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Korea Economy & ICT/e-Government

Experiences and Lessons

2017.11.15

KOICA Conference in Tunisia

Young-Sik Kim, yskim4u@gmail.com World Friends Korea Advisor

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Mr. YoungSik Kim, WFK Advisor, KOICA, Tunisia

Information & Telecommunication Engineering in KAU (Korea Aerospace

University) BS, MS, PhD Course Completion

Electronic Officer, ROK Navy

Project Manager, Quality Assurance Manager, Client Executive in IBM

Korea, IBM Asia Pacific HQ

ICT / e-Gov Advisor in Nepal, Afghanistan , Mongolia, Moldova, Thailand,

Vietnam through KOICA, World Bank, NIPA

Deputy Director, NIPA(National IT Industry Promotion Agency), Korea

Visiting Professor in ITTP, KAIST, Korea

e-Government Associate Fellow, CeG-IIST, UN University

Currently, World Friend Korea Advisor in eGU, PG, Tunisia

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Agenda

• Economic Development Theory

• Korea History

– Economy & ICT

– Lessons Learned

• 3 Basic Impact Elements of ICT

– R&D, Infrastructure, Innovation

– E-Government

– ICT Industry Promotion

• Lessons

• References

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Walt Whitman Rostow

(1916-2003)

American Economist

Developing Country’s

Economy Development Model

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Dependency Theory & World Systems Theory

Andre Gunder Frank

(1925-2005)

German-American

Economic Sociologist

Immanuel Wallerstein

(1930- )

American Sociologist

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Joseph Schumpeter (1883-1950, Austria-American Economist)

Destructive Creation

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Joseph Schumpeter (1883-1950, Austria-American Economist)

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* The term National System of Innovation originated when Christopher Freeman and Bengt-Åke Lundvall worked together in the late 1980s.

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Land Area: 99,392Km2 ( Tunisia 165,000 Km2 ) Population: 50.2 million Household: 17.35 million GDP per capita income : $26,205 Ranked as #1 the world’s most

advanced ICT in ITU’s ICT Development Index(*) Oct. 2016

Capital : Seoul, 10.3 million

* Measured ICT access, use and skills, and included indicators such as mobile cellular subs., Internet users, fixed and mobile broadband Internet subs., etc.

South Korea – Country Overview

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11 2017-11-14

Toward a developed nation-Prof. James T. Jie - AIT

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Park Chung Hee Model of The Korean Socio-economic Development

1. Strong Leadership with Articulated Mission, Vision and Strategy

2. Successive Goal-oriented Action Plans and Continuous Monitoring

3. Rebuilding the National Culture with the New Community Movement

4. Export-focused Outward Looking Development Policy

5. Crisis Construction and Mobilization of Hard-Working People

6. Utilization of the Repatriated Professionals and Establishing Proper Implementation Organization and Legal Measures

7. Industrial Infrastructure Building and Development Cluster Creation

8. Human Capital Formation and Mobilization of Financial Resources

9. Prioritized Step-wise Socio-economic Drive and continuous improvement

10. Appropriate and High-tech Oriented Industrial Structure Fabrication

11. Nurturing Chaebols for Global competitiveness with Scale economy

12. Expansion and upgrading of Education and Science and Technology

Who is the main actor and initiator of the change?

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Export Commodity

Profile

1960 1970 1990 2000

1980

HCI Product

Agricultural Product

Light Industry Product

50%

Wig Automobile Semiconductor Textile

2015

Semiconductor, LCD, Smart Phone, DTV, Steel, Automobile, Ship-building, etc.

79.8%

14.1%

6.1%

KOREA - Changes in Export Commodity Profile:

From Light Industry to Heavy & High-Tech Industry

Economic Take-Off with Outward-looking Development Strategy

13 2017-11-14

Toward a developed nation-Prof. James T. Jie - AIT

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New Community Movement (NCM) (Sae-maul Undong)

- three central social values to change people’s attitude and mindset:

•Diligence •Self-help •Cooperation

• to keep cleaner and sanitary rural environment • to improve dwelling, access road, living condition • to increase income of the household • to induce physical & mental change of the whole society to achieve a balanced development,

•thus by creating a solid and strong foundation for national development by changing the national culture, and create new development momentum.

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Korea Take-Off in Economy via ICT

2016 GDP $25,189 (33th) (Wikipedia)

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Korea Take-off

• Politics – 1961 ; Military Quo

– 1987 ; Indirect poll -> Direct poll

– 1992 ; 1st Civilian President

– 2003 ; Participatory Government

• Society – 1971 ; New Village Movement

– 1988 ; Olympics

– 2002 ; World Cup

– 2009 ; Digital Revolution (Smartphone)

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Characteristics of Korean Economy

• State capitalism – Strong government policy, law, funding mechanism – Investment first, adjustment second – Led private sector enterprises, PPP

• Export oriented industry – No natural resources – Import material resources, process & export – Open market (FTA to US, EU, India, ASEAN,…)

• Rely on Human Resources – Transform to knowledge industry – Private sector development by ICT Eco Environment – HRD through IT institute and Academy promotion

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3+1 Initiatives in National ICT Development

e-Government IT Industry

Promotion

IT Society

Expansion

Seamless Eco-Cycle

Infrastructure ( Broadband, HRD, Standard)

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Korea Broadband Development (Fixed]

<Source : Korea national Information Society Agency >

Project for building IT Infrastructure launched since 1987

1986

Commercialized Switching

system developed by Korean Tech.

Korea has launched several IT projects for building IT infrastructure since 1987, preparing new IT environment

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World first ADSL Commercialization by Hanaro Telecom (LG)

1999.4

GigaNet IOT Net, 5G

2017

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TDX Development (Electronic Telephone

Switching System)

4M/16M/64M DRAM Development

CDMA Development

Construction of High-speed information and

communication network

IT839 Strategy

(8 Services, 3 Infrastructures, 9 products )

4G LTE, 5G, Giga Net

IT Convergence, Green IT Smart Gov /AI/4th Ind Rev

Successful localization of TDX (10th nation achieved) : The cornerstone(or infrastructure)

of the ICT development

The world's first 64M DRAM working die => World's No. 1 memory device production since

2001 (DRAM : world's No. 1 from 1998 to present)

The world's first commercial CDMA

=> Global handset market share, No. 2

The world's first high-speed Internet service

=> World's No. 1 of high-speed Internet houshols

The world's first commercial services of DMB (2005)

and WiBro (2006), 4G LTE, IT Convergence to Industry,

Smart Phone, Cloud Computing, IOT, AI (2008~2017)

ICT R&D Key projects of Korea : government-led ICT

1982~1986(1987)

1987~1993(1992)

1991~1995(1996)

1995~2005

2003(2004)~2007

2008~2017

Period(Actual) Projects Performances

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Development of e-Gov. in Korea

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Smart Government Policies

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Examples of m-Gov Services

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Examples of m-Gov Services

m-Gov Service: Transportation

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IT Convergenc

e

Software ICT Hardware Broadcasting & communications Intern

et

Restructuring the Government Organizations

New Vision and Strategy for ‘ICT Industry Korea’

* Issued in Sept. 2009 (by MKE & KCC) 25

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Korea IT product – World market share

< source: iSuppli, SA, DisplaySearch, etc. >

World market share of Korea IT product such as semiconductor and mobile handset shows the world Top continuing increase.

Korean IT Product World market share

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43.50% 43.9%

22%

48.1%

52.4%

42.9%

10

20

30

40

50

60

2007

2013

Lithum Ion Battery

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ITU, ICT development index world

rank

1st/’11 → 1st /’12 → 1st /’13, ‘14

National IT competiveness index (ITU, Oct 2013)

Mobile broadband penetration rate (ITU, Sep 2013)

Global market share of mobile (Market Monitor, 2013)

1st UN E-government Index (UN, 2010,12,14)

International Recognition

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Korea IT Status – Today

Korea is moving into high-speed network connected society in fixed and wireless communication

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9.4

million

38 million 47 %

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Web surfing in Subway (Free WiFi in subway )

Watching TV in Subway (Via Korean made DMB )

Mobile Office Outdoor (Via WiFi and Wireless internet ) BUS information

(Via DID system) Smart payment

Mobile banking outside

(Via Wireless internet )

Korea ICT service in daily life

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SNS (Always connected with

friends)

Always Network Connected

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Smart City Smart Seoul

A smart city has been defined as a ‘knowledge’, ‘digital’, ‘cyber’ or ‘eco’ city; representing a concept open to a variety of interpretations, depending on the goals set out by a smart city’s planners. We might refer to a smart city as an improvement on today’s city both functionally and structurally, using information and communication technology (ICT) as an infrastructure.

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International G2G Cooperation

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Government Roles in ICT Technology

• Policy, Law, Institution, Fund

• Research & Development

• ICT Infrastructure

• Capacity Building

• Industry Promotion, SME focused

• International Collaboration

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Lessons from ICT Focus

• Higher Human Resources Level

• Easy to converge other industries

– Stronger impact

• Fast to contribute to the economy

• Low entrance criteria in terms of investment, human resource development

• Impact to Organizational Capacity Up through Collaboration

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Challenges in Innovation Process

-People -Law -Technology

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References • National Innovation Systems Overview and Country Cases by Stephen

Feinson (CSPO, Arizona State University)

• Toward the developed nation by Dr. James Tae Hong Jie (KPU, AIT, KOICA)

• Smart City Promotion by Seoul City Government

– http://www.itu.int/en/ITU-T/techwatch/Pages/smart-city-Seoul.aspx

– http://newsroom.cisco.com/feature/1309662/Smart-City-Seoul?utm_medium=rss

• E-Government Institute NIA www.nia.or.kr

• Ministry of Interior e-Government Site http://www.mois.go.kr/eng/sub/a03/EGovernment/screen.do

• ICT Industry Promotion Institute NIPA www.nipa.kr

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Questions & Discussions

Thank you