Korea’s Informatization Policy & International Cooperation - Focusing on the Digital Divide

1. Korea’s Informatization Policy & International Cooperation- Focusing on the Digital Divide 2004. 04 Dr. Yeongi Son President/CEO

2. Contents I.Informatization Policy of Korea II.Status of the Digital Divide in Korea III.Korean Policies to Close the Digital Divide IV.Lessons from Korean Experiences V. KADO’s Vision 1

3. Informatization Policy of Korea

4. Current Status of the Korea IT Broadband Internet Penetration Rate (10.4M households, 70% of the total households) 1st Internet Users (26.3M, 59% of the total population) 5th ITU Mobile Internet Index 7th UN e-Government Index 13th Computer Penetration Rate : 47% (22.49M units) Mobile Telephone : 67% (32.5M People) 3

5. Korea’s Progress in Informatization & IT Industry Basis of Information Society (’80~early ’90) Poor Telec. Infra. (~early 80) Towards the 21st Century IT Leader - Competition Among Telecom Operators - Immediate Installation & Voice Call Service - 1st & 2nd Rounds of National Back-bone N/W Building Project - Dev. & Distribution of Home-grown TDX, Host Computers - 7% Teledensity (100% Dependency on Imported Equipments) - Poor Informatization 4

6. Korea’s Progress in Informatization & IT Industry Push for Informatizaiton (mid ’90) Informatization for New Take-Off (late’90~’02) Across the Nation of Informatization (’03~ Towards the 21st Century IT Leader - Competition among Carriers - Informatization Promotion Act - Dev. of CDMA Tech. - Basic Plan For the 1st & 2nd Informatization Promotion - Implementation of 11 Tasks of e-Gov. - Development of ADSL, Digital TV, TFT-LCD Tech. - Strategies to the Goals of the Participatory Government 5

7. Key Success Factors 1 Legal Framework Tentative Law on Expansion of Telecom Facilities– 1979 ▶ Issue Telegraph & Telephone Bonds Telecommunications Basic Act – 1983 ▶ Introduce the Concept of the Information Society and Information & Communications ▶ Draw Up Policy, Promote the IT Industry, Develop Technologies, Foster H/R Law on the Use and Promotion of Information and Telecommunications Network - 1986 ▶ Facilitate the Dev. of National Back-bone N/W and Set Up a Nationwide N/W Council Informatization Promotion Basic Act – 1995 ▶ Set out Informatization Promotion Basic Plan ▶ Create an Information Implementation Committee 6

8. Key Success Factors 2 Strong Policy-Push Framework Reorganize the Gov. Body ▶ Set Up Communications Policy Bureau in 1982 ▶ Create Communications Policy Office in 1991& Information and Communication Bureau (Responsible for IT) ▶ Establish MIC in 1994 ▶ Set up Information Planning Office in 1996 Support Wings ▶KADO(’84)▶ETRI(’85) ▶KISDI(’87) ▶NCA(’87) ▶KISA(’96) ▶KIPA(’98) Implementation Framework corresponding to the Knowledge & Information-based Society 7

9. Key Success Factors 3 Strong Commitment of the Top-Policy Maker ▶ Development in ’70 : Upgrade Telecommunications Facilities ▶5th Gov.(’80) : Automate Telephones Nationwide, Open the Era of One Tele. Per Household ▶ Civilian Gov.(Mid ’90) : Roll Out Broadband N/W ▶ People’s Gov. (’98~ ’02) : Make Korea the Most Computer Literate Country Worldwide Policy-led Changes & the Private Sector’s Swift Reaction ▶ Develop Tech. & Promote the Industry (TDX/CDMA/ADSL etc.) ▶ Build Back-bone & Broadband N/Ws Gov. ▶ Intensively Invest in Strategic Items (B/B Internet, CDMA) ▶ Expand e-Commerce & Apply IT to the Conventional Industries Enterprises Individuals ▶ Enthusiastic for Education, Receptive to New Tech. & Equip. ▶ Cultural Characteristics for Racing Ahead 8

10. Key Success Factors 4 Bold Policy Decision Locally Developed TDX (‘82~’91) – R&D Investment (W142B) Home-grown Host Computers (‘87~’91: Host Com. I, II, III, IV)-R&D (W63.5B) Develop & Commercialize CDMA System (’90~’96) - R&D (W99.6B) Broadband N/W Project (’95~ Present) - Investment (W17.14T) (Gov.: W1.12T) 9

11. Key Success Factors 5 Balanced Development in Informatization(Demand) & IT Industry(Supply) Facilitate Demand Expand the Provision Gov. Strong Policy Drive Expand Wire & Wireless Telephone, Build Broadband N/W Induce Competition Among Providers in line with Market Principles Provide Computer Education Provide Free B/B Internet Access to All Primary & Secondary Schools Spread IT Culture (ex: PC Cafes, Online Games) Virtuous Cycle of the Development of Informatization & the IT Industry 10

12. National Informatization Policy Overview Richer Society Inclusion Society Transparent & Fair Society Knowledge & Information-based Society Across the Nation National / Social Informatization Privacy Protection Bridge Digital Divide Private Sector Public Sector Ensure Security and Reliability Continuously Upgrade IT Infrastructure 11

13. II.Status of the Digital Divide in Korea

14. Status of the digital divide in Korea(1) President - Suggesting & Summits http://www.cwd.go.kr/warp/app/home/en_home MIC - Master Planing http://www.mic.go.kr/eng/index.jsp KADO – Acting for closing the digital divide http://www.kado.or.kr/ 13

15. Status of the digital divide in Korea(2) Internet Usage (July, 2003) Category Sub-category Internet Users(%) Gender Male 70.7 Female 57.5 Education Middle School graduates and below 5.8 College graduates and above 82.1 Occupation Housewives 47.0 Manual workers 31.8 Office workers 88.7 Age 50 and above 23.2 6 - 19 91.3 14

16. Status of the digital divide in Korea(3) Internet Usage (July, 2003) Category Sub-category Internet Users(%) Monthly Income Less than $ 1,250 22.9 More than $ 2,500 67.2 Region Metropolitan Cities 86.1 Rural towns 44.2 % out of the Total 64.0 Internet Usage among People w/ Disabilities Category Sub-category Internet Users(%) Age 7 - 19 69.0 50 - 69 5.9 % out of the Total 24.1 15

17. III.Korean Policies to Close the Digital Divide

18. 3. Korean Policies to close the digital divide (1) Closing the Digital Divide Information Strategy Meeting (April,2000) Digital Divide Act (rev.) (Jan, 2003) Cyber Korea 21 (March,1999) 17

19. 3. Korean Policies to close the digital divide (2) IT Literacy IT Productivity IT Accessibility Expanding Capability In Utilizing Information Promoting Information- Based Productivity Affordable Access Information Access Environment Supporting Contents-based Projects Establishment of basis of IT Partnership Promoting e-Policy and Informational Mind Supporting IT Usage Capability 18

20. 3. Korean Policies to close the digital divide (3) Policy Approaches Infrastructure for Telecommunication Services Productive Information Life Access to Telecommunication Services Closing the digital divide Narrowing the Global D.D Provision of IT Learning Opportunities Contents for the Elderly and the disabled & Measurement of the D. D. 19

21. 3-1. Infrastructure for telecommunication services Fiber-optic Backbone Network Linked all 144 telecommunication service districts (155Mbps to 5Gbps) (2000) • Broadband Service in Rural Areas by 2005 • Special loan of 150 billion W (approx. 120 million $) • to accelerate the network construction • Satellite Internet service to hinterland Telecommunications Accessibility Guideline for the disabled and the elderly (2002) Services providers and Product manufacturers to ensure a minimum level of accessibility “Telecommunication Accessibility Promotion Standard Forum” (www.iabf.or.kr) 20

22. 3-2. Access to telecommunication services (1) Internet-Cafe (PC Bang) 수신 차단 방안 강구 More than 25,000 “PC Bang” (2002) - Affordable price at less than $1 per hour Community Internet Access Center Year 2000 2001 2002 2003 Local Government supports 257 Access Centers since 2000 Local Gov 21 120 66 50 KADO supports 986 Access Centers since 2000 KADO 63 555 248 120 21

23. 3-2. Access to telecommunication services (2) Provision of ICT Devices Discount of telecommunication service charge • - 34,363 refurbished PCs (2002) • - 50,000 Internet PCs with 5-year free Internet access to the low-income students with high GPAs (2001) • - 3,000 PCs to the disabled (2003) • - 6,940 Assistive Technology to the disabled (2003) • - Up to 30 ~ 50% discount on telephone service charges for the disabled & the low-income • - Up to 50% voluntary discount to the disabled for high-speed Internet service • - 256 Kbps Internet access to all schools at free of charge 22

24. 3-3. Provision of IT learning opportunities National plan of IT training program for 10 million people Providing IT learning opportunity to 10 million by 2002 23

25. 3-4. Online Contents & the Measurement of the digital divide Support to the construction of online contents for the elderly & the disabled 수신 차단 방안 강구 • 20 types of contents such as rehabilitation, health, • social events, transportation, leisure, welfare (in 2002) • 10 more contents made available in 2003 Assessment of the Digital Divide 수신 차단 방안 강구 • The status of the digital divide is assessed twice per year • Special surveys on the disabled, the elderly and • the urban low income families from 2002 24

26. 3-5. Productive Information Life Prevention of ICT Misuse • Training Internet addiction counselors • Developing ICT Ethics Education • Operation of Internet Addiction Center • - Group/Individual, Offline/Online, • Counseling Juvenile: for prevention of cyber-crime 25

27. 3-6. Narrowing the global digital divide Special projects for Closing the digital divide in ASEAN Projects Description Infrastructure & HRD • Building community access center in ASEAN countries • Providing IT education to ASEAN countries • Sending experts of e-Gov, telecommunication Infra, IT policy etc. to ASEAN countries • Technology Transfer through cooperation between ETRI and PTIT • Supporting the non-governmental information and communication council of ASEAN+3 Technical Assistance 제목 2 Forum & Symposium • Holding symposium on the digital divide from 2002 every year Founding Member of the Development Gateway Foundation (2001.12) • Global digital divide program initiated by the World Bank • 5 million dollar contribution & IT Training Center opened in 2002 • Trained 150 persons through 10 courses per year 수신 차단 방안 강구 26

28. 3-6. Narrowing the global digital divide by KADO (1) Korea IT Learning Program In 2003 3 mid term courses, 167 people e-Gov. CIO Course(63), e-Gov. Consultant course(70) Mobile Engineer course(37) In 2004 4 mid term, 14 short term courses, 316 people • National Informatization CIO, • National Informatization Consultant, • Mobile Engineer, • SI(e-Gov.), Mobile Commerce, e-Government Policy, Telecommunication Policy course, etc. 27

29. 3-6. Narrowing the global digital divide by KADO (2) Korea Internet Volunteers Programs www.kiv.or.kr Sending IT skilled volunteers to the organizations of developing countries to help develop IT capacity In 2002, 2003 • In 2002, 381 volunteers (108 teams) to 28 countries in Asia, East Europe, Africa for 15-25 days In 2003, 345 volunteers (87 teams) to 42 countries In 2004 about 300 volunteers (75 teams) to 30 countries Equipped with laptop PC, digital camera and education materials. 28

30. 3-6. Narrowing the global digital divide by KADO (3) Korea Internet Access Center Building Internet Education and Training Center for developing countries 2002~2003 2004 Cambodia Romania, Vietnam, Egypt 12 persons, 10 days • 2 countries • 6 persons, 10 days 29

31. IV. Lessons from Korean Experience

32. Lessons from Korean Experience • The transparency of transaction, reduce corruption involved • Providing the programs for increasing IT usage ability Strong leadership제목 3 Constructing telecommunication network Promoting the willingness to use IT • Giving incentives early IT users and telecommunications service providers 31

33. V. KADO’s VISION

34. KADO’s Vision and Mission VISION The leading agency to pioneer a national and World-wide attempt to move toward a knowledge and information-based society MISSION Reducing the national info gap, building a digital welfare society and creating a venue for future info society and promotion of sound cyber culture ROLE Providing Info Access Environment Expanding Human Capabilities In Utilizing Info Preventing misuse of Info & Building Sound Cyber Culture International Cooperation 33

35. Main Working Areas Equal Information Access Opportunity Building Information Access Facilities Distribution of Refurbished PCs and Special Contents Toward a Digital Welfare Society Informatization Education International cooperation Korea Internet Volunteers e-Korea Education On-line Informatization Education Internet Access Center Support of Info Education for each Government Sector Korea IT Learning Program Sound & productive Digital Society Lessoning Cyber Crimes Protective Counseling against Internet Addiction 34

36. Thank you감사합니다