2013 Korea Internet White Paper Notice ● The Special Report and the Top 10 News on the Internet contained in this White Paper have been selected through discussion by the editing committee, which is composed of experts from the industry, academia, research institutes and the government. ● The numbers in the statistical tables and diagrams have been rounded off for the sake of convenience, and thus the sum of specific items may not always correspond with the total. ● The 2013 Korea Internet White Paper puts together the latest Internet issues and trends that occurred during 2012. Due to the presidential election and consequent reorganization of the government in 2013, the government agencies responsible for overseeing and helping to manage the ICT industry were changed from the KCC, MOPAS and MKE to MSIP, KCC and MSPA. For this reason, the responsible departments are mentioned in this document according to the current government organization. ● MSIP(Ministry of Science, ICT and Future Planning), KCC(Korea Communications Commission), MSPA(Ministry of Security and Public Administration), KISA(Korea Internet & Security Agency) 2013 Korea Internet White Paper 2013 Korea Internet White Paper Publisher’s Message By June of 2013, the number of Korean smartphone users exceeded 35 million, with 65% subscribing to LTE services. The paradigm is quickly shifting from the wired Internet to the wireless Internet. Also, as seen by the recent Gangnam Style craze that spread globally via YouTube, social media has proven to be a very powerful and irreversible aspect of contemporary life. As the use of the wireless Internet has been rapidly increasing so too has the spread of malicious mobile codes and new frauds like smishing. Moreover, we are inundated with uncertain and unwanted information. It is imperative that we create an environment for invigorating Internet services safely in response to them. The Korea Internet & Security Agency is trying to become a leader in the global Internet arena by finding new growth engines combining information security with the Internet, diffusing a healthy Internet culture, and engaging in international cooperation. It’s been already 14 years since its first publication. The ‘2013 Korea Internet White Paper’ reflects the policy paradigm for creating new jobs and markets through ICT convergence. The Special Reports section covers the mobile Internet, new Internet industries, and creative economy. Part 1, Infrastructure, handles the Internet infrastructure and new technological trends. Part 2, Services, covers Internet services, and business and convergence services. In Part 3, Utilization, the contents on the Internet industry, Internet use at home and abroad, and international cooperation are updated. I hope this White Paper will be widely used as a basic reference for policy making, research and development of more efficient operations. I would now like to extend my gratitude to the writers, the editors and all those who have worked so hard for the publication of the ‘2013 Korea Internet White Paper.’ Lee, Ki Joo President, Korea Internet & Security Agency 2013 Korea Internet White Paper In 1982 when the SDN (System Development Network) was built, History of the Internet service began in Korea. Since then, it has grown rapidly and broadband Internet subscribers had reached 18 million in 2012. Thereafter, Korea became the first in the world to launch commercial Korea Internet WiBro and HSDPA services, and confirmed its position as an Internet powerhouse. In 2012, Korea smartphone users exceeded 30 million. The country is now making efforts to become a world leader in the smart age. 1981~1984 1985~1989 1982 1985 •Build SDN (TCP/IP){Seoul National •Connect SDN-PACNET University - Korea Electronics 1986 Technology Institute (KETI)} •Assignment of first IP address (128.134.0.0) 1983 •Introduction of country •Connect SDN-EUNET/UUCPNET domain (.kr) •Start PSTN data service 1988 •Open Overseas Public Data Network •Connect SDN-MHSNET 1984 1989 •Connect SDN-CSNET •Introduction of Education Network •Open first PSDN, Dacom-Net (KREN) and Research Network (KREONet) Infra •Build SDN-HANA network (KT) 1982 1985 •First connection to the Internet •Offer Korean Email service 1983 • Introduction of PC communication (Dacom) •Offer information search service 1984 1987 •Offer H-Mail service •Offer commercial Email service (Dacom) •Start PC banking service 1988 •Start commercial PC communication service (Chollian) •Introduction of private BBS (The FIRST) •Development of vaccine following first virus attack (Brain) Service •Start EDI service (Dacom) 1981 1985 •Establishment of Korea Telecom Authority •Prepare National Administrative Network 1982 Implementation Plan •Hold first int'l computer network related •Establishment of Korea Data Communication co.,Ltd conference (PCCS) •Prepare 1st Basic Plan for Computerization of Administration 1986 •Enactment of Act on Computer Network 1983 Expansion and utilization promotion •Enactment of Framework Act on 1987 Telecommunication (first use of term, •Establishment of National Information & communications) Computerization Agency (NCA) •Prepare National Backbone Network Business Plan •Prepare 1st National Backbone Network 1984 Basic Plan •Organization of Computer Network •Organization of National Backbone Network Coordination Committee coordination Committee Policy 1990 1994 1998 1999 2001 2002 • Introduction of • Introduction • Internet users • No. 1 in broadband • Broadband Internet Commercial Internet of commercial exceed 10 networks subscribers exceed Service broadband million • Enactment of Act 10 million • Establishment of Internet service on Promotion of • Development of Ministry of Information Information and 'e-Korea Vision 2006' and Communication Communication Network Utilization and Information Protection, etc. 1990~1993 1994~1996 1997~2000 2001~2002 1990 1994 1997 2001 • Connect SDN-HANA to USA IP •Introduction of Commercial ISP •Start leased line service •No. 1 in broadband based Internet (KT, Dacom, iNet) •Start high speed national network networks (OECD) 1993 1995 Internet service 2002 •PC communication subscribers •Open administration •Establishment of PC-Internet • Broadband Internet exceed 3 million information network (NATISNET) connection subscribers exceed 10 million •Implementation of KIX Service 1999 •No. 1 in broadband Internet • Internet users exceed 10 million penetration •First assignment of IPv6 address 1996 •Open ISDN public network 2000 • Open commercial ATM exchange network • Establishment of Korea ISP Association (KISPA) 1991 1994 1997 2001 •Start online issue service of •Introduction of commercial • Start online stock trading service •Online banking subscribers resident registration documents Internet service (KT) • First free Internet services for Email exceed 10 million • Start text based MUD game service and search, etc. •Introduction of Internet •Open government authorities • Introduction of portal sites (Netsgo) content rating service websites (Blue House, etc.) 1998 2002 1995 •Introduction of commercial •Game market exceed KRW •Start 'WWW' service broadband Internet service (Thrunet) 3 trillion •Start Internet café (Netscafé) •Offer e-Government service •Open Internet news & broadcasting sites (JOINS, KBS) 1999 1996 • Start ADSL service (Hanaro Telecom) •Start online banking service •Start ISDN Internet servic •Start e-Commerce and First webzine service •Introduction of first graphic based MUG game •Hold Information EXPO 1990 1994 1998 2001 •Prepare Master plan Information •Establishment of Ministry of •Prepare Information and Communications •Enactment of Act on Society Information and Communication (MIC) Network Improverment Plan Promotion of Information 1992 1995 •Prepare PC Communication and Internet and Communications Utilization Promotion Plan •Prepare 2nd National Backbone • Prepare National Information super Network Utilization and Network Basic Plan highway master plan 1999 Information Protection, •Enactment of Act on Promotion of •Enactment of Framework Act on •Development of 'Cyber Korea 21' etc. Information and Communications Informatization Promotion •Enactment of Framework Act on Electronic 2002 Network Utilization, etc. •Establishment of Korea Internet Commerce, Digital Signature Act •Development of 'e- Korea Safety Commission (KISCOM) •Establishment of KRNIC 1993 Vision 2006' • Prepare National Information 1996 2000 Super Highway Basic plan •Prepare 1st Informatization Promotion • Completion of 2nd Stage National Basic Plan Information Super Highway Project •Organization of Informatization Promotion • Enactment of Software Industry Committee Promotion Act, Knowledge Information •Establishment of Korea Information Security Resource Management Act Agency (KISA) • Prepare Personal Information Protection Guidelines • Implementation of 11 Initiatives for e-Government • Establishment of Korea SW Industry Promotion Agency (KIPA) 2013 Korea Internet White Paper 2003 2004 2005 2006 2007 • Development of • Development of • Introduction of • Introduction of world •Implementation of 'Broadband IT Korea IT839 Strategy commercial VoIP first WiBro, HSDPA Identity Verification Vision 2007' • Internet users exceed service service 30 million • Development of 'u- Korea Basic Plan' 2003~2004 2005 2006 2007 2003 •No. 1 in Digital Opportunity • No. 1 in Digital •No.1 in Digital •1.25 Internet Security Index (ITU) Opportunity Index (ITU) Opportunity Index (ITU) Incident •Pilot Internet service on • Start FTTH service • International aircraft (Korean Air)