[SPECIAL REPORT]`U-Korea` envisions next stage of digital revolution

For the past four decades, Korean policymakers and companies have been focusing on expanding electronic communications nationwide to support a developing economy.

However, with the country`s wired and wireless penetration rates among the highest in the world, Korea`s information and communication technology sector now faces the challenges of keeping growth alive in a mature market.

"Korea`s info-tech sector has been focusing on efficiency and productivity, but we can now say that we are in front of a paradigm shift," said Chin Dae-je, minister of information and communication.

"The advancements in technology and expansion of broadband change the way people live and do business, approaching a level where people could stay connected anytime, anywhere and on any device. The boundaries between industries are becoming irreverent and this trend of digital convergence is generating new markets and products."

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Since 2003, the Korean government had been redesigning its national info-tech strategy, dubbing its new plan "IT839," designating next-generation mobile communication, digital television broadcasting, home-networking servers, system-on-a-chip solutions, embedded software, automotive communications devices, digital content and advanced robotics as the nine new growth engines in equipment.

For the info-tech service sector, eight new fields including portable internet, mobile digital television, home-networking, automotive communications, radio-frequency identification, third-generation mobile telephony, land-based digital television broadcasting and voice-over Internet protocol will be promoted as new revenue sources.

To provide the backbone for the new services, the government and industry will jointly develop advanced infrastructure such as the broadband convergence network (BcN), a massive Internet protocol providing nationwide connection at the speed of 50Mbps to 100Mbps, sensor-based computing networks and the next-generation Internet platform Internet protocol version 6 (IPv6).

The IT839 strategy is an essential part of the government`s roadmap plan to integrate information and communication technology infrastructure with urban development and build an environment where people can enjoy access to high-speed networks and advanced communication services anywhere and anytime through a ubiquitous computing network.

Through the comprehensive rebuilding project, dubbed "U-Korea," the government hopes to facilitate further economic growth and lay the foundation for the national initiative toward achieving $20,000 per capita income.

"U-Korea is what I would call a `national meta plan,` where the roles and realms of government, businesses and individuals expand in different ways and dimensions from what is now. Strengthening the relationship between the public and private sector, as with academia and industry, and building a communication structure that could add efficiency in planning and management will be critical in achieving what we envision through U-Korea," said Ha Won-gyu, from the Electronics and Telecommunications Research Institute.



BcN

The developing of broadband convergence network is seen as Korea`s most significant project so far in creating an integrated service environment that combines wired and wireless communication, video broadcasts and data transmission. The broadband convergence network is conceived as a massive Internet protocol where people can connect from a wide range of terminals from nearly everywhere, while allowing the overlapping of voice, video and data services and applications. It is designed to provide connection at the speeds of 50 Mbps to 100 Mbps, or 50 times faster than current broadband services, with nationwide coverage.

Industry watchers expect next-generation solutions such as Internet protocol version 6 (IPv6), third and fourth-generation mobile telephony, Internet protocol-based video broadcasting and portable Internet to be the killer applications for the new network.

The government hopes to generate around 8 trillion won ($7.7 billion) in private sector investment to develop the broadband convergence network`s infrastructure and applications this year. About 5.5 trillion won of the investment will come from the country`s major telecom operators - KT Corp., SK Telecom Co., Hanarotelecom Inc. and Dacom Corp. - through the trial services that will start during the first half of this year.

The remainder of the budget will be provided by land-based television broadcasters and cable companies planning to have a part in the high-speed network project.

The government will invest an additional 180 billion won to upgrade the network infrastructure at government agencies and state-run research labs in accordance with the project.

In August last year, the government picked three consortia, respectively led by KT, SK Telecom and Dacom, to conduct the broadband convergence network trial operations that are scheduled to run in 1,350 households in the cities of Seoul, Busan, Daegu, Gwangju and Daejeon through the end of this year, while attracting around 2 million users. Commercial services are expected to go online in 2006.

"The broadband convergence network is the core of our national info-tech strategy. By successfully integrating the broadband convergence network with advanced end-user applications, Korea will be at least five years ahead of other developed countries in information-based consumer services," said Seo Seok-jin, director of the Communication Ministry`s broadband convergence network division.

Radio frequency identification technology, or RFID, is also expected to have a fundamental impact on Korea`s info-tech sector and also enhance industrial productivity in the manufacturing and retail sectors. RFID allows people to monitor the movement of products through microchips embedded in commodities. Each chip, called a small tag, contains an identification number and product information, which is broadcast by radiowave to an electronic reader.

The technology is expected to improve profitability for manufacturers and retailers by improving operating efficiency and supply chain management. Retailers and suppliers are hopeful the technology will help reduce theft and counterfeiting. RFID solutions are also being developed for public sector use such as the military and hospitals.

Last year, the government announced plans to invest 162 billion won through 2010 to support the commercial development of RFID infrastructure and applications. The government expects the domestic market for RFID will grow to 4 trillion won by 2007 in equipment sales, while generating $760 million in exports.

The Ministry of Information announced a plan that runs through 2010 to develop RFID networks at government agencies to support the technological development. Under the project, in which the ministry will invest 3.5 billion won, the National Veterinary Research and Quarantine Service plans to attach RFID tags to imported beef products during the first half of this year, strengthening the monitoring systems and guarding against emergency situations such as bovine spongiform encephalopathy (mad cow disease) outbreaks. The Defense Ministry will use the technology to track the movement of munitions, while the Korea Airports Corp., an affiliate of Korean Airlines Co., plans to invest 700 million in applying RFID for freight control.

"It won`t be long before RFID becomes a defining infrastructure of the country`s manufacturing base. Interest in RFID is increasing here as companies continue to search for ways to improve productivity while reducing costs at the same time," said Kim Shin-bae, chief executive of Korea`s largest mobile-phone carrier SK Telecom Co. Kim also heads the Korea Association of RFID/USN (ubiquitous sensor network) that is joined by government agencies and 105 companies involved with telecommunications, software and consumer electronics.



Home network

Among the new info-tech service projects, home networking, which connects home appliances and other electronic devices through the Internet, could have the most expansive industrial impact among telecommunication service providers, consumer electronics manufacturers, television broadcasters and construction companies.

The government, which embarked on a five-year plan in 2003 to expand trial operations of home-networking services nationwide, invested more than 4.5 billion won to run the trial services in 1,300 households last year. The government generated an additional 28 billion won from the private sector to support the 500,000 households nationwide that currently use home-networking services on various levels. Industry watchers expect home-networking services to expand to 10 million households by 2007.

To expand the home-networking services, the government is supporting companies to develop integrated servers that can carry wired and wireless telecommunications and television broadcasts under a single system. Policymakers and companies also want to develop home-networking solutions that can serve as the main applications for the broadband convergence network and Internet protocol version 6.

In June last year, the governments of Korea, China and Japan reached an agreement on the joint development of home networking technology, moving ahead to promote standards for interoperability among home electronic devices.

The state-run Korea Home Network Forum, led by KT Corp. Executive Vice President Yoon Jong-lok, signed a memorandum of understanding with Japan`s Echonet (Energy Conservation & Homecare Network) Consortium and China`s IGRS (Intelligent Grouping & Resource Sharing) to share their advancements in home-networking technology and promote the developed standards internationally.

The Echonet Consortium is Japan`s industry standard for home-networking systems, where major electronic firms such as Matsushita Electronic Industrial Co., Hitachi, Ltd., Toshiba Corp. and Sharp Electronics Co. among others work together to develop key components in home appliances. IGRS is China`s industry standard for information-technology products and is joined by electronic and computing firms such as TCL, Lian Xiang Group and Konka.

The government hopes that the joint project could compete with the standards developed and promoted by the Digital Home Working Group (DHWG), currently the world`s leading industry standard for home networking. DHWG is backed by multinational high-tech firms such as Intel Corp., Microsoft Corp., Nokia, Sony Corp. and Samsung Electronics Co. among others.

"Through the agreement, we hope that the three countries could develop into world leaders in home-networking technology, unlike other mobile and information-technology sectors which rely heavily on foreign technologies," said Seok Ho-ik, director of the Communication Ministry`s information planning division.



U-City

On the U-Korea road map, the U-City Project is hoped to provide the framework to strengthen the role of information and communication technology in the planning and management of cities. In November last year, businesses and policy makers gathered to combine efforts for a national development project focused on integrating high-tech communication infrastructure to support the sustainable development of cities.

The objective of the group is to create environments in cities where residents can enjoy access to high-speed networks and advanced information services anywhere, anytime and on any device. The Ministry of Information and Communication and the Ministry of Construction and Transportation will join industry heavyweights that include Samsung Electronics, KT and LG CNS Co. among other companies for the project.

"The U-City Project will become the center of the government and private sectors` effort in sustaining growth for the country`s economy," said Soonchunhyang University professor Lee Geun-ho, who is among the main architects of the project.

"The matured information and communication sector is already seeing the trend of jobless growth. If we could link information and communication technology with construction and urban development activities, we will be able to increase the overall level of investment while luring more foreign companies to come here."

Regional governments have recently been laying out comprehensive plans to integrate advanced info-tech infrastructure in urban areas. Seoul has been pushing its Digital Media City project since 1998, which aims to develop the city`s western district of Sangam-dong as a research and development hub for the high-tech industry.

Providing a state-of-the-art network environment is also a part of Incheon`s intentions for New Songdo City, the next-generation city project scheduled for completion in 2014, while Jeju Island also has similar plans to develop as the country`s next high-tech boomtown.

Industry insiders believe the U-City Project could link the regional projects for balanced development and avoid overlapping investment, while solving the economical, technical and legislative barriers through interaction between the government and private sector.

Governments worldwide are increasingly adopting plans to combine their advancements in information technology with urban development. The European Union has a road map called Intelcity, which aims to designate six European cities and integrate them with a ubiquitous network by the end of 2010.

Malaysia plans to invest $1.7 billion to build info-tech hub cities across the nation by 2020 through its Multimedia Super Corridor project.

The Ministry of Information and Communication is planning to invest about 60 billion won in the U-City Project this year in its initial stage.

(thkim@heraldm.com)









By Kim Tong-hyung