Accelerating IT Export by Finding, Supporting New Main Export Items

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Publisher’s Column of ICA President Cho Sung-kap COLUMN

ccording to a recent report by tion of Korean exports last year. A The International Cooperation Now, many Korean companies are Agency for Korea IT (ICA), Korea’s IT pleading for more support as they lack export will more than double this year. resources. Although Korea is striving to This conclusion, reached from a survey be an export power, it is true that there of 370 IT companies, tells us that we are many factors that inhibit further marketplace. can count on IT exports as an engine of economic growth. According to a survey, the top ten growth this year and that the IT sector It is not just today or yesterday that online game companies will achieve is a critical issue area for the enhance- Korean companies suffer from insuffi- sales that amount to 947.7 billion won ment of national competitiveness. cient resources. To promote exports in and the number for mobile games will In 2004, worries on a worldwide eco- the IT sector, the enhancing of techno- be 300 billion won this year. It is nomic downturn appear to be somewhat logical power is the only sound option. remarkable that online game companies fading as the market is picking up in The importance of developing original (50%) and mobile game companies advanced industrialized countries such as technologies by an expansion of R&D (63%) will maintain a momentum of the United States, the United Kingdom investments is now a common sense rapid growth this year. and Japan. Similarly, more people are concept that all would agree with. This year, as in the past, ICA will do its becoming optimistic about the prospect Organic cooperation and coordination best to support the game industry that of an economic recovery in Korea. among research activities conducted by has emerged as a producer of main Revitalized domestic consumption businesses, universities and research export items. We expect that the export combined with the continued expansion institutes is obviously a necessary con- potential of the game businesses will be of exports will allow Korea’s IT com- dition to offset Korea’s lack of maximized and consolidated by infor- panies to overcome the sluggishness resources. Considering that the compe- mation exchanges and a networking they have experienced of late. tition will become tougher within the among domestic companies and the effi- As in the past, exports -- especially IT, it goes without saying that a diversi- cient linkage among the export routes. exports of the five major export items -- fication of IT export items is much Of course, we will explore and sup- matter. The Korea International Trade called for. port, as well, other IT sectors that can Association (KITA) recently pointed to It is for such reasons that this issue of become “the world’s number one” so the fact that IT products -- semiconduc- ‘IT KOREA Journal’ turns your atten- Korea’s IT industry can realize its tors (US$19.5 billion), wireless com- tion to online games. Because Korea growth potential to its fullest extent. munications equipments ($18.7 billion), has the world’s best Internet infrastruc- and computers ($15 billion) -- over- ture, it is quite natural that Korea is whelmingly occupy an important por- emerging as a leader in the online game

IT KOREA Journal _ 1 CCOO NN TT EE NN TT SS Published by ICA∙IT Export Magazine

MARCH, 2004 4. Cover Story/ Kim Nam-ju Ceo of Webzen

6. New Products -J.C. Hyun System launches new models of computer main boards -Aralion launches SATA based storage for small and medium sized companies

16. MIC News 30. ICA News 36. Export News -Telson Electronics Signs a $12 Mil. Contract for Mobile phone Exports IT Korea Journal (ISSUE 6) to Taiwan -Fishing-CAM Exports $10 Mil. Amount of ‘Fishing Rods with Camera’ This Year

51. Special Report The World’s Best, Korean Games Publisher 1. Online Game Cho Sung-kap

-Trends in domestic online game market Senior Advisor Huh Sang-woong -Interview / Kim Jeong-ryul, CEO of Gravity Consultant -Introduction of Major Korean Online Game Companies Cho Joon-sang, Han Ji-young Editor -Thailand, Another Market in Asia Stanley Park -Interview / Kim Woo-sik, Chairman of the Korean Game Export Photograph Editor Kang Hong-kyu Association Associate Reporter 2. Mobile Game Shim Woo-sung, Kim Jong-yul Oh Hyun-sik, Choi Kyung-yeal -Market Trends of Local Mobile Games Design Director Lee Ji-hyun, Woo Soon-sik -The Leading Local Mobile Game Companies Marketing Manager -Interview / POCKETSPACE’s president Kim Do-sik Bob Chang Associate Manager Kim Jong-chol, Han Mi-sun 81. Market Report/ 2003 Business Results of Domestic Mobile Industry Published by ICA (International Cooperation Agency for 88. Company Interview KOREA IT) -Mointek 8F, NCA Building, Mugyo-dong Jung-gu, Seoul, Korea -NRD-Tech E-mail: [email protected] Homepage: www.ica.or.kr Tel: 82-2-2022-1400 94. Internet Statistics Fax: 82-2-2022-1499

100. Industry News Editorial Design & Printed by CP&R Kim Nam-ju, the CEO of‘ Webzen’ COVER STORY

Kim Nam-ju

the CEO of‘ Webzen’

TheTheThe onlineonlineonline gamesgamesgames willwillwill bebebe oneoneone ofofof thethethe entertainmentsentertainmentsentertainments enjoyedenjoyedenjoyed bybyby peoplepeoplepeople ofofof anyanyany age,age,age, dueduedue tototo thethethe variationvariationvariation ofofof thethethe gamegamegame subjects.subjects.subjects.

● Reported by Cho Joon-sang ([email protected])

Q: The great success of Webzen in China has become develop a new game to advance into the US and Europe by the topic of conversation lately and it is known that your 2005. company succeeded launching its products in Taiwan Q: What are the difficulties in exporting online games? and Japan. Please explain your plans to the entering of A: The difference in the“ emotions”is the most difficult. the US and European market places. Different from the success in China and Asia which have A: We listed our stocks in NASDAQ in order to advance similar cultures with our own, a great emotional difference into the US market. We plan to advance into Thailand within exists in Europe and the US. For example, individually the near future. We are considering to connect with major playing games other than multi-connection games are uni- game development companies into the US and Europe to versal in the European market. In order to overcome such advance into the US and Europe. We are in a hurry to cultural differences, pre-researches of the market and local-

4 _ IT KOREA Journal COVER STORY

ization will be enhanced. USA and Japan. Q: China is the largest market of the Korean domestic Q: It is known that the powerful companies of CON- online games; however, it is prospected that China will SOLE games, such as the Sony and Microsoft Corpora- be Korea’s greatest rival. Please explain about your tions, will advance into the online game market based on preparations for the competition with China. enormous capital and marketing power. Do you have any A: Even though Korea is the leader of online games, it is counter-plans? true that the countries like China are pressing hard on Korea. A: I think that the advance of the existing powerful game It is important to secure an independent development ability companies will be a crisis and a chance for the Korean online and operation ability to succeed in competition. game companies at the same time. The existing CONSOLE Q: What are the key points for a successful advance game companies will take three to four years in developing into China? online games and learning operation know-how. During that A: Thorough contracts with business partners and man- time, we will grow in the online game market by such action agement of the business partners are important. However, it as advancing into Europe and North America that are still is also important to confirm the reliability of the partner unexploded territories. before making the contract. We researched the reliabilities of Q: Please explain your future plans in business. the local companies before selecting Nine.com as a local A: First, my plans for this year are the establishment and partner in China. When the business partner was selected, a the operation of a game portal site. win-win strategy should be arranged based on mutual confi- And, a new product following the‘ Mu’is being devel- dence. We consider that the key of the success was division oped which be published in 2005. The new product is being of the roles like the Webzen took charge of developing developed to be advanced into the Europe and North Amer- games and the Nine.com took charge of local services. ican markets. Q: What are the“ self-confidences”of leaders of the Q: How much amount of time, budget and manpower successful online game companies? are required to develop a multi-connection game, in gen- A: Foreign countries recognize the competitive power of eral? the Korean online games. The foreign companies were not A: It depends on the size of the game. On average, the confident about the success of the online game business a development of a complete online game requires about 30 few years ago, but they are aggressively trying to service the people, 7 to 8 billion won, and about a year and a half. Korean online games, now. The foreign companies recog- Q: What is your management philosophy as a CEO? nize that the online game business is an attractive item due to A: I think that management is“ finding a hidden value”, so the large revenue compared to the sales, because online I try to throw out preconceptions and to find unseen values. games circulated through the Internet do not require circula- For example, when I visited Thailand to advance the‘ Mu’, I tion fees. thought that online games could be successful in Thailand, Q: What are the causes of the success of the online due to the Internet infra existing there, such as PC centers. games in Korea? Q: What is the direction of the development of the A: In Korea, a high-speed Internet network was widely online games? distributed and a specific infra, such as PC centers, was con- A: The online game market will increase in the US and structed. In addition, the game companies developed the Europe, plus, the online games will be one of the entertain- online games as a niche market other than the PC games and ments enjoyed by people of any age, due to the variation of the CONSOLE games that were already occupied by the the game subjects.

IT KOREA Journal _ 5 New Product

New Product of this Month

J.C. Hyun System launches new models The storage capacity can be expanded up to 4.0TB at its of computer main boards maximum. And, it is convenient in use because the program for the storage management console provides a J.C. Huyn System web browser based GUI (Graphic User Interface). (www.jchyun.com) Ja-choon Chung, the president of Aralion, said “The main has launched their feature of this new product is to supplement a new 865PE chipset ma function to meet the computer system environments of in boards of giga small and medium sized companies rather than to lower bite technology, the the price by reducing the function of the existing upper ‘GA-81PE1000-G products.” In addition, he revealed, “Aralion is planning to GT’ series. focus on aggressive marketing and sales based on their These products are the succeeding models of the ‘GA- experiences and knowledge acquired in the course of 81PE1000” series, which were hot items last year, and attracting customers in diverse industry groups and appli- supports the FSB800 and the 1M L2 cache prescott cation last year.” Tel: 82-2-2142-1500 processors. Furthermore, these models have had added to them supplementary functions such as embedding an 8-channel sound codec and a giga bit LAN, which are Samsung Electronics sells 12-inch adopted only for high class models. portable wide DVD players Tel: 82-2-2105-9100 Samsung Electronics (www.sec.co.kr) has Aralion launches SATA based storage announced on the for small and medium sized companies 17th of February that they will start to market portable DVD players (Model DVD- L1200W) on the local market, with 12-inch wide TFT-LCD screens. They adopted a 12-inch LCD for the first time, so that users can The local storage maker, Aralion (www.aralion.com), has enjoy movies with a wider screen than ever before launched a SATA based storage suitable for a 2nd outside. storage for small and medium sized companies on the The new products (Model DVD-L1200W) are designed for 18th of February. convenience in carrying with a super slim type that is Aralion’s new storage product, the Hyperstor 1600SA, is 29mm in thickness and a continuous reproduction with a outstanding in economical efficiency adopting the SCSI free supply of two batteries. It has three headphone (FC)-IDE method. It can be extended not only to the DAS, receivers to enjoy all balanced to function as a whole. but also to the SAN or the NAS systems supporting a FC or Furthermore, it is supplied with a adaptor for automobiles a SCSI interface. In addition, it is equipped with a triple free of charge. This item can be used in diverse ways power supply system, ITPS (Internal Triple Power System). outside because it is capable of reproducing DVD titles,

6 _ IT KOREA Journal New Product of this Month

music CDs, Video CDs and MP3 CDs. It, also, can be uti- at the same time through adjusting its resolution (need to lized as a temporary home theater with a remote controller connect to VCR terminal) °„Convenient adjusting screen and a household adaptor at home. size (normal,larger,small) °„Supports a digital sound Byung-ryul Ryu, the managing director of the Digital Video output terminal. Business Division of Samsung Electronics, said, “The Dong-jin Choi, the executive director of DAV Business market prospect for mobile digital products is bright Division of LG Electronics, said, “With the launching Sky because of the acceptance of the 5-day week.” And, he Life HDTV set-top box at this time, the supply of HDTV revealed that they will continue to strengthen the mobile and HD broadcasts are expected to become widely DVD players, which are popular on overseas markets popular.” including the US. LG Electronics provides a three-month free watching The selling price of the DVD-L1200W is on the level of ticket to the buying customers who makes an KW1.4 million. arrangement of a 3-year subscription to the Sky Life HD premium channel by the end of February in commemoration of the launching of this new products on the market. LG Electronics releases Sky Life HDTV The price of this model is 659,000 won. set-top box with a combined use for ground waves Image Quest launches 2 new models of LCD TV

LG Electronics (www.lge.com) has announced on the 15th of February that they launched a set-top box (Model LSS- 3300), a first in Korea, which is capable of both satellite and ground wave HD broadcasting and a two-way service. It is remarkable that this product can use the SkyHD, an exclusive channel for high definition broadcast for 24 Image Quest (www.hyundaiQ.com) revealed on the 3rd of hours, ground wave HD broadcasts and the ‘SkyTouch,’ a February that they launched two new models of the 26- two-way service, not to mention, the existing sky life inch wide LCD TV and the 20-inch LCD TV. channels. These two products are differentiated for Europe, U.S.A. The consumers that have digital TVs and home theaters and local markets, and they are made according to each can enjoy not only high quality images and sound broad- market’s required specifications for digital TV including casts, but also a variety of channels and additional ser- transmission methods. Either a hanging or standing type vices with this set-top boxes is optional. Apart from these products, Image Quest is to Main features of this model are: °„Provides convenient show off a 17-inch LCD TV in the 1st quarter and a 32- broadcast information on satellite and ground wave broad- inch wide LCD TV in the 2nd quarter to complete a line up casts *Recording of digital broadcast programs to a VCR in the 1st half of this year.

IT KOREA Journal _ 7 New Product

New Product of this Month

Naicom launches mouse pad for pre- noticeably enhancing performance over price. vention of wrist strain This product is a high performance 4-way server embedding the latest Intel Xeon MP chip and ‘XA-32’, an Naicom (www.flexarm2000 .com) has exclusive chip for IBM. This server, to which is a 2nd gen- announced on the 8th of February that eration enterprise X-architecture, has technology for the they have launched multi-functional main frame including a ‘memory mirroring ‘protecting data mouse pads, the ‘Dr. Flex Arm,’ which is in emergency storing data into two memories, is applied, designed ergonomically for prevention of is by no means inferior to Unix server in stability. wrist strain. And, it has a 3U rack that takes 30% less space than These new products were developed into other products, it and can store 876GB data without a 2 kinds, one is designed after a ladybug separate storage with embedded 6 HDDs. It can support a character for children spending much large network system such as the SAN (Storage Area time at the computer, and the other is Network) by increasing input/output terminals from 6 to 18 designed as a wide pad for use in office. with the RXE100 (Remote Expansion Enclosure) module, It can be attached or detached easily and its height can be plus, a remote input/output control device. adjusted according to the working condition. The mouse Sang-ryul Cho, the executive director of the System pads and the arm supporters can be interchangeable. Its Operation Division of LGIBM, said, “In making a data material is soft resin, thus it can be used semi-perma- center, it does not require a low cost for space, and a nently. small and high performance product is favored.” And he According to company sources, it is not only lessening the emphasized this server is much higher in performance, youth’s stress, there are others, such as that of a com- but that it is priced to half of that of existing 4-way server puter programmer or a pro gamer, who have to use com- products. puters for long periods of time. But, these items correct one’s posture. The price is 39,000 won/set. Tel: 82-31-715-9186 MTek Vision develops camera CSP

M Tek Vision(www.mtekvision. LGIBM unveils a new product of a small co.kr), the developing com- size IA server pany of the control IC for camera mobile phones, has announced on the 9th of February that they developed a camera CSP(camera signal processor), the ‘MV9311,’ which is suitable for a camera mobile phone with high quality images. The features of this product include: ▲Supports 3million pixels CMOS/CCD image sensor *Automatic focusing ▲ LGIBM(www.lgibm.co.kr) showed off a new product of Adjustable optical zoom lenses *Correction of distortion IA(Intel Architecture)server, the ‘e server x 365’ on 12th, for super small lenses *Mechanical adjustment of shutter

8 _ IT KOREA Journal New Product of this Month

timing beta test for the purpose of making this vaccine program Taking this opportunity for launching the new product(MV perfect in October of last year. This product is scheduled 9311), M Tek Vision plans to expand the supply of the to be launched in March with the price being 55,000 won CSP to camera sensor makers and camera module (including VAT). They also provide free upgrade services makers, and to expand their end-users, which were limited for those who have purchased the prior version, to the to the existing mobile handset makers so far, to digital V3Pro 2004, with the customer service period not being camera makers. considered expired. M Tek Vision plans on a mass production in the 2nd Prior to marketing the new product, AnhLab were selling quarter, plus, it expects about KW10 billion worth of a new the item in advance at a 20% discount price via its web turn over this year. site between the 9th through the 22nd February. It will CSP not only changes color senses to that of actual award those, who purchase the products and hey will be images from the original image data coming through the selected by lottery, with prizes including digital cameras, camera sensor and adjusts the brightness, but also does MP3 players, a USB storage, etc. such mechanical controls as automatic focus adjustment Tel: 82-2-2186-6000 that are necessary for high pixel products. M Tek Vision, the specialized maker of camera control sensors, recorded sales of KW56.4 billion last year and it Etronics discloses 43.8mm super slim targets sales goal is 15 billion won this year. DVD player Tel: 82-2-6336-4114 Etronics (www.inkel. co.kr) said that they will AhnLab shows off ‘V3Pro 2004 show off a super slim DVD player (Inkel VD AhnLab (www.ahnlab.com) 3500) with a 43.8mm in has announced on the 8th thickness. of February that they have According to company launched the ‘V3Pro 2004’, the new virus vaccine program sources, this product has a feature of making more than for a PC. The V3Pro 2004 has the features of not only two times as clear and more distinctive images than the protection from the existing viruses and worms, but also of existing interlace method applying the progressive pre-monitoring with an additional function. This vaccine scanning technology. program is also equipped to screen out spam mails so Furthermore, users can make a CD at the computer with that it protects one from not only general spam mails, but the pictures taken by a digital camera or down load from also worm viruses with certain titles like mydom worms, the internet, as well as, watch via TV like a picture album, which were widely spread. As the messenger monitoring or when we switch on a home theater unit, the back- was added, it since can scan and cure viruses and worms, ground image can be changed to the picture we favor. which tend to spread through messengers such as the We can reproduce a DVD+/_R/RW, aCD, aCd-R/RW, a MSN. And, it enhanced user’s convenience with an option MP3, aKODAK CD and a JPEG as well as a DVD. The of ‘easy set’ on its environment set menu. price is on the level of 170,000 won. AhnLab recruited an evaluation group of 5,000 to do a Tel: 82-2-850-6000

IT KOREA Journal _ 9 New Product

New Product of this Month

Samsung Electronicsa Comes Up With a with AN operating voltage OF 1.8V in the 2nd half of this 1.8V DDR SDRAM year. Accordingly, the graphic memory of 1.8V graphic DDR is Samsung Electronics to surface as the leading product.” And, they revealed that (www.sec.co.kr) has Samsung Electronics will be strengthening its market announced on the 8th position as the of February that they No. 1 company in the industry by keeping more than 50% launched the high per- of the market share of the high performance graphic formance graphic DRAM market, as well as, on the DRAM for the PC DDR(GDDR) SDRAM market based on its technical predominance. exclusive for the super power-saving notebook computer According to IDC, the market surveying company, the with an operating voltage of a 1.8V, capacity of 256mega global notebook computer market is expected to keep bit(Mb) and operating speed of 1Gbps a first in Korea. growing at a high annual rate of 20% by 2007 and the The outstanding feature of this product is its ability to save graphic D ram market is also expected to expand from power consumption of about 50%, by lowering the oper- US$1.2 billion this year, 2004, to $1.7 billion in 2006. ating voltage from the existing 2.5V to 1.8V. Solving the problem of heat generation, it is expected to contribute to LG Electronics Releases ‘Real Music high performances of notebook computer graphics. The Phone’ desktop PC can use the graphic DRAM, which can operate at 1Gbps at maximum, but the notebook computer has used the graphic DRAM operating at 600Mbps of low performance comparatively due to heat generation. Though this new product is of the 256Mb class, it is made for the same size as the 128Mb product for existing notebook PCs, and its does not require additional space to embed up to 128MB, two times as much as 64Mb, the maximum capacity of the graphic memory for existing notebook PCs. With this graphic DDR SDRAM, the data can be transferred up to 1Gbps at its maximum, so that the multimedia graphic performances such as 3-dimensional graphic games, DVDs and TV can actually be implemented. The graphic DRAM embedded in the graphic card of a PC LG Electronic(www.lge.com) showed off its new product, and notebook computer carry out the performance of the ‘Real Music Phone,’ through which we can listen to the managing graphic data, and it is a higher performance music stored in the mobile handset without opening the and value added product more than so general DRAM. folder. According to the company sources, “The main memory for With the ‘Real Music Phone’ (Model LG-KV1400), we can THE notebook computer is expected to convert to DDR2 enjoy listening to the music with the MOD key outside with

10 _ IT KOREA Journal New Product of this Month

the folder closed, plus, a decorative 3-dimensional avatar Above all else, as it can be purchasable per module, it can at our will. This item realizes a variety of multi-media ser- meet an user’s individual needs. vices stored in waiting or music reproduction screens. Zoi Net is expected to achieve sales of more than 2 billion In addition, such function as ▲Recording pictures of an won on the PC backup sector this year. For this, it has animation for 1 hour and its reproduction by a VGA class concluded recently a general sales agreement with (300,000pixels) camera ▲Down loading VOD contents ▲ Mokomo to secure sales outlets covering all of Korea. Real time streaming and ▲64 polyphony 3D stereo Zoi Net, which does marketing and specialized backup sounds ▲A wireless infrared communication port(IrDA) consulting for such foreign products as Regato and Korea are supplemented. Phone : 080-023-3300 IBM, recorded sales of KW8 billion worth last year and it is This 26-inch wide product (Model LT260W) excels in targeting sales mark of more than 10 billion won this year, brightness and clearness compared with other models 2004. Tel: 82-2-3479-4700 adopting a 16 cold cathode fluorescent lamps (CCFL), and an adopted ‘SRS WOW’ to enforce an audio surround function. With a visual angle of 170 degrees, users can LG Corporation sells a 8.2 million pixels watch on the bright screen even at a side slant. It is con- digital camera venient to use with five steps of a zoom, PIP, a panorama and a still. Hong-gi Kim, the president of Image Quest, said, “We expect sales of KW82 billion of digital TVs this year, cen- tering on the digital TV business.” And he further said, “Beginning with the CEBIT2004 in March, we will do a positive marketing through local and global events including road shows in the major cities in Europe.” Tel: 82-2-583-6872 LG corporation (www.lgcorp.com) revealed on the 29th that they will show off a new model, the ‘EOS-1D Mark II’ with 8.2 million pixels, in April, succeeding from the SLR Zoi Net unveils new 4 function modu- digital camera(Model EOS-1D), which is now on the larized backup master market. This new product, embedded with a 28.7mm large CMOS Zoi Net(www.zoi.net) sensor to decrease noise and to take pictures in detail, is launches an upgraded capable of taking 8.5 shots a second and 40 shots contin- product with modu- uously at its maximum. larized four functions of its in-house developed PC backup The newly developed white balance correction takes an solution(backup master). adjustment effect of fine white balance through a color The backup master version 3.5, which Zoi Net is correction (CC) filter. scheduled to show off in April of this year, is the product It can use two kinds of memory cards, a compact flash which expands and strengthens the existing products and a SD memory card and confirm the image by 15 steps limited to backup into a 4 function of ‘share, forced with a 230,000 pixels LCD display. It can print directly with backup, system restoration, and resources management’. Canon’s direct picture printer. Tel: 82-2-3773-1114

IT KOREA Journal _ 11 New Product

New Product of this Month

Ellion Digital releases DVD+RW DVD As it (Model 505D.505M) recorder includes the Chinese letter dictionary containing 4,888 letters and 1,750 phrases of collo- quial tour Chinese and Japanese, it provides various information to students who are preparing for their Ellion Digital (www.elliondigital.com) announced on 28th entrance examination, as well as, business men and that it has developed a DVD recorder(Model DVR-900A) overseas tourists. It is embedded with a high density LCD with DVD+RW technology that will be brought to market and it is equipped with an e-book function that can use the next month. contents of the text files down loaded into the dictionary This Model DVR-900A is capable of storing 4.76GB of from a computer. data onto a DVD disc, as well as, reproducing general According to company sources, they will launch the new DVD titles. The JPEG and MPEG1 that are photographed concept of this electronic dictionary with added MP3 in the with a digital camera, camcorder and TV broadcast can be first half of this year, 2004, and hopes to penetrate recorded with this DVD and be watched on a TV screen. A aggressively into the local electronic dictionary market, disc can record for one hour in the clear mode and for six which is dominated so far by Japanese companies such hours at maximum with a general VCR image quality. as Sharp Electronic and Casio. Because of the embedded NTSC TV tuner, it can do The size of the local electronic dictionary market is esti- scheduling and registered recording of the exact program mated to continue the growth pattern seen from 120,000 setting timer when recording a TV broadcast. units (24 billion won) in 2000, to 196,000 units in 2001 and With recording, deleting, editing, and changing of animation 700,000 units this year, 2004. pictures, it can freely edit images recorded in DVD freely. Tel: 82-2-2691-7770 Ho-Sung Park, the president of Ellion Digital, said, “ We are scheduling to exhibit the large capacity hard disc type recorder and the new super slim DVD recorder at the Net Plaza unveils vacuum tube amp Cebit Show which is to be held in March in Germany.” And he expressed the hope that they will achieve sales of more than $35 million in the DVD recorder sector.

Myung Ji Hitek launches an electronic dictionary

Myung Ji Hitek (www.mjhp.com) revealed on 27th that they have developed an electronic dictionary that has embedded speaker English and Chinese spoken in a real voice and it sells The vacuum tube amp, representative of analog audio, under the brand name of ‘ESSEM’. joins the PC speaker.

12 _ IT KOREA Journal New Product of this Month

Net Plaza(www.chammsori.com) revealed on 26th that book marking. they will display 2.1 channel PC speaker (Chammsori I- They are designed with a cylindrical body. And, the high FIA6) that is embedded with vacuum amp. quality materials take advantage of the special quality of According to company sources, this speaker with RMS metal chrome that creates a dynamic but soft image. 80W makes and reproduces the digital sound of a PC These are developed in two colors, cyber blue light softer by removing noise with an unique function of (128MB) and imperial gold (256MB). Embedded with a vacuum tube. The source added, it makes a grand sound USB plug, it can be used for mobile storage. with the wood made outer box and with the same finish as According to company sources, they recorded sales of a piano. The features of this product include ▲Supporting KW4 billion worth of exporting EZ3 for the last 6 months the answerback width of 20Hz to 200Hz frequency and and they expect that export of EZ3 plus will be increased the signal noise factor of 85dB ▲Embedding a 3inch full because orders in advance from Europe and the US are range unit and a 6.5inch unit to satellite and woofer being increased. Tel: 82-2-705-0025 speakers respectively. Chang-rak Son, the president of Net Plaza, said, “Even though multi channel speakers are popular, there is a large MCS Logic Discloses new network con- demand for high quality 2.1 channel speakers for the troller purpose of enjoying music because CDs and MP3s are in stereo.” And he continued, “The new speakers are made MCS Logic (www.mcslogic.com) elaborately to produce a good quality sound using a vacuum revelaed on 25th that they have tube amp as these are PC speakers for listening to music.” launched a flash type MP3 The consumer price of the ‘Chammsori I-FIA6’ is on the decoder chip and network con- level of KW250,000, a rather high price due to its vacuum troller for an embedded internet tube. The oxide free copper and gold-plated RCA cables system. are provided, different from the PC speaker. MCS Logic, which has focused on CD MP3 decoder chips Tel: 82-2-704-3368 so far, has a strategy of securing their market portion by diversifying their products to include a flash memory type MP3 decoder. Alltec Electronic launches MP3 players This company has launched its first products onto the supporting multi-language abilities local network market, which were designated as part of the next generation business. These chips have such Alltec Electronic (www.e- functions as processing effectively the TCP/IP protocol alltec.com) has announ- and it can be used in so many ways such as converters, ced on 25th that they developed and launched the MP3 controllers, processors and interface abilities. Nam Sang- players, the ‘EZ3 plus (Model AMP-1301H. and1302H),’ yun, the president of MCS Logic said, “We are marketing which supports multi-language abilities (ID3). this chips in advance to network hardware developers in These new products, which has been developed as the Korea and Taiwan from last year.” And, he continued, “We succeeding models to the ‘EZ3’ releases in June of last have expanded our business areas from MP3 chipsets to year, are equipped with the ID3 looking at titles of songs networks, thus we expect sales from the first half of this and names of singers at a glance, as well as, folding and year.” Tel: 85-2-2376-2322

IT KOREA Journal _ 13 New Product

New Product of this Month

Inside Telnetcom sells new graphic cards threading, 800MHz FSB, plus, a dual channel DDR 400 memory. As it is embedded with the composites of the S video and TV output terminal, it can be connected with various display devices. It can construct the multi-media environment supporting coaxial and optical output. The price has not decided upon. Tel: 82-2-704-4481

Samsung Electronics launches a color laser printer

Inside Telnetcom (www.insidetnc.co.kr) revealed on 18th that they will launch graphic cards with the latest chipsets of Nvidia of the US, the ‘inside FX5700 conquest’. This graphic card supports a 450MHz core clock, a 25MHz higher than chipset’s basic performance. Its memory clock is 550MHz and, thus, it can process high capacity graphics quickly. It is embedded with a 256 MB memory and it supports a directX 9, graphic acceleration pot of 8 times speed. In commemoration of launching the new products, Inside Samsung Electronics (www.sec.co.kr) announced on 19th Telnetcom will provide lottery tickets, by which participants that they launched a color laser printer(CLP-500), which can exchange for upgraded models worth 450,000 won, was developed in-house. free of charge. Tel: 82-31-424-1900 This printer can print 20 sheets per minute for black and white documents and five sheets per minute for color documents. Two new models have been launched in total Suma Electron shows off micro ATX including the model CLP-500N, which supports the main boards network. According to company sources, minimum noise (48dB) Suma Electron (www.suma.co.kr) has been realized with this printer by its own technology, have announced on 13th that and user’s convenience has been enhanced by the they will release a micro ATX drawer type toner replenishment method type main board, the ‘superior Myung Han-il, the deputy general manager of digital micro 9100G’. printing business division, said, “Through aggressive mar- This product, which is an appro- keting, they will make the local market of 20,000 units last priate model for construction of year grow more than 100% this year.” The consumer price barebone or slim PCs, home theater PCs, supports hyper is KW1.58 million/unit (including VAT)

14 _ IT KOREA Journal New Product of this Month

Allstorage unveils mobile storage as the power IT. And, it realized a ‘power condition graphic embedded with a MP3 player system’ separating a color LCD touch screen. Through this action, it can manage analysis and control of power quality, Allstorage(www.allstorage.com) be an indicator of the power condition and forecast an elec- announced on 18th that they will trical fire. Kim Im-bae, the head of the Business Division display outer storage equipment said, “With enhancement of the visual performance uti- embedded with a MP3 player, the lizing IT like this, this new product has the nickname of ‘axiz pro’ ‘digital graphic power board.’ He went on, “ We will continue This product, to which a 2.5inch to play a leading role in technology differentiation applying IT HDD with 30GB capacity is to heavy electric equipment in the new year. embedded, can store images and Tel: 82-2-569-3304 music files, as well as, allowing its user to enjoy the music stored instantly. Furthermore, it can save file data easily because it can read all memory cards on the market. The Unitech Electronic launches new main consumer price is 360,000 won/unit (including VAT) boards Tel: 82-2-3465-0805

KD Power launches intelligent power board

KD Power (www.kdpower.co.kr) has revealed on 18th that they launched the ‘new 2004 intelligent power board V6.0’ adopting zeroin transformers for the first time in the world. Unitech electronics(www.unitec.co.kr) has announced on This new power board, an 4th that they will launch two models of main boards with a essence of the KD Power’s intelligent power board series, 865PE chipset and a 845PE chipset. was developed focusing on performance innovation The new product, “the MS-865PE LS” supports a FSB through technical applications of dispersing a molecular 800MHz and a dual channel DDR 400,AGP 8 times in structure on the steel plate adopting zeroin transformer speed, and it is embedded with total eight USB 2.0 pot and exclusively using a high efficiency steel plate and serial ATA with ICH5 at the south bridge. The MS- developed by POSCO. Accordingly, KD has self evaluated 845PE supports a 1 AGP and a 5 PCI. to get such results as ▲High efficiency (Amorphous Unitech Electronics said that they will refund the items’ 98.22%, Zeroin 98.77%) ▲Low noise (Amorphous 62DB, purchase cost, if the new products are inferior to other Zeroin 42DB) ▲Low cost (maximum 30% against products of the same specification in quality or in case of Armophous). In particular, it is possible for this power claim on after service. They, also, provide coupons with board to do intelligent operations of graphic digital internet which a 30% discount is given in replacing main boards. with application of the CDMA wireless network technology Tel: 82-2-714-8086

IT KOREA Journal _ 15 New Product

New Product of this Month

Thinkware unveils ‘Inavi free’ phone makers such as Samsung Electronics and LG Electronics successfully launched products supporting Thinkware (www.thinkware. the SD card, SD card navigation products are launched com) has recently launched a lot.” Tel: 82-2-3433-1500 a 256MB SD card slot, the ‘Inavi’ package convertible to the HP and Cellvic. Samsung SDI’s presentation of the ‘Inavi,’ with information of ‘80-inch PDP’ the installation for golf fields in Korea, provides the most suitable traveling course to the destination in voice sound and in real time. It can explore the byways and one-lane roads. Geonspace (President Joon-Pyo Lee), the specialized developing company of navigation soft wares, launched the SD card, the ‘Mio168’, which enhanced greatly such conveniences as potable, simplicity and mobility on 8th. The ‘Mio168’, which was co-developed by Geonspace Samsung SDI (www.samsungsdi.co.kr) has held their and Id dotcom(President Byung_Gon Choi), a spe- launching ceremony for the 80-inch HD PDP at the cialized PDA developing company, was developed as Shilla hotel on 6th. This product, a HD high resolution the succeeding model to the compact flash(C/F) card PDP, is the largest TV display in the world with type ‘pocket navi’. It is remarkable that the ‘Mio168’ is 1920mm(width) x 1,080mm (length). the first single unit product of the PDA and the GPS in SD (Secure Digital) card and navigation devices pours down Korea. In parallel with the PDAs, which are becoming smaller, As it consists of the PDA and the ‘pocket navi III’ in a single quite a few secure digital (SD) cards and car navigation package, it is not necessary to purchase separate devices that adopted slots started to be displayed on the expansion packs or a GPS holder. The ‘Mio168’ is easy to tetematics market from the beginning of the year, 2004. use if it is connected to a power source with a cigar jack. The industry experts predict that the navigation market Before launching the ‘Mio168’, Mando Map & Soft and exclusive for PDAs will be changed rapidly from existing Navtech had launched the ‘Speed navi’, a SD card type compact flash(C/F) card type products to secure digital navigation package and ‘Injomap Motti’ with an elec- (SD) card slot products, which become smaller and tronic map and a GPS receiving mechanism respec- more light, this year. tively at the end of last year. According to industry sources, Thinkware launched the In connection with this, Ahn Yun-ok, the team manager SD card slots products the ‘Inavi’ package on 5th fol- of Geonspace said, “The demand for PDAs supporting a lowing Mando Map & Soft and Navtech. And SD slot is increasing as PDAs become smaller and Geonspace is scheduled to show off its SD card type more compact.” She continued,” Because the PDA products on 8th. Tel: 82-2-727-3100

16 _ IT KOREA Journal MIC NEWS

Regular Cooperation of the IPv6 with the EU

Date : 2004-01-16

orea and the EU regularized their cooperation in boosting the communication speed of the Trans-Eurasia Information K Network(TEIN) and developing the IPv6 application service technologies. The Korean Ministry of Information and Communication dispatched representatives of the IPv6 engineers who work at the Electronics and Telecommunications Research Institute(ETRI), the National Computerization Agency and the Korea Information Strategy Development Institute with Seok Ho-ik as a leader to ‘Global IPv6 Service Launch Event’ that was held in Brussel, Belgium on January 15 and 16. Each member of the delegation of representatives were participants on the various panels, including the reading of a paper on “The Present Position and Policies for Promoting the IPv6 in Korea”. These same said representatives gave a trial performance of the IPv6 based HDTV video and live streaming systems that are developed by the ETRI. Those in attendance of the ‘Global IPv6 Service Launch Event’ showed such interest in the paper and the performance that the Ministry of Information and Communication raised the international position of Korea. The leader Seok Ho-ik had an interview with Dr. Erkki Likanen, who is a member of the Europe Executive Committee, and they agreed to enhance their cooperation in boosting the communication speed of the TEIN and developing the IPv6 application service technologies. Dr. Erkki Likanen requested that Korea to positively participate in an IPv6 technology development project, which would be pro- ceeded from 2004 as a part of the sixth framework program(FP) of the Europe Executive Committee. In addition, the delegation leader Seok had additional interviews with Dr. Latif Ladid, who is an IPv6 International Forum chairman and a Europe Taskforce chairman and Mr. Jim Bound, who is a North America IPv6 Taskforce chairman, and they all agreed to construct a global cooperation system for promoting the IPv6. Furthermore, the above mentioned threesome agreed to participate in the Global IPv6 Summit International Event that would be held in July, in Korea, in order to arrange more concrete plans. Accordingly, it is predicted that the IPv6 will be propagated within Korea and the international IPv6 cooperation will be enhanced. Cho Gwang-bok 750-1245([email protected])

Publication of ‘Civil Appeal Cases about Communication

Service’ Date : 2004-01-16

guidebook including the prevention and relief gained from injuries communication services has been reprinted with additions A and emendations. As injuries from the communication services are increasing nowadays, the Korea Communications Commission produced a ‘Civil Appeal Cases about Communication Service’ in which various civil appeal types and injuries received in the Communication Civil Appeal Center of Korea Communications Commission are analyzed for the communication service users to help prevent injuries and be quickly relieved. The Korea Communications Commission had published a guidebook including injury relief methods according to civil appeal types last year and this current guidebook is a second edition.

16 _ IT KOREA Journal In the second edition of the guidebook, the representative injury cases and relief methods can be generally placed according to six service fields: ▲mobile telephones ▲an ultrahigh-speed Internet ▲local calls ▲trunk calls∙additional calls ▲international tele- phone service ▲online games. Each of the aforemention are explained in further detail within the publication. In addition, basic knowledge about communication, civil appeal treating methods and civil appeal treatment centers are included as supplements within this edition of the guidebook. The Korea Communications Commission will distribute the guidebook for free to local self-governing bodies, consumer bodies and related companies. Shin Jin-seop 750-1780 ([email protected])

Ministry of Information and Communication Rated First

in Information Section Date : 2004-01-20

he Korean Ministry of Information and Communication was ranked first in every gov- T ernment-oriented evaluations that dealt with information, so it is confirmed by its controlling in-house body that the Ministry of Information and Communication is the information leading Ministry. The Korean Ministry of Information and Communication was elected as the best Ministry in the Civil Service Information Ability Competitive Exhibition held by the Ministry of Government Administration and Home Affairs in November of 2003 and awarded the first place in the Ministry Information Level Evaluation performed by the Office for Government Policy Coordination in December of 2003. In addition, the homepage of the Ministry of Information and Communication was selected as the best homepage in the Homepage Evaluation of Administrative Agencies performed by the Ministry of Government Administration and Home Affairs on January 19, 2004. Chin Dae-je, the Minister of the Ministry of Information and Communication, had emphasized internal renovations and changes since February, 2003, when he was appointed as the department’s Minister Chin made an effort to realize informationize the ministerial works and to reinforce the information-utilizing ability of its officers. Minister Chin practiced meetings of executive members by using a policy management system(GPLCS) instead of depending on paper documents. He used electronic reports in an e-mail type for reducing face-to-face reports, created online proposals by using group wares in the Ministry, plus, using presentation documents instead of word type documents. These are just some examples at Minister Chin’s attempts for internal renovations within his ministry. According to the result of the awards, the information abilities of the officers of the above mentioned Ministry can be judged, as well as, the Ministry can be a model for the application of the IT technology in changes and innovations that were emphasized by the concept of the “Participative Government”. The officers of the Ministry of Information and Communication have self-confidence and strong wills concerning the conducting of various information and communication policies like the IT growth power, which is based on the information abilities. Yoon Hyun-ju (750-2140) ([email protected])

IT KOREA Journal _ 17 MIC NEWS

German Fraunhofer Institute Advancing Into Korea

Date : 2004-01-29

raunhofer IGD, Germany’s leading research institute, is F setting up a research and development(R&D) center in Korea. A Memorandom of Understanding(MOU) for the establishment of the R&D center will be contracted between Dr. Encarnacao, the IGD director of the Fraunhofer Institute and Kim Tae-hyun, the director of the Korea Institute of Information Technology Assessment in the government building of the Ministry of Information and Communication at Gwanghwamoon on January 30, 2004, with Chin Dae-je, the Minister of the Ministry of Information and Communication and German Ambassador to Korea Michael Geier in attendence. The Fraunhofer Institute is known as one of the four top research institutes within Germany in the field of engineering technology development and its adaption for industrial use. The Fraunhofer Institute includes eighty unit research institutes and thirteen thousand researchers, plus, an annual budget of a billion Euro. The Fraunhofer IGD Institute, which is to set up an R&D center in Korea, processes global technological power in the areas of computer graphics, virtual reality and information security. The Fraunhofer institute’s virtual reality technology is especially praised and used by many famous German automobile manufacturers like Mercedes-Benz and BMW. The Korean Ministry of Information and Communication said that the Fraunhofer Institute IGD would invest up to five billion won a year for four years, a total of 20 billion won in research funding and collaborative research manpower, as well as, it would begin collaborative research with the ETRI, various Korean companies and universities, this activity of interaction is expected to commerce in April of 2004. It is known that the Intelligent Manufacturing technology and the Information Assurance technology will be researched at the German based R&D center. The Intelligent Manufacturing technology uses a virtual reality technology to manufacture a virtual sample and to efficiently design a product, produce parts, improve manufacturing processes and perform a simulation by co-working on the networks. The Intelligent Manufacturing technology is expected to save time and money for developing electronic products like cellular phones and automobiles. The Information Assurance technology is a DRM technology for assuring information and copyrights in storing and transferring data and multimedia contents that are received and transferred via on-line methods. The Information Assurance technology is required to make it possible to secure reliability for online businesses. Hyundai Motor, Samsung Electronics, and Samsung Heavy Industries were proposed to participate in the abovementioned research. The Korean Ministry of Information and Communication prospected that the technical interchange between Korea and Europe would be activated to introduce the excellent technologies of European countries to Korea and to increase the advancement of the domestic companies here into the European market. Chung Seok-jin 750-2314([email protected])

18 _ IT KOREA Journal Announcing Research Results About the Present

Conditions of Digital TV in Foreign Countries Date : 2004-02-02

he Korean Ministry of Information and Communication and the Korea Broadcasting Commission released a report about T research on the actual condition of foreign countries. The report had been created between the period of November 22 to December 16, 2003, in order to stop adverse criticisms on the digital TV transfer type. The report includes the actual conditions of the issues, some named were ▲performance of a fixed receipt in the ATSC type ▲the possibility of a HD mobile receipt in the DVB-T type ▲present conditions of the mobile receipt ▲present conditions and prospects of the HD broadcasting service provision ▲matters related to a single frequency network. More specifically, about the performance of the fixed receipt in the ATSC type, the report said that the development of a receiver technology such as an equalizer and the improvement of a receiver method had taken place with the goal being to improve a receiving performance. In addition, the CRC said that an ATSC receiver of an FPGA type had been improved to the same level as the DVB-T type, based on a laboratory test result using a DVB-T receiver and an ATSC receiver of the FPGA type. ▲CRC: Communication Research Centre, FPGA: Field Programmable Gate Arrays About the possibility of the HD mobile receipt in the DVB-T type, some broadcasting stations of England and Australia claimed that the HD could be compatible with a mobile receipt, technically, but the German T-Systems came to an evaluation and opinion that the HD mobile receipt was not realistic. In addition, when the mobile receipt was tested in Australia, the technical possibility of the HD mobile receipt was proved, however, it was required to carefully examine the reality and the necessity before the service took place. On the other hand, Japan adopted an individual type and proved the technical possibility of the HD mobile receipt by using a diversity receiver with four antennas, which was manufactured by the NHK Technology Institute. A large number of broadcasting stations from the visiting countries were interested in the mobile receipt. Especially, the broadcasting stations in Germany and Taiwan, whose ground wave broadcastings have low occupancy rates, actively promoted the mobile receipt in order to enhance their competitive power, and such broadcasting stations expected that the mobile receipt would make profits in the case where the importance of the mobile receipt are increased. When a diversity receiver, which has been on the market since June last year, is used, the mobile receipt in vehicles is possible; however, the broadcasting stations that had adopted the DVB-T type planed to provide a mobile receipt in the DVB-H type because of the problem of power consumption. ▲DVB-H : Digital Video Broadcasting-Handheld About the HD broadcasting service, the report said that America and Canada used the ATSC type, Australia used the DVB-T type while Taiwan and England examined the possibilities to introduce the HD broadcasting service into their respective countries. About the broadcasting time, 1,040 hours per year were required in Australia, 14 hours per week were recommended in Canada and the broadcasting times were determined by the broadcasting stations in the USA. In the USA, the major broadcasting stations like CBS, FOX, and UPN organized the HD programs for more than 50% of their programs within prime times. In Australia, it was required to broadcast the standard definition(SD) and the high definition(HD) at the same time, by the ABA, thus resulting in the deterioration of HD quality. However, the broadcasting stations in Australia expected the improvement of the HD quality through the improvement of technology. About the single frequency network, the technical development and standardization of the ATSC type has taken place with the single frequency network being temporarily serviced in the USA and Canada. However, the regular introduction of the single frequency network would require a certain amount of time. In addition, the regions of Australia, Singapore, and Germany operated single frequency networks in the DVB-T type, Taiwan tem-

IT KOREA Journal _ 19 MIC NEWS

porarily operated the single frequency network to determine the requirement of the single frequency network would be by next year and England would not even accept a nationwide single frequency network in order to protect local broadcasting stations. The report additionally reported that the following were confirmed in visiting countries ▲competitive promotion of converting ground wave broadcasting to digital ▲improvement of receiving performance of the ATSC type and the DVB-T type based on the rapid development of broadcasting technology ▲increase in the consumption of the HD services and mobile receipt. The Korean report said that a poor reception problem, which has been a chronic problem in the analog broadcasting service, should be solved and an actual plan for universally providing of the HD broadcasting and mobile receipt service should be provided in order to cope with the changes and requirements of viewers. This research was performed by a research team formed by 17 people who worked in the Korean Ministry of Information and Communication, KBC, KBS, MBC, and SBS, as well as, some were selected from technical engineers with its co-leaders coming from the Ministry of Information and Communication and the KBC. The research team visited eighteen offices and agencies like government offices, standards associations, plus, broadcasting stations in eight countries, such as the USA, Canada, England, Germany, Australia, Singapore, Taiwan and Japan, which is the issues about the transfer type of the ground wave digital TV could be assured. Song Sang-hoon 750-1866([email protected])

Policies of the Korean Ministry of Information and

Communication, 2004 Date : 2004-02-04

he Korean Ministry of Information and T Communication planned to achieve 240 thousand billion won of IT production and 70 billion dollars of IT exports, as well as, to make 50 thousand jobs, this year. In addition, the aforementioned Ministry of Information and Communication planned to introduce early new communication services like the 2.3GHz mobile Internet and satellite and ground wave DMB and to raise the IT growth power based on the latest infra, such as the Broadband convergence Network(BcN). Chin Dae-je, the Minister of the Korean Ministry of Information and Communication reported on an operational report that included such plans to Korean President Roh Moo-hyun at the Presidential Residence of the Republic of Korea on February 4. Minister Chin reported that he would strictly practice newly growing broadband IT promotion plans to achieve 380 thousand billion won of IT production and 110 billion dollars of IT exports, as well as, to make 270 thousand jobs and one million and five hundred thousand positions, by 2007. To these ends, he would practice: ▲an introduction and activation of communication, broadcast services ▲a construction of the newest IT infra ▲raising 9 IT growth powers ▲bringing intelligent knowledge to the front ▲refor- mation of the postal services.

20 _ IT KOREA Journal Minister Chin reported that the Ministry of Information and Communication would promote common technology based tasks like the construction of infra and the introduction of Information Technology Architecture(ITA) through controlling the functions of an “electronic government”. Minister Chin, also, reported that he would support the diffusion of civil intelligence knowledge by constructing an intellectual information DB and deal with various dysfunctions of the intelligence knowledge, such as cyber-terrorism and spam mails. In addition, Minister Chin explained that he would reform the postal services by providing rapid, correct and safe services while developing a mutually helpful relationship between labor and capital. Lee Seung-won 750-2153([email protected])

Inauguration of the ‘Game Export Conference’

Date : 2004-02-12

he Korean Ministry of Information and T Communication held an inauguration ceremony for the ‘Game Export Conference’ for the foreign marketing cooperation of domestic Korean games with people from game businesses, communication companies and support offices headed by people like Jin Dae- je, Minister of the Ministry of Information and Communication and Lee, Yong-Kyoung, President of Korea Telecom. The ceremony was held in the Orchid room of the Chosun Hotel on February 12, 2004. The participating bodies of the ‘Game Export Conference’, which had more than eighty domestic game companies, numbered in their ranks were such companies as Ncsoft, Webzen, Neowiz Corporation, CCR, Actozsoft, Joyon, and the Com2us Corporation, Communication companies, such as KT, SKT, KTF, and LGT and support agencies, such as the Korea Institute of Multimedia Contents and Software(KIPA), the Korea Software Financial Cooperative, the Export-Import Bank of Korea and the Korea Export Insurance Company all agreed to concentrate on the export of domestic Korean made games. Kim Woo-sik, the manager of the business department in KT was elected as the first chairman of the ‘Game Export Conference’. The ‘Game Export Conference’ was determined to investigate and analyze information on the game market environment with a focus on areas such as the present condition of the foreign game markets and the habitual practices of foreign countries’ businesses, plus, provide the analyzed information to the game companies. In addition, the communication companies agreed to develop and invest promising games and to connect game contents to foreign marketing along with the development of the businesses of foreign communication networks. Moreover, it was determined at this conference that they all would support field marketing through export support offices, such as iPark, support foreign investment explanation meetings and participation in various exhibitions and last, but not least, support the construction of test beds within foreign countries.

IT KOREA Journal _ 21 MIC NEWS

Also, it was determined by the conference members to support localization operations of excellent domestic Korean games by such means as translation of the games, to assure export contracts of the domestic games and to support legal and tax consulting about international contracts. National policy research institutes, such as the Electronics and Telecommunications Research Institute(ETRI), agreed to give technical support, and the ‘Game Export Conference’ were determined to help in gaining the cooperation of famous foreign game companies. The Korean domestic game business has made rapid progress, especially, in the area of online games, resulting in a growth rate of more than 60% in the last five years. In addition, domestic games are exported to Japan, Taiwan, and Thailand, as well as, the domestic games occupy 80% of the Chinese game market. However, the Korean domestic game companies have been promoted in foreign marketing under inferior conditions, thus, resulting in giving way to huge foreign game companies. Also, the domestic game companies have had difficulties in dealing with international disputes. The Korean Ministry of Information and Communication expected that the inauguration of the ‘Game Export Conference’ strengthens the cooperation of the game companies, the communication companies, and the support offices which enhances the development, the investment, and the foreign marketing of the country’s domestic games. Chung Seok-jin 750-2335([email protected])

Next-Generation Mobile Communication Standardization

Conference to Be Held in Pusan Date : 2004-02-16

he Radio Research Laboratory of the Korean Ministry of Information and Communication is holding the 12th ITU-R WP8F T Conference that presents international standardization performances after the IMT-2000, at the Paradise Hotel in Pusan on February 18 to 25. About 300 people of governmental representatives and civil engineers from about 25 countries with representatives from international standard associations, domestic and foreign communication companies and manufacturers other than S. Blust, the chairman of WP8F, and Wee, Gyu-Jin, the vice-president of the Radio Research Laboratory participated in the Conference. It was planned to define the concept of the next-generation mobile communication services, and to discuss about the method of calculating the necessary amount of frequencies, as well as, plans on ways of using 2.5/2.6ß◊ frequencies. It is expected that the next-generation mobile communication services would be realized by a wideband system that freely receives and transfers moving pictures. Since the method of securing frequencies for the next-generation mobile communication services will be determined in the WRC by 2007, the WP8F will technically research the method of calculating the necessary amount of frequencies. The IMT-2000 frequencies selected to be 800/900ß÷, 1.7/1.8ß◊, 2ß◊, 2.5/2.6ß◊ in the WARC-92, the WRC-2000 and, it was pointed out, the bands other than 2.5/2.6ß◊ cannot be used worldwide because Europe, Asia, and the USA use the other bands. Accordingly, each involved country and company were interested in the use of the 2.5/2.6ß◊ band that was discussed at the Conference. The Radio Research Laboratory expects that this Conference will be a change in way of showing the IT development of Korea to the worldwide mobile communication professionals. Plus the conference will be encouraging the IMT-2000 development and mobile communication system development to advance into foreign countries. Wee Gyu-jin 710-6550([email protected])

22 _ IT KOREA Journal Supporting 130 Billion Won to Raise IT Manpower

Date : 2004-02-18

his year, 2004, 130 billion won is to be invested into the training of professionals in the fields of the IT next-generation growth T power, in this year. The Korean Ministry of Information and Communication confirmed a ‘2004 information communication manpower training program’ on February 18. The program was created in order to train IT professionals who will become creative and internationally competitive by having IT knowledge and technology that is required within the industry. Accordingly, the Korean Ministry of Information and Communication will provide 45 billion and 600 million won for improving the IT education programs in various universities and 54 billion and 400 million won for training researchers of the highest qualities. In addition, 17 billion and 900 million won will be provided to train global IT manpower and 12 billion and 100 million won will be provided to develop IT technology. Looking into the program, an SCM model, which was experimentally introduced to the IT manpower training program, it was decided it will be regularly promoted. To this end, the SCM model is to be applied to the system integration(SI), S/W developments, multimedia and games, plus, business information technologies other than embedded software and curriculums will be reorganized. More specifically, the IT system on chip(SoC) designers will be trained and students studying abroad and in IT Research Centers (ITRC) within universities in the fields of the next-generation growth power will be supported by priority. In addition, the globalization of universities will be promoted, as well as, foreign exchange programs for enhancing the international awareness of the university students will be supported. Universities will be able to employ excellent foreign IT professionals as professors and 600 domestic Korean students will be selected and supported to study and to do research abroad. The Korean Ministry of Information and Communication will perform special training in promising IT fields like free software, games, biometrics technology and the wireless Internet. In addition, the ratio of industrial professionals in an evaluation committee will be increased when evaluating the business of cooperative systems, plus, the importance of the professors in the cooperative systems will be emphasized. Choi Byung-taek 750-2324([email protected])

Supporting 54 Billion and 100 Million Won to Solve

Information Differentials Date : 2004-02-19

he government will strongly try to solve information differentials of neglected social classes like the disable and elderly T people. The Korean Ministry of Information and Communication determined to provide 54 billion and 100 million won by this year, 2004, to solve the information differentials of the information neglected classes of people in order to realize a digital welfare society. The Korean Ministry of Information and Communication announced the ‘2004 information differentials solving plan’ on February 19 and determined to provide 19 billion and 802 million won for a citizen information education program, 27 billion and 234 million won for each ministries’ information education program, 5 billion and 125 million won for an information access providing program

IT KOREA Journal _ 23 MIC NEWS

and one billion and 945 million won for an information culture diffusion program. The information differentials of the various neglected social classes and groups has been gradually solved due to various information differential solving programs which have been performed since 2001. Based on the ‘2003 research for information on the differential condition of information concerning various neglected classes that was performed by the Korea Agency for Digital Opportunity and Promotion, an information differential solving responsible agency in the Ministry of Information and Communication, it was found that the Internet utilization rate of disabled people on June, 2003 was 27.6%, which increased by 5.2% compared to last year and the Internet utilization rate of the elderly, over 50 years of age, was 14%, which increased by 4.9% as compared to last year. Even the information access rate of the information neglected classes has increasingly grown, as well as, the differentials between general citizens and the neglected classes had increased as well. Especially, the Internet utilization differential between the general citizen and the elderly, the poor and the uneducated people of the “information neglected class” was 63.6%. In order to solve the basic problems of the information neglected classes that appeared in the research, the Korean Ministry of Information and Communication will concentrate on the provision of digital opportunity like improving the quality of life and earnings through the utilization of information. The Korean Ministry of Information and Communication determined the directions of the information differential solving program which went into the citizen information education program, the officer information education program, the information access providing program and the information culture diffusion program. Yoon Yang-su 750-1223([email protected])

Investing 80 Billion and 800 Million Won Into the Digital

Contents Industry Date : 2004-02-19

he Koran Ministry of Information and Communication determined to raise the digital contents industry by investing 80 billion T and 800 million one this year, 2004, for accomplishing the national income of 20 thousand dollars. The Korean Ministry of Information and Communication announced, their ‘2004 digital contents industry raising plan’ on February 19, 2004, stating the desire to be one of the top 5 countries worldwide having strong digital contents industries by 2007 and accomplishing this by creating a 7 thousand and 500 billion won worth of domestic production, 400 million dollars of exports, and producing 12,000 new jobs(having 60,000 new positions). The important issues of the ‘2004 digital contents industry raising plan’ were ▲construction of a digital contents industrial base ▲ promotion of digital contents exports ▲promotion of digital contents circulation ▲development of core technology and the raising of needed manpower ▲constitution of an IT complex. The Korean Ministry of Information and Communication is to enhance the function of the Korea Institute of Multimedia Contents and Software, which is a digital contents industry-supporting agency to support the digital contents industry from the discovery of strategic items stage to the investment and the export stage. In addition, the Ministry is to enhance the connection between the businesses that were individually supported. Plus, the condition of producing digital contents by Korean domestic companies will be improved by inducing foreign production centers, involvement with the export items and the export regions being varied to improve the export of the digital contents. Park Seong-hee 750-2322([email protected])

24 _ IT KOREA Journal Practical Introduction of the IPv6 to the Home Network

By Next Year Date : 2004-02-23

etailed promotion schedules for generally introducing the IPv6 were settled. The Korean Ministry of Information and D Communication held the third ‘IPv6 strategy conference’ in the government building of the Ministry of Information and Communication in Gwanghwamun on February 20, for the provision and the diffusion of the IPv6, which is a necessary element for constructing the Broadband convergence Network(BcN) and home networks. Chin, Dae-Je, Minister of the Ministry of Information and Communication, people from various equipment manufacturers and communication companies and decision makers from research institutes participated in the conference. At the conference, the IPv6 introduction plans reported from each company and each agency were examined and detailed schedules for promoting various strategies were discussed. Minister Jin emphasized that the successful promotion of the IPv6 business was the important motto of the Ministry of Information and Communication in 2004 and he announced that the IPv6 would be applied from the beginning of the second half of the year, 2004. The attendants at the conference agreed to the promotion schedules of developing the IPv6 home routers and the small-sized routers, introducing a certification system for the IPv6 equipment and starting the IPv6 and the KR DNS services by the first half of this year, 2004, while constructing IPv6 sample networks(KOREAv6) by the second half of the year. In addition, in order to construct initial markets, the conference attendants agreed to the introduction of the IPv6 to various information businesses like the national broadband convergence network, the electronic government communication network, and home network business,. The attendants of this conference, also, agreed to the participation in the ‘Global IPv6 Summit in Korea’, which would be held in July in Seoul, for the public relations and promotion of international cooperation needed for the IPv6 program. The attendants determined that 2004 was the prime year of the IPv6 diffusion in Korea and all agreed to enhancing various governmental and civilian international cooperation such as the IPv6 cooperation among Korea, China and Japan. The Korean Ministry of Information and Communication made the evaluation that the “decision-makers” sympathized with the detailed roadmap of the IPv6 through the conference. Choi Gwan-bok 750-1245([email protected])

Supporting 16 Billion Won to 124 IT Curriculum

Reorganized Schools Date : 2004-02-23

schools that reorganized their curriculums to focusing on the computer and software fields and IT growth power fields 124 were provided with 16 billion won. The Korean Ministry of Information and Communication selected 29 universities, 34 colleges and 5 technical high-schools that reorganized their curriculums, thsu, reflecting the industrial consumption of needed manpower and technology, based on the result of the ‘2004 curriculum reorganization support program for IT and non-IT departments’. This year, 2004, 6 billion won is to be given in support to 39 schools in the fields of computer and software like software development, embedded system software, system integration(SI), multimedia and game software and business information technology,

IT KOREA Journal _ 25 MIC NEWS

in order to raise and manage needed IT manpower. The following amounts are to be divided among various educational institutions as follows: 150 million won per year will, in support, be given to the IT departments of the universities for up to two years, 100 million won per year will be given to support colleges for up to two years and 150 million won will be offered in support to technical high-schools thus providing them more educational equipment and software. Plus, 100 million won per year will be given in support to the non-IT departments of the universities for up to two years. The Korean Ministry of Information and Communication expected that the aforementioned program would raise creative IT manpower that have practical business ability and, also, have the problem solving ability required by companies. This is expected to reduce the unemployment of the youth by increasing the employment of new recruits into the IT industry. The Korean Ministry of Information and Communication will add a hardware sample track, which will be presented by analyzing the consumption of companies, to the “IT manpower raising SCM model” in order to perform a curriculum reorganization support program that focuses on software and hardware. In addition, the Ministry will practically support internships for the students who completed the reorganized curriculum. Shin Jang-su 750-2325([email protected])

Awarding New Software Grand Prize for February, 2004

Date : 2004-02-25

he Korean Ministry of Information & Communi- T cation has selected “ZIPITTM” of Sujiewon NetSoft in the category of general softwares and “Contents package using wire and wireless image transfer” of Motech Global Entertainment in the category of multi media softwares to award the “New Software Grand Prize” for the month of February, 2004 respectively. “ZIPITTM” is a business solution for correcting addresses, which refines, converts and recovers customer identification data including an user’s address, phone number and e-mail address quickly and cor- rectly by comparing with its server DB. With the latest DB of an user’s administrative districts and zip codes, it corrects an user’s incorrect identification data, and it can correct 9 million users’ data per hour with high speed and accuracy even with the usual PC. It is an open system designed to operate under any kind of hardware and operating systems(OS), plus, it is supplied to corpora- tions including POSCO and public sectors, as well as, to the financial sector which include local banks. “Contents package for using wire and wireless image transfer” is the soft ware, by which an user edits the image on a PC, a PC camera and monitor using its window for editing and transfers it to a mobile phone. With the server base to transfer 2,000 images, of any sort, per second, it can service all over the world with a charging and network linkage both in Korea and within overseas countries.

26 _ IT KOREA Journal Shown off in August of last year, it is used by Interpark, Naver, etc. And it has completed network interworking and localization tests for 170 countries to do service within about 85% of the global wireless internet market. Motech Global Entertainment expects sales of 5 billion won this year with this contents packages through 1,000 websites in Korea and 100 major websites abroad. The awarding ceremony was held in the medium conference hall on the 14th floor of the Korean Ministry of Information & Communication’s building in Gwangwhamun with the Ministry’s vice minister, Kim Chang-gon, in attendance, on the afternoon of 25th February, 2004.

Minister Chin Visit the Middle East as the President’s

Special Envoy Date : 2004-03-02

hin Dae-Je, the Minister of Information & Communication, will visit Egypt, Lebanon, Yemen, Tunis and Turkey from 2nd C March to 11th March to help Korean IT(Information Technology) companies advance into the Middle East, as well as, to carry out his duty as the special envoy of Korean President Rho Moo-hyun. Minister Chin will deliver the signed letters of the President concerning the Korean Government’s efforts to create an atmosphere of friendly cooperation with Arab countries and enhance Arab countries’ understanding of the Korean Government’s decision on dispatching additional Korean soldiers to Iraq. The minister will do this and contact the heads of Lebanon, Yemen and Tunis during his stay. Minister Chin will do activities in a way that will expand the overseas base for Korean IT companies while advancing into the Middle East by concluding a cooperation agreement with Egypt concerning the information and communication technology field, participation in opening the Internet Education and Training Center in Egypt, supporting Korean companies’ bidding for high speed internet(xDSL) equipment contracts for the CDMA mobile equipment and electronic government during his stay. Minister Chin will discuss the cooperation on the IT sector with Dr. Ahmed Mahmoudi Nazif, Egyptian Minister of Information & Communication and Akil Hamed Beshir, Chairman of Egyptian Telecom, in Egypt and Chin will also meet with Lebanese President Emile Lahoud, Prime Minister Rafic Bahaeddine Hariri, Foreign Minister Jean Badawi Obeid, and minister of Information & Communication Jean Louis Kordahi in Lebanon. After then, Minister Chin will visit Yemen to meet with Yemen President Ali Abdulah Salih, Foreign Minister Abu Bakr Abdullah Al-Qirbi, Communication Minister Abdul Malik Sulaiman and the Presidential Chief Secretary, Interior Minister and Economic Planning Misister in Yemen. Then, Chin will pay a visit to Tunisia to meet with President Zine El Abidine Ben Ali as well as the nation’s Foreign Minister and Transportation & Communication Minister.

General Assembly of the IETF in Seoul Marks Friendly

Relation Date : 2004-03-02

he Korean Ministry of Information & Communication will hold social events at the World Cup Football Stadium in Seoul to T introduce Korea and to cement friendly relationships between member countries on March 2 during the period of the 59th Seoul IETF General Assembly, which started from the 29th of last month.

IT KOREA Journal _ 27 MIC NEWS

About 600 internet engineering task force specialists in Korea and overseas countries will take part in IETF Social Events including the Vice minister of Information & Communication Kim Chang-gon and the Chairman of IETF to have an opportunity of experiencing Korea’s traditional culture. Vice-minister Kim will make a congratulatory opening speech on the day, entitled “Let’s make a promise to realize a more convenient and abundant world by way of the internet with the world people’s dearest wish again, just at the place of impression which has drawn attention all over the world at the 2002 Korea-Japan World Cup Football Competition.” By holding the General Assembly of the IETF in Korea this time, the Korean Ministry has foreseen that we will make a foothold for advancing into the international internet engineering standards on the next generation internet sector, thus, we will take this opportunity to show our capabilities as a strong internet country. The IETF, a private international internet standardization organization that is considered the world’s top authority, will hold the general assembly in Seoul with an attendance of about 1,500 experts untill March 4 in a hotel in Sogong-dong.

UN ITU Strategic Academic Conference Oopened in

Seoul Date : 2004-03-02

he Korean Ministry of Information & Communication will hold “IT New Initiatives Symposium & Workshop” at the T Intercontinental Hotel beside COEX from March 3 to March 5 together with ITU. World leading specialists will discuss the technology, regulation and policy related with the development of the future information technology society with the topics/activities at the symposium, “Build Up Broadband Combined Network(BcN)” and the workshop, “Direction of Development of the Mobile Information Society” being under discussion. At the symposium on BcN on March 3, 300 experts in Korea and overseas countries will address the subjects of World Market Trends, BcN Policies and Technology & Standardizations. Besides, at the workshop on the Mobile Information Society to be held between March 4 and March 5, 100 world leading mobile communication experts will discuss the prospect of broadband mobile communication integration, the core technology of mobile communication and its applications, and the policy & regulations relating to mobile communication through case studies of Korea, Japan, Norway, Morocco, etc. In particular, the case study and research presentation on Korea’s BcN and mobile communication sector by ITU, the specialized international organization on IT under the UN, will be an appraisal of Korea’s BcN construction basic scheme and an official recognition of Korea’s leading role in the field of information & communication including mobile communication. This event will be ITU’s strategically planned program to diffuse an advanced example of information and communication sector to 189 member countries, and to present the direction of development for new technology and new issue of policy. The Korean Ministry of information & Communication has foreseen that Korea’s position in broadband IT will be enhanced and local IT industry’s advancing into the global market will be even more expanded, because this event will take place in Korea, an advanced country in the IT sector, according to ITU’s suggestion. Korea ranked 4th in the world according to the Digital Access Index of Global Electrical and Communication Development Report issued by ITU in November of last year, plus, Korea was recognized to be a globally advanced country.

28 _ IT KOREA Journal Set Up Internet Plaza in Egypt

Date : 2004.3.3

he Internet Plaza supported by Korea has opened in Cairo of Egypt with this type of area being a first in the Middle East. T The Korean Ministry of Information & Communication and the Egyptian Ministry of Information Technology have opened an Internet Plaza on March 3, 2004(Egyptian time). The Korean Minister Chin Dae-Je and his Egyptian counterpart Minister Nazif, and about 150 other high-rank officials from both countries were in attendance. At the opening ceremony, Minister Chin hoped that the internet plaza will be useful for the expansion of the information digital mind in Egyptian society, and he promised to broaden manpower and technical exchanges between their two countries so that Korea’s experience of success in building up the high level of broadband infra can be taught to Egyptians. The Egyptian Internet Plaza, with Korea’s aid of $300,000 in total, has computer education and seminar rooms, and it is equipped with the latest equipment such as beam projected and electrically powered screens, as well as, 50 sets of new computers Beforehand, Minister Chin had a meeting with Minister Nazif and exchanged views with him in order for Korean IT industry to advance successfully into the Egyptian market concluding a memorandum of understanding(MOU) for both countries’ cooperation on the IT sector. At the meeting, Minister Chin mentioned that Korean companies were recognized globally concerning their excellent CDMA technology, exporting CDMA equipment to China, Japan, Russia, Australia, etc. Plus, Chin requested for the Egyptian Government’s positive support so that Korean companies may participate in Telecom, Egypt’s CDMA2000 1x business. And Minister Nazif promised to positively consider and support Korean companies with excellent technology so they could advance into the Egyptian market, because Korea’s advanced IT success model can be very helpful for Egypt, too. Minister Chin had a meeting with Akil Beshir, the Chairman of Telecom Egypt in the afternoon of the same day, asking their Egyptian support, so that Samsung Electronics may win their CDMA 2000x business. They further discussed ways of mutual cooperation between Korean companies such as KT and Telecom Egypt. Telecom Egypt’s CDMA 2000 1x project is to build up 100,000 circuit lines, worth of U$44 million. And six companies including Samsung Electronics and ZTE of China are known to be participating in the bidding for the Egyptian project. If the Korean company succeeds in being awarded this project, about 2.6 million units of new mobile handsets will be required. The chairman of Telecom Egypt called at KT In January expressing hope for learning about the success of Korea’s high speed internet. Accordingly, the prospect for Korean companies to advance into the Egyptian market is very bright. Internally, Egypt is growing rapidly securing 5 million subscribers as of August of last year. And, they have a potential demand of about 1 million lines on the high speed internet sector. The internet plaza in Egypt, which is opened at this time, is the ministry’s 4th project, following Cambodia, Rumania and Vietnam, to narrow the global information gap between various countries and Korea. MIC NEWS

IT KOREA Journal _ 29 News

ICA, surveyed small & medium IT companies’ export status and overseas business requirements.

he International Cooperation ● Export Percentage and Ex knowledge on specific items or brokers. T Agency for Korea IT (ICA) had pected Growth of Exports in Many companies are marketing directly carried out a survey of small and 2004-Prospected a Sharp Incr through their organizations in foreign medium IT and communication com- ease in Exports. countries or exporting their products panies’ export status and overseas According to an investigation on the through foreign distributors by con- business requirements for about a export against total sales in 2003 of the tracting with them. Both wireless com- month from January 15, 2004 through surveyed companies, about 55.6% of munication systems and software com- February 13, 2004 for the “2004 ICA the companies said the export ratio panies export primarily through agents, Support for IT Export.” This survey was would be below 20%. On the other and the next generation displays com- conducted targeting small and medium hand, 24% of the companies said the panies favor direct marketing. While IT companies on a higher rank of export ratio would be more than 60%. It digital media players and digital con- exports and export competitive com- shows that not a few companies have tents companies export their products panies according to 14 groups of placed a lot of emphasis on their through foreign distributors by con- promising export items. It was so suc- exports. Regarding the prospect of tracting with them, the fixed-line com- cessful that about 370 companies export in 2004, some forecast a minus munication hardware companies set up responded to the survey. About 30% to growth. However, about half of the sur- joint venture companies with foreign 48% respondent companies expressed veyed companies prospected the export companies their will to participate in the IT growth in 2004 will be doubled com- ● Main Export Markets-U.S.A., Cooperation Group, which is an ICA pared with that of 2003. Viewing from Western Europe, China export support project. ICA has decided the individual product group, more than Most of the surveyed companies are to adjust and execute the project so that half of the surveyed companies in the now exporting their products to the US, it may be in optimum compliance with fields of broadcasting equipment, Western Europe and China. The exports the specific requirements of individual storage, security systems, software, to Japan and South East Asia are also companies by utilizing information of the computer related services and the next brisk. On the other hand, the exports to desired export countries and markets, generation display products, said that, South-East Asia, the Central and South as well as, target companies in detail as exports would be increased by more Americas and the Middle East are per industry revealed by the survey. than 200%. In the case of storage, in unsatisfactory. Wireless communication ICA, in particular, will build the “Best IT particular, about 70.6% of the com- equipment and systems, fixed line com- Korea Pool” with those companies panies said the exports would be drasti- munication equipment, high speed responding to the survey and ICA will cally increased. But, it should be noted internet/network hardware and digital give them its full support by helping that a number of respondent companies contents companies are concentrating them in preference for its export project were relatively not big. Both security on the China or the US marketplace. this year, by supporting them financially system and software companies, also, Software and computer related service to issue an English version of “Korea IT prospected that exports would increase companies are focusing on Asian Companies and Product Directory,” that a lot this year, expressing their expec- markets such as China, Japan and will be distributed to overseas buyers, tation for an export increase. South East Asian countries. Broad thus, continually providing overseas IT ● Export Marketing Channel - D casting equipment, storage, digital multi- market information to them. ependi ng Mostly on Agents media players, secondary batteries, The survey results are summarized Most of the surveyed companies take security system and next generation dis- as follows: advantage of sales agents with plays companies are targeting only

30 _ IT KOREA Journal advanced countries found in such areas result, include positively seeking to meet Korea-China game investment as North America and Western Europe. with end-users, buyers and agents, or mart held in Shanghai, China ● Desired Export Market - North understanding companies’ needs America, Western Europe,Sout beforehand and doing follow-up support heast Asia continuously. Some points to improve The surveyed companies’ desired the existing foreign market development export markets in 2004 were, as men- group were mentioned in the order of tioned in order, North America, Western “providing information on buyers,” Europe, South East Asia and Japan. “specialization and subdivision of com- Being classified by industry, the companies,” “selection of dispatching From February 18 to 20, ICA held a panies’ desired export markets for country according to forecast” and Korea-China game investment mart in wireless communication equipment, “consistency of policy.” Shanghai, China. The event purported broadcasting equipment, high speed ● Export Difficulties - Lacking in to attract foreign investment for internet/network hardware, digital multi- Information on Overseas Market domestic game companies and game media players, secondary batteries and Most of the companies pointed to projects and to consolidate the foun- next generation displays are within “insufficient information of overseas dation of international exchange and Western Europe. And, those for wireless markets” as the greatest difficulty networking. Six Korean companies communication services, software, high involved with their exporting activities. including Boltsoft and 45 Chinese com- speed internet /network hardware and Other difficulties they encountered were panies including the Beijing Gehua computer related services included pointed out in order of localization diffi- Cultural Development Group partic- China and Southeast Asia. North culty, insufficient government support, ipated in this successful gathering. ICA America and Japan are the desired market domination by foreign com- signed a letter of intent (LOI) with the markets for storage, security systems panies, as well as, a manpower Beijing Gehua Cultural Development and digital contents firms. shortage exclusive for an export and an Group, the Chinese authority in charge ● The Management of Foreign inferior business scale. of digital content businesses to facilitate Market Development Group and ● Export Marketing Require the promotion of joint business enter- Foreign Markets - Ministry of ments - Investigation of Target prises between Korea and China in the Information and Communic Market per Item and Consultati IT sector. This meeting was intended to ation and Local Municipalities , on of Export Strategy encourage investment between the two Active, Primarily the US, China Companies’ top priority requirement is countries online game developers. and Japan about export marketing. They need an There were investor relationship (IR) The surveyed companies participated investigation of the target market per sessions and individual consultations. positively in the foreign market devel- item and consultation for an export The Chinese participants included opment groups managed by the Korean strategy. What they need shows no big Beijing Gehua, China Netcom, Ministry of Information & Commun difference even by industry group. Shanghai Optic Communications ication or local municipalities. By Companies’ legal service require- Development, Tencent, China’s largest country, the companies took part in the ments were listed in order of a con- messenger company, and game com- groups, preferably, which will develop sulting service on import/export con- panies such as Gamania Digital the markets of China, North America, tracts, intellectual property related ser- Entertainment, Ubisoft, and Gamigo Japan and South East Asia, with the vices, and mediation/arbitration/legal Online Entertainment. The Chinese highest participation rate. Some advan- proceeding services in a trade conflict. counterparts expressed the high tages of the “Foreign Market Variation of requirements for each interest in the Korean game industry Development Group” project, which was service item was not noticeable. It is and willingness to make investments used to achieve a high performance same by industry group. into it.

IT KOREA Journal _ 31 News

ICA will support Korean companies to exhibit their products in world famous IT fairs.

ICA will support local promising Korean small and medium IT com- ICA Supporting Fair Schedule panies, which are now experiencing dif- No. Name of Exhibition Period Host Country ficulties in advancing into the global market because of insufficient financial 1 CeBit Hannover 3.18 ~ 3.24 Germany and marketing capabilities in a way that 2 Telexpo 3.02 ~ 3.05 Brazil allows them to exhibit their material in 3 Convergence India 3.18 ~ 3.20 India world famous IT and communication 4 CTIA Wireless 3.22 ~ 3.24 U.S.A. fairs. Particularly in such international 5 NAB 4.17 ~ 4.22 U.S.A. fairs will provide good opportunities for 6 SVIAZ/Expo-Comm 5.11 ~ 5.15 Russia small and medium IT companies to pen- 7 Communic Asia 6.15 ~ 6.18 Singapore etrate into overseas markets, and it could be an exemplary system for 8 Supercomm 6.22 ~ 6.24 U.S.A. advancing into foreign markets. The 9 Networld 7.02 ~ 7.04 Japan various companies will take this oppor- 10 Expo-comm 7.21 ~ 7.23 Japan tunity to promote “Broadband IT Korea” 11 ICT Vietnam 8.28 ~ 8.31 Vietnam by exhibiting in world famous IT fairs. 12 CeBit Turkey 8.31 ~ 9.05 Turkey ICA’s supports include the cost of 13 PT/Expo-comm 10.26 ~ 10.30 U.S.A. leasing exhibition space, the cost of 14 Cartes 11.18 ~ 11.20 France installing an exhibition booth, pre-mar- 15 Comdex 11.14 ~ 11.18 U.S.A. keting, the cost of holding events and a joint meeting room. 16 CES 2005 2005.1.8 ~ 1.11 U.S.A.

32 _ IT KOREA Journal ICA Plans to Dispatch “IT Cooperation Group” Primarily to Emerging Markets.

ICA will be dispatching the “IT country and by market for emerging IT Cooperation Group” to the global IT markets such as China, South East markets this year in a way that pro- Asia, the Central & South Americas, the motes export by Korean IT industry and Middle East and Africa, not entirely helps small & medium IT companies depending on exports to major IT advance into foreign markets, which are markets such as the US. ICA will select now facing difficulties because of insuffi- local IT core companies for about five cient marketing and financial capabil- items that are appropriate for each of ities, in spite of excellent technical capa- the advanced countries’ IT industry and bilities. to dispatch them to the advanced IT The “IT Cooperation Group” will be markets. ICA will select about 10 core to the countries with big market potential seeking actual performance results by companies among “Korea’s IT First- such as those usually found in devel- developing a differentiated program by class Product Makers” to dispatch them oping countries.

ICA publishes report on “Long-term IT sector strategies for successful conclusion of FTA negotiations

On March 16, ICA published a report would benefit from all different types of In addition, the report points out that entitled “Long-term IT Sector Strategies FTA’s including a Korea-Singapore because the IT sector is a rapidly globa- for A Successful Conclusion of FTA FTA, a Korea-Japan FTA, a Korea- blizing sector and because competition Negotiations.” The report’s main thrust China FTA, a Korea-China-Japan FTA, and international specialization is pro- is that the conclusion of FTA’s is a Korea-US FTA and an ASEAN+3 nounced in the Asia Pacific region, desirable for the development of the IT FTA. Korea would suffer considerable eco- industries in Korea. The positive effects include an nomic losses if other FTA’s — such as a Considering the drastic re-arranging increase of production and employment China-Japan-Southeast Asia FTA — are of the world’s economic map fostered by in the Korean domestic IT sector. concluded without Korea’s participation. the establishment of multilateral regional communities such as EU, NAFTA, and Economic spillover effect of FTA for the IT sector AFTA and widespread implementation of bilateral FTA’s, plus, the report Categories Production increase in the IT sector Employmen argues that Korea, the fourth manufac- (unit: 1 billion KRW) (unit: 1000) turer of information communications Korea-Singapore 49 1 equipment following China and Japan, Korea-Japan 916 4 should actively promote FTA’s and it Korea-China 4,127 18 predicts that Korea would benefit from a Korea-US 4,903 21 domestic spill over effect of FTA’s. Korea-China-Japan 5,058 22 In particular, according to the positive ASEAN+3 5,593 24 analyses made in the report Korea

IT KOREA Journal _ 33 Beauty of Korea eauty of Korea photographer kang hong-kyu [email protected] Exports News NEWS

Fishing-CAM Exports $10 Mil. display device. company’s total overseas supply con- Amount of ‘Fishing Rods With Thanks to infrared and illumination tract now amounts to $35 million. Camera’ This Year functions, an underwater scene can be Since the second half of last year, seen even at night. The equipment can Telson has been promoting an export withstand water pressure up to that diversification concept for overseas found 30 meters underwater. Through a markets including China, the United wireless transceiver, fishing activities States, Central and South America, can be seen or recorded in locations up Southeast Asia, Taiwan, the Middle to 1 kilometers away from the fishing East, and Russia. site. Tel : 82-2-2140-1114 Tel: 82-53-588-1113 Last month, Fishing-CAM(www. Fishing-CAM.co.kr) signed 1 million Telson Electronics to Export Ultra- USD supply contract with ACD Telson Electronics Signs a $13 small Color Sliding Phones to International, a supplier to Walmart, the Mil. Contract for Mobile Phone China largest general merchandises store in Exports to Taiwan the United States. Fishing-Cam is con- Telson Electronics(www.telson.co.kr) tacting another distributor for its access announce that it will export its newly to the US east coast. developed color sliding phone, which is Earlier this month, as it was partic- the world’s smallest, to China. ipating in the Fish Tackle & Trade According to the contract, 10,000 Exhibition in Beijing, it was contacted by phones will be supplied and shipment China WorldTV and signed a broad- will begin in April. casting contents contract with the This mobile phone was developed by company to supply Fishing-CAM’s video Telson to aim for the world market. contents. Developed as a Telson brand product, Furthermore, Fishing-CAM was this is a world’s smallest color sliding invited by Chinese fisheries authorities phone(74mm x 39mm x 20.9mm). Two to participate in a fishing exhibition to be types are available and each type meet held in Guangzhou, Guangdong in July. Telson Electronics(www.telson.co.kr) the CDMA and the GSM standards This week, Fishing-Cam will sign a con- signed a supply contract with Taiwan to respectively. tract with a Russian company to supply supply $13.7 million amount of dual The Chinese company that signed the 6,000 fishing rods. band mobile phones. contract is a distributor of mobile Next month, its domestic Korean The dual LCD folder type mobile phones and communications equip- sales will begin. This year, the company phones that Telson will supply can ments headquartered in Shenzhen. The expects that its sales will amount to $10 produce 64 chords, have a camera company has an extensive distribution million by exports alone. installed and have wireless Internet network in Shanghai, Shenzhen and Fishing-CAM is a high-tech fishing access capability. Telson will begin specializes in GSM phones. rod. The rod’s specially manufactured exporting this item from the end of this In February, Telson Electronics thin fishline is composed of eight month, and the delivery will be com- signed $1.85 million supply contracts lines, including a power supply line pleted by the end of next month. with ARCOA and KeyPoint. and a video line. The rod is connected Last year, 2003, in August, Telson A Telson authority says, “We have with a camera that allows illumination signed a $7.5 million contract with successfully entered the GSM market and infrared photographing. Under- Taiwan’s ARCOA to supply the next by signing contracts that amount to water scenes can be seen on land generation General Packet Radio $150 million since the second half of through a camcorder or a small Service(GPRS) cellular phones. The last year. Beginning with the world’s

36 _ IT KOREA Journal Exports News NEWS

smallest sliding phones that will be Coordination, Electronics and Telecom- Suite,” a security control and online exported from April, we will continue to muncations Research Institute (ETRI) security service product, will be release high-function and specialized and the Agency for Defense Devel- released in the first half of this year. The phones which will include such types as opment. company’s strategy is to expand its watch phones, smart phones, and multi- Tel: 82-2-2057 - 6584~5 market base by entering the application media phones.” security market through an interlocking Tel: 82-2-2410-1114 of its products with a system man- SecuBrain’s Server Security agement software and fault tolerant Product Debuts in Japan system. NITZ Signs Contract With Japan’s Lee Byeong-cheol, the CEO of CSC to Export PC Security SecuBrain (left) is celebrating the Solution signing of export contract to Japan with the firm’s employees. Tel : 82-2-568-4525

MedicalStandard to Export PACS to Japan

NITZ(www.nitz.co.kr), an information security company headquartered in Daedeok Valley, signed a licensing con- SecuBrain(www.secubrain.com) tract with Japan’s CSC(headed by announced that Hizard, a server Omoki Kawanami) to export its “PC security product, is going to be exported Shield, “ which is a PC comprehensive to Japan. security solution. This export is the first fruit of the MedicalStandard(www.medical- According to this contract, CSC, an exclusive sales contract signed last year standard.com) announced that it has affiliated company of Mitsubishi Heavy in September, with Miracle Linux, a sub- signed a $400,000 contract with Japan’s Industries in charge of System sidiary of Oracle Corporation Japan. JPD(Japan Pola Digital) to export its Integration(SI), will assume the role of Lee Byeong-cheol(Bryan Lee), the “pacplus” solution, a Picture Archiving technological support and direct sales of president of SecuBrain, says, “This is and Communications System(PACS) the “PC Shield” within Japan and IIM, a the first time a Korean server security product. software distributor, will be in charge of business is delivering products to A MedicalStandard spokesperson the sales throughout Japan. Beginning Japan. In March, we will export a says, “JPD, which is on the verge of from Mitsubishi companies, the CSC server security product that will be signing contracts with 5 or 6 hospitals, and the IMM plan to expand its sales used for Japan’s Electronic Govern- will enter Japan’s Full-PACS and telear- into the Japanese government, as well ment Project. diology market with MedicalStandard as, the financial and business sectors. SecuBrain’s goal this year is to products. PC Shield is a comprehensive achieve sales of 2.5 billion won in Last year, MedicalStandard sold the security solution equipped with a host of Japan. To do so, the company will forge Mini-PACS solution to 40 hospitals, functions including: email security, a PC partnerships with 10 companies with a including Nihon University Hospital and firewall, malignant program blocking nationwide distribution network until the Full-PACS to three hospitals and assets management. In Korea, March in addition to the NEC, which is including the Takahashi Central NITZ’s customers include major organi- its existing partner. By May, SecuBrain Hospital. zations such as KT, Korea Customs will have local Korean partners. Tel : 82-2-2282-6600 Service, Office for Government Policy Furthermore, the “Hizard Security

IT KOREA Journal _ 37 Exports News NEWS

Movain-InterJungBo to Export to Verizon, the leading providers of recognition distance with up to 10 Filtering Software to the United wireline and wireless communications in meters and a tag recognition speed of States the United States. up to 1000 units per second. It can Samsung Electronics explained as overcome limits of control means and it following: “It is symbolically important is composed of reader, antenna, tag, that Verizon, the largest CDMA service and middleware. Capable of saving time provider in the United States, has and cost and improving productivity, it decided to adopt Samsung’s rotary can be applied to various fields folder cameraphone for its high-end including physical distribution, as well cameraphone lineup”. as, distribution and assets man- This product is characterized by a agement. HiTRAX will begin by the high definition camera and folder that exclusive distribution of Matrics Movain-InterJungBo(www.movain.com) can swivel 180 degrees. And, this facili- products in Korea. By the end of this signed an overseas sales contract with tates photographig regardless of angles. year, 2004, it will also release its own Digital River, a US based company. Thanks to an internal flash, photo- reader and antenna by OEM production. Thanks to this contract, from March graphic imagery capturing is possible Tae-seop, the CEO of the company, onwards, Movain-InterJungBo will be even under dark conditions. Up to 200 said, “Considering the fact that the UHF- able to launch online sales at famous images can be saved. RFID market is in its beginning stage, it software sales sites such as Amazon A Samsung authority said, “This is necessary to apply advanced and BestBuy. The product, which will be product that emphasizes technology products to various fields as soon as sold is called “Comjigi,” was developed and value, will enhance the prestige of possible, so that each industrial sector by Movain-InterJungBo and it will be Samsung’s high-end cameraphones in can enhance its competitiveness. marketed overseas under the name of the US market. Samsung plans to lead Through OEM production and export, “WebW@cher.” the US CDMA market by releasing high- we will at the same time equip ourselves Digital River, an e-commerce out- functional cameraphones.” with technological power.” sourcing company, is an agency for the Tel: 1588-3366 Matrics, which became HiTRAX’s online sales at major software sites and partner, has about 50 UHF RFID its sales record in 2003 was more than patents or patent applications under $100 million. HiTRAX Signs Exclusive Contract review and it is a RFID system supplier Comjigi is equipped with five filtering With Matrics for the Supply of the to many companies including McCarran functions based on image recognition fil- UHF RFID in March 17 International Airport, Boeing, Walmart, tering, keyword, level, database list and Coca Cola and Siemens. an user defined blocking options. It can Tel : 82-2-508-1188 also control Internet and computer access time. Tel : 82-2-3484-4027 ClickQ Opens the Road for Translation Software Export (Feb. 13)

Samsung Electronics to Export Rotary Folder Type Cameraphone to Verizon (US) HiTRAX(www.hitrax.co.kr) signed an exclusive contract and a memorandum Samsung Electronics (www.sec.co.kr) of understanding with Matrics for OEM announced that it has begun supplying production of its UHF(860-960MHz) of its rotary folder cameraphones, with band RFID products. ClickQ(www.clickq.com), a company 180 degrees swivel camera and folder, UHF RFID, is a new system with a specializing in translation software,

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signed a contract with ASG, a US service provider with more than 130 mobile phone exported to Taiwan.” software distributor, for worldwide distri- million subscribers worldwide including TEL : 82-2-2140-1114 bution of its products. the United States, the United Kingdom, ASG will distribute the “Tranew,” and Germany. VK’s products will be ClickQ’s translation software, to sold under the VK brand through overseas markets through its distrib- Unique Distribution Limited, Vodafone’s DesignClipArt Will Begin ution network. The two companies major supplier. Export of Its Application reached an agreement for a joint mar- A VK authority said, “The first Tool to Japan keting effort in China, aiming at Chinese shipment will be the VG207, a companies and US companies within Europeanized version of the VG200 China. Profit will be divided up between which was quite popular for its stability ClickQ and ASG. within the Greater China market. VG207 Tranew can translate Korea, English, actively reflects the quality and con- Chinese, Japanese languages in two sumer needs of the European market. directions. User’s inputs can be inte- In March, a Europeanized GPRS ter- DesignClipArt(www.mybuil grated into a bi-directional database for minal model(207i) will be released in the der.co.kr), a software development later use. United Kingdom, France, Germany, company, announced that it will Gang Myeong-ju, the head of ClickQ Spain and Portugal through Vodafone’s supply “My-builder” — XML-based research institute, said, “Tranew boasts network. We are also negotiating for a application development support a comprehensive database of termi- supply of 500 thousand units to be sup- tool — to Japan’s Mitsui. nologies and usages within various plied for three months afterwards.” Developed by DesignClipArt, My- industrial fields. And it supports major Tel : 82-31-779-8018 builder is an XML-based application languages including Korean. ASG has development support tool that guaranteed us an initial sales enables reporting development, as amounting to $1 million.” Telson Electronics to Export well as, screen inquiry and data ASG, a US software development World’s Smallest Sliding Phones input/output. The product has a con- and distribution company established in to Taiwan siderable market share in Korea as 1986, has a distribution network cov- well. ering 45 countries and its sales in 2003 Telson Electronics(www.telson.co.kr) has Beginning from its adoption by was $156.7 million. completed the development of world’s Miraesoftware’s ERP, My-builder Tel : 080-003-1114 smallest color sliding phone and signed was supplied as Posdata’s SI devel- contracts that amount to $4.05 million with opment tool and Daesang Taiwan’s ARCOA and KeyPoint. The Information Technology’s ERP VK to Export GSM Terminals to supply begins in April, 2004. development tool. Vodafone (VK200) This product was developed by It is also used as part of a Seoul Telson for overseas markets. The new Metropolitan Government project’s VK Corporation(www.vkcorp.co.kr) models, which are the world’s smallest report development. signed a contract with Vodafone(UK), sliding phone(74mmx39mmx20.9mm), In addition, there also was a the world’s largest mobile communica- are of two types: the CDMA model and bundle-supply to Medialand’s DMS tions company, to supply 5000 GSM ter- the GSM model. An authority of Telson solution as a report development minals by the end of this month. It also says, “Since the second half of last tool for workplace users announced that it is undergoing a year, we are supplying the Telson brand Last year, DesignClipArt began to follow-up negotiation process for a and the ODM-based CDMA/GSM explore export possibilities and this supply of 500,000 mobile phones in a mobile phones to the Taiwanese is its first achievement. three-month’s period. market. We are very successful and our Tel : 82-2-452-7030 Vodafone is a mobile communications GSM model is the best selling Korean

IT KOREA Journal _ 39 Exports News NEWS

Mirinae Entertainment Signs arrangement. The parts will be transfer experts to achieve this feat. Contract With Thailand’s Liberta assembled in China for sales. This is also the first time a transfer to Export “Khan” An authority of the company says, has occurred since the Ministry of In March 11, Mirinae Entertainment “Although the CDMA450 MHz market is Science & Technology’s first established (khan.mirinae.com), an online game a niche market, it offers good prof- a technology transfer center in a public company, signed a contract with Liberta, itability and good prospects for growth. institute.” Tel : 82-42-869-4793 Thailand’s IT business, to export its Under the Chinese government’s online game — “Kahn.” Under the con- directive, sales activities were discon- tract, Mirinae Entertainment get an tinued for a few months. With the Suprema to Supply Fingerprint earnest of $200,000 and a running resumption of the sales of new 450 MHz Recognition Solution to Three royalty of 35%. products, our efforts in other markets Companies Including Fujitsu Liberta is a manufacturer of items like will be boosted as well.” PCs, notebooks, and digital cameras. Gigatelecom enjoys the largest share This manufacturer has 200 branches in Romania’s 450 MHz market and this throughout Thailand. It is also actively Korean firm is preparing for an entry to pursuing expansion into Southeast Asia other 450 MHz markets including and India. Russia and Portugal. Jeong Jae-seong, the CEO of the There are about 20 CDMA 450 MHz company said, “We expect that we can mobile phone markets worldwide become a major player in the online including China, Romania, and Russia. Suprema(www.suprema.co.kr) market of Thailand within six months Tel : 82-2-558-6300 announced that it recently signed $1 because Liberta has sufficient capital million contracts with Fujitsu, BMF and and a distribution network to support us.” ST Microelectronics for a supply of finger- The background of the storyline of KAIST Exports 3D Thin Film print recognition modules and solution. “Kahn” concerns the Mongol Empire. It Measurement Technology to the US Through these contracts, Suprema will is a popular online game that can be supply a sliding-type fingerprint recog- played in low-specification PC’s. The Korea Advanced Institute of nition module and solution to Fujitsu and Tel : 82-2-514-6333 Science and Technology(www.kai a fingerprint recognition solution and st.ac.kr) announced that its 3D thin film module(a pressure method product that measurement technology developed by can withstand extreme conditions char- Gigatelecom to Export 450MHz Professor Kim Seung-u(49) of the acterized by intense humidity and high Mobile Phones to China Department of Mechanical Engineering temperatures) to BMF, a company spe- will be exported to ZYGO, a world- cializing in sensors. Gigatelecom(www. famous electronic measurement The fingerprint recognition module that gigatelecom.com), a equipment company. will be supplied to Fujitsu is smaller than manufacturer of mobile phones, The exported technology is equip- existing products and it can be applied to announced that it signed a 10 billion ment for the monitoring of the TFT-LCD portable equipment such as mobile KRW contract with Parson, a Chinese panel’s production process. It is used for phones. Suprema adds that the product distributor of mobile phones, on March the measurement of multi-layered trans- also solved factors that limit mobile phone 10. Gigatelecom will supply the parent thin film. quality such as processor speed. CDMA450 MHz mobile phones from Under the contract, an earnest of To ST Microelectronics, Europe’s March to September this year, 2004. $20,000 and a running royalty(2.5% of large semiconductor company, Suprema The mobile phones that will be sales) will paid to KAIST. will supply its fingerprint recognition shipped are of the “GSD 456 model with Dr. Kim Hui-tae of the KAIST Center solution and module that uses the a color LCD. Gigatelecom will export for Technology Transfer and Licensing quantity of electric charge measurement them under a semi-knock down(SKD) said, “It took nine months for technology method. Tel : 82-2-571-9305

40 _ IT KOREA Journal Exports News NEWS

Yaho to Export Mobile Content made possible thanks to its partnership Colombia, Argentina, Venezuela, etc. and Solution to Mexico with Telcel, the largest service provider Tel : 82-2-3660-5800 in Latin America. It is also expected that Pantech’s business activities in the Latin American mobile phones market Taijin Media Shipped 1.2 Bil. Won Yaho Communication(www.yaho will be greatly helped by Telcel. Worth of Electronic Indices to Japan hpia.com), a mobile content provider, Pantech will supply 40,000 units by signed a contract with Mexico’s a the end of this month. Within the first Taijin Media Co., Ltd.(www.taijin content provider, to supply a Mobile half of this year, five models will sup- media.com), a specialized maker of Karaoke service and related solution. plied and a total of 300 thousand units karaoke system has signed a supply From April, Telcel, Mexico’s largest will be exported to the Mexican market agreement for about 1.2 billion won mobile communications service by the end of this year, 2004. The two worth of electronic indices with Daiichi provider, through El Limon, will offer the models exported this month are the Kousho of Japan. service. To do so, El Limon is working “Pantech Fotorex,” with a 260,000 color Taijin Media will have shipped 5,000 with a local terminal company to revise LCD and a 310,000 pixel camera and units of electronic indices and 4,000 specifications and authoring tools. the “Pantech Rubi,” a color phone rechargers by April of this year, 2004. Because this contract specifies both a without a camera. Daiich Kousho is the No. 1 karaoke minimum guarantee and a running guar- Telcel, is a subsidiary of America system company in Japan in terms of antee, the contract will be a good Movil, the largest communications the market share. Taijin Media has example of creating a real profit through company in Latin America. It is the exported about 50 billion won worth of a content export. Yaho and El Limon will largest mobile communications service electronic indices from 2002 through extend their comprehensive partnership provider with branches in Brazil, 2003. Tel : 82-2-366-4700 for joint development and marketing promotion in the Lain American mobile market in the fields of mobile games, LG Cable Has Contracted With a US Company to contents, etc. This contract is the latest in the series Export Shipboard Cables of Yaho’s overseas successes. In November of last year, Yaho estab- LG Cable(www. Commi-ssion) and the IEEE (Institute lished a local subsidiary in Hong Kong. lgcable.co.kr) dis- of Electrical and Electronic In December, it signed a supply contract closed on February Engineers), both of which are very with Entel, a Chinese mobile content 4, 2004 that it con- strict in their quality and safety stan- provider. cluded an export dards. Tel: 82-2-3444-5782 contract with Ge- This export order will be shipped neral Dynamics of to General Dynamics successively the US, the world top maker of avi- from the coming month March, and Pantech Enters Latin American ation, space and munitions, on the it is expected to receive more than Mobile Phones Market supply of $6 million worth of ship- U$ 10 million worth of orders in the board cables to be installed in a US future. Pantech(www.pan war vessel of 40,000 tons. The company recorded a sales of tech.co.kr) announced It is the largest export quantity of more than 45 billion won in this sector on the sixth of this month that it shipboard cables on a single scale in and it plans to achieve a sales of 65 released two GSM mobile phones within Korea. LG Cable’s shipboard cables billion won, an increase of 45%, this Mexico City and that the Korean firm had been certified by the IEC year, 2004. celebrated the event. (International Electrotechnical Tel : 82-2-2189-9114 Pantech’s entering the market was

IT KOREA Journal _ 41 Exports News NEWS

KDMedia Signed a Contract to Lim Gi-jong, the president of the The company’s growth speed is fast, Export 2 Mil. DVDs to Japan company, said, “In reality, Korean too. Following an export of $30 million venture companies’ penetrating into the worth in 2002, it shipped $70 million KDMedia Co.,Ltd.(www.kdmedia.net) GSM market is as difficult as ‘a camel’s worth last year. Plus, the company has disclosed on February 3, 2004 that they walking through a needle’s eye’ due to been awarded the “Export Trophy” for executed an export contract with the larger companies’ sales distribution two consecutive years. Innostream took Japanese DVD specialist M&O Creation network and brand power,” and he con- over Innolinx, the CDMA mobile handset Company for about 2 million units of tinued, “We can obtain noticeable maker, in order for them to develop into DVD titles. The estimated contract results because we have everything in a medium company and they increased amount is 1.5 billion won. readiness for the global market since their production to 200,000 units per KDMedia, which advanced into the our establishment.” month. Japanese market in 2002, has supplied “Innostream” is a well known brand of Lim Gi-jong said, “We will reinforce on the products to 10 Japanese com- mobile phone especially in China, its a large scale the research and mar- panies. The company expected a sales main market. Acccording to the survey keting manpower this year, as well as, of 12 billion won and an increase of of e-Price, the special mobile phone launch 10 kinds of new products, at 43% compared with last year in the web site of China, at the end of last least, onto the global market.” He dis- DVD media sector. Tel : 82-2-861-7711 year, “Innostream” ranked 1st in popu- closed, “We will achieve a sales of larity for two consecutive months KW400 billion and an operating profit of excluding “Nokia” and “Motorola”. 40 billion won this year. The company is Innostream Shipped Its Own The Korean company will be also scheduled to be listed on KOSDAQ Brand of GSM Mobile Handsets. advancing into Europe, the home for in the 1st half of this year, 2004. GSM mobile phones, following the Tel : 82-31-707-3860 success in the Chinese market.

A local venture company advanced into KT Launched On-Line Game, “Cronous” in Thailand the GSM mobile handset market with its own brand attracting an unusual amount of attention from the industry. KT Corp.(www.kt.co.kr) started to The company is Innostream Inc. service the on-line game “Cronous” in (www.innostream.com). Innostream, Thailand from the middle of this established in 2000, has been exporting month, on which it signed an export GSM mobile handsets under the brand agent agreement with Lizard name of “Innostream” to China, its main Interactive. market, they also export to the US, KT held a service opening cer- Vietnam, Hong Kong and Russia. The emony on the 15th the Thai press and synergy effect of corporate company achieved a sales of 120 billion 150 concerned people, together with awareness gained through KT’s won last year and it has kept growing by Bigcell Media, the Thai service broadband project and Korean on- more than 200% every year. provider of “Cronous” in attendance. line game technology. Beginning with The GSM mobile handset market is On the day of the ceremony, 10,000 Thailand, we will progress through an arena for such major companies as users or so connected to the web site the game business targetting the Nokia and Samsung Electronic, and of “Cronous”, so it was a smooth start. global market, which of course, most of local leading or venture mobile Kim Han-suk, the head of KT’s includes such areas as Asia, North handset makers supply the products Global Business Division, said, “It is a America and Europe. with an ODM(Original Design model business, which creates a Tel : 82-31-727-2860 Manufacturing) order.

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HyVISION SYSTEM Supply Test matic test equipment for mobile camera Equipment for Mobile Camera phone modules, the main item of this Daewoo Electronics Ship Phone Modules to Amkor year. Tel : 82-31-735-1573 the Parts for Microwave Ovens to Galants of China Eolith Supplies Mobile Game to HyVISION SYSTEM Inc.(www.hy China vision.co.kr) has disclosed that they started mass production of automatic Daewoo Electronics(www.dwe.co.kr) focusing and test equipment for mobile has revealed that they will ship camera phone modules (Model : HVT- “magnetron”, core parts of microwave 300A) and they have concluded a con- ovens, to Galants of China, the tract with Amkor Korea recently on the largest microwave oven maker in the supply of this equipment. world. According to the company The equipment focuses the lenses source, the Korean company has automatically and tests the performance gotten a favorable response from of the image sensor and images as well. Eolith Co., Ltd.(www.eolith.co.kr) has Galants, since it started exporting a And, it can do all the necessary opera- concluded a contract with a Chinese small quantity from October of last tions in the assembling and testing of game company to provide the service year, plus, it has recently agreed to camera modules automatically and col- for the mobile game “Phoncoco” or supply 1.5 million pieces of magnetron lectively. “Raccoon”. “Phoncoco”, which was by June of this year. Daewoo Electron HyVISION SYSTEM first in Korea developed by Atoaz of Japan, was an plans to supply 1.5 million pieces developed the test system for the arcade game, and it was known rather more in the 2nd half of this year, 2004, CMOS image sensor and provided as “Raccoon” than “Phoncoco” in Korea. and it also plans to supply to more than 50 units to the related com- Eolith, on the 13th, has secured from microwave oven makers in countries panies. Furthermore, the firm plans to Atoaz of Japan, which has the original other than China. supply the automatic test equipment copy right, the right of servicing the As Daewoo starts exporting mag- additionally to Amkor Korea as mobile game “Phoncoco” in China for netron, it will be increasing their pro- HyVISION increases production of two years. duction from last year’s 5 million pieces mobile camera phone modules. Eolith will receive a down payment of to 7 million pieces or so this year. A concerned employee of the $30,000 with a running royalty of 40% of A concerned employee of the company said, “We have already sales from the Chinese company. company said, “Upon deciding on the received orders for the automatic test Besides “Phoncoco,” Eolith has exports, we have been putting into full equipment from buyers, not only in recently signed a contract with the same operation our production lines,” and Korea, but also in Japan and Taiwan. Chinese company on the supply of four he continued, “We plan to increase As buyers’ inquiries are rushing in, our kinds of other mobile games, with the the export quantity by enhancing the technical capabilities are well recog- titles “King of Fighter 2001,” “Metal Slug,” productivity and operation rate.” nized from the companies both in Korea “Samurai Showdown” and “Fatal Furor”. Magnetrons are core parts as they and abroad so much so that we could Jeon Ju-Young, the president of create the electromagnetic waves in not accept export orders.” Eolith, said, “Taking this opportunity, the microwave ovens, which are pro- The company is expected to record a main business of Eolith will quickly duced by seven companies in the sales of 13.2 billion won this year, 2004, change from arcade games to mobile world including three Korean com- by selling exclusive tool kits for the games. And, we will speed up the panies Samsung Electronics, LG image processing with USB2.0, high expansion of mobile games not only in Electronics and Daewoo Electronics. performance surveillance cameras and Korea but also in foreign countries.” Tel : 82-2-360-7114 industrial cameras, as well as, auto- Tel : 82-2-543-0169

IT KOREA Journal _ 43 Exports News NEWS

PIOLINK Eecuted a Sales Moon Hong-joo, the president of Pio such as CompUSA, Amazon, Goodguys Contract of L4/L7 Switches in Link said, “We will place ourselves as and Futureshop, following its business Japan the leading export company of multi- talks with those companies to supply a layer switches this year with a priority on total of $15 million worth of goods per PIOLINK, Inc.(www. aggresive marketing and quality annum. piolink.co.kr) has con- products.” At the CES show, Nexway (www.next cluded a sales contract -way.co.kr),also, formed export agree- with Ampere(www.ampee.co.jp) of ments with four world-renowned distrib- Japan, the network solution provider, to Successive Hits in MP3 Player ution companies, like the American firm market in Japan. Shipment in Early 2004 TDK, to annually furnish 1.5 million MP3 PIOLINK will supply Layer(L)4/7 players. switches, server load balancers, virus, As a result, this year 2004, Nexway as well as, packet filtering solutions all will offer 80,000 units to TDK and over Japan via Ampere’s sales and dis- 300,000 units to Lexar. tribution networks. In addition, Nexway will start to PIOLINK has built up a sales network explore the European market by suc- covering all of Asia by securing Ampere cessively furnishing five models such as as its new business partner after it their 1” hard disc type model to NEC signed a sales agreement with Sun Europe. Power of Taiwan that covered 10 Asian Digitalway Tel: 82-31-788-5376 countries last year.

“Pantech” Brand Advances Into Hyundai MultiCAV to Supply Russia Pantech Co., Ltd.(www.pantech. PCs to Japanese Company, co.kr) has launched four kinds of mobile Applied From the early part of 2004, Korea’s handsets with the brand of “Pantech” leading MP3 player suppliers such as and they are targeting Russia’s high and Hyundai MultiCAV(www.multicav. Digitalway and Nextway have shown a middle price market with them. co.kr) recently revealed that it smooth start in their exports by succes- Pantech sold 800,000 units of formed an agreement with Applied, a sively making export contracts with mobile handsets to the Russian market Japanese distribution company for various world-famous contribution and with the forecasted market size of 13 computer goods, to annually supply IT companies. million units this year, 2004, and they them with 30,000 PCs. Digitalway(www.digitalway.co.kr) will be increasing their market share Through the contract, Hyundai revealed, on January 18, 2004, that it by 10%. MultiCAV is scheduled to ship had $50 million worth of export negotia- Lee Sung-kyu, the president of 30,000 PCs (worth 22.2 billion won) tions at the CES 2004 show(January 8- Pantech said, “Having advanced into by the end of 2004. The initial 11) held in Las Vegas, U.S.A.. It the Russian mobile phone market, we shipment is slated for March. reportedly contracted with Best Buy in could also aim at the European Dealing in computer hardware the US. market, of which the entry barrier is and software, Applied is a distributor Last February, Digitalway launched rather high. running 26 discount stores their hard disc type MP3 players Exporting our own brand products to throughout Japan. Its annual sales (HD200) and their flash memory type 27 countries this year, we will cement reaches $200 million ones in the US. Digitalway is, also, in our market position as a true global Tel : (82-31)735-8080 the midst of working level negotiations major company. with big foreign distribution companies Tel : 82-2-3660-5800

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ERAE Electronics Industry for the PDP TV. PDP TVs and 3,000 LCD TVs into the Supplies PDP TV to Department David Jung, CEO of ERAE European marketplace while trying to Stores in the US Electronics, said that “Including around open up the markets in France, Spain $50 million of PDP TV supply, the and Italy.” Signing a con- company is planning to sell the total of The company is also scheduled to tract of in an 40,000 PDP TVs which amounts to $80 perform a brand marketing in the amount of $50 million in the US market.” Korean domestic digital TV market as million with the The company is also scheduled to soon as the takeover of E-Tronics is fin- biggest S depart- construct a local production and sales ished at the end of February.” ment store, in the system with strategic alliance with a US- Adopting the brands ‘Inkel’ and US, ERAE Electronics Industry Co. based company. ‘Sherwood’, which boast a high recog- (www.erae.com) is accelerating its ERAE Electronics Industry will start to nition product name among the Korean activity in the North American digital TV supply 42-inch SD PDP TVs (model domestic consumers, as the marketplace. Having a meeting with the EPT-4200AN) into the North American company’s PDP TV, LCD TV brand high-level managers from the S market in an OEM (Original Equipment names, ERAE Electronics is expected department store at the CES Exhibition Manufacturing) method starting in to get a good brand marketing effect booth in Las Vegas, the two companies February, 2004. for themselves. ironed out the difficult matters con- He also added that “until this coming Tel : 82-2-861-6804 cerning the export amounts, and prices March, the company will ship 6,000

NanumSoft Made a Big Hit in Desktop Management System Exports

Having specialized in the devel- million worth of its Korean produced that takes place in the process of opment of computer software, material over the next five years. This remote PC-management. NanumSoft just announced that the March, as agreed to in this agreement, Moreover, the NanumSoft program company recently exported to Japan the company commenced the initial allows the operator to recover com- and Brunei its desktop management shipment of its exported wares. At the puters in trouble by using server pro- system, the ‘Secu TCO’, developed by same time, NanumSoft is eagerly pur- grams at his own PC and to remove this Korean company’s own in-house suing shipments of its software illegal software programs in those technology. products into the areas of computers. From the end of last year, 2003, Southeastern Asia and Europe, as Says the firm’s president Min NanumSoft has supplied its new software well as, the firm is in the process of Gyong-sin, “PC-management pro- program to 10 PC room agents of active export negotiations with grams are widely applicable to Softbank in Japan which opened in Centerzone of Denmark and Schuratz schools, educational institutes and Nagoya, Fukuoka, Osaka and other cities. of Germany. companies’ computer rooms. We have This year, 2004, NanumSoft expects to The new software program by made a successful advancement into rake in 3 billion won via additionally sup- NanumSoft combines data restoration, the world markets thanks to our heavy plying to at least 100 agents there. disaster prevention and security func- investment and thorough preparation. In addition, last October, 2003, tions. With it, users can save consid- Hence, from this year, 2004, we NanumSoft concluded a contract erable costs in managing networks expect to experience an impressive agreement with Delensia, a software and several tens or several hundreds growth by our company.” developer in Brunei, to export $12 of PCs and improve the weak security Tel : 82-62-350-0651

IT KOREA Journal _ 45 Exports News NEWS

TOVIS to Ship $3 Million Worth develop a good reputation with and LCD monitors for industrial and of Casino Monitors to Australia Australian customers. the Korean firm is casino uses and supplies the IGT of the expected to receive more than $5 US, the biggest casino game machine million worth of additional orders next makers in the world. The Korean firm year. expects this year’s sales to top 35 billion Based in Sydney, the Australian won, up 52% from last year. counterpart to TOVIS, Bright Mac Tel: 82-33-763-2125 International is the biggest supplier of game-related products in Australia. Says company president Kim Yong- Mirae Energy Industry Exports beom, “These contracts with the ESS System to the US A specialized manufacturer of monitors Australian company are meaningful in for industrial and casino uses, TOVIS that our company successfully made Mirae Energy Industry(www.ess2. Co., Ltd. (www.tovism.com) recently inroads into one of the world’s ‘Top 3’ com) will ship an ‘ESS system(Electric announced that it has formed an game monitor markets. Until last year, Saving & Safety Control System)’ to the agreement with Bright Mac Inter- we have concentrated on the American US. With making a MOU in October, national, an Australian distributor of and European markets. 2003 of at least $10 million worth of game machines, to supply monitors for However, entering this year, 2004, we exports a year with FCU Group in the use in casinos. have substantially constructed a glob- US, Mirae Energy Industry received an Through this contract, this year, 2004, alized supply system by expanding our LC, which amounts to $250,000. TOVIS is scheduled to ship at least $3 markets into Australia, Latin America RCS, the US company, which million worth of casino monitors to and Asia. adopted the ESS system, is a major Australia, one of the world’s “Top 3” Established in 1998, TOVIS has spe- subsidiary in the FCU Group; fur- game monitor markets. If its products cialized in producing and selling CRT thermore, RCS is known for its excellent fund raising ability proven by the takeover of the AlpsResort, Gangwon province, Korea, from Haneolsoft to Start ‘Outpost’ Service in Southeat Asia Morgan Stanley. Mirae Energy Industry is expecting the arrival of the first LC to be a chance company of the Southeas Asia of to expand its US exports. Tera Japan is publishing various on- The ESS system, which was desig- line games. nated as the No.1 electrical power Do Hyun-woo, CEO of Haneolsoft new technology by the Korean said, “With an increasing interest in Ministry of Commerce, Industry and Haneolsoft Co. (www.haneolsoft. military games within the Chinese and Energy, can control loads through a com), an on-line game developer, South-East on-line game markets, we ‘soft switching system’ which can revealed that it signed a contract with could make a contract with good control electrical power below one six- Tera ICT Malaysia (CEO Tom terms with Tera ICT Malaysia”. tieths of a second. Tamura) to export its ‘Outpost’ game While Honeolsoft is starting the Accordingly, without the happening of to Malaysia and Singapore. localization of the games, which will a high frequency and a falling-off in effi- The terms of this contract is a be provided to Malaysia and ciency, 30% of power saving ability is $120,000 deposit, plus, 30% of the Singapore, an open beta is also possible and electrical leakage/shock total sales. scheduled to begin in this year. can be prevented. Tera ICT Malaysia, a subsidiary TEL : 02-546-9460 Tel : 82-2-2272-8289

46 _ IT KOREA Journal Exports News NEWS

TECHMATE Exports Set Top Box which TIM is suppling. global market by joining various interna- in the Amount of 23 Billion Won to MAXON Telecom Co. explained that tional software conferences held in Turkey “TIM will introduce a Maxon camera China, Singapore and the US and by phone in the promotion targeting mobile holding large-scale road shows. This TECHMATE Corp, a phone agencies nationwide.” year’s shipment goal is set at $4 digital communication Tel : 82-2-2008-0700 million.” Tel: 82-2-6000-3456 equipment specialist, announced that it will export set top boxes which amount to Miracom Inc. to Ship $1 Million 3D On-Line Game ‘Yulhyeol- about 23 billion won to ATMACA, a Worth of Software Programs to gangho’ Exported to China middle-power home appliances the Chinese and American company in Turkey. Semiconductor Chip Makers MGAME Corp. (CEO Shon Seung- The company’s exported items are chul), the ‘Yulhyeolgangho’ service the ‘YE-2000 CI Plus’ and ‘YE-2000 An IT solution provider (publisher), signed a contract Plus’, and they will be supplied until provider, Miracom with Seventeen.com (www.17game. 28th of next month. Last year, 2003, Inc. revealed that it recently formed an com), a Chinese game provider, to TECHMATE had shipped set top boxes agreement with several semiconductor export ‘Yulhyeolgangho.’ of the total of 39.6billion won to Turkey, chip companies in China and the US to According to the terms of the export the Middle East and Europe. export $1 million worth of software pro- contract, the initial price of the license is Song Kyung-sik, CEO of Techmate grams. at $1.2 million and after the service is said “Over 20 million new users were Miracom Inc. has also made a con- started, the running guarantee is 27% of created in Turkey when the analog tract with the Chinese corporation sales amounts. As the terms of the con- broadcasting system was changed to a (CPS) of ChipPac, a subsidiary of tract are of the best level in the game digital broadcasting system in Citicorp and a specialist in semicon- business, the company will first receive December of last year, and we com- ductor packaging and testing, to supply investment funds before the regular posed a high-valued product lineup to $600,000 worth of integrated production service is open. strengthen the market strategies.” management solution. Miracom, as well ‘Yulhyeolgangho’ developed by KRG Tel : 82-31-706-8844 as, received an order for an equipment soft, which was merged with E net in automatizing project worth $400,000 June of 2003, is a game based on a from HAS Semiconductor which is popular comic book story. After the MAXON Telecom to Export based in Oregon, U.S.A. and the close beta service started for three Mobile Phone in Italy Korean company plans to furnish its months, the subscribers of this game XML-based factory automation solution have been over 500,000, thus attracting MAXON Telecom Co. (www.maxon ‘FA Mate’ to the US firm. gamers’ interest. .co.kr) announced that it made a contract Under the agreement with CPS, Park Kyu-hyun, CEO of E net, to supply a GSM camera phone(model Miracom Inc. is scheduled to replace revealed that “because the ‘Yulhyeol- MX-7990) in an amount of about 4.7 CPS’s existing production man- gangho’ game is based on an Oriental million euros with the number one agement solution by Camster of the martial art, the opening into the Chinese telecommunication carrier in Italy with its US with its own solution ‘MES Plus. market brighten the possibility of shipping of 28,000 units in the first quarter. Moreover, the Korean company entering into the markets of Taiwan, Embedding a multimedia message expects an additional agreement to be Japan and Thailand and the regular service (MMS), a mobile Internet reached in March whose worth would service on this game was started in service (WAP) and a telecommunication be $1 million. Korea and China simultaneously.’’ carrier service(SAT), the phone can Says Baek Won-in, president of More information on ‘Yulhyeolgangho’ perform data services, image trans- Miracom Inc., “Plans are afoot to make game can be gotten from the homepage mission and mobile banking services, full-fledged efforts to advance into the (www.yulgang.com).

IT KOREA Journal _ 47 Exports News NEWS

KORNIC Systems Corporation which amounts to $3.5 million in the $7 million worth of agreement con- Exports LCD ODF System to February and an order in March that will cluded with the same counterpart on Taiwan come to 3,200 PDP and LCD TVs November 16, last year. (about $7 million). Under the agreement, this year, 2004, KORNIC Systems Corporation Considering a growth trend in the Oullim should make an initial shipment (www.kornic.co.kr), a semi-conductor European market, the company is worth $5 million; and with more than 60% provider, announced that it received an expecting that the estimated sales of the firm’s products being sold in order to supply a ‘LCD inline ODF amount of $35 million in exports can be Japan, the contracted term is automati- system’ at an amount of $6.4 million achieved. cally extended, thus letting Oullim supply (7.64 billion won) from Toppol Opto ERAE Electronics Industry, recently an additional $7 million worth. Electronics Corporation in Taiwan. spotlighted due to its alleged takeover of Unlike the last contract, when the An ODF (One Drop Filling) processing E-Tronics and its contract with the US- products to be shipped were confined to is to inject liquid crystal between TFT based Sears, is expected to keep its the small to medium-sized virtual private glass and C/F glass, and has its superi- sales growth by supplying digital TVs to network (VPN) equipment SECURE- orities onto the existing differential overseas big logistics companies and WORKS Easywall, this year’s pressure processing in that its produc- upon winning from LG Electronics an agreement was made for various tivity and cost is reduced. Accordingly, order on CDMA terminals. security products, including a large VPN many LCD manufacturers have adopted Tel : 82-2-861-6804 equipment SECUREWORKS V3.0, inte- the ODF processing. grated security management solution One source at the company said, and a VPV Client. “Since 2000, KORNIC has developed Oullim Information Technology Says Nozawa Shinko, the managing LDC equipment with domestic manufac- Information to Export $12 Mil. director of Secom Choshinetsu, turers and the company won the order Worth of Security Solution to “Recently, the importance of internet by defeating Japanese manufacturers.” Japan security is emerging as a hot issue. So, The system delivery is completed until we decided to form the additional con- the coming June 11. Tel : 82-31-379-2700 tract to meet the increasing demand for security solution. By being equipped with various security products ranging from ERAE Electronics Industry small and medium-sized equipment for Increases PDP LCD TV Shipment branch offices to large equipment to Carrefour in Europe designed for integrated security management solutions, we can enjoy the ERAE Electronics Industry Co. effect of our prior occupation in the (www.erae.com) announced that the Picture: Lee Byung-hyeon, director of Oullim Japanese firewall and :VPN market.” orders from Carrefour, the biggest Technology Information, and Nozawa Shinko, Lee Byung-hyeon, director of Oullim, managing director of Secom Choshinetsu, logistics company in Europe has rapidly predicts, “Besides firewall and VPN signed export agreements for Oullim’s been increasing. security products. products, we are seeking to export Since October, 2003, ERAE has sup- recently released worm-preventing solu- plied the PDP and the LCD TV to On February 14, Oullim Information tions, whose result is expected to be Carrefour, and the Korean company has Technology Information Inc. concluded visible soon.” also added its TV receiving tuner an agreement with the Japanese security Oullim’s Japanese counterpart Secom embedded products which appeals to company Secom Chshinetsu to export Choshinetsu was founded in 1967 and it customers in its quality and price. ERAE $12 million worth of security solutions. has grown into a promising specialized Electronics Industry has already taken Through this contract, Oullim gained security firm with an annual sales reaching in an order of 1,700 PDP and LCD TVs $5 million worth of orders in addition to 20 billion yen. Tel: 82-2-2142-0596

48 _ IT KOREA Journal Exports News NEWS

Infravalley Exports Ring-Back nience store and a pharmacy in the fairs related to the video and security Tone Solution to the Philippines Tokyo area through a Japanese field. importer’s agency. The ‘CUMI’ not only hs security moni- Infravalley Inc. (www.infravalley.com), The price of the product is 190,000 toring functions such as a remote a mobile solution specialist, announced yen(about 1.9 million won). With this control, monitoring abilities and that it supplied a ring-back tone service export as its momentum, Seculix will recording through the Internet, but, also, solution(IP Server) around the amount expand the amount of its items into the a remote video meeting function by real- of 200,000 subscribers to Smart, the top Japanese market and actively open the izing the existing DVR hardware system mobile telecommunication operator in Southeast Asian and Chinese markets as a software one. Philippines. The company will provide by participating in various international Tel : 82-53-620-2044 additional equipment for 300,000 subscribers until the end of this year, 2004. Infravalley is taking charge of this equipment supply with Witcom, wired/ Samsung SDI Delivers PDP to Sony wireless ASP managing operator, and Cherrypics in Hong Kong. A source at Infravalley mentioned that Samsung SDI Co.(www.sam- delivered the PDP modules to JVC, “Setting this year as the aggressive sungsdi.co.kr) will deliver its PDP Fujitsu General and Toshiva. export year, the company has executed modules to the world top home appli- He, also, hinted at the expansion of business and marketing activities in ances maker, Sony, commencing this overseas sales agents, saying “The Southeast Asia, Europe and the April. company will discuss the product American continents” adding that “The Bae Chul-hwan, vice-president of supply with the world famous TV set whole e solution supply business on Samsung SDI, presenting the world’s companies including Philips at CES, system infra such as billing and intel- first 80-inch PDP module at the Shilla the home appliances exhibition, which ligent network has moved forward with Hotel, said, “Recently, Samsung has will be held in Las Vegas.” the cooperation of the system and supplied PDP module samples to Samsung is going forward with mobile telecom companies” Sony and the approval processing negotiations for supplying modules Infravalley had shipped the ring-back has gone on, and about 10,000 sets a with HP, which declared the firm’s tone solution to S Telecom in Vietnam month will be shipped to Japan.” advance into the PDP TV business. and MobileOne in Singapore last year. Samsung SDI will first supply 42- With the construction of the second Tel : 82-31-907-1044 inch SD PDP modules, and then factory for producing PDPs in 2003, export the whole products it has pro- the PDP production has increased duced. Sony wanted to import more and the PDP module price has also Seculix Exports DVR to Japan products than exported, but Samsung risen. Accordingly, the sales amount SDI coordinated the numbers of in PDP TV is expected to reach Seculix (www.seculix.com), a video exported items, considering the 1400billion won, which is about 3 solution company, introduced a low- balance with other buyers. times the amount of 560 billion won in priced digital video recorder(DVR), the The vice-president also explained 2003. ‘CUMI,’ into the Japanese market. The that, “Sony, which does not have the Samsung SDI is scheduled to deal company also announced that it has needed LCD and PDP production with the tremendous demands by exported its products amounting to 10 facilities, asked the products shipped operating a third line that can produce million yen (about 106 million won), to AI be a total of 20,000 units a month, 12 million PDPs a month at the end of Survey, a Japanese logistics company. but due to the shortage of products, this year and a fourth line in the The whole ‘CUMIs’ shipped to Japan Samsung decided to ship 10,000 second half in 2004. this time are supposed to be sold in units a month.” Samsung has already Tel : 82-2-727-3100 small stores such as a shop, a conve-

IT KOREA Journal _ 49 Exports News NEWS

Hellonet to Export Mobile Game include Japan, Southeast Asia, Europe company in Malaysia of the Tera (My Angel) to China and the American continent with various Corporation in Japan. mobile games such as the ‘Virtual After completing the localization of Hellonet (www.hellonet.co.kr), a Soccer Manager’ and the ‘Dark Horse ‘Survival Project’, HanbitSoft is mobile game provider, revealed that it Grand Prix’. scheduled to start a closed beta service will export its mobile games to China. Tel : 82-51-610-0448~7 in Malaysia and Singapore commencing Making contracts with a Beijing-based in February, 2004. company, Cosmos Digital and a Kim Young-man said, “The company Guangzhou-based company, the HanbitSoft Exports ‘Survival will chalk up over the 5 billion won of Keumbung Group, Hellonet announced Project’ to Malaysia and sales amount with only the ‘Survival that it will provide a mobile singer game Singapore Project’ by aggressively focusing on entitled ‘My Angel’ and an action game market strategies that target children called ‘Snowpang’ starting from the HanbitSoft Inc. (www.hanbitsoft.co.kr) and students in both countries.” second half of this year. revealed that it signed a contract with The ‘Survival Project’, which Lee Hwan-jung, CEO of Hellonet said, Tera ICT (CEO Tamura Ichro) and HanbitSoft has published and IO “the company is expecting over a 500 shipped its on-line game ‘Survival Entertainment has developed, has million won sales amount while the Project’ to Malaysia and Singapore. The earned about 33billion won in both games maintain their popularity within deposit for this contract is $150,000 with domestic as well as overseas markets, the next two years.” a typical running guarantee. plus, it has been on pay service in Hellonet is scheduled to expand its Tera ICT, running a game portal site Korea, China, Taiwan and Hong Kong. foreign markets from just China to (www.e-games.com.my), is a subsidiary Tel : 82-2-3284-3119

InkTec Enters Into Printer Supplies Market in the US

InkTec Co. (www.inktec.co.kr), a products due to their high quality and InkTec will concentrate on the North print technology specialist, revealed reasonable price. American market setting the entrance that it will deliver its inkjet printer sup- The first amount of refill kits and into Wal-Mart as a final goal. plies to the US-based Longs Drug compatible cartridges, which InkTec Plus, InkTec is negotiating to supply Store. will deliver to the Longs Drug Store its products to another 3~4 big office Longs Drug Store, which has about comes close to $75,000. machines and supplies retailers in the 450 chain stores open 24 hours a day, One source at InkTec said that. US. first dealt mainly with drugs, but “Although 2~3 models will now be dis- Accounting for 38% of the whole recently varied its sales items. played in the 450 stores, additional inkjet printer market worldwide, the Supplying its own ink cartridges to orders will be created soon.” North America market is estimated to 120 countries, InkTec started to ship InkTec, establishing a US-based consume about 50 million inkjet cartridges to the big chain stores in the corporation in May, 2002, had failed to printers by RiRa Research. US where HP, the printer specialist, sign a contract due to the delay of Tel : 82-31-493-7388 has been the dominant power. dealings with Fry’s Electronics, which After comparing other products, is a mass retailer. Longs Drug Store selected InkTec With this Longs Drug Store contract,

50 _ IT KOREA Journal SPECIAL 1.Online Game

1.1. TrendsTrends inin domesticdomestic onlineonline gamegame marketmarket 2.2. Interview/KimInterview/Kim Jeong-ryul,Jeong-ryul, ChairmanChairman ofof GravityGravity 3.3. IntroductionIntroduction ofof MajorMajor KoreanKorean OnlineOnline GameGame CompaniesCompanies 4.4. Thailand,Thailand, AnotherAnother MarketMarket inin AsiaAsia 5.5. Interview/KimInterview/Kim Woo-suk,Woo-suk, ChairmanChairman ofof thethe KoreanKorean GameGame ExportExport AssociationAssociation 2.Mobile Game

1. Market Trends of Local Mobile Games 2. The Leading Local Mobile Game Companies 3. Interview/POCKETSPACE’s president Kim Do-sik SPECIAL � 1. Trends in domestic online game market

Korean Online Games Are the World’s Best

From Southeast Asia to the Americas and Europe ... Conquering the world

Since the 1998 release of NCsoft’s “Lineage,” the world’s first graphic Internet game, Korea’s online game market has grown rapidly and the new full 3D era online games are mushrooming within the game world. Based on a world-class Internet infrastructure, the Korean online game market is growing more than 30% each year and, without losing momentum, Korean online game companies are taking advantage of business opportunities abroad. They are literally embarked on a conquest of the international game world. Reported by Shim Woo-sung ([email protected])

ith more than a 30% annual growth, a 1 trillion won 2003. The sales goal of these companies this year is 947.7 billion Wmarket expected this year won, about a 50% increase from last year. According to the “Korea Game White Paper 2003” published The most outstanding leap forward was made by game portal by Korea Game Development & Promotion Institute, the size of companies such as NHN, Plenus, and Neowiz with their growth the Korean online game market last year was 587.9 billion won rates in 2003 being respectively 128%, 159%, and 317%. This and this meant a 30% growth from last year’s 452.2 billion won. success can be explained by their diversification of sales The market growth has somewhat slowed down considering that channels including the introduction of various methods to the annual growth rate was 69% (268.2 billion won). This, expand paid subscriptions and a full scale launch of publishing however, happened because the market has matured. As for 2004 businesses. and 2005, the expected growth rate is still an impressive 25%. These Korean firms are making inroads into the East Asian The market will be as big as 734.9 billion won to 918.6 billion market, it was, also, important that China is included in this won in 2005. However, this forecast is based on market statistical market. Last year, Gravity launched businesses within 17 coun- data available in mid-2003 that was in turn based on the end-2002 tries and attained an amazing sales increase record of 528%. market condition. The compilation of 2003 data will be made in Webzen, also, successfully entered the Chinese market (paid sub- the second quarter of this year. An export drive was not a dom- scriptions became a norm there) and its sales increased by nearly inant trend in 2002 and 2003 and the Korean domestic pie grew 100%. Similarly, Actozsoft settled a royalty conflict with a much bigger in 2003. Considering these factors, our current Chinese service provider and its sales increased by 180% last forecast may be too conservative. year. Recently, a Korean newspaper conducted a survey on the size Therefore, because the sales of top ten companies alone sur- of the domestic online market in 2002 and 2003. According to the passed 900 billion won, the Korean online market as a whole, survey results, the top ten Korean online game companies grew with hundreds of online game companies, is likely to become a 1 more than 50% and achieved sales totaling 632.9 billion won in trillion won market.

52 _ IT KOREA Journal Wireless/wireline interworking is a dominant on composition skills. Gravity’s trend; the popularity of cartoon online games “Ragnarok” is probably the most repre- increases sentative of the successful cartoon online game. There are about 30 Recently, the wireless and wireline networks are merging thousand simultaneous users. Thanks rapidly in Korea and, to adapt to the changing environment, to their cute characters and soft mood online game companies are actively developing new game ser- they convey, cartoon-like games are vices in tune with wireless/wireline interworking trends. Games popular among teens and people in are thus offered for both PC’s and mobile phones. Essentially, � Gravity’s “Ragnarok” their twenties and authorities in this there is a community of interests between online game companies business thinks that the games will enjoy their heydays for a that are attracted by the rapidly growing mobile game market and while, along with fantasy and chivalry games. the mobile game companies that cannot ignore the development of the online game market. Furthermore, because of the intro- Online game’s export drive marches on duction of the Mobile Number Portability (MNP) this year, new high-end mobile phones have rapidly replaced low-end phones Such Korean online games were thoroughly tested in the and this in turn contributes to the evolution of new interlocking domestic market and their competitiveness was proven. Boosted trends. Therefore, major online game companies such as Webzen, by their domestic success, the online game companies are aggres- NAKO Interactive, Gravity, and NCsoft are now offering mobile sively pursuing business opportunities in East Asia — China, versions of their existing online games. Japan, Taiwan, Hong Kong, Singapore and Malaysia. As a result, NCsoft, which has an inhouse development team, is offering a “Ragnarok” in Japan, “Mu” and “Legend of Mir” in China and mobile version of “Lineage,” its main game title. Lessons and “Lineage” in Taiwan became part of‘ Hallyu (Korea Fever)’. ideas they get from their mobile experience can be applied to the Especially, within the Chinese market, Korean online games online version. occupy more than half of the games ranked on the top 10 list. It Webzen is also offering two mobile games that are interlocked is not an exaggeration to say that the Korean online games are on with “Mu.” NAKO Interactive, famous for its “Laghaim,” as well the verge of conquering the Asian online game market. as developing or has already developed about 10 games that The secret of such a outward drive made by online game com- copes with the wireless/wireline interworking trends. The expe- panies, lies in the world-class very high speed Internet envi- rience points gained in the mobile game field can be transferred ronment within Korea, which was created by the cooperation to the online version and the ranking can be confirmed on the between a government that established the physical and human web. Commenting on the new trend, an authority of a domestic infrastructure necessary for achieving the goal transforming online game company said,“ Because most mobile phones are Korea into an IT power and the business sector.. now high-end, games that offer both wireless and wireline ver- According to “Korea’s Export in the Game Industry in 2003: sions will become dominant in the market. ＂ Trends and Forecast,” a report published by a Korea Game Another new trend is the popularity of cartoon-like online Development & Promotion Institute, the size of online game games. Before, the online games were mostly of two types: fantasy exports grew from 100 billion won in 2002 to 188.7 billion won games represented by Lineage and chivalry games represented by in 2003. Most analysts think that the overseas online game Yulhyulgangho. The new category is a cartoon online game and a business is on the right track considering their export successes. tripartite division of the online game market is emerging. This year, Korean domestic online game companies will pursue SunnyYNK’s “Seal Online” is a game that takes advantage of a more proactive operational strategies for growth. Therefore, the full 3D cartoon rendering technique. During its “open beta future seems to be bright in this sector of Korean economy. service” event, there were about 60 thousand simultaneous users Major game companies that are engaged in an overseas and 15 days after the introduction of charging, the company had directed business such as Actozsoft, NCsoft, Gravity, Webzen, already 37 thousand paid subscribers and sales of more than 1 Mgame, and CCR, will expand and diversity their export billion KRW. Seal Online was thus threatening the status of footholds from China and Southeast Asia to the United States and Lineage’s Mu Europe. New export items will be promoted as well. In addition Similar things can be said about Nexon’s “Mabinogi.” The to the online role playing games they have been concentrating on, game has introduced fresh ideas including minstrels songs based they will release board games and shooting games to the overseas

IT KOREA Journal _ 53 SPECIAL � 1. Trends in domestic online game market

markets, thereby becoming leaders in Foreign human and capital resources are intro- the world online game marketplace. duced to the domestic online game business Actozsoft had achieved export sales of 11.5 billion won in 2002 by With the vitalization of the Korean exporting “Legend of Mir II” to game companies’ overseas activities, China. Last year, 40 billion won or there is an explosive increase of for- 70% of 60 billion won expected eigners working in the overseas sales was achieved by exports alone. branches and subsidiaries of Korean Following the success of the Legend companies. In December 2002, NCsoft � Webzen’s “Mu.” of Mir, Actozsoft plans to launch boasted of many famous foreign devel- “A3,” an online game for adults and to enter the European and opers including its new R&D vice- US markets. Actozsoft’s export is expected to be even more president recruited from Blizzard � NCsoft’s “Lineage” successful than last year’s. Although Actozsoft was dethroned Entertainment, a famous game developer. In addition, as from its number one exporter status in 2002, it still outranks NCsoft is actively promoting its exports into China, Japan, NCsoft in terms of total sales. This company estimates that the Taiwan and the United States, the size of its overseas sub- “Lineage” service in Taiwan will gather about 28 billion won sidiaries and joint venture companies are increasing and are royalty income. This year, “Lineage II” service overseas will staffed by a larger number of foreigners. begin full-scale and new game services will be launched in many In the case of NHN, NHN Japan, established in 2000, now countries including the United States. Actozsoft’s goal is to has more than 100 employees of which about 80% are maintain its status as a leader of the domestic online game market. Japanese. Similarly, Nexon Japan established in 1999, has only According to a preliminary estimate, Gravity, which is 23 Japanese among its 30 employees. Plenus, which is running offering “Ragnarok” in 17 countries since 2002, achieved a Netmarble, a game portal site, is employing many foreigners as sales record of 37.3 billion won in 2003, more than a 500% it is hastening its overseas market expansion into China, Japan, increase from 2002. Income from its exports is estimated to be etc. Commenting on this phenomenon, an authority of Korean about 20.7 billion won. This year, its service areas will be game companied said, “As the prestige of the Korean game expanded from just China, Japan, and Taiwan to include the companies is increasing, many competent foreign developers United States and Europe. It will also launch a character- want to work in Korean companies.” licensing business, thus maintaining its status as a major In addition to foreign human resources, foreign capital exporter of online games. resources are being introduced to the Korean online game Webzen, which recently has been a much about firm thanks market. Recently, a Korea-China game mart, organized by the to the success of “Mu,” the first Korean 3D online game, is esti- Chinese government and the International Cooperation Agency mated to have achieved a sales record of 57.8 billion won, of for Korea IT (ICA), in connection with the Ministry of which about 9.3 billion won was earned from abroad. Information & Communication, was held in Shanghai and the Mgame, whose 2003 sales estimate is 18.3 billion won, Chinese participants from 30 IT-related companies have gathered 4.5 billion won from its royalty income. This year’s revealed their intent to invest on average more than 1 billion goal is 6 billion won, as its overseas market base will be won into Korean game companies. expanded and diversified from just Taiwan and China to This means that the Chinese companies are interested in include Japan, Southeast Asia and the United States. It is espe- investing at least 30 billion won. They were interested in not cially targeting the US market, where it has sold the license for only online game companies, but also, in communications and their “Knight Online.” CCR is no less ambitious. This year, it publication, which are not directly related to the game will begin the commercial service of its “FR Online” (the business. company invested 8 billion won for this game) and the sales As the Korean online game business is consolidating its goal is 26 billion won, of which more than 8 billion won will be world’s most powerful status, late comers into the business are from overseas markets. Other major game companies, such as eager to work with Korean companies who have advanced tech- Nexon, NHN and Plenus are also beginning their overseas nology and experience. In sum, along with semiconductor expansion this year and overall, the future of the Korean online products and mobile phones, online game products and services game export is bright. are emerging as major Korean export items.

54 _ IT KOREA Journal List of World-wide Exported Korea Online Games ※ source : PICCA

Country Company name Title Date Gravity LagnarokOct. 2002, Lineage July. 2000 Ncsoft Lineage2 Nov. 2003 MIR2 Feb. 2003 Actozsoft A3 July. 2003 1000 Year July. 2002 Dragon Raja Mar. 2001 eSoftNet Taiwan N-Age Oct. 2002 Webzen Mu Nov. 2002 Asgard Nov. 2002 Nexon Tactical Comanders Feb. 2002 CCR Fortess Blue Sep. 2001 Survival Project Oct. 2003 Hanbit Soft With your Destiny Sep. 2003 SOFTMAX Tales Weaver Sep. 2003 NAKO Interactive Laghaim Aug. 2002 Gravity LagnarokMay. 2003 Lineage May. 2003 Ncsoft Lineage2 Mar. 2004 MIR2 May. 2001 Actozsoft A3 Mar. 2004 Dragon Raja July. 2001 ESoftNet China N-Age June.2003 Webzen Mu Feb. 2003 Nexon Tactical Comanders Jan. 2003 CCR Fortess2 Blue Mar. 2003 Hanbit Soft Survival Project Oct. 2003 With your Destiny May. 2003 Priston Priston Tale Aug. 2002 NAKO Interactive Laghaim Aug. 2002 Gravity Lagnarok June.2003 Lineage Nov. 2001 Ncsoft USA Lineage2 Mar. 2004 Tactical Comanders Feb. 2002 Nexon Nexus TK Aug. 1998 NAKO Interactive Laghaim Nov. 2003 Gravity LagnarokMar. 2002 Webzen Mu June. 2003 CCR Fortess2 Blue Aug. 2003 Thailand Actozsoft A3 Mar. 2004 Priston Priston Tale Nov. 2003 Dragon Raja June. 2003 EsoftNet N-Age Oct. 2003 NAKO Interactive Laghaim Oct. 2003 Italy Actozsoft MIR2 Sep. 2001 Europe NAKO Interactive Laghaim(15 Country) Nov. 2002 Gravity LagnarokJuly. 2003 Indonesia Nexon Nexia Mar. 2001 NAKO Interactive Laghaim Feb. 2003 Gravity LagnarokDec. 2002 Lineage June. 2002 Ncsoft Lineage2 Oct. 2003 Webzen Mu Nov. 2002 Kaje Dec. 1999 Qplayer July. 2000 Nexon Japan Legend of Darkness Aug. 2001 Tactical Comanders May. 2001 Asgard May. 2002 CCR Fortess2 Blue Dec. 2002 Hanbit Soft Survival Project July. 2003 Actozsoft A3 Mar. 2004 Grigon Entetainment Seal online Sep. 2003 EsoftNet N-Age Dec. 2003 NAKO Interactive Laghaim Feb. 2002 Gravity LagnarokAug. 2003 Malaysia Nexon Legend of Darkness July. 2002 EsoftNet Dragon Raja July. 2003 NAKO Interactive Laghaim Mar. 2004 Gravity LagnarokSep. 2003 Philippines NAKO Interactive Laghaim Mar. 2004

IT KOREA Journal _ 55 SPECIAL � 2. Interview Kim Jeong-ryul, Chairman ofGravity

R agnarok ‐ the most internationalized game ‐ exported to 17 countries

With 30 more countries added this year and its sales expected to reach the $100 billion mark

▶IT KOREA Journal: Gravity has sold the online game reasons? “Ragnarok” to more than 17countries. Can you tell us the secret know-how of your success? We were there first and that made the difference. Considering the characteristics of the online game market, I have been in this game business for more than 25 prior occupation isvery important. In addition, most yearsand I have become familiar with variousaspectsof online gamesare about brutal and immoral siegewarfare, licensing. Such experience has helped me a lot. And, to be whereasRagnarok isa humane community game. able to cover the whole world simultaneously, I organized Overseas users love it without reservation. an overseassupportteam from the beginning of thisenter- prise. Therefore, we were ahead of others. ▶IT KOREA Journal: Recently, some server programs have been leaked to Taiwan and China, where ▶IT KOREA Journal: “Ragnarok” is very popular, illegal game servers are in operation. What do you not only in Korea, but also overseas. Any particular think of illegal servers?

56 _ IT KOREA Journal It istrue that the number of simultaneous IT KOREA Journal: What should the users decreases when an illegal server oper- government do for companies like yours ation isnot allowed. Therefore, somecom- that explore game business opportu- panieswillingly tolerate illegal servers nities overseas? because that considerably helps to attract I would like to cite capital and mar- users. However, the effect is just tem- keting. First of all, because the game porary. We, though, were more long-term engine is expensive, most underfunded minded and decided not to allow such a sit- companiesdevelop enginesby themselves. uation to exist. Now, there aren’t any Unfortunately, the quality of their engines illegal servers for Ragnarok. At first, when isnot very high and thisharmstheir com- illegal servers in China were closed down, petitiveness, as might be expected. simultaneous access suddenly dropped by Government support will greatly help such 50%. Yet, it didn’t take long for the number of users to businesses. Furthermore, the government should conduct being back to normal. My recommendation for other com- market surveys and organize overseas exhibitions. Such paniesisthat they shouldapproach the problem with a support should be unevenly distributed to all companies. long-term perspective. They should not be tempted by immediate gains. ▶IT KOREA Journal: What is the future shape of Gravity that you would like to realize? ▶IT KOREA Journal: Recently, Ragnarok festivals were successfully held in five cities in Thailand. Are I want it to be a global entertainment company. Now, in you planning for some more in other countries? addition to games, we have invested 10 billion KRW to produce a Ragnarok animation in Japan. There will be a The first Ragnarok festival was held in Japan. We got worldwide release this year including Korea and Japan. very positive inputs and we decided to have similar ones We are also implementing a character business in Taiwan. throughout Southeast Asian countries including Thailand About 20 mobile gamesincluding “Ragnarok Another and the Philippines. In July of this year, there will be a Story” were already released. In the future, we will partic- Ragnarok festival Korea. Gamers from the whole world ipate in movie production. Through such efforts, Gravity — the Americas, Europe, etc. — will be invited. This will be recognized by the world asa company special- event will become an international festival and Ragnarok izing in entertainment. will become a world-famousgame. ▶IT KOREA Journal: Finally, would you like to share ▶IT KOREA Journal: You expect sales this year to be your wisdom with other Korean companies that are more than twice that of last year. And, the overseas interested in overseas ventures? sales will become more than 70% of the total. What are the countries that will help you to realize this goal? Above all, finding the right local partner isa must.In particular, it is necessary to find partners equipped with In March, we will add Brazil and India to our interna- all the aspects of business competence — capital, distrib- tional family. By the end of thisyear, EasternEurope, ution channelsand technology. To have a discerningeye, Oceania, Mexico, etc will join the Ragnarok family. We you need an exhaustive market survey. As soon as you expect 30 new countriesthisyear. We will localize its choose a country, don’t try to save labor and marketing service and independent servers will be installed in all costs. Exporting online games is to sell culture, not these areas and countries. We have already signed con- product. Other costs are not involved. Labor and mar- tracts with most of the countries under consideration and keting costs necessary for game development and oper- if all the contractsbecome effective, then we would have ation are all that it takes. Don’t try to save money. What more than 30 countries. Consequently, we expect the sales you need, among other things, is a bold and appropriate to increase by at least 100% this year. move based on marketing knowledge.

IT KOREA Journal _ 57 SPECIAL � 3. Introduction of Major Korean Online Game Companies

Introduction of Major Korean Online Game Companies

[ Hangame ] Hangame (www.hangame.com) is a game portal operated by a professional Internet group called ‘NHN Corp. (www.nhncorp.com)’ that runs the Internet search portal site ‘Naver (www.naver.com)’ and the Internet game service ‘Hangame’. The NHN Corp. started a regular Internet portal business in June 1999 with the name of ‘Naver’ and changed the name to NHN Corp. in September 2001. The NHN Corp. was listed in KOSDAQ in October of 2002. The NHN Corp. lays emphasis on the provision of high quality services. The NHN Corp. can develop every solution within the company so it is distinguished from other companies. In the NHN Corp., professional developers in the fields like game development, web development and search development occupy more than 60% of the whole staff. The NHN Corp. started to advance into the Japanese market in 2003 and announced the merger of the Japanese Naver and the Hangame. Nowadays, Hangame Japan has 4.5 million members and a maximum simultaneous connecting membership of 52,000 and sat on the top of the Japanese web-game market. The NHN Corp., which made sales of 166.6 billion won and a revenue of 65.7 billion won in 2003, will try to capture the RPG market by the enhancement of its community service and an online game called ‘Archlord’ and will largely improve a global business, especially in Japan and China.

Major Online Games Provided by the Hangame

‘ARCHLORD’ ‘ARCHLORD’ as the representative online game of the Hangame. The ‘Archlord’, which has been provided for three years, is a full 3D RPG. The title ‘Archlord’ is the combination of ‘arch’ meaning ‘best’ and ‘chief’ and ‘lord’ meaning ‘monarch’ and ‘king’, so ‘Archlord’ means the best monarch, in other words, the ‘absolute monarch’. About 70% of the ‘Archlord’ was completed by investigating 70 professionals and 10 billion won with 3 billion won for initial marketing. The close beta-service will be started in late March of this year, 2004. The moving pictures and the OST of the ‘Archlord’ were disclosed through the KAMEX and its homepage (www.archlord.com) last year. The ‘Archlord’ includes descriptive stories representing discords among various tribes and the activities of heroes with great battle scenes between the human tribe and the oak tribe produced by a digital animation method, resulting in great images like those found in top fantasy movies. The ‘Archlord’ targeting on being graded as for ‘12-year-old’ is in the middle of development. The ‘Archlord’ is in a legitimate game type preferred by the MMO RPG mania of 18 to 20 years old.

58 _ IT KOREA Journal ‘OUTPOST’ exhibiting them in the The ‘Outpost,’ whose water tanks. As the service was started in June, users capture a larger 2003, is a military action amount of fish, the game with the background fishing instruments and of a third World War am boats are upgraded to ong Europe, Asia, Africa be able to advance to and America for capturing further fishing places and capture the various fish. the ownership energy left in the world. The ‘Output’ ‘BUZZER BEATER’ reproduced more than 300 actual military devices like tanks The ‘Buzzer Beater’ and helicopters and action effects using motion captures. whose service was started in December, ‘LIMIT ONLINE’ 2003 is a real time The service of the ‘Limit online basketball game Online’ was started in Jan in which various types uary, 2004, and the game is of plays can be per- a military FPS(First Person formed like street-bas- Shooting) game ab out a ketball of one by one or three by three and the standard bas- long war between humans ketball of five by five. and androids that are robots resembling humans. The reputation of the ‘Limit Online’ is that it is excellent in terms of the ‘GOLDWING’ touches of the FPS and suspense. The service of the ‘Goldwing’ was star ‘ARCHSHADE’ ted in September,2002. The service of the The ‘Goldwing’ is a ‘Archshade’ was started in 3D shooting game in January, 2004. which users choose a The ‘Archshade’ is gen- fighting plane from 18 erated by transferring an cute fighting planes arcade game of the same like ‘poker’ and ‘mustang,’ which are changed from the title to online, resulting in fighting planes used in the first and second World Wars and the connection of the arcade flight battles can be enjoyed on the background of various and the online. Different stages. The characteristics of the ‘Goldwing’ are easy opera- from existing FPS, a tions using a mouse, fine and realistic graphics, realistic maximum of 10 people can perform network plays and indi- sounds and speedy progress, resulting in a sense of real flights. vidual information like ranking is stored when using ID cards, so the arcade game can be enjoyed like an online game. In ‘UPPU’ addition, the online ‘Archshade’ users can battle with the The ‘Uppu’ whose gamers in recreation rooms, so the online users can enjoy the service was started in great pleasure of the arcade at home. January, 2003 is an arcade game in which ‘HANQUA’ a cute character having The service of the ‘Hanqua’ was started in April, 2003. The a key is in its vehicle ‘Hanqua’ is a 3D fishing game for capturing various types of and attacks enemies by fish from rivers, lakes and oceans in the world, raise the fish in using farts to collect water tanks decorated by users or to show the fish by jewels. Maximum of 6 users can play the game, which has

IT KOREA Journal _ 59 SPECIAL � 3. Introduction of Major Korean Online Game Companies

characteristics of a speedy progress and various vehicles, at the [ Netmarble ] same time. The Netmarble Inc. (www.netmarble.net) is a game portal site established in March, 2000. The Netmarble Inc. was ‘INUSIAD’ selected as the most raised site in 2001 and it was raised to the The service of the top of game portals in 2002. The Netmarble Inc. was merged ‘Inusiad’ was started in to Plenus (www.plenus.com), which runs Internet and movie November, 2002. businesses, in December, 2002. The ‘Inusiad’ is an The Netmarble Inc. focused on the development and the online RPG about magic service of games in various genres like educational games, competition of wizards on web board games, arcade games, and sports games, and leads the background of a virtual the generation of new business models, such as web pub- Inusia ground. In the lishing model of online games, based on the development and game, corps of various characters like wizards, soldiers, and the service of the games. archers are formed and the corps are increased through battles The Netmarble Inc. increases its business to an enter- against other players. tainment portal, which services the VOD service of movies and dramas and entertainment contents service of cartoons, ‘RYL ONLINE’ avatars, and entertainers. The ‘Risk Your Life (RYL) Online’ whose se Major Online Games Provided by the Netmarble rvice was started in December, 2002 is a ‘DARK EDEN’ fantasy online RPG game The ‘Dark Eden’ is a legit- about the opposition imate horror RPG game between the old world and about vampires in a near the new world on the future. The ‘Dark Eden’ re background of the colonization age of the virtual Carterant alizes a modern horror kingdom. The ‘RYL Online’ using a 3D engine developed by fantasy background by Gamasoft Co. represents the essence of a full 3D PRG through mixing chivalry, middle-age realistic graphics. fantasy, as well as, SF mood.

‘PRISTONTALE’ ‘STONE AGE’ The ‘Stone Age’ is an online RPG game about the lives of primitive men on the background of the Stone Age. The primitive men live on four islands by utilizing the characteristics of the islands.

‘KANGJIN SOCCER’

A 3D online game, the ‘Pristontale’, was first serviced in December, 2002. The users of the ‘Pristontale’ can enjoy various characters, jobs, and skills on the background of a virtual continent, ‘Priston’. The ‘Pristontale’ is famous among female and children, because of cartoon-like characters and splendorous maps.

60 _ IT KOREA Journal The ‘Kingjin Soccer’ is a soccer game possibly enjoyed by [ Mgame ] 20 users at the same time. The Mgame Corp. (www.mgame.com) was established in The users of any sex and age can enjoy the ‘Kangjin Soccer’ 1999; however, the company started the development of since the users can select different characters and use winning online games in 1996 and developed and serviced an online technologies and various items. In addition, the ‘Kangjin game entitled ‘Darksaver’ in 1997. Soccer’ is a real-time online game emphasizing teamwork, Nowadays, the Mgame Corp. develops and services the resulting in competitive tension. Internet game side ‘Mgame’ and a large number of online games, such as ‘Darksaver’, ‘Biography of Soma Mythology’, ‘CARTOONRACE PLUS’ ‘Droyan Online’, ‘Online Worms’, ‘Online Bomberman’, The ‘Cartoonrace ‘Neo-Darksaver’, and so on. The number of members for each Plus’ is an online rac game was 15 million where in the Mgame is 10 million, the ing game in which ‘Darksaver’ is 2 million, the ‘Biography of Soma Mythology’ users decorate spe- and the ‘Droyan Online’ are more than 500 thousand each and cific vehicles and the ‘Online Worms’ is 800 thousand. In addition, the number enjoy racing with a of the simultaneous connecting users is over 100 thousand. maximum of eight The Mgame Corp. provides the games of various genres, such other users. as public board games like ‘Baduk’, ‘Chess’ and ‘Godori’ and In the game, various vehicles and options are arranged, and the RPG online games for mania, so that it is prospected that individual vehicles can be made through dress-up tunings. In the Mgame Corp. will grow as a real global online game pub- addition, various items improve the pleasure of the game. lisher. The Mgame Corp. contains necessary technologies for the development and the service of online games like server ‘GUNZ THE DUEL’ technologies and network technologies, as well as, service knowledge for providing the pleasure of the online games to its users.The Mgame Corp. made the sale of 4 billion and 500 million won by the royalties from foreign countries out of the expected sale of 18 billion and 300 million won in 2003. The Mgame Corp. will vary its export regions into Japan, Southeastern Asia and the US, following Taiwan and China, in order to make the sale of 6 billion won this year. Specifically, the Mgame Corp. focuses on their advancement into the US market by publishing the ‘Knight Online’ in the US with a license type.

Major Online Games Provided by the Mgame

‘LUNENTIA’ The ‘Lunentia’ is the first online RPG game for females. The game uses a The ‘Gunz the Duel’ is an alternative shooting action game large number of elements where it is possible to perform various actions. that distinguish the Various characters of the game can hold various clothes and ‘Lunentia’ from existing items based on the tastes of the users, as well as, the characters RPG, resulting in giving may hold various weapons. pleasure to users. The In addition, role-playing elements are added to the ‘Gunz basic concept of the ‘Lunentia’ is ‘nonsense’ using a specific the Duel’, resulting in various stories based on the scores of its way of facing things, which is different from a conventional users. rule, and parodies accompanying humor. Accordingly, the

IT KOREA Journal _ 61 SPECIAL � 3. Introduction of Major Korean Online Game Companies

female users and other light and casual minded users, who [ Pmang ] avoided the RPG due to the heaviness and difficulty of the The Neowiz Corp. (www.neowiz.com) is a professional RPG, may enjoy the ‘Lunentia’. Internet company established in May, 1997. The Neowiz Corp., which had provided various Internet services like the ‘NEO DARKSAVER’ Sayclub, started the game portal Pmang (www.pmang.com) last year to become a general online game company. Pmang publishes various games based on 15 web board games. In particular, the game like ‘Go Stop’ for adults, which has an average of simultaneous connection or its users at around 150 thousand, became the most famous board game in Korea last year. In addition, the Pmang provided games in various genres, such as online racing games and shooting games, and thus, became a well-known game portal company. The Neowiz Corp. undertook a Japanese company named ‘Ifactory’ and established Neowiz Japan in 2003 to advance into Japan.

‘ACCION ONLINE’

The ‘Neo Darksaver’ is a RPG on the background of a Middle Age fantasy world. The game is formed of a scenario system of real time turn type and includes small and cute characters.

‘KNIGHT ONLINE’

The beta test of the ‘Accion Online’, an online mechanical shooting game, will be started in April. In the ‘Accion Online’, the users riding on robots fight against enemies, and the view points are changed from the first person to the third person so beginners can easily enjoy the game. In addition, the ‘Accion Online’ uses various multi-play modes, more than 50 kinds of weapons and various strategies, resulting in splendor and realistic special effects next to PC games or CONSOLE games. The ‘Knight Online’ is a full 3D PRG game. The most characteristic of the game is great battles among the users. The users should participate in the battles right after registering [‘ LAGHAIM’ by NACO Interactive ] accounts and selecting tribes. The hero of the battles receives The NACO Interactive Co., Ltd. (www.laghaim.com) is peerage and prizes from a king. Moreover, the users may be an online game company established in July, 2000 and started lords of castles and lords of manors to rule a city. the service of a full 3D RPG game called ‘Laghaim’ in

62 _ IT KOREA Journal [ ‘RAGNAROK’ by Gravity ] The Gravity (www.gravity.co.kr) established in April, 2000, is a company developing computer game software and online contents. Gravity became famous by developing and servicing the online game ‘Ragnarok’. ‘Ragnarok’ based on a famous fantasy cartoon is a role playing game using a huge background and settings. The main characteristic of ‘Ragnarok’ is its cute graphics, which use bright pastel colors. The portion of female users of this game is larger than other games and the ages of its users vary from teenagers to those in their thirties. After the domestic service was started in August, 2002, ‘Ragnarok’ advanced into Japan, Taiwan, Thailand, China and the US. In late 2003, ‘Ragnarok’ advanced into 5 countries within Europe, which made its the first Korean online game there, plus, this Korean firm has service contracts with India and Brazil that were established in January, 2004, resulting in its advance into 17 countries of the world. ‘Ragnarok’, having 16 million users, is actually quite famous in foreign countries, for example, a ‘Ragnarok Festival’ was held in Japan. In addition, the ‘Ragnarok’ was presented a foreign product award in the ‘AMD awards’ held in Japan by the Ministry of August, 2001. The number of members of the ‘Laghaim’ in Public Management, Home Affairs, Posts and November, 2001 was 2 million and the number of simulta- Telecommunications, in February, 2003. neous connecting members became over 30 thousand in the shortest period of time within Korea. Based on the success found in Korea, the services of the ‘Laghaim’ were started in Japan in January, 2002 and within Taiwan and China in July, 2002. In addition, the ‘Laghaim’ advanced into Europe by cooperating with the European ISP company in October, 2002, into Indonesia in March, 2003, into Germany in August, 2003 and into Malaysia in December, 2003. The ‘Laghaim’ advanced into the US in January, 2004 and it is to be serviced. The ‘Laghaim’ is formed of full 3D graphics to provide realistic and splendorous graphics. In addition, the various viewing points in the game can be freely changed, and zooming in and zooming out are possible. The motions of tens of characters are changed according to the clothes, and various feelings like greetings, laughing, and crying can be expressed. In addition, a large continent possible of containing 100 million people is a characteristic of the game. Detailed expres- [‘ SEAL ONLINE’by SunnyYNK ] sions like the difference in the length of shadows according to The SunnyYNK Inc.(www.ynk.net) ran a business related the changes in weather and time are also considered. The users to games via a game character licensing business in 1998, and may produce and sell items, may raise animals and may build became a regular game company as well as being a profes- houses. sional game publisher, by becoming an official partner of

IT KOREA Journal _ 63 SPECIAL � 3. Introduction of Major Korean Online Game Companies

‘Vivendi Universal Interactive’. ‘[ FORTRESS 2 BLUE’by CCR ] Being a game publisher means a business having game The CCR (www.ccr.co.kr) established in March, 1995, is copyrights, reprocessing the game, as well as, servicing the an online game company that generated ‘Fortress 2 Blue’. The game to users. CCR services various online games through a game portal X2 The SunnyYNK Inc. has a business model of selecting Game (www.X2game.com) and introduced the ‘One Source, excellent game developing companies and cooperating with Multi Use’ concept for a first among the game companies to the companies in circulation, marketing, advertising, customer run a character merchandizing business of animation, publi- supports, technology supports and investments, which include cation and toys using the ‘Fortress’. operations except those for the development of the games. CCR published an upgraded version of the ‘Fortress 2 Blue’ The SunnyYNK Inc. made a base as a professional game to secure various game groups from casual games for any sex publisher by successfully publishing the online game and age to hardcore games for maniacs. Due to the strong ‘Ragnarok’ and the game portal site ‘Candybar’ in 2002. points of the ‘Fortress 2 Blue’ being easy to play and not In addition, the SunnyYNK Inc. made a publishing contract violent, the ‘Fortress 2 Blue’ is famous as being called a with Grigon Entertainment, a promising game developing ‘public game’. The ‘Fortress 2 Blue’ is a turn-type shooting company and published the charged online game ‘Seal game in which gamers attack enemies in turn within a limited Online’, in 2003. time, and various strategies may be realized by controlling a The game companies paid attention to the ‘Seal Online’, spacebar and direction keys. The ‘Fortress 2 Blue’ is enjoyed which was exported to Taiwan and Japan in 2003. The by teenagers and office workers alike, and the game improved SunnyYNK Inc. made the Japanese license contract of the the game culture in Korea. ‘Seal Online’ with the GBM, a Japanese service company, at The ‘Fortress 2 Blue’ has 12 million members in Korea the royalty of 42% of the sale, which was the highest among (50,000 to 70,000 simultaneous connecting members) and 40 the domestic Korean online games. million members in China, Japan and Taiwan. ‘Fortress 2 SunnyYNK Inc. made the Taiwan license contract of the Blue’ makes sales on the average of 1.2 billion won per month ‘Seal Online’ with Taiwan Index Company (TIC), a Taiwan in 10,000 PC centers. game distribution company, under the conditions of a deposit In addition, the ‘Fortress 2 Blue’ was reproduced as a TV for $1.25 million (or 1.5 billion won) and a minimum royalty animation series by 7 Korean and Japanese companies and worth $3 million (3.5 billion won). broadcasted by Tokyo TV in Japan and SBS in Korea. ‘Seal Online’ realized a full 3D cartoon rendering technology to show realistic battles through a combo system on the smooth background like those used for animations.

[‘ LINEAGE 2’by NCsoft ] The NCsoft Corporation (www.ncsoft.co.kr) is a professional online game company that was established in March, 1997. The NCsoft Corporation is famous as a company that opened a new area of domestic online games by publishing the

64 _ IT KOREA Journal battles by clicking the left button of a mouse. In addition, when a gamer is at a lower level, the gamer may hunt monsters, and when a gamer gets to a higher level, the gamer may perform complicate and profound war, political and economic actions. Accordingly, all of the gamers from beginners to the “professional” can enjoy the game. The charged service of the ‘Lineage 2’ was started in October 2003, and the ‘Lineage 2’ maintains the same number of simultaneous connecting members as the number of simultaneous connecting members of the exhibition service. The ‘Lineage 2’ has more than 1.95 million members and more than 100,000 simultaneous connecting members, so ‘Lineage 2’ is expected to become a mega-hit.

[ ‘MU’ by Webzen ] Webzen (www.webzen.co .kr) is a professional online game company established in April 2000. Webzen made a strong blast into national and international game markets by generating the 3D online game ‘Lineage’ in 1998. It is estimated that the NCsoft Corporation, ‘Mu’. Webzen entered KOSDA which made a conquest of national and international online Q last year and it was called a game markets, made a revenue of about 28 billion won by the ‘loyal stock’. In addition, the royalties connected to the ‘Lineage’ service in Taiwan last Webzen was listed in NASDAQ as the first Korean venture year. The NCsoft Corporation plans to regulate the interna- company. The ‘Mu’, whose service was started in November, tional services of the ‘Lineage 2’ and start the services of new 2001, is a role-playing game using full 3D solid images, first games in the USA in order to keep the position of the in Korea, that represents magnificent graphics on par with and company as a representative online game company. actual SF movie. ‘Mu’ enables the presentations of soft move- The development of the ‘Lineage 2’ was started in October, ments of characters through a quarter view, such as splen- 2000, and the exhibition service thereof was started in July, dorous backgrounds, light effects, waving woods, rain, light- 2003. The ‘Lineage 2’ is a great work formed by investigating ening, and magical effects. In addition, it is possible to express 120 development professionals and 10 billion won. The various characters by using 100 thousand types of armor, ‘Lineage 2’ is now beta tested in Japan, Taiwan and China. weapons and defense tools. In addition, various motions such The characteristic of the ‘Lineage 2’ is a complete 3D as sitting, greeting, shouting hurray and trying one’s patience graphic providing a realistic experience to gamers. In par- are possible. ‘Mu’ provides hot-keys for professional gamers, ticular, the background and the characters represented by full resulting in rapid manipulations. In addition, the users can 3D graphics resemble a real world and people, and are move characters, attack monsters, perform commercial trans- expressed by using optimum unreal engines. In addition, the actions and sit the characters by clicking the left button of a spacious world of the ‘Lineage 2’ including oceans, moun- mouse. tains, valleys, and woods is expressed by a single loading, The sales of Webzen was 57 billion won last year, which resulting in the improvement of the absorption of the attention was increased by 100% from its sales in 2002. In addition, the of the gamers into the game. foreign sales of Webzen was increased to 9.3 billion won last The ‘Lineage 2’ has a simple interface, which was used in year, which had been 1.4 billion won in 2002, due to the ‘Lineage’, so that its users may perform movements and basic success in the charged service of the ‘Mu’ in China and

IT KOREA Journal _ 65 SPECIAL � 3. Introduction of Major Korean Online Game Companies

Taiwan. Webzen is currently preparing a new product to nected to the game, and the ‘Nexus TK’ has been listed in the follow up on the success of ‘Mu’ and plans to vary business by top 50 of a chart provided by the Internet World Chart advancing into the game portal business. Webzen has already (www.worldcharts.com), whose chart is formed by votes of advanced into China, Taiwan and Japan with plans to advance gamers worldwide, since the start of the service, the location into Thailand within this year, 2004, they have started prepara- of Korean online games have improved. The Nexon tions to advance into Europe and America in the near future. Corporation established a local corporation in Japan in 1999 and serviced the Japanese edition of the ‘World of Wind’, plus, started the service in Indonesia in May, 2001. In addition, ‘[ A3’by Actoz Soft ] the Nexon Corporation succeeded in the license advance into The Actoz Soft Co., Ltd. Taiwan and China, and plans aggressive to advance into other (www.actoz.co.kr) is a pro- foreign countries in 2004. The ‘World of Wind’ includes con- fessional online game co venient help messages like the explanation of locations, which mpany established in Oct are selected by users, so that the users may easily enjoy the ober, 1996. The Actoz Soft game. In addition, lives and structures representing the period Co., Ltd. became famous with of the game were reproduced in the game by using charming ‘The Legend of MIR’ in images, so young women like the game. 1998. The company, which exported 11.5 billion won in 2002 The ‘World of Wind’ provides tens of faces and hundreds of by the service of ‘The Legend of MIR 2’ in China, accom- clothes, so tens of thousand characters can be realized within plished the export of 40 billion won last year which occupied the game by combining the faces and the clothes. 70% of the sales of the company, which was 60 billion won. It was because the adult online game ‘A3’, which was published in December, 2002, was well exported, and a royalty [ ‘KHAN’ by Mirinae Entertainment ] dispute against a Chinese service company was dissolved and The Mirinae Entertain the Korean firm received 18 billion won at once. The Actoz ment (www.mirinae.com) is Soft Co., Ltd. will start the general service of the ‘A3’ in an online game company China, Japan and Hong Kong and advance into Europe and the established in May, 2001. US this year, 2004, so that it is prospected that the Actoz Soft The company focuses on Co., Ltd. will make better export accomplishments than they the online game ‘Khan’ did last year. The ‘A3’ is an action RPG game targeting adults whose service was started in by claiming the sympathy of adults. The ‘A3’ is evaluated as November, 2003. The ‘Kh pulling down the limits of expressions due to shocking images an’ as a full 3D RPG game uses splendor graphics and easy revealed as the game’s progresses. control, various characters whose characteristics are raised according to the intentions of the users, hundreds of items and new monsters. The users may freely select a character from 8 ‘[ WORLD OF WIND’by Nexon ] characters having different jobs and develop the character. The The Nexon Corporation scenario of ‘Khan’, which provides 8 episodes and 23 maps, is (www.nexon.com) was estab- that the users attacked from virtual lords cooperate with each lished in 1995 and started the other to repulse the enemy, in the period of time before service of the ‘World of Win Genghis Khan. d’ as the first online game in The users can reach the level of the Lord Khan by growing Korea, which was in 1996. through actions done within various battles. The ‘Khan’ The Nexon Corporation established a local corporation in emphasized communities through a strong ‘party’ function and the Silicon Valley in August, 1997 and started the service of the users of the game can be further developed by collecting the ‘Nexus TK’, which is the English edition of the ‘World of training points via a training point growth (TGP) system and Wind’, in July 1998. distributing of the training points. In addition, a real time During the three months of an exhibition service period, the ranking system is provided while possibly performing chatting ‘Nexus TK’ became famous as 100 thousand gamers con- by using an emoticon function.

66 _ IT KOREA Journal SPECIAL � 4. Chung Pil-yong, CEO of GamSofNet

Thailand, Another Market in Asia

ecently, IT markets have been rapidly developed the distribution of high speed Internet R worldwide, mostly in Asian countries. The major services like the ADSL and the exporting country of Korean games was China; however, the ISDN. After the National Electronics exporting regions for Korea are gradually expanding to and Computer Technology Center encompass Asian countries such as Thailand, Indonesia, Taiwan (NECTEC) was created in September and India because of the potential energy and the possibility of of 1986, various projects related to future game markets in other Asian countries have increased. IT, such as an e-commerce center, a In particular, it is worthy to note the game market in Thailand. software park and the development of The number of Internet users there have increased in a geomet- a public PC, were performed. In rical progression, and the Thailand’s government has aggres- addition, it is known that the Thai government supports online sively activated their Internet and IT industry. It is predicted that game industry. Thailand will be a newly rising market for Korea having Third, as PC centers spread throughout Thailand, the Internet improved its Internet and game technology. and games have become increasingly famous and familiar to Thai When Korean games were initially advanced into the Chinese youngsters as they become the central figures within this market, various problems occurred and the Korean game com- spreading trend. The online game market in Thailand was 400 panies experienced a period of trial and error. In order not to million dollars in 2002; however, it is expected that the online repeat such trial and error process again, the characteristics of the game market will be increased by 100% to 840 million dollars by Thailand game market should be examined and detailed strategies 2005. It is estimated that most of two million computer gamers for properly corresponding to the characteristics of the area enjoy online games. The online games of ‘Ragnarok’, ‘N-Age,’ should be arranged. ‘Fairy Land,’ ‘King of Kings’ and ‘Dragon Raja’ were serviced The Thailand game market has three merits. First, it is rela- in Thailand, and the number of serviced online games has are tively easy for game companies to advance, because Thailand has increased to 15, recently. The registered members of ‘Ragnarok’ economically cooperated with Western countries and accumu- are about 700,000, and the simultaneous connecting members are lated knowledge about economical cooperation. In late 2003, about 200,000 after the charged service thereof was started. about 10,000 broadband communication networks were dis- Even the game market has explosively grown within one year tributed within Thailand. Moreover, it is expected that the sub- after ‘Ragnarok’ was introduced to Thailand in the second half of scribers in Thailand will be 20,000 by the first half of 2004 and 2002, the Thai market is still in its initial stage. The Internet lines 50,000 by the end of 2004, due to the rapid spread of online are expensive; however, illegal software is widely used even in games there. Accordingly, a lot of ISP companies plan to increase Internet cafes. Furthermore, the speed of the Internet is slow, the broadband communication network by using the game resulting in it being difficult to download games. industry. When considering the environment and the character- However, in the case where the Korean games preoccupy the istics of the Thailand game market, one which the market prefers game market of Thailand in the initial stage, the Korean games games having a high brand preference while having a low price, will spread deeper roots into the areas within the Thailand game not to mention the fact that most game businessmen studied market showing potential energy. abroad, the prospect of the Korean games is bright in Thailand The online games were suddenly introduced into the Thailand where Korean products have a positive image. game market and due to the poor technology in Thailand, the Second, Prime Minister Thaksin Shinawatra promotes regular Korean products preoccupied the initial online game field. In plans for improving the IT industry like advocating a strong addition, it is predicted that the Korean products will lead the network among Asian countries. More specifically, the needed Thailand game market for quite some time. Games like ‘Arcana’ required equipment and networks within each Thai governmental and ‘Fantasy’ are in the middle of development by Thai com- agency has been grasped because of the realization of an elec- panies; however, it will take more than two years until the games tronic government concept, and said Asian government has raised are regularly serviced.

IT KOREA Journal _ 67 SPECIAL � 5. Interview Kim Woo-suk, Chairman of the Korean Game Export Association

K orean Game Export Association Kim Woo-suk Chairman of the Korean Game Export Association

“Focusing“Focusing onon thethe ExportExport PromotionPromotion ofof KoreanKorean GamesGames andand thethe DiversificationDiversification ofof ExportExport Markets”Markets”

▶IT KOREA Journal: Would you like to comment on the cation service providers and game companies? background and object of setting up the Korean Games Export We will let communication service providers such as KT, SK Association and plans for its future activities? Telecom and LG Telecom find and invest in promising Korean The global game market has been ever growing due to the high games, and help them market the games in linkage with commu- growth of the game industry itself, which can be the core of the nication service providers abroad. digital contents industry. In order to promote exports of local Korean games, game companies, communication service ▶IT KOREA Journal: The export of Korean games is now providers, giant publishers and our government’s supportive concentrated on Chinese circles such as China, Taiwan and organizations, we have set up an export association on a non-gov- Southeast Asian countries. On the other hand, the export to ernmental basis in order to help each other in overseas marketing North America and Europe is small. What is your plan to and the export business. We will be positively mediating Korean expand exports of on-line games in the future? game companies’ international conflict relating to their games, The main export countries of on-line games are limited to helping them overcome the difficulties in exporting games with China, Japan, Taiwan and Southeast Asian countries because of governmental supports of the concerned organization, and the cultural similarity. As on-line games are becoming globalized, making an alternative measure to an important issue on the we will be making efforts to enhance the awareness of local on- games. line games and their products by providing marketing guidance to the local companies in the US, Europe and Central & South ▶IT KOREA Journal: Communication service providers American markets with global contents, and inducing the including KT, SK Telecom and LG Telecom take part in the investment presentation. Since Korean mobile handsets, in par- Association. What is the program’s to link to the communi- ticular, are now gaining a greater popularity in the world market,

68 _ IT KOREA Journal it is expected that local mobile games, of which game programs will be advantageous to exporting with the enhancement of com- will be embedded to Korean mobile handsets, will have a chance petitiveness both in Korea and abroad by making the most of the of success in capturing the markets in the US and Europe. creativeness of the game. Accordingly, if we are making every possible effort to export the games with support of those countries’ language versions, it will ▶IT KOREA Journal: What do you think are the measures to contribute greatly to the diversification of export market. enhance overseas competitiveness of Korean on-line games? In case of on-line games, we should first make a precise ▶IT KOREA Journal: China is now the largest market for analyses of those who can enjoy a cultural life in each country, Korean on-line games and it is expected to become our greatest and establish a target market for each class of people. Then, we rival as well. What do you think is the measure to enhance our should approach them to build up a confidence. It will contribute competitiveness with China ? greatly to enhancing competitiveness. If it is a mutual benefit by Lately, the Chinese authorities are studying the development of mutual cooperation, it will contribute greatly to increasing com- Chinese on-line games because they are afraid that they will be petitiveness in overseas countries. subject to Korea culturally on grounds that about 80% of foreign made on-line games are made in Korea. It might be thought that ▶IT KOREA Journal: Korean on-line game companies are Korean on-line games will be in a critical situation as Chinese equipped with both product and technical competitiveness to authorities cope with it quickly by announcing an intensive some extent. But most of them are small and medium sized investment plan so as to develop their game soft ware. We, companies, of which overseas marketing and financial capabil- however, could get over such difficulties if we strongly overhaul ities tend to be inferior. What do you think are some effective local on-line games in a way to benefit each country by increasing measures to solve it? competitiveness, endeavoring, in many ways, on the contents and Since the top 5% of companies dominate more than 70% of the service of our on-line games. local Korean on-line market, quite a few on-line game companies have been advancing into oversea markets actively in order for ▶IT KOREA Journal: What do you think is the most difficult them to off-set their inferior local market position by entering the problem Korean on-line game companies are now facing in overseas markets. They, however, could not compete with large exporting their products? And, what do you think are some companies in term of organizational and financial capabilities. As measures to solve it? some of them tend to give up even their technologies to foreign The greatest difficulties are that the companies lack information companies, actual draining out our own high technology by them and data about their target export countries. Accordingly, we plan is also a rising and serious problem. to service the game industry with the market information and its To solve it, accordingly, appropriate supports should be given to analysis that will be made through each country’s I-PARK or them? rather than by the private sector but, instead, by govern- commercial attache there, as well as, the Government’s supportive mental organization. It is most desirable in preparing for the organization. We are now supplying each country’s model con- future. tract to them. We will be putting into practice the performance guarantee of payment and technical assistance to enhance relia- ▶IT KOREA Journal: Regarding the companies which want bility in contracting with foreign companies and the source code to advance into overseas markets with the help of the Korea deposit system in association with the Korea Software Financial Game Export Association, would you please comment on how Cooperative and Program Deliberation & Mediation Committee. to connect with it ? Furthermore, we plan to put into practice export financing in con- The Association has opened the door. If they contact the Korea sultation with the Korea Export Insurance Corporation and Korea Entertainment System Industry Association or the Game Business Export/Import Bank. We will be seeking solutions through the Team of Korea IT Industry Promotion Agency, they can make Arbitration & Mediation Committee to be organized so that the sure of connecting with a lot of businesses within the Association. government may positively mediate in the conflicts of games We are planning to make it reborn as the organization serving the between countries. The “screening system”, above all, should be export of Korean games and providing information by expanding changed into a “Private Self Screening System,” under which and making the Association develop more in the future, and we private committee members will do the screening to make deci- will do our utmost to develop the game industry into a national sions. It is believed that fixing a “Private Self Screening System” basic industry.

IT KOREA Journal _ 69 SPECIAL � 1. Market Trends of Local Mobile Games

Korean Mobile Games Are Subjugating Global Game Market

LBS/3D/wire & wireless linkage hi-tech games rush to show off

Following local on-line games, the Korean mobile games are making inroads into the global market. Strengthening performances of mobile phones a lot, the high technology games such as the 3D and Network games associated with the LBS (Location Base Service) are pouring down on the market. Great games of wire & wireless linkage with famous on-line games contribute to the development of the mobile market. Reported by Shim Woo-sung([email protected])

he growing speed of local mobile games is surprising. GameVil (www.gamevil.com) TAccording to the ‘2003 annual report of Korean game completed development of the industry’ issued by the Korean Entertainment System Industry strategic simulation game entitled Association (KESIA), local mobile games keep growing at an “Quasi Three Ancient King doms” by annual growth rate of 63% every year from 100 billion won in using LBS technology and it provides 2002 to 170 billion won in 2003, and is prospected to reach 300 their services through SK Telecom billion won by 2007. According to the ‘2003 trend analysis of since February. The basic scenario of � GameVil “Quasi Three game development and guide’ issued by the Korea Game this game is the battling of one indi- Ancient Kingdoms” Development Institute (KGDI), the number of mobile games reg- vidual against another between towns with key positions not on istered with the KGDI has increased 67% compared with last the Chinese continent but located on SK Telecom’s base stations. year, and the number of multi- platform games, which support Making an alliance among users via network like on-line games, both on-line and mobile games at the same time, was 41, an they are attacking others and defend themselves. increase of 140% as compared with last year. According to SoftEnter (www.softenter.com) also provides the services for industry sources, the wire & wireless linkage games were not “Battle Canon Live” the mobile game associated with LBS, thinkable at all 2 or 3 years ago and it is a good example that the which they developed with SK Telecom. This game is a new Korean game industry has been, also, developing technically. concept of mobile game where users fire canons at others reading the map, on which others’ locations are displayed, on their Pouring Down of Hi-Tech Games Such As LBS and 3D mobile phones. And its users can express their feelings either with emotion or in “chatting” while enjoying the game. Top of the list of local Korean mobile games this year are the According to the concerned company staff, they are scheduled to ‘high technology’ games. Above all, the recent mobile LBS show off a mobile game not only associated with the LBS, but games are noticeable, thus, it will be expected to open a new also to be implemented with the Global Positioning System genre of mobile games this year. (GPS) sooner or later.

70 _ IT KOREA Journal existing specialized mobile game companies. These companies set up their business strategies to strengthen web-to-phone service positioning wire & wireless linkage games on the front, specially based on the wire infra. And it is revealed that they are developing a variety of wire & wireless games on � Web E&G Korea’s “Pengdori’s Dream” � Zio Interactive’s “3D Gunner” the basis of their users being secured through existing internet As an LBS game, it is possible to confirm games and game know-how. users’ locations in real-time, it shows mobile game’s advantage NHN (www.nhncorp.com) providing the HanGame service well, which an on-line game or a PC game can not imitate. In plans to apply wire&wireless games, which are now limited only particular, as it can make an alliance between regions and nurture to the PDA, to mobile phones this year and, thus, show-off 10 characters, it is expected to activate network mobile games. kinds of in-house developed mobile games consecutively this 3D Mobile games are also noticeable, which were introduced year. in Korea last year, together with the LBS. Displaying Web E&G NeoWiz (www.neowiz.com) plans to show-off pet games Korea’s (www.webngkr.com) “Pengdori’s Dream” and “Dance using an avatar design based on the Pmang and the Say Club, as Factory”, Zio Interactive’s (www.zio.co.kr) “3D Gunner”, well as, unveil network games associated with the 3 mobile GameVil’s “Hyper Battle 3D”, and etc., it is prospected that this service providers. In addition, they are promoting a publishing year will be the first year for 3D mobile games. business which will explore the mobile role playing and the 3D “Pengdori’s Dream” is a flying action game in which flying games together with the mobile service providers. penguins in the sky and missile attacking effects are expressed in MGame (www.mgame.com) plans to provide services for 3D and creates excellent visual effects. “Dance Factory” is a four kinds of wire & wireless linkage games that have been rhythm game, in which users are pressing the buttons corre- developed by their subsidiary company, M JoyNet, and they add sponding to directions of arrows coming out according to the more than 10 kinds of wire&wireless games at the same time this melody of the music muck like “DDR”, an arcade game. Users year. They are in course of selecting a variety of contents can enjoy exciting rhythms of the dance music while watching a according to the plan that they will provide service combining dancing girl’s rhythmic movements in 3D. contents and games in the 2nd half of this year. Besides, “Hyper Battle 3D” is appraised as the perfect 3D According to the plan to associate not only with the game game because all the characters in the game and their actions and playing, but also, with the point, item and game money. They are movements are expressed in 3D. And “3D Gunner” is a 3D going on to increase the needed manpower in a exclusive charge. shooting game that shows battles between battleships and A staff of a mobile game company said, “Though game portal fighters in the background of World War II, plus, it shows even companies are now focusing on web-to-phone service, they could more realistic 3D effects. be a threat to the mobile game companies, as well as, the network Due to a limited number of 3D mobile phones in the market so game companies, if they use their quite a few members as the far, not a large demand for these games exists. But, because local weapon.” mobile service providers are targeting to have sales of more than 3 million 3D mobile handsets this year, it is prospected that users Great On-line Game to Be Offered by Mobile Service will be able to enjoy more upgraded 3D games in various ways. Following game portals, the on-line game companies are Wire & Wireless Linkage Games ‘Tide,’ Large showing off mobile versions of their great on-line games consec- Portals Pour in utively. Accordingly, it is expected even fiercer competition within the mobile market this year. Another tendency of the local mobile games this year is the Gravity (www.gravity.co.kr), servicing “Ragnarok,” “wire & wireless linkage.” Especially, the large game portal developed the “Ragnarok supplementary story” on the subject of companies, including HanGame, NetMarble and MGame, which the game character “Kapra” and they are now providing a service joined the mobile game market after opening the local Korean through KTF. This game is a master piece that is securing more market for the wireless network in September of last year, 2003, than 60 million users in 17 countries. According to the company have selected the mobile field as their main strategic market. sources, it has an advantage that items in the mobile game can be Accordingly, it is expected that they will compete fiercely with used in an on-line game. Furthermore, this company has

IT KOREA Journal _ 71 SPECIAL � 1. Market Trends of Local Mobile Games

� NCsoft “Lineage surviving more than one year. It’s just a few games that dash Siege Hero Warfare” into the “long run” showing off their “renewal version” every year. Such an exemplary company is called Pocket Space � Gravity “Ragnarok” � The Soft “Accrorace” (www.pocketspace.co.kr). This company that prefixes “pocket” to all its game as the brand name has devoted itself to the sector of sports. This one of the main reasons why their games have a long survival rate. In spite of a disadvantage that sports games will lose female users, this company has more than six kinds of mobile games which have been in service for launched “Ragnarok Mobile” using six characters in the more than three years. In the case of the company’s represen- “Ragnarok” on-line game and the company is on course of tative game “Pocket Yagoo”, it recorded 600,000 down loads strengthening the mobile business. Nexon (www.nexon.com) and sales of KW1.2 billion for 3 years since its launching. is now providing “Mobile Beads”, which its subsidiary company of Mobile Hands developed and a mobile version of � Pocket Space “Pocket Tennis”, “Pocket Yagoo2” the on-line game “Beads” via SK Telecom. This game, which can do both a wire & wireless linkage, can convert the points acquired in the mobile game into on-line cyber money to � Com2us deposit. The concerned staff of this company said that they “Boongobbang were going to strengthen the business a lot, launching 10 kinds � GameVil “Nom” Tycoon 2” of mobile games this year, 2004. HanbitSoft (www.hanbitsoft.co.kr) is planning to release the famous animation “Atom” series this year, 2004 following its entry into the mobile game market last year. And, it has become a progressing game portal business in cooperation with a leading mobile contents company. NCsoft (www.ncsoft.co.kr),which Besides, “Bread fish Tycoon 2,” which was launched last is famous for “Lineage”, has been showing off such mobile year by Com2Us (www.com2us.com), is surviving over long games as “Lineage Portion Pangpang” and “Lineage Siege period of time with a sales record of 1 billion won for one year. Hero Warfare” that were developed from a model of Lineage, This game based on the subject of a fish-like cake vendor and it supports to deposit points through both a wire & wireless makes a genre of business simulation simple and appropriate linkage. The Soft (www.accrorace.com) developed a 3D for mobile games. It is said that users are not fed up easily due mobile version of its on-line racing game “Accrorace” and it is to its many variances, though, its operation is rather simple. now servicing it through SK Telecom. This company plans to Because of the success of this game last year, similar games launch “Accrorace” mobile games in a series this year, 2004. have shown up successively to give rise to the ‘Tycoon’ syn- Besides, quite a few on-line game companies including drome. Webzen (www.webzen.co.kr) are providing service of mobile In addition, “Nom” which is a representative mobile game games developed after a model of their own on-line games. In from Gamevil, recorded monthly sales of 100 million won for accordance with their conclusion that mobile phone’s perfor- one year since its launching. The game, in which a hero char- mance is getting better enough not to damage the product acter Nom is evading various obstacles can be played with a images of their representative on-line games, it is thought, in button while the game is progressing fast, so it is appraised to general, that they want to be in a strategic position to pre- have created a new genre of mobile action. occupy the local Korean mobile game market, which is Regarding the mobile games which succeed in maintaining a becoming larger. long existence, Kim Do-shik, the president of Pocket Space said, “Showing off the top quality games on the sports sector Mobile Games “Long Run”, Too only for five years is the secret of the long run success.” , and he continued, “It’s natural that the life-span of mobile games Mobile games have an disadvantage that their life-span is which are sensitive to the fashion is short. As we devoted our- short. Recently, however, there are many mobile games that are selves to only one sector, our quality is accepted overseas.

72 _ IT KOREA Journal Accordingly, we were able to advance into Europe following ization experiences accumulated in Korea have made them Japan and the US. Now, it’s time that local Korean game com- depend on KDDI as the easy partner. panies should have their own peculiarity to advance into global Apart from China and Japan, Mana Stone (www.mana- market.” stone.com) which developed its original mobile game “Namoo (Tree)”, and Open Town (www.opentown.com) had World No. 1 Korean Games, Rush in Love succeeded in exporting their mobile games to Germany. Web Calls From All Over the World E&G Korea had supplied three kinds of mobile games to Telstar, the 1st tier mobile communication service provider for According to game industry sources, as Korean mobile Australia. games are developed, so love calls from all over the world are E3net (www.e3net.co.kr) which is well known for rushing in. Export of mobile games in 2002 was more or less “Stacking Coins”, supplied their mobile games to China 2.5 billion won with a share of only 2% of the total game Telecom, the largest mobile communication service provider in market. But, it recorded an export of about 10 billion won Taiwan that has been servicing the games since last February. worth with a share of 5%. Since each mobile game company As more and more local Korean mobile game companies set an export goal of several thousands of million won this advances into the global market, so has Korea’s image has been year, total exports are prospected to increase by geometric pro- strengthened as a strong country in the IT field. gression. It is even more encouraging that the export market is diversified into Europe, the US and Southeast Asia, not to mention those of Japan and from China in the past. In case of China, Korean on-line game companies have nearly dominated the market, hence, the Korean mobile game companies are advancing into China, too. China has risen to be the largest market in the world overtaking the US with 120 million mobile phone subscribers listed last year. However, the � Mana Stone � E3net “StackingCoins” supplying rate is only 16% and it has an even larger market “Namoo (Tree)” potential. 20 or so Korean mobile game companies advanced into the Chinese market so far and several other companies are List of Korea’s Leading Mobile Game Companies preparing to penetrate into the market. Following China, recently, KDDI of Japan plays a role of an COMPANY NAME URL TEL advance base for the Korean mobile games’ advancing into the Eznego www.eznego.com 82-2-3424-7772 Japanese market. According to Edia of Japan’s branch office in Entaz www.entaz.com 82-2-547-0623 Emotion www.emotion.co.kr 82-2-542-1987 Korea, KDDI’s mobile games supplier, about 20 kinds of Geotel www.geoteli.co.kr 82-2-548-7244 Korean mobile games are serviced through KDDI, thus taking Mjoynet www.mjoynet.com 82-2-3486-3910 Olarks www.olarks.com 82-2-6230-6853 the largest quantity, except for Japanese based games. Besides, Opentown www.opentown.com 82-2-2203-6310 more than 20 other mobile games have passed the service pro- Zio Interactive www.zio.co.kr 82-2-3218-8208 Com2us www.com2us.com 82-2-6292-6000 posals and are currently going through tests. So, it is estimated GameVil www.gamevil.com 82-2-876-5252 that more than 30 Korean mobile games will be serviced via Mdream www.m-dream.com 82-2-543-0169 Cecraft www.cecraft.com 82-2-548-4634 KDDI. E3net www.e3net.co.kr 82-2-565-1800 The main reason that Korean local mobile game companies Web E&G Korea www.webengkr.com 82-2-576-6505 ManaStone www.manastone.com 82-2-2192-3900 are relying heavily on KDDI like this is that KDDI uses a Brew Pocketspace www.pocketspace.co.kr 82-2-566-5010 based platform. Local mobile game companies that had experi- Softenter www.softenter.com 82-2-558-8600 Enium www.enium.co.kr 82-2-3446-7676 enced it through KTF, is targeting on KDDI which uses the FLUX www.flux2game.com 82-2-2299-6839 same platform as KTF. Mobilise www.mobilrise.com 82-2-458-6017 NAZCA www.nazca.co.kr 82-2-3141-8302 Though the Japanese Java based mobile game market has Norigae Soft www.norigaesoft.com 82-2-712-3915 already been saturated, The Brew based market is now in the Softnyx www.softnyx.co.kr 82-2-3783-7300 TOMIS Information www.tomis.co.kr 82-2-784-0110 introductory stage in Japan. Local mobile game companies’ Entelligent www.entelligent.co.kr 82-2-928-7623 Brew based game development capabilities and commercial- Gretech www.gretech.com 82-2-2112-5700

IT KOREA Journal _ 73 SPECIAL � 2. The Leading Local Mobile Game Companies

The Leading Local Mobile Game Companies

Com2us Corporation Thanks to these popular games, Com2us has become the leading mobile game specialist in Korea with a sales of 12 billion won last year. This company has been exploring overseas markets since 2000, not to mention of the local market. It is now penetrating into 40 countries including those in Asia, Europe, as well as the US. It set up a branch office in London. Com2us is now servicing a mobile sports game, the Korean League of Pro Baseball, and a Western style four-stick game, Backgammon via Vodafon Global, T Mobile, Orange and Telefonica to 21 countries in Europe, such as Com2us Corporation (www.Com2us.com), established in 1996 the UK, Germany, France, Spain, Greece and Egypt. This Korean and incorporated in 1998, started its mobile internet game service firm is scheduled to launch a tennis mobile game called “Andre first in Korea in 1999. They also developed a Java based game for Agasi” a bowling game entitled “Bowling2”. The company is the mobile phone which was a first in the world back in 2000. also scheduled to supply eight kinds of mobile games including So far, Com2us has serviced more than 70 kinds of mobile “Andre Agasi” through Verizon Wireless, AT&T Wireless and T games through three mobile service providers including SK Mobile U.S,A., sooner or later, in the US market. Com2us estab- Telecom, KTF and LG Telecom. Besides, it has strengthened its lished a branch office wihinte in Japan in March, 2002. The position as the global mobile game specialist supplying mobile company is now providing its mobile games via the Japanese games to more than 40 countries including Japan, China, Europe leading mobile service providers, KDDI, NTT within the and the US. Japanese market. In particular, it ranked 1st at the Java portal in Com2us has devoted itself to the belief in technology and Japan last year based on its technical capabilities of servicing development with its 50 game developers out of 90 of its total Java based downloading mobile games and being the first in the employees. The company’s representative mobile game is its world to do so. Its technology is accepted even in the Japanese original “Fish Bread Tycon 2”, which had recorded 700,000 market, a very strong mobile game country. The company has downloads in less than a month after its launching. been supplying its mobile games to China Telecom and China “Fish Bread Tycon2”, which was launched in April, 2003, is Unicom since 2003. the first local business simulation game, in which a street vendor ● URL: www.com2us.com makes “Fish Bread”, fish-shaped small breads to save money by ● Tel: 82-2-6292-6018 selling the breads, and, then getting another vendor to sell the breads with the saved money. Users can enjoy the game by pressing the numbers from 1 through 9 like dialing a mobile Web ENG Korea phone. Users can find an efficient method by themselves while they are playing the game with its convenient User Interface (UI). This ability within the game is what stimulates interest in the game. “Fish Bread Tycon2” is still popular with a record of more than 1 million downloads in January of 2004. By dint of the popularity, it made a new genre of the Tycon type and made the Tycon series games all the more popular. It is the first and original game of all the Tycon series games.

74 _ IT KOREA Journal Web ENG Korea (www.webengkr.com), established in June, Pocketspace 2000, is a specialized mobile game company with a capital of 510 million won and 45 employees. It was registered with LG Pocketspace (www.pock- Telecom as the contents provider (CP) in October of the same etspace.co.kr), established in year, and it supplied two kinds of mobile game contents. March, 2000, is a speciali In March, 2001, it was registered as LG Telecom’s official CP. zed mobile game company. In May of the same year, Web ENG Korea was awarded with the The company has focused “grand prix” in the category of digital contents with its “wire & on the development of only wireless linkage virtual avatar chatting” for Information & sports mobile games. Its Communication Minister’s trophy. It was supplied to NTT in major games are all about sports including baseball, football, cooperation with SK Telecom in July, and they shipped 12 kinds tennis, boxing and golf. The baseball game is among “long run” of the Virtual Machine (VM) associated contents to Japan in mobile games that has registered 600,000 users only in Korea. As August. the company devoted itself only to a single sector, sports, the Web ENG Korea supplied to KTF in January, 2002, and number of games launched by Pocketspace is less than other’s. shipped three kinds of its mobile games to the UK and Germany But, its product quality is accepted all over the world. through “Midlet” of Europe in June of the same year. Pocketspace games are serviced not only through local three This Korean firm succeeded in entering into the Chinese and mobile service providers, but also, through the KDDI of Japan. the US markets in February and March, 2003, respectively. The Korean firm’s games are serviced not only by a single sppots This year, 2004, the company also supplied three kinds of game, but under the title of “Pocket Space Zone” that combines mobile games to Telsta, a 1st tier mobile service provider of all the sports. Besides, the company’s games are serviced as an Australia. example via J-Phone, T-Mobile and Verizon in Japan, the US Web ENG Korea is famous for the “Blue Marble,” which was and Europe. launched in July, 2003, among its quite numerous mobile games In particular, PocketSpace, whose technical capabilities are rec- in service. ognized by overseas customers, is planning to set up corporate It is a mobile version of the master piece of a board game also companies in Japan, Germany and the US this year and it will be in entitled “Blue Marble.” Multi-users throw dice at the same time course of developing mobile games to KDDI’s platform, a main to move their horses and its users play business games of real business partner with the Japanese outlet in the first half of 2004. estate, hotel and tour targeting on major cities in the world. This ● URL: www.pocketspace.co.kr mobile game is far improved from the existing “Blue Marble.” ● Tel: 82-2-566-5010 Users can now buy items at stores to destroy other user’s buildings and villas, make other user’s horses fall into a sleep or coma and the players can increase the points on the surface of the Entaz other user’s die. Adding a variety of events, this popular game stimulates an user’s interest even more. Web ENG Korea is drawing attention with its latest 3D associated mobile games, “Paengdori’s Dream” and “Dance Factory.” Paengdori’s Dream” is a flying action game in which flying penguins in the sky and missile attacking effects are expressed in 3D and it displays excellent visual effects. “Dance Factory” is a rhythm game, in which users are pressing the buttons corresponding to directions of arrows Entaz (www.entaz.com), established in February, 2000, as a coming out according to the melody of the music like “DDR”, specialized mobile game company, serviced two kinds of its an arcade game. Users can enjoy the exciting rhythm of the mobile games through local three mobile service providers in dance music while watching a dancing girl’s rhythmic move- November of the same year of its founding. But, the company’s ments in 3D. main platform is the Brew and it supplied 36 kinds of Brew asso- ● URL: www.webengkr.com ciated mobile games to KTF. Entaz is expected to record a sales ● Tel: 82-2-576-6505 of 5billion won from KTF.

IT KOREA Journal _ 75 SPECIAL � 2. The Leading Local Mobile Game Companies

The football mobile game, “Gangster’s Football,” which was Eznego Corporation developed after the “2002 Korea-Japan World Cup Football Games” was designed for its users to play games in real time Eznego (www.ezn against each other using a network system. ego.com) established in Using lovely gangster characters, this game shows playing 2001 as a specialized football in a peculiar way and its user can enjoy the game in real mobile game time together with other users due to the use of the network developer, supplied I- system. Besides, a user can play the game watching a PC level application “Hockey” graphics and sounds because of the Brew system. After then, to the NTT of Japan in there were various Gangster series mobile games that had been December of the same launched by Entaz. year of its founding in ● URL: www.entaz.com Korea. The company ● Tel: 82-2-525-6017 was awarded special recognition at SK Telecom’s Mobile MjoyNet Multimedia Contents Contest Presentation n December, 2001, for its “Kill’em All” and this game company supplied the the SK-VM associated game, “Harry2” to SK Telecom. After then, Eznego continually supplied mobile games to SK Telecom. This game firm launched KTF’s multi pack associated game “Cartris” in March, 2002. At present, Eznego is providing many kinds of network games such as “Fishing,” “Poker” and MjoyNet (www.mjoynet.com), which was established in May, “Go-stop” under the “ZENIO” brand to SK Telecom and KTF. 2000, as a specialized mobile game company, succeeded in sup- Eznego’s “Brain Survivor” was awarded with an “Excellent plying a mobile game version of the then popular comic book the Game for This Month” by the Korean Ministry of Culture and “Fiery Veteran Warrior” to SK Telecom in November of the Tourism in June, 2003. same year of its founding, The game company gained its great ● URL: www.eznego.com popularity at that time. ● Tel: 82-2-3424-7772 “Fiery Veteran Warrior” is a Korean comic book series that opened a new genre of comic chivalry which was beyond the traditional genre of the usually serious and grave chivalry, attrac- Zio Interactive, Inc. tively popular among its readers. Users can meet lovely animated characters expressed in 3D that practice and fight one another in this mobile game version. This uniquely Korean game consists of its scenario and on-line modes. The scenario mode takes the adventure method, by which existing readers of “Fiery Veteran Warrior” can become characters in the story as they create an adventure. And, the on-line mode lets the characters raised in the scenario Zio Interactive (www.zio.co.kr), established in August, 1997, mode appear in the warriors’ world, the cyber space, in which the is a specialized mobile game developer that is now developing characters fight each other and make themselves known to other mobile games interfaced with various mobile phone platforms users. and PDAs. As this game became popular through SK Telecom, so it is Displaying the PDA game “Zio Golf,” which was interfaced to also serviced through KTF from June of 2001. WindowCE, first appeared in the world market in 1999. Zio ● URL: www.mjoynet.com became famous and it established a branch office in April, 2000, ● Tel: 82-2-3486-3910 because of the recognition of its development capabilities. In

76 _ IT KOREA Journal addition, the company succeeded in concluding an alliance screen, a first in the world, to escape a variety of obstacles and agreement with Intel in the PDA sector in 2001, as well as, monsters by pressing a single confirm button. It is serviced advancing into the Japanese market in September of the same through local 3 mobile service providers. year. The Korean game company started to supply its mobile Besides, GAMEVIL has recently shown-off a 3D associated games to the KDDI in September of last year. And, it succeeded game entitled “Hyper Battle 3D.” The company achieved a sales in supplying its mobile games to China Unicom in October of last of 4.5 billion won on the Korean local market last year and a sales year. of 200 million won in Hong Kong, Taiwan, Japan, the US and Zio Interactive has numerous licensed mobile games and Europe the same year. GAEMVIL set an export goal of 500 genuine games with its representative game being the famous million won. wrestling match entitled the “WWE Mobile Madness.” Its ● URL:www.gamevil.com platform is GVM, while interfaced with 40 polyphonic sounds ● Tel: 82-2-876-5252 (204) and 260,000 color pixels. This game, which is serviced through local three mobile service providers, implemented famous pro wrestlers’ various techniques within mobile phones. Besides, the M DREAM Co. company is providing its service for the 3D associated mobile game “3D Gunner.” ● URL: www.zio.co.kr ● Tel: 82-2-3218-8237

GAMEVIL Inc. M DREAM (www.m-dream.com), established in February of 2002, is a specialized game company. GAMEVIL (www.gamevil. The company develops mobile games, on-line games and PC com), established in January, games. M DREAM was designated as the excellent contents 2000, is a mobile game spe- provider (CP) in the category of mobile games by KTF in cialist that is now supplying December, 2001, and it was selected as the best partner in April, numerous mobile games to 2002 by SK Telecom. local three mobile service M DREAM, which supplies numerous mobile games to SK providers. Telecom and KTF, had developed and launched mobile versions The company completed of such arcade games as “Raccoon” and “Bogulbogul” to create a development of the strategic popular following. simulation game labeled The company launched a mobile version of the Japanese adult “Quasi Three Ancient King- comic book “Classmate,” of which the scenes in the game are doms” by using the LBS technology, which GAMEVIL first did reproduced nearly the same as the original scenes. All five female in Korea and it has been providing its services through SK characters in the game each has one’s framework of the story like Telecom since February. the comic book. It is serviced to those who are 18 years old or The basic scenario of this game is individuals battling against older. one another between towns with key positions not located on the M DREAM was designated as a promising export company Chinese continent but within SK Telecom’s base stations. in July, 2002, by the Small and Medium Business Administ Making an alliance among users via a network like on-line ration and it was awarded with a “2002 Venture Grand Prix” games, they attack others and defend themselves. Commerce, Industry and Energy Minister’s trophy sponsored A genuinely original mobile game called “Nom ( Male),” by the Korea Venture Business Association. which has survived for more than one year period “long run” and The company incorporated M DREAM China in launched in February, 2003, has continued to record a sales of November, of 2002, and it is aggressively developing more than 100 million won per month. overseas markets. This is the mobile game in which its user can play by turning ● URL: www.m-dream.com mobile handsets, thus breaking from the fixed idea of the LCD ● Tel: 82-2-543-0169

IT KOREA Journal _ 77 SPECIAL � 2. The Leading Local Mobile Game Companies

E3net Co., Ltd. in connection with existing network service providers. As it positively participated in the Government’s task project, it was designated as an “Excellent New Technology Company” by the Korean Ministry of Information and Communication. And, it was designated as a promising export company by the Small and Medium Business Administration. Besides, the company was awarded with the “Preliminary Support for Excellent Game” given by the Korea Game E3net (www.e3net.co.kr), established in May, 2000 as a spe- Development Institute (KGDI) and with “Excellent Game for this cialized mobile game developer, supplied its first mobile game to Month” by the Ministry of Culture and Tourism. KTF in December of 2002. “Stacking Coins” launched in Its representative mobile game is a sports game entitled February, 2003, was a great success. “Basketball” that interfaces with 4Gray and 256 colors. This This game is a “long run” mobile game serviced through three mobile game with convenient interfacing has a fast scrolling and local mobile service providers that has survived for more than a giant character’s realistic action. one year. This is a game in which its users stack coins. The more This company is planning to export mobile game contents to coins that are stacked, the higher the number of points are Europe, U.S.A., Israel and China at present. obtained. E3Net signed the contract with Nation Tips of Hong ● URL: www.norigaesoft.com Kong in April of last year as its supplier to China, plus, E3net ● Tel: 82-2-712-3915 supplies its wares to China Mobile through M. Net, NEC’s subsidiary company. E3net concluded a supply contract with a Taiwanese contents provider (CP) in August of the same year Entelligent and it shipped its material to Hong Kong and the Philippines. Besides, the company made contracts with “Play Station”, Entelligent(www.entel- “XBOX” and “Success” of Japan in September of the same year. ligent. co.kr), established in This game is serviced via Vodafon and the NTT of Japan, as September, 2001, has de- well. veloped and supplied 11 E3net has supplied its “Stacking Coins” to China Telecom, the kinds of mobile games to largest mobile service provider in Taiwan since February of this SK Telecom since March, year, 2004. 2002. ● URL: www.e3net.co.kr Entelligent Inc. The repre- ● Tel : 82-2-565-1800 sentative mobile game of this company, which was awarded with a “Korea Norigae Soft Co., Ltd. Game Grand Prix” consecutively for the past two years Norigae Soft (www.nori- (2002 and 2003), is the gaesoft.com) started business “Heroes of Three Kingdoms on November 19, 2000, as a Unlimited War.” specialized wireless internet This game is an action RPG game associated with Network solution and mobile game and the game has a record of being ranked 1st for six consec- developer, and it was incorpo- utive weeks (from end of December, 2003 to end of January, rated in June, 2001. 2004) by SK Telecom. It is ranked 2nd now with an accumu- Norigae is now supplying lated 300,000 downloads. The platform of this game is the its base business VM (Virtual GVM. Mobile phones with 256 colors or so can be used for this Machine) game titles to local three mobile service providers game. including SK Telecom. ● URL: www.entelligent.co.kr Norigae Soft is now developing many types of mobile games ● Tel: 82-2-928-9582

78 _ IT KOREA Journal SPECIAL � 3. Interview POCKETSPACE’s president Kim Do-sik

POCKETSPACE’s president Kim Do-sik Pocketspace

POCKETSPACE (www.pocketspace.co.kr), the mobile game specialist, has been developing mobile games and providing service through mobile service providers in Korea and abroad. It is remarkable that the company has been concentrating on “sports” only. It recorded the sales of KW2 billion in 2003. According to the company’s president Kim Do-sik, POCKETSPACE ranked the middle among the top 30 companies, which takes in about 80% share of the total annual sales of local 500 mobile game companies. The company was established in March of 1999 as one of the front runners for the mobile game companies. Though it was incorporated in March of 2000, it follows Com2us, the first mobile game company considering the year of its establishment being 1999.

“Mobile games need specialty, too”

im Do-sik, the president of POCKETSPACE, passes of video game machines left in the corner of his office. He has K through “A man who was born for the games.” My never lost a game. I realized that he was a veteran game player curiosity about him disappeared upon calling upon him for an among the industry’s CEOs. interview. More than 40 software items for the PS2 and the Since childhood, playing such games was his hobby and his XBOX at a glance were densely piled up in his office. Taking a specialty. Kim Do-sik, born in 1973, started his business in 1999, closer look at them, I realized that those software items were not when he was 28 years old. His business career is only that he local games, but original Japanese games. I was very much inter- worked for an internet related company as the team manager of ested in those games and when I expressed my envy to him, he business strategy for one year. He had no reason to delay starting said, with pride, that he had ten times as many game software his own business because he believed he was destined to become items at his home. He said he felt relieved to buy one when a new the business man of games. The only reason he had to be with the game software came out. And, he continued, “ Since I am not free company for one year is that he had to wait for Lee Joon-hee’s these days, I cannot enjoy playing games, and he pointed a stack employment contract, the present head in charge of development

IT KOREA Journal _ 79 SPECIAL � 3. Interview POCKETSPACE’s president Kim Do-sik

of the games at POCKETSPACE, to expire, because Kim himself always plays the new games himself upon their being developed is not an engineer. before launching. If he concludes that some of them are not satisfactory to him, he does not hesitate to abandon them. It is his Venture businesses should give up their “short business mind-set that if a game is entertaining to him, then it sight” and concentrate on a sound target market could entertain others. Kim Do-sik first wanted to start an on-line game business. However, because it required a lot of investment money and man- It is a venture business to work with good people. power, he decided to do a mobile business to save money for it. Owing to it, the number of POCKETSPACE’s new games is Now, four years later, he thinks that it was right for him to have less than half of that of other’s. But, the product’s quality is well started a mobile business. accepted well all over the world. He believes that because mobile handsets’ performance is POCKETSPACE’s mobile games are serviced not only noticeably developing day by day, mobile games will surpass all through three local mobile service providers, but also through the other games sooner or later. At present, on-line and video games KDDI of Japan. Its games are serviced not by a single sports excel in quality and quantity. Yet, the boundary between wire and game, but under the title of “Pocketsspace Zone” which combines wireless will not always exist and mobile handsets’ performance all sports. Besides, the company’s games are serviced as an will not fall behind those of video game machines or desktop PCs example via J-Phone, T-Mobile and Verizon in Japan, the US and in the near future. Europe. The mobile games, by which users can play games at any time He is confident that though “sports” mobile games are and at any place different from where the games are located at developed a lot by game companies abroad, none of them have desk or indoor, will surpass them soon. And so, Kim Do-sik said closely competed with his firm yet. Over four years of his steady that he would definitely create a mobile game business after 5 or efforts of sticking to “sports” games have brought such a result. 10 years. The company’s slogan this year is “Global Market.” Concerning the current market situation, in which 500 mobile POCKETSPACE is now setting up corporate companies in game companies take part, he said, “It is because of their “Short Japan, Germany and the US, and it has organized a business Sight,” the local venture companies face their major problems.” team, exclusively for the global market. And, POCKETSPACE is He experienced quite a few companies that forget their business on course in developing mobile games for KDDI’s platform, a philosophy to go astray due to their “Short Sight,” by which they main business partner for POCKETSPACE in the first half of this decide easily to venture into other business. Therefore, he, from year, 2004. Later, it will develop such games again for the local the beginning, has devoted himself to only “sports” among a Korean mobile service providers. variety of mobile games. He has prefixed “Pocket” to all his These days, Kim Do-sik often plays basketball with his mobile games. It may remind one of the Japanese “Pocket employees in the gymnasium near the company after work. Monster,” but it does not matter at all. And, he named “Pocket -” Sometimes, he plays football with his close friends. He has, also, for his company to emphasize that the company is a specialized taken part in the district game company for mobile handsets, which users can carry by society of Bundang, a new town near Seoul, as a baseball putting the games into their pockets. player. He said, “POCKSPACE has never lost a game at the The company’s leading games include baseball, basketball, football matches with Web ENG Korea. ” Regarding his football, tennis, boxing, golf, etc. “Baseball” was very popular, philosophy on life, he replied, “Endless Change.” Since CEOs of with 600,000 venture companies usually have to face a lot of difficulties, it is users in Korea. Regarding the question to why he sticks to the essential that they should be capable of dealing with the diffi- sports games despite it may lose female users, he said, “Because I culties. He feels satisfied in encountering users on the street who like the sports, and I can do them well.” are enjoying the mobile games of POCKETSPACE. He ended He stressed, “The life span of mobile games is said to be rather with, “I hope I can devote my lifetime to my favorite field while short, because the games follow ever changing fashion tastes and working happily with my good employees.” meet a current social demand.” So, he does not make licensed games of famous movies or TV dramas. He made it a rule to show off simple, but not boring, and high quality games. He ocketspace 80 _ IT KOREA Journal P Market Report｜2003 Business Results of Domestic Mobile Industry

1. Mobile Phone Services

Total Subscribers- 33.59 Million, Over 70% of Total Population

SKT took 87.5% of net new subscribers in 2003 while LGT and KTF maintained their status quo

As of the end of 2003, the total he net increase of new subscribers in 2003 was reduced to 40% of that of pre- mobile phone subscribers T vious year, indicating that the domestic market almost reached its saturation point. The number of net increase in 2002 reached 3.297 million while 1.249 million in recorded an increase of 1.25 2003, which indicated that the net increase of new subscribers in 2004 would not million from 32.342 million in surpass 1 million. 2002 to 33.592 million. 2003, together with the reduction of the net increase of new subscribers over the A milestone in the history of the previous year, the number of new subscriptions and cancellations were also reduced. Korean domestic mobile com- The new subscribers reached 10.049 million in 2001 and 10.834 million in 2002 and munication industry was set by dropped to 7.725 million in 2003. The number of cancellations were recorded at 7.821 the number of subscribers million in 2001, 7.537 in 2002, but 6.476 million in 2003. These statistics indicate that accounting for more than 70% of the domestic mobile phone service market is saturated, and, thus, ready to go into its stabilized phase. It is uncertain that the trend of the market’s stabilization will be con- the total population. tinued in 2004. Recently, the phone number migration system was introduced, which When the number of subscribers removed the barrier for subscribers to change their service providers. It is highly pos- passed over the 60% of the total sible that the cancellation cases will rapidly be increased. population in October, 2001, the With the introduction of the phone number migration system, the fierce competition domestic mobile communication among service providers is expected to target the subscribers of other service service providers said the market providers. This action by the service providers will likely cause the increase of cancel- was saturated, and in two years, lations and new subscriptions. For example, SK Telecom recorded an average of the percentage surpassed 70% 216,000 cases of cancellations a month in 2002. The company, however, said that as of January 15, 2003, 180,000 subscribers left the company, and total cancellations which only a few countries reached 229,000, surpassing the average cases of the previous year. In 2004, the including Singapore recorded. increase of new subscriptions and cancellations is likely to be inevitable in the Korean domestic mobile communication service market. Edited by mobilecom (www.mobilcomi.com)

SKT took 87.5% of the net increase of subscribers in 2003 SK Telecom overwhelmingly led the market in 2003. Out of 1.25 million of net increase of subscribers, SKT took 1.094 million(87.5%). In 2002, the company also dominated the market, taking 61.9% of the net increase of subscribers. The KTF and LG Telecom took 109,000(8.7%) and 47,000(3.7%) of the new subscribers counted in the net increase respectively. KTF and LG Telecom seeing the net

IT KOREA Journal _ 81 decrease of subscribers for five and seven consecutive months the subscribers using color display handsets reached the 5.953 respectively had to be satisfied with the fact that their sub- million mark. Since KTF recorded a higher rate of color display scribers were not reduced in that year. handset users(30.2%) than SK Telecom(24.8%) at the end of The difference in net increase of new subscribers between 2002, the former outnumbered the latter until the end of SK Telecom and the two other PCS service providers was September 2003. But KTF passed on its place to SK Telecom due mainly caused by cancellations rather than the gaining of new to the poor business results in the net increase of new subscribers. subscriptions. In 2003, SK Telecom received 3.688 million SK Telecom and KTF surpassed the 50% mark of color (47.7%) new subscribers, KTF 2.618 million(33.9%) and LG display handset using rates of their subscribers in September, Telecomm 1.419 million(18.4%). The shares of new sub- but LG Telecom followed in November, 2003. Until the end of scribers did not show any overwhelming difference. June, LG Telecom maintained about 30% of the color display Considering SK Telecomm experienced the decrease of 6% handset using rates of its subscribers. Since July, when the from the 53.2% of the market share in 2002, the numbers of company launched a new color handset under the brand of ‘Can new subscribers of the three companies were well balanced. You Phone,’ the rate began to rapidly increase. In the first half, However, SK Telecomm saw some 2.595 million subscribers the subscribers using color display handsets showed an increase leave while respectively KTF and LG Telecomm saw 2.509 of 529,000, and 767,000 within the second half. Out of 1.296 million and 1.372 million respectively. SK Telecom recorded an million of the net increase of color display handset users in average of 1.2% of the monthly cancellation rate while KTF and 2003, 60% was achieved in the second half of that year. LG Telecomm recorded 2.0% and 2.4%. SK Telecomm never The handsets with a color display emerged as a leading saw a monthly cancellation rate higher than 2%. In February and product in the domestic Korean mobile handset market. As of December, 2003, the company saw the monthly cancellation rate the end of 2002, only 28.4% of total mobile communication of less than 1%. The difference of cancellation rates resulted in service subscribers used color display handsets. In 2003, 9.996 the overwhelming market share of SK Telecom. million subscribers changed their handset into those with color display. The color display handset is the key factor to expand Handsets with color display account for 57% of the high performance multimedia services. The fact that more total handsets used in Korea than half of mobile communication service subscribers use In 2003, SK Telecom achieved a remarkable business record color display handsets means that the foothold to expand the in every quarter. In January, the cdma2000 1X subscribers sur- wireless Internet service is has been prepared. passed 10 million. In the second quarter, the cdma2000 1xEV- DO subscribers surpassed 1 million. It was August 9 in the third The cdma 1X handsets used by 73.9% of sub- quarter that high-end multimedia service, ‘June’ subscribers, scribers, the Wireless Internet market is surpassed 1 million. Color display handset users surpassed 50% expanding of its subscribers in September, and 10 million in November. In 2003, subscribers using the high-end handsets beyond the SK Telecom overwhelmed its two competitors in both quantity cdma 1x version reached 24.827 million, recording an increase and quality of subscribers. of 8.289 million from the recorded 16.538 million of the pre- In December, SK Telecom announced that 10.57 million vious year. The cdma 1x handset using rate, also, increased subscribers of the company used handsets with a color display, rapidly from 51.1% in 2002 to 73.9% in 2003. Only 28.5% of accounting for 57.7% of total subscribers of the company. The subscribers used the IS-95A/B handsets. percentage of 57.7 was the highest one among three domestic In 2003, the cdma 1x handsets with a color display emerged mobile communication service providers. Since the company as the mainstream of the domestic mobile communication had far more subscribers than the other two companies, it was service market. The wide spread of high-end handsets is pre- no wonder that SK Telecom was the first company in which the dicted to result in the rapid growth of the domestic wireless subscribers using color display handsets surpassed 10 million. Internet market in 2004 and 2005. Rather than the actual numbers, the highest percentage of color By service provider, 16.444 million subscribers(78.8%) out display handset users was more meaningful. of the total subscribers of SK Telecom, 7.472 million(71.6%) of KTF fiercely competed for the highest percentage of color KTF, and 2.93 million(60.6%) were found to possess handsets display users and ended the year with 57%. As of the end of 2003, beyond the cdma 1x version. Comparing the fact more than 1/3

82 _ IT KOREA Journal of the total subscribers of KTF and LG Telecom used 2G ARPU, 7,189 won higher than that of the cdma 1x subscribers. handsets, SK Telecom lowered the percentage to about the level The voice ARPU of the cdma EV-DO was 37,476 won which of 1/5. As of the end of 2002, the subscribers with cdma 1x was 7,368 won higher than that of cdma 1x subscribers. handset accounted for 57.7%, about 10% higher than 47.1% of The cdma EV-DO subscribers with high-end handsets show KTF. The difference between the two companies was narrowed a tendency of using far more data and voice call services than as of the end of 2003. LG Telecom also raised their percentage others. Compared with 2G subscribers showing the ARPU of of subscribers using the cdma 1x handsets from 36.3% in 2002 20,891 won in voice call and 1,151 won in data service, the to the level of 60%. ARPU of cdma 1x subscribers are more than twice as higher. The subscribers of ‘June’ and ‘fimm,’ the representative Subscribers using the cdmaEV-DO accounted for high-end multimedia services of SK Telecom and KTF were 13%, increased by 24 times over the previous year totaled to be 3 million as of the end of 2003. The former The subscribers of the cdma EV-DO, the latest synchronous secured 1.678 million and the latter 1.33 million. As of the end commercial service, accounted for 13% of the total domestic of 2002, the ‘fimm’ service recorded 101,000 subscribers while mobile communication service subscribers. The cdma EV-DO ‘June’ 66,000. However, due to the poor result of the net subscribers reached 4.379 million in 2003, recording a increase of new subscribers, KTF was behind SK Telecom in remarkable increase of 4.207 million from 172,000 in 2002. the number of cdma EV-DO subscribers in 2003. SK Telecom The growth rate was 2400%. first celebrated the passing of over 1 million subscribers of the In the field of the cdma EV-DO, SK Telecom, also over- ‘June’ on August 9, 2003. As of the end of 2003, the ‘fimm’ whelmed its two competitors. As of the end of December, 2003, subscribers accounted for 12.7% of the total subscribers of SK Telecom had 3.562 million subscribers, showing an KTF, while the ‘June’ was 9.1% of those for SK Telecom. increase of 3.428 million over the previous year and taking 81.3% of the cdma EV-DO market. KTF recorded 816,000 The largest matter of concern is whether or not SK cdma EV-DO subscribers, making an increase of 778,000 from Telecom can keep its market share in 2004 38,000 of the previous year. In 2003, SK Telecom overwhelmed the domestic Korean The cdma EV-DO subscribers of SK Telecom and KTF mobile communication service market. Yet, with the intro- accounted for 20% and 7.8% respectively. The cdma EV-DO ser- duction of the phone number migration system, SK Telecom vices result in the high ARPU. The more subscribers use the cdma has to be alert to keep its subscribers from moving to other EV-DO services, the higher income the service providers achieve. service providers. According to the data from SK Telecom, the subscribers using The phone number migration system was introduced sequen- the high-end handsets beyond the cdma 1x recorded 6.978 won tially with a six-month term to the subscribers of SK Telecom of the average ARPU. Excluding the cdma EV-DO service sub- on January 1, 2004, KTF on June 1 and LG Telecom on scribers, the ARPU decreased by 1,516 won to 5,462 won. January 1, 2005, which is likely to provide even more diffi- Considering that the cdma EV-DO subscribers reached 1.433 culties for SK Telecom keeping its market share. million which accounted for only about 10% of total sub- During the first 15 days of January 2004, 142,000 were scribers using high-end handsets(12.375 million) as of the end accepted as new subscribers, but total cancellation cases of June 2003, the above described difference of the ARPU indi- reached 229,000 cases, which included 180,000 cases that cates the high ARPU from the cdma EV-DO subscribers. migrated to other service providers. If the situation goes on, SK According to the data from KTF in the third quarter of 2003, Telecom is expected to record the net decrease of its subscribers the cdma EV-DO service subscribers recorded 10,524 won of for the first time in 2 years and 6 months since June 2001.

Mobile communication subscribers of the three service providers in 2003 (unit:1,000 person)

Dec Jan Feb Mar April May June July Aug Sep Oct Nov Dec Sum

Total number 47,640 47,663 47,687 47,711 47,735 47,759 47,782 47,806 47,830 47,854 47,878 47,901 47,925 47,925

Subscribers 32,342 32,417 32,631 32,859 32,992 33,066 33,169 33157 33155 33,208 33,283 33,445 33,592 33,592

Provide Rate 67.9% 68.0% 68.4% 68.9% 69.1% 69.2% 69.4% 69.4% 69.3% 69.4% 69.5% 69.8% 70.1% 70.1%

IT KOREA Journal _ 83 Market Report｜2003 Business Results of Domestic Mobile Industry

2. Wireless Internet

The Korean domestic wireless Internet market grew to the size of 2 trillion won, recording an increase of 60% over the previous year.

Excluding the SMS, net sales revenue reached 1.4 trillion won… The Nate, a wireless Internet portal site, recorded 100 billion won of the monthly sales revenue.

In 2003, the Korean domestic he Korean domestic wireless Internet market was lingering at the level of 1.2 trillion wireless Internet market was T won in 2002 and it made an increase of 60% in 2003 over the previous year which increased by 60% over the amounted to the level of 2 trillion won. As of the end of the third quarter of 2003, the accumulated sales revenue of the wireless Internet hit 1,399.2 billion surpass the total sales previous year to pass over the amount of the previous year. As of the end of November 2003, the total sales revenue of 2 trillion won mark in total sales the three mobile communication service providers amounted to 1,789.1 billion won. revenue. The VOD services The aforementioned market made a remarkable growth in the first quarter, recording represented by the brands 418.2 billion won of the total sales revenue. Since then the market grew by 50 billion won ‘June’ and ‘fimm’ led the in the second and third quarters with 469.4 billion won and 511.5 billion won of the total growth. In addition, the mobile sales respectively, and the in the fourth quarter, the market reached the level of 600 billion games and other mobile won, recording 10 billion won of increase from the previous quarter. Even the monthly contents, also, made a signi- sales revenues in October and November reached the 390 billion level to approach 418.2 billion won in the sales revenue of the first quarter. ficant contribution to the No one expected that the total sales of wireless Internet would achieve the level of 2 growth. In particular, the mobile trillion won. The market was generally predicted to reach 1.9~1.95 trillion won. But the contents recorded the total soaring growth in the fourth quarter enabled the market size to surpass the 2 trillion won sales amount of 400 billion won level. The remarkable growth of the fourth quarter was led by SK Telecom. to be one of the best supplementary services, leading the NATE, a wireless Internet Portal of SK Telecom, is on the threshold of increase of sales revenue of 100 billion won in monthly sales revenue service providers as a lucrative In April 2003, SK Telecom recorded 100.4 billion won of monthly sales within the wireless Internet field, which was increased to 128 and 141.5 billion won in October and service following the SMS. November respectively. In particular, the growth was achieved by the NATE-related wireless Internet excluding the SMS. SK Telecom achieved 90.1 billion won in the monthly sales of the NATE which increased by more than 10 billion over the previous month(79.8 billion won in September). Considering the trend of growth, it was forecast that the 100 billion won level of monthly sales revenue in the net wireless Internet sector, excluding the SMS, would be

84 _ IT KOREA Journal opened sooner or later. Sales revenue of wireless Internet by quarter The market size of 2 trillion won was not formed by only the 7,000 wireless Internet because a considerable amount of sales 380(6.3%) 6,000 revenue of the SMS was included in those total numbers. The 370(7.3%) 5,000 371(7.9%) 1,450(24.0%) sales revenue of the SMS accounted for about 30% of that of 336(8.0%) 4,000 1,316(26.0%) 1,267(27.0%) the wireless Internet for the three service providers(SK Telecom 1,196(28.6%) 29%, the KTF 27% and LG Telecom 28%). It is considered rea- 3,000 2,000 sonable that the real wireless Internet market reached the level 2,650(63.4%) 3,057(65.1%) 3,383(66.7%) 4,200(69.7%) of 1.4 trillion won. 1,000 The sales revenue of the SMS accounted for about a half of 0 1 Quarter 2 Quarter 3 Quarter 4 Quarter the wireless Internet sales revenue in 2001(SK Telecom 49.2% and KTF 47.7%), but less than 1/3 in 2003, which indicated the LG Telecom KTF SK Telecom increase of access to wireless Internet with the expanding supply of high-end handsets including those with color displays. than those of the mobile communication service subscribers The increase of the weight of the wireless Internet in the (SK Telecom 54.5%, KTF 31.1% and LG Telecom 14.4%), but ARPU also indicated the growth of the Korean domestic LG Telecom’s was lower. wireless Internet market. In the case of SK Telecom, the The weakness of LG Telecom was caused by the fact that the wireless Internet accounted for only 10% of the ARPU in 2002 percentage of subscribers using high-end handsets beyond the that grew to 17.3% in November 2003. It accounted for 19.6% cdma 1x was lower than that of the other two competitors. of the net ARPU, excluding the subscription and access fees. As described before, it was September, 2003 that SK The wireless Internet accounted for 14.1% of the ARPU of Telecom and KTF experienced the percentage of subscribers KTF. Excluding the subscription and access fees from the using handsets with color displays crossed over the 50% level ARPU, it accounted for 18% as of November 2003. Compared mark, but LG Telecom didn’t reach it until November, 2003. In with the same period of the previous year, the ARPU of the the case of handsets capable of high-speed download, the gap wireless Internet in November reached 5,464 won, showing an was wider. SK Telecom recorded more than 50% of the sub- increase of 992 won from the 4,472 won(accounting for 11.4% scribers with handsets beyond the cdma 1x version as of the end of the total sales revenue) recorded in November, 2002. of 2002 and a 60% level in February of 2003. But, LG Telecom Compared with the total sales revenue, the percentage of sales recorded 50% in August, 2003 and 60% in December, 2003. revenue of the wireless Internet grew by 2.7%. Compared with KTF reaching 50% in February, 2003 and 60% in June, 2003, LG telecom lagged behind. LG Telecom recorded weak business results in the An analyst said that the lack of strategy on wireless Internet high-end handsets area, which was led by the was one of the causes of weak business results in the field. He wireless Internet businesses. continued that LG Telecom did benchmarking to catch up with The wireless Internet content formed about a 400 billion won the other two competitors without its own policies and vision, market in 2003, accounting for about 20% of the total wireless which led to the frequent trial and errors. At the end of 2002, Internet markets. SK Telecom took 230 billion won(58%), KTF 120 LG Telecom revised the whole menu through the bench- billion won(30.3%) and LG Telecom 46.5 billion won(11.7%). marking, but the company continuously changed the menu only SK Telecom recorded a higher market share in this market to bring confusion to subscribers. sales revenue of wireless Internet by service provider (unit:billion won)

Dec Jan Feb Mar April May June July Aug Sep Oct Nov Dec Sum

SK Telecom 957 895 820 935 1,005 1,042 1,010 1,092 1,103 1,188 1,280 1,415 - 11,785

KTF 430 410 371 415 418 422 426 433 463 465 463 486 - 4,773

LG Telecom 116 115 104 117 123 129 119 122 122 126 126 131 - 1,334

Total 1,503 1,420 1,295 1,467 1,546 1,593 1,555 1,647 1,688 1,779 1,869 2,032 - 17,89

IT KOREA Journal _ 85 Market Report｜2003 Business Results of Domestic Mobile Industry

3. Mobile Handsets

Domestic manufacturers supplied 120 million handsets in 2003

Samsung supplied 55.7 million, LG 26 million, recording the largest volume so far

The Korean domestic mobile he total quantity sold in 2003 was less than the 14.76 million handsets sold in 2000 handset manufacturers showed T and the 14.02 million handsets sold in 2001. Some said the newly launched high-end a clear contrast among them- models created demands. Yet, something was wrong in the domestic mobile handset market. selves in 2003. The two majors, Considering the two year change cycle of mobile handsets, the basic demands for substi- Samsung and LG, were busy tution were estimated to be 14 million. Adding the 2 million demanded sets created by the renewing their highest business new high-end model, the total demands should have reached at least 16 million handsets in 2003. But, only less than 14 million handsets were sold in the domestic market in 2003. record in every quarter while An analyst said the poor business results were a result of the burdensome high prices the small-sized venture com- and the rapidly changing roadmap of handset area. At present, the handsets from Samsung panies made their all-out effort are sold at prices of 500,000 to 600,000 won, which are similar to the prices of refriger- to survive. ators. Handsets with build-in digital cameras are usually priced at the 400,000 won level. In 2003, 13.89 million handsets To the subscribers in their twenties and thirties, who in particular prefer handsets with a were supplied to the Korean built-in digital camera, the prices at the 400,000 won level make them hesitate on whether domestic market. It was com- to change or not, which was thought to have an influence on the domestic market. paratively a poor result, com- The domestic mobile handset market entered the mega pixel age. It is predicted that handsets with a built-in digital camera of 2 million pixels would be launched in the second pared with the 16 million or third quarter and 3 million pixels at the end of 2004. The rapid changes of the handset handsets supplied in 2002. roadmap also make users hesitate in changing their handsets, expecting another new In fact, a lot of expectation was version with better specifications. This factor, also, had a negative influence on the placed on a market where its domestic handset market in 2003. In addition, the handset manufacturers were reluctant to users began to change their supply their products to SK Telecom because of the serious situation of SK Networks, the handsets with new ones. mother company, caused by the improper practices in the management, which also worked as a discouraging factor in the handset market in 2003.

The ‘big 3’ held a total of 86% of the market share In 2003, the domestic ‘big 3,’ Samsung Electronics, LG Electronics and Curitel took 86% of the Korean domestic mobile handset market, and Motorola, SK Teletech and the KTFT held 10% or so. A total of 96% or so of the domestic market was dominated by the six companies in 2003. Sewon Telecom and Telson, OEM and ODM companies, had no real chance to take their share in any meaningful amount. Even the VK, which had focused on overseas markets, launched the VK100 in December, saying that the model was the highest-end handset among the same grade

86 _ IT KOREA Journal ones. This new model had little influence on the domestic are expected to launch additional models with built-in mega market in 2003. pixel digital cameras. In the second quarter, they are likely to In conclusion, six or seven companies were competing with compete with the time to launch additional models with built-in the Korean domestic market and this would continue until the digital cameras of 2 million pixels. full-scale W-CDMA market was formed. In the Korean domestic market of handsets with a built-in In 2003, Samsung Electronics took the share of 53% in the digital camera, Samsung Electronics recorded the lion’s share domestic Korean mobile handset market, supplying 7.385 of the market at 58%, supplying 4.19 million sets. Curitel million handsets. The company made efforts to raise their emerging as a strong competitor to Samsung took 15% of that market share to 55% but failed because of the advent of Curitel. market supplying 1.07 million sets. Curitel began to effectively LG Electronics recorded their share at 22%, supplying a total focus on the domestic market with its new models having built- of 3.1 million or so handsets, which was evaluated as the in cameras. LG Electronics took only 8% of the marketplace average result. The company, however, displayed its reserved until the third quarter, supplying 600,000 handsets. The strength, by selling more than 200,000 handsets of 130/1300 company showed its potential starting in September of that year models, newly launched handsets which came with such high- by its launching new models. Since then, the company has sup- end specifications as the installation of additional memory chips plied 100,000 sets a month. In 2004, LG Electronics is pre- and application processors. dicted to fiercely compete with Curitel. Curitel had 11% by supplying 1.64 million handsets. It was a big jump for the company that once only had recorded a one digit Domestic mobile handset manufacturers supplied market share. The company greatly promoted its brands and built 120 million sets in 2003 up a strong foothold in the domestic market through the compe- The Korean domestic mobile handset manufacturers tition on the development of such high-end handsets as those achieved abundant business results in 2003, supplying a total of with a built-in mega pixel digital camera and stereo speakers 120 million sets, excluding the 30 million sets of Nokia TMC. The Korean mobile phone manufacturers took in about 25% of Handsets with a built-in digital camera account for the global market. Among the domestic manufacturers, higher than 50% of the market Samsung Electronics, in particular, achieved remarkable results, In 2003, the handsets with a built-in digital camera became supplying 55.7 million sets. The company supplied 15 million the mainstream of the market, accounting for 51% of the total sets in the third and fourth quarter. In 2004, the company is handsets in Korea. In particular, a total of 75% sold in the 4th forecast to supply at least 65 million sets. quarter of 2003 were those handsets with a built-in digital LG Electronics, also, recorded their best results in the firm’s camera. In the first quarter of 2004, the handsets with a built-in mobile handset business history. In 2002, the company supplied digital camera were predicted to account for higher than 80% of 16 million sets and was expected to supply 25 million sets in the newly sold handsets. 2003. As of the end of 2003, the company recorded 26 million In particular, since October, 2003, an increasing number of sets of supply to be the second largest suppliers in the Korean handsets with a built-in mega pixel digital camera have been domestic market and fifth in the global market. launched becoming a mainstream product in the Korean LG shipped 6 million sets of the GSM mobile handsets for domestic market. Samsung Electronics and Curitel competi- the first time in 2003 so to prepare a foothold allowing for their tively launched handsets with a built-in mega pixel digital “take-off” in the GSM handset markets. Considering 10 million camera in October, 2003. At the end of the year, LG Electronics GSM handset in shipments, the company is targeting a total also began to supply those types of handsets. In the first quarter supply of 35 million mobile handsets in 2004, thus becoming of 2004, most of the domestic mobile handset manufacturers the fourth largest supplier in the global market.

Major manufacturers’ supply of mobile handsets in the Korean domestic market in 2003 (unit:1,000)

2003 Jan Feb Mar April May June July Aug Sep Oct Nov Dec Sum

Total Supply 1,232 1,024 880 898 1,155 1,137 1,114 1,172 1,318 1,362 1,292 1,306 13,890

Camera Phone 296 301 281 316 435 487 570 622 868 989 966 1,000 7,131

IT KOREA Journal _ 87 Company Interview｜Mointek

The Leader of Digital Video Solution

The company that developed the video editor for mobile phones is now nurturing the dream of becoming the world-best “multimedia communications company”

Dr. Kim Jeong-hun, along with other experts, founded Mointek (www.mointek.com) when he was a researcher at the Electronics and Telecommunications Research Institute (ETRI). The company has developed a host of technologies —the “multimedia authoring,” the “CDMA/IMT-2000 diagnosis and testing,” and the original MPEG-4/7 technologies. Mointek, also, succeeded in the commercial development of the “Digital Video Authoring Software” technology, as well as, being a leader in the digital video field, thanks to its content-based image retrieval (CBIR) technology.

Reported by Shim Woo-sung ([email protected])

resident Kim is an engineer who worked company is continuously developing new P at the ETRI for 15 years. A specialist in technologies and products. the computer and communications fields, he established Mointek in June of 1999, when Simultaneous pursuit of “research” Korea was facing a financial crisis. His and “survival” decision was a bold one, he could only rely Like most engineers, President Kim had upon technological power. Located in technological acumen, but he was not Daedeok Valley, Mointek is an R & D venture familiar with the business world and its prac- company that develops various future-oriented � Qsign studio tices. Since its foundation, the company has technologies along with the ETRI. concentrated too much on advanced tech- Initially, lacking capital but confident of its nology development with the ETRI and the technological power thanks to the firm’s company has suffered from insufficient gathering of high quality engineers, Mointek funding for five years. Venture companies in now boasts many original technologies in the the Daedeok Valley, like Mointek, boast areas of video encryption, video indexing, superb brain power and their engineers all image retrieval, video summary generation, dream about high-tech products that do not MPEG editing, ITS Dedicated Short Range even exist. To enter the realistic world of the Communications (DSRC) and CDMA diag- business market, however, they have to deal nosis and monitoring. Never stopping, the � Digital Board with the hard realities of that market, espe-

88 _ IT KOREA Journal Mointek

“Qsign Studio,” a video editing software, is the result of Mointek’s transformation. This ambitious product, intended for people who do not have professional editing skills, allows them to do video editing with ease.

� President Kim Jeong-hun

cially, when it comes to funding. Mointek is now changing. board), which was released immediately before Qsign Studio, “Somewhat belatedly, we realized that developing advanced is an e-learning software for presentation and authoring edu- technology does not guarantee a company’s survival,” says cational contents. The software facilitates presentation, President Kim. Recently, thanks to government support, lecture, and the generation of various contents. Because of its Mointek went through a marketing consulting program. high pricing and immaturity in the market place, the item’s President Kim has renewed his resolution which is as follows: sales did not soar despite the high attention it captured. “Before, we’ve vaguely thought that technology will give us a More recently, Mointek released a solution for mobile bright future someday. Now, we have abandoned ‘engineers’ phones that allows for video editing and it is contacting mobile pride’ and technologies that do not attract consumers’ communications service providers. Unexpectedly, the solution attention.” Therefore, Mointek, is now going after technologies is much more than simple editing software; it is equipped with that can be commercialized in 10 to 20 years and the functions comparable to those for desktop PC’s. Moinstek company is entering the existing market for survival’s sake. hopes that mobile phones installed with their developed “Qsign Studio,” a video editing software, is the result of software will become very popular with consumers. Mointek’s transformation. This ambitious product, intended for With the ETRI, Mointek is also very busy developing hotly people who do not have professional editing skills, allows pursued contents for satellite DBM. them to do video editing with ease. Qsign Studio is already supplied to schools and 30 universities and educational institu- True venture business through self-controlled tions. The market was so positive about the quality of Qsign management Studio that it is used in multimedia training programs for Through the above mentioned efforts, Mointek is aiming for teachers. a 500% sales increase this year. Such a goal appears to be Overseas importers, including those in the United States, unrealistic. President Kim, however, explains that it looks that Australia, and Japan, are greatly interested in Qsign Studio way because last year’s sales record was so low. Even and negotiations are actively underway. The DIBO (digital including sales of various R & D services, the firm’s sales

IT KOREA Journal _ 89 Company Interview｜Mointek

amounted to a mere 400 million KRW last year. This year, corporate management. The company name “Mointek” was through its exclusive sales agency in Japan, Qsign Studio and coined from “moin (gathering of people or technology)” and DIBO will be exported and at the same time, Mointek will “tek (technology).” “If you can open employees’ minds, their establish a separate sales corporation and promote an minds will be oriented toward the development of the company aggressive marketing campaign in the Korean domestic as a whole,” says President Kim. He even argues that market. By Mointeck supplying mobile phone video editors to employees’ salaries should take into account the number of mobile communications service providers and by maintaining name cards they have. its current thrust in R & D, it is expected that a 500% increase The idea is that doing business is meeting people. Mointek would turn out to be a reasonable goal. is famous for having no restrictions related to dress code or Plus, Mointek is also counting on a “Korean style media work hours. Employees even decide on their own salaries. player,” a LINUX-based media player, which will soon be President Kim is resolute that these aspects of “self-man- released into the domestic market currently occupied by agement” will be maintained even when Mointek becomes a foreign products. According to President Kim, the Mointek much bigger corporation. All employees support his idea and version will be more powerful than that of Microsoft’s Windows “self-management” is firmly in place at Mointek. President Kim Media Player. says, “a venture business that is run by just a few employees Mointek has the capability of releasing such diverse is like a family. A company run by the principle of self-con- products because it boasts an array of original solution tech- trolled management is an embodiment of what is a true nologies such as digital video authoring tools, search and venture business. And I want to maintain that corporate tra- save tools, as well as, video compression and security tools. dition forever.” President Kim emphasizes that “human” is the essence of

Major Mointek Products

▶Qsign Studio its user’s selection and consumption of the video images This is a popularized version of the digital video authoring under various environments, including digital broadcasting, tool that can easily and speedily edit video contents on the the Internet and mobile communications. Internet and user-made contents made by camcorder. Thanks to Qsign Studio, video editing is no longer monopo- ▶Content-based surveillance video indexing and lized by specialists. search system Under a surveillance environment, this system offers a ▶DIBO variety of functions: a detection of object’s movement This system is for digital writing and production of educa- ability, as well as, indexing and search. tional contents with wide e-learning applicability including addition to an automatic surveillance function, this system presentations and educational contents authoring. offers an efficient integrated management of high capacity surveillance videos. ▶MPEG-7-based video summary generation and Thanks to this comprehensive solution, the surveillance in browsing technology various workplaces can be automatized, its traffic can be An application technology that uses the MPEG-7 as a analyzed statistically and automatically, plus, over- standard, this is a video summary generation and browsing speeding and passing the center-line can be automatically technology that offers efficient search and browsing tools for detected.

90 _ IT KOREA Journal Company Interview｜NRD-Tech

“1Gbps ultra-high speed wireless communications network” for the first time in the world

A millimeter-wave system, using the 60GHz band leads to the development of a wireless communications system whose speed surpasses light communication speed

NRD-Tech, a venture company located in Busan, developed the 1Gbps ultra-high speed wireless product, whose speed surpasses the light communication speed. The company made a sensational debut in several overseas markets including Japan, Taiwan, Hong Kong, and China. Established in 1998, NRD-Tech (www.nrdtech.com) — the author of the technological shock — is a company specializing in an ultra-high speed wireless communications network. The company was jointly established by professor Yoneyama of Japan, a world-famous specialist in the field of the millimeter-wave and the originator of the Non Radiative Dielectric Guide Theory and Professor Shin Cheon-woo of Kyungsung University was to develop ultra-high speed wireless products that use the millimeter-wave.

Reported by Shim Woo-sung([email protected])

stablished in September of 2000, NRD-Tech is headed whose maximum theoretical speed is 11Mbps. E by Shin Cheon-woo, a professor at Kyungsung Reporters decided to conduct a test in Busan where NRD- University. The millimeter-wave communications system that Tech is located. It took only about 10 seconds for the this company developed notebook PC in a moving car to operates at 30GHz-300GHz, download a 100M high-volume which allows a speed that is 100 video. Even more surprising was times faster than the 1GHz band the fact that the hand-off was func- used for mobile phones. tioning perfectly in the car that was Therefore, under their system, speeding at 60km. NRD-Tech has high-volume multimedia data developed its own hand-off system can be transmitted to and from which is completely free from tem- mobile phones. In addition, its porary disconnections and delays speed is 1Gbps: more than ten that often occur in the wireless times faster than the 2.4GHz LAN connections. band-based wireless LAN, The epitome and secret of NRD

IT KOREA Journal _ 91 Company Interview｜NRD-Tech

the NRD-Tech firm worked with other Korean venture companies such as Dasan Networks and MMC Technology1. These companies thus boasted Korea’s status as an IT : : : Click : : : power. The second step consists of installing the network in Client A Client B the whole Taipei area. With the completion of the third step,

HTTP://WWW.NRDTECH.COM all of Taiwan will be covered by the system. Besides Taiwan, the Korean company is also implementing a new business project with the HP Hong Kong’s system business division. NRD-Tech has, also, established partnerships with major companies in China and Japan. In Japan and Camera Video출력 Germany, this Korean firm is even considering establishing � NRD-Tech Network subsidiaries. Leading companies such as Sony and HP have recognized technology is a plastic antenna that took six years of research the technological power and potential of this Korean company and 100 researchers for its R&D works. Designed from a wave and are interested in making investments. Despite such engineering rather than electronic engineering perspective, success abroad, NRD-Tech almost gave up doing business in the antenna uses plastic as the dielectric material to reduce Korea because the needed band was not licensed. President wave radiance. About 100 relevant technologies were Shin reaffirmed his resolution: “Our business is so unique that patented in about 100 countries including Korea, China, it is something without precedence. Because there isn’t any Japan, European countries, etc. precedence, we cannot get the license. We, thus, have to NRD-Tech, which released 35GHz, 60GHz, and 75GHz succeed abroad, make a precedence, and, then, apply for a band products, is concentrating its marketing efforts on a license in Korea. We must succeed abroad so that we can 60GHz band product because although its transmission dis- enter the Korean market. This is quite the opposite of what tance is limited (about 1 km), it is free from frequency inter- other Korean businesses are doing.” ference and security problems. Its 35GHz and 75GHz band products have a communication distance of 50km and 10km, A rush of orders from abroad, 10 billion KRW respectively and this means that these products can cover a sales expected this year major city. President Shin’s reason for launching this business is

More famous abroad than in Korea Bakbone Because the frequency band necessary for its products is ISP Network architecture Contents Bakbone not licensed in Korea, this company is making marketing sever inroads abroad. In particular, in March of last year, NRD-

Tech signed a 20 billion KRW contract with a Taiwanese Anywhere broadcasting company to initiate an ultra-high speed wireless communications service to cover the whole of Outdoors Taiwan. According to the first step, Panchiao was covered by Internet & Contents Service July and the areas near Taipei by September.

These areas include schools, a stadium and government Anytime buildings. In setting up the wireless communications High capacity internet service throught wireless LAN network, only domestically made equipment were used as

92 _ IT KOREA Journal NRD-Tech

more than ten times faster than the 2.4GHz band-based wireless LAN, whose maximum theoretical speed is 11Mbps.

� President Shin Cheon-woo

unusual. As early as March, 1999, after a three-year study, amounted to 600 million KRW. Of course, Korean domestic Professor Shin made a presentation on the 60GHz band sales are nil. This company expects that sales this year wireless communications technology. At the time, the would be 10 billion KRW — almost 2000% growth from last backbone was just T1-based and when he argued that year. NRD-Tech’s confidence stems from the fact that, as wireless communications speed could reach 1Gbps, some mentioned above, many countries are already buying the critics even said that he was a defrauder. This hurt his pride technology and countries like China and Japan are even and President Shin wanted to prove that he was speaking the interested in manufacturing the company’s products in their truth by launching the business. own countries. In silence, he researched for three more years and, at last, in 2002, he completed the development and commercial- President Shin, however, says “the bottomline is that tech- ization of this technology. What he got, however, was a cold nological development will be done in Korea because although response from the very high speed Internet service providers we are not respected in Korea, we cannot let our core tech- and wireless LAN companies. They acknowledged the nologies leak to other countries.” Fortunately, there is a large strengths of the technology, but, they were not interested in a domestic corporation that is interested in mass producing technology that cannot use licensed frequency. NRD-Tech products and negotiations are undeway. Furthermore, the “portable Internet” era was slowly Finally, President Shin said, “Korea is surely an IT power emerging and this also was a blow to his business — the but in truth, outside of Seoul, even in the case of major cities, government was supporting the development of portable the communications environment is deplorable. I hope NRD- Internet. President Shin did not give up and tried harder to Tech will contribute to the vitalization of a communications demonstrate the potential of his technology to the overseas network in the rest of the country. I, also, want to show that markets. academics can succeed as entrepreneurs. I wish I could be a The result was a big success. Last year, sales to foreign good model for young engineers.” companies, who bought his products as “samples,”

IT KOREA Journal _ 93 ｜CENTER NEWS｜ InternetInternet StatisticsStatistics

※ Source:KRNIC

Statistics on Domestic Internet Use (As of January 2004)

A look at .kr domain registration within two-level domains shows that co.kr takes up the largest proportion at 459,520(75.54%) The Number of .KR Domains � followed by Korean language(Hangul) .kr with 11.76%. The domain type with the highest rate of increase was (Hangul) .kr Boosted by the launch of Korean language domain services in the with 2.98% followed by or.kr (0.63%) and go.kr (0.63%). Other latter half of 2003, the total number of .kr domains registered domain types, however, showed decreases in registration. reached an all time high of 611,548 by December 2003. This number, however, started to fall in January 2004, decreasing to 608, 314. A monthly breakdown shows that the number started Proportion of .KR Domain Registration to increase from mid-year until it reached an increase of 7.5% (the highest) in November. The slight drop began in December.

Number of .KR Domains by Year

Number of .KR Domains by Month and by Type

Number of .KR Domains by Month

94 _ IT KOREA Journal ｜INTERNET｜CENTER STATISTICS NEWS｜

Internet Statistics

Webpage:isis.nic.or.kr | E-Mail:[email protected] A look at the number of .kr domains by region shows that Seoul accounts for the most with a rate of increase of 55.59%, followed Number of IPv4 Addresses Allocated for Korea by Gyeonggi (16.46%), Busan (4.52%), Daegu (3.93%), Incheon (3.56%), Daejeon (2.21%), and Gwangju (1.91%). Even though there is no change in the standing of the regions, it is interesting to note that the proportion of domains registered in areas other than Seoul and Gyeonggi province is growing, closing the gap between Seoul and the other regions.

Regional Proportion of .KR Domain Registration Number of IPv4 Addresses by Country (Unit: Addresses, as of January 2004)

Domestic Distribution of IPv6 Addresses (sTLA/35)

� Current Condition of IP Address/AS Number in Korea

Under the IPv4 system, the APNIC allocates IP addresses on a regular basis depending on the past and current demand for IP addresses in each country. IP addresses allocated for Korea are currently based on C class unit and distributed to domestic ISPs. As of January 2004, IPv4 addresses secured to Korea numbered 30,980,608 with an additional 1,769,472 allocated to Korea in October 2003. Korea ranked 9th, following the US, Japan, Canada and others in total number of IP addresses.

IT KOREA Journal _ 95 ｜CENTER NEWS｜ InternetInternet StatisticsStatistics

※ Source:KRNIC

Internet Statistics In Korea (As of January 2004)

Number of AS Numbers Secured by Country As it did in the number of IPv4 addresses, the US ranked first in the number of IPv6 addresses (73) followed by Japan (65), Germany (51) and Switzerland (41). Korea ranked 12th with 18 addresses.

Number of IPv6 Addresses Secured by Country (sTLA/35)

※ 600 is the total number of AS numbers Korea holds while 524 is a total of AS numbers allocated to Korea.

� Number of Service Subscribers by Access Channel

The number of subscriptions for Internet access services through Autonomous System (AS) is a unique numbering system used for xDSL (6,877,118 subscribers) and CATV (4,023,488) is higher than the identification of a network, which is a combination of IP through ISDN. addresses. The figure below is the cumulative number of IP addresses measured since April 1997 when KRNIC initiated the Number of Subscribers by Access Channel (As of December 2003) allocation service of AS numbers. By the end of January 2004, the cumulative number of AS numbers allocated to Korea stood at 524. Korea ranked 6th, with 600, in terms of the number of AS numbers secured.

Number of AS Numbers Allocated for Korea

96 _ IT KOREA Journal ｜INTERNET｜CENTER STATISTICS NEWS｜

Internet Statistics

Webpage:isis.nic.or.kr | E-Mail:[email protected] Results of the Survey on the“ Level of Informatization for the Latter Half of 2003 (as of December 2003) The above figure was based on raw data acquired from ISPs whose ” IP addresses are allocated by KRNIC. � Internet Use Rate and Number of Internet Users � The Number of Mobile Addresses(WINC Service) Registered Results of Survey on the“ Level of Informatization for the Latter Half of 2003”(As of December 2003)

As of January 2004, the number of mobile addresses (WINC) registered for the WINC service, officially launched in July 2002, stood at 5,898. WINC refers to a numbering system that enables access to wireless Internet content, launched under the agreement between KRNIC and three domestic wireless communication carriers(KTF, LG Telecom, and SK Telecom). This new system enables access to the wireless Internet through simple numbers An era of 30 million Internet users is just around the corner as the rather than having to enter complicated URLs. Anyone who wants number of Internet users has already reached 29.22 million(those to register for access numbers can do so in real-time at one of the over six years of age who access the Internet more than once a web sites of the domain name resellers after checking whether the month). The percentage of Internet users in Korea, by the end of numbers he or she wants are already registered or not. 2003, had increased to 65.5%, up 6.1 percentage points(or 2.95 million users) from the previous year.

Number of WINC Registered for Each Month Changes in the Percentage and the Number of Internet Users

A look at the percentage of Internet users and the number of ※ The cumulative number(1,569) before June 2002 is based on the data gathered Internet users by gender revealed that 71.7% of men were using during the pilot service period. ※ Because of changes in measurement methods, there could be differences in the Internet(up 6.5 percentage points from the previous year; an numbers for the same year between this edition and those editions issued increase of 1.59 million to 16.01 million) while 59.2% of women before summer 2003. were using the Internet(up 5.6 percentage points, an increase of 1.36 million to 13.21 million).

IT KOREA Journal _ 97 ｜CENTER NEWS｜ InternetInternet StatisticsStatistics

※ Source:KRNIC

Results of the Survey on the“ Level of Informatization for the Latter Half of 2003”(as of December 2003)

By vocation, 92% of office workers and 97% of students have accessed the Internet. Housewives showed the highest growth rate Comparison of the Percentage Comparison of the Number of (up 13.1 percentage points from the previous year) with 50.3% of Internet Users by Gender Internet Users by Gender having accessed the Internet.

Comparison of the Percentage of Internet Use by Vocation

By age, the percentage of Internet users of two age groups- people aged 6~19 and those in their 20’s- continued to increase to exceed 94%(6~19: 94.8% up 3.4 percentage points; 20’s: 94.5% up 4.7 percentage points). Interestingly, the age groups of those in their 30’s and 40’s, which had showed relatively low rates in the � Pattern of Internet Use past, showed strong increases: 80.7%(up 11.3 percentage points from the previous year, or an increase by 0.98 million to 7.14 Those survey cited various purposes for using the Internet. While million) and 51.6%(up 12.3 percentage points from the previous most responded that they used the Internet primarily to get year, or an increase by 1.08 million to 4.08 million), respectively. information(searches, reading newspapers/news/magazines), Those in their 50’s also showed a steady increase in the percentage which is the basic idea of the Internet, many also answered that of Internet users. they use the Internet for economic activities(shopping/reservations, online banking), for communication(chatting/instant messaging,

Comparison of the Percentage Comparison of the Number of Purpose for Internet Use (Multiple response) of Internet Users by Age Internet Users by Age

98 _ IT KOREA Journal ｜INTERNET｜CENTER STATISTICS NEWS｜

Internet Statistics

Webpage:isis.nic.or.kr | E-Mail:[email protected] online communities), for entertainment(games, music, movies) and for education. This is a testimony to the fact that the Internet has become an integral part of our daily lives. Frequency of Online Shopping Access to Fee-based Content? It was found that Internet users spent an average of 12.5 hours online and that 85% of users had an e-mail account(an average of 1.7 accounts each).

Time Spent Online (weekly average) Number of Email Accounts

46.9

27.3

16.8 month , 34.7% responded once or twice a month , and 12.3% 3.9 4.6 ’ ‘ ’ 0.5 replied‘ more than three times a month’. Less than 1~2 2~4 4~10 More than response an hour hours hours hours 10 hours Only 25.2% of Internet users have accessed fee-based content. The percentage of people who have purchased goods or services Popular fee-based content included online games(48.5%), Movies online within the past six months was 39.9%. Most frequently and broadcasting(42.8%), and educational materials(21.8%). By bought online shopping items, according to those surveyed, were gender, men’s favorite online content included online games apparel/general merchandise(51.2%), books(34.5%) and car (22.8%), research/study data(9.5%), adult-only sites(7.3%) and accessories/daily necessities(24.0%). Regarding the frequency of newspaper/news(6.6.%). Women’s favorites were music(17.8%), Internet shopping, 51.9 % said that they did it‘ less than once a educational materials(11.5.%) and online communities(2.5%).

Online Shopping Items (Multiple response) Most Frequently Used Fee-based Content (Multiple response)

IT KOREA Journal _ 99 Industry News NEWS

‘Wear Computers’ at Yong-In Songdam College’s ‘Digital, Wearable & Vision 2004’

A project team at Yong-In Songdam digital hood jacket designed for health direction for what we shall wear, and College held the second exhibition of and entertainment purposes, the ‘digital where computing technology shall be ‘Digital, Wearable & Vision 2004’ at the best’ that solved a mobile device’s heading toward. college’s Sugdam Art Museum during major drawback, e.g., limited battery Professor Chung said, “I wanted to March 2 through March 5. capacity, clothing of high functionality share the outcome of the studies on the The exhibition, which receives spon- using EL light designed for use under wearable computers with other people sorship from the Korean Ministry of special working environments, through this exhibition. I am happy to Education & Human Resources sportswear for ski or cycling, digital EL see lots of people coming here and Development, has attracted attention for jackets that can be applied to clothing showing an interest here.” its new concept of the ‘wearable com- for a theater performance During the puter’ from the academic and industry exhibition, models wore these clothes in circles since launched in 2003. a fashion show. The concept of ‘wearable computers’ The exhibition showed a technology originates from Marshall McLuhan who of combining the LBS (Location Based had projected ‘computers to become the System) with voiced guides that allows most important part of people’s apprarel’ children and the elderly people on the in his book of the mid-1960s titled ‘War move to be guided on which road to and Peace in the Global Village’. take by following the friendly voice of Organizers at this exhibition said the their parents or family members. event is aimed at providing a Chung Ki-sam, professor at the vision about the advanced technology college’s medical information system and directions for the future department, who organized the exhi- culture as part of making his vision bition, delivered his lecture of the come true. ‘wearable computing technology and its The organizers displayed a variety of application cases’, where he drew an futuristic clothing that contrasts starkly analogy between the desire of people with traditional ones, and thus attracted living in the 18th century for watches lots of attention from visitors. Among and the current culture for mobile the clothing in the spotlight were: a phones, and thus suggested a future

100 _ IT KOREA Journal Industry News NEWS

200,000 Subscribers Switched to KTF in Jan

Following the launch of MNP (Mobile was found to be happy with the KTF scribers to KTF were found to be in the Number Portability), about 300,000 sub- services. In a survey of these 160,000 respective age groups of 25 to 35 and scribers switched to other operators in switched subscribers in February 25 by 36 to 49. January. Among these 300,000 KTF found that 97% of them to be sat- The ARPU of these switched sub- switchers, 200,000 switched to KTF (or isfied with the KTF service and a 58% of scribers to KTF was surveyed by KTF to 66.7%), and 100,000 switched to LG them to show an intent to recommend to be higher than that of existing KTF sub- Telecom (or 33.3%), according to KTF. their friends that they too should subscribers as well as that of the sub- The ratio of 66.7% for KTF versus scribe to KTF. scribers to SKT. 33.3% for LG Telecom is similar to last The KTF analysis showed these The average price for mobile phones year’s comparable ratio of 68% for KTF switched subscribers tend to be good paid by these switched subscribers to and32% for LG Telecom. quality subscribers who usually are slow KTF was found to be in the high-priced A representative at KTF added that a in changing their mobile numbers. A range of 420,000 won or higher with majority of these switched subscribers 39% and 28% of these switched sub- multimedia functionality.

KT to Open High-Speed Ethernet Connection With Hong Kong

to the Hong Kong-Korea connection November, 2003. Meanwhile, the dis- results in a multiple functionality of its tance between Korea and Hong Kong Ethernet switches that also work for was connected with the undersea cable transmission and line allocations. Flag East Asia (FEA) whose coverage The international Ethernet Internet extends from Korea to China, the Middle service was introduced for the first time East and Europe. KT(www.kt.co.kr) has signed an in Korea when a joint team of KT and It was for the first time in the world, in agreement with Hutchison Global Japan’s Kyushu Telecom launched it for particular, to put Ethernet VPLS tech- Communications Ltd to provide an a Japan-Korea connection in March, nology into commercial use for the new international high-speed Ethernet 2003. Ethernet service on the Korea-Hong Internet service for the Asia Pacific Therefore, the Hong Kong-Korea con- Kong connection. region after the completion of the nection follows the Japan-Korea con- So KT and Hutchison put a feasibility Ethernet telecom network, a spokesman nection for the international Ethernet test in place to verify the quality of the at KT said on February 25. Internet service. new Ethernet VPLS technology-based The international Ethernet-based Unlike the Japan-Korean connection service through testings of the interna- Internet service offers an advantage of which uses leased-line for point-to-point tional telecom network connection and simple network configuration, a low line connection, the new Hong Kong- stability. The deployment was made in Internet usage fee, and various speed Korea connection used multiple con- consideration of future service options of from 1Mbps to 1Gbps. This is nection type. expansion, effective operation and compared to traditional leased line- To launch the new service, KT and maintenance for an international based Internet services offering little Hutchison has deployed a joint Ethernet telecom network between the two oper- speed options on top of their compli- platform at both KT’s Gwangwhamun ators, and a standardization for service cated network configurations. The international gateway and Hutchison’s operation quality. advantage of the new Ethernet service international telecom center since

IT KOREA Journal _ 101 Industry News NEWS

SKT Ready to Launch Satellite for DMB Service(DMB)

ready to designate its licensed operator. In this way, Japan provide a nationwide COM2US Acquired support to the satellite DMB service, as ISO14001 it regards it as a chance to take a second leap into becoming an advanced COM2US(www.com2us.com) IT nation. announced In March, Korean lawmakers finally on March 4 passed a revision of the broadcasting that it has act, paving the way to issue its license won the ISO for an operator of a satellite DMB in 14001 to fit 2004. Japan is faster than Korea in the global s issuing its license, as in Japan, a prelim- tandards for environment-friendly inary license for a satellite DMB was management systems. The already issued in July, 2003. mobile game provider COM2US SKT said that the Hanbyol Satellite for It is the industry’s hope, therefore, has expanded its business into the upcoming digital multimedia broad- that the nation won’t repeat the mistake 40 countries within Asia and casting (DMB) service is ready to be of the KT-launched Mugunghwa satellite Europe, as well as, the US so “shot-off” a launch pad, after moving which had cost KT dearly, but it is short that the company has shipped into its launch pad on February 13. The of being fully utilized due to a legal out its mobile games through Hanbyol Satellite is the world’s first stranglehold. local mobile operators and its satellite of its kind for the use of the The cost of the satellite was shared own branch offices or sub- DMB service. by SKT for 34.66% and MBCO for sidiaries. The satellite was completed on 65.34% of the total cost on the basis of In April, 2003, COM2US star February 12, after two years of con- the number of relay equipment and cov- ted its business in China. Park struction at the Space Systems/Loral erages. The total cost of buying and Ji-Young, president of COM2US, headquarters in Palo Alto, California, launching the satellite, along with the said, “The acquisition of the the US started in June, 2002. On operation of its ground offices and ISO14001, combined with our February 13, the satellite was moved to insurance premiums, stood at 272 billion global competitiveness, will bring its launch pad at Kennedy Space won, 94.5 billion won of which was us closer to our drive towards Center, Florida. borne by SKT. The joint utilization of the becoming a world-class mobile The satellite is jointly owned by SKT satellite is expected to allow SKT to game provider, as it will put us and Japan’s provider of the DMB save at least 150 billion won by sharing onto an effective track to maxi- service MBCO for the common use of cost with MBCO for insurance, oper- mizing our business efficiency as DMB service in both Japan and Korea. ation, ground offices and satellite main- well as activities for standard- The worldwide attention among global tenance. ization.” COM2US is generating satellite and IT players is paid to the The satellite DMB service beams its about 20 percent of its revenues launch of the Hanbyol Satellite since channels from the satellite to terrestrial from its international business. major operators in Japan and Korea repeaters for relay to mobile phones, This year, the company targets joined forces to be a “fast-getter” in the PDAs and vehicle receivers so that it 50 percent of its revenues to be satellite DMB service. allows subscribers to enjoy multi- export-generated. Japan completed revision of its channel multimedia broadcasting related acts on satellite DMB and was anytime and anywhere.

102 _ IT KOREA Journal Industry News NEWS

SKT Develops A New Concept of Home-Network Service(SKT)

corner of the home, and, in case of breaking into your home. Because the emergencies like fire or gas leakages, robots will be moving to trail these the robots will send an emergency people at home and will be taking real message via mobile phone to home time shots of them and sending the pic- owners on the move. The new robotic tures to the mobile phones of their home-network service will be launched family heads. along with providers of artificial intelli- In this regard, SKT has provided a gence solution. telemetry service and tele-surveillance So the new service allows home service against maritime environment owners on the move to keep a real-time pollution since 2000, while also pro- watch over every spot in their home by viding a mobile home-network service a moving robot. So this new service is that allows its subscribers on the move SKT plans to develop and launch a compared to traditional services whose to open or close their home entrance new concept of home-network service coverage is limited to several fixed gates or gas meters. SKT plans to using intelligence robotics during the places where camera or risk-recog- extend the scope of the mobile tele-ser- first half of 2004. This is an advanced nizing sensors are installed. vices into mobile tele-medicine that concept in home-network service, SKT So you don’t have to worry, if you allows patients to use mobile phones in said, as the new service will use leave behind your children or aged sending their health information about “robots”: Loaded with a camera and parents alone at home, or you don’t their blood pressure or other such things sensors, the robots will go around every need to feel nervous about an outsider to their medical treatment staff.

Dacom Launched WLAN at Incheon Airport

at the Incheon International Airport - two card for AirLAN service. The new places at the departure lounge on the AirLAN service at the Incheon airport third floor and another two at the entry does not require a separate access lounge on the second floor. program, as its users will be able to AirLAN users connect wireless cards have an easy access to the Internet with their laptop or PDA so that they can simply by entering the number of their have an broadband access to Internet prepaid card into the access authenti- anywhere and at anytime, and they can cation window that pops up when they Dacom launched the wireless enjoy data transmission speed that is 30 clicks InternetExplorer. The AirLAN ‘AirLAN’ service at Incheon International times faster than the speed of mobile users can rent the WLAN card at the Airport on February 2. So people can phones. AirLAN lounges for free and purchase use a laptop to access the Internet at Expatriats in Seoul are usually denied said prepaid card at the same lounges. the airport. Dacom was the Korea’s first the comfort of easily accessing the Meanwhile, Dacom provides the AirLAN operator to provide a public wireless Internet with their laptop, but they are service for people in subway stations, LAN (WLAN) service under its ‘AirLAN’ allowed to have their laptop-based highway express bus terminals, public brand. For the AirLAN service, Dacom Internet access at the Incheon airport’s agencies, etc., as well as for its installed AirLAN lounges in four places AirLAN lounge, once they buy a prepaid Borahome.net subscribers.

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Samsung Electronics Teamed With IBM to Develop System LSI

service MBCO for the common use of of the KT-launched Mugunghwa satellite DMB service in both Japan and Korea. which had cost KT dearly, but it is short The worldwide attention among global of being fully utilized due to a legal satellite and IT players is paid to the stranglehold. launch of the Hanbyol Satellite since The cost of the satellite was shared major operators in Japan and Korea by SKT for 34.66% and MBCO for joined forces to be a “fast-getter” in the 65.34% of the total cost on the basis of satellite DMB service. the number of relay equipment and cov- Japan completed revision of its erages. The total cost of buying and SKT said that the Hanbyol Satellite for related acts on satellite DMB and was launching the satellite, along with the the upcoming digital multimedia broad- ready to designate its licensed operator. operation of its ground offices and casting (DMB) service is ready to be In this way, Japan provide a nationwide insurance premiums, stood at 272 billion “shot-off” a launch pad, after moving support to the satellite DMB service, as won, 94.5 billion won of which was into its launch pad on February 13. The it regards it as a chance to take a borne by SKT. Hanbyol Satellite is the world’s first second leap into becoming an advanced The joint utilization of the satellite is satellite of its kind for the use of the IT nation. expected to allow SKT to save at least DMB service. In March, Korean lawmakers finally 150 billion won by sharing cost with The satellite was completed on passed a revision of the broadcasting MBCO for insurance, operation, ground February 12, after two years of con- act, paving the way to issue its license offices and satellite maintenance. struction at the Space Systems/Loral for an operator of a satellite DMB in The satellite DMB service beams its headquarters in Palo Alto, California, 2004. channels from the satellite to terrestrial the US started in June, 2002. On Japan is faster than Korea in issuing repeaters for relay to mobile phones, February 13, the satellite was moved to its license, as in Japan, a preliminary PDAs and vehicle receivers so that it its launch pad at Kennedy Space license for a satellite DMB was already allows subscribers to enjoy multi- Center, Florida. issued in July, 2003. channel multimedia broadcasting The satellite is jointly owned by SKT It is the industry’s hope, therefore, anytime and anywhere. and Japan’s provider of the DMB that the nation won’t repeat the mistake

China Mobile Launches “Coin-Piling” Mobile Game of E3net

coin piling has become one of the named it ‘coin-piling-2,’ and, in March, popular mobile games, as the three provide it to these three mobile mobile telecom service providers in providers. Also, the company plans to Korea posted an accumulated total of support a service of connecting the E3net(www.e3net.co.kr) said that 500,000 download hits for the mobile mobile with the online game through China Mobile launched E3net’s ‘coin coin piling game as of February, 2004. its open beta service at an online piling’ mobile game on March 1. In E3net plans to launch a new version casual board game portal site located Korea, the company’s mobile-based of the popular mobile coin-piling game at http://www.funkyfunky.com

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Samsung Electronics Established a System LSI Research Center in China

Samsung established a research customization system for its R&D pro- institute for system LSI in China, as part jects to fit Chinese market conditions. of its drive of localizing its system LSI Samsung targets to increase the business within China that is emerging number of its best-selling system LSI as the global center of the IT industry. products from two in 2003 to 10 by The new research institute in China 2006. will undertake R&D projects for the elec- Lately, there is a surge in demand for tronic items that generate a big revenue the high-density SoC semiconductor, as stream and are expected to develop: °‚ the IT industry goes digitalized and con- backdrop, Samsung’s new research Chinese-bound sytem LSI semicon- vergent. There is a shift in the semicon- institute in China is expected to raise ductor like MCU (Micro Controller Unit); ductor business field from a simple Samsung’s profile as a provider of total °‚ A R&D for system solutions in the delivery of memory chips towards the system LSI solutions. areas of DVD players, VCD, CDP and production of system solutions. Samsung Electronics plans to gen- LCD monitors. So the system solution technology is erate at least $400 million in revenues Samsung Electronics in China plans emerging as an important factor to from its system LSI business in China, to establish a local development impact the future direction of the semi- which represents a 30% increase, com- structure, where it can achieve a local conductor industry. Against this pared to the previous year.

Samsung Produces Two-Display, One-Chip Driven LCD Modules

to drive a mobile phone’s inner display also risen. The share of TFT-LCD and outer display. mobile phones is expected to increase These new modules are compared to from 31% in 2004 to 45% by the end of traditional ones that are driven by two IC 2005, as demand for color screen chips and a backlight. The new modules mobile phones is on the rise. The TFT- at Samsung, therefore, are able to be LCD display for mobile phones is produced 1mm slimmer and at a lower expected to reach a 170 million unit cost, compared to traditional modules. market in 2004 and 320 million unit These products improved the quality market in 2006. of display in both the indoor and outdoor Samsung plans to sell at least 50 Samsung Electronics started com- environment. million units of 10-inch or smaller TFT- mercial production in March of ‘two- Samsung Electronics produces these LCDs for mobile phones or others in display, one-chip driven TFT-LCD modules in a variety of 1.52, 1.68, 1.8, 2004. modules’. In these modules, one LCD 1.9 and 2.0-inch sizes to meet the trend Samsung plans to increase the share Drive IC (or LDI) is used to simultane- of further segmentation and sophisti- of smaller TFT-LCD display production ously drive both inner and outer displays cation in the mobile phone market. at its facilities of Line1 and Line2 of a mobile phone. The display for mobile phones is located in Kiheung, while facilitating its These new TFT-LCD modules are emerging as a mainstream of the TFT- marketing drive for TFT-LCD display made up of one IC chip and a backlight LCD, as the display for LCD-TV has business.

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LG Developed 5G Digital TV Receiver Chipset

the terrestrial digital TV (VSB:Vestigial rate of the 5G chipset to be 94%. The Side Band) and digital cable TV broad- new 5G receiver chipset has also drasti- casting (QAM: Quadrature Amplitude cally improved the reception coverage Modulation) into the deeper hard-to-reach areas. LG Electronics has spent more than Meanwhile, about 70 percent of 1,600 8 billion won to develop the 5G receiver or more broadcasters in the U.S. are chipset with 60 or more R&D members cable TV broadcasters. Given this fact, for two years with more than 60 patents LG’s 5G receiver chipset is expected to pending in Korea and abroad. be well received in the US. In 1997, LG developed the 1G DTV The LG’s 5G receiver chipset is receiver chipset for the first time in the expected to facilitate the spread of LG Electronics developed the 5G world. digital TVs in North America in accor- receiver chip which was designed to By developing the 5G DTV receiver dance with the ‘guidelines for mandating improve the receiver functionality of chipset, LG firms up its lead in the DTV DTV digital tuners’ (footnote2)’ of 2002 digital TVs in a move widely seen to receiver chipset technology area. The by the US FCC (Federal Communi boost the spread of the digital TV broad- receiver chipset serves as the brain for cations Commission), as well as the casting viewer base in such countries as digital TV. ‘regulations on cable-ready digital TV’ of the US, Korea, Canada, etc., where the LG adopted its own algorism to 2003 by the US FCC. North American DTV standard of ATSC enhance the receiver functionality for LG plans to adopt the 5G receiver was adopted. the 5G version, while also drastically chipset for an entire line-up of integrated The 5G receiver chipset offers a improving the receiver success rate by digital TV models and digital settop drastic function improvement from the resolving the ‘multiple ghosts,’ which boxes to be shipped out to the world 4G version with its deeper coverage into refers to a receiver interference by sky- market so that LG can achieve its goal the hard-to-reach urban areas and the scrapers. of topping the world’s digital TV receiver sharper indoor reception, while also A field test by a domestic TV broad- chipset market with 50% of market adopting one chip solution for receiving caster has found the receiver success share by 2007.

Mobile Compia Opened a “Dream Doctor” Service

Mobile Compia, a specialist for cor- is the basis for the Dream Doctor to Cho Sung-je, president of Mobile porate-use PDA, set up a ‘Dream provide the cyber one-stop customer Compia, said, “This new service is a Doctor’ to provide a virtual con- service for its PDA customers, as well reflection of our commitment to pio- trolled after-sales service for as corporate mobile consulting and neering the way for customer satis- its PDA customers, Mobile Compia support services. The Dream Doctor faction, along with the mobile special- announced on January 15. Dream allows the company’s PDA users to ization consulting service that our Doctor is the first of its kind in the access the virtual-controlled AS company offered last year. This year, domestic PDA market. service at their offices without having we will continue to focus on customer The VCS (Virtual Control System) to visit the customer service center. satisfaction.”

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LG Electronics Launches Air Purifier Business

tries share a similar lifestyle. In this way, The HEPA filter, for instance, purifies the global demand for air purifiers is on the inner side of itself and thereby, a rising trend. resolved the problem of spreading LG holds a world-class technology for germs from the air purifier itself. germ disinfection and air purification Also, Klena deployed the Soldat disin- that placed the company in top spot fection ion which was jointly developed within the world’s air conditioner market with Germany’s ETR. This ion at Klena for the fourth-consecutive year. LG uses is released into the air and thereby a combination of its technology on the removes molds that would otherwise cutting edge to develop the ‘LG air cause allergic troubles and nurture bac- purifier Klena’ that is run on a revolu- teria. LG Electronics said on February 26 tionary new mechanism for disinfecting A testing by the Korea Consumer that it launched an air purifier business. indoor harmful germs or VOCs and for Science Research Center has found the Driven by a well-being desire to be purifying air. Klena air purifier to remove 98.9% of free from hazardous materials like LG Electronics plans to go ahead with large intestine bacteria that is prevalent indoor VOC or yellow sand, demand for the world-class technology to launch a in indoor places, and 99.1% of yellow air purifiers in Korea is expected to series of consumer-sensitive products; staphylococcus. increase from 400,000 units in 2003 to to maintain its R&D stream through its A research team of the bio-industry 500,000 in 2004 and one million in global R&D network for air purification and material, led by Professor Sung 2007. core technologies; and enhance mar- Baek-Rin at Yonsei University has found Demand for air purifiers in Japan has keting and brand image drives at home the Klena to remove 99% of the TypeA increased from 970,000 in 2000 to 2.2 and abroad. The new Klena deployed flu virus. Meanwhile, the Klena deployed million in 2003, as Japan shares a simi- the 3-dimensional filter system in a 20- LG’s original technology ‘nano carbon larity with Korea in that both countries phase like the world-patented bio-disin- ball (NCB) that removes daily life suffer from yellow sand and both coun- fection HEPA filter. smells.

NAKO Interactive Exports Laghaim to Four Southeast Asian Countries

NAKO Interactive(www.laghaim. Malaysia, the Philippines, Vietnam com) signed an agreement with and Singapore. The representative Malay sia’s online publisher Tera ICT said, ‘We agreed not to disclose the to export the ‘laghaim’ online game to contract terms, but these terms are four Southeast Asian countries., a satisfactory.” He added, “The laghaim representative at NAKO Interactive game is ready to broaden its popu- said on February 25. larity base in Southeast Asia as Under the agreement, NAKO laghaim has become popular in � The Interactive will export the laghaim Taiwan, China, Japan, as well as, laghaim online game to four countries - within Europe.” game

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Samsung Electro-Mechanics Developed video streams indoor than the WLAN does, while also using the 5GHz fre- ‘Wireless AV Module’ quency to avoid noise interferences with the 2.4GHz that is used for WLAN and bedroom, your set-top box is in the Bluetooth technology. living room and your DVD player is in Meanwhile, the wireless AV module your library room. was deployed for wireless PDP TV that Each time you buy a TV or video was displayed at the ‘2004 CES’ in Las player or DVD player, or each time you Vegas, held in January. So the wireless move to a new house, you will have to AV module is expected to become a do chores of connecting these devices core telecom component for the ‘digital with lines. home’ that is attracting the worldwide Samsung Electro-Mechanics at The wireless AV module-built TV is attention. www.sem.samsung.co.kr) said on designed to set you free from these Samsung Electro-Mechanics formed March 3 that it developed the wireless menial chores of trying to connect all a R&D taskforce for the wireless AV AV module (wireless modules for digital these devices with the different lines. module in June, 2003, and has since video data transmission) that would be Compared to the 54Mbps WLAN operated it to take a full advantage of its able to increase the maximum effective products using the traditional 802.11a or tuner-based technology that allows it to transmission speed up to 35Mbps per 802.11g, the wireless AV module has design the RF part of the development. second. little difference in its maximum trans- Samsung Electro-Mechanics plans to If you load your TV with the wireless mission speed. put the new AV modules into com- AV module, you don’t have to make the The new wireless AV module is up to mercial production in April, as the wired connections for antenna cables, 40% faster than the traditional WLAN company had completed its sample DVD and set-top boxes with TV that that can provide up to 25Mbps of testing and signed a contract with a would mess up your living room with so effective transmission speed , as the world-class home electronic company. many connection lines. The wireless AV new wireless AV modulet can support Also, the company plans to be a “fast- module-built TV will allow you to have a up to 35Mbps of speed for transmitting getter” of the market by developing a wireless access to high-resolution video video data. new AV module in 2004, using the next data via TV. This means that you can Samsung Electro-Mechanics said it generation technology MIMO (Multi enjoy movie or TV broadcasting pro- uses a multi-antenna that allows for Input Multi Output) which enhances grams even if your TV is in your more stability in receiving and sending antenna effectiveness.

KT Deploys 50Mbps VDSL Lines

NAKO Interactive(www.lag haim Under the agreement, NAKO Inter factory.” He added, “The laghaim .com) signed an agreement with active will export the laghaim online game is ready to broaden its popu- Malaysia’s online publisher Tera ICT game to four countries - Malaysia, the larity base in Southeast Asia as to export the ‘laghaim’ online game to Philippines, Vietnam and Singapore. laghaim has become popular in four Southeast Asian countries., a The representative said, ‘We Taiwan, China, Japan, as well as, representative at NAKO Interactive agreed not to disclose the contract within Europe.” said on February 25. terms, but these terms are satis-

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ETRI-led WIPI2.0 Adopted As the KWISF’s Official Standard

members who represents the mobile telecom industry: three mobile telecom service providers, three major mobile phone makers (Samsung, LG and The home-developed standard for mobile phones have been on the Motorola), mobile software developers wireless Internet platform the WIPI market. With the confirmation of WIPI (Korea IBM, Microsoft, Sun, etc), mobile (Wireless Internet Platform for 2.0 as the official standard by KWISF, a CPs (GavaPlus, Anicomm Software, Interoperability) Version 2.0 was team of mobile phone vendors, etc.), TTA, Radio Research Laboratory, adopted on February 11 as the official providers and mobile CPs have com- etc. Kim Heung-nam who leads the standard of the KWISF by the KWISF’s bined forces to develop, manufacture WIPI-developing team at the KWISF’s operating committee. The WIPI was and market the WIPI-enabled applica- embedded software technology center developed by an ETRI-led team and it tions and handsets. Therefore, the WIPI said, “Korea has the world-class infra- has been put to common use by the Version 2.0 mobile phones are expected structure for mobile telecom and three mobile telecom providers. The aim to be launched during the latter half of wireless Internet. This is what makes of the WIPI is to avoid overlapping 2004. New mobile application services the vast potential for the wireless investment by providers and to nurture such as the phone camera, the LBS, the Internet content industry.” Kim added: mobile content providers by enhancing security telecom, the input & output “The WIPI 2.0 supports the Java interoperability across different mobile standards for PC connection, etc., have standard language and it is well repre- contents. The KWISF played a central been adopted as standards for the WIPI sentative of domestic and international role in releasing a series of new WIPI 2.0. Java language J2ME was adopted mobile players. This year, the WIPI 2.0 versions since 2001. The first com- as a standard for the WIPI 2.0 in a move will be able to take off towards mercial model of the WIPI-loaded seen to globalize the WIPI. becoming a de-facto international mobile phone was launched in June, Behind the rally around the WIPI 2.0 standard to drive into the world market- 2003. As of March, about 140,000 WIPI has been the ETRI-led consortium of 60 place venues like China”.

Naver to Provide ‘Moblog’

NHN(www.nhncorp.com) said on agreed to launch a joint marketing cam- fledged launch of its new moblog March 5 that NHN signed a strategic paign for these services. service during March 15 to April 11, cooperation with KT to provide the The users of Nespot Swing mobile where users will take pictures under the mobile blog service (‘moblog’) as the phones will be able to do the mobile- given four topics and put these pictures mobile version of the fixed-line blog based blog management that is almost onto blogs at websites. A quiz contest service. the same as the users of the fixed-line will also be held about the usage of the KT and NHN agreed under the Internet are currently able to, as the Naver blog using the Nespot Swing. agreement to provide Naver cafe and mobile blog is beyond the simple Also, the launch of a phone-to-web mobile blog services for the ‘Nespot placing of pictures or text data onto the moblog service is slated for mid- Swing’ mobile phone, which is a combi- blog at websites via mobile phones. March?this service allows users to send nation of the EVDO and the public Meanwhile, NHN plans to launch a text and pictures onto blogs at websites WLAN service. Both companies also photo content on the occasion of its full- via a mobile telecom network.

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Samsung Developed Chipset for Satellite DMB Phones

to mobile phones, PDAs and vehicle highest integration for DMB phones, receivers so that its subscribers riding in while, also, resolving the problem of vehicles can view a high-definition limited battery lifespans by minimizing broadcasting service. the electricity consumption for powering Samsung pioneered the way to local- DMB phones. izing key components for satellite DMB A representative at Samsung Elect receivers by developing the chipsets ronics said, “By being the first developer with its technology that allows the DMB of the satellite DMB chipsets, we’ve pre- phones to come out in the slimmest pared a foothold to lead the way for core size and in the highest integration. chipset technology for the next gener- Samsung Electronics has become the Samsung applied the SoC (System ation mobile receivers. The new chipset world’s first firm to develop chipsets for on Chip) technology for the satellite is also expected to advance the com- the mobile devices of the satellite Digital DMB chipsets so as to load various mercialization of the satellite DMB Mobile Broadcasting (DMB) service. applications like user authentication and service.” The satellite DMB is emerging as the collection & management of fees into Samsung plans to launch its own next-generation broadcasting service, one chip. chipset-loaded DMB phones in line with as DMB beams its channels from the Also, the chipset was designed to the mobile operator’s timetable to satellite to terrestrial repeaters for relay ensure the slimmest size and the launch the satellite DMB service.

Lineage II Hit 30,000 Simultaneous Access in One Week

than expected given the fact that the at Seven Eleven’s online shopping mall. online game is not a mainstream game The LineageII Starter Kit has hit the in the Japan’s game market, and is, major sales outlets at Japan’s estab- thus, smaller than that in China or lished electronics chains Bic Camera Taiwan. and Yodobashi Camera since February Lately, the broadband penetration in 10, 2003. Japan has been increased and the On February 18, NC Japan had to rush broadband subscription fee has been to add one more server in an NCsoft’s(www.ncsoft.com) Lineage II lowered so that the infrastructure for Emergency move, as its LineageII hit Japan after it had hit Taiwan. In one online gamers has improved. Lineage II was attracting a lot more online players week after it was launched on February has become popular among Japanese than it had expected. Run on seven 11 in Japan, Lineage II was taking gamers because LineageII is found to servers, LineageII Japan’s game business by storm by show no shortfalls of graphics against set a record for rapid growth in terms recording 30,000 persons who had traditional video games, while also pro- of the number of its simultaneous access to the online game viding excellent game performances. member gamers, as well as, the and by attracting 170,000 online playing The ‘LineageII Starter Kit’ has recor number of simultaneous access by members. ded as a best-seller on the software Japanese gamers among the online The response by Japanese gamers to sales chart for the second consecutive role playing games in Japan. Lineage II was surprisingly stronger month since launched in December 15

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SKT Set Up Roaming Centers at Incheon

and Gimpo Airports Intel to Set Up R&D Center in Korea cedures. SKT said that an average of 2,000 customers visits the SKT center each The global IT player Intel will day for the roaming service (based on establish a R&D center in Korea. data gained up to February of 2004), A representative at Intel Korea plus, the addition of the new roaming said on March 8 that the centers will reduce waiting time for cus- company plans to establish a 20- tomers. member research & devel- Currently, SKT provides a roaming opment center in Korea. So we service that allows its subscribers to use are looking for a place to locate SKT said on March 3 that it has their mobile phones and mobile it.” installed two roaming centers at the numbers when they fly overseas to 13 Intel Korea said that the Intel’s Incheon International Airport’s duty-free countries (the US, China, Japan, R&D institute in Korea will focus shop area and the Gimpo Airport’s Thailand, Hong Kong, Taiwan, Guam, on developing an advanced International Flight building, bringing its Saipan, Australia, New Zealand, wireless telecom technology and total to five roaming centers located at Canada, Mexico and Peru). SKT also next-generation platform tech- three airports in Gimhae, Gimpo and provides a rental phone service, where nology for content application. Incheon. people rent mobile phones before their Intel Korea signed a MOU with Air passengers can receive the flight to overseas countries: This service the ETRI on March 8 to jointly roaming service at the SKT center is available for its subscribers flying to develop home-network tech- located at the airport’s duty-free shop 160 countries. nology. areas after undergoing immigration pro-

Webzen Launches Commercial Online ‘Mu’ Game in Japan

Webzen(www.MuOnline.co.kr) plans improved its image through its online Japanese gamers were invited to a to launch a commercial 3D online ‘Mu’ and offline marketing events, as well as, Webzen-hosted seminar so that they game service on February 27 in Japan a series of revisions and server settings can meet ‘Mu’ developers. A series of following its successful commercial to fit the local need of Japanese offline events has successfully taken launch of ‘Mu’ in Taiwan and China. gamers. place at NetCafes within Japan In Japan, ‘Mu’ recorded the largest Webzen has paid attention to local- accumulated number of 300,000 online ization of its online game to satisfy the playing members and the biggest simul- desire of Japanese gamers. For taneous access hits among its beta instance, ‘Tamajjang,’ which has online services. become a mascot of luck in Japan, after In February, 2003, Webzen signed a it took by storm Tama River of publishing agreement with its local Kanakawa Perfecture, has been suc- partner Gameon. Webzen has since cessfully introduced into the Webzen’s provided a free ‘Mu’ service’ and online game for Japanese gamers. � Webzen’s “Mu.”

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