2013 National Informatization White Paper

Republic of Korea
Contents
1. National Informatization for Achieving the Knowledge

Information Society 4
2. Performances and Challenges of Each Area

A. E-government 6
B. Mobile Communications Industry 7
C. Cyber Security 7
D. National Informatization Outlook and Issues 8
3. Achieving Digital Creative Korea for National Happiness

A. Informatization Promotion Framework 10
B. ICT Strategy Council and CIO Council 11
th
C. The 5 National Informatization Master Plan 12
4. Informatization Level
A. Networked Readiness Index 16
B. National Competitiveness Indices 17
5. E-government
A. E-government Strategy 19
B. Status of E-government Implementation 20
6. Life of Citizens
A. Information Usage 22
B. Using Internet Services 27
C. Internet Addiction and Digital Divide 32
7. Digital Economy
A. IT Usage by Businesses 37
B. IT Utilization Level 40
C. IT Utilization Development Stages 42
8. E-Commerce
A. Total E-Commerce Volume 45
B. E-Commerce Volume By Transaction Type 45
9. Informatization of Agriculture and Fishing Industries 49
10. SOC Informatization

A. Intelligent Transport System (ITS) 51
B. Policies for National Spatial Information 52
C. Smart Grid 53
11. Digital Convergence Infrastructure

A. Internet Infrastructure 54
B. Future Network 56
12. ICT Idustry

A. ICT Industry Exports and Imports 60
B. Convergence of IT and Other Industries and Commercialization of New
Technology Services 62
13. Information Security

A. Internet Incident Trend 66
B. Information Security Technology R&D 68
1. National Informatization for
Achieving the Knowledge
Information Society
Korea has worked on national informatization, aimed at achieving the knowledge information society. First,
it established key infrastructure in major areas such as administration, finance, education, research, and
national defense, and built system foundations such as the legal framework and national informatization
promotion fund. The technological infrastructure, added by system environment and economic foundation
served as the main drive for efficient informatization of the country.
Second, Korea focused on improving productivity by spreading the Internet access to the entire society -
efforts on building Korea Information Infrastructure, the project for constructing high-speed network in
Korea, and full-scale e-government implementation are some of the examples of contributions to
productivity gain. These efforts led to the achievement of the world’s top-level Internet speed and e-
government, while increasing opportunities for efficient application of ICT in public and private sectors.
Third, Korea planned to achieve sustainable growth and national development by facilitating new ICT access
by both public and private sectors in the areas of transport, logistics, safety, and environment. In this regard,
the human-friendly ‘ICT world’ will be realized through intelligent social environment, which will be
represented by life care robots, smart home cities, and cutting-edge infrastructure for everyday living.
Korea has achieved more than what was expected in spreading the broadband, building necessary
infrastructure, and economic development in related industries. 40 million smart phones, the level of
economic growth with the ICT share in GDP being 7.1%, and complete broadband penetration are major
results that prove Korea’s efforts in national informatization.
Diverse changes of ICT environment in 2013 made a turning point in Korea’s national informatization
strategy. The national informatization strategy of today, which is focused on ICT infrastructure, ICT industry,
and ICT use, is now about to make a shift toward a strategy focusing on smart infrastructure, smart industry,
and smart use with added mobile features. As it is now becoming the new imperative to upgrade the
positioning of Korea in terms of national informatization as an ICT powerhouse to that of smart
technologies, there is an increasing need for redirecting the paradigm of this era, following the
industrialization and informatization, to what we call ‘smartization’.
The changes in the new environment include innovation based on new technologies such as mobile, big data,
and cloud technologies, increased convergence, emergence of the hyper-connectivity environment where all
2013 National Informatization White Paper

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1. National Informatization for Achieving the Knowledge Information Society
things connect and interact with each other, and evolution to ICT services that are human-oriented and
intelligent.
Increasing innovation and convergence based on new technologies is displayed in diversification of

platforms and facilitation of software convergence. The share of ICT market involving mobile, cloud, social
media, and big data industries is forecasted to dramatically increase from 18% in 2010 to 80% in 2020.
Mobile platform competition for interconnectivity between mobile devices is continuing, and big data will
bring new economic impact in the areas of public administration, retail, manufacturing, marketing,
healthcare, and information and communications, as ‘the fourth managerial resource’.
The hyper-connectivity means an environment where all things and humans are always connected with each
other; according to Gartner, the number of population using the Internet will reach 5 billion, and the number
of devices connected to the Internet will be more than 100 billion by the year 2020. New added values will
be generated through convergence of the entire industries that are based on the hyper-connectivity
environment, further creating numerous opportunities in the society.
Intelligent ICT means the coming of the age of ‘Digital Sixth Sense’1), where smart devices use their sixth
sense to deliver what a user wants upon their own decisions, with the help of technological development in
the areas of context awareness, sensors, and artificial intelligence. If the initial policy motto, ‘late in
industrialization but leading in informatization’, is still valid, then Korea’s strategy for the smart society must
be ‘enabling all to enjoy benefits from leading informatization’. In this context, the point when efforts begin
for achieving the true ‘smart advanced country’ within the government, market, and civil society is the year
2013, the inauguration year of the new government.
In the meanwhile, activities for national informatization have so far changed constantly, toward finding
solutions to political, administrative, economic, social, and cultural issues as well as environmental changes,
and facilitating growth. Providing support to projects, which incorporated capacities of the entire government
ministries so that ICT could position itself as the infrastructure reaching the entire society, helped such
activities grow continuously. At the same time, systematic connection between the National Informatization
Master Plan and action plans of each ministry allowed meeting the goal in such a short period of time.
However, in 2013, the turning point, we are challenged to develop new strategies that reflect problems raised
in the process of meeting goals in the past, along with the issue of stagnated growth. Issues raised in the ICT
industry, such as facilitating start-ups, solving youth unemployment, increasing burden of household
communication expenses, and still unstable ICT security environment that seems to be far from being solved,
have become the issues that need to be tackled more actively from policy viewpoints. It is time that we need
to offer new policy values that are able to facilitate future performance, just as the past decade has achieved.
1) Paul Jacobs, Qualcomm CEO, Keynote Speech in CES 2013.
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2. Performances and Challenges of
Each Area
A. E-government
The e-government services that had been worked on since 2001 achieved the goal of innovating the
administration and improving civil services. With the introduction of Web 2.0 in 2005, the principles of ICT
service development - participation, sharing, and openness - had been reflected in the updated government
operation framework, Gov 2.0. After that, in 2012, the newly proposed framework, Gov 3.0 came to take the
government service values to the next level - openness, sharing, communication, and collaboration.
In terms of policies, the ‘Electronic Government Act’ was enacted in 2001, which served as the legal ground
for implementing 11 e-government initiatives as the national project. For five years from 2003, efforts were
made, focusing on and improving e-government projects, and in 2011, the ‘Plan for Smart Government’ was
established as the main policy for solving current social issues and ensuring citizen happiness.
In July 2013, the Korean government announced the ‘Gov 3.0 Master Plan’, providing a new paradigm for
government operation aimed to achieve a citizen-oriented, transparent and capable government that
communicates with the citizens. Also by redefining the government as one that provides services as platform,
information sharing, information disclosure, and collaboration (between ministries and citizens) have
emerged as key tasks of Gov 3.0.
As for the economic impact, e-government exports have reached USD 340.32 million, which is a 44%
increase from 2011 (USD 235.66 million). The e-government export volume has been rapidly increasing,
starting from only USD 100,000 in 2002, to USD 150 million in 2010, to USD 240 million in 2011, finally
reaching USD 340 million in 2012. This can be evaluated as the result from improved status of Korea’s e-
government in the world, aggressive marketing of ICT businesses toward overseas markets, and efforts from
the government to increase exports(refer to Table 1).
E-government exports in 2012 consist of more diversified items including not only the long-term trusted
procurement and customs but also government administrative network, electronic resident card, transport,
and disaster management. In addition, the countries and regions these items are exported to is also expanding
from mostly Southeast Asia (59.4% in 2011) to Africa (31%), Southwest Asia (28%), Southeast Asia (19%),
Latin America (11%), Central Asia (8%), and Middle East (3%) in 2012.
Table 1 E-government Exports

(x USD 10,000)
Total 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
87,318 10 10 5 85 4,350 982 2,732 6,670 14,876 23,566 34,032

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Another characteristic of the e-government exports is a sharp increase in winning contracts for projects
funded by overseas governments or international organizations, which are generally put under keen
competition among multi-national businesses, and this is due to the improved global competitiveness of ICT
businesses in Korea. Some of the exports include the e-resident card project in Afghanistan (USD 45
million), government administrative network project of Mali MPNT (USD 35.7 million), e-customs system
project in Tanzania (USD 19.61 million), and airport system project in Libya (USD 20 million).
B. Mobile Communications Industry

For mobile communications industry, major policies include increasing use of the mobile network,
establishing schemes to strategically secure radio frequency in preparation for the age of mobile broadband,
and reducing burden of household communication expenses.
First of all, in order to prepare for the rapidly increasing amount of wireless data traffic every year, Ministry
of Science, ICT and Future Planning (MSIP) is building 1,000 new public Wi-Fi networks in major public
areas in 2013 as part of its efforts to establish 2,000 public Wi-Fi networks altogether, including the existing
ones.
Such public Wi-Fi networks help achieve user convenience and service quality, as well as use as means for
publicizing policies. Following the Wi-Fi network construction, the Korean government plans to establish a
subscriber-oriented fixed mobile convergence soft network infrastructure that incorporates 4G, 5G, Future
Internet, and Internet of Things, by supporting standardization of ultra-wideband transmission technologies
that offer the speed 40 times faster than the ones in 2012 (25 mbps/user) and finding economical and
efficient measures for improvement.
As the communication expenses are laying a burden on households, various efforts are being made to guide
lowering of the prices through facilitated service competition, abolishment of mobile communication service
subscription fees, and user empowerment on the right of choice.
C. Cyber Security
International cyber terrorism, becoming more intelligent with technological development, is not only
bringing massive damage on individuals and businesses but also emerging as a threat to national safety.
According to a Semantec survey in 2011, the amount of economic loss throughout the world caused by cyber
terrorist attacks was USD 388 billion, and the number of victims, 431 million - this means that 14 persons
per second, or 1 million persons on a daily average are receiving cyber damage. In order to respond to cyber
threats, the Korean government incorporated, in the next-generation e-government plan, efforts to prepare for
cyber threats that are becoming ever more intelligent and large-scaled, and establish e-government
infrastructure for safe ICT services.
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The number of cyber crimes in Korea was 33,289 in 2001, and it increased by 351% to 116,961 in 2011. The
number of arrests also increased by 403%, from 22,693 in 2001 to 91,496 in 2011. As a result of stronger
enforcement by the police, the number of cyber crimes, which had continued to rapidly increase, is showing
a slight decrease since 2010. For timely response to cyber crimes, cyber crime investigation teams are
established in district police agencies throughout the country, and cyber investigation task forces are installed
in 234 police offices for responding to the most common types of cyber crimes.
In addition, more measures are constantly developed, including introduction of special cyber employment
scheme for inviting private-sector IT experts to join investigations, 24/7 telephone consulting on cyber
crimes and Internet report-filing system, and global cooperation for responding to international cyber crimes.
For timely and effective enforcement, the police is carrying out concentrated investigations by season,
targeting cyber violence, pornography, shopping mall frauds, mobile spam, etc.
D. National Informatization Outlook and Issues

In terms of technological aspects, the global economy and industry paradigm is led by the ICT ecosystem, in
which contents, platforms, networks, and devices (CPND) are closely connected together. The US-focused
CPND ecosystem, which had been leading the global ICT economy and industry with coexisting and open
platform strategies of Apple and Google, is now being reorganized into a new ecosystem due to the impact of
the Chinese market, which is expanding domestic and overseas markets through the government’s strong
ICT consumption policies.
First, ICT changes will be for contributing to improvement of human capacities in physical, emotional, and
cognitive areas through development focused on wearable technology. Technologies regarding 3D bio
printing, brain-computer interface (BCI), voice translation, and gesture control will be even more facilitated.
Second, using technologies like holograms, autonomous vehicles, mobile robots, and remote assistance
(virtual assistants), high-risk or repetitive tasks can be processed instantly, leading to potential productivity
gain through machine replacing humans.
Third, by combining machine’s productivity and speed with humans’ emotional intelligence and problem-
solving capability, work efficiency can be maximized based on collaboration between humans and machine.
For this, technologies like autonomous vehicles, mobile robots, NLQA(natural language question
answering), and remote assistance are used.
Fourth, more values can be provided within the context of human emotions and situations enabled by
interaction based upon context awareness. Such technologies that are used to improve machine’s
understanding of humans and environment include affective computing2), biochips, 3D scanners, location-
based intelligence, voice recognition, etc.

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Fifth, big data, analytics, and cognitive computing will enable decision-making support, automation, and
machine cognition and intelligence, further raising our expectation for ‘smartization’ of humans and
machine. However, establishing a data business ecosystem desperately requires fostering of data scientists
who are aware of the demand for data and the values of using them and who have the capacity to analyze and
use data in the field. There are only 100 or more big data specialists in Korea, and it is pointed out that we
will need 14,000 specialists by 2017.3)
In terms of social aspects, the future information society will first need proactive response and solution to
social issues in the areas of disasters, welfare, education, etc. Not only risk management against natural
disasters but also risk detection, information delivery, and provision of countermeasures when an incident
breaks out such as hacking or privacy infringement must be prompt within the network of citizens.
Moreover, measures should be sought for by considering digital divide and smart divide in order to minimize
the number of people who are disadvantaged from using smart technologies and receiving benefits from
them.
Second, the need for creating added-value by applying national data to the entire society will increase even
more. In particular, there will be higher demand in the society for seamless interaction between online and
offline activities through facilitated channels for policy engagement, which gather people’s collective
intelligence, which is prevalent in the smart society.
Also, as the government’s activeness in information disclosure and sharing is still insufficient, creating
standardized government information, information sharing based on open administration, and increased
coverage of public information that can be used by the private sector by each security level will become
more important policy issues for the future smart society.
Major countries like the United States and the United Kingdom are providing support to establish innovative
service businesses through user-oriented public data connection or use and platform improvement. They are
also facilitating global measures for creating values based on public data. As for Korea, Gov 3.0 has emerged
as a government-wide innovation strategy, which is aimed at creating added values and jobs through
disclosing, opening, and using public data.4)
Third, concentrated support should be provided for exploring new ICT-based businesses and facilitating
competitive SMEs or venture businesses, by tackling current institutional issues such as various regulations
and dispersed support policies.5) In other words, the need for facilitating ICT startups and economic
contribution will further grow with unconstrained use of ICT.
2) Computing technology that is related to or developed by emotions or other emotional phenomena, or that has intentioned impact on emotions.
3) Samsung Economic Research Institute, 2012. 5.
4) In Korea, public administrative institutions are providing 2,260 types of data for disclosure (view only) via 2,194 websites, which does not meet the level for use in
service creation.
5) As of 2011, among the world's top 250 ICT businesses, US has 82, Japan 49, and Taiwan 18, whereas Korea has only 5.
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3. Achieving Digital Creative Korea
for National Happiness
A. Informatization Promotion Framework
It has been debated by the new government upon its inauguration in 2013 that it was a wrong decision to
deconcentrate the integrative IT policy functions of Ministry of Information and Communication to multiple
ministries during the government restructuring back in 2008. In this regard, discussions have continued at the
end of President Lee Myung-bak administration as to which ministry should be selected as the IT policy
control tower taking full responsibilities, focusing on IT industry facilitation, technology development, and
communications infrastructure as the main tasks of the new administration. As the result, the new
government came to establish ‘Ministry of Science, ICT and Future Planning (MSIP) that manages
government operations related to ICT. MSIP incorporates not only science and technology and ICT, but also
industry-academic collaboration for R&D (Ministry of Education), and Korea Post (Ministry of Knowledge
Economy) as the key ministry for developing future growth engines and creating jobs in the new
government. Internally, it has two vice-ministers - one for science and technology policies and R&D, and the
other for ICT - the second Vice Minister takes care of Korea Communications Commission’s convergence of
broadcasting and communications, Ministry of Public Administration and Security’s national
informatization, Ministry of Culture, Sports, and Tourism’s digital contents, and Ministry of Knowledge
Economy’s software promotion (refer to Figure 1).
Figure 1 ICT Functions Transferred to MSIP
Ministry of Science, ICT, and Future Planning

(Vice Minister II)
Ministry of Public
Ministry of Knowledge
Administration and
Korea Communications Economy Ministry of Culture,
Security (→Ministry of
Commission (→Ministry of Trade, Sports, and Tourism
Security and Public
Industry and Energy)
Administration)
�Convergence and �National �Digital contents

promotion of informatization, �ICT industry, post,
promotion,
broadcasting and information security, postal money and
broadcasting
communications, and and information transfer, R&D
advertising
radio regulation culture

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In order to meet the goal of government restructuring, national informatization promotion framework came
to face another set of changes. The ‘President’s Council on Informatization Strategies’ which had been based
on the ‘Framework Act on National Informatization’ will be removed and ‘ICT Strategy Council (tentative)’
will be established with the enactment of the ‘Special Act on ICT Promotion and Convergence Facilitation’
(hereinafter called “ICT Special Act”)6). The ‘CIO Council’, which was established based on the ‘Framework
Act on National Informatization’ will still remain part of the framework for implementing national
informatization.
B. ICT Strategy Council and CIO Council

In order to deliberate and decide on policies regarding ICT promotion and convergence facilitation, the ICT
Strategy Council (tentative, hereinafter called “Strategy Council”) is to be established under the Prime
Minister, consisting of 25 members at most, including one chairman and one advisor, whose roles will be
taken respectively by the Prime Minister and the Minister of Science, ICT and Future Planning. The
members will be heads of central administrative institutions as defined by the Presidential decree and the
private sector experts who are appointed by the Prime Minister.
The Strategy Council will deliberate and decide upon the master plan for ICT promotion and convergence
facilitation, which is established every three years. It will also deliberate on the analysis, review, and
evaluation of performances from the master plan and action plans for ICT promotion and convergence
facilitation, which are established by heads of the central administrative institutions each year to elaborate the
master plan. The Strategy Council can also demand heads of the central administrative institutions to take
actions to improve laws for ICT promotion and convergence facilitation, recommend priorities in related
R&D projects, coordinate policy issues and businesses between related central administrative institutions,
and deliberate on the progress of national informatization based on the ‘Framework Act on National
Informatization’.
Figure 2 ICT Strategy Council
For streamlined businesses of the Strategy
Council, Working Committee for ICT Chairman: Prime Minister
Members: related ministers and
ICT Strategy Council
Facilitation (hereinafter called “Facilitation private experts
Advisor: Minister of MSIP
Working Committee”) will be established
within the Council. The Facilitation Working Working Committee Chairman, members, and other
matters regarding composition yet
Committee will receive complaints or for ICT Facilitation to be decided
suggestions from groups or businesses

involved in ICT and seek for measures for Professional Professional Professional
improvement for ICT promotion and Committee Committee Committee
convergence facilitation. The Facilitation
6) to be enforced from February 2014
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Working Committee can accommodate dispatched officials appointed by the heads of related central
administrative institutions, public agencies, or other related organizations and groups, when necessary for
facilitated business process. To support the Facilitation Working Committee, professional committees can be
also installed, consisting of experts in technological, legal, and other areas of profession. The professional
committees will include the areas of planning and coordination, ICT convergence, software, digital contents,
and information security (refer to Figure 2).
The ‘Council on Informatization Strategy’, which was organized based upon the ‘Framework Act on
National Informatization’, was abolished through government reorganization, and the CIO Council is now
the only organization through which multiple ministries can collaborate and discuss on issues regarding ICT.
Both ministers of MSIP and MOSPA are co-chairmen of the CIO Council, and its advisors are high-level
officials who take the responsibility of informatization affairs in both MSIP and MOSPA. CIOs of
government institutions are mostly deputy ministers and director generals, who carry out planning and
coordinating affairs in their organizations. In central administrative institutions, deputy ministers for planning
and coordination in ministerial-level institutions, and directors of planning and management or high-level
officials who are in charge of informatization affairs in vice ministerial-level institutions are taking the role
of CIO. In local governments, deputy ministers or director-generals for planning and coordination, who
coordinate policies and plans and manage spendings, laws, and administrative affairs, are working as CIOs.
The CIO Council is currently under operation with the aim of coordinating ICT projects among ministries
and discuss on the measures for information connection and sharing, therefore, a working-level meeting of
all officials taking charge in informatization in the entire ministries. It is also a substantive organization for
mutual collaboration and coordination as well as sharing of experiences and information in carrying out
activities for inter-ministerial informatization projects and information resource management. However, the
share of full-time Council members, who can perform roles and functions faithfully is only 30%, whereas the
share of members who hold additional positions is 70%, which is pointed out as the limitation of facilitating
the CIO system.
C. The 5th National Informatization Master Plan

As the new paradigm for national informatization shifts from ‘ICT-oriented growth and expansion’ to ‘ICT
application and utilization in the entire society’, there is an increasing need for building a foundation for
future development of the country based on the accumulated IT assets. Making of Korea’s national
informatization plans has progressed from establishment of the Plan for Achieving the Creative Economy
and the Gov 3.0 Master Plan in June 2013, to Plan for Contents Industry Promotion and Comprehensive
Measures for Information Security Industry Development in July, Committee for Facilitating Smart Media
Ecosystem in September, Plan for Creative Vitamins Project and Smart Work Portal System Service in
November, and finally to the 5th National Informatization Master Plan at the end of the year 2013.
The Plan for Achieving the Creative Economy sets out creating jobs, entering the global market at full-scale,

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and achieving a creativity-oriented society as the goals for ultimately establishing the creative ecosystem. At
the same time, the Creative Vitamins Project introduces the objective of revitalizing science and technology
along with ICT as a means to develop growth engines for pioneering new industries and markets.
Measures for promoting the contents industry in the industrial sector and facilitating the smart media
ecosystem in the media sector will enable co-development of contents and media in a stable and advanced
ecosystem, and the Smart Work Portal System will provide a new foundation for economic development. In
order to provide a more stable environment, the Comprehensive Measures for Information Security Industry
Development were established, adding to the efforts to establish an ICT environment, which citizens can rely
upon and use conveniently.
Also by establishing the Gov 3.0 Master Plan for service development in the public sector, measures have
been provided to enhance government services as well as citizen satisfaction and consolidate global
achievements that have been accumulated so far.
Figure 3 ICT Functions Transferred to MSIP
Vision Achieving a digital creative Korea for citizens’ happiness
Digital
Good and Environment
Objectives Dynamic
Worriless Allowing
Economy
Citizen Life Co-existence
in Trust
4 Strategie Creative Economy Optimized Society via Renewed Human Enhanced ICT
ICT Capacity Infrastructure
Leading creative Improve infrastructure

Creative use of ICT by Improve creative
economy through for digital creative
the society capacity of citizens
informatization Korea
-Rearing new industry -Achieve intelligent -Improve future- -Establish intelligent

that is based on and customized oriented ICT capacity future network
national data administration for -Maintain healthy -Establish foundation
-Create demand citizens Internet culture for cyber safety
through new -Ensure healthy -Achieve -Improve system for
15 Tasks citizen life via ICT
technology expansion indiscriminate national information
-Strengthen capacity -Create prosperous information welfare resources
of ICT-based creative and intelligent living
businesses environment
-Establish foundation -Establish ICT-based
for new Internet national and social
security network
business startups
-Make new SOC
intelligent in a
sustainable way
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The 4th National Informatization Master Plan of 2008~2012 had the vision of ‘achieving an advanced
knowledge information society based on creativity and trust’. The following 5th National Informatization
Master Plan (2013~2017), established in 2013, offers smart infrastructure and IT-led creative economy as the
key values, in addition to the ones from establishing the national infrastructure, which had been implemented
through the 1st to 3rd Master Plans, and achieving the knowledge information society as implemented through
the 4th Master Plan.
The vision of the 5th National Informatization Master Plan is ‘achieving a digital creative Korea for citizens’
happiness’. Three objectives to realize the vision are dynamic economy, good and worriless citizen life, and
digital environment that allows co-existence in trust. ‘Four ICT CORE’ strategies for achieving the ‘digital
creative Korea’ include Creative Economy, Optimized Society via ICT, Renewed Human Capacity, and
Enhanced ICT Infrastructure (refer to Figure 3).

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The global informatization indices of 2012, published by major international organizations, include the
World Economic Forum(WEF)’s ‘Global Competitiveness Index (Technological Readiness)’ (September
2012) and ‘Networked Readiness Index’ (April 2012), and International Institute for Management
Development(IMD)’s ‘World Competitiveness Scoreboard (Technological Infrastructure)’.
United Nation(UN)’s ‘E-government Development Index’ and ‘E-participation Index’, both of which are
published on a biennial basis, started carrying out online evaluations of websites of each country in 2011 for
2012 evaluation. International Telecommunication Union(ITU)’s ‘ICT Development Index’, which had been
published in March every year, was delayed in 2012 and published in October.
The indices published in the second half of 2011 and the first half of 2012 show that Korea’s ranking in
WEF’s Networked Readiness Index fell from the previous year, but its rankings in other indices went up. In
particular, Korea ranked the top for two consecutive surveys in UN ‘E-government Development Index’ and
Table 2 Korea’s Rankings in Global Indices
[Organization] Korea's Rank(No. of Countries Surveyed)

Index Objective
2006 2007 2008 2009 2010 2011 2012
[UN] 6 1 1
E-government Measures capacity and will in using e-Government - - - -
Development Index for ICT-based national development (192) (192) (193)
[UN] Measures level of online participation of citizens in 2 1 1

E-Participation Index - - - -
decision-making for public policies (192) (192) (193)
[ITU] Measures development level of information society 2 3 1

- - - -
ICT Development Index and information divide in each country (154) (159) (155)
[WEF] Measures level of ICT utilization for economic 14 19 9 11 15 10 12
Networked Readiness development and competitiveness (115) (122) (127) (134) (133) (138) (142)
Index
[WEF]
Global Competitiveness 12 7 13 15 19 18
Measures competitiveness in the area of technology -
Index (technological (125) (131) (134) (133) (139) (144)
readiness pillar)
[IMD]
World Competitiveness 6 6 14 14 18 14 14
Scoreboard Measures competitiveness in the area of ICT
(53) (55) (55) (57) (58) (59) (59)
(technological
infrastructure)
Source: 1) ITU: International Telecommunication Union, a specialized agency of the United Nations that is responsible for ICT issues
2) WEF: World Economic Forum, also called Davos Forum
3) IMD: International Institute for management Development, a business school located in Geneva, Switzerland
4) EIU: The Economist Intelligence Unit, consulting body of the Economist group
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‘E-participation Index’ of both 2010 and 2012. In addition, it also ranked the top in ITU’s ‘ICT Development
Index’ in 2012, after ranking in the second place in the first survey in 2009 (refer to Table 2).
A. Networked Readiness Index

The Networked Readiness Index is an index developed by the World Economic Forum (WEF), which
measures the level of ICT use in each country for developing economy and improving competitiveness.
Compared to 2011, Korea fell two notches down to 12th among 142 countries in 2012, now being outside
top 10.
As for the subindices, Korea’s rankings dropped in the Political and Regulatory Environment, while the
pillars of Market and Infrastructure Environments were deleted and Business and Innovation Environment
added. In terms of Readiness subindex, in which Korea fell seven notches from the previous year, the pillars
of Individual Readiness, Business Readiness, and Government Readiness were all deleted, and instead,
Infrastructure and Digital Content, Affordability, and Skills were added. Korea also fell one notch in Usage.
The Impact subindex is new, adding pillars of Economic and Social Impacts (refer to Table 3).
Table 3 Korea’s Ranking in Subindices of Networked Readiness Index
Evaluation Pillars
Ranking Ranking
Subindex
2012 2011 Comment Pillar
2012 2011 Comment
Average 12th 10th -2�
Market Environment - 53rd deleted
rd
Political and Regulatory Environment 43 41st -2�
Environment 35th 27th -8�
Infrastructure Environment - 15th deleted
Business and Innovation Environment 15th - added
th
Individual Readiness - 19 deleted
Business Readiness - 16th deleted
Government Readiness - 22nd deleted
Readiness 24th 17th -7�
Infrastructure and Digital Content 18th - added
th
Affordability 70 - added
Skills 27th - added
Individual Usage 2nd 4th +2�
Usage 2nd 1st -1� Business Usage 12th 2nd -10�
Government Usage 1st 1st -
th
Economic Impact 12 - added
Impact 4th - added
Social Impact 1st - added
In detail, Korea was in top 5 in terms of ‘Tertiary education gross enrollment rate’ (1st), ‘Impact of ICT on
new services and products’ (2nd), ‘Extent of business Internet use’ (2nd), and Broadband Internet subscriptions
per 100 inhabitants’ (4th); however, Korea was found weak in ‘Effectiveness of law-making bodies’ (123rd),

16
‘Venture capital availability’ (100th), ‘Mobile cellular tariffs’ (84th), ‘International Internet bandwidth’ (66th),
and ‘Mobile phone subscriptions per 100 inhabitants’ (62nd).
In particular, the low level of mobile phone subscription is due to the special environment of mobile
communications market in Korea, where there are only few cases of subscribing to pre-paid mobile phone
unlike other countries compared. Therefore, strictly speaking, this can be considered as an indicator lacking
representability for one that compares pure number of subscriptions of each country (refer to Table 4).
Table 4 Korea’s Strengths and Weaknesses in Indicators of Networked Readiness Index
Subindex Strengths Weaknesses

• Intellectual property protection (43rd� 46th)
• No. of procedures to start a business
Environment • No. of days to enforce a contract (3rd�3rd) (76th�28th)
(27�35) • Tertiary education gross enrollment rate • Effectiveness of law-making bodies
(1st�1st) (131st�123rd)
• Internet & telephony competition (1st� 79th)
• Mobile cellular tariffs (83rd� 84th)

Readiness • Fixed broadband Internet tariffs (67th�68th)
(17�24) • Quality of math & science education
(18th�12th)
• Broadband Internet subscriptions (5th�4th)

• Extent of business Internet use (3rd�2nd)
Usage • Impact of ICT on new services and products
(1�2) (3rd� 2nd) • Mobile phone subscriptions (60th� 62nd)
• Government Online Service Index (3rd�1st)
• E-Participation Index (1st�1st)
Note: 1. Indicators in which Korea is strong are those where Korea is in top 5; indicators in which Korea is weak are those where Korea is ranking 50th or lower.
2. ( ) shows ranking changes from 2011→2012
B. National Competitiveness Indices
WEF’s Global Competitiveness Index (Technological Readiness Pillar)
In general, WEF’s Global Competitive- Table 5

Korea's Rankings in Technological Readiness Pillar of
WEF Global Competitiveness Index
ness Index is published six months
before Networked Readiness Index, and Ranking
Pillar Indicator
(2011�2012)
indicators related to ICT and general
-Availability of latest technologies 24�26
market environment are also applied to -Firm-level technology absorption 8�11
Technological -FDI and technology transfer
measuring the Networked Readiness 86�83
Readiness -Individuals using Internet 10�11
Index of next year. While IMD’s World (18�18) -International Internet bandwidth 67
Competitiveness Scoreboard measures -Fixed broadband Internet subscription 4�5
business competitiveness to evaluate Note: Indicators that are directly related to the ICT sector are in italics.
17
national competitiveness, WEF’s measurement focuses on national productivity.
In 2012, Korea is remaining in the 18th place under the pillar of Technological Readiness in WEF’s Global
Competitiveness Index since the previous year. Korea’s rankings in ICT indicators are 11th in ‘Individual
using Internet’, climbing a notch from the previous year, and 67th in ‘International Internet bandwidth’, which
is a low mark gained from relatively abundant Internet contents and being a non-English-speaking country.
However, the ranking in ‘Fixed broadband Internet subscription’ is 5th, up a notch from the previous year,
proving that Korea is still one of the world’s leading countries in this area (refer to Table 5).
IMD’s World Competitiveness Scoreboard (Technological Infrastructure)
Unlike WEF, IMD is measuring national competitiveness based on business competitiveness, and its
indicators, published in June 2012, showed Korea’s technological infrastructure ranking 14th out of 59
countries, which is about the same level as the previous year.
One of the higher rankings of Korea, as Korea’s Strengths and Weaknesses in World
Table 6
IMD has evaluated, was 4 th in Competitiveness Indicators
‘Communications technology’, which
Sub-factor Strengths Weaknesses
climbed five notches from the previous
year. On the other hand, indicators like Technological
•Qualified engineers
(41st� 48th)
‘Internet bandwidth speed’ (42nd), and Infrastructure •Fixed telephone lines per
1,000 inhabitants (9th�4th) •Technological
(14�14)
‘Mobile telephone subscribers per 1,000 cooperation (31st�37th)
inhabitants’ (40 th) were still lagging Note: 1. Strengths and weaknesses are analyzed by IMD
2. ( ) shows changes from 2011� 2012
behind (refer to Table 6).

18
5. E-government
5. E-government
A. E-government Strategy
President Park Geun-hye administration, which took off in February 2013, set Gov 3.0 as the national goal
and introduced the vision of breaking down barriers between ministries using e-government, establishing a
transparent government that informs citizens of all affairs of the government by disclosing and opening up
administrative data to the public, achieving a capable government that leads the future through knowledge
creation, accumulation, and sharing, and based upon this, achieving a service government that provides
administrative services that are customized to individual citizens.
Gov 3.0, as introduced by President Park’s administration, is a new government operational paradigm that
proactively discloses and shares public data, communicates with the citizens, and facilitates collaboration
without borders between ministries. Upon the start of the new government, President Park’s administration
has made full-scale efforts to visualize ‘Gov 3.0’ through providing customized services, facilitating
institutional collaboration, and utilizing big data. For this, the government made a pre-announcement of the
amendment of E-Government Act, which will lead to operation of a public service registration system for
user-customized services, further allowing civil applicants to receive a comprehensive range of public
information only by one-time application. Regulations will be developed, ensuring civil applicants to view
life information such as their health and assets via ‘Minwon24’ without having to visit each government
office, along with other measures for stepping up inter-ministerial collaboration. These measures include
interconnecting and integrating systems of each institution and breaking down barriers between institutions
for enhanced administrative efficiency and integrated and streamlined provision of civil services. In addition,
the foundation for scientific administration for big data use has been also established.
Led by Ministry of Security and Public Administration, which had undergone a name change from Ministry
of Public Administration and Security during the government reorganization, legal grounds for a common
platform for data sharing has been established, which will allow the public data collected via the platform to
be shared by each institution. In order to improve the e-government security level, the government decided to
expand the coverage of institutions that must establish electronic civil service security measures of their own
further to other public institutions, and step up implementation of security measures for software
development and operation. In addition, it also plans to facilitate the audit market, which might be
intimidated by the introduction of PMOs, by holding video conferences for mitigating regulations and
enhancing business efficiency, and expand the coverage of institutions that fall under the group for integrated
management of information resources from central administrative institutions to other public institutions.
Such revisions to the Electronic Government Act have been recognized as the key means for successful Gov
3.0, and many has come to expect that the new government will become a capable government, trusted by
19
the citizens, and bringing citizens’ happiness to the next level.
Administrative Informatization Projects for Achieving Gov 3.0
A significant part of tasks for Gov 3.0 is about provision of government services via ICT. Therefore, most of
the Gov 3.0 tasks are directly or indirectly related to informatization or e-government. In this regard, each
ministry is concentrating upon Gov 3.0 with its capacities in implementing e-government and administrative
informatization.
The number of administrative informatization projects to be carried out by both the central and local
government institutions in 2013 is 6,430 in total, and the allocated budget is KRW 3.914 trillion. Central
administrative institutions invested KRW 2.9977 trillion to 730 projects, while local government institutions
invested KRW 916.3 billion to 5,700 projects. In terms of the project type, planning and development or
construction projects is 1,556 in number with the allocated budget of KRW 1.7727 trillion, accounting for
45.3% of the total informatization budget, and consisting of 0.4% planning projects and 44.9% development
or construction projects.
Of these projects, there are 75 projects that are related to Gov 3.0 with the budget of KRW 178.1 billion,
taking up 4.6% of the total informatization budget and 13.7% of planning and development or construction
projects. Among the projects related to Gov 3.0, the share of projects for “establishing a collaboration
framework between the private sector and ministries” is 50%, while the share of projects for “public data
disclosure and use” is 25%, illustrating that the focus is on provision of customized government services and
data disclosure.
B. Status of E-government Implementation

Thanks to consistent efforts in UN E-Government Development Index
Table 7
developing e-government and - Online Service Development of Korea
implementing national informatization, Stage Stage 1 Stage 2 Stage 3 Stage 4
Achievement
Korea has become a leading e- Year (Emerging) (Emerging) (Transactional) (Connected)
government country, which United 2012 100% 79% 92% 87% 87%
Nations (UN) has evaluated as the top 2010 97% 91% 66% 62% 78%
2008 100% 93% 50% 59% 73%
country in both E-government
Development Index and E-Participation Source: UN, e-Government Survey 2012 ~ 2008
Index . In E-government Development

7)
Index8), which measures e-government levels of 190 countries worldwide, Korea leapfrogged from 15th place
7) Upon recognizing e-government as an important tool for public reform, UN has published the E-Government Development Index since 2001 by measuring
e-government levels of member countries. Since 2003, E-Participation Index has been added to enhance transparency of government businesses and services and
improve democracy, ultimately to facilitate e-government development through increased citizen participation via electronic means.
8) Former E-Government Readiness Index the index name changed in 2010.

20
5. E-government
in 2001 to the top in 2010, and in E- UN E-Participation Index

Table 8
Participation Index, it was ranked the top - Achievement of Korea by Subindex
for both 2010 and 2012. In the area of Subindex E-decision
E-Information E-consultation Total
online services, Korea has achieved 87% Year making
of services online, also reaching 87% of 2010 87.50% 78.79% 75.00% 78.95%
‘Connected’ stage, the top level of e- 2012 75% 78% 100% 81%
government development as introduced Source: UN, e-Government Survey 2010, 2012.
by UN (refer to Table 7, 8).
In addition, Korea’s informatization level has not only been globally acknowledged as it ranked the top for
three consecutive years in ITU’s Digital Opportunity Index, but the results of Korea’s e-government services
have been selected as the best practices, with the excellence also being acknowledged by the world. For
example, with the e-Customs system called UNI-PASS that has completed an online export and import
system for the first time in the world, Korea Customs Service won the WCO (World Customs Organization)
Trophy for intellectual property right protection with the fastest customs system among 169 member
countries. Korea Online E-procurement System (KONEPS) is showing splendid achievements by winning
the UN Public Service Award (PSA), being selected by OECD as one of the best cases for improving
transparency, and winning the ‘Global IT Excellence Award’ from World Congress on Information
Technology (WCIT). The demand for electronic procurement from developing countries is also increasing
constantly. In addition, results from e-government development efforts are being visualized in many other
areas - the Internet tax service called Home Tax Service was introduced as one of the best online tax
administration models by OECD; and the ‘e-People’ website for online participation of citizens was selected
as one of the top 10 services back in 2006 World E-government Forum (refer to Table 9).
Table 9 International Acknowledgement and Awards for Korea's E-government
System Operation Organization Acknowledgement Year

UN Public Service Award 2003
KONEPS Best practice for improving
Public Procurement Service OECD transparency 2004
(E-procurement)
WCIT Global IT Excellence Award 2006
KISS(E-immigration) UN Public Service Award 2007
Best practice for anti-
UN 2001
UNI-PASS Korea Customs Service corruption
(Online customs service) WCO Trophy for IPR Protection 2006
AFACT e-Asia Award 2007
Best practice for online tax
HomeTax National Tax Service OECD 2006
administration
InVil(Information Village) UN Public Service Award 2010
Ministry of Security and Public
On-Nara World E-democracy
Administration Top 10 2009
(Business Process System) Forum
E-Challenge Demonstration 2009
E-People Anti-corruption and Civil Rights
(OPPS) Commission World E-government
Top 10 2006
Forum
21
6. Life of Citizens
A. Information Usage
Internet Usage Rate and Number of Users
As of July 2012, the Internet usage rate among persons aged 3 or over (share of Internet users who used the
Internet for the last month) was 78.4%, increasing by 0.4%-point from the previous year. The number of
Internet users was 38.12 million (a 0.94 million increase from the previous year). The Internet usage rate was
only 44.7% (with 19.04 million users) in 2000, but increased by 33.7%-points and the number of users by
two-fold with the rapid expansion of infrastructure for the last 12 years (refer to Figure 4).
Figure 4 Internet Usage Rate and Number of Internet Users
Internet Usage (%) Internet Users (x 1,000 persons)
36,190 36,580 37,010 37,180 38,120

34,910 35,590
31,580 33,010
29,220
24,380 26,270
19,040
74.1 75.5 76.5 77.2 77.8 78.0 78.4
70.2 72.8
65.5
56.6 59.4
44.7
2000 2001 2002 2003 2004 2005 2006 2007 2008 2008 2010 2011 2012
Pattern of Internet Usage
Figure 5 Weekly Average Internet Usage Frequency and Time(Age 3 or Over) (Age 3 or Over)
(Frequency) Weekly average time (Time)

Less than
2011: 15.4 hours
once a month 14~21 hours
2012: 16.3 hours
1.0% 25.2%
7~14 hours
Once or more Once or more 27.8%
per month
98.8% per day 48.0%
0.2% 85.2%
Once or more 21~28 hours

per week 11.5%
13.6% Under 7 hours 28~35 hours 5.3%
24.2%
Over 35 hours 6.0%
Source: Former Korea Communications Commission and Korea Internet Security Agency, '2012 Status Survey on Internet Usage', December 2012.

22
6. Life of Citizens
According to the survey, most of the Internet Figure 6 Purpose of Using the Internet
(%) (Multiple Answers), (Age 3 or Over)
users (98.8%) are using the Internet once or
more per week (‘once or more per day’ 85.2%, Obtaining information 92.3
and ‘once or more per week’ 13.6%), and they Leisure (music, games, etc...) 87.5
spend an average of 16.3 hours per week (2.3 Communication 87.2
hours daily average)(refer to Figure 5). (email, messengers, etc..)
Internet purchase and sales 57.7
As for the main purposes of using the Internet, Education and learning 48.8
the majority of respondents chose ‘obtaining Participating in online communities 44.1

(online cafes, clubs, etc.)
information (92.3%)’, ‘enjoying leisure time -
Homepage operation 43.6
music, games, etc. (87.5%)’, and ‘communi- (blogs, mini-hompi's, etc..)
cating via email, messengers, etc. (87.2%)’. Internet finance 38.6
57.7% chose ‘buying and selling products or File sharing service (P2P, etc..) 21.4
services via the Internet’ and 48.8% responded Job search (online submission of
11.1
CVs and applications)
they are using the Internet for ‘education and
Software download/upgrade 10.3
learning’ purposes (refer to Figure 6).
Source: Former Korea Communications Commission and Korea Internet Security
Agency, '2012 Status Survey on Internet Usage', December 2012.
Internet and Economic Activities
63.5% (1.0%-point decrease from the previous Figure 7 Internet Shopping Cost
year) of the Internet users have purchased (KRW, %) (Internet Shopping Users Aged 12 or Over)
products or services via the Internet within the

Monthly average
last year. The Internet shopping rate is purchasing cost:
significantly higher at 70.8% among females 487,000 won
than males (57.2%); by age group, users in their 50,000 ~ 100,000

30,000 ~ 50,000
20s showed the highest rate with 90.2%, 19.2 24.1
followed by 30s (78.1%), age 12~19 (70.5%),
and 40s (49.1%) (refer to Figure 7). 40.4%
20,000 ~ 30,000
11.4
The monthly average cost spent in purchasing
products or services via Internet shopping is Over 100,000
16.3
KRW 487,000, and the share of users spending 10,000 ~ 20,000
23.8 Under 10,000
at least KRW 50,000 per month on average is
5.1
40.4%.
Agency, ‘2012 Status Survey on Internet Usage’, December 2012.
Items purchased via Internet shopping are
‘clothes, shoes, sporting goods, and accessories
(72.2%)’, ‘music (38.1%)’, ‘booking and reservation (37.4%)’, ‘videos - movies, TV shows, etc. (35.0%)’,
‘cosmetics (32.6%)’, and ‘books, magazines, and newspapers (28.5%)’ (refer to Figure 8).
23
Figure 8 Items Purchased via Internet Shopping (%) (Multiple Answers, Internet Shopping Users Aged 12 or Over)
Clothes, shoes, sporting goods, and accessories 72.2
Music 38.1
Booking and reservation 37.4
Videos (movies, TV shows, etc.) 35.0
Cosmetics 32.6
Books, magazines, and newspapers 28.5
Groceries (including health food) 22.9
Computer and peripherals 19.7
Computer software (excluding computer games) 17.2
Home appliances and electronics 15.5
Computer games or video games 11.2
Furniture and toys 7.4
The rate of using Internet banking (share of Internet users who used Internet banking in the last year) is
43.2% (a 0.8%-point increase from the previous year). The rate among males is 44.1%, slightly higher than
females (42.2%); by age group, users in their 20s (61.7%) and 30s (61.5%) showed relatively higher rates
(refer to Figure 9).
Figure 9 Internet Banking Usage Rate (%) (Internet Users Aged 12 or Over)
2011 2012
61.6 61.7 60.4 61.5
42.4 43.2 43.1 44.1 41.6 42.2 39.6 41.3

29.2 30.2
13.7 15.4 16.2 16.2
Total Male Female Age 12~19 20s 30s 40s 50s 60s or over
Figure 10 Rate of Using Internet Stock Trading Service (%) (Internet Users Aged 18 or Over)
2011 2012
12.1 11.9 12.0 11.6

9.9 9.6 7.3 7.0 9.8 9.5 9.6 9.6 7.7 7.4
Total Male Female Age 18~29 30s 40s 50s or over

24
6. Life of Citizens
9.6% of Internet users aged 18 or over have used Internet stock trading service in the last year. The rate of
using Internet stock trading service is higher among males at 11.9% than females (7.0%), showing a 4.9%-
point difference; by age group, the rate is 11.6% for users in their 30s, 9.6% for 40s, and 9.5% for age 18~29
11.5% of Internet users have purchased products or services through social commerce sites in the last year.
Females using social commerce sites are 12.8%, a slightly higher rate compared to males (10.4%); by age
group, users in their 20s show the highest rate of using social commerce sites (25.1%), followed by 30s
(15.9%), age 12~19 (6.7%), and 40s (5.3%) (refer to Figure 11).
Figure 11 Rate of Using Social Commerce Sites (%) (Internet Users Aged 12 or Over)
2011 2012
20.4 25.1
10.7 12.8 10.5 15.9
9.3 11.5 8.2 10.4 6.6 6.7 5.2 5.3 3.6 3.6 1.7 1.6
Source: Former Korea Communications Commission and Korea Internet Security Agency, ‘2012 Status Survey on Internet Usage’, December 2012.
Internet Usage Environment
81.4% of the total households own ‘desktop Figure 12 ICT Devices in Households (%) (Multiple Answers)
computers’, and penetration rates of ‘digital

Desktop Computer 81.4
TVs’ and ‘digital cameras’ are 56.6% and
Smart phone 65.0
54.8% respectively. More than half of the total
households, or 66.5% have one or more smart Smart TV 5.2 smart devices
devices such as ‘smart phones (65.0%)’, ‘smart Smart pad 4.1 66.5%
TVs (5.2%)’, or ‘smart pads (4.1%)’ (refer to Digital TV 56.6
Figure 12). Digital camera 54.8

Household Internet access rate as of July 2012 is Navigation 43.7
82.1% (0.3%-point increase from the previous Laptop Computer
20.2
(including Netbook, etc.)
year), which is a 32.3%-point increase from 12
MP3 player 16.8
years back in 2000 (49.8%)(refer to Figure 13).
Game console 11.9
Methods of Internet access include the most-
used ‘wireless LAN (Wi-Fi)’ at 48.4%, followed Digital camcorder 9.1
by ‘Optic LAN (including Apartment LAN and Others (PDA, etc.) 2.8
FTTH) (44.9%)’, ‘xDSL (35.2%)’, and ‘cable

modem (33.7%)’(refer to Figure 14). Agency, '2012 Status Survey on Internet Usage', December 2012.
25
Figure 13 Household Internet Access Rate
(%)
74.8 78.4 79.8 80.6 81.2 81.6 81.8 82.1

70.2 68.8 72.2
63.2
49.8
2000 2001 2002 2003 2004 2005 2006 2007 2008 2008 2010 2011 2012
Figure 14 Household Internet Access Methods Figure 15 Usage of Portable ICT Devices
(%) (Multiple Answers) (Internet Access Households) (%) (Multiple Answers)
Mobile phone 95.2

(including smart phone) 96.4
90.6
Laptop computer 27.5
48.4 44.9 34.7
35.2 (including netbook, etc.) 1.1
33.7
20.9
8.5 MP3 player 25.0
5.9
14.4
Game console 17.6
2.5
PMP (Portable Multimedia 2.3
2.9
Player) 0.1
2.1
Electronic dictionary 2.7
Wireless Optic LAN xDSL Cable Wireless 0.1 Total
LAN (Apartmen modem broadband 4.1 Internet Users
(Wi-Fi) t LAN, Internet Others (smart pad, PDA, etc.) 5.1 Non-Internet Users
FTTH, etc.) (Wibro) 0.4
Source: Former Korea Communications Commission and Korea Internet Source: Former Korea Communications Commission and Korea Internet
Security Agency, ‘2012 Status Survey on Internet Usage’, December Security Agency, '2012 Status Survey on Internet Usage', December
2012. 2012.
More than 90% of population aged 6 or over (95.2%) own and use ‘mobile phones (including smart phones)’
the most, followed by ‘laptop computers (27.5%)’, ‘MP3 players (20.9%)’, and ‘game consoles (14.4%)’
Places where the most people used the Internet is ‘home’ with the share of 97.8%, followed by ‘workplace
(43.8%)’, ‘school or preschool (21.0%)’, and ‘commercial facilities (11.4%)’ like PC rooms. On the other
hand, 58.3% of the Internet users (a 6.5%-point increase from the previous year) use the Internet ‘regardless
of their locations’ via wireless terminals like smart phones (refer to Figure 16).
More males than females are likely to use the Internet at ‘workplace’ or ‘commercial facilities’; by age group,

26
6. Life of Citizens
Figure 16 Places of Using the Internet

(%) (Multiple Answers) (Internet Users Aged 3 or Over)
2011 2012
98.1 97.8
44.2 43.8 51.8 58.3

21.9 21.0
10.4 11.4 5.5 5.3 4.4 4.4 2.4 2.9
Home Workplace School / Commercial Educational Other person Public facility Anywhere
(Office) Preschool facility (PC facility (other home (public office, (including
room, etc.) than schools) etc.) wireless
access)
users in their teens mostly use the Internet in ‘schools (67.1%)’, and ‘commercial facilities (27.2%)’, whereas
more users in their 20s use wireless terminals and enjoy the Internet ‘regardless of their locations (84.6%)’
(refer to Table 10).
Table 10 Places of Using the Internet by Gender and Age

(%) (Multiple Answers) (Internet Users Aged 3 or Over)
Public
Workplace School/ Commercial Educational Other
Facility
Type Home Facility Facility Person's Anywhere
(Office) Preschool (other than (Public
(PC room) Home
schools) Office)
Male 97.9 54.9 22.1 15.1 5.4 4.2 3.1 58.3
Female 97.7 31 19.9 7.1 5.2 4.6 2.6 58.3
3-9 99.4 - 47.7 2.5 5.1 4.6 0.8 14.2
10s 99.6 1.1 67.1 27.2 9.6 10.7 3.1 62.2
20s 99 51.5 34.7 23.1 9 6.1 4.6 84.6
30s 98.9 67.7 0.2 6.1 3.3 1.9 2.9 72.5
40s 97.8 61.8 0 3.7 3.6 1.3 2.6 52.6
50s 95 54.9 0.1 3.3 2.2 1.9 2 37.8
60 or Over 88 26.2 - 1.8 0.9 5.4 2.5 29.6
B. Using Internet Services
Information Search
According to Korea Internet White Paper of 2012, the share of Naver in domestic search service market re-
entered the 70%-mark whereas the share of Nate dropped to 4%-level. After making efforts for consistent
service improvement and release of new services, Naver search also takes 63% of the mobile market, still
focusing on market expansion.
27
As for the share of search service market using PC, Naver has 72%, which is about 4%-point increase from
2010, and Daum and Nate respectively has 19.4% and 4.8%, decreasing by 1.4%-point and 1.5%-point each.
Google has been maintaining its share from 2010 at 2.4%, and Yahoo’s share has been constantly decreasing
to 1.1% (refer to Figure 17).
Figure 17 Share of Portals in Korean Search Service Market

(%)
[ 2010.12 ] [ 2011.12 ]
Yahoo Yahoo
Google 1.9% Others Google 1.1% Others
2.5% 0.3% 0.4%
Nate Nate 2.4%
6.3% 4.8%
Daum
Daum 19.4%
21.2%
Naver
67.9% Naver
72.0%
Source: Adapted from 2010 Korea Internet White Paper; original source: Korean Click, 'Share of Portals in Korean Search Service Market’, October 2012.
In 2011, mobile search increased with more Figure 18 Share of Portals in Korean Mobile Web Search
people using smart phones as well as tablet PCs Service Market (%)
such as iPad and Galaxy Tab; as of January

Nate 1.7% Others
2012, the mobile search service market is Google(.com) 2.0% 0.1%
shared by Naver at 62.8%, followed by Daum Google(.co.kr)
at 19.2%, Google Korea(.co.kr) and Google 14.2%
Global(.com) combined at 16.2%, and Nate at

1.7%. The reason Google’s share is higher in
Daum
mobile than fixed is that it is linked to OS and 19.2%
Naver
offered as the basic service on newly purchased 62.8%
smart phones (refer to Figure 18).
Source: Adapted from 2010 Korea Internet White Paper; original source: Korean Click,
'Share of Portals in Korean Search Service Market’, October 2012.
Communication
Among many communication means, email is still the most used throughout the world. A Microsoft’s survey
on usage of social tools by businesses around the world also showed that email has the highest share of usage.
It is the same for Korea. ‘2012 Status Survey on Internet Usage’, carried out by Korea Internet Security
Agency, showed the share of Internet users aged 6 or over using email is 84.8%, and even though this figure
is a 0.9%-point decrease from the previous year, email is still more used than any other Internet
communication services in Korea (refer to Figure 19).

28
6. Life of Citizens
Figure 19 Email Usage Rate By Gender and Age (%) (Internet Users Aged 6 or Over)
2011 2012
99.5 99.2
94.0 93.7
88.0 87.4
85.7 84.8 82.9 81.8
79.3 78.7 83.3 82.7
77.4 75.5
55.4 53.2
Social network services (SNS), which allow for stronger online connection to family members, friends, and
colleagues or extended networking with new persons or others unknown, include community cafes, clubs,
Mini-hompis, blogs, micro-blogs, and profile-based services.
SNS, represented by Facebook globally and Mini-hompis in Korea, has constantly grown since the start of
web services but along with explosive spread of smart phones, it is growing and changing even more rapidly.
As the spread of smart phones now enables generation, consumption, and exchange of contents regardless of
time and place, the ‘social’ role of SNS has become reinforced. That is, the SNS usage is changing from
decorating virtual space or characters to producing contents such as messages, photos, and videos in a fast
and simple way.
Korea Internet Security Agency’s ‘2012 Status Figure 20 SNS Usage by Type
Survey on Internet Usage’ showed that 67.1% of (%) (Multiple Answers, SNS Users Aged 6 or Over)
Internet users aged 6 or over are using SNS. By

2011 2012
SNS type, 81.7% of SNS users aged 6 or over
84.0
are using ‘blogs’, 72.5% ‘online communities’, 81.7
74.6
72.5
and 67.2% ‘Mini-hompis’ (refer to Figure 20). 68.3 67.2
As for the media of using SNS, 81.6% use

desktop computers, which is a 17.1%-point
decrease from the previous year, and 62.0% use 21.1
18.4
smart phones, which is a substantial increase 12.8 13.9
from the previous year by 30.5% points. 85.6%

of the SNS users use the services ‘for social Blogs Online Mini-hompi Profile-based Micro-blog
Community Service
networking’, 66.9% ‘for leisure’, and 54.3% ‘for
sharing personal interests’, signifying that most Source: Former Korea Communications Commission and Korea Internet Security
Agency, '2012 Status Survey on Internet Usage', December 2012.
people use SNS for personal purposes,
29
The main device through which people use instant messenger services is ‘smart phones (73.6%)’, and this is
a highly-increased figure from the previous year (24.2%). On the other hand, the share of using instant
messenger services via ‘desktop computers’ has shown a relatively sharp fall from the previous year (by
32.9% points) down to 64.5%.
As most of the instant messenger users used ‘desktop computers’ before the spread of smart phones, PC-
based instant messenger services like Nate On, MSN (completed service on 25 April 2013), and other
communication applications were mainly used. Later, after rapid penetration of smart phones for the recent
few years, the main device for using instant messenger services has now become ‘smart phones’.
Korea Internet Security Agency’s ‘2012 Status Survey on Smart Phone Usage’ showed that 89.2% of the
smart phone users use ‘mobile instant messenger services (Kakao Talk)’. Along with increased penetration of
smart phones in the middle-aged group, the usage rate of mobile instant messenger services among those in
their 40s and 50s is also increasing dramatically (refer to Figure 21).
Figure 21 Users of Mobile Instant Messenger Service via Smart Phone by Gender and Age (%)
2011 2012
89.2 87.9 90.7 88.3 86.0

92.1 90.0 86.1 86.8
79.2 77.8 80.7 80.0
75.0 73.7
56.9
Total Male Female Age 12~193 20s 30s 40s 50s
Source: Korea Internet Security Agency, 2012 Status Survey on Smart Phone Usage (adapted), December 2012.
Explosive penetration of smart phones led to the sharp increase in the number of users of mobile instant
messenger services like Kakao Talk, Line, My People, etc., which in particular, facilitated use of instant
messenger services via smart phone throughout the entire range of age groups. One of the main drivers for
this was rapid increase in ‘Kakao Talk’ use, which represents the mobile instant messenger service in Korea.
The mobile-based ‘Kakao Talk’ has come to dominate the domestic mobile instant messenger service
market, and its subscribers as of April 2013 has reached 83 million worldwide, who send 5 billion messages
on a daily average. Daum’s ‘My People’ is also showing growth, with the number of users as of April 2013
reaching 26 million, being well-received by users for its free calling and video calling features in addition to
the mobile messenger functionality. NHN’s ‘Line’ is also expected to reach the number of worldwide
subscribers of 250 billion in 2013, backed up by its popularity gained in Japan.

30
6. Life of Citizens
Games
‘2012 White Paper on Korean Games’ estimates the volume of Korean game market in 2011 to have reached
KRW 8.8047 trillion, which is an 18.5% increase from KRW 7.4312 trillion of 2010. Maintaining two-digit
growth rates from 9% in 2008 and 17.4% in 2009, Korean game market volume has marked the KRW 7
trillion point in 2010, and is still growing fast after reaching KRW 9 trillion in 2011 (refer to Figure 22).
Figure 22 Korean Game Market Volume and Growth (2003~2011)

(x KRW 100 million)
86,798 88,047
101.1% 74,489 74,312
65,806
56,047
51,436
39,387 43,156
15.8% 17.4%
9.6% 9.0% 12.9% 18.5%
-14.2%
-30.9%
2003 2004 2005 2006 2007 2008 2009 2010 2011
Source: Korea Creative Contents Agency, 2012 White Paper on Korean Games, October 2012.
By game type, online games are taking the largest share of the Korean market at 70.8% with the volume of
KRW 6.2369 trillion (64.2%), leading the entire game market in Korea.
The share of online games in the entire game market has been increasing every year. It even reaches 88.9% if
measured with game production only, excluding distribution. The online game sector is maintaining its growth
level based on stable infrastructures in domestic market and consolidating the foundation with competitive
games in overseas market, and such growth is expected to continue for a while (refer to Figure 23).
In 2012, Korean game market is forecasted to Figure 23 Korean Game Market Share in 2011 by Type
grow 19.6% from 2011 and reach the volume (%)
of KRW 10.5333 trillion. While online games
PC rooms Arcade games rooms
show a growth rate of 26.3% from 2011, 19.5% 0.9%
mobile games are also expected to grow 49.4% Arcade games
0.8%
from 2011 and reach KRW 632.8 billion, and
PC games 0.1%
arcade games to grow 4.0% and reach KRW Mobile games
76.5 billion. Video games are expected to 4.8%
Online games
decrease 22.4% from 2011 to KRW 208.4 Video games
70.8%
3.0%
billion, and PC games also to decrease 21.3%
to KRW 7.6 billion. As for the game
distribution market, it is estimated that the
Source: Korea Creative Contents Agency, 2012 White Paper on Korean Games, October
volume of games distributed through PC rooms 2012.
31
and arcade game rooms will each decrease 3.5% to KRW 1.6562 trillion and 0.8% to KRW 75.7 billion.
The entire game market in 2013 and 2014 is also forecasted to show continuous growth, focused on online
games and mobile games, just like it did in 2012. The volume is expected to grow 19.1% to KRW 12.5472
trillion by 2013, and grow 18.4% to KRW 14.8558 trillion by 2014. The online game sector, taking up the
largest share in Korean game market, is expected to reach a volume of KRW 10 trillion by 2013. Given that
the current demand for mobile games continues, the volume will grow to reach KRW 1 trillion by 2014
(refer to Table 11).
Table 11 Korean Game Market Volume and Forecast (2010~2014)

(x KRW 100 million)
2010 2011 2012(E) 2013(E) 2014(E)

Type
Sales Sales Growth Sales Growth Sales Growth Sales Growth
Online game 47,673 62,369 30.8% 78,762 26.3% 97,076 23.3% 117,986 21.5%
Mobile game 3,167 4,236 33.8% 6,328 49.4% 9,180 45.1% 12,580 37.0%
Video game 4,268 2,684 -37.1% 2,084 -22.4% 2,019 -3.1% 1,974 -2.2%
PC game 120 96 -20.0% 76 -21.3% 61 -19.6% 53 -13.2%
Arcade game 715 736 2.9% 765 4.0% 791 3.3% 810 2.4%
PC room 17,601 17,163 -2.5% 16,562 -3.5% 15,590 -5.9% 14,395 -7.7%
Arcade room 768 763 -0.7% 757 -0.8% 756 -0.1% 760 0.6%
Total 74,312 88,047 18.5% 105,333 19.6% 125,472 19.1% 148,558 18.4%
Source: Korea Creative Contents Agency, 2012 White Paper on Korean Games, October 2012.
According to a survey conducted by Ministry of Culture, Sports, and Tourism and Korea Creative Contents
Agency for 1,700 game users aged 9~49, they spend 60.6 minutes on games per day on average. By gender,
males (66.1 minutes) play games longer than females (54.8 minutes) by an average of more than 10 minutes.
By age group, users of age 15~19 use the longest time on game playing, for 70.4 minutes, and the amount of
time falls after reaching the peak in group of users aged 30~34.
C. Internet Addiction and Digital Divide
Status of Internet Addiction
Psychiatrists in Korea are delaying their decision on whether to define Internet addiction as a mental illness
by itself. However, Internet addicts who visit counseling centers suffer from extreme anxiety or anxiousness
when they are not accessed to the Internet, or experience difficulties in adapting to the real world because
they are too immersed in the virtual world. In serious cases, they become the subjects of cyber crimes, long-
time unemployment, destroyed homes, violence, and murders. In this regard, Korea is responding to the issue
at the national policy level, regardless of the academic recognition of Internet addiction whether to see it as
an official mental illness.

32
6. Life of Citizens
Article no. 30 of the ‘Framework Act on National Informatization’ defines Internet addiction as ‘suffering a
loss of physical, mental or social functions, which is hard to recover in their daily lives, due to the abuse of
the Internet, etc.’ The vague definition has been improved by National Information Society Agency of
Korea, as ‘a condition under which a person uses the Internet so much that he/she has withdrawal and
tolerance, which causes disorders in daily life’.
The 2012 Status Survey on Internet Addiction revealed that 7.2%, or 2.203 million of Internet users aged
5~49 are at risk (refer to Figure 24). Internet addiction rate decreased 0.5% point from the previous year, and
when the share is converted to population number, the number of Internet addicts decreased by 136,000. By
age group, the addiction rates generally showed decrease - 7.3% in children (aged 5~9), 10.7% in teens (in
10s), and 6.0% in adults (in 20s~40s); however, the age of first-time Internet use is becoming lower, causing
increased Internet addiction in preschool children to 4.3% from the previous year (3.6%), leading to low-age
Internet addiction. The addiction rate in teens increased for the first time in five years - though the high-risk
group decreased, the potential-risk group increased to 7.9% from the previous year (7.5%) and the share of
the potential-risk group in teens was the highest among other age groups (refer to Figure 24).
Figure 24 Internet Addiction Rate and Number of Addicts by Year
Internet Addiction Rate by Year (%) Internet Addiction Rate by Year and Age Group(%)
Children: High-Risk Group Potential-Risk Group
Internet Addiction Rate Potential-Risk Group Teens: High-Risk Group Potential-Risk Group
12.6 High-Risk Group Adults: High-Risk Group Potential-Risk Group
9.2 9.2 15.3
8.8 8.5 14.0 14.4 14.3
8.0 7.7 7.2 2.6 12.8
2.4 2.1 2.3 2.3 12.4
2.6 10.4 10.7
9.9 3.1
1.7 1.7 1.6 1.5 1.5 2.3 7.9 2.9 7.3 2.8
1.7 7.0
10.2 1.5 6.5 6.3 6.4 5.8 1.0 6.8 0.8 6.0
12.7 1.5 1.4 1.0
1.3 0.7 1.4 1.2
11.9 12.1 12.0 10.2
7.5 7.4 7.2 7.0 7.6 9.3 7.5 7.9
6.5 6.0 5.7 5.5 6.9 5.4 6.5 4.8
5.1 5.0 5.4 5.2
2005 2006 2007 2008 2009 2010 2011 2012 2005 2006 2007 2008 2009 2010 2011 2012
PC and Smart
PC and Smart Device-
Device-based
PC-based Internet Use by Age 9~39 PC-based Internet Use by Age 9~39 based Internet Use
Internet Use by
by Age 5~49
Age 5~49
Note 1. The survey group was expanded to users aged 5~49 (children: age 5~9; teens: age 10~19; adults: age 20~49) for 2011~2012 survey; therefore, statistics are
slightly different from the past surveys that surveyed users aged 9~39 (teens: age 9~19; adults: age 20~39).
Note 2. Internet usage via smart devices included from 2011 (PC-based Internet usage until 2010).
Source: Ministry of Science, ICT, and Future Planning and National Information Society Agency, 2012 Status Survey on Internet Addiction, June 2013.
Status of Digital Divide
The 2012 Digital Divide Index showed that the comparative PC-based comprehensive informatization level9)
of the socially disadvantaged to the general population increased by 1.6% points from 72.4% in 2011 to
9) The comprehensive informatization level is a concept incorporating all levels of accessibility, capacity, and utilization.
33
74.0% in 2012. The result is a 29.0%-point increase from 2004, the first year of the survey when the level
was 45%.
By subindex of the informatization level of the socially disadvantaged, their PC-based accessibility is 93.4%
of that of the general population but their capacity and utilization levels are only 56.1% and 59.9% each,
meaning that the divide in information utilization that is directly related to their capacity to utilize
information, amount of information used, and how they use information (quality of usage) is bigger than the
divide in information accessibility (refer to Table 12).
Table 12 Informatization Level of Socially Disadvantaged Compared to General Population

(%)
Subindex 2004 2005 2006 2007 2008 2009 2010 2011 2012
Accessibility 63.7 71.0 80.2 86.5 89.7 91.0 91.8 92.7 93.4
Capacity 27.5 35.2 42.9 44.5 45.7 48.9 50.8 52.8 56.1
Utilization 33.1 41.0 49.2 51.4 53.1 54.8 56.5 58.2 59.9
Quantitative 34.2 42.2 50.3 52.8 54.4 55.7 57.5 58.6 59.7
Qualitative 29.6 37.7 46.4 48.0 50.1 52.3 54.1 56.8 60.4
Comprehensive 45.0 53.3 62.0 65.9 68.0 69.7 71.1 72.4 74.0
*The comparative level represents the informatization level of the socially disadvantaged compared to the level of the general population, which is given the value
100
Source: National Information Society Agency, 2012 Digital Divide Index Report and Status Survey, March 2013
The comparative PC-based comprehensive informatization level of the socially disadvantaged, analyzed by
group, was 83.4% for the disabled (a 1.2% point up from the previous year), 82.2% for the low-income
group (a 0.8% point up), 71.2% for the elderly (a 2.0% point up), and 64.8% for the rural residents (a 1.2%
point up). The rural resident group having the lowest PC-based informatization level is due to the relatively
higher share of residents who are older or less educated, and the higher potentiality of being vulnerable areas
(military areas, etc.).
In 2012, the average Internet usage rate in the socially disadvantaged (disabled, low-income, elderly, and
rural residents) is 46.8%, up by 1.2% points from the previous year, and the difference from the general
population (78.5%) is 31.7% points, which is a 1.0% point decrease from the previous year. The Internet
usage rate in the socially disadvantaged groups is increasing each year, and the gap, decreasing accordingly.
The Internet usage rate of the disadvantaged by group is 58.5% for the low-income group (1.1% points up
from the previous year), 55.5% for the disabled (1.1% points up), 42.6% for the elderly (1.5% point up), and
40.2% for the rural residents (1.3% points up). Just like the comparative informatization level, the usage rate
was also the lowest in the rural resident group, who are likely to be older or less educated, and whose living
environment is likely to be vulnerable (military areas, etc.). On the other hand, the rate was the highest in the
low-income group, which has a lower share of the elderly and a higher share of low-age students (refer to
Table 13).10)
10) Share in the age of 60s or over: low-income (30.1%), disabled (48.5%), rural residents (54.1%)
Share in the age of 30s or under: low-income (41.3%), disabled (15.3%), rural residents (8.2%)

34
6. Life of Citizens
Table 13 Internet Usage Rate (%) of the Socially Disadvantaged and Digital Divide (% points)
Group 2004 2005 2006 2007 2008 2009 2010 2011 2012
Total population 70.2 72.8 74.8 76.3 77.1 77.6 78.3 78.3 78.7
Rate 24.9 29.4 35.1 40.1 41.7 43.0 44.3 45.6 46.8
Average
(Divide) (45.3) (43.4) (39.7) (36.2) (35.4) (34.6) (34.0) (32.7) (31.9)
Rate 34.8 41.0 46.6 49.9 51.8 52.7 53.5 54.4 55.5
Disabled
(Divide) (35.4) (31.8) (28.2) (26.4) (25.3) (24.9) (24.8) (23.9) (23.2)
Rate 19.3 22.5 28.3 34.1 35.6 37.6 39.3 41.1 42.6
Elderly
(Divide) (50.9) (50.3) (46.5) (42.2) (41.5) (40.0) (39.0) (37.2) (36.1)
Rate 38.4 44.2 48.4 52.8 54.6 55.7 56.5 57.4 58.5
Low-income
(Divide) (31.8) (28.6) (26.4) (23.5) (22.5) (21.9) (21.8) (20.9) (20.2)
Rural Rate 16.9 23.0 29.4 33.4 35.2 36.2 37.5 38.9 40.2
Residents (Divide) (53.3) (49.8) (45.4) (42.9) (41.9) (41.4) (40.8) (39.4) (38.5)
*Divide represents the difference between Internet usage rates of the total population and the disadvantaged; the Internet usage rate of the total population is based
on KISA's published data (2012 Status Survey on Internet Usage).
*The average is weighted by the size of each disadvantaged group.
Source: National Information Society Agency, 2012 Digital Divide Index Report and Status Survey, March 2013.
In 2012, the Mobile Divide Index11) shows that the smart device-based mobile informatization level12) of the
socially disadvantaged compared to the general population is 27.8%, which is a substantially lower level than
PC or fixed Internet-based informatization level (74%).
The comparative mobile informatization level of the socially disadvantaged, analyzed by group, was 48.5%
for the low-income, 27.7% for the disabled, 22.7% for rural residents, and 18.7% for the elderly; the level
was relatively higher in the low-income group, which has a higher share of low-age students. The
comparative mobile informatization level of the socially disadvantaged is lower than the PC-based
Figure 25 Mobile Informatization Level of the Socially Disadvantaged Compared to General Population
(%)
Mobile PC-based
Informatization Informatization
Level Level
Mobile Mobile Mobile Comprehen- Comprehensive

Group 27.8
Level
74.0
Accessibility Capacity Utilization sive Level
Disabled 34.1 27.6 31.1 30.2
34.2 Accessibility 93.4
Low-income 42.9 48.0 45.9 46.1
Rural
28.3 23.7 25.3 25.3 24.1 Capacity 56.1
Residents
Elderly 32.9 16.1 22.9 22.2
28.3 Utilization 59.9
Average 34.2 24.1 28.3 27.8
* The mobile informatization level of the socially disadvantaged compared to the *Measuring tool: *Measuring tool:
level of the general population, which is given the value 100 mobile divide digital divide
11) Mobile Divide Index measures the differences in the level of accessibility, capacity, and utilization of smart mobile devices in a comprehensive way.
12) The smart device-based mobile informatization level represents the level of the socially disadvantaged compared to the mobile informatization level of the
general population, which is given the value 100.
35
informatization level in all subindices, with 34.2% in accessibility, 24.1% in capacity, and 28.3% in
utilization.
The reason that the mobile informatization level of the socially disadvantaged is much lower than the PC-
based level is due to their low rate of smart phone penetration, which further causes lack of capacity to use
the wireless Internet for various purposes in daily life and thus, lack of applicability in practice (refer to
Figure 25).

36
7. Digital Economy
7. Digital Economy
A. IT Usage by Businesses
IT Usage Environment and Status
National IT Industry Promotion Agency, which has carried out surveys on domestic businesses’ IT usage and
evaluation of their usage level, integrated similar surveys that had been conducted separately, such as the ‘E-
business Index’ and ‘Evaluation of Business Informatization Level’, and has conducted ‘Survey on E-
business and IT Usage by Korean Businesses’ since 2009 in order to provide the government and businesses
with basic statistical data for developing IT policies and investment plans.
In 2012, the survey was conducted with a total Figure 26

Information System Usage By Business
of 3,224 businesses in Korea having 10 Process (%)
employees or more from September to 2010 2011 2012

November.
85.7
77.4 78.2
The share of businesses using information 43.7

39.9 41.4 37.8 39.0 38.5 39.4
systems for processes regarding business 29.5 33.6
28.2 27.7 26.7
support was the largest with 78.2%, followed by
processes regarding supply (purchase) (41.4%), Supply Operation Customer Business Business
(Purchase) (Production/ Interaction Support Integration
business integration (39.4%), operations Development) (Sales)
(39.0%), and customer interaction (26.7%) Source: Ministry of Science, ICT and Future Planning (Former Ministry of Knowledge
(refer to Figure 26). Economy) and National IT Industry Promotion Agency, ‘Survey on E-business
and IT Usage in Korean Businesses’, December 2012.
The information system usage rate for integrated Adoption Rate of Information Systems for
business processes was the highest with ERP Figure 27
Integrated Business Activities (%)
(Enterprise Resource Planning) at 34.1%,

2010 2011 2012
followed by CRM (Customer Relationship
Management) at 13.6%, and SCM (Supply 27.728.1 34.1
Chain Management) at 10.5%. The adoption 9.5 10 13.6 7.1 7.3 10.5 5.6 6 7.7 4.0 5.9 7.7
rate, for most systems, is constantly increasing ERP CRM SCM KMS SEM
each year, though by a small range (refer to Source: Ministry of Science, ICT and Future Planning (Former Ministry of Knowledge
Economy) and National IT Industry Promotion Agency, ‘Survey on E-business
Figure 27). and IT Usage in Korean Businesses’, December 2012.
Along with development of the latest information technologies, more businesses are adopting new
37
computing environment for work. In particular, Figure 28 Businesses Using Mobile Technologies
(%)
penetration of mobile devices like smart phones
and smart pads, as well as the expanding 11.8 12.2 14.4 19.0 20.8
5.8
infrastructure, led to consistent increase in the
share of businesses using the mobile Internet 2007 2008 2009 2010 2011 2012
and other mobile technologies, which reached Source: Ministry of Science, ICT and Future Planning (Former Ministry of Knowledge
Economy) and National IT Industry Promotion Agency, ‘Survey on E-business
20.8% since 2007 (refer to Figure 28). and IT Usage in Korean Businesses’, December 2012.
As for ISP (Information Strategy Planning) within businesses, 7.6% of the businesses renew ISP every year,
3.5% every three years, 1.3% every two years, and 86.9% do not plan information strategies at all. The share
of businesses that renew ISP every year is 33.9% among businesses with 1,000 employees or more, 20.5% in
Figure 29 ISP Renewal Cycle
1 year 2 year 3 year or over NO ISP
92.0
86.9 84.1
67.9
33.9 34.9
20.5 19.8
7.7 8.3
1.3 3.5 5.2
0.4 2.1 2.6 4.4 5.0 6.3 4.8
1 year 2 year 3 years or No ISP 10~49 50~249 250~999 1,000 or over

over
(A) Overall (B) ISP Renewal Cycle by Business Size
Source: Ministry of Science, ICT and Future Planning (Former Ministry of Knowledge Economy) and National IT Industry Promotion Agency, 'Survey on E-business
and IT Usage in Korean Businesses', December 2012.
businesses with 250~999 employees, and 5.2% Figure 30 Rate of Conducting Evaluation on IT Investment
in businesses with 50 or less employees (refer
to Figure 29). Feasibility analysis before investment
Effectiveness analysis after investment
None
The share of businesses that conduct IT
investment evaluation in qualitative terms like 82.3 84.9
urgency and satisfaction and in quantitative 51.2

terms like time reduction in production and 34.6
22.5
development cycle or reduction of inventory- 10.4 6.2 8.4
4.9
sales ratio, and in feasibility and effect analysis
Total Large SMEs
such as ROI, TCO, and other analytical Businesses
evaluation, is relatively low at 10.4%. On the

Source: Ministry of Science, ICT and Future Planning (Former Ministry of Knowledge
other hand, larger-sized businesses showed Economy) and National IT Industry Promotion Agency, ‘Survey on E-business
slightly higher rates of analyzing feasibility
before investment and effect after investment

38
7. Digital Economy
Most of the IT investment made by businesses in Korea and US is for improving security functions (23.3%
and 55.0% each), and Korean businesses are investing the most into upgrading network infrastructure
(23.7%). Besides constructing or upgrading ERP systems, Korean businesses invest less than US businesses
Figure 31 IT Investment Areas

(%) (Multiple Answers)
Korea(n=3,224) US(n=453)
Improving security functions

23.3
55.0
9.3
Improving server virtualization 48.0
Upgrading network infrastructure

23.7
40.0
7.1
Upgrading storage infrastructure 39.0
Developing web-based business apps for smart phones, 5.2
33.0
and tablets PCs
3.0
Developing virtual desktops 31.0
Constructing or improving decision-making support 2.3
30.0
systems like big data
10.4
Upgrading wireless network 29.0
Launching or expanding public cloud services 1.8

29.0
Managing mobile devices like smart phones and tablet PCs 2.9
28.0
4.6
Developing or upgrading business collaboration systems 24.0
Constructing cloud infrastructure for businesses 2.4

22.0
Constructing or upgrading ERP systems 16.1
21.0
Source: Ministry of Science, ICT and Future Planning (Former Ministry of Knowledge Economy) and National IT Industry Promotion Agency, 'Survey on E-
business and IT Usage in Korean Businesses', December 2012, Information Week 2012 IT Spending Priorities Survey of 453 business technology
professionals, March 2012.
Figure 32 Factors That Hinder IT Investment

(points, on a scale of 1 to 7, where 1 = very low, 4 = moderate, 7 = very high)
4.1
Securing Funds �� Informatization Capacity
3.9 3.9 3.9 3.8 3.8 3.8 3.8
Uncertainty of Lack of Difficulty in Difficulty in Lack of Lack of IT skills Lack of the Low status of
cost- financial securing funds hiring capacity in IT and market managerial IT departments
performance stability caused manpower planning and information awareness on within
by shortage of management informatization organization
funds
Source: Ministry of Science, ICT and Future Planning (Former Ministry of Knowledge Economy) and National IT Industry Promotion Agency, ‘Survey on E-business
39
The main factor that hinders IT investment of businesses is uncertainty of cost-performance (4.13 points),
followed by difficulty in hiring manpower (3.93 points), lack of financial stability caused by shortage of
funds (3.90 points), difficulty in securing funds (3.89 points), etc., all of which illustrate that the problem is
about money, not capacity (refer to figure 32).
The Korean businesses that have already adopted cloud computing for use, or plan to adopt it within two
years, consider security (59.5%) and system stability (54.8%) as the top-priority issues. The increasing
security threats made businesses to find an alternative, a hybrid method that uses both the public cloud that is
provided by external providers and the private cloud within the organization (refer to figure 33).
Figure 33 Major Considerations For Adopting Cloud Computing (%)
Duplicated Top-priority
59.5
54.8
39.7
28.8 30.8
25.9
18.8 17.1 17.4 19.7
10.8
6.4
0.9 1.7
Cost for System security Interconnection / Expertise of Service Operational

adoption stability Interoperability provider quality cost
with other
systems in the
business
B. IT Utilization Level
In 2008, the ‘Framework for Integrated Assessment of IT Utilization Index’ was developed by conducting
the ‘Study on Developing IT Utilization Index’. The Index consists of seven areas for assessment - resource,
governance, acceptiveness, leadership, process, performance, and environment.
IT resources such as IT infrastructures and systems are used in business process and ultimately yield
performance. For such IT resources to be appropriately used in the process, managerial capacity from the IT
supporter point of view who supports IT use in the front-office, and acceptive capacity from the IT user point
of view who actually uses IT, should work together as facilitators of IT utilization.
Managerial leadership on IT is an important factor that has the greatest impact on IT investment and
performance, affecting IT resources, governance, acceptiveness, and process. The environment includes all
external factors that influence IT utilization, and has impact on IT resources, governance, acceptiveness, and
process, as the leadership does.
Based on the ‘Framework for Integrated Assessment of IT Utilization Index’, ‘IT Utilization Index’ has been

40
7. Digital Economy
published since 2009, using the result of ‘Survey on E-business and IT Usage in Korean Businesses’. The IT
Utilization Index is defined as an index measuring the capacity of businesses in effectively managing and
utilizing IT with stakeholders in order to create values from IT, including increased business performance
and customer values, enhanced collaboration and performance from it, and innovated value chain.
To measure the IT Utilization Index, the level of IT utilization in four areas of the ‘Framework for Integrated
Assessment of IT Utilization Index’- intra-functional process, inter-functional process, process between
businesses, and strategic management - were given scores ranging from 0 to 100 and weighted by area,
industry type, and size. The result shows that the IT Utilization Index score for businesses in Korea is 51.9, a
0.6-point increase from the previous year, and a 7.8-point increase from the start of the survey in 2009. By
area, the scores are 66.7 for intra-functional process, 62.5 for inter-functional process, 42.7 for process
between businesses, and 35.8 for strategic management. Compared to 2009, scores for inter-functional (46.6
�62.5) and intra-functional (57.1�66.7) showed a significant increase, meaning that IT utilization within
each business is leading the increase of IT Utilization Index (refer to figure 34).
Figure 34 IT Utilization Index by Assessment Area

(scores)
2009(n=2,841) 2010(n=2,502) 2011(n=3,006) 2012(n=3,224)
7.8 9.6 15.9 4.3 1.4
67.5 66.7 62.5

51.3 57.1 60.7 52.9 58.2
44.1 46.7 51.9 46.6 43.0 44.7 42.7
38.4 34.4 30.3 35.0 35.8
IT Utilization Intra-functional Inter-functional Process Strategic

Index (Total) (within (within between management
business) business) businesses
In terms of the IT Utilization Index by industrial type, the score is the highest in financial and insurance
activities (58.7) and information and communications (53.9), and manufacturing (52.2). On the other hand,
the score is under 30 points in agriculture, forestry and fishing and materials recovery and remediation
activities (refer to figure 35). Within the manufacturing industry, the scores are relatively high in manufacture
of tobacco products, manufacture of electronic components, computer, radio, television and communication
equipment and apparatuses, and manufacture of motor vehicles with 81.4 points, 66.4 points, and 60.5 points
each; however, the scores are low in manufacture of wood and products of wood and cork, and tanning and
dressing of leather, manufacture of luggage and footwear. Financial and insurance activities and information
and communications both have higher IT utilization level not only from the previous year but the scores kept
increasing for three years, with the information and communications industry showing a major increase level
of IT utilization (refer to Figure 35).
The difference in IT Utilization Indices between large businesses and SMEs slightly increased from 26.5
points to 32.5 points. The difference is the largest in inter-functional process with 35.1 points, whereas it was
41
the smallest in intra-functional process with 30.2 points (refer to Figure 36).
Figure 35 IT Utilization Index By Industry
Business
facilities
Profession
manageme
Accommo Informatio al, Real Materials
Financial nt and Other Agricultur
dation and n and Manufactu Transport Wholesale scientific Constructi Electricity/ estate/ren Mining and recovery
and business personal e, forestry
food communic ring ation and retail and on gas ting and quarrying and
insurance support services and fishing
service ations technical leasing remediation
services
activities
Electricity/
gas
2010 52.0 36.2 53.8 45.8 39.3 38.7 33.5 37.2 27.1 44.8 22.8 36.1 27.2 13.8 17.7
2011 59.6 38.1 57.0 48.9 41.1 41.4 34.9 39.8 28.9 45.1 26.3 40.6 28.2 19.7 21.1
2012 58.7 43.9 53.9 52.2 40.2 38.3 38.5 38.7 32.0 44.3 32.0 44.0 30.3 21.3 25.7
Figure 36 IT Utilization Index by Business Size
2009(n=2,841) 2010(n=2,502) 2011(n=3,006) 2012(n=3,224)

Large businesses
79.1 80.6 73.8 78.7

58.5 59.1 64.1 67.0 69.9 72.9 65.6 68.4 58.8 57.5
51 53.6 47.541.544.9 51.0
IT Utilization Index Intra-functional Inter-functional Process Strategic

(Total) (within business) (within business) between businesses management
Difference
30.6 26.7 26.5 32.6 27.3 26.3 24.1 30.2 40.5 33.4 32.3 35.1 26.8 22.8 29.1 32.0 27.8 24.1 20.6 32.8
55.0 50.4
37.6 34.4 42.6 45.6 41.5 43.6
SMEs
35.0 30.8 29.7

27.9 32.4 25.1 24.2 25.5 24.3
19.7 17.4 18.2
IT Utilization Index Intra-functional Inter-functional Process Strategic

(Total) (within business) (within business) between businesses management
C. IT Utilization Development Stages

Based on the result of the ‘Study on Developing IT Utilization Index’ in 2008, and reference to other
maturity models of IT-related indices such as the ‘E-business Index’ and ‘Evaluation on Business

42
7. Digital Economy
Informatization Level’ as well as foreign literature on IT utilization development, an ‘IT Utilization

Development Model’ was deployed, which is a four-stage model of IT utilization development in terms of
organizational development through IT.
The first stage is ‘efficient process’, where information within each function of the organization, such as
production, sales, material supply, accounting, and personnel, is processed through an information system,
and users within the same functional unit can share information through an integrated system.
The second stage is ‘integrated process within business’ where work flow of functions that are related to
each other, such as purchasing, production and accounting, are integrated within the business through an
information system.
The third stage is ‘integrated process between businesses’, where transactions between different businesses
are carried out electronically through an information system.
The fourth stage is ‘strategic management and new business model development’, where the top-level
management team uses information systems to realize value-oriented management, analyze information that
is integrated with business process for strategy planning and control of the business, and define a new
business model based on a value chain in the virtual world, ultimately responding to customer needs and
market changes using information and technological infrastructure.
Classification of the businesses surveyed in 2012 according to the ‘IT Utilization Development Model’
shows that 80.6% of them are at stage 1, ‘efficient process’. Businesses at stage 2 - ‘integrated process within
business’, stage 3 - ‘integrated process between businesses’, and stage 4 - ‘strategic management and new
business model development’ are 9.1%, 5.7%, and 4.6%, respectively (refer to figure 37).
Figure 37 IT Utilization Index and Distribution of Businesses By Development Stage

(points)
Distribution of Distribution of Distribution of

IT Utilization Index IT Utilization Index IT Utilization Index
Businesses(%) Businesses(%) Businesses(%)
98.3
94.6 95.3
80.6 86.5 86.4 88.5
82.3 82.3
71.4 65.4 71.0
44.7 59.2
33.6
9.1 5.7 16.4 9.9
4.6 8.3 0.6 0.7 0.4
1Level 2Level 3Level 4Level 1Level 2Level 3Level 4Level 1Level 2Level 3Level 4Level
(A) Total (B) Large Businesses (C) SMEs
43
In terms of business size, 65.4% of large businesses and 98.3% of SMEs are positioned at stage 1, ‘efficient
process’, but with the lowest level of IT utilization. Large businesses at stage 3 ‘integrated process between
businesses’ (95.3) and SMEs at stage 4 ‘strategic management and new business model development’(88.5)
have the highest IT Utilization Indices.

44
8. E-Commerce
8. E-Commerce
A. Total E-Commerce Volume
The e-commerce volume of Korea, as published by National Statistical Office, has shown a consistent
growth rate, reaching KRW 1,146.8 trillion in 2012, which is an increase of 14.7% from KRW 999.6 trillion
in 2011 (refer to Figure 38).
Figure 38 E-Commerce Volume By Year
Growth Rate (%) E-commerce Transaction (KRW)

1,400,000 40.0
1,146,806
1,200,000
999,582
30.0
1,000,000
824,392
800,000 630,087
672,478
20.0
516,514
600,000
413,584
358,450
314,079
400,000 10.0
200,000
33.6 14.1 15.4 24.9 22.0 6.7 22.6 21.3 14.7
0 0
2004 2005 2006 2007 2008 2009 2010 2011 2012
Note 1. Amount of social commerce transactions is included in cyber shopping transactions since 1Q of 2012.
Source: National Statistical Office, ‘2012 Year-round and 4Q Statistics on E-commerce and Cyber Shopping’, February 2013.
B. E-Commerce Volume By Transaction Type

B2B
The total B2B e-commerce transaction volume in 2012 reached KRW 1,051 trillion, which increased 15.1%
from KRW 912.883 trillion in 2011 (refer to Table 14).
Table 14 B2B E-Commerce Volume (x KRW 1 billion, %)
Year 2007 2008 2009 2010 2011 2012

Total Amount of 464,456 560,255 592,965 747,090 912,883 1,051,162
Transaction
(Growth Rate) (26.8) (20.6) (5.8) (26.0) (22.2%) (15.1)
45
As for the amount of B2B e-commerce transactions by industry type, manufacturing industry has 74.1% of
the entire transactions with KRW 751.70 trillion, followed by wholesale and retail with KRW 159.549
trillion (15.2%), and construction with KRW 83.813 trillion (8.0%) (refer to Table 15).
Table 15 B2B E-Commerce Volume By Industry Type (x KRW 1 billion, %)
Transaction
2011 2012
(from previous year)
Type
Increased
Share Share Growth Rate
Amount
Total Amount of Transaction 912,883 100.0 1,051,162 100.0 138,279 15.1
- Manufacturing 635,965 69.7 751,007 71.4 115,042 18.1
- Electricity/ Gas/ Water 10,039 1.1 7,413 0.7 -2,626 -26.2
- Construction 71,264 7.8 83,813 8.0 12,549 17.6
- Wholesale/ Retail 146,174 16.0 159,549 15.2 13,375 9.2
- Transportation 18,066 2.0 14,918 1.4 -3,148 -17.4
- Information and Communications 20,415 2.2 22,371 2.1 1,956 9.6
- Other 10,959 1.2 12,091 1.2 1,132 10.3
Source: National Statistical Office, '2012 Year-round and 4Q Statistics on E-commerce and Cyber Shopping', February 2013.
B2G
The 2012 B2G e-commerce volume accounted for KRW 62.478 trillion, which increased 7.0% from the
previous year. Of this amount, the volume of purchasing goods and services increased 17.8% from the
previous year to KRW 36.726 trillion, and the construction contract volume decreased 5.3% to KRW 25.752
trillion (refer to Table 16).
Table 16 B2G E-commerce Volume

(x KRW 1 billion, %)
Transaction
2011 2012
Type
Increased
Amount
Total Amount of Transaction 58,378 100.0 62,478 100.0 4,100 7.0
- Purchase of goods and services 31,176 53.4 36,726 58.8 5,550 17.8
- Construction Contract 27,202 46.6 25,752 41.2 -1,450 -5.3
B2C/C2C
The 2012 transactions through online shopping increased 17.2% to KRW 32,347 trillion from KRW 29,072
trillion in 2011.

46
8. E-Commerce
Table 17 Online Shopping Transaction Volume

Year 2007 2008 2009 2010 2011 2012
Total Amount of
Online Shopping 15,766 18,146 20,643 25,203 29,072 32,347
Transactions
(Growth rate from
(17.1) (15.1) (13.8) (22.1) (15.4) (17.2)
previous year %)
Of this amount, B2C transaction volume accounted for KRW 21.362 trillion, which was a 15.3% increase
from 2011. The amount of C2C transactions also increased 20.6% to KRW 12.706 trillion (refer to Table 18).
Table 18 Online Shopping Transaction Volume By Type

Transaction
2011 2012
Type
Increased
Amount
- B2C1 18,533 63.7 21,362 62.7 2,829 15.3
2
- C2C 10,539 36.3 12,706 37.3 2,167 20.6
Note 1: Amount of social commerce transactions is included in cyber shopping transactions since 1Q of 2012.
Note 2: B2B and B2G transactions from online shopping are partly included (C2C transaction volume is measured by subtracting the amount of B2B transactions
from the total amount of online shopping transactions.)
Transaction volumes increased in travel and reservation services (37.2%), food and beverages (35.0%),
life/automobile-related products (20.1%), and home appliances/electronics/communication devices (15.8%);
whereas the volume decreased in software (-12.8%) and flowers (-8.9%) (refer to Table 19).
Table 19 Online Shopping Transaction Volume By Product Type

Transaction
2011 2012
Type
Increased
Amount
- Computer and peripherals 2,808 9.7 3,063 9.0 255 9.1
- Software 93 0.3 81 0.2 -12 -12.8
- Home appliances/ electronics/
3,238 11.1 3,751 11.0 513 15.8
communication devices
- Books 1,274 4.4 1,273 3.7 -1 -0.1
- Audio discs/ videos / musical
152 0.5 142 0.4 -11 -7.0
instruments
- Travel and reservation services 4,066 14.0 5,577 16.4 1,511 37.2
47
Table 19 Online Shopping Transaction Volume By Product Type
Transaction
2011 2012
Type
Increased
Amount
- Children/ baby products 1,539 5.3 1,658 4.9 119 7.7
- Food and beverages 2,142 7.4 2,892 8.5 750 35.0
- Flowers 49 0.2 45 0.1 -4 -8.9
- Sports/ leisure products 1,215 4.2 1,334 3.9 119 9.8
- Life/ automobile products 3,044 10.5 3,655 10.7 611 20.1
- Clothing/ fashion products 4,869 16.7 5,550 16.3 681 14.0
- Cosmetics 1,605 5.5 1,946 5.7 340 21.2
- Office supplies/ stationeries 357 1.2 415 1.2 58 16.1
- Agricultural and marine products 821 2.8 956 2.8 135 16.4
- Various services 135 0.5 523 1.5 387 286.1
- Others 1,663 5.7 1,207 3.5 -456 -27.4

48
9. Informatization of Agriculture and Fishing Industries
9. Informatization of Agriculture and

Fishing Industries
ICT convergence in the agro-food industry means creating new added values by applying ICT to the value
chain of production, distribution and consumption of agro-foods. R&D was carried out for ICT convergence
technology using USN, RFID, LED, and other technologies applicable to the agro-food industry, and
element technologies were verified through pilot projects. Such efforts enabled constant improvement of
technologies and finally led to establish the foundation for expanded application of the technologies in the
field. Against this backdrop, Korea started projects for developing an ICT convergence business model for
agro-food industry in 2010, and an accumulated total of 20 projects have been conducted so far, including 5
projects in 2013 and another 5 in 2012.
As the result, greenhouse facilities and piggeries experienced improved productivity and income from
optimization of the environment for growing plants and raising pigs using ICT convergence technologies. As
for the items like paprikas in Gyeongnam Province and strawberries in Jeonnam Province, the farmers
Area Overview Description and Applied Technology

�Sensing-based facility control and growth environment
Environment control management
in greenhouse * Environment sensor: temperature/humidity, CO2, pH, LED, IR
horticulture
* Facility sensor: blackout, windows, awnings, ventilators
Precise
Production �Sensing-based environment control and feeding/disease
Intelligent piggery management
management * Environment and facility sensor: temperature/humidity,
ammonia, CCTV, etc.
* Web-based cloud service
�Management of distribution centers and

Intelligent Distribution center
production/process/distribution management
Distribution in producing area,
* ERP(warehousing - selecting - processing - packaging
ERP/SCM
storing - shipping), SCM(receiving/placing orders), RFID, PDA
�Management of quality and safety, identification of the amount

of circulated products
Safe Traceability system �Collection of history information on production/ process/
Consumption distribution
* RFID-based traceability management (Farm2Table)
�Farm tours (experiential information, weekend farms, culture,

Revitalized festivals, etc.)
u-Fam Tour * GIS/GPS-based location information service
Farms
* Fire sensors on cultural properties and tourist sites
49
experienced a 20% decrease in labor cost and a 30% increase in productivity by establishing and using the
optimized production environment system through temperature-humidity and CO2 sensing and monitoring,
remote control of side windows, skylights, nutrient solutions and water, and using the accumulated database.
The productivity of pig breeding management in Jangsu, Jeonbuk Province, improved by 17% through
temperature-humidity and CO2 sensing and monitoring, automatic control of feeding and drinking, and
management of production, shipping and tracking (refer to Table 20).
In addition, a consumption safety management framework was established through traceability management
of production, distribution, and consumption stages of agro-products, which further contributed to improving
consumer trust. Wanju Local Food in Jeonbuk Province, saved 20% in management expenses by installing
and utilizing the information system for production, distribution, and sales management. Geochang Local
Food in Gyeongnam Province, saved 20% in labor cost and gained 20% in income through management of
production and distribution of eco-friendly agro-products for school meals.
In the meanwhile, the Master Plan for ICT Convergence was established in July 2012, defining policy goals
and targets and finally establishing the foundation for ICT convergence policies in agro-product industry.
From May to June 2013, 40 experts from the industry, academia, research institutions and the government
organized an advisory group for ICT convergence in agro-food area, which developed measures for
expanding ICT convergence in agro-food, along with the vision and goals, action items that are highly
applicable in the field, and plans to build an agro-food ICT industry ecosystem.

50
A. Intelligent Transport System (ITS)

ITS is a transport system in which cutting-edge technologies regarding electronics, control, and
communications are applied to transport means and facilities and transport information is developed or used
to make operation of the transport system more scientific and automatic, as well as enhance its efficiency and
safety.
ITS project in Korea was started by the academia in the 1990s as a measure to mitigate traffic congestions
and damage from accidents, and then discussions were made regarding developing a cutting-edge transport
system by applying information and communication technologies to transport operation and management
skills. After holding the 1998 ITS World Congress in Seoul, the Korean government enacted the ‘Act on
Streamlining the Transport System’ the following year, which included ‘making the transport system
intelligent’, in order to implement and expand the intelligent transport system and establish the legal ground
for project implementation. It also organized a corporation called Intelligent Transport Society of Korea (ITS
Korea) to build a framework for close collaboration among the government, public institutions, industries,
academia, and research institutions.
After that, the Ministry of Land, Infrastructure and Transport established the ‘Master Plan 21 for Intelligent
Transport System’ in 2000 for continuous and efficient implementation of ITS. Based on the plan, the
Ministry decided to support R&D for local governments and the private sector to obtain technologies
required for ITS construction and operation, and revise law and regulations for efficient project
implementation. Also to ensure interoperability and compatibility between systems operated and managed by
different players, the Ministry defined an ITS architecture at the national level and developed and managed
the ITS standards for efficient ITS project implementation.
Since 2000, five technology standards have been developed as the national ITS standards including those for
ITS standard node/link construction, inter-center transport information exchange technology, bus information
exchange technology, and DSRC-based technology, and 47 collective standards have been defined for ITS
market facilitation. These efforts established a supportive framework for applying ITS standards of Korea
and review such application, further achieving standardization of a national ITS. In addition, performance
evaluation of onsite data loggers that make up ITS was made compulsory, further improving the quality of
transport information and services provided through ITS.
In order to develop and expand use of ITS in the areas of land, sea, and air transport, making of the ‘Act on
Streamlining the National Integrated Transport System’ was completed in 2009, ‘ITS Master Plan 2020’and
51
‘Master Plan for Sustainable National Transport and Logistics Development (2011~2020)’ were established
in 2011. In 2013, the ‘ITS Action Plan’ was established with the help of a total of 84 institutions covering the
land, sea, and air, providing a long-term plan for national ITS development.
Based on the interests of the government, industries, academia, and research institutions and their constant
investment on ITS, the ITS architecture building was completed, laying the foundation for ITS application by
early 2000. In 2002, the project for building the cutting-edge transport model cities was carried out in cities
of Daejeon, Jeonju, and Jeju. This project led to some tangible achievements in transport management using
transport data, and by the end of 2012, the ITS project came to be expanded to local governments throughout
the country in various forms - ATMS (Advanced Traffic Management System), BIS (Bus Information
System), BMS (Bus Management System), etc.
As for the expressways, Korea Expressway Corporation took the initiative to adopt FTMS (Freeway
Management System) for the section of Seoul-Daejeon on Gyeongbu Expressway in 1993. In 2000, the
FTMS application was expanded to the entire expressways of the country. In 2006 and 2007, Hi-pass was
launched throughout the country and a project was carried out for adopting the transport data collection
system using DSRC technology. As the result, Korea Expressway Corporation has built FTMS in all sections
of expressways, which are 4,044 kilometers long, and has since been operating and managing them so far as
of the end of 2012.
B. Policies for National Spatial Information

Since 1995, the Korean government has enforced policies that produce, distribute, and utilize various types
of spatial information, which is often used by public institutions as well as businesses and the general public,
based on the 1st National GIS Master Plan. It has constantly solidified the foundation for national spatial
information that serves national policies and industrial activities by computerizing topographic and cadastral
maps that were produced in paper form, and building a national spatial information distribution system for all
to use the spatial information produced. Recently, with the rapid development of information and
communications convergence technologies such as the smart phone, and the governance paradigm shift to
the creative economy and Gov 3.0, the government established the ‘5th Master Plan for National Spatial
Information Policies’ to cope with the transforming policy environment.
The 5th Master Plan for National Spatial Information Policies sets out a vision of citizens’ happiness and
national development enabled by spatial information, and 3 goals - facilitating the creative economy through
convergence of spatial information, realizing Gov 3.0 through disclosing spatial information, and improving
the infrastructure of national spatial information. To back up efforts for the goals, it provides 7 strategies
including constructing, opening up, and expanding high-quality spatial information and 26 tasks including
securing spatial information quality and establishing the management scheme. For smooth implementation of
the plan, a collaborative framework for spatial information policies will be established, in which public
officials taking charge in spatial information of each institution will mainly participate.

52
C. Smart Grid
A smart grid, also called the intelligent electrical grid in Korea, is a next-generation electrical grid, which is
formed by application of ICT to the existing grid to enhance reliability, efficiency and safety and process
electricity production and consumption data on a real-time and bi-directional basis to optimize energy
efficiency.
Upon recognizing that achieving the goal of reducing greenhouse gas emissions urgently requires
establishing infrastructure for low-carbon green growth, the Korean government has continued to understand
the necessity to transform the society to one that is independent from energy and consuming less energy for
sustainable growth even under the recent energy crisis caused by high oil price and increasing resource
nationalism. After announcing the Smart Grid Roadmap in 2009, it constantly worked on making and
revising related laws and regulations. In 2012, it came up with the Master Plan for Intelligent Electrical Grid,
and in 2013, the Action Plan.
The policy vision of the smart grid roadmap was set as establishing the foundation for low-carbon green
growth through smart grid construction. Steps for achieving the vision are to build a world’s top-level smart
grid pilot city by 2012, to build consumer-oriented smart grid covering broader areas by 2020, and finally to
build the world’s first national-level smart grid by 2030. Detailed plans have been developed for each of five
areas - intelligent electrical grid, intelligent consumers, intelligent transport, intelligent renewal, and
intelligent electrical service. Based on such preparations, 168 businesses in the areas of electricity,
communications, and home appliances participated in investing a total of KRW 239.5 billion into building
‘Jeju Smart Grid Test-bed’ from December 2009 to May 2013, which will further invite more participation
and investment from the private sector businesses. The project of building smart grid hub cities has changed
its name to the project of smart grid expansion, and 8 potential providers were selected, including KT and
KEPCO for laying the groundwork for full-scale expansion of smart grid, which will start from 2015.
The government continued to revise related laws and regulations in order to enable realization of the smart
grid roadmap, mainly focusing on solving the issue of discordance between the roadmap and the existing
Electric Utility Act. However, as there were arguments that the Electric Utility Act, being the law regulating
providers, did not sufficiently support systematic facilitation of the smart grid converging electricity and IT,
enactment of the ‘Act on Intelligent Electrical Grid’ was worked on, which would enable stable construction
of the electrical-ICT convergence infrastructure and systematic facilitation of the convergence industry.
As the law specifies, the five-year plan for inviting the private sector investment and project facilitation, and
for legally supporting such efforts was established in 2012 and has been added with details from various
viewpoints. In addition, action plans for yearly project implementation have been established, which evaluate
yearly performances and further develop strategies.
53
A. Internet Infrastructure
Securing IP Addresses and AS Numbers
Upon Internet Assigned Numbers Authority(IANA)’s IPv4 exhaustion announcement on 3 February 2011,
Asia Pacific Network Information Center (APNIC) announced that it would also stop allocating IPv4
addresses for the first time in the world in April the same year, and started the final/8 policy. APNIC’s
change of IPv4 address allocation policy also led Korea to start the final/8 policy. Unlike the existing method
of allocating IPv4 addresses based on the amount of IPv4 addresses requested by an ISP, the ‘final/8 policy’
allocates maximum 1,024 IPv4 addresses per ISP’s request, which is limited to one time only. This policy
has been in effect since 15 April 2011, the following day of when the remaining number of IPv4 addresses
owned by APNIC became ‘16,777,216’. Considering the fact that the remaining IPv4 addresses is very few
compared to the total number of (about 4.3 billion) and that addresses which can be allocated are limited,
IPv4 addresses can be said as virtually exhausted. As of September 2013, Korea owns about 112 million
IPv4 addresses, ranking 6th in the world, 5,239 IPv6 addresses, ranking 9th in the world, and 1,015 AS
numbers, ranking 12th in the world (refer to Table 21).
Table 21 Internet Address Resources of Each Country
IPv4 Addresses IPv6 Addresses AS Numbers

Rank Country No. of IPv4 Rank Country No. of IPv6 Rank Country No. of AS
1 US 1,575,748,480 1 US 27,446 1 US 22,497
2 China 330,275,328 2 China 16,660 2 Russia 5,025
3 Japan 201,678,848 3 Germany 11,768 3 Brazil 2,173
4 UK 123,654,032 4 Japan 11,244 4 Ukraine 2,061
5 Germany 119,519,080 5 France 9,212 5 UK 1,939
6 Korea 112,269,056 6 Australia 8,641 6 Poland 1,879
7 France 95,858,192 7 EU 6,228 7 Germany 1,694
8 Canada 80,948,224 8 Italy 5,268 8 Canada 1,636
9 Brazil 64,667,904 9 Korea 5,239 9 Australia 1,535
10 Italy 53,177,760 10 Argentina 4,285 10 Romania 1,515
11 Australia 47,887,104 11 Egypt 4,105 11 Japan 1,047
12 Russia 45,579,808 12 UK 2,820 12 Korea 1,017
13 Netherlands 45,524,736 13 Poland 2,602 13 France 988
Source: Korea Internet Security Agency, September 2013.

54
Transition to IPv6 Addresses
Korea is carrying forward the spread of IPv6 use in Korea with government plans established five times
already. Based on the ‘Plan for Transition to IPv6’, established in 2010, three tasks were selected for constant
facilitation of IPv6 adoption - ‘to build a foundation for IPv6 commercial services’, ‘to improve awareness
on IPv6 transition and support the disadvantaged’, and ‘to improve IPv6 implementation framework’, along
with strategies and action plans under the vision of early achievement of IPv6-based next-generation Internet
services. Projects for IPv6 services include creating demand for various fixed and wireless IPv6 services,
identifying problems and improvements in IPv6 operation, implementing projects supporting IPv6-based
commercial services, developing pilot projects for IPv6 application in portal, wireless communications
network (LTE, WiFi, etc.), and cable network services, and facilitating ISPs and content service providers to
use IPv6 equipment, all of which provide the basis for actual development of commercial services.
In December 2012, in particular, the three communications service providers (KT, SKB, and LGU+) who
own nation-wide network, signed an agreement on applying IPv6 to their backbones and IXs. By applying
IPv6 on their backbone networks, the path for IPv6-based Internet traffic has been secured, along with the
environment for providing commercial IPv6 access services, finally creating the base for increasing IPv6
users. IPv6-based Internet services are now expected to be provided upon user request.
In May 2012, an event called ‘Korea IPv6 Day’ was held to review the state of and expand IPv6 adoption in
Korea. 22 institutions including ISPs, portals, and manufacturers participated in the event and tested out
Table 22
Public-Private Collaborative Projects for Establishing the Foundation for IPv6-based Commercial
Services
Plan Achievements
�IPv6-based web services and networks were established for web hosts and web service providers
(2010 and 2012)
IPv6-based
- Increased number of institutions providing and using IPv6-based fixed Internet services
Commercial
- Guidelines were made for web service providers to adopt IPv6
Web Service
- IPv4- and IPv6-based web hosting systems were constructed and services provided
*131 institutions provided IPv4/IPv6 web services
IPv6-based IPTV �IPv6 was applied to the cloud IPTV network and various contents were provided (2010)
Service - IPv6 was applied to N-screen, web, and game services, and technology analysis was carried out
� IPv6 was applied to 3G mobile communications network and mobile services were provided (2010)
- Guidelines were developed for IPv6 application to wireless network and common issues on
application were shared
IPv6-based Mobile
* Information on the status of lack of IPv6 application to wireless terminals was shared and
Communications
improvement measures were identified
Network
�Environment for IPv6-based services on LTE network was established (2012)
- IPv6 was applied to LTE and WiFi network, establishing the foundation for commercial service
provision
IPv6-based Cable �Actual subscription was made to IPv6 by applying IPv6 to cable network (2011)
Network - The latest IPv6 transition technology (6RD) was developed
- Guidelines were made for cable network providers' IPv6 transition
Source: Korea Internet Security Agency
55
technologies for securing IPv6 access path and using IPv6 in commercial network to access websites.
In addition, Korea Internet Security Agency has carried out a project for operating a comprehensive
supportive framework for the next-generation Internet since 2008 in order to establish the foundation for
IPv6 adoption in Korea. In 2012, as part of efforts to support commercialization of the IPv6-based Internet
services, it developed the IPv6-based web services and wireless network(LTE) services through public-
private collaboration, and is now trying to secure IPv6 service coverage, expand the number of institutions
using IPv6, and facilitate the equipment industry (refer to Table 22).
B. Future Network
Giga Internet
As a project for establishing the environment for Giga-level fixed and wireless network that is up to 10 times
faster than the current network, the Giga Internet aims to solve the issue of data explosion caused by the
increasing high-capacity, high-quality, and immersive multi-media services and use of various smart
terminals. To maximize added values of ICT-based future creative industry after the BcN project, and to
position itself as the world’s leading country in terms of ICT infrastructure, the Korean government selected
Giga Internet as one of the government projects in 2009, and has since been carrying it out.
In this regard, then Korea Communications Commission (current Ministry of Science, ICT and Future
Planning) established the ‘Plan for Developing and Promoting Giga Internet’ in April 2009, and assigned
National Information Society Agency to take full responsibility of the project. With participation of
broadcasting and communications service providers, content producers, and equipment businesses, it is
carrying out pilot projects for building a pilot network that delivers Giga-level Internet services to homes at
speed 10 times faster than the maximum speed of 100Mbps for BcN, developing pilot services, and creating
the environment for technology development.
Through pilot projects that are based on the public-private matching fund system, Giga-level pilot network
was built and high-quality, high-capacity broadcasting and communications convergence models for the
future have been developed for providing pilot services, such as UHDTV for homes, glassless 3D digital
signage, cloud-based cross-platform 3D media services, etc. In 2008, testing and verification of the Giga
Internet technologies were completed already through BcN project, and lead projects are being carried out
from 2009. The goals are to achieve the Giga Internet coverage of 15% by 2013, expand the coverage to
40% by 2015, and complete 90% of the nation-wide network by 2017.
In 2012, a pilot project for facilitating the Giga Internet, which provides pilot services to subscribers by
building pilot networks in 7 cities and developing Giga-level service models, and a project for establishing
the environment for Giga Internet facilitation were carried out.

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Future Network Technology
As network technologies converge with other industries and the Internet data traffic explodes, demand for
new network technologies is increasing, which can flexibly adapt to the changing environment, and each
country around the world is actively investing into development of new network technologies that will serve
as the infrastructure for future convergence industries.
The trends of future network technologies currently being developed by major countries can be classified
mainly into two. One is developing innovative network structure and technologies that will solve the
complexity and high-cost structure of the current network; and the other one is using the current network
equipment to develop technologies that will gradually find solutions to the problems, and applying the
solutions to the current network for constant improvement.
(1) Smart Internet Technology

Smart Internet means a flexible fixed and wireless ICT infrastructure that provides the optimized
environment (QoE: Quality of Experience) for innovative application and services through close connection
of computing and networking resources and their integrated control, disclosure and sharing. Establishing the
smart Internet is being carried out in two stages - the first stage (2013~2016), aiming to build infrastructure
for the smart Internet, plans to construct the backbone network based on smart node, virtualization, and
SDN/open flow technologies applied on KOREN, apply fixed and wireless integrated access network, and
establish a service-oriented R&D framework; the second stage (2017~2020) will establish a smart Internet-
based service ecosystem, improve the ecosystem of the creative economy industries and related laws, and
promote commercial use of the smart Internet.
Smart Internet technologies include a wide range of technologies such as cloud network, CDN, and SDN.
Recently emerging as one of the major issues is SDN, which is described below.
(2) SDN Technology

SDN, or Software Defined Networking, is the key technology of the future network that enables flexible
network structure in the smart Internet allowing easy modification of network functions by separating
network transmission units and their controllers using the standard interface called OpenFlow. It also enables
remote and centralized management. Since SDN pursues an open structure, the Open Networking
Foundation (ONF) was established in March 2011 for standardizing SDN technologies and their application
in the industries. ONF is currently developing OpenFlow standards, which has been so far completed up to
version 1.3.3.
Unlike the United States’ ONF that pursues SDN based on virtualization of network resources, the Network
Function Virtualization (NFV) was developed in Europe, focusing on convenient use of network functions,
which later became one of the Industry Specification Groups (ISG) of the European Telecommunications
Standards Institute (ETSI). SDN and NFV are complementary to each other, rather than competing, and they
will be companions required for industrialization of the future Internet.
57
(3) Optical Communication Technology
Korea is making efforts to continue to maintain the leading position in optical transmission technology and
optical switch-based network system technology, which are key to building the broadband network. NG-
PON (next generation passive optical network) is being upgraded to NG-PON2, and upon developing the
prototype in 2013, it will be further upgraded to NG-PON3. Optical network systems, mainly focused on
access network application, are expanding through metro and core networks to layered integration systems,
for which optic/line/packet-integrated tera-level carrier ethernet system is being developed. Also to improve
optical transmission technology that serves the base for optical transmission network, Korea is also
developing SDM (Space-Division Multiplexing) technology.
To keep up with evolving optical communication technologies, it also plans to develop element technologies
for the next generation optical technologies - Port Agnostics, OFDM (Orthogonal Frequency-Division
Multiplexing), and adaptive PON.
Internet of Things
Technologies are becoming more advanced beyond mobile-based machine-to-machine (M2M)

communication, which collects, processes, and delivers information of things in an intelligent way based on
expanded communications infrastructure connecting machine, to Internet of Things (IoT/M2M), which is an
‘intelligent technology and service that connects all objects using ICT and communicates information
between things. In particular, Ministry of Science, ICT and Future Planning, launched in 2013, envisions a
creative economy where creative ideas are realized through engines of big data, cloud, and IoT for
facilitating new Internet industry. Along with the recent penetration of intelligent devices like smart phones
and smart cars and new markets created, they are expected to grow as the mainstream technologies within 5
to 10 years with their markets experiencing accelerated growth.
To cope with the changing IoT market environment, Korea Communications Commission (KCC) selected
2012 as the year of building foundation for M2M and set forth various policies for four key tasks of
developing and standardizing M2M technologies, fostering manpower, supporting demand facilitation, and
creating industrial infrastructure.
In 2012, a task of ‘developing the distributed terminal communication technology for real-time mobile
adjacent service (2012~2014)’ was carried out, which enables, through the mobile frequencies currently in
use, direct communication between user terminals in daily life such as the real-time mobile augmented
reality and social network services, ultimately to help create various application models of M2M in everyday
life. Implementing this task led to development of a module for direct communication between terminals that
can extend transmission distance up to three times and standardization of direct communication technologies.
At the same time, M2M service standardization has been worked on based upon cooperation of the
industries, academia, and research institutions in the areas of M2M application (healthcare, telematics, smart

58
home/appliances, smart grid, etc.). Currently, a task for ‘developing open M2M service technology standards
(2012~2015)’ is being carried out, which aims to include domestic technology in one M2M, a global
partnership for M2M standards where 7 global institutions for standardization and other M2M-related
businesses participate.
KCC’s projects for 2012 saw the following results. After building and operating an M2M test-bed (M2M
Support Center, MSC), 135 new members subscribed (249 accumulated members) and they used the center
321 times. In terms of technical assistance, it provided 25 cases of technical consulting, training programs on
equipment operation (October), and a seminar for technical discussions (December).
Efforts were also made for global standardization of domestically developed M2M technologies. In 2012, 18
proposals to ITU-T were approved, 1 proposal was made to oneM2M, and 6 proposals for TTA group
standards were approved and adopted.
With the launch of the Ministry of Science, ICT and Future Planning in 2013, the M2M project of KCC was
changed to IoT/M2M, expanding the scope to include Internet of Things. Comprehensive policies for
IoT/M2M are currently being developed accordingly.
59
12. ICT Industry
A. ICT Industry Exports and Imports
Overview of ICT Industry Exports and Imports
ICT exports in 2012 decreased 0.9% from 2011 and reached USD 155.2 billion, ICT imports also decreased
4.4% to USD 78 billion, and ICT trade balance hit USD 77.3 billion, which is the second largest in history.
Though ICT exports showed a slight decrease due to worsening conditions in the Euro Zone, the exports in
the second half of 2012 recovered to the growth rate of 3%, which led the entire exports of 2012. Also with
increased competitiveness of the weaker areas like system semiconductors, the trade surplus gained was
about 2.7 times the surplus of the entire industry trade, which is USD 28.3 billion.
ICT exports decreased by 0.9% from the previous year due to external difficulties, but increased exports of
hardware-software converged items like system semiconductors and smart phones in the second half of 2012
helped recover the export growth and even reached the highest half-term record. Main causes of the
decreased ICT exports in the first half were decreasing global demand for major items like memory
semiconductors and displays due to lowering price, and increasing overseas production of mobile phones.
ICT exports in 2012 can be represented by upswing in system semiconductors and software, which are at the
core of convergence and smart technology trends. As for semiconductors, the system semiconductor export,
which increased 23% to USD 24.5 billion from the same period of the previous year, exceeded the memory
semiconductor export (USD 19.3 billion, -18.0%) for the first time in history. As for the software sector, the
export of industrial and security-related packaged software increased, reaching the USD 2 billion mark
(excluding embedded software) for the first time in history.
On the other hand, ICT imports decreased 4.4% to USD 78 billion. Though imports of system
semiconductors, PCBs, and other main connection components (mechanical components) increased,
enhanced competitiveness of domestic businesses in smart devices like smart phones and tablet PCs caused
decrease in ICT imports.
Increased domestic demand for components such as system semiconductors and PCBs, and the import of
computers and peripherals like tablet PCs are evaluated as having led the increased ICT imports (refer to
Table 23).

60
12. ICT Idustry
Table 23 Exports and Imports of ICT Industry and All Industries

(x USD 100 million, %)
2011 2012
Type
1H 2H Whole year 1H 2H Whole year
All 2,736 (23.6) 2,816 (14.9) 5,552 (19.0) 2,750 (0.5) 2,729 (-3.1) 5,479 (-1.3)
Export
ICT 773 (6.2) 793 (-2.3) 1,566 (1.7) 732 (-5.3) 820 (3.4) 1,552 (-0.9)
All 2,582 (26.7) 2,662 (20.2) 5,244 (23.3) 2,641 (2.3) 2,555 (-4.0) 5,196 (-0.9)
Import
ICT 406 (15.1) 409 (1.5) 815 (7.8) 380 (-6.4) 400 (-2.4) 780 (-4.4)
All 153 155 308 109 174 283
Balance
ICT 367 384 751 353 420 773
Source: Korea Customs Service, National IT Industry Promotion Agency, March 2013.
Exports by Item
In terms of cellular phone exports, the share of Korea-exported smart phones exceeded 30%, thanks to
increased competitiveness in the smart phone industry with middle-low price as well as high-end phones like
LTE, and Korea was placed the world’s top13) in cellular and smart phone exports for two consecutive years.
Release of new smart phones and increased competitiveness caused smart phone export increase for four
consecutive months including September by 7.6% and December by 10.7% after a decrease in August by
26.6%.
As for semiconductors, system semiconductors sector, which had been one of the major items causing trade
deficit, gained competitiveness and guided export increase, reaching the export volume of USD 50 billion for
three consecutive years14). The share of system semiconductors in the global market15) and exports increased a
lot thanks to improved competitiveness in the mobile sector including mobile AP. Even after the competing
company, Elpida, announced bankruptcy, the memory semiconductor export of Korea showed a slight slump
due to the falling prices caused by the shrinking global PC market, but its share in the global market
expanded from 65.3% last year to 65.7%.
In the display sector, while panel export continued to recover, OLED emerged as one of the major export
items. Display panel export increased 1.7% to USD 31.9 billion from differentiated expertise of domestic
companies and increased demand for mobile devices. In particular, OLED export increased 128% to USD
4.06 billion, leading display exports of Korea.
Due to the global market slump16) and increased overseas production, TV export decreased 19.4% to USD
6.3 billion, but export of large-sized premium TVs, including LED TVs, is constantly increasing. As for
13) Korea's share of smart phones in global market (SA, %): (2009) 4.2, 6th →(2010) 10.0, 4th→(2011) 24.0, 1st →(2012) 29.6, 1st
Korea's share of cellular phones in global market (SA, %): (2009) 30.3, 2nd→(2010) 29.9, 2nd→(2011) 27.5, 1st →(2012) 35.3, 1st
14) Semiconductor export: ('10) USD 50.71B→(2011) USD 50.15B, -1.1%→(2012) USD 50.44B, 0.6%
15) Korea's share of system semiconductors in the global market (iSuppli, %): (2009) 2.9→(2010) 3.3→(2011) 4.3→(2012) 5.4
16) Forecasted volume and growth of global flat-panel TV market (DisplaySearch): USD 105.8B, -5.7%
61
computer and peripherals, increased export of tablet PCs and SSDs even in the stagnated global PC market17)
led to USD 7.7 billion of exports, a 1.3% increase from the previous year.
As for the software export, accelerated entry into overseas markets through establishment of overseas
corporations of software companies and IT service providers’ acquisitions of software companies increased
the software export by 57.2% to USD 2.24 billion, hitting the USD 2 billion mark (excluding embedded
software) for the first time in history. The conditions for ICT exports in the future are expected to improve,
with gradual recovery of the global ICT market, increased penetration of smart phones in the emerging
markets, and increased demand for system semiconductors. In this regard, the global research institution
Gartner forecasts the global ICT market to grow 1.2% in 2012 and 4.2% in 2013 (March 2013). As the
component market of memory semiconductors and display panels, which are Korea’s major export items,
along with the finished goods market, like the cellular phone market, is expected to grow together, ICT
exports of 2013 are expected to hit the USD 160 billion mark and a surplus of USD 80 billion for the first
time in history (refer to Table 24).
B. Convergence of IT and Other Industries and Commercialization of

New Technology Services
New technology service industry, represented by RFID and USN, aims to rear future new industries through
focused support on developing key and original technologies in strategic areas for national growth, improve
growth potential of the Korean economy, create quality jobs through developing new services, and increase
its share in GDP through improved service productivity to respond to opening up of the service market.
Emerging as a new growing industry based on IT convergence, Korea's new technology service industry will
have its share in the global market through national support for developing key and original technologies and
making businesses.
RFID-based Production System
Hanmi Pharmaceutical Company, a Korean pharmaceutical company, went through IT convergence-based

enterprise-wide management innovation by using RFID tagged on the entire drug items for the first time in
the world. It also built RFID-based production system, which is used in demand prediction, automatic
decision of production amount, and smart marketing. This system allowed the company to maintain the
optimal inventory, reduce delivery cost and product return rate, ultimately saving more than KRW 10.6
billion (about 2% of sales cost) per year.
17) Forecasted volume and growth of global PC market in 2012 (Gartner): USD 22.74B, -7.5%

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12. ICT Idustry
Table 24 ICT Exports by Item (USD 100 million, %)
Type 2008 2009 2010 2011 2012

Export 4,220.1 3,635.6 4,664.0 5,552.1 5,478.7
(Growth rate) (13.6) (-13.9) (28.3) (19.0) (-1.3)
All Industries
Import 4,352.7 3,230.9 4,252.5 5,244.1 5,195.8
(Growth rate) (22.0) (-25.8) (31.6) (23.3) (-0.9)
Balance -132.7 404.7 411.5 308.0 282.9
Export 1,311.6 1,209.5 1,539.4 1,566.2 1,552.4
(Growth rate) (0.8) (-7.8) (27.3) (1.7) (-0.9)
Share in the entire
(31.1) (33.3) (33.0) (28.2) (28.3)
industries
ICT Industry Import 735.2 620.2 756.2 815.4 779.5
(Growth rate) (5.4) (-15.6) (21.9) (7.8) (-4.4)
Share in the entire
(16.9) (19.2) (17.8) (15.5) (15.0)
industries
Balance 576.4 589.3 783.2 750.8 772.8
Information and Communication Equipment 1,195.5 1,098.1 1,387.6 1,368.8 1,318.2
(Growth rate) (0.1) (-8.1) (26.4) (-1.3) (-3.7)
Electronic Parts 637.1 627.2 913.0 891.3 912.3
(Growth rate) (-2.7) (-1.6) (45.6) (-2.4) (2.4)
Semiconductors 327.9 310.4 507.1 501.5 504.3
(Growth rate) (-16.0) (-5.3) (63.4) (-1.1) (0.6)
Memory semiconductors 170.3 158.7 284.7 235.3 192.9
(Growth rate) (-24.0) (-6.8) (79.4) (-17.3) (-18.0)
Flat-panel display 257.0 265.2 337.7 313.8 319.2
(Growth rate) (19.1) (3.2) (27.3) (-7.1) (1.7)
Computers and peripherals 97.5 69.8 77.1 76.2 77.2
(Growth rate) (-23.9) (-29.0) (10.4) (-1.1) (1.3)
Computers 4.1 4.7 10.1 14.0 17.3
(Growth rate) (25.9) (16.0) (114.5) (38.4) (23.7)
Peripherals 76.2 52.6 54.2 50.7 50.7
(Growth rate) (-25.8) (-30.9) (2.9) (-6.4) (0.1)
Communication and broadcasting equipment 360.3 309.7 277.7 278.1 228.7
(Growth rate) (17.5) (-14.0) (-10.3) (0.1) (-17.8)
Fixed communication equipment 13.9 10.5 13.3 10.9 8.3
(Growth rate) (3.1) (-24.1) (26.2) (-18.0) (-24.1)
Wireless communication equipment 345.1 298.0 262.0 264.9 217.8
(Growth rate) (18.2) (-13.7) (-12.1) (1.1) (-17.8)
Cellular phones 334.4 286.7 248.9 250.5 202.3
(Growth rate) (19.1) (-14.3) (-13.2) (0.6) (-19.3)
Video and audio equipment 89.9 80.4 104.9 107.0 91.8
(Growth rate) (-3.9) (-10.6) (30.4) (2.1) (-14.2)
Magneto-optical media 10.7 11.0 14.9 16.2 8.2
(Growth rate) (-5.2) (3.3) (34.8) (8.8) (-49.2)
ICT application/ broad IT 116.2 111.4 151.9 197.3 234.2
(Growth rate) (9.0) (-4.1) (36.3) (29.9) (18.7)
Source: Korea Customs Service, National IT Industry Promotion Agency, March 2013.
63
u-Health
u-Health is defined as a healthcare and medical service that can be used ‘anytime and anywhere’ through IT
application in the healthcare industry. Increased use of u-health means increased space, providers, time, and
consumers as well as more diverse healthcare services. Under the u-Health system architecture, it first
measures bio-data of a patient or customer, then collects the measured data and delivers, and then analyzes
the pattern in the data and delivers the feedback on the result to the user. There are largely three types of u-
Health services. For patients (high-risk group), u-Medical provides services on disease diagnosis, treatment,
management and environmental support provision, to which the medical law is applied. u-Wellness is for the
general public and provides preventive healthcare services by supporting the healthcare environment and
providing related services. u-Silver is for the elderly citizens aged 65 or over, which provides not only
disease diagnosis, treatment, and management services but also safety management and independent living
services. There are still many issues to be solved for the u-Health pilot project to expand to the national level
- such issues include responding to the urgent need for constant support and law improvement for
infrastructure building and operation, establishing standards and stability criteria for interoperability of u-
Health devices, establishing a quality management framework to guarantee the quality level of tele-medicine
and healthcare services, and maintaining close cooperative relationships with international organizations and
related institutions for overseas expansion.
Monitoring Robots
The volume of the entire global robot industry market as of 2008 was USD 9.37 billion, but it is a future
industry that has high potential to grow to form a global market worth USD 170 billion by 2020. Especially
as robots are receiving attention in the areas of healthcare service and social safety service, IT application in
the healthcare sector is being actively carried out not only in the software sector, such as Infinitt Healthcare’s
radiology software, but also in the hardware sector where Curexo and Meere Company are each developing
surgical robots. Curexo acquired ISS of the United States in 2007, started domestically producing
‘ROBODOC’, an artificial joint surgical robot that has both software and control features, received an FDA
approval for a precision automatic artificial joint surgical robot in 2008, sold ‘ROBODOC’ to 59 hospitals
worldwide as one of the world’s three major surgical robots with Makoplasty and da Vinci, and succeeded in
more than 28,000 surgeries. Samsung Techwin developed an integrated security system of visual perception
based guard and surveillance, obtained 41 patents (37 in Korea, 4 from overseas), and established strategic
partnership and a KRW 55 billion contract with the Algerian government for a ‘Pilot Project for Road
Control System’ using surveillance robots in May 2010.
Solution for Remote Management of the Amount of Electricity Used
Nuri Telecom developed a remote management solution (real-time measuring sensor plus information
system), which measures the amount of electricity used by hour and publishes the fare on the Internet, and is

64
12. ICT Idustry
exporting the solution to 520,000 homes of 13 countries including Sweden, Spain, Italy, and South Africa.
WiBro
Despite diverse policy measures for supporting WiBro, it is recently challenged by intense technology
competition. As LTE is globally spreading faster than expected, and major markets like the United States,
Russia, and India announced plans to adopt LTE rather than expand WiBro, rumors that LTE is the
mainstream and WiBro is at risk were widespread in the global market. The Korean government announced
its plan to increase the number of WiBro subscribers to 3.4 million by 2017 through frequency reallocation,
but in reality, the rapid spread of LTE is causing reduced justification and policy means of the existing
providers’ investment.
The number of WiBro subscribers in Korea rapidly increased from 450,000 at the end of 2010 to 800,000 in
2011. However, LTE penetration slowed down the increase to 200,000 for 10 months after hitting a million
mark in October 2012. In this regard, measures to expand the existing market and explore new market
opportunities are required by facilitating early commercialization of WiBro-Advanced(802.16m), which can
make faster market entry than LTE-Advanced, and accelerate entry of the 4th mobile communications
service provider.
65
A. Internet Incident Trend
Status of Internet Incidents
Compared to 2011 when a series of massive incidents broke out, the year 2012 still suffered from incidents
targeting businesses, though causing less damage, including various cyber threats, DDoS (Distributed Denial
of Service) attacks, and personal data leakage. Advanced attacks, beyond simple defacement of homepages,
directly caused financial damage by leaking confidential information of businesses, destroying internal
systems, and taking financial information through phishing sites, mobile malicious apps, or SMS.
First of all, mobile security threats became real from widespread use of smart phones. Android-based
malicious codes increased substantially throughout the world, and malicious apps targeting smart phone
users were constantly found in 2012 in Korea, too. They induced installation of malicious apps using diverse
methods - falsely representing as Korea Communications Commission and distributing false spam-blocking
app and alluring with telecom fee refunds, food companies’ mobile coupons, etc., and attempted stealing the
terminal information, contact information stored in the terminal, and payment/authentication information.
Second, APT (advanced persistent threats) to businesses and their hacking incidents continued in 2012.
Attacks that attempted to infect certain targets with malicious codes were often found in 2012. Businesses
constantly got attacked by complex hacking incidents like homepage defacement, internal computing
information leakage, and system destruction of major media companies, homepage hacking that led to
personal data leakage of 4 million members, and personal data leakage of 8.7 million mobile phone users of
telecom providers.
Third, phishing sites falsely representing financial institutions surged. While public institutions like the
prosecutors, police, or the Financial Supervisory Service were falsely represented in 2011, financial
institutions like banks or credit card companies were used much more often in 2012.
Fourth, malicious codes were actively spread through web, such as web-hard and homepages. Especially,
there were often cases of massive distribution of malicious codes on weekends or holidays when proper
management is likely to be neglected. Hiding malicious codes in main pages, hacking private programs
necessary for web-hard service, and uploading manipulated programs on web-hard sites, and many other
methods were used for distributing malicious codes. To increase the infection rate, zero day attacks or those
on three to four vulnerable elements such as Adobe Player, Internet Explorer, Java Applet, etc. were made at
the same time.

66
Personal Information Infringement and Type
In 2012, there were noticeable changes in the people’s awareness on the value of personal information and
their service use. As data increased in both quantitative and qualitative terms and analytics developed, data is
now recognized as an important element for creating economic value. In this regard, global ICT companies
like Facebook and Google started developing new services using big data. On the other hand, high-impact
hacking incidents also broke out - the EBS homepage server was hacked in May, and personal data of 4.23
million members, including their IDs and passwords were leaked; in July, 8.73 million KT customers’
personal data were leaked, including their names and mobile phone numbers, through hacking through a
program that can access to customer data. In addition, incidents of various scales continued, such as the
personal data leakage from a partner company of a telecom provider or from googling.
The number of reports and consultations received by Korea Internet Security Agency’s ‘Privacy’ in 2012
was 166,801. This is a 36.5%-increase from 122,215 in 2011, illustrating that interests and demands for
damage relief regarding personal data are increasing.
Among the reports and consultations filed, except inquiries on credit information and other ‘information that
is not subject to application of the Act on Information and Communications Network’,
damaging/infringing/stealing other persons’ information such as the resident ID accounted for 83.8%
(139,724 cases), followed by personal information leakage caused by lack of measures for technological and
managerial protection at 2.3% (3,855 cases), and inquiries for collecting personal information without
consent of the user at 2.1% (3,507 cases).
Compared to 2011, incidents regarding cases that are ‘not subject to application of the Act on Information
and Communications Network’, ‘lack of measures for technological and managerial protection’, and cases of
‘not making withdrawal of consent, reading and revision easier than collecting information’ decreased,
whereas ‘damaging/infringing/stealing other persons’ information such as the resident ID’, ‘collecting
personal information without user’s consent’, ‘using personal information beyond specified purposes and
providing such information to the third person’, and ‘damaging or infringing information by personal
information managers’ increased.
According to Korea Internet Security Agency’s ‘2012 Status Survey on Information Security’, the Internet users
who experienced damage from personal information or privacy incidents were 9.9% of the entire Internet users,
and their average number of damage cases was 3.2 times. As for the type of damage from personal data or
privacy incidents, personal information leakage from improper maintenance of the data by the service provider
happened the most, to more than half of the respondents (55.3%); followed by cases in which the service
provider used personal data beyond specified purposes or provided the information to the third person without
user’s consent’ (32.7%), and cases in which the service provider collected personal information without notice
for telemarketing purposes or made users join the membership without consent (30.1%).18)
18) Survey conducted from 20 August 2012 ~ 28 September 2012 on 2,500 Internet users aged 12~59 by door-to-door interviews
67
B. Information Security Technology R&D
Ministry of Science, ICT and Future Planning announced its plans to improve competitiveness in
information security core technologies through the ‘Comprehensive Measures for Information Security
Industry Development’ in July 2013 - that it will ‘develop original technologies to dominate future market’,
‘step up technology commercialization and business connection’, and ‘promote standardization and improve
capacity to respond to issues related to intellectual property rights’. Korea plans to carry out information
security technology development with the aim of obtaining the world’s top-level competitiveness in
information security technologies (90% technological level to the world’s top).
Efforts for quality technology development and improved product competitiveness will be made especially
though policies focusing on commercialization of the technologies such as selecting specific target product
groups before development, operating a technology marketplace for disclosing the technology online so that
it can be always applied to commercial products, and supporting patent registration to secure global
intellectual property rights for the developed original technologies in advance.
Development of Intelligent Technology for Automatic Analysis of Malicious Codes and

Detection of Their Paths and Origins
Intelligent technology for automatic analysis of malicious codes and detection of their paths and origins is
the original technology that detects attacks in advance and prevent damage from cyber attacks like DDoS
before spreading, and automatically analyzes many malicious codes in a short period of time. More
specifically, there are technologies for detecting malicious URL, which find out whether any malicious code
is hidden by making automatic visits to many websites; for automatic analysis of malicious codes, which
automatically detect malicious behaviors like process injection through system folder access or registry
manipulation; and for detecting email zombies, which find out zombie PCs that send out spam.
In 2012, technologies for detecting web browser zero day attacks, detecting email zombie groups, and
automatic tracking of sinkhole paths of malicious codes were developed, which were transferred to a total of
11 companies during 2012~2013 for commercialization. These technologies obtained patents (4 global and
17 domestic), and were published in journals (8 domestic, 8 global, and 1 SCI(E)).
Development of Video Security Technology for Multi-camera Tracking and Remote

Face Recognition
Video security technology for multi-camera tracking and remote face recognition, in order to make real-time
response to crimes, safety accidents, or physical threats such as trespassing important facilities within public
areas, uses CCTVs to detect crimes or accidents, tracks runaway suspects in real-time, identifies and searches
persons based on collected face data.

68
Technologies for tracking multi-CCTVs, detecting events, identifying persons from remote distance based on
RFID, detecting multiple faces, and analyzing trajectories were developed in 2012, which were transferred to
5 companies for commercialization. In addition, related technologies were contributed to standards of home
and abroad (5 to TTA, 2 to ISO/IEC, and 11 to ASTAP), obtained patents (21 domestic and 8 global), and
were published in journals (19 domestic, 22 global, and 5 SCI(E)).
Development of Intrusion Response Technology via Virtualization in Cloud

Environment
Intrusion response technology via virtualization in cloud environment is a technology that detects and blocks
hacking attacks, which cannot be detected by the existing security equipment, in real-time within the cloud
system built with virtualization technology. Unlike the general communication environment where the
routers, switches, and the network between each server are physically connected and communicating, there is
a virtual network in form of software in the virtual machine management layer called hypervisor in the cloud
environment. Since the existing security equipment like firewall or IPS (Intrusion Prevention System) cannot
be installed in the cloud environment, there are likely to be security blind spots. Also by using security
vulnerabilities in virtualization system, built with virtualization technology, new types of intrusion attacks
can be made. Technologies for developing software-based IPS and firewall that work in the virtual network
environment, and detecting new attacks such as the new rootkit that works in the hypervisor environment are
currently being developed.
In 2012, attack detection and blocking solution that works in the virtualization network was developed;
analysis on vulnerabilities of the virtualization environment and studies on rootkit architecture were
conducted; and cloud security control technology for collecting and monitoring security events in the cloud
environment were developed. A total of 6 journals (4 domestic and 2 global), and 4 patents (3 domestic and 1
global) were published and obtained.
69
Contents
Global Data
1. ICT Global Index
1-1. UN e-Government Development Index & Rankings 72
1-2. On-line Participation Index & Rankings 73
1-3. ICT Development Index & Rankings 74
1-4. Digital Economy Index & Rankings 75
1-5. IT Industry Competitiveness Index & Rankings 76
1-6. Networked Readiness Index & Rankings 77
2. Internet
2-1. Worldwide Internet Users 78
2-2. Internet Cost per month by Country 78
2-3. OECD Broadband Subscribers(Fixed Broadband) 79
2-4. OECD Broadband Subscribers(Wireless Broadband) 80
2-5. Top 10 Countries in IPv4 Addresses 81
2-6. Top 10 Countries in IPv6 Addresses 82
2-7. OECD ccTLD Addresses 83
2-8. No. of AS Number by Country 84
3. ICT Industry
3-1. World IT Market Volume and Forecast 85
3-2. IT Market Volume and Forecast by Region 86
3-3. Mobile Terminal Shipments by Producer 87
3-4. Smart Phone Shipment by Producer 88
3-5. CDMA Subscribers 89
3-6. Smart Phone Shipment by Producer 90
Domestic Data
1. Internet
1-1. Internet Users and Usage Rate 91
1-2. Purpose of Using the Internet 91
1-3. Broadband Internet Service Subscribers 92
1-4. Wireless Internet Usage Rate 93
1-5. Wireless Internet Subscribers 93
1-6. Number of .kr Domains 94
2. Digital Divide and Internet Addiction
2-1. Informatization Level of the Socially Disadvantaged 95
2-2. Internet Usage Rate by the Socially Disadvantaged 95
2-3. PC Penetration in the Socially Disadvantaged 96
2-4. Internet Addiction Rate and Number of Internet Addicts 96
3. E-commerce
3-1. E-commerce Transaction Volume by Type 97
3-2. B2G E-Commerce Volume 97
3-3. B2B E-Commerce Volume 98
3-4. Transactions by Coverage of Goods and Type of Operation 98
3-5. Internet Banking Service Registered Customers 99
3-6. Daily Average Internet Banking Service Use 99
3-7. Number of Mobile Banking Customers 100
3-8. Daily Average Mobile Banking Service Use 100
3-9. Volume of Electronic Cash Use(Daily Average) 101
4. Cable TV Subscribers
4-1. Wired and Wireless Service Subscribers 102
4-2. Wired Phone (Local Phone) Subscribers 102
4-3. Mobile Phone Subscribers 103
4-4. cdma 2000-1x Subscribers 103
4-5. Smart Phone Subscribers 105
4-6. Smart Phone Subscribers by OS Type 105
4-7. VoIP Subscribers 105
4-8. Pay-TV Subscribers 105
4-9. CableTV Subscribers 106
4-10. IPTV Subscribers 106
5. ICT Industry
5-1. ICT Industry Share of GDP and its Contribution to Growth 107
5-2. ICT Industry Production 107
5-3. IT & Total Industry Imports and Exports 108
5-4. ICT Equipment Exports 109
5-5. ICT Equipment Imports 110
6-1. Hacking 111
6-2. Hacking by Type 111
6-3. Malware Attacks 112
6-4. Personal Information Infringement 112
6-5. Illegal Spam, Daily Average/Person 113
6-6. Mobile Spam, Daily Average/Person 113
GLOBAL DATA
1. ICT Global Index
1-1 UN e-Government Development Index & Rankings (unit : Ranking, Score)
0.8593 0.8505
0.9125 0.8599 0.9283

0.8687
0.8960 0.8889
0.8474
0.8635
Ranking by Year Score

Country
2012 2010 Rank Difference (2012)
Korea 1 1 (=) 0.9283

Netherlands 2 5 3(↑) 0.9125
UK 3 4 1(↑) 0.8960
Denmark 4 7 3(↑) 0.8889
US 5 2 3(↓) 0.8687
France 6 10 4(↓) 0.8635
Sweden 7 12 5(↑) 0.8599
Norway 8 6 2(↓) 0.8593
Finland 9 19 10(↑) 0.8505
Singapore 10 11 1(↑) 0.8474
Canada 11 3 8(↓) 0.8430
Australia 12 8 4(↓) 0.8390
New Zealand 13 14 1(↑) 0.8381
Liechtenstein 14 23 9(↑) 0.8264
Switzerland 15 18 3(↑) 0.8134
Israel 16 26 10(↑) 0.8100
Germany 17 15 2(↓) 0.8079
Japan 18 17 1(↓) 0.8019
Luxembourg 19 25 6(↑) 0.8014
Estonia 20 20 (=) 0.7987
Austria 21 24 3(↑) 0.7840
Iceland 22 22 (=) 0.7835
Spain 23 9 14(↓) 0.7770
Belgium 24 16 8(↓) 0.7718
Slovenia 25 29 4(↑) 0.7492
Source : UN, UN E-government Survey 2012, 2012. 3.

72
Global Data
1-2 On-line Participation Index & Rankings (unit : Ranking, Score)
1.0000
0.7632 1.0000
0.9474 0.9211
0.9211
0.8947 0.7632
0.9474
0.8947
Ranking by Year Score

Country
2012 2010 Rank Difference (2012)
Korea 1 1 (=) 1.0000

Netherlands 1 15 14(↑) 1.0000
Kazakhstan 2 18 16(↑) 0.9474
Singapore 2 9 7(↑) 0.9474
UK 3 4 1(↑) 0.9211
US 3 6 3(↑) 0.9211
Israel 4 30 26(↑) 0.8947
Austria 5 21 16(↑) 0.7632
Estonia 5 9 4(↑) 0.7632
Germany 5 14 9(↑) 0.7632
Colombia 6 26 20(↑) 0.7368
Finland 6 30 24(↑) 0.7368
Japan 6 6 (=) 0.7368
United Arab Emirates 6 86 80(↑) 0.7368
Egypt 7 42 35(↑) 0.6842
Canada 7 8 1(↑) 0.6842
Norway 7 21 14(↑) 0.6842
Sweden 7 23 16(↑) 0.6842
Chile 8 34 26(↑) 0.6579
Russian Federation 8 86 80(↑) 0.6579
Bahrain 8 11 3(↑) 0.6579
Qatar 9 86 77(↑) 0.6316
Saudi Arabia 9 102 93(↑) 0.6316
Mongolia 10 28 18(↑) 0.6053
New Zealand 11 4 7(↓) 0.5789
Source : UN, UN E-government Survey 2012, 2012. 3.
73
1-3 ICT Development Index & Rankings (unit : Ranking, Score)
8.13 8.45
8.24
8.57 8.36
8.00
8.35
7.98
7.92
7.93
Ranking by Year Ranking by Year

Score Score
Country 2012 2011 Rank Country 2012 2011 Rank
(2012) (2012)
2012 data 2011 data Difference 2012 data 2011 data Difference
Korea 1 1 (=) 8.57 Austria 21 21 (=) 7.36
Sweden 2 2 (=) 8.45 Estonia 22 25 3(↑) 7.28
Iceland 3 4 1(↑) 8.36 Iceland 23 22 1(↓) 7.25
Denmark 3 4 1(↓) 8.35 Malta 24 24 (=) 7.25
Finland 5 5 (=) 8.24 Belgium 25 23 2(↓) 7.16
Norway 6 6 (=) 8.13 Israel 26 26 (=) 7.11
Netherlands 7 7 (=) 8.00 Spain 27 27 (=) 6.89
UK 8 11 3(↑) 7.98 Slovenia 28 28 (=) 6.76
Luxembourg 9 9 (=) 7.93 Barbados 29 36 7(↑) 6.65
Hongkong 10 10 (=) 7.92 Italy 30 29 1(↓) 6.57
Australia 11 15 4(↑) 7.90 Qatar 31 30 1(↓) 6.54
Japan 12 8 4(↓) 7.82 Greece 32 33 1(↑) 6.45
Switzerland 13 12 1(↓) 7.78 United Arab Emirates 33 45 12(↑) 6.41
Macao 14 13 1(↓) 7.65 Czech Republic 34 31 3(↓) 6.40
Singapore 15 14 1(↓) 7.65 Latvia 35 37 2(↑) 6.36
New Zealand 16 18 2(↑) 7.64 Portugal 36 35 1(↓) 6.32
US 17 16 1(↓) 7.53 Poland 37 32 5(↓) 6.31
France 18 19 1(↑ 7.53 Croatia 38 34 4(↓) 6.31
Germany 19 17 2(↓) 7.46 Bahrain 39 42 3(↑) 6.30
Canada 20 20 (=) 7.38 Russian Federation 40 38 2(↓) 6.19
Source : ITU, Measuring the Information Society 2013, 2013. 10.

74
Global Data
1-4 Digital Economy Index & Rankings (unit : Ranking, Score)
8.24 8.49
7.94
8.36 8.41
8.41
8.22
8.22
8.21
Rank Category Score

Overall
Country Differe Score Connec- Business Social & Cultural Legal Government Consumer &
2010 2009 (2010)
nce tivity Environment Environment Environment Policy and Vision Business Adoption
Sweden 1 2 1(↑) 8.49 8.20 8.13 8.53 8.25 8.90 8.75

Denmark 2 1 1(↓) 8.41 7.85 8.18 8.47 8.10 8.70 8.90
US 3 5 2(↑) 8.41 7.35 7.85 9.00 8.70 9.25 8.60
Finland 4 10 6(↑) 8.36 8.00 8.30 8.47 8.35 8.00 8.85
Netherlands 5 3 2(↓) 8.36 8.05 8.05 8.07 8.45 8.25 9.00
Norway 6 4 2(↓) 8.24 7.95 7.95 8.00 8.30 8.05 8.90
Hong Kong 7 8 1(↑) 8.22 7.65 8.40 7.27 9.00 9.18 8.28
Singapore 8 7 1(↓) 8.22 7.35 8.63 7.33 8.70 9.13 8.48
Australia 9 6 3(↓) 8.21 7.35 8.24 8.53 8.50 8.85 8.18
New Zealand 10 11 1(↑) 8.07 6.80 8.17 8.60 8.45 8.50 8.29
Canada 11 9 2(↓) 8.05 7.15 8.33 7.87 7.95 8.75 8.35
Taiwan 12 16 4(↑) 7.99 7.00 7.95 8.40 8.15 8.55 8.15
Korea 13 19 6(↑) 7.94 7.90 7.32 8.80 7.65 9.20 7.18
UK 14 13 1(↓) 7.89 7.65 7.40 7.73 8.10 8.55 8.00
Austria 15 14 1(↓) 7.88 7.25 7.54 7.80 8.45 8.55 8.00
Japan 16 22 6(↑) 7.85 7.70 7.16 7.80 7.43 8.75 8.04
Ireland 17 18 1(↑) 7.82 7.20 7.75 7.60 8.00 7.85 8.40
Germany 18 17 1(↓) 7.80 7.60 7.82 8.00 8.05 7.40 7.98
Switzerland 19 12 7(↓) 7.72 7.80 8.33 7.93 7.93 6.80 7.65
France 20 15 5(↓) 7.67 6.80 7.54 7.60 7.85 8.20 8.10
Belgium 21 20 1(↓) 7.52 6.95 7.68 7.33 8.45 7.50 7.63
Bermuda 22 21 1(↓) 7.47 7.45 8.04 6.40 8.35 8.50 6.80
Malta 23 23 (=) 7.32 6.15 7.28 6.80 8.20 8.65 7.45
Spain 24 25 1(↑) 7.31 6.20 7.39 7.60 8.35 7.85 7.23
Estonia 25 24 1(↓) 7.06 6.40 7.16 6.77 8.40 7.98 6.60
Israel 26 27 1(↑) 6.96 6.30 7.39 7.50 7.05 7.05 6.83
Italy 27 26 1(↓) 6.92 6.45 6.32 7.60 8.45 6.55 6.88
Portugal 28 28 (=) 6.90 5.40 6.64 7.33 8.35 7.40 7.10
Slovenia 29 29 (=) 6.81 6.10 6.82 6.93 7.40 7.60 6.60
Chile 30 30 (=) 6.39 4.15 8.00 6.67 7.40 6.75 6.43
Source : EIU, Digital economy rankings, 2010. 6.
Note : Not announced in 2012 due to budget problems
75
1-5 IT Industry Competitiveness Index & Rankings (unit : Ranking, Score)
69.4
67.9 60.8 67.5

72.0 67.6
68.1
80.5
69.8
65.8
65.8
67.5
Rank Score
Country
2011 2009 Difference (2011)
US 1 1 (=) 80.5
Finland 2 2 (=) 72.0
Singapore 3 9 6(↑) 69.8
Sweden 4 3 1(↓) 69.4
UK 5 6 1(↑) 68.1
Denmark 6 8 2(↑) 67.9
Canada 7 4 3(↓) 67.6
Ireland 8 11 3(↑) 67.5
Australia 8 7 1(↓) 67.5
Netherlands 10 5 5(↓) 65.8
Israel 10 13 3(↑) 65.8
Switzerland 12 14 2(↑) 65.4
Taiwan 13 15 2(↑) 64.4
Norway 14 10 4(↓) 64.3
Germany 15 20 5(↑) 64.1
Japan 16 12 4(↓) 63.4
Austria 17 22 5(↑) 61.4
New Zealand 18 19 1(↑) 61.3
Korea 19 16 3(↓) 60.8
Hong Kong 19 21 2(↑) 60.8
France 21 17 4(↓) 59.3
Belgium 22 18 5(↓) 57.7
Italy 23 24 1(↑) 50.7
Spain 24 25 1(↑) 50.4
Slovenia 25 29 4(↑) 48.8
Portugal 26 30 3(↑) 47.1
Czech Republic 27 26 1(↓) 46.1
Hungary 28 28 1(↓) 45.4
Estonia 29 23 6(↓) 45.0
Poland 30 35 5(↑) 44.6
Source : BSA, Investment for the Future Benchmarking IT Industry Competitiveness 2011, 2011. 9.
Note : Not announced from 2011

76
Global Data
1-6 Networked Readiness Index & Rankings (unit : Ranking, Score)
5.91
5.66 5.46
5.98 5.44
5.64 5.58
5.66 5.57
5.47
Rank Subindex
Environment Readiness Usage Impact
Overall Busi- Infrastruc
Country Differ Score Political
2013 2012 ness -ture Indi- Gov-
ence 2012 and Afford Busi- Eco-
and and Skills vid- ern- Social
regula- ability ness nomic
inno- digital ual ment
tory
vation content
Finland 1 3 2(↑) 5.98 5.59 5.84 5.34 6.51 6.87 6.22 6.45 5.97 5.97 5.97 5.55 5.86 5.99 5.74
Singapore 2 2 (=) 5.96 5.89 5.97 5.80 5.96 6.20 5.50 6.18 5.86 5.86 5.18 6.29 6.13 5.98 6.28
Sweden 3 1 2(↓) 5.91 5.48 5.67 5.30 6.38 6.83 6.48 5.84 6.00 6.00 5.89 5.56 5.77 5.93 5.62
Netherlands 4 6 2(↑) 5.81 5.53 5.67 5.40 5.92 6.48 5.39 5.89 5.78 5.78 5.53 5.39 6.00 5.93 6.08
Norway 5 7 2(↑) 5.66 5.42 5.52 5.31 6.15 6.84 6.09 5.52 5.75 5.75 5.23 5.39 5.32 5.17 5.47
Switzerland 6 5 1(↓) 5.66 5.46 5.60 5.32 6.02 6.71 5.25 6.10 5.70 5.70 6.11 4.86 5.44 5.80 5.08
UK 7 10 2(↑) 5.64 5.48 5.62 5.33 5.99 6.42 5.90 5.66 5.59 5.59 5.05 5.55 5.48 5.09 5.86
Denmark 8 4 4(↓) 5.58 5.27 5.30 5.23 6.04 6.40 6.09 5.63 5.75 5.75 5.56 5.05 5.25 5.33 5.18
US 9 8 1(↓) 5.57 5.11 4.94 5.29 6.25 6.80 6.31 5.62 5.51 5.51 5.37 5.49 5.43 5.32 5.55
Taiwan 10 11 1(↑) 5.47 4.97 4.51 5.44 5.80 5.99 5.50 5.91 5.45 5.45 5.19 5.49 5.65 5.49 5.82
Korea 11 12 1(↑) 5.46 4.70 4.25 5.14 5.56 6.13 4.88 5.67 5.86 5.86 5.31 5.89 5.71 5.24 6.19
Canada 12 9 3(↓) 5.44 5.42 5.36 5.47 6.17 6.81 5.69 6.02 5.04 5.04 4.54 5.14 5.14 4.93 5.35
Germany 13 16 3(↑) 5.43 5.05 5.38 4.71 5.88 6.50 5.52 5.62 5.57 5.57 5.81 5.01 5.22 5.32 5.12
Hong Kong 14 13 1(↓) 5.40 5.44 5.27 5.61 5.70 5.78 6.28 5.05 5.18 5.18 4.77 4.87 5.28 5.03 5.54
Ireland 15 20 5(↑) 5.39 5.17 5.24 5.10 5.80 6.24 5.38 5.78 4.87 4.87 4.58 4.44 4.36 4.77 3.96
Luxembourg 16 21 5(↑) 5.37 5.25 5.77 4.73 5.79 6.43 5.61 5.33 5.62 5.62 4.97 5.41 4.81 4.47 5.15
Iceland 17 15 2(↓) 5.31 5.02 4.88 5.15 6.43 6.87 6.55 5.87 5.15 5.15 4.77 4.32 4.65 4.54 4.76
Australia 18 17 1(↓) 5.26 5.29 5.39 5.19 5.51 6.81 4.07 5.64 5.22 5.22 4.54 5.25 5.01 4.61 5.41
Austria 19 19 (=) 5.25 4.99 5.21 4.78 6.01 6.60 5.89 5.55 5.23 5.23 5.39 4.65 4.76 4.57 4.95
New Zealand 20 14 6(↓) 5.25 5.65 5.92 5.38 5.33 6.22 3.96 5.81 5.20 5.20 4.54 5.29 4.81 4.47 5.15
Japan 21 18 3(↓) 5.24 4.86 5.04 4.68 5.36 5.84 4.50 5.73 5.62 5.62 6.01 4.98 5.12 5.36 4.88
Estonia 22 24 2(↑) 5.12 4.71 4.84 4.59 5.55 5.79 5.44 5.43 5.01 5.01 4.13 5.36 5.19 4.55 5.83
Qatar 23 28 5(↑) 5.10 5.19 5.10 5.29 5.06 5.22 3.92 6.04 5.35 5.35 4.47 5.75 4.80 3.85 5.75
Belgium 24 22 2(↓) 5.10 5.09 4.94 5.23 5.84 6.20 5.20 6.11 4.97 4.97 4.94 4.48 4.51 4.67 4.34
United Arab
25 30 5(↑) 5.07 5.05 4.84 5.25 5.23 5.46 4.70 5.54 5.07 5.07 4.31 5.99 4.94 4.13 5.75
Emirates
Source : WEF, The Global Information Technology Report 2013, 2013. 4.
77
2. Internet
2-1 Worldwide Internet Users (unit : a million persons)
2,781
3,000 2,525
2,290
2,500
2,044
1,805
2,000 1,575
1,374
1,500 1,151
1,023
1,000
0
2005 2006 2007 2008 2009 2010 2011p 2012 2013p
Source : ITU, 2012. 6. & Statistical Information Service Web

Note : World Internet Users = 'Users rate' X 'World Population'
2-2 Internet Cost per month by Country (unit : USD)
7.24 25.32
7.23
12.82
11.19
6.72
12.77
5.21
Rank Country Cost Rank Country Cost Rank Country Cost

1 India 5.21 13 Singapore 16.70 25 Greece 23.91
2 Israel 6.72 14 China 17.62 26 Canada 24.78
3 Ukraine 7.23 15 Turkey 18.24 27 Korea 25.32
4 Romania 7.24 16 Thailand 18.79 28 Australia 26.04
5 Taiwan 11.19 17 Malaysia 19.02 29 Republic of South Africa 26.89
6 Hong Kong 12.77 18 US 19.95 30 Estonia 27.79
7 Kazakhstan 12.82 19 Croatia 20.66 31 Brazil 28.03
8 Russian Federation 13.28 20 Indonesia 20.83 32 Slovak Republic 28.57
9 Poland 13.73 21 New Zealand 21.39 33 Spain 28.84
10 Bulgaria 14.81 22 Philippines 21.55 33 Italy 28.84
11 Lithuania 15.19 23 Slovenia 21.74 35 Portugal 28.97
12 Mexico 16.24 24 UK 23.81
Source : IMD, World Competiveness Online, 2010. 5.

Note : Reference Cost per month is 2009

78
Global Data
2-3 OECD Broadband Subscribers(Fixed Broadband) (unit : person)
36.15
36.50 34.81
39.71
34.25 38.84
43.43
36.35
Number of Subscribers per 100 Inhabitants

Total
Rank Country
DSL Cable Fibre/LAN Other Total Subscribers
1 Switzerland 28.05 12.17 2.90 0.30 43.43 3,443,650

2 Netherlands 19.48 17.86 2.37 0.00 39.71 6,652,000
3 Denmark 21.21 10.89 6.68 0.06 38.84 2,171,269
4 Korea 4.31 9.86 22.33 0.00 36.50 18,252,201
5 France 33.56 2.31 0.48 0.00 36.35 23,787,000
6 Norway 16.89 11.18 8.02 0.06 36.15 1,814,144
7 Iceland 27.79 0.00 7.02 0.00 34.81 111,644
8 UK 25.76 6.78 1.71 0.00 34.25 21,662,097
9 Germany 28.44 5.28 0.25 0.09 34.06 27,903,200
10 Belgium 16.97 16.26 0.02 0.02 33.28 3,679,196
11 Canada 14.03 17.84 0.55 0.01 32.44 11,314,355
12 Sweden 15.10 6.15 10.86 0.11 32.21 3,066,000
13 Luxembourg 27.70 3.15 1.07 0.19 32.11 170,651
14 Finland 19.93 5.40 0.76 4.26 30.35 1,642,800
15 US 9.94 16.53 2.12 0.25 28.84 90,006,000
16 New Zealand 26.99 1.44 0.18 0.00 28.61 1,278,440
17 Japan 4.50 4.71 18.47 0.00 27.68 35,295,337
18 Australia 20.77 4.03 0.40 0.00 25.20 5,736,000
19 Austria 16.94 7.68 0.32 0.05 24.98 2,112,788
20 Israel 14.99 9.71 0.00 0.00 24.70 1,953,000
21 Spain 19.28 4.60 0.73 0.03 24.65 11,377,340
22 Estonia 10.69 5.54 7.90 0.41 24.54 328,726
23 Slovenia 12.79 7.18 4.35 0.09 24.42 502,157
24 Greece 23.71 0.00 0.02 0.01 23.74 2,685,354
25 Ireland 15.85 6.69 0.12 0.00 22.65 1,039,624
26 Portugal 10.17 8.95 3.42 0.01 22.55 2,390,649
27 Italy 21.64 0.00 0.47 0.03 22.15 13,479,922
28 Hungary 7.94 10.68 3.21 0.00 21.83 2,170,620
29 Czech Republic 9.10 4.95 2.59 0.00 16.63 1,748,000
30 Poland 8.17 5.26 0.51 1.26 15.21 5,859,485
31 Slovakia 7.67 2.45 4.61 0.03 14.77 798,387
32 Chile 6.14 6.15 0.09 0.02 12.40 2,158,586
33 Mexico 8.64 2.52 0.00 0.48 11.64 12,717,139
34 Turkey 8.78 0.66 0.85 0.09 10.39 7,858,170
OECD Average 14.12 8.11 3.92 0.18 26.33 327,165,931
Source : OECD, OECD Broadband statistics, 2012. 7.
Note : Reference date is December 2011
79
2-4 OECD Broadband Subscribers(Wireless Broadband) (unit : person)
31.24
56.90
73.00
18.51 89.78
57.11
85.44
77.03
Number of Subscribers per 100 Inhabitants

Total
Rank Country Terrestrial Standard mobile Dedicated mobile
Satellite Total Subscribers
fixed wireless broadband subscriptions data subscriptions
1 Finland 0.00 0.20 18.31 88.02 18.51 5,766,600.00

2 Sweden 0.00 0.03 31.21 73.59 31.24 9,977,000.00
3 Australia 0.40 0.22 76.41 26.34 77.03 23,527,000.00
4 Korea 0.00 0.00 73.00 30.00 73.00 51,522,492.00
5 Denmark 0.00 0.16 56.95 40.14 57.11 5,436,178.00
6 US 0.39 0.22 89.16 0.00 89.78 280,153,000.00
7 Japan 0.00 0.01 85.43 0.00 85.44 108,948,995.00
8 Norway 0.00 0.78 56.12 27.52 56.90 4,237,197.00
9 Luxembourg 0.00 0.00 72.46 6.96 72.46 422,100.00
10 New Zealand 0.29 0.34 64.99 11.70 65.62 3,454,808.00
11 Estonia 0.00 1.55 40.29 32.25 41.84 992,672.00
12 Iceland 0.02 0.53 45.08 26.42 45.63 231,091.00
13 UK 0.00 0.00 64.04 7.77 64.04 45,417,000.00
14 Ireland 0.15 1.43 52.00 12.08 53.58 3,014,146.00
15 Poland 0.00 3.20 48.03 10.00 51.23 23,594,635.00
16 Netherlands 0.00 0.00 45.06 16.12 45.06 10,249,000.00
17 Switzerland 0.02 0.00 51.41 6.98 51.43 4,631,750.00
18 Austria 0.00 0.22 30.05 26.09 30.26 4,766,075.00
19 Spain 0.00 0.18 33.36 20.74 33.54 25,057,419.00
20 Czech Republic 0.01 8.63 17.73 27.27 26.37 5,638,523.00
21 Italy 0.00 0.32 17.81 34.04 18.13 31,757,713.29
22 Israel 0.00 0.00 51.23 0.00 51.23 4,050,000.00
23 France 0.00 0.26 50.58 0.00 50.84 33,265,000.00
24 Greece 0.00 0.01 26.25 18.66 26.27 5,081,075.00
25 Canada 0.00 1.08 37.18 3.82 38.26 14,676,294.00
26 Portugal 0.00 0.00 6.50 35.08 6.50 4,408,904.00
27 Germany 0.04 0.03 27.42 13.62 27.49 33,670,641.00
28 Slovakia 0.01 4.56 27.64 7.78 32.21 2,162,345.00
29 Belgium 0.00 0.12 28.64 4.28 28.75 3,651,247.00
30 Slovenia 0.00 0.36 27.48 2.74 27.84 628,826.00
31 Chile 0.00 0.07 21.30 6.69 21.37 4,883,321.00
32 Turkey 0.01 0.00 13.56 2.52 13.57 12,172,698.00
33 Hungary 0.00 1.11 8.37 5.38 9.48 1,477,495.00
34 Mexico 0.03 0.50 7.06 3.28 7.60 11,881,166.00
OECD Average 0.11 0.39 53.31 9.02 53.82 780,804,406.29
Source : OECD, OECD Broadband statistics, 2012. 7.
Note : Reference date is December 2011

80
Global Data
2-5 Top 10 Countries in IPv4 Addresses (unit : each)
112,270,080
1,575,748,480
123,644,688 119,512,424
201,678,848
330,277,376
Rank Country Country Code No. of IPv4 Addresses

1 US US 1,575,748,480
2 China CN 330,277,376
3 Japan JP 201,678,848
4 UK UK 123,644,688
5 Germany GE 119,512,424
6 Korea KR 112,270,080
7 France FR 95,861,776
9 Canada CA 80,948,224
8 Brazil BR 64,760,576
10 Italy IT 53,181,344
11 Others - 622,517,040
Total 3,380,400,856
Source : Korea Information and Security Agency.

Reference date is September 2013
81
2-6 Top 10 Countries in IPv6 Addresses (unit : each(/32))
5,239
27,446
11,797
11,245
9,246
16,661
8,641
Rank Country Country Code No. of IPv4 Addresses

1 US US 27,446
2 China CN 16,661
3 Germany GE 11,797
4 Japan JP 11,245
5 France FR 9,246
6 Australia AU 8,641
7 European Union EU 6,228
8 Italy IT 5,269
9 Korea KR 5,239
10 Argentina AR 4,286
11 Others - 17,061
Total 123,119

Reference date is September 2013

82
Global Data
2-7 OECD ccTLD Addresses (unit : each)
2,409,039
1,094,431
5,155,652
10,153,840 2,026,372
15,347,959
2,509,201
2,537,351
1,790,879
2,529,873
Rank Country Domain Name No. of Domain

1 Germany de 15,347,959
2 UK uk 10,153,840
3 Netherlands nl 5,155,652
4 France fr 2,537,351
5 Australia au 2,529,873
6 Italy it 2,509,201
7 Poland pl 2,409,039
8 Canada ca 2,026,372
9 US us 1,790,879
10 Switzerland ch 1,752,794
11 Spain es 1,623,754
12 Belgium be 1,356,732
13 Japan jp 1,321,621
14 Sweden se 1,277,816
15 Denmark dk 1,213,717
16 Austria at 1,197,314
17 Korea kr 1,094,431

Note : 1. ccTLD - Country Code Top Level Domain
2. Reference date is 4Q 2013
83
2-8 No. of AS Number by Country (unit : each)
1,885 5,032
1,698 1,017
1,937 1,636
2,061
22,498 2,179
1,543
Country US Russian Brazil Ukraine UK Poland Germany Canada Australia Romania Korea
Federation
Rank 1 2 3 4 5 6 7 8 9 10 11
No. of AS
22,498 5,032 2,179 2,061 1,937 1,885 1,698 1,636 1,543 1,513 1,017
Number
Source : Korea Network Information Center.

Note : Reference date is 27 October 2013

84
Global Data
3. ICT Industry
3-1 World IT Market Volume and Forecast (unit : USD billion, %)
5,000
4,293
4,000
3,000
Telecommuni-
cation 2,000
IT Service
Software 1,000
Computing
Hardware 0
Yearly Average
Country 2010 2011 2012 2013 2014 2015 2016 Growth Rate
(2011-2016)
Telecommuni- Volume 378 406 420 448 478 513 551

6.3
cation Growth Rate - 7.4 3.4 6.6 6.8 7.3 7.4
Volume 245 269 281 301 321 342 365
IT Service 6.3
Growth Rate - 9.8 4.3 6.9 6.8 6.7 6.7
Volume 784 845 864 905 952 1,003 1,058
Software 4.6
Growth Rate - 7.7 2.3 4.8 5.2 5.3 5.5
Computing Volume 1,857 2,002 2,063 2,133 2,197 2,260 2,319
3.0
Hardware Growth Rate - 7.8 3.0 3.4 3.0 2.9 2.6
Volume 3,265 3,523 3,628 3,786 3,948 4,119 4,293
Total 4.0
Growth Rate - 7.9 3.0 4.4 4.3 4.3 4.2
Source : Gartner, Gartner Market Databook, 2Q12 Update, 2012. 7. 2.
85
3-2 IT Market Volume and Forecast by Region (unit : USD billion, %)
5,000
Asia-Pacific
Japan 4,000
Middle East /
Africa 3,000
Middle &
Eastern Europe
2,000
Western Europe
Latin America
1,000
Canada
US
0
Yearly Average
Country 2010 2011 2012 2013 2014 2015 2016 Growth Rate
(2011-2016)
Volume 918 970 1,011 1,060 1,107 1,153 1,202
Asia-Pacific 44
Growth Rate - 5.7 4.2 4.8 4.4 4.2 4.3
Volume 77 83 85 88 92 95 98
Japan 3.4
Growth Rate - 8.7 2.8 3.2 3.8 3.4 3.7
Middle East / Volume 262 293 315 338 359 381 400
6.5
Africa Growth Rate - 11.9 7.6 7.3 6.2 6.0 5.2
Middle & Volume 778 807 778 789 799 814 828
0.5
Eastern Europe Growth Rate - 3.8 -3.6 1.4 1.3 1.8 1.7
Western Volume 135 146 151 161 170 180 189
5.3
Europe Growth Rate - 8.0 3.9 6.4 5.8 5.6 5.0
Latin Volume 211 228 238 250 263 276 289
4.8
America Growth Rate - 8.1 4.3 5.2 4.9 5.1 4.7
Volume 325 356 350 351 356 363 369
Canada 0.7
Growth Rate - 9.5 -1.6 0.1 1.6 2.0 1.7
Volume 560 639 698 749 802 858 917
US 7.5
Growth Rate - 14.2 9.3 7.2 7.1 6.9 6.9
Source : Gartner, Gartner Market Databook, 2Q12 Update, 2012. 7. 2.

86
Global Data
3-3 Mobile Terminal Shipments by Producer (unit : million, %)
600 2009 2010 2011 2012
500
400
300
200
100
on
a
ei
rs
ics
ic
ki
ol
pl
TC
ZT
HT
aw
RI
he
on
ss
on
No
or
Ap
ctr
Ot
Hu
ic
tr
ot
Ele
Er
ec
M
g
ny
El
un
ms
So
LG
Sa
2009 2010 2011 2012

Producer
Shipment Share Rank Shipment Share Rank Shipment Share Rank Shipment Share Rank
Nokia 440.9 36.4 1 461.3 28.9 1 422.5 23.8 1 333.9 19.1 2
Samsung Electronics 235.8 19.5 2 281.1 17.6 2 313.9 17.7 2 384.6 22.0 1
Apple 24.9 2.1 7 46.6 2.9 5 89.3 5.0 3 130.1 7.5 3
LG Electronics 122.0 10.1 3 114.2 7.1 3 86.4 4.9 4 58.0 3.3 5
ZTE 16.0 1.3 8 28.8 1.8 8 56.9 3.2 5 67.3 3.9 4
RIM 34.3 2.8 6 47.5 3.0 4 51.5 2.9 6 34.2 2.0 7
HTC 10.8 0.9 10 24.7 1.5 9 43.3 2.4 7 32.1 1.8 9
Huawei 13.5 1.1 9 23.8 1.5 10 40.7 2.3 8 47.3 2.7 6
Motorola 58.5 4.8 4 38.6 2.4 7 40.3 2.3 9 33.9 1.9 8
Sony Ericsson 55.0 4.5 5 41.8 2.6 6 32.6 1.8 10 - - -
TCL 37.2 2.1 7
Others 199.6 16.5 - 488.6 30.6 - 597.3 33.7 - 587.4 33.6 -
Total 1,211.2 100.0 - 1,596.8 100.0 - 1,774.6 100.0 - 1,746.2 100.0 -
Source : Gartner, 2013. 2.
87
3-4 Smart Phone Shipment by Producer (unit : million, %)
250 2010 2011 2012
200
150
100
50
0
Samsung Electronics Apple Nokia RIM HTC Others
2010 2011 2012

Producer
Shipment Share Rank Shipment Share Rank Shipment Share Rank
Samsung Electronics 22.9 7.5 4 94.0 19.1 1 215.8 39.6 1
Apple 47.5 15.6 3 93.2 19.0 2 136.8 25.1 2
Nokia 100.1 32.9 1 77.3 15.7 3 35.1 6.4 3
RIM 48.8 16.0 2 51.1 10.4 4 32.5 6.0 5
HTC 21.7 7.1 5 43.5 8.9 5 32.6 6.0 4
Others 63.7 20.9 - 132.3 26.9 - 92.4 16.9 -
Total 304.7 100.0 - 491.4 100.0 - 545.2 100.0 -
Source : IDC, 2013. 1.

88
Global Data
3-5 CDMA Subscribers (unit : 1,000 person, %)
700,000
Africa
600,000
Middle East
Europe
Europe, 400,000
Middle East,
Africa
Latin America
200,000
and Caribbean
North America
Asia-Pacific
0
Region 2005.9 2006.9 2007.9 2008.9 2009.9 2010.9 2011.9

Subscriber 124,900 155,600 204,600 251,010 278,300 328,030 374,300
Asia-Pacific
Share 43.7 44.0 48.6 52.9 54.5 58.2 59.8
North Subscriber 102,600 119,100 134,600 145,800 156,900 166,830 184,850
America Share 35.9 33.7 31.9 30.7 30.7 29.6 29.5
Latin America Subscriber 53,400 71,500 69,800 52,150 39,100 32,060 25,700
and Caribbean Share 18.7 20.2 16.6 11.0 7.7 5.7 4.1
Subscriber 3,280 4,785 6,704 7,780
Subscriber 4,800 7,530 12,360 Europe
Share 0.7 0.9 1.4 1.5
Europe, Middle Middle Subscriber 4,900 5,270 5,720 5,900
East, Africa East Share 1.0 1.0 1.2 1.2
Share 1.7 2.1 2.9
Subscriber 17,620 26,350 24,680 27,200
Africa
Share 3.7 5.2 5.2 5.3
Subscriber 285,700 353,730 421,360 474,760 510,705 564,024 625,730
Total
Share 100 100 100 100 100 100 100
Source : CDG(CDMA Development Group), 4Q 2011 CDMA SUBSCRIBERS, 2011. 12.
89
3-6 Smart Phone Shipment by Producer (unit : %)
Type Total 0 20 40 60 80 100

Analogue Digital
UK 99 1 100
France 97 3 100
Germany 66 34 100
Italy 93 7 100
US 89 11 100
Canada 87 13 100
Japan 77 23 100
Australia 83 17 100
Spain 100 0 100
Netherlands 77 23 100
Sweden 67 33 100
Ireland 90 10 100
Poland 62 38 100
Brazil 69 31 100
Russian Federation 40 60 100
India 40 60 100
China 43 57 100
Source : Ofcom, The International Communications Market Report 2011, 2012. 12.
Note : Reference date is 2011

90
Domestic Data
DOMESTIC DATA
1. Internet
1-1 Internet Users and Usage Rate (unit : 1,000 persons, %)
38,120 78.4
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Number of Users (age 3 and above) Usage Rate
Section 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Number of Users
(age 3 and above) 29,220 31,580 33,010 34,910 35,590 36,190 36,580 37,010 37,180 38,120
Usage Rate 65.5 70.2 72.8 74.1 75.5 76.5 77.2 77.8 78.0 78.4
Source : Korea Communications Commission, Korea Information and Security Agency, '2012 Status Survey on Internet Usage', February 2013.
Note : 1. Wireless Internet users on a mobile communication network were also included from December 2004 and the definition of 'Internet users'
was changed from 'people using the Internet once a month or more on average' to 'those who have used the Internet at least once during the
last one month'.
2. Survey scope has been extended to Internet users aged 3 and above since 2006 (Internet users aged 7 and above [2001~2001] and those aged
6 and above [2002~2005] were also included).
1-2 Purpose of Using the Internet (unit : %)
multiple 0 20 40 60 80 100
Type
answers
Obtaining information 92.3 92.3
Leisure (music, games, etc...) 87.5
Communication (email, chatting, etc...) 87.2
Internet purchase and sales 57.7
Education / Learning 48.8
Participating in online
communities(cafes, clubs, etc...) 44.1
Homepage operation(blogs, mini-

43.6
hompi's, etc...)
Internet finance 38.6
File sharing service(P2P, webhard, etc...) 21.4
Job search(online submission of CVs and
11.1
applications)
Softwaredownload/upgrade 10.3
Source : Korea Communications Commission, Korea Information and Security Agency, '2012 Status Survey on Internet Usage', February 2013.
91
1-3 Broadband Internet Service Subscribers (unit : each)
18,252,661
20,000,000
15,000,000
10,000,000
5,000,000
Provider 2004. 12. 2005. 12. 2006. 12. 2007. 12. 2008. 12. 2009. 12 2010. 12 2011. 12 2012. 12
KT 6,077,694 6,241,789 6,352,542 6,515,541 6,711,538 6,952,833 7,423,607 7,822,844 8,036,639
SK Broadband - - - - 3,543,669 3,846,597 3,599,169 3,293,524 3,068,041
Hanaro 2,748,934 2,773,213 3,612,749 3,658,115 - - - - -
Telecom
SKT(Network
- - - - - - 402,738 898,368 1,326,082
Service Provider)
Dreamline 133,927 99,723 28,370 1,512 417 45 29 - -
LG Dacom 206,197 213,272 111,905 67,793 28,589 11,907 - - -
LG
- 261916 1,204,293 1,721,328 2,182,362 2,509,818 - - -
Powercomm
LG U+ - - - - - - 2,773,468 2,809,690 2,743,151
Cable TV System
- - 2,262,403 2,507,210 2,786,276 2,810,732 2,826,497 2,857,414 2,960,554
Operator
Thrunet 1,287,916 836625 - - - - - - -
Onse Telecom 391,289 353,001 220,156 - - - - - -
Value-added
857,026 1,154,506 - - - - - - -
Carrier
Cable TV Relay
Operator - - 15,251 16,008 13,132 11,303 198,594 177,682 -
Network
- - 55,408 58,061 50,475 42,041
Operator
Non-facilities
218,456 256,666 179,621 164,430 158,473 163,295
based Carrier
Others - - - - - - - - 118,194
Total 11,921,439 12,190,711 14,042,698 14,709,998 15,474,931 16,348,571 17,224,102 17,859,522 18,252,661
Source : Korea Communications Commission, 'Status of Broadband Internet Subscribers', January 2013.
Note : 1. Hanaro Telecom has merged into SK Broadband.
2. LG Dacom and LG Powercomm has merged into LG U+
3. All provider has except KT, SKT, LG, WO was classified as Others

92
Domestic Data
1-4 Wireless Internet Usage Rate (unit : %)
Year Usage Rate 0 20 40 60 80 100
2002 32.3
2003 36.1
2004 40.2
2005 42.8
2006 45.1
2007 47.7
2008 52.5
2009 54.9
2010 59.3
2011 65.2
2012 87.0 87.0
Source : Korea Information and Security Agency, '2009 Status Survey on Wireless Internet Usage', February 2013.
Note : 1. The survey result for 2006 represents the share of 'wireless Internet users who had used the wireless Internet once or more during the last
six months' from the total number of mobile phone users aged 12 and above.
2. The survey result for 2007 represents the share of 'wireless Internet users who had used the wireless Internet during the last one year' from
the total number of mobile phone users aged 12~59.
3. The survey result for 2008 represents the share of 'wireless Internet users who had used at least one or more of wireless Internet services
such as mobile phone wireless Internet, wireless LAN, and broadband wireless Internet (HSDPA and WiBro)' from the total population aged
12~59.
1-5 Wireless Internet Subscribers (unit : each)
49,751,412
50,000,000
40,000,000
30,000,000
20,000,000
10,000,000
2008. 12. 2009. 12. 2010. 12. 2011. 12. 2012. 12.
Provider
WAP/ME ISMS WAP/ME ISMS WAP/ME ISMS WAP/ME ISMS WAP/ME Web
SKT 21,125,152 13,189 23,308,039 28,705 23,810,003 27,140 22,297,497 30,691 14,671,772 10,050,509
KT 13,594,881 97,312 14,647,673 57,034 15,793,260 43,752 16,536,757 38,778 4,842,804 10,779,020
LG U+ 7,748,237 161,188 8,078,916 180,972 8,369,915 41,337 8,667,214 28,451 670,960 8,736,347
Subtotal 42,468,270 271,689 46,034,628 266,711 47,973,178 112,229 47,501,468 97,920 20,185,536 29,565,876
Total 42,739,959 46,301,339 48,085,407 47,599,388 49,751,412
Source : Korea Communications Commission, 'Status of Wired/Wireless Communication Service Subscribers', February 2013.
Note : 1. Wireless Internet Subscribers for the period until 2011 are classified into ISMS and WAP/ME, but Wireless Internet Subscribers for the
period from 2012 are classified into Web and WAP/ME.
2. Number of subscribers = number of terminals
93
1-6 Number of .kr Domains (unit : each)
Year No. of .kr domains 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000
2001 457,450
2002 515,200
2003 611,548
2004 590,800
2005 642,770
2006 705,775
2007 930,485
2008 1,001,206
2009 1,064,179
2010 1,076,899
2011 1,088,468
2012 1,094,431
Source : Korea Information and Security Agency ISIS, 2013. 2

1,094,431

94
Domestic Data
2. Digital Divide and Internet Addiction

2-1 Informatization Level of the Socially Disadvantaged (unit : Score, %)
Divide Score Comparative Level

80 74.0
60
40
26.0
20
0
2006 2007 2008 2009 2010 2011 2012
Type Divide Comparative Divide Comparative Divide Comparative Divide Comparative Divide Comparative Divide Comparative Divide Comparative
Score Level Score Level Score Level Score Level Score Level Score Level Score Level
Accessibility 19.8 80.2 13.5 86.5 10.3 89.7 9.0 91.0 8.2 91.8 7.3 92.7 6.6 93.4
Capacity 57.1 42.9 55.5 44.5 54.3 45.7 51.1 48.9 49.2 50.8 47.2 52.8 43.9 56.1
Utilization 50.8 49.2 48.6 51.4 46.9 53.1 45.2 54.8 43.5 56.5 41.8 58.2 40.1 59.9
Quantitative
Usage 49.7 50.3 47.2 52.8 45.6 54.4 44.3 55.7 42.5 57.5 41.4 58.6 40.3 59.7
Qualitative
Usage 53.6 46.4 52.0 48.0 49.9 50.1 47.7 52.3 45.9 54.1 43.2 56.8 39.6 60.4
Total 38.0 62.0 34.1 65.9 32.0 68.0 30.3 69.7 28.9 71.1 27.6 72.4 26.0 74.0
Source : National Information Society Agency, '2012 Status Survey on Digital Divide', April 2013.
Note : The 'Comparative Level' represents the Informatization level of the socially disadvantaged compared to the level of the general population,
which is given the value of 100.
2-2 Internet Usage Rate by the Socially Disadvantaged (unit : %, % point)
Total Population Socially Disadvantaged

78.4
80
60
46.8
40
20
0
2006 2007 2008 2009 2010 2011 2012
Type Usage Usage Usage Usage Usage Usage Usage
Divide Divide Divide Divide Divide Divide Divide
Rate Rate Rate Rate Rate Rate Rate
Total Population 74.8 - 76.3 - 77.1 - 77.6 - 78.3 - 78.3 - 78.4 -
46.6 28.2 49.9 26.4 51.8 25.3 52.7 24.9 53.5 24.8 54.4 23.9 55.5 23.2
Socially Disadvantaged
Disabled
Elderly 28.3 46.5 34.1 42.2 35.6 41.5 37.6 40.0 39.3 39.0 41.4 37.2 42.6 36.1
Low-
income 48.4 26.4 52.8 23.5 54.6 22.5 55.7 21.9 56.5 21.8 57.4 20.9 58.5 20.2
Farmers and
Fishermen 29.4 45.4 33.4 42.9 35.2 41.9 36.2 41.4 37.5 40.8 38.9 39.4 40.2 38.5
Average 35.1 39.7 40.1 36.2 41.7 35.4 43.0 34.6 44.3 34.0 45.6 32.7 46.8 31.9
Note : 1. 'Divide' represents the difference between the Internet usage rates of total population and the socially disadvantaged; 'Average' is weighted
by the size of the socially disadvantaged group.
2. Total Population Internet Usage is 2012(KISA, 2012 Survey on the Internet Usage, 2013. 2)
95
2-3 PC Penetration in the Socially Disadvantaged (unit : %, % point)
Total Population Socially Disadvantaged

100
82.3
80 68.7
60
40
20
0
2006 2007 2008 2009 2010 2011 2012
Type Usage Usage Usage Usage Usage Usage Usage
Divide Divide Divide Divide Divide Divide Divide
Rate Rate Rate Rate Rate Rate Rate
Total Population 79.6 - 80.4 - 80.9 - 81.4 - 81.8 - 81.9 - 82.3 -
Socially Disadvantaged
Disabled 68.7 10.9 69.9 10.5 70.7 10.2 71.2 10.2 71.6 10.2 71.9 10.0 73.0 9.3
Low-
income 57.7 21.9 61.3 19.1 63.1 17.8 64.7 16.7 66.1 15.7 67.5 14.4 70.1 12.2
Farmers and
Fishermen
50.2 29.4 55.0 25.4 57.4 23.5 58.7 22.7 60.3 21.5 60.8 21.1 62.1 20.2
Average 60.1 19.5 63.4 17.0 65.1 15.9 66.2 15.2 67.2 14.6 67.7 14.2 68.7 13.6
Note : 'Divide' represents the difference between the computer penetration rates of the total population and the socially disadvantaged; 'Average' is
weighted by the size of the socially disadvantaged group.
2-4 Internet Addiction Rate and Number of Internet Addicts (unit : %, 1,000 persons)
2,500 � Addiction Rate Addicts

2,203
2,000
1,500
� � 7.2
� �
1,000 � �
500 10
0
5
2007 2008 2009 2010 2011 2012
Type Addiction Addiction Addiction Addiction Addiction Addiction
Addicts Addicts Addicts Addicts Addicts Addicts
Rate Rate Rate Rate Rate Rate 0
Total
9.1 2,042 8.8 1,999 8.5 1,913 8.0 1,743 7.7 2,339 7.2 2,203
Population
Youth - - - - - - - - 7.9 160 7.3 157
Teenager 14.4 1,047 14.3 1,035 12.8 938 12.4 877 10.4 677 10.7 754
Adult 6.5 995 6.3 964 6.4 975 5.8 866 6.8 1,501 6.0 1,292
Source : Ministry of Science, ICT and Future Planning; National Information Society Agency, '2012 Status Survey on Internet Addiction', June 2012.
Note : No. of Internet Addicts is not comparable between until 2010 and from 2011, because of 'Internet Addicts Survey in 2011 & 2012' was the first
time for those aged under 10 to be included in the annual research, and also the first time for Internet use via Smart Phones and tablets to be
included. The study was conducted on 663 children, 2,130 teenagers and 7,207 adults.

96
Domestic Data
3. E-commerce
3-1 E-commerce Transaction Volume by Type (unit : KRW 1 billion)
1,144,689
1,200,000
900,000
600,000
300,000
Type 2004 2005 2006 2007 2008 2009 2010 2011 2012
Total Transaction Volume 314,079 358,450 413,584 516,514 630,087 672,478 824,392 999,582 1,144,689
B2B 279,399 319,202 366,191 464,456 560,255 592,965 747,090 912,883 1,050,985
B2G 27,349 29,036 34,435 36,801 52,266 59,455 52,772 58,378 62,259
B2C 6,443 7,921 9,132 10,226 11,359 12,045 16,005 18,533 19,641
C2C 888 2,292 3,826 5,032 6,207 8,012 8,524 9,788 11,804
Source : National Statistical Office, '2012-4Q and Annual E-commerce and Cyber Shopping Trend', February 2013.
Note : From 2011, B2G include International Procurement Volume.
3-2 B2G E-Commerce Volume (unit : KRW 1 billion)
70000 62,259
50000
30000
10000
Type 2004 2005 2006 2007 2008 2009 2010 2011 2012
Total B2G Transactions 27,349 29,036 34,435 36,801 52,266 59,456 52,772 58,378 62,259
Purchase of goods
9,816 13,064 19,385 19,585 30,306 31,024 30,659 31,176 36,725
and services
Construction
17,534 15,972 15,050 17,216 21,960 28,432 22,113 27,202 25,534
contracts
97
3-3 B2B E-Commerce Volume (unit : KRW 1 billion)
1,200,000 1,050,985
800,000
400,000
Type 2004 2005 2006 2007 2008 2009 2010 2011 2012
Total B2B transaction 279,399 319,202 366,191 464,456 560,255 592,965 747,090 912,883 1,050,985
Buyer-driven type 197,212 228,167 263,318 321,058 381,003 393,970 424,426 499,005 537,497
Domination
Supplier-driven type 71,619 77,443 86,238 119,246 146,947 161,546 278,938 363,285 464,288
Type
Intermediary-driven type 10,568 13,591 16,635 24,152 32,304 37,450 43,726 50,593 49,200
Competition(Open) 62,819 77,509 90,147 128,155 156,348 212,862 221,954 269,296 295,478
Order
Type Non-competition
(Cooperation/Closed) 216,580 241,693 276,044 336,301 403,907 380,103 525,137 643,587 755,507
Manufacturing 197,067 212,086 239,323 298,399 359,732 375,246 508,520 635,965 750,602
Electricity/gas/water 3,657 5,186 8,552 9,518 10,807 15,066 14,090 10,039 7,413
Construction 16,097 24,046 29,334 46,160 63,288 56,978 61,711 71,264 83,810
Industry Wholesale/Retail 51,421 62,413 68,035 82,478 96,185 105,073 126,543 146,174 159,552
Type Transportation 1,463 2,879 4,667 7,850 8,456 19,305 11,297 18,066 14,918
Information and
Communications 7,478 7,329 10,136 11,029 11,514 13,713 17,274 20,415 22,371
Other 2,217 5,262 6,143 9,022 10,273 7,582 7,656 10,959 12,320
3-4 Transactions by Coverage of Goods and Type of Operation (Unit: million won)
40,000,000
32,347,000
30,000,000
20,000,000
10,000,000
Classification 2005 2006 2007 2008 2009 2010 2011 2012

Total 10,675,595 13,459,595 15,765,573 18,145,516 20,642,979 25,202,992 29,072,463 32,347,000
By coverage General mall 7,415,033 9,570,678 11,121,748 12,964,202 15,444,725 19,041,708 21,835,828 24,145,000
of goods Specialized mall 3,260,563 3,888,917 4,643,824 5,181,314 5,198,254 6,161,284 7,236,635 8,203,000
Online-only mall 5,913,345 8,285,365 10,006,876 12,061,352 14,005,549 16,960,836 18,991,029 20,417,000
By type of
On-offline
operation 4,762,250 5,174,229 5,758,697 6,084,164 6,637,430 8,242,156 10,081,434 11,930,000
hybrid mall

98
Domestic Data
3-5 Internet Banking Service Registered Customers (unit : 1,000 persons or businesses)
Individuals Businesses
100,000 86,430
80,000
60,000
40,000
20,000
Type 2004 2005 2006 2007 2008 2009 2010 2011 2012
Individuals 23,094 25,303 34,123 42,396 49,912 56,047 62,952 70,625 81,384
Businesses 1,177 1,434 1,789 2,302 2,683 3,159 3,550 4,192 22,754
Total 24,271 26,737 35,912 44,698 52,595 59,206 66,502 74,817 86,430
Source : Bank of Korea, '2012 Status of Domestic Internet Banking Service Usage', February 2013.
3-6 Daily Average Internet Banking Service Use (unit : 1,000 cases, KRW 100 million, %)
Type Inquiry Fund Applications Total 0 10,000 20,000 30,000 40,000 50,000
Service Transfer for loans
Number 9,199 1,924 1.8 11,125
2005 of Cases (82.7) (17.3) (0.0) (100)
Amount - 12,518.2 11.5 12,529.7
Number 10,596 2,204 1.9 12,802
2006 of Cases (82.8) (17.2) (0.0) (100)
Amount - 15,090.3 13.7 15,104.0
Number 15,177 2,740 2.0 17,919
2007 of Cases (84.7) (15.3) (0.0) (100)
Amount - 18,557.0 13.5 18,570.5
Number 19,666 2,932 2.4 22,600
2008 of Cases (87.0) (13.0) (0.0) (100)
Amount - 21,350.0 15.9 21,365.9
Number 23,111 3,424 2.0 26,538
2009 of Cases (87.1) (12.9) (0.0) (100)
Amount - 25,438.4 15.7 25,454.1
Number 29,198 4,156 1.2 33,355
2010 of Cases (87.5) (12.5) (0.0) (100)
Amount - 29,551.0 20.1 29,571.1
Number 34,281 4,740 1.4 39,022
2011 of Cases (87.7) (12.1) (0.0) (100)
Amount - 31,893.0 24.7 31,917.7
Number 40,473 5,253 1.7 45,728
2012 of Cases (88.5) (11.5) (0.0) (100)
Amount - 33,229.0 10.1 33,239.1
33,239.1
Note : 1. Excluding electronically-processed secured receivable loans and corporate procurement loans.
2. The 2010 figures were revised, to reflect data corrections by some banks.
99
3-7 Number of Mobile Banking Customers (unit : 1,000 persons, %)
25,000 IC chip-based VM-based Smart Phone-based 23,954

20,000
15,000
10,000 8,718
5,000 4,376
0
Type 2004 2005 2006 2007 2008 2009 2010 2011 2012
IC chip-based 894 1,861 2,979 4,412 4,694 4,627 4,579 4,434 4,376
VM-based - - - 597 3,783 6,528 8,561 8,928 8,718
Smart
- - - - - 13 2,609 10,358 23,954
Phone-based
Total 894 1,861 2,979 5,009 8,477 11,168 15,748 23,720 37,048
Note : 1. Reference data is 2012
2. BankOn, MBank, KBank Service : Use mobile phones with a IC chip.
3. VM(Virtual Machine)-based mobile banking: Method using Internet banking service by installing Internet banking programs in mobile
phones(does not use IC chips).
3-8 Daily Average Mobile Banking Service Use (unit : 1,000 cases, KRW 100 million, %)
Number of Cases Amount 12,946

15,000
961.5
9,000
3,000
Type 2007 2008 2009 2010 2011 2012

716 1,058 1,721 3,736 7,697 12,946
Number of Cases
(60.5) (47.8) (62.7) (117.1) (106.0) (68.2)
(Smart Phone- 19 907 5,910 12,792
based) (4,673.7) (551.6) (116.4)
598 899 1,461 3,334 6,931 11,618
Inquiry (63.4) (50.3) (62.6) (128.0) (107.9) (67.6)
Service
[83.5] [85.0] [85.0] [89.2] [90.0] [89.7]
Fund 118 159 259 403 766 1328
Transfer (47.5) (34.7) (62.9) (55.5) (90.1) (73.2)
[16.5] [15.0] [15.0] [10.8] [10.0] [10.3]
106.1 150.8 266.2 415.6 652.6 961.5
Amount
(44.4) (42.1) (76.5) (56.1) (57.0) (47.3)
(Smart 0 46.7 372.7 861.1
Phone-based) (-) (698.1) (131.1)
Note : 1. Fund Transfer was include Fund Transfer about Loan.
2. The 2009 & 2010 figures were revised, to reflect data corrections by some banks.
3. ( ) shows the increase rate from the previous year. [ ] shows the Usage rate.

100
Domestic Data
3-9 Volume of Electronic Cash Use(Daily Average) (unit : 1,000 cases, KRW million)
Type 0 100 200 300 400 500

Number of Cases Amount
2004 432 341
2005 422 327
2006 438 309
2007 352 288
2008 306 262
2009 289 249
2010 258 241
2011 162 167

68
2012 68 87
87
Source: Bank of Korea, Economics Statistics System, 2013. 10.
Note : K-Cash, MYbi, VisaCash included.
101
4. Cable TV Subscribers
4-1 Wired and Wireless Service Subscribers (unit : each)
72,359,930
75,000,000
50,000,000
25,000,000
Type 2004. 12. 2005. 12. 2006. 12. 2007. 12. 2008. 12. 2009. 12. 2010. 12. 2011. 12. 2012. 12.
Local Phone 22,870,615 22,920,151 23,119,170 23,130,253 22,131,737 20,089,979 19,273,484 18,632,501 18,261,220
Mobile Phone 36,586,052 38,342,323 40,197,115 43,497,541 45,606,984 47,944,222 50,767,241 53,306,257 53,624,427
Wireless Paging 45,634 42,003 42,690 39,328 41,082 21,066 18,917 18,339 18,383
TRS 311,457 322,830 321,125 332,747 353,267 352,092 377,540 382,110 384,181
Wireless Data
111,051 111,433 97,272 100,354 90,984 62,334 61,933 55,563 52,247
Communication
GM-PCS - - - 4,412 3,897 3,857 5,193 14,696 19,472
Total 59,924,809 61,738,740 63,777,372 67,104,635 68,227,951 68,473,550 70,504,308 72,409,466 72,359,930
Source : Korea Communications Commission, 'Status of Wired/Wireless Communication Service Subscribers', March 2013.
4-2 Wired Phone (Local Phone) Subscribers (unit : each)
25,000,000
20,000,000 18,224,775
15,000,000
10,000,000
5,000,000
Type 2004 2005 2006 2007 2008 2009 2010 2011 2012
KT 21,457,342 21,353,086 21,288,733 20,918,566 19,866,278 18,052,168 16,634,607 15,699,702 15,121,001
SK Broadband 1,413,273 1,521,117 1,745,266 2,030,862 1,934,981 1,690,068 2,255,391 2,478,728 2,649,703
LG U+ - 45,948 85,171 180,825 330,478 347,743 383,486 454,071 454,071
Total 22,870,615 22,920,151 23,119,170 23,130,253 22,131,737 20,089,979 19,273,484 18,632,501 18,224,775
Note : 1. Figures for KT consist of the total number of people subscribing to household phones (business phones excluded), group phones, DID, and
ISDN.
2. Figures for SK Broadband consist of the total number of people subscribing to household phones (business phones excluded), in-house
communication, and ISDN.
3. Figures for LG U+ consist of the total number of people subscribing to general fixed lines (wired lines no. 1 and 2) and trunks (DID/DOD
trunks and DOD channels).
※ Subscribers to DID trunks are excluded.

102
Domestic Data
4-3 Mobile Phone Subscribers (unit : each)
60,000,000 53,624,427
50,000,000
40,000,000
30,000,000
20,000,000
10,000,000
Type 2004. 12. 2005. 12. 2006. 12. 2007. 12. 2008. 12. 2009. 12. 2010. 12. 2011. 12. 2012. 12.
SKT 18,783,338 19,530,117 20,271,133 21,968,169 23,032,045 24,269,553 25,705,049 26,552,716 26,961,045
KT 11,728,932 12,302,357 12,913,699 13,720,734 14,365,233 15,016,195 16,040,527 16,563,158 16,501,639
LG U+ 6,073,782 6,509,849 7,012,283 7,808,638 8,209,706 8,658,474 9,021,665 9,390,919 10,161,743
Total 36,586,052 38,342,323 40,197,115 43,497,541 45,606,984 47,944,222 50,767,241 52,506,793 53,624,427
Note : Mobile Phone include Modem & Tablet PC, DBDM Terminal.
4-4 cdma 2000-1x Subscribers (unit : each)
40,000,000
30,000,000
20,000,000
10,753,379
10,000,000
Type 2004. 12. 2005. 12. 2006. 12. 2007. 12. 2008. 12. 2009. 12. 2010. 12. 2011. 12. 2012. 12.
SKT 17,048,235 18,546,982 19,421,048 18,656,698 13,939,331 11,507,124 9,698,566 6,581,970 4,972,306
KT 10,494,928 11,727,788 12,570,857 10,283,359 5,944,858 2,796,353 1,276,871 43,568 0
LG U+ 4,993,955 5,801,651 6,371,468 7,213,138 7,669,766 8,061,434 8,365,692 7,130,624 5,781,073
Total 32,537,118 36,076,421 38,363,373 36,153,195 27,553,955 22,364,911 19,341,129 13,756,162 10,753,379
Note : 1. cdma 2000-1x Subscribers include EV-DO Subscribers(SKT 4,497,545 / KT 30,249 / LGU+ 1,910,304).
2. Number of subscribers = number of terminals.
103
4-5 Smart Phone Subscribers (unit : 10,000 persons, %)
6,000 5,362
5,000
4,000
3,272
3,000
2,000
1,000
Type 2009. 12. 2010. 12. 2011. 12. 2012. 12.

Mobile Phone
4,794 5,077 5,262 5,362
Subscribers(A)
Smart Phone
80 722 2,376 3,272
Subscribers(B)
Share of Smart phone
1.7 14.2 45.2 61.0
Subscribers(B/A)
Note : 1. Mobile Phone include Modem & Tablet PC, DBDM Terminal.
2. Smart Phone is Mobile communication terminals for voice call communication, and with a General OS
4-6 Smart Phone Subscribers by OS Type (unit : 10,000 persons, %)
100
90.1
80
60
40
20 9.6
0.3
0
Type 2010. 3. 2010. 6. 2010. 9. 2010. 12. 2011. 12. 2012. 12.
Android 3.3% 18.2% 46.3% 57.5% 90% 90.1%

iPhone OS 33.1% 32.8% 26.1% 25.5% 9.0% 9.6%
Others 63.6% 49.0% 27.6% 17.0% 1.0% 0.3%
Source : Korea Communications Commission

104
Domestic Data
4-7 VoIP Subscribers (unit : each)
11,736,677
12,000,000
10,000,000
80,000,000
Fixed-line
Communication 60,000,000
Service
Telecommunications 40,000,000
lines facilities lease,
resale, and 20,000,000
Communication
Service 0
Type 2009. 12. 2010. 11. 2010. 12. 2011. 12. 2012. 4. 2012. 4.
Fixed-line Communication
5,003,649 8,261,881 8,413,313 10,634,546 11,046,105 11,687,839
Service
Telecommunications lines
facilities lease, resale, and 1,656,558 728,538 729,015 90,660 64,862 48,838
Communication Service
Total 6,660,207 8,990,419 9,142,328 10,725,206 11,110,967 11,736,677
4-8 Pay-TV Subscribers (unit : each)
25,000,000 24,007,065
20,000,000
15,000,000
10,000,000
5,000,000
Type 2006. 12. 2007. 12. 2008. 12. 2009. 12. 2010. 12. 2011. 12. 2012. 3.
Subscribers
(No. of 17,207,793 18,159,309 19,419,782 22,062,740 23,360,754 24,286,901 24,007,065
Terminals)
Source : Korea Communications Commission, '2012 Status of Broadcasting Indusry', March 2013.
Note : 1. Sum of each Pay-TV Subscribers not exclude multi Subscribers.
2. CableTV and Satellite-TV Subscribers include multi Terminals.
3. IPTV Subscribers was counted on the basis of IP.
4. RO Subscribers was counted on the 95 Service Providers.
5. IPTV Service was started at January 2009.
105
4-9 CableTV Subscribers (unit : each)
16,000,000 14,905,017
12,000,000
8,000,000
4,000,000
Type Year-end Basis 2005 2006 2007 2008 2009 2010 2011 2012
Analogue
14,129,314 13,881,782 13,908,616 13,282,667 12,624,541 11,651,080 10,707,076 9,708,790
Subscribers Broadcasting
(No. of Digital
- 287,159 855,571 1,914,118 2,670,062 3,425,505 4,225,594 5,196,227
Terminals) Broadcasting
Total 14,129,314 14,168,941 14,764,187 15,196,785 15,294,603 15,076,585 14,932,670 14,905,017
Source : Korean Cable TV Association, 'December 2011 CableTV Subscribers', April 2012.
Note : 1. Number of subscribers equals the total number of TV terminals.
2. Reference data is basis of 94 SO at 2011.
4-10 IPTV Subscribers (unit : each)
6,000,000
5,252,935
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
Type 2009. 6. 2009. 12. 2010. 3. 2010. 12. 2011. 3. 2011. 12. 2012. 3.
Real-time IPTV 468,673 1,741,455 1,963,784 3,430,403 3,800,268 4,819,309 5,194,743
Pre-IPTV(VOD) 1,219,160 632,456 614,338 215,463 183,080 74,538 58,192
Total 1,687,833 2,373,911 2,578,122 3,645,866 3,983,348 4,893,847 5,252,935
Source : Korea Communications Commission, '2012 Status of Broadcasting Indusry', March 2013.

106
Domestic Data
5. ICT Industry
5-1 ICT Industry Share of GDP and its Contribution to Growth (unit : %, % point)
20
15
10 8.4
GDP Growth Rate � �
� � � � �
�
ICT Industry 5.2
Growth Rate 5
2.0
� ICT Industry
Share of GDP 0
Year 2005 2006 2007 2008 2009 2010 2011 2011(p)

GDP Growth Rate 4.0 5.2 5.1 2.3 0.3 6.3 3.7 2.0
ICT Industry Growth
11.7 12.6 8.7 6.8 3.9 17.7 8.6 5.2
Rate
ICT Industry Share of
8.6 9.2 9.5 8.0 8.0 8.7 8.1 8.4
GDP
Source : Bank of Korea '2012 National Accounts(provisional)', March 2013.

Note : ICT industry includes the manufacturing of ICT apparatuses (office appliances, semiconductors and other ICT appliances) and ICT
services(communication, broadcasting, software, and computer-related services).
5-2 ICT Industry Production (unit : KRW 100 million)
4,000,000 3,073,500
3,000,000
2,000,000
1,000,000
ICT Equipment
SW 0
Year 2009 2010 2011 2012p

ICT Equipment 2,275,150 2,956,825 3,353,610 3,388,977
SW 254,043 263,441 295,229 315,477
Total 2,529,193 3,220,266 3,058,381 3,073,500
Source : Ministry of Knowledge and Economy, Korea Electronics Association, 'December 2012 ICT Industry', May 2013.
Note : ICT Industry include ICT Equipment and SW
107
5-3 IT & Total Industry Imports and Exports (unit : USD 100 million, %)
IT Industry Exports IT Industry Imports IT Industry BOP(Balance of Payments)

2,000.0
1,552.4
1,500.0
1,000.0 779.3
773.1
500.0
0
2004 2005 2006 2007 2008 2009 2010 2011 2012
Exports Imports Balance of Payments

Total Industry Total Industry
Year Total
IT Industry IT Industry IT Industry
Industry
Increase Rate Increase Rate
2004 2,538.4 997.1 31.4 2,244.6 542.3 17.6 293.8 454.8
2005 2,844.2 1,082.5 8.6 2,612.4 592.7 9.3 231.8 489.9
2006 3,254.6 1,191.1 10.0 3,093.8 646.8 9.1 160.8 544.3
2007 3,714.9 1,301.0 9.2 3,568.5 697.3 7.8 146.4 603.7
2008 4,220.1 1,311.6 0.8 4,352.7 735.2 5.4 -132.7 576.4
2009 3,635.3 1,209.5 -7.8 3,230.8 620.2 -15.6 404.5 589.3
2010 4,663.8 1,539.4 27.3 4,252.1 756.2 21.9 411.7 783.2
2011 5,552.1 1,566.2 1.7 5,244.1 815.4 7.8 308.0 750.8
2012 5,481.7 1,552.4 -0.9 5,195.4 779.3 -4.4 286.3 773.1
Source : Ministry of Knowledge and Economy, Korea Electronics Association, '2012 Status of IT Industry Imports and Exports', January 2013.

108
Domestic Data
5-4 ICT Equipment Exports (unit : USD 100 million)
1,500
1,318
1,250
1,000
750
500
Core IT Equipment 250 234

Broad IT Equipment
0
Year 2006 2007 2008 2009 2010 2011 2012
Electronic Components 578 655 637 627 913 891 912

PCs and Peripherals 119 128 97 70 77 76 77
Communication and
271 307 360 310 278 278 228
Broadcasting Equipment
Core IT
Equipment Image and Sound
Equipment 103 94 90 80 105 107 91
Magnetic Optical
Equipment 9 11 11 11 15 16 8
Subtotal 1,079 1,194 1,195 1,098 1,388 1,369 1,318

Medical Precision and
Optical Instruments 19 23 27 26 39 53 64
Domestic Appliances 44 43 40 37 45 48 47
Broad IT Office Appliances and
Equipment 4 5 5 4 4 5 5
Machinery
Electronic Machinery 46 35 44 45 63 92 119
Subtotal 112 107 116 111 152 198 234
Total 1,191 1,301 1,312 1,209 1,539 1,567 1,552
109
5-5 ICT Equipment Imports (unit : USD 100 million)
900
750
653
600
450
300
150 126
Core IT Equipment
Broad IT Equipment
0
Year 2006 2007 2008 2009 2010 2011 2012

Electronic Components 367 415 435 373 444 466 467
PCs and Peripherals 80 86 85 72 93 93 90
Communication and
51 56 66 55 69 95 63
Broadcasting Equipment
Core IT
Equipment Image and Sound
27 29 32 26 29 27 28
Equipment
Magnetic Optical
12 15 14 10 17 15 6
Equipment
Subtotal 536 601 632 536 651 697 653
Medical Precision and
Optical Instruments 56 64 69 54 71 80 85
Domestic Appliances 8 9 9 8 9 11 13
Broad IT Office Appliances and
Equipment 4 3 2 2 1 1 1
Machinery
Electronic Machinery 43 21 23 21 23 26 27
Subtotal 111 97 103 84 105 118 126
Total 647 697 735 620 756 815 779

110
Domestic Data
6-1 Hacking (unit : each, %)
35,000
30,000
25,000
19,570
20,000
15,000
10,000
5,000
Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
No. of Cases
1,943 5,333 15,192 26,179 24,297 33,633 26,808 21,732 15,940 21,230 16,295 11,690 19,570
Reported
Rate of
Increase 240 174 185 72 -7 38 -20 -19 -27 33 -23 -28 67
Source : Korea Information Security Agency, 'Monthly Internet Incidents and Analysis', February 2013.
6-2 Hacking by Type (unit : each)
30,000
25,000
20,000
15,000
10,000
5,000
Type Spam Relay Phishing Intrusion attempt Other hacking Homepage defacement Total
2006 14,055 1,266 3,711 4,570 3,206 26,808
2007 11,668 1,095 4,316 2,360 2,293 21,732
2008 6,490 1,163 3,175 2,908 2,204 15,940
2009 10,148 988 2,743 3,031 4,320 21,230
2010 5,216 891 4,126 3,019 3,043 16,295
2011 3,727 365 2,961 2,783 1,854 11,690
2012. 11. 6,009 339 2,755 5,993 2,970 18,066
Source : Korea Internet and Security Agency, 'Monthly Status and Analysis on Internet Incidents', June 2012.
Note : 1. Data on Phishing is the basis of reported data the spam & phishing damage to the KISA.
2. Data on Intrusion attempt is basis of reported data the Virus Attacks to the KISA.
3. Hacking Type Contents not announced from December 2012 in KISA's 'Monthly Status and Analysis on Internet Incidents'.
111
6-3 Malware Attacks (unit : each)
120,000
100,000
80,000
60,000
40,000
21,399
20,000
Year 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
No. of Damage
65,033 38,677 85,023 107,994 16,093 7,789 5,996 8,469 10,395 17,930 21,751 21,399
Cases Reported
Source : Korea Information Security Agency, 'Monthly Internet Incidents and Analysis', February 2013.
Note : Data on Malware attacks are the aggregated figure of statistics from KISA, AhnLab, and Hauri, etc.
6-4 Personal Information Infringement (unit : each)
200,000
166,801
150,000
100,000
50,000
Year 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
No. of Cases
17,777 17,569 18,206 23,333 25,965 39,811 35,167 54,832 122,215 166,801
Reported
Source : Korea Information Security Agency.

112
Domestic Data
6-5 Illegal Spam, Daily Average/Person (unit : each)
6 the first half year the second half of the year
0.50
0
2006 2007 2008 2009 2010 2011 2012 2013

Year the first the second the first the second the first the second the first the second the first the second the first the second the first the second the first
half of the half of the half of the half of the half of the half of the half of the
half year year half year year half year year half year year half year year half year year half year year half year
Adult 0.6 0.2 0.6 0.3 0.2 0.1 0.1 0.2 0.2 0.8 0.97 0.71 0.50 0.12 0.09
Loan/
Financing 2.7 3.1 1.7 1.0 1.7 0.8 0.7 0.7 0.2 0.3 0.02 0.03 0.02 0.03 0.06
General
Ads 2.1 2.0 2.7 3.0 2.2 1.2 1.6 1.3 1.7 1.1 1.40 1.45 1.12 - -
Gambling - - - - - - - - - - - - - 0.35 0.21

Others - - - - - - - - - - - - - 0.90 0.14
Total 5.4 5.3 5.0 4.3 4.1 2.1 2.4 2.2 2.1 2.2 2.39 2.19 1.64 1.40 0.50

Note : 1. Data on the second half of the 2012 is not published.
2. Illegal Spam category was changed to Adult, Loan/Financing, Gambling, Others in the second half of the 2012.
6-6 Mobile Spam, Daily Average/Person (unit : each)
1.0 the first half year the second half of the year
0.8
0.6
0.4
0.2
0.28
0
2006 2007 2008 2009 2010 2011 2012 2013

Year the first the second the first the second the first the second the first the second the first the second the first the second the first the second the first
half of the half of the half of the half of the half of the half of the half of the
half year year half year year half year year half year year half year year half year year half year year half year
Adult 0.16 0.11 0.13 0.13 0.04 0.04 0.04 0.02 0.02 0.03 0.02 0.01 0.02 0.02 0.06
Loan/
0.57 0.19 0.20 0.27 0.22 0.19 0.13 0.22 0.28 0.21 0.18 0.14 0.15 0.11 0.08
Financing
General
0.29 0.17 0.21 0.17 0.25 0.23 0.29 0.20 0.16 0.19 0.26 0.15 0.11 - -
Ads
Gambling - - - - - - - - - - - - - 0.04 0.06
Others - - - - - - - - - - - - - 0.09 0.08
Total 0.99 0.47 0.54 0.57 0.51 0.46 0.46 0.44 0.46 0.43 0.46 0.30 0.28 0.26 0.28

Note : Illegal Spam category was changed to Adult, Loan/Financing, Gambling, Others in the second half of the 2012.
113

2013 National Informatization White Paper - Republic of Korea

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2013 National Informatization White Paper - Republic of Korea

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Republic of Korea

1. National Informatization for Achieving the Knowledge

2. Performances and Challenges of Each Area

3. Achieving Digital Creative Korea for National Happiness

9. Informatization of Agriculture and Fishing Industries 49

10. SOC Informatization

11. Digital Convergence Infrastructure

12. ICT Idustry

13. Information Security

Increasing innovation and convergence based on new technologies is displayed in diversification of

1) Paul Jacobs, Qualcomm CEO, Keynote Speech in CES 2013.

Table 1 E-government Exports