Internet advertisements were
Korean films are begin screened on the Internet
used.
before they are released on video format, and that
production and screening of made-for-Internet
1.3 Entertainment
films are actively progressing. Services are
provided in 3 types: independent Internet cinemas
Internet Music
owning copyrights to films, ISP companies in
The current trend in Internet music companies is
collaboration with Internet movie companies, and
changing towards record distribution business or
large portal sites providing charged movies
reducing scale of the business, as there are no
through entertainment content construction.
▶
newly established sites. Facing difficulty solving
profit margin and copyright problems, all sites
▶
Games
selling MP3 files have closed down and most of
The game market is marked by the steady
them are only providing streaming service.
growth of PC Bangs in addition to the growth rate
Leading Internet music sites are mainly comprised
of PC telecommunication and online games.
of webcasting and P2P sites.
Korean makers of online games are growing as
The P2P service site Soribada is the most
a large scale market with potential to advance
popular music site among Korean users, which
overseas. Korean online game companies NC Soft,
held over 4.5 million members and 400 thousand
ACTOZ Soft, JC Entertainment are advancing into
users log on daily as of May 2001. However, since
foreign markets such as the US, Japan, and
the
of
Taiwan. The online game market in 2001 recorded
Korea(RIAK) filed a copyright violation suit in
over a 50% growth from 2000 thanks to sales
January of 2001, its future is uncertain.
increase of Lineage and successful charged service
Recording
Industry
Association
of Hangame and Fortress 2 Plus. In the area of
Internet Movies
mobile games, few companies recorded monthly
Although Internet movie companies are
sales over 100 million won as a result of charging
producing relatively large numbers, it has a weak
subscribers for downloading games and
profit structure in which only a few companies are
introducing innovative mobile game platforms in
making net profits. Most sites screen dated movies
2001, unleashing the market’s potential.
▶
by purchasing screening rights from production
companies long after the window holdback period
Table 3-03 Number of Unique Visitors at Internet Music Websites
(Unit : thousands of people, %)
Rank
Domain
Unique Visitor in thousands of people
Reach(%)
1
bugsmusic.co.kr
9,282
63.5
2
soribada.com
5,601
38.3
3
maxmp3.co.kr
2,810
19.2
4
muzcast.com
2,267
15.5
5
mnet27.com
1,709
11.7
(source : Internet Matrix, November 1～30, 2001)
43
2. e-Commerce
2.1 B2B
The Korean e-Commerce market size had
already surpassed 57 trillion won in 2000.
Through the first three quarters of 2001, the total
According to the 2001 third quarter e-
e-Commerce market size was 82.774 trillion won
Commerce business statistical survey from the
with 24.263 trillion won in the first quarter, 26.645
National Statistical Office, the B2B market totaled
trillion won in the second quarter, and 31.866
31.866 trillion won, and 1.15 trillion won in e-
trillion won in the third. The B2B market in which
Procurement transactions, 5.919 trillion won in e-
corporations purchase and sell products(services)
Distribution transactions, and 1.15 trillion won in
composed 52.3 trillion won, and the B2C market
neutral exchange e-Marketplace transactions were
in which is private e-Commerce such Internet
shown.
shopping malls and auctions composed a relatively
In B2B transactions, mainly e-Procurement
small 733.7 billion won.
transactions are taking place using corporate eretailer sites. Plus, in neutral exchange eMarketplace transactions, corporations without
Table 3-04 Total Size of e-Commerce market by business type
2001
2nd Quarter
3rd Quarter
ratio (%)
fluctuation
increase /
decrease
rate (%)
Total Size of e-Commerce Transactions
26,645
31,866
100.0
5,221
Business to Business (B2B)
24,242
29.658
93.1
5,416
22.3
1,705
1,447
4.5
-258
-15.1
Business to Consumer (B2C)
588
656
2.1
68
11.6
Others
110
105
0.3
-5
-4.5
Business to Government (B2G)
※ 1$ ≑ 1,300 won
19.6
(Source: Korea National Statistical Office, May 2001)
Table 3-05 Size of e-Commerce
2001
2nd Quarter
Volume of B2B transactions
24,150
e-Procurement
29,557
ratio (%)
fluctuation
rate (%)
increase /
decrease
100.0
5,407
22.4
19.5
18,939
22,623
76.5
3,684
Free market
-
(4,389)
(19.4)
-
-
Partner-based market
-
(18,234)
(80.6)
-
-
4,323
5,919
20.0
1,596
36.9
-
(456)
(7.7)
-
-
-
(5,463)
(92.3)
-
-
888
1,015
3.4
127
14.3
e-Distribution
Free market
Partner-based market
Neutral exchange e-Marketplace
※ 1$ ≑ 1,300 won
44
3rd Quarter
(Source: Korea National Statistical Office, May 2001)
independent B2B sites are utilizing e-
1900 at the end of 2000. The B2C transactions
Marketplaces to supply raw materials for
among total Internet shopping sales increased
production.
23.8% in the fourth quarter of 2001 at 811.4
Currently, although the B2B market has yet to
billion won as compared to 655.6 billion won in
overcome its small-scale and lack of specialty, the
the third quarter, and the total sales figure looks to
future of e-Commerce between corporations looks
surpass 2 trillion won.
to be bright. Additionally, B2B payment methods
The increase in the number of online shopping
have recently appeared to replace bills commonly
malls in Korea is slowing down each quarter. In
used in e-Commerce, and diverse payment
examining the change in sales from the second to
methods such as credit card payments, wire
third quarter of 2001, the increase rates of online
transfers, e-currency, and mobile payments are
shopping malls are higher than those of retailers
being introduced to brighten the prospect of e-
doing both online and offline sales. As a result, the
Commerce.
competition for existing small and mid sized
online exclusive shopping malls looks to be
2.2 B2C
intense.
Books were the most popular goods purchased
The total number of Internet shopping malls as
online making up 19.3%, and computers/
of the end of 2001 is 2166, a 15% increase from
hardware/accessories, and home appliances were
Table 3-06 Total revenue of Online Shopping Malls
(Unit : million won)
2000
Difference Compared to
Previous Quarter
2001
4th Quarter
Ratio
3rd Quarter
Ratio
Oct.
Dec.
4th Quarter
Ratio
Difference
Revenue
654,816
100.0
861,542
100.0
322,854
383,480
987,631
100.0
126,089
14.6
B to C
489,079
74.7
655,639
76.1
265,134
320,017
811,434
82.2
155,795
23.8
2000
Rate
2001
3rdQuarter
Ratio
2nd Quarter
Ratio
Aug.
total
476,379
online only
224,643
online/offline
251,736
Sep.
3rd Quarter
Ratio
100.0
790,107
100.0
47.2
331,209
41.9
272,194
298,390
861,542
100.0
116,724
133,930
366,997
52.8
458,898
58.1
42.6
155,470
164,460
494,544
57.4
※ 1$ ≑ 1,300 won
Diagram 3-04 Most Recently Purchased Item at Online Shopping Mall
(Unit : %)
26.8
Dec. 2000
May. 2001
19.3
13.2
10.5
10.4
5.6
8.6
11.1
9.3
8.1
7.2
5.4
6.1
3.5
2.4
Book
Computer Houses
Hardware Item
/
Accessories
Cosmetics
Leisure
goods /
hobby
4.8
4.6
4.9 4.5
1.6
Home
appliances
CDs /
Videos
Children
goods
Access
-ories
4.1
1.4
Clothes
Teleco
mmunic
ation
product
2.7 2.6
1.9 2.2
2.7
1.9
Gift
Certific
ation /
Tickets
Food
Audio
Equipm
ent
2.8
0.9
1.4
1.2
Furniture Computer
Software
1.2
0.7
Caraccess
oires
0.50.5
Flowers
45
next on the list. The notable point in 2001 was that
(EDI) system will be expanded to include 500
the purchases of books and computer-related
procurement items from 2001.
products decreased whereas cosmetics and leisure
The total size of the B2G market has reached
products, which had little purchase experience in
447 billion won, which includes 56 government
the past, showed an increase. This can be seen as
agencies (37 central administrative agencies and
result of the introduction of department store style
19 district organizations). In B2G product
shopping malls and the expansion of consumers’
categories, materials (47.3%) and equipment/
interests, which looks to be a positive influence in
machinery(31.8%) make up the largest proportion
the balanced growth of Internet shopping malls.
of B2G transactions, and it is forecasted that a
substantial increase in B2G transactions will take
2.3 B2G
place in the future depending on system
improvements and the participation of government
B2G refers to transactions between the
agencies.
government and companies regarding government
procurement, administration, and issuing of
2.4 Financing Services
certificates. The Maintenance Repair and
Operating Goods (MRO) part of the government
▶
Internet Banking
procurement market along with the tax payment
The number of Internet banking users surpassed
section, driver’s license renewal service, and
10 million near the end of 2001. The majority of
payment of traffic tickets are the main services in
Korean banks offer Internet banking services such
the B2G market. Beginning from 2001, all
as checking the balance of bank accounts and
procurements made by government agencies will
giving loans to corporations. Especially, some
be conducted online. The current procurements
banks are providing high quality financing
made through the electronic document issuer
services such as B2B electronic payment, mail
Table 3-07 B2G Transaction by Goods and Services
(Unit : 10 billion won, %)
Total
nondurable
durable
goods
goods
equipment
supplies
other
software
service
types
Size of online
Purchase
1,007
37
20
320
476
144
8
2
Ratio (%)
100.0
3.7
2.0
31.8
47.3
14.3
0.8
0.2
Diagram 3-05 Growth Pattern of registered subscribers to Internet Banking Services
(Unit : people)
1,000
895
743
800
529
600
409
400
263
200
12
47
123
0
1999
46
2000.3 2000.6 2000.9 2000.12 2001.3 2001.6 2001.9
banking, and e-CRM. Meanwhile, subsequent to
by domestic banks are drastically escalating each
the wide popularization of cellular phones and
year and this trend is predicted to continue for
PDA’s, 18 out of 20 domestic banks are offering
some time.
mobile banking services.
In September 2001, the number of Internet
▶
Online Stock Trading
banking users registered to the 20 domestic banks,
The number of securities companies offering
Citibank, and the Post Office was 8.95 million
online transaction service increased from 27 in
which was more than double the number at the end
1999 to 38 as of November 2001, and the online
of 2000. Additionally, the number of corporations
stock market is mainly centered around large
using Internet banking was 302,000 in September
securities companies. Despite the inactive stock
2001, an increase of 128% from June of the same
market, the percentages of online traders and
year. Internet banking-related investments made
transactions have continuously increased. The
proportion of online trading increased from 55.9%
Table 3-08 Online Stock Trading Volume
(Unit : trillions won, %)
of total transactions in 2000 to 66.7% in 2001. In
online stock trading, the results of private traders
Stock
Total
Rate
is higher in both the KSE and KOSDAQ. In terms
Sum in 1999
495.25
1,947.46
25.40%
of transaction amount, online trading makes up
Sum in 2000
1,348.1
2,411.2
55.9%
Sum in 2001
(Jan. ~ Oct.)
1,103.3
1,654.8
66.7%
Online
over 95% of the KOSDAQ market and
approximately 75% of the KSE.
3. Providing a Network Infrastructure
3.1 Connection Service
ISP providers, which only numbered 13 in 1995,
Diagram 3-06 Number of ISP in Korea
(Unit : number of ISPs)
increased to 83 in 2000, and continues to grow
with 99 at the end of 2001.
Number of ISPs
29
29
Number of increased ISPs
99
Much like 2000, high-speed Internet service
83
rapidly spread in 2001. On the other hand, PC
16
communication, the former representative form of
54
online communications, will die out or switch over
8
23
to Internet site in 2001.
13
1995
25
15
2
1996
2
1997
1998
1999
2000
2001
(Source : KRNIC Date: December 2001
47
3.2 ASP/MSP
3.4 VoIP
Whereas ASP focuses on the standard supply
VoIP technology provides voice services as well
and operation of application and business
as data services over IP, which is an Internet
processes, MSP places more emphasis on
network with a set of levels.
management of Internet business foundation
Along with the growth of the global VoPN
service which combines subnetworks, servers,
service market, the domestic VoPN service market
middle-ware and application.
has also grown. The growth rate from 2000 until
The ASP industry achieved a remarkable 580%
2004 is estimated to jump 66.8% to 1.857 billion
growth from 6.4 billion won to 37.2 billion won in
dollars. On the other hand, the growth rate of
the first half of 2001 despite the stagnation of the
wired telephone service will decrease by 0.2%
IT market. In July 2001, the number of businesses
from 2000 until 2004. In 2004, it will become a
registered to the Korean ASP Consortium was 92,
4.613 billion dollar market.
and the number including other ASP business is
estimated to be 200~300.
It is projected that the network equipment
related to VoIP service will also grow at a rapid
pace. The main equipment market related to VoIP
3.3 IDC
services such as gateway and gatekeeper market
will grow from 598 million dollars in 1999 to 6.53
Korea’s IDC market plunged into competition
billion dollars in 2003.
in the latter half of 2000 and there are currently 20
IDC business.
Diagram 3-07 IDC-Outsourcing, Utility
The IDC market combines outsourcing services,
US$(million)
which are server and co-location services, and
450
utility services, including various additional
400
services. It is forecasted to grow at an average rate
Utility
Outsourcing
350
300
of 38% per year to reach 382 million won in 2005
250
comprised of 79% outsourcing and 21% utility.
200
150
100
50
0
2000
2002
2001
2003
2004
2005
(Year)
(Source : Hyundae Research Institute, Jul. 2001)
Table 3-09 Types of MSP
Domestic firms
Physical Infra
NI
ZOOINNET, ISP, SNET, KDC, COMTECH
Management
IDC
PSInet, KIDC, KT-IDC, GNG, HANARO
Application/Svc
-
ISV
Management
48
Services offered
-
MMP, SMP
-
MMP, SMP, AMP, SSP
BMC, Mercury
AMP
Interactive, CA
Total Mgmt
SI
SDS, SICC, HIT, SKC&C
Outsourcing
Pure MSP
Iworld, MSP1
Foreign firms
IBM, EDS, HP
-
MMP, SMP, AMP
MMP, SMP, AMP
Table 3-10 Status of IDC
Company
DACOM
URL
IDC Name
http://www.kidc.net
Korea Telecom
Korea Telecom Hitel
Location
Opening Date
KIDC
Nonhyeon-dong
Oct. 1999
KT-IDC Hyehwa
Hyehwa-dong
Aug. 1999
http://www.kt-idc.com
KT-IDC Mapo
Mapo
Mar. 2000
http://www.entum.com
KT-IDC Yeongdong
Yeongdong
May 2000
http://www.hitelidc.com
KT-IDC Mokdong
Mok-dong
Apr. 2000
IBC
Sindaebang-dong
Apr. 2000
Elimnet Gangbuk IDC
Chungjeongno
Oct. 1999
Elimnet Gangnam IDC
Seocho-dong
Jul. 2000
Bundang
Jul. 2000
JCHyun System
http://www.elim.net
GNG Network
http://www.gngidc.net
GNG IDC
IBR
http://www.ibrglobal.com
IBR NPIX Center
Korea Computer
http://www.e-serverbank.com
Korea psinet
http://www.gihc.net
Samsung SDS
http://www.sds.samsung.co.kr
Kolon Data Communication
Yangjae-dong
Apr. 2000
Nonhyeon-dong
Dec. 2000
Hannet IDC
Sindaebang-dong
Jan. 2000
Global Internet
Yeoksam-dong
Jan. 1999
Hosting Center(GIHC)
Seocho-dong
May 2000
Gwacheon e-Center
Gyeonggi-do Gwacheon
Gumi e-Center
Gyeongbuk Gumi
1992
http://kdc.kolon.co.kr
Kolon C&C
Gyeonggi-do Gwacheon
Mar. 2001
Wellcomnet
http://www.wellcomnet.com
KDIC
Nonhyeon-dong
Apr. 2001
SK C&C
http://www.skcnc.co.kr
Data Center
Daejeon Daedeok
Oct. 1999
HYSYS IDC
Yeouido
May 2000
May 2000
1996
Hyun &Young Systems
http://www.hys.co.kr
Ngene
Seocho-dong
Hanaro Telecom
http://www.hanaro.com
Data Center
Dongjak
-
CJ Dreamsoft
http://www.cjdreamsoft.co.kr
-
Bundang
Oct. 2000
Oct. 2000
Thrunet
http://www.thrunet.com
Thruidc
Bundang
Asiaworks Korea
http://www.asiaworks.co.kr
-
Gangnam
Onse Telecom
http://www.i-base.co.kr
I-base
Pusan
Daewoo Information System
http://www.daewoobernic.com
-
Gwacheon
Dreamline
http://www.dreamline.co.kr
-
Jamsil
2000
Jul. 2000
Aug. 1994
Jul. 2000
(Source : ASP Industry Consortium, October 2000)
Table 3-11 Market Projections of Voice service in Korea
(Unit : one million dollars)
2000
Total VoPN Services
2001
2002
2003
2004
240
507
927
1,415
Growth Rate(%)
155.8
111.4
82.8
52.6
31.2
Total Public Telephone Service
4,658
4,668
4,651
4,632
4,613
0.1
0.2
-0.4
-0.4
-0.4
Growth Rate(%)
1,857
(VoPN Technology/Market Report, ETRI, 2001)
Table 3-12 Market Projections of the VoIP Equipment market
(Unit : one million dollars)
/Year
1999
2000
2001
2002
2003
Gateway/Gatekeeper equipment market
5.98
14.4
26.03
43.1
65.29
(VoPN Technology/Market Report, ETRI, 2001)
49
4.5 Contents Delivery Network(CDN)
game companies. Thus, the growth of CDN
services will indicate that the digital contents
CDN is a network that delivers digital content to
business is growing as well. In the future, CDN
the point of location that is closest to the Internet
services will become multimedia centers, game
user and decreases bottlenecks and data loss. It
centers, and other special centers for the needs of
delivers digital content faster and stabler.
different kinds of businesses. Gradually, billing
Operating over the current high-speed Internet
solutions, and other critical business solutions will
infrastructure, CDN is an effective solution for
be integrated into CDN services which will
delivering digital content. Over 50% of the
provide a platform for providing outsourcing
revenues for CDN services comes from online
services.
4. Mobile Internet Business
In the second year of the introduction of mobile
Internet services by mobile carriers, subscribers to
mobile Internet services has grown tremendously
and many kinds of services have been introduced.
Venture companies have rushed into the market to
Dragram 3-08 Contents Providers for
Mobile Internet Service
3,000
2,500
foreign markets. Subscribers to mobile Internet
2,000
model of content providers has turned profitable.
Most of the websites and content providers charge
members a fee and have introduced a“packet”fee
7.6
7.4
7.4
provide mobile content and a few have entered
services have increased rapidly and the profit
7.4
2,395
6.9
1,500
2,132
7.0
2,281
1,788
6.8
1,475
1,472
6.3
6.4
6.2
500
2001.1
2001.2
Profit
divided 9:1 with mobile carriers.
242
215
200
system where the fee for data services is fairly
6.6
6.4
1,000
0
7.2
7.0
307
367
376
6.0
5.8
5.6
2001.3
2001.4
Number of free-based CP
2001.5
2001.6
Common Profit/CP
Table 3-13 The number of Subscribers to Mobile Internet Services in Korea
(Unit : thousands of people)
2000
Jan. 2001 Feb. 2001 Mar. 2001 Apr. 2001 May 2001 June 2001 July 2001 Aug. 2001 Sept. 2001 Oct. 2001
Mobile
Service
Subscriber
26,816
26,745
26,728
26,553
26,689
27,301
28,090
28,004
27,919
28,244
28,785
Mobile
Internet
Subscribers
15,785
16,458
18,176
18,523
19,015
20,178
21,236
21,564
21,810
22,432
23,199
ISMS
6,965
7,103
8,937
8,601
8,284
7,926
7,510
7,303
6,842
6,508
6,228
WAP/ME
8,820
9,355
9,239
9,922
10,731
12,252
13,726
14,261
14,968
15,924
16,971
(Source : Ministry of Information and Communication, November 2001)
50
4.1 Market Conditions and Trends
very high. The number of digital content providing
companies for mobile Internet services has
From October 2001 until the present, the
increased from 122 registered companies in 2000
subscriber base in Korea for mobile Internet
to 378 registered companies in October 2001.
services has reached 23 million. 81% of mobile
In February 2001, SK Telecom had 47% of all
phone subscribers have access to mobile Internet
mobile Internet subscribers among mobile carriers.
services. This is a 20% increase from last year
KT Freetel had 24% and LG Telecom had 25% of
when there were 16 million subscribers to mobile
the market, while Korea Telecom m.Com had 4%.
Internet services (59%) of all mobile phone
In regard of the market projections of m-
subscribers.
Commerce, the number of subscribers to m-
Considering the number of subscribers to
Commerce in 2000 was 1 million comprising only
mobile Internet services, the actual usage of the
3% of all mobile service subscribers but will
services is very low. However, the revenue from
steadily increase to 45% of all mobile service
mobile Internet services has grown from 78.3
subscribers by 2005 (19 million subscribers). In
billion won in 2000 to 170.4 billion won in
the B2B market of m-Commerce, the market will
October 2001. The revenue from data services has
grow to more than 4.3 million subscribers while
grown from 13.7 billion won in 2000 to 34.4
the B2C market will grow to 15.6 million
billion won in October 2001. The market potential
subscribers. The size of the B2B market is
of digital content for mobile Internet services is
catching up to the B2C market.
Table 3-14 Revenue of Mobile Internet Services in Korea
(Unit : one billion wons)
Feb. 2001
Mar. 2001
Growth
2000
Voice
Communication
Revenue
Jan 2001
Revenue
Revenue
Rate
Apr. 2001
Growth
Revenue
Rate
May 2001
Growth
Growth
Revenue
Rate
Rate
102,754
8,691
8,486
-2%
9,194
8%
9,152
-0.005
9,582
5%
SMS Revenue
1,806
184
168
-9%
204
21%
211
3%
213
1%
Revenue of
Mobile Internet
Services
783
121
110
-9%
120
9%
137
14%
161
18%
Data services
Revenue
137
19
19
-1%
23
22%
28
21%
32
12%
Jun. 2001
Jul. 2001
Growth
Revenue
Voice
Communication
Revenue
Rate
Aug. 2001
Growth
Revenue
Rate
Sep. 2001
Growth
Revenue
Rate
Oct. 2001
Growth
Revenue
Rate
Growth
Revenue
End of
Oct. 2001
Rate
9,781
2%
9,792
0.1%
9,871
1%
9,809
-1%
10,06
3%
94,419
SMS Revenue
215
1%
212
-1%
215
1%
228
6%
246
8%
2,096
Revenue of
Mobile Internet
Services
178
11%
205
15%
224
9%
216
-4%
231
7%
1,704
Data services
Revenue
34
8%
42
22%
48
14%
45
-6%
53
18%
344
(Source : Ministry of Information and Communication, November 2001)
51
4.2 Mobile Internet Digital Content
chatted, participated in communities, sent e-mails,
or searched for information. More people used
Among the digital content available to domestic
mobile Internet subscribers, 73% of all
wired Internet services for e-Commerce and
searching for information.
respondents said that downloading background
Meanwhile, the IMT 2000 service, a future
screen images and ring tones were their main
mobile communication technology, will be offered
activity. This is the most common activity among
in 2002 or 2003 and allow high-speed packet
subscribers. 38.8% of all respondents mainly
transmission enabling full-scale mobile Internet
played games over the mobile Internet while
services.
34.4% used e-mail the most. 27.2% said they
either read news, sports news or weather reports
while 26.4% replied that reading horoscopes,
4.3 Corporate Mobile Internet
Services
novels, jokes. In comparing the most popular
content among mobile and wired Internet services,
■ Mobile B2B services
location information, news, sports, weather
reports, downloading background screen images
The three mobile carriers (SK Telecom, KTF,
and ring tones were the most popular. More
LG Telecom) each offer a corporate-only mobile
subscribers
communication solution and a description of the
to mobile
Internet
services
downloaded content than wired Internet
services is outlined in the below table.
subscribers. Subscribers to wired Internet services
used Internet banking services, shopped for goods,
Diagram 3-09 Comparision the most popular contents amomg mobile and wired internet service
3.6%
Other
15.8%
Search
English
43.0%
16.6%
Background screen
image/Ring tones
E-mail
9.6%
73.4%
51.4%
34.4%
4.4%
2.8%
26.6%
26.4%
Entertainment
Chatting
45.6%
13.4%
41.2%
38.8%
Games
15%
News
27.2%
8.2%
Tracking Service
19.4%
Shopping
19.6%
6.8%
11.2%
12.0%
Reservation service
Internet Banking
13.4%
5.6%
7.2%
7.0%
Stocks
0.0%
10.0%
20.0%
Mobile internd
52
30.0%
Wired internd
40.0%
50.0%
60.0%
70.0%
80.0%
■ Mobile Internet in the Public Sector
mobile and wired service business. Currently,
mobile services and wired services are distinct
Korea is developing a digital government by
businesses. In the future, the direction of mobile
laying the foundations for an information-based
Internet businesses will depend on how the access
digital community. But even though the current
network is deregulated.
digital government has installed wired Internet
lines and PCs around the nation, there have been
o The deregulation of the mobile Internet
limitations in terms of applications and access.
network will attract wired ISP providers, portal
Therefore, the government is pushing ahead to
companies, MISP(Mobile Internet Service
provide a Mobile Government Service (MGS) that
Provider) companies, independent portals, and
has robust mobile features such as convenience,
other online companies. New businesses will
mobility, personalization and multimedia-enabled
emerge from a deregulated mobile Internet
services.
industry.
o Full implementation of 3G services by mobile
4.4 The Future of the Mobile Internet
Business
carriers.
o Current mobile phone screens offering color
graphics and wider screens will become more
In the future, favorable and effective
sophisticated and refined to offer a comprehensive
government policies for mobile carriers and
mobile Internet services.
mobile content providers will help the domestic
o In order to create a robust mobile Internet
mobile Internet market grow at an explosive pace.
market, more kinds of data services must be
The deregulation of the mobile Internet access
provided and be more advanced.
network will bring the emergence of a integrated
Table 3-15 Mobile B2B services
LG BtoB
ㅇ Location (Map) Information/Tracking service
ㅇ Mobile Office Solution
ㅇ Mobile Stock Trading service
ㅇ Remote Telemetry service
KTF Viz
SK NATE Biz
ㅇ Mobile Office
ㅇ Mobile ASP
ㅇ Mobile Track
ㅇ Tracking service(Fleet Management)
ㅇ Mobile Telemetry
ㅇ Mobile Commerce
- ⓝCheck service
- ⓝMessenger service
ㅇ Mobile Telemetry
ㅇ Mobile Payment service(Mobile Transaction)
ㅇ System Solution
ㅇ Mobile Payment service
- ⓝZONE service
ㅇ Biz-SMS service
- ⓝBOARD service
ㅇ Location Information service
ㅇ Portable Video Transmission service
- Guardian Angel service
ㅇ Group messaging service
- Searchnet service
ㅇ SMS service
ㅇ Corporate SMS service
ㅇ VPN(Virtual Private Network)
ㅇ My Group service
ㅇ Info-Vision service
53
1. Internet eXchange(IX)
The Korea Internet eXchange service is
provided by NCA (KIX, www.kix.ne.kr), Korea
established by a small and medium size ISP
Association.
Telecom (KTIX, www.kix.net), Dacom (DIX,
www.bora.net), and Korea Internet Neutral
eXchange (KINX, www.kinx.net). The nonprofit
Diagram 4-01 IX Connectivity Map
public Internet networks are mainly interconnected
to KIX of the NCA while commercial ISPs are
linked to KTIX, DIX, or KINX. KTIX and DIX
2Gbps(DWDM)
Non commercial
network
KIX
KINX
KTIX
DIX
ISPs
are founded and operated by KT and Dacom
Corp., both of which are backbone communication
ISPs
companies also involved in the ISP business, while
KINX is operated by KINX Inc. which was
ISPs
>15Gbps
Table 4-01 State of IX bandwidth
Operating
Number of
Total
ISPs
Connection
Connected
Bandwidth
IX
Agency
NonCommercial
Commercial
Total peak Traffic
Volume
KIX
National
Computerization
Agency
15
11Gbps
4Gbps
KTIX
Korea Telecom
54
53Gbps
45Gbps
DIX
Dacom
63
45Gbps
35Gbps
KINX
KINX
35
35 Gbps
19Gbps
2. Internet Backbone Network
2.1 Commercial Network
Networks
(GNGIDC),
SK
Telecom
(SKSpeedNet), Dreamline (DreamX), and
Currently, Korea commercial networks are
provided by 94 ISPs including Korea Telecom
Considering that the total number of ISP was 40
(KORNET), Dacom Corp. (BORANET), Onse
in 1999 and 83 in 2000, the rapid growth in the
Telecom Corp. (Shinbiro), Hanaro Telecom Corp.
number of Internet service providers is evident.
(hananet), Thrunet Corp. (Thrunet), GNG
54
Powercomm Corp. (POWERCOMM).
Table 4-02
Service
Company
Korea
Name
KORNET
Telecom
Network Connection
Network State
Domestic
Foreign
Total nodes
(Total bandwidth of IX : 15.2Gbps
Overseas Links
nationwide: 100
DIX : 15Gbps
(Total 4,655 M)
Links between
KIX(NCA): 200Mbps)
U.S. (UUNET and 8 companies) : 3,720M
major cities: 5～10Gbps
(Total Domestic
Japan(NTT,C&WIDC,KDDI) : 490 M
Links between
Connected ISPs
China (China Telecom) : 92 M
small and
:41,724Mbps)
Hong Kong(CW-HKT) :
mid-sized
45M Taiwan(CHT-D, CHT-1) : 45 M
cities:5～622Mbps
Singapore(SingTel) : 45 M Australia and
New Zealand (Telstra, Optus, TNZI) : 12M
Southeast Asia (Indisat,Tmnet): 5.5M,
Europe (LINX): 45M
Dacom
BORANET
Total nodes nationwide: 59
(Total bandwidth of IX :15.2Gbps
Links between major cities KT-IX : 15Gbps
5Gbps
KIX(NCA) :200Mbps)
Overseas Links(Total 1,675 Mbps)
U.S. (Qwest and 8companies) :
1.085Mbps
Links between small and (Domestic Connected
Asia: 590 Mbps
mid-sized cities:
(Japan,206Mbps)(China,155Mbps(Singap
ISPs :14,604Mbps)
45～155Mbps
ore,45Mbps)
(Hong Kong,45Mbps)(Australia, 45Mbps)
(Taiwan,47Mbps)
(Malaysia,2Mbps)(Thail a nd, 45Mbps)
Onse
SHINBIRO
Telecom
Total nodes
(Total bandwidth of IX : 5G
Overseas Links(Total 413Mbps)
nationwide: 22
KT-IX : 1G
U.S. : Onse US POP 361Mbps
Links between major nodes: KINX : 2G
Japan (Japan Telecom): 51Mbps
155 Mbps～1Gbps
DIX : 310M )
Hong Kong (NWT): 1Mbps
Links between
(Total bandwidth of ISPs : 155M)
small and mid-sized
cities: 6～45Mbps
Hanaro
HANANET
Telecom
Links between major cities:
(Total bandwidth of IX : 20Gbps
2.5～40Gbps
KINX : 4Gbps
U.S.: 1,465Mbps
Links between small and
DIX : 5Gbps
Japan: 90Mbps
mid-sized cities: 155Mbps～ KT-IX : 10Gbps
2.5Gbps
Overseas Links(1.6Gbps)
China: 45Mbps
KIX(NCA) : 1Gbps)
(Total bandwidth of ISPs : 15.5Gbps)
Thrunet
Thrunet
Inc.
Total nodes nationwide: 120 (Total bandwidth of IX : 8Gbps
Overseas Links(Total 1,240 Mbps)
Links between major
KNIX : 2Gbps
U.S. (UUNET,Abovenet, PAIX) : 1,085
cities:5~10Gbps
KT-IX : 5 Gbps
Mbps
DIX : 1Gbps)
Asia Transit Node (DACOM) : 155 Mbps
GNG
GNGIDC
Total nodes nationwide: 63
(Total bandwidth of IX : 9Gbps
Neworks
Links between major cities: KT-IX : 5Gbps
Inc.
2.5Gbps
Overseas Links
(Total 310Mbps)
DIX : 1Gbps
U.S. (Abovenet, 155M)
KINX : 3Gbps)
(XO, 155M) : 310Mbps
Chapter 4 Internet Infrastructure
55
Service
Company
SK
Name
SKSpeedNet
Telecom
Network Connection
Network State
Domestic
Foreign
Seoul (ITC), Bundang,
(Total bandwidth of IX : 310Mbps
Daejeon link 622 Mbps
KT-IX : 155Mbps
Hanaro Telecom (Leased): 45Mbps
other links 155Mbps
DIX : 155Mbps)
(Total bandwidth of ISPs : 355Mbps)
Dreamline
DreamX
Total 155Mbps～2Gbps
(Total bandwidth of IX : 3.5Gbps
Major node links 45 ～ KT-IX : 2.5Gbps
Hanaro Telecom : 90Mbps PSInet :
155Mbps
45Mbps
KINX : 1Gbps)
Powercom
POWERCOMM Built large fiber optical
Inc.
network
—
using steel towers Links
—
between
major cities: 2.5Gbps
2.2 Non-Profit Network
622Mbps between major cities and 155Mbps
between small and mid-sized cities. A plan to
■ KII Network
advance the speed beyond 2.5Gbps in core
backbone areas in node regions and interconnected
▶
PUBNET- Korea Telecom(KT)
sections is being pursued for the future.
The high-speed Internet leased line provider
PUBNET provided a router-oriented network in
Diagram 4-02 PUBNET Network
1997 and commercial service for public
institutions beginning January 1998 in order to
meet the rapidly increasing demands in the public
Euijungbu
sector in connection with constructing the KII
Wonju
project. In addition, from 1998 it has promoted the
establishment and advancement of ATM switching
Sowth
Inchon
Suwon
networks and Internet networks based upon an
Cheongju
ATM. The government agencies offer Internet
Daejon
services by leasing frame relay, leased lines, and
ATM circuits from PUBNET. The Internet
Daegu
backbone network is composed of 18 PoPs that
North Jeonju
were completed at the end of 2001 and are linked
together by an ATM network.
Additionally, the backbone network linking
56
Busan
West
Kwangju
North Kwangju
East Masan
major cities is based on an ATM network and
Gigabit Rauter
provides connection speeds of 155Mbps ~
Middle Rauter
▶
PUBNETPLUS - DACOM
International lines are connected to foreign
PUBNETPLUS is providing high-speed Internet
countries at 355Mbps through KIX of NCA.
service for national and public institutions through
ATM networks as part of KII project. Internet
■ HPCNet/KREONET - KISTI
service via ATM switch networks have provided
commercial services after IPOA (IP over ATM)
▶
HPCNet
Internet trial service was implemented in
HPCNet is a backbone network which was built
September 1999, using the ATM network that was
to provide KISTI’s supercomputer infrastructure
completed as the second stage of the KII project.
to all supercomputer users in the country.
Internet backbone networks are forming
HPCNET helps government agencies, educational
redundant networks based on ATM networks in 15
agencies, public and corporate laboratories to
regions nationwide. Leased lines, frame relay, and
utilize supercomputers by improving the backbone
ATM via ATM subscriber switch based on the
network continuously. The network enhancement
integrated ATM in 60 regions is offered to
project for 2000 supports the ATM network
government agencies. Most domestic PoPs have
linking PoPs and upgrades the speed of the
been constructed with emphasis on providing
backbone network. Thereby, the project will
secure services by redundancy. The speed of the
complete the construction of the GRID network
lines are 45Mbps, 155Mbps, and 622Mbps.
which will be accessible to domestic researchers.
Diagram 4-03 PUBNETPLUSE Network
▶
KREONET
KREONET is one of the 5 national backbone
Euijungbu
networks
Hyehwa(Kwangwhamun)
155M
Youngsan
which
interconnects
domestic
government laboratories, science and technology
related public agencies, university and corporate
155M
Chunchon
laboratories. It is a nonprofit ISP which seeks to
Inchon
enhance research productivity by sharing
Sungnam
Ansan
computer resources and promoting exchange of
Suwon
Anyang
Wonju
2.5G
research data. The HPCNET is a backbone
622M
network shared among 300 subscriber universities
Chungju
Daejun
622M
Gumi
Cheongju
155M
Chonju
622M
Andong
Daegu 155M
Ulsan
▶
KREONet2
KREONet2 has been in service from 2001
Kwangju
622M
155M
and laboratories.
Busan
Masan
aiming to provide an advanced network service of
existing research computer networks. Working
together with the APII Testbed project supervised
by MIC, it provides research-only network
New Gigabit Rauter
Gigabit Rauter
Cheju
Middium Rauter
services to 300 or so domestic KOREN and
research institutes via high-speed 45Mbps link
with the global research network gateway STAR
57
TAP. Abilene (a global research network) and the
IPv6 native network such as 6TAP, 6NGIX, and
KOREN are linked to KREONet2. In 2002, it
plans to promote a link with the Dutch R&D
network, SURFnet, and play a key role in
international joint research.
▶
6KANet - NCA
As part of a project to increase the size of the
subscriber network of IPv6, 6KANet was
constructed and is providing IPv4/IPv6 Internet
service by using IPv6 supporting routers and OS.
Currently, there are 38 organizations subscribing
6KANet services.
▶
EDUNET - KERIS
EDUNET allows access to educational infor-
mation that is in constant demand by students,
teachers, parents as well as the general public. It is
the nation’s largest educational information
system which provides various IT services.
Together with its reorganization into a
comprehensive education portal site in 1999,
EDUNET is providing Internet service at a speed
of 56Kbps through construction of a nationwide
01444 network. Also, it is constructed on 11 PoPs
across the country connected at 4~6Mbps between
main PoPs and 512Kbps~2Mbps between small
and medium PoPs.
58
3. Access Network
3.1 Wired Internet
■ Broadband Internet Service
Currently, most households and companies
The number of broadband subscribers at the end
access the Internet via cable telecommunication
of 2001 was 7.8 million, a rapid growth of 194%
networks such as leased lines, dial-up, ISDN,
from the previous year. This shows that over half
xDSL, and HFC network. Of these, the most
of 14.4 million total households have broadband
common is xDSL which connects 56.8% of all
connections, which is the highest percentage
Internet users. The use of broadband connections
among OECD Countries. However, at the end of
such as xDSL and HFC network has increased
2001, the rate of increase appeared to be slowing
twofold since the previous year. It is predicted that
down, showing that the number of high speed
as the Metro Ethernet service becomes more
Internet subscribers has reached a saturation point.
commonly used through cyber-apartment services
and construction of optical cables, high-speed and
▶
quality wired Internet services will grow at an
Cable Modem Internet Service
HFC(Hybrid Fiber Coax) Internet service
even faster rate.
network is comprised of fiber optical cable
connections between the broadcasting station to
■ Dial-Up, ISDN Service
the fiber optical nodes, and a coaxial cable
connections from the fiber optical nodes to each
In order to access the Internet from companies
subscriber. Since the introduction of HFC Internet
or households without a leased line, PC
connection services in July of 1998, Hanaro
communications services at 56/128Kbps must be
Telecom, Thrunet, Dreamline, SKT, Dacom, and
used via dial-up modem or ISDN TA/NT terminal.
Onse Telecom are currently providing these
Although Internet access via dial-up modem is
services as well. The frontrunner, Thrunet has a
available in all regions with telephone service, it is
stronghold on the market and Hanaro Telecom is
rapidly being replaced by high speed Internet
right on its heels.
(xDSL, HFC) because there are limitations in
HFC high-speed networks are divided into
transfer speeds when transferring large files or
Powercom’s HFC high speed networks, cable
receiving multimedia services.
networks of wired cable providers, and private
Table 4-03 Subscribers to DSL or Cable Modem services
Jan.
Feb.
Mar.
Apr.
May.
Jun.
July.
Aug.
Sept..
Oct.
Nov.
Dec.
2001
2001
2001
2001
2001
2001
2001
2001
2001
2001
2001
2001
DSL
2,763
3,029
3,303
3,717
3,989
4,108
4,244
4,396
4,572
4,685
4,822
5,076
Cable
1,491
1,581
1,757
1,747
1,862
2,109
2,218
2,327
2,428
2,533
2,659
2,723
(Source : Ministry of Information and Communication)
59
HFC networks of each telecommunications
company.
the end of 2001 it has secured 64,000 subscribers.
Hanaro Telecom’s ‘HanaFOS e-Valley’ went
through trial service from July to August 2001 and
ADSL Service
commenced commercial service in September
xDSL technology is classified into ADSL
2001. As of the end of 2001 it has secured 4,500
(Asymetric Digital Subscriber Line), HDSL
subscribers. Both companies plans to provide
(High-bit-rate DSL), SDSL (Symetric DSL),
services to newly built apartments through
VDSL (Very high-speed DSL) according to data
cooperation with construction companies. It looks
transfer speeds.
as though they will play a leading role in inter-
▶
Amongst them, the one that is clearly at the
apartment high-speed Internet.
center of attention is ADSL. Presently, the ADSL
market is dominated by KT and Hanaro Telecom
■ Leased Line Service
and has experienced rapid development through
the competition between the two companies. In the
Internet leased line service connects the
future, the ADSL market will attempt to spread
customer’s network to the Internet using a leased
through KT’s opening of subscriber networks, as
line enabling Internet access 24 hours a day.
well as focusing on developing additional services
Currently, service is being provided at wired
such as home networking and VOD through
speeds such as N 64. T1,E1, DS3, STM-1 using
existing ADSL networks.
TDM based SDH equipment, and a new service
titled Metro Ethernet has recently been added.
▶
Cyber Apartment Service
The main service providers are KT (Kornet)’s
Cyber apartment offers a high-speed Internet
LAN connection service, Dacom’s Boranet,
service based upon fiber optical and ethernet
Hanaro Telecom’s Hananet Internet Direct, and
technology which connects apartment complexes
Thrunet’s Alpha Service.
with 45M/115M/1G/bps trunks according to the
number of its residents, and connects the LAN
switch placed in the apartment computer room to
each building using optical cables. In addition, it
connects each household with UTP cables.
KT continues to provide this service under the
name ‘Megapass Ntopia’
since starting
commercial service in December 2000, and as of
Table 4-04 Status of ADSL services
Korea
Hanaro
Telecom
Telecom
3,340,526
1,010,715
Thrunet
Dreamline
Total
2,471
98,877
4,452,589
Number of
Subscribers to
ADSL
(Source : Ministry of Information and Communication)
60
3.2 Mobile Internet Services
■ Satellite Internet
■ Mobile Internet
Satellite Internet is a communications service
which enables high speed Internet access at a
The types of mobile communication networks
maximum 3Mbps using the Mugungwha Satellite.
currently being provided are cellular phones, TRS,
It is currently being provided by SK Telecom
mobile data, and mobile paging. The number of
under the name ‘Satellite Megapass’ and as of
domestic mobile communication subscribers as of
December 2001 it has secured 12,000 subscribers
December 2001 totals 29.5 million. Cellular phone
since it was commercialized in June 2000. As the
are the mainstream, comprising 98.3% with 29
provision of high-speed Internet using ADSL and
million users. Consequently, the mobile Internet
CATV has been widely spread, the demand for
service market is making growth centered around
satellite Internet service is mainly occurring in
cellular phone networks.
mountainous and remote isolated regions where it
Since the selection of CDMA as the standard for
is difficult to provide high-speed Internet services.
2nd generation mobile communications, SK
Telecom is carrying out the cellular business, and
■ Broadband Mobile Local Loop (BWLL)
KTF and LG Telecom are carrying out the PCS
business at the present time. In addition to services
KT, Hanaro Telecom, and Dacom were selected
through 2nd generation cellular phone networks,
in 1999 as BWLL providers, and Hanaro Telecom
these 3 companies are also providing mobile
is providing services in Seoul, Busan, Jeju, and
Internet services via cdma2000 1x, the 3rd
parts of the Gyeonggi region after implementing
generation network in 2001.
service in July 2000. KT has been providing
The mobile web browser market can be divided
services as of February 2001 and a plan has yet to
largely into WAP (Mobile Application Protocol),
surface on Dacom’s service implementation. At
ME (Mobile Explorer), and i-mode. In Korea, SK
the end of 2001, the Korean BWLL market has yet
Telecom and LG Telecom is using WAP, and KTF
to be fully activated with merely 30,000
is using the ME.
subscribers.
Table 4-05 Number of Domestic Mobile Communication Subscribers
(Unit : people)
Number of subscribers
Mobile Phone service
29,045,596
Mobile Carriers
SK Telecom, KTF, LG Telecom
Korea Telecom Powertel, Anam Telecom, Seoul TRS,
TRS
182,834
Mobile data services
79,855
Airmedia, Intec Telecom
235,628
Intec Telecom, Each local carrier
Mobile pager service
Total
Daegu TRS, Powertel TRS, Sebang Telecom, Jeju TRS
29,543,913
(Source : Ministry of Information and Communication, December 2001)
61
■ Mobile Local Loop(WLL)
the market. However, with the domestic
companies developing self-solutions and getting
WLL is a network which provides Internet
service to subscribers using a 2.3GHz frequency as
serious about capturing not only the domestic but
also international markets.
opposed to cable. Hanaro Telecom and KT
implemented trial services after being appointed as
3.3 International Submarine Cables
2.3GHz range WLL service providers in
December 1998, but commercial service never
Presently, the international submarine optical
begun. Accordingly, the government is examining
cables connected to Korea are composed of a total
the withdrawal of the WLL frequency for efficient
of 12 underwater cables (JKC, HJK, RJK, CKC,
use of frequencies.
APCN, FLAG, SMW-3, CUCN, APCN-2, C2C,
EAC, FNAL), and its total capacity amounts to
■ Mobile LAN
16.75Terabps. The domestic submarine cable relay
stations are distributed in 8 regions (Busan, Jeju,
Mobile LAN refers to the technology which
Geoje, Taean, Goheung, Namhae, Hosan,
supplements the deficiencies of the existing cable
Ulleung), and its total capacity amounts to
LAN through mobile transfer technology and
133.48Gbps. It is predicted that after 2002, the
expands LAN to environments in which the
reliance on submarine optical cables will reach
installation of cable LAN through mobile
98% of international transfer lines, exceeding that
channels. The Korean mobile LAN market is built
of satellite communications.
around self networks such as university campuses,
In 2002, five new submarine fiber optical cables
hospitals, department stores, and discount stores,
(AAN, KJCN, Japan-US, Tycom Global Network,
and equipment construction for PC rooms is
FLAG/Tiger) will be planned for construction.
actively in progress. There are 10 or so domestic
Three of these planned cables will be connected to
and foreign companies competing in the Korean
Korea's wired cables (AAN, JJCN, FLAG/Tiger).
mobile LAN equipment market. Presently, the
Altogether, there are 29 existing submarine fiber
foreign companies are dominant with the
optical cables around the world that link the U.S.,
American Avaya having more than 50% share of
Canada, Japan, France, Singapore and other
Table 4-06 Subscribers to Internet via Satellite services (Korea Telecom)
(Unit: people)
Number of subscribers
June 2000
Dec. 2000
June 2001
Dec, 2001
7,439
9,036
9,789
12,020
Table 4-07 Subscribers of BWLL
(Unit: people)
Sept. 2000
Korea Telecom
Dec. 2000
Mar. 2001
June 2001
Sept. 2001
Dec. 2001
831
950
1,020
989
-
-
Hanaro Telecom
4,156
11,540
16,564
22,843
26,798
30,409
Total
4,156
11,540
17,395
23,793
27,818
31,398
62
countries to each other. In 2002, the total global
surpass several 10 Terabps.
capacity of submarine fiber optical cables will
Table 4-08 International Submarine Optical Cables
Beginning Date
Cable
International
System Capacity
Length (km)
of service
JKC
Korea-Japan
36M
200
HJK
Korea-Japan-Hong Kong
280M×1
4,587
May 1999
RJK
Korea-Japan-Russia
560M×2
1,762
Jan. 1995
Feb. 1981
CKC
Korea-China
560M×2
549
Jan. 1996
APCN
Korea-Taiwan-Malaysia-Australia and 10 countries
10G×2
11,839
Jan. 1997
FLAG
Korea-Japan-Hong Kong-Middle
East-Europe and 13 countries
5G×2
27,943
Sept. 1997
40G
38,000
Dec. 1999
SMW-3
CUCN
Domestic
Constructed Sections
Korea-Northeast Asia-Southeast
Asia-Middle East-Europe and 35 countries
Korea-U.S.-China-Japan-Taiwan-Guam
20G×4
26,000
Jan. 2000
APCN-2
Korea-Japan-China-Hong
Kong-Taiwan-Singapore-Malaysia
2.56Tera
20,000
2002
EAC
Korea-Japan-Taiwan-Hong Kong
2.56Tera
10,600
Sept. 2001
C2C
Korea-Japan-Taiwan-China-Hong
Kong-Taiwan-Singapore-Malaysia
7.68Tera
17,000
Nov. 2001
FNAL
Korea, Japan, Taiwan, Hong Kong
3.8Tera
-
Latter half of 2002
No. 1
Jeju-Continental Korea
Jeju-Goheung
280M×3
169
Apr. 1990
Ullung-continental
Korea
Ullung-Hosan
140M
159
Dec. 1993
No. 2
Jeju-Continental Korea
Jeju-Goheung
2.5G×2
191
Dec. 1996
No. 3
Jeju-continental Korea
Jeju-Namhang
2.5G×3
236
May 2000
63
Digram 4-04 Structure of Korea Submarine Optical Cable Network
Ullung
Hosan
Seoul
Shantau(China)
Taean
Taiwan/HongKong
APCN-2
Japan
EAC
Shima(Japan)
RJK
Other 6
countries
Nihodggi(Russia)
Naoetsu(Japan)
C-K-C
Shanghai(China)
Koheung
Pusan
Keoje
JKC
Miyazaki(Japan)
Mumbai(Indonesia)
SEA-ME-WE-3
Guemsey
(United Kingdom)
Miura(Japan)
United Kingdom
Hong Kong
C2C
Shanghai(China)
FLAG
Cheju
Poscomo(United Kingdom)
America
NPC Guam
Singapore/Indonesia
CUCN
HJK
America
Ninomiya(Japan)
TPC-5(N)
Miura(Japan)
America
NPC
Hong Kong(Hong Kong)
64
TPC-5(S)
America
Other 35 countries
Other 12 countries
Japan(Closed)
APCN
Okinawa(Japan)
Chikura(Japan) TPC-4
Chongming(China)
Sanghai
Shima(Japan)
Other 8
countries
Bandon(America)
Hong Kong
APC
America
Twan, Guam
Singapore
Chikura(Japan)
A
p
p
e
n
d
i
x
1. List of Internet-related Organizations
Field Related
Organizations
National Computerization Agency (NCA)
Korea Information Society Development Institute (KISDI)
Information Communication Ethics Committee (ICEC)
Korea Network Information Center (KRNIC)
Information Culture Center of Korea (ICC)
Technology & Research Electronics and Telecommunications Research Institute (ETRI)
Korea Institute of Science and Technology Information (KISTI)
Korea Information Security Agencu (KISA)
Korea Association of Information and Telecommunication (KAIT)
Telecommunications Technology Association (TTA)
Institute of Information Technology Assessment (ITA)
Industry & Corporation
Korea Internet Corporations Association (Kinternet)
Korea Information & Contents Business Association (KIBA)
Federation of Korean Information Industries (FKII)
URL
http://www.nca.or.kr
http://www.kisdi.re.kr
http://www.icec.or.kr
http://www.nic.or.kr
http://www.icc.or.kr
http://www.etri.re.kr
http://www.kisti.re.kr
http://www.kisa.or.kr
http://www.kait.or.kr
http://www.tta.or.kr
http://www.iita.re.kr
http://www.kinternet.org
http://www.kiba.or.kr
http://www.fkii.or.kr
TEL
+82-2-2131-0114
+82-2-570-4114
+82-2-3415-0114
+82-2-2186-4500
+82-2-3660-2633
+82-42-860-6114
+82-2-962-6682
+82-2-3488-4500
+82-2-580-0580
+82-2-723-7073
+82-42-869-1114
+82-2-528-4114
+82-2-2264-3636
+82-2-780-0201
E-Mail
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
Promissing Information & Communication
Companies Association (PICCA)
http://www.picca.or.kr
+82-2-3424-6155
[email protected]
Korea Venture Business Association (KOVA)
Open Standards and Internet Association (OSIA)
Korea ISPs Association
Korea Institute for Electronic Commerce (KIEC)
KOREA CALS/EC ASSOCIATION (KCALS)
http://www.kova.or.kr
http://www.osia.or.kr
http://www.kispa.or.kr
http://www.kiec.or.kr
http://www.kcals.or.kr
+82-2-562-5914
+82-2-562-7041
+82-26007-6200
+82-2-3453-0404
+82-2-551-1452
[email protected]
[email protected]
[email protected]
[email protected]
CommerceNet Korea (CNK)
http://www.commercenet.or.kr
+82-2-774-8558
webmaster@commercenet.
or.kr
Korea IT Industry Promotion Agency (KIPA)
Korea Database Promotion Center (KDPC)
Korea Software Industry Association (KOSA)
Korea Software Financial Cooperative (KSFC)
http://www.software.or.kr
http://www.dpc.or.kr
http://www.sw.or.kr
http://www.ksfc.or.kr
+82-2-3469-1500
+82-2-318-5050
+82-2-586-3411
+82-2-3469-1100
[email protected]
[email protected]
[email protected]
[email protected]
Policy & Statistics
e-Commerce
Infrastructure
2. List of ISPs
Non-Commercial Network
Network Operater
NetDACOM-PUBNETPLUS
Service Name
PUBNETPLUS
Tel
+82-2-6220-6695
E-Mail
URL
[email protected]
www.pubnetplus.ne.kr
www.keris.or.kr/~isp
KERIS
EDUNET
+82-2-3488-6325
[email protected]
KISTI
HPCNET
+82-42-869-0582
[email protected]
www.hpcnet.ne.kr
KISTI
KREONet
+82-42-828-5166
[email protected]
www.kreonet.re.kr
Korea Telecom-PUBNET
PUBNET
+82-331-260-2387~8
[email protected]
www.pubnet.ne.kr
6KANet
+82-2-398-9090
[email protected]
www.ngix.ne.kr
Commercial Network
Network Operater
Service Name
Tel
ABN
DITIZONE
+82-31-710-8952
ANYSAT
ANYSATI
ARISOO
Living114
BANDOCABLELINE
E-Mail
URL
[email protected]
www.abn.co.kr
+82-1588-0028
[email protected]
www.anysati.com
+82-2-2190-8868
[email protected]
www.living114.net
CABLELINE
+82-63-900-9051
[email protected]
www.cableline.com
Bittel
Bitte
+82-2-2648-1010
[email protected]
www.bittel.net
cablei
XNET
+82-2-3445-7594/6
[email protected]
www.cablei.co.kr
CPS
CNIDC
+82-2-3218-0782
[email protected]
www.cps.co.kr
DACOM Corporation
BORANET
+82-2-6220-7007
[email protected]
www.bora.net / www.chollian.net
DAEJONMEDIATELECOM
DAEJONMEDIA
+82-42-633-0033
[email protected]
www.daejon.com
Dream Network co., Ltd
WOWINTERNET
+82-080-081-4285
[email protected]
www.dream5.com
DreamcityMedia
DREAMPLUS
+82-1566-1234
[email protected]
www.dreamcity.co.kr
DREAMLINE CO.
DREAMX
+82-080-770-1100
[email protected]
www.dreamline.co.kr
eGIOS
eGIOSNET
+82-2-2116-8014
[email protected]
www.egios.com
ELIMNET, INC.
ELIMNET
+82-2-3149-4800
[email protected]
www.elim.net
Appendix
65
Commercial Network
Network Operater
Service Name
Tel
+82-55-266-6924
E-Mail
[email protected]
URL
ESOLTECH
SAFELINE24
www.safeline24.net
EUREKAMEDIA
POWERNET
+82-2-3675-6700
[email protected]
www.eureka21.com
eyesvision
EYES
+82-51-850-5000
[email protected]
www.eyes.co.kr
www.ezcen.com
EZCEN
CENNET
+82-2-815-5651
[email protected]
GNGNetworks
GNGIDC
+82-1588-2464
[email protected]
www.gngnetworks.com
GORayNet
RayNet
0+82-2-2109-8282
[email protected]
www.raynet.co.kr
Hanaro Telecom Co.
HANANET
+82-106
[email protected]
www.hanaro.com
HangaramNetworks
BITSRO
+82-42-670-4690
[email protected]
www.hangaram.co.kr
HanQnet Co.,Ltd
HANQ
+82-80-211-1242
[email protected]
www.hanq.net
hansol iGlobe
HANSOLNET
+82-2-531-7900
[email protected]
www.hansoliglobe.com
Hanvitinb
HANVITINB
+82-31-414-4000
[email protected]
www.hanvit.net
iAsiaWorks Korea, Ltd.
iAsiaWorks
+82-2-3415-7703
[email protected]
IBSat Co.,Ltd.
IBSat
+82-080-555-7100
ILINKKOREA
INDICLUB
+82-2-2109-5255
[email protected]
Internet Service Inc
HANINTERNET
+82-2-860-8000
[email protected]
Haninternet.co.kr
INTERTNS
JLAN
+82-63-224-6774
[email protected]
www.intertns.com
Intz.com
INTZNET
+82-2-2240-7000
[email protected]
www.intz.com
IOSYSTEM
JIGUNET
+82-2-413-9005
ISSAN CO.,Ltd
ISSAN
+82-2-789-9114
[email protected]
ItsTV
ITS-TV
+82-1588-9980
[email protected]
www.its-tv.com
IWORKNET
IWORKNET
+82-32-218-0114
[email protected]
www.iwork.co.kr
KangNam CableTV
KNCTV
+82-2-512-4200
[email protected]
www.knctv.co.kr
KIC for Agriculture
AFFIS
+82-31-299-8833
[email protected]
www.affis.net
KICA
SIGNGATE
+82-2-360-3003
[email protected]
www.signgate.com
KILT.,Co.Ltd
DUALLINE
+82-32-423-6100
[email protected]
www.dualline.net
KITEL
QPLine
+82-2-3445-2231
[email protected]
www.qpline.com
Korea Informatics Telesis Inc.
KITINET
+82-080-2580-410
[email protected]
www.groupnet.co.kr
Korea Telecom
KORNET
+82-080-014-1414
[email protected]
www.kornet.net
Korea Telecom Hitel
KOLNET
+82-2-3289-2200
[email protected]
www.hitel.net, www.nhitel.net
Korea Trade Network
KTNET
+82-2-6000-2119
[email protected]
www.ktnet.co.kr
KOREAINTERNETDATACENTERInc.
KIDC
+82-2-6440-2900
[email protected]
www.kidc.net
KOREAINTERNETTELECOM
KITNET
+82-62-511-6670
[email protected]
www.kitclub.co.kr
KoreaMultinet
MULTINET
+82-2-3443-3006
[email protected]
www.koreamultinet.com
KRISP
KRISP
+82-32-442-6000
[email protected]
www.krisp.co.kr
KrLine Internet Service Inc.
KrLine
+82-2-3461-3282
[email protected]
www.krline.net
Kwacheon Broadcasting Network
KBN
+82-2-507-4000
[email protected]
www.kbntv.co.kr
Kwan-ak Television Network Co
KCNET
+82-2-837-6008~9
[email protected]
www.kcnet5.com
Kyonggi
CableTV DigitalSystem
+82-31-910-1000
[email protected]
www.digitalsystem.co.kr
LINEPLUS
LINEPLUS
+82-2-2203-1775
[email protected]
www.lineplus.net
www.wcom.co.kr
[email protected]
[email protected]
www.iAsiaWorks.co.kr
www.ibsat.co.kr
www.ilinkkorea.co.kr
www.jigu.net/
www.issan.net
MCIWORLDCOM
XPRESSNET
+82-2-6281-7921
[email protected]
MINS
NCABLENET
+82-53-623-3011
[email protected]
www.mins.co.kr
MiraeOnline
SATCOM
+82-1588-2325
[email protected]
www.miraeonline.com
mire.net
MIRENET
+82-2-2009-2660
[email protected]
www.mire-net.co.kr
Mouminfomation Co.,Ltd
MoumNet
+82-080-561-8888
[email protected]
www.moumnet.com
MPNNetworks
MAGICPOWER
+82-2-778-3335
[email protected]
www.magicpower.com
NETcubic
NETCUBIC
+82-2-6284-2200
[email protected]
www.netcubic.com
NETSGO
NETSGO
+82-2-3479-0700,
[email protected]
www.netsgo.com
NEXTEL
NEXTEL
+82-2-3424-4914
[email protected]
www.nextel.co.kr
NOWCOM Co.,Ltd
NOWCOM
+82-2-590-3800
[email protected]
www.nownuri.net
NOWLINK CO., LTD
NOWLINK
+82-1588-0074
[email protected]
www.nowlink.net
OKSUNG TEL-Communication Co,.Ltd
OK-NET
+82-2-2107-3114
[email protected]
www.oksung.com
ONSE Telecom
SHINBIRO
+82-083-100
[email protected]
www.shinbiro.com
www.pcsi.co.kr
pacificcsi
PCSI
+82-2-776-3179
[email protected]
PrismCommunications
INTELLICENTER
+82-2-310-0400
[email protected]
www.intellicenter.co.kr
QrixNetworks
QRIXNET
+82-2-999-8855
[email protected]
www.qrix.com
RapiTel Inc.,
BBARNET
+82-2-561-3101
[email protected]
www.rapitel.co.kr
Reach Network Service Korea
NETPLUS
+82-2-550-3709
[email protected]
www.reach.co.kr
SAEROUNNET
SAEROUNNET
+82-2-2102-3345
[email protected]
www.saeroun.co.kr
Samsung Networks Inc.
SAMSUNGNETWORKS
+82-2-2191-3535
[email protected]
www.corp.unitel.co.kr/
SERVERBANK
HANNET
+82-2-829-3333
[email protected]
www.hdc.hannet.net
SK C&C Co., Ltd.
SK-NET
+82-2-2196-8254
[email protected]
www.sk-net.com
SKTelecom
SKSpeedNet
+82-2-2121-3457
[email protected]
www.sktelecom.com
SKTelecom
SYNCROAD
+82-080-200-0880
[email protected]
www.syncroad.com
SKTelink
SKTelink
+82-2-829-2968
[email protected]
www.sktelink.net
66
Commercial Network
Network Operater
Service Name
SuperNe
SUPERNET
Thrunet Co., Ltd (THRUNET)
Today and Tomorrow
Tomis Information & Telecom Corp
Tel
E-Mail
URL
+82-2-568-3003
[email protected]
www.supercdn.net
THRUNET
+82-1588-3488
[email protected]
www.thrunet.com
TTNe
+82-2-2646-8673
[email protected]
www.tt.co.kr
TOMISNET
+82-2-672-9000
[email protected]
www.tomis.co.kr
WEBURO
WEBURO
+82-61-284-4650
[email protected]
www.weburo.net
Whois
WHOISNET
+82-2)557-4259
[email protected]
www.whois.co.kr
Won Technology
GOODNLINE
+82-42-638-7600
[email protected]
www.goodn.com
3. List of Government Agencies and Other Agencies
APNIC: Asia Pacific Network information Center (http://apan.net)
CRERIS: Korea Education and Research Information Service (http://www.kmec.net)
DDC: Domain Dispute Committee (http://dispute.nic.or.kr)
EC: Engineering Committee (http://ec.nic.or.kr)
ECRC: Electronic Commerce Resource Center (http://www.ecrc.or.kr)
ETRI: Electronics and Telecommunications Research Institute (http://www.etri.re.kr)
GIA: Government Information Agency (http://www.allim.go.kr)
ICANN: Internet Corporation for Assigned and Numbers (http://www.icann.net)
ICC: Information Culture Center Korea (http://www.icc.or.kr)
IETF: Internet Engineering Task Force (http://www.ietf.org)
Internet Appliance Promotion Council (http://iapc.kait.or.kr)
KAIT: Korea Entertainment System Industry Association (http://www.kait.or.kr)
Kinternet: Korea Internet Corporations Association (http://www.kinternet.or.kr)
KINX: Korea Internet Neutral eXchange (http://www.kinx.net)
KIPA: Korea IT Industry Promotion Agency (http://www.kipa.or.kr)
KIPO: Korea Intellectual Property Office (http://www.kipo.go.kr)
KISA: Korea Information Security Agency (http://www.kisa.or.kr)
KISDI: Korea Information Society Development Institute (http://www.kisdi.re.kr)
KISTI: Korea Institute of Science and Technology Information (http://www.kisti.re.kr)
KCCT: Korea Chamber of Commerce & Industry (http://www.korcham.net)
KCS: Korea Customs Service (http://www.customs.go.kr)
Korea Fair Trade (http://www.ftc.go.kr)
Korea Institute for Industrial Economics & Trade (http://www.kiet.re.kr)
Korea Meterological Administration(http://www.kma.go.kr)
Korea National Railroad (http://www.korail.go.kr)
KRPA: Korea Radio Promotion Association (http://www.rapa.or.kr)
KRNIC: Korea Network Information Center (http://www.nic.or.kr)
MIC: Ministry of Information and Communication (http://www.mic.go.kr)
Ministry of Culture and Tourism (http://www.mct.go.kr)
Ministry of Education & Human Resources Development (http://www.moe.go.kr)
Ministry of Labor (http://www.molab.go.kr)
Ministry of Maritime Affairs and Fisheries (http://www.momf.go.kr)
Ministry of Patriots & Veterans Affairs (http://www.pvaa.go.kr)
MOCIE: Ministry of Commerce, Industry and Energy (http://www.mocie.go.kr)
MOGAHA: Ministry of Government Administration and Home Affairs (http://www.mogaha.go.kr)
National Tax Service (http://www.nts.go.kr)
NC: Name Committee (http://namecom.nic.or.kr)
NCA: National Computerization Agency (http://www.nca.or.kr)
NNC: Number & Name Committee (http://nnc.nic.or.kr)
PAC: Protocol and Address Committe (http://namecom.nic.or.kr)
Personal Data Protection Center (http://www.cyberprivacy.or.kr)
PICCA: Promissing Information & Communication Company Association (http://www.picca.or.kr)
PPS : Public Procurement Servic (http://www.pps.go.kr)
SPPO: The Supreme Public Prosecutor's Office (http://www.sppo.go.kr)
Supreme Court of Korea (http://www.scourt.go.kr)
TTA: Telecommunications Technology Association (http://www.tta.or.kr)
The Constitutional Court of Korea (http://www.ccourt.go.kr)
Appendix
67
2002 KOREA INTERNET WHITE PAPER
May 2002
Editor
Ministry of Information and Communication (MIC)
Director General
Chung, Kyung-won ([email protected])
Director
Kim, Joon-ho ([email protected])
Deputy Director
Dan, Hee-soo ([email protected])
Hong, Soon-hee ([email protected])
Vice President
Yoon, Byong-nam ([email protected])
Director
Lee, Yeong-ro ([email protected])
Senior Researcher
Kim, Yoo-jeong ([email protected])
Researcher
Park, Dong-hwa ([email protected])
Published by
Center for National Informatization
Department of Internet Policy Development
NCA Bldg, 77, Mugyo-Dong, Jung-Gu, Seoul, Korea, 100-170
t e l: +82-2-2131-0248
Informatization Planning Office
Internet Division
100, Sejong-Ro, Chongro-Ku, Seoul, Republic of KOREA, 110-777
t e l: +82-2-750-1247
http://www.mic.go.kr
Printed by
i will
t e l: +82-2-2166-5124
fax: +82-2-2166-5125
68
NCA Bldg, 77, Mugyo-Dong, Jung-Gu, Seoul, Korea, 100-170
100, Sejong-Ro, Chongro-Ku, Seoul, Republic of KOREA, 110-777
http://www.mic.go.kr

KOREA INTERNET WHITE PAPER

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