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History of Internet in Korea� 8 Infographic 12 Top 10 Internet News of 201�6 18 G P R N 11-B551505-000008-10 [Naju Office] Korea Internet & Security Agency (KISA) 9 Jinheung-gil, Naju, Jeollanam-do, 93000 Republic of Korea (58324) TEL : 82-1544-5118 [Seoul Office] IT Venture Tower, 135 Jungdae-ro, Songpa-gu, Seoul, Korea, (05717) TEL : 82-2-405-5118 [Branch (Seocho Office)] Seocho-ro 398, Seocho-gu, Seoul, Korea (06619) TEL : 82-2-405-5118 9 791186 720066 www.kisa.or.kr ISBN 979-11-86720-06-6 Notes The numbers in the tables of statistics are rounded; therefore, the totals indicated may differ the actual sum of all values. The 2017 Korea Internet White Paper is a collection of the domestic and international issues and trends of 2016. 2017 Korea Internet White Paper | Message from the Publisher “Faced with the transition to an intelligent information society, we must determine the direction of our distant future.” Futurist Kurzweil predicted in his book Singularity is Near that by the "law of accelerating returns," there will be an exponential increase in the speed of development, and thus the speed of development in the 21st Century will be 1,000 times that of the 20th Century. The incredible development speed can be experienced firsthand in our reality, beyond just theories in textbooks. Before we have even overcome from the shock of Alpha Go, which made us think "machines are better than humans," we are facing a more evolved Alpha Go and AI technology in our daily lives. We have gone from treating machines as something that provides assistance to humans to asking ourselves with fear: "In what area could humans possibly be better than machines?" The next 10 years will be a critical era to determining the survival and perpetuation of the human race for the next 100 years. As humans who will have to live in an intelligence information society where social and economic systems will be based on Artificial Intelligence instead of ICT in the near future, we must lay out our future directions before it is too late. As a measure to realize a humanistic intelligence information society, the Ministry of Science and ICT and Korea Internet & Security Agency have established and are carrying out tasks concerned with responsible technology, equal access, fair competition, information sovereignty, ethics and dignity, protection and utilization, and data protection/security management. The 2017 Internet White Paper, the 18th white paper from our institution, diagnoses the basic issues for the future internet era and goes through related policies and technical suggestions with the initiative of planning for a human-oriented future society. In particular, it goes into depths on industries of the future like artificial intelligence, block chain, etc. and it has strengthened its part on the economic and legal aspects such as improving regulations for the development of convergence industry. I trust that the white paper will serve its purpose as valuable material that helps with preparing the future, and that through this we can accelerate the growth of the national economy and become a central country of the Fourth Industrial Revolution. I express my gratitude to the writers, editors, and the related personnel who have given this white paper all their time and effort. President of Korea Internet & Security Agency Kim Suck-hwan 2017 Korea Internet White Paper Message from the Publisher 3 History of Internet in Korea 8 Infographic 12 Top 10 Internet News of 2016 18 Part 1 1. Internet Economy 30 A. Data Economy 30 Industry B. Platform Economy 31 C. Internet Startup 32 and Service 2. Internet Industry 34 A. Status of the Internet Industry 34 B. e-Payment Services 36 C. Financial Services 37 D. e-Commerce 38 E. O2O and Sharing Economy 40 F. Online Advertising 42 3. Internet Service Convergence 44 A. IoT 44 B. Cloud 44 C. Artificial Intelligence 46 D. Virtual Reality 47 4. Internet Information Service 50 A. Search Engine 50 B. Communications 51 C. Contents 54 D. Internet Media 64 E. Location Based Service (LBS) 65 F. Big Data Service 66 G. Mobile Application 68 5. Internet Service in the Public Sector 70 A. Services for the General Public 70 B. Services for the Private Sector 71 Part 2 1. Internet Usage 76 A. Individual and Household 76 Utilization B. Business 79 2. Internet Environment 80 A. Improving Internet Environment 80 B. Internet Culture 82 3. Internet Service Convergence 89 A. Data Protection 89 B. Personal Information Protection 91 Part 3 1. Internet Infrastructure 96 A. Backbone Network 96 Infrastructure B. Subscriber Networks 98 C. Research Networks 100 D. Next-Generation Internet 103 2. Internet Address Resource 105 A. IP Addresses and AS Numbers 105 B. Domain Names 106 C. Domain Name System (DNS) 107 3. Internet Technology 109 A. Standardization Trend 109 B. Authentication Technology 111 C. Certified e-Document Center and Certified Electronic Address 113 4. Legal System For Internet 115 A. Internet Promotion 115 B. General Information Protection 116 C. Personal Data Protection 118 D. User Protection 119 E. Internet Regulations 119 1. Internet Governance 124 Part 4 2. Cooperation on International Data Protection 126 International 3. Cooperation on Personal Data Protection 127 Cooperation 4. International Internet Status 129 A. Internet Usage 129 B. International Index Status 132 List of Major Internet-related Organizations 136 Appendix List of Domestic ISPs(as of March 2017) 138 Abbreviations 143 Organization Abbreviations 146 About the KISA 149 2017 Korea Internet White Paper | Table [Table 1-1-1] Volume of Data Industry 31 Revenue of Online Comics Production and [Table 1-4-11] 62 Distribution Businesses AI Platforms by Top Three [Table 1-1-2] 32 Telecommunications Businesses [Table 1-4-12] Web-Drama Accumulative Ranking 63 Commercialization and Investment Result Permit Issued / Registration of Domestic [Table 1-1-3] 33 [Table 1-4-13] 66 of K-Global Startup LBS Providers (As of 2016) [Table 1-2-1] Classification of the Internet Industry 34 2016 Market Volume for Big Data [Table 1-4-14] 67 According to Market [Table 1-2-2] Revenue of Domestic Internet Industry 35 [Table 1-4-15] Revenue of Domestic App Market by Store 68 [Table 1-2-3] Revenue of Internet Base Industry 35 Internet Services for Enterprises in the [Table 1-2-4] Revenue of Internet Support Industry 35 [Table 1-5-1] 72 Public Sector [Table 1-2-5] Revenue of Internet Application Industry 36 Informatization for Marginalized Groups [Table 2-2-1] 83 [Table 1-2-6] 37 Compared to Average Citizens By Year Number of Users Registered at Internet [Table 2-2-2] Trend in Cyber Criminals 84 [Table 1-2-7] Banking of Financial Institutions (Based 38 Reviews by the Korea Communications on Year-end) [Table 2-2-3] 87 Commission Number of Uses Registered at Mobile [Table 1-2-8] 38 Detected Websites With Malicious Code Banking of Financial Institutions [Table 2-3-1] 90 By Year Volume of Online Shopping Transactions [Table 1-2-9] 39 Comparison Between BcN and Giga (2013∼2016) [Table 3-1-1] 99 Internet Service Volume of Retail Sales and Online [Table 1-2-10] 39 Number of Internet Addresses Per Shopping Transaction(2013~2016) [Table 3-2-1] 105 Country (as of 2017. 4) Counseling and Dispute Resolution of [Table 1-2-11] 40 Number of Registered National Domains e-Commerce by Year [Table 3-2-2] 107 (as of 2017. 5) [Table 1-2-12] Sharing Economy Service 42 Dispute Resolution Registered to Internet [Table 3-2-3] 107 Volume of Domestic Advertisement Address Dispute Resolution Committee [Table 1-2-13] 43 Market Main Activities of Internet-Realted ICT [Table 3-3-1] 110 Average Revenue Per Broadcasting Standardization Forum [Table 1-4-1] 55 Company and Employee (2014) [Table 3-3-2] Distribution of Alternative Means For RRN 112 Revenue of the Online Digital Market [Table 1-4-2] 56 Volume of e-Documents at the Certified within the Movie Industry [Table 3-3-3] 114 e-Document Center [Table 1-4-3] Domestic Animation Industry 57 Enactment and Revision of [Table 3-4-1] 115 Average Revenue of the Animation Internet-related Laws(2016. 1~2017. 3) [Table 1-4-4] Industry per Business and Employee (as 58 Revision Status and Major Points of the of 2015) "Act on Promotion of Information and Revenues of Online Music Distribution [Table 3-4-2] Communications Network Utilization and 117 [Table 1-4-5] 58 Businesses Information Protection, Etc." (2016~2017. [Table 1-4-6] Domestic Game Industry Status 59 5) Revenue per Business in the Game Internet Usage Rates and High-speed [Table 1-4-7] 60 [Table 4-4-1] 130 Industry Internet Subscription Rates [Table 1-4-8] Revenue of e-Learning Service Providers 61 [Table 4-4-2] Korea Ranking in ICT Related Index 132 ICT Development Index Ranking (based [Table 1-4-9] e-Learning by Consumers 61 [Table 4-4-3] 133 on the year presented) [Table 1-4-10] Domestic Comics Industry 62 2017 Korea Internet White Paper | Table Rates of Recognition, Usage, and Usage Male/Female Internet Usage and User [Figure 1-2-1] 41 [Figure 2-1-3] 77 Intention for O2O Services Count (over 3 years old) First Plans for Cloud Development and Internet Usage and User Count By Age [Figure 1-3-1] 45 [Figure 2-1-4] 78 Public Tasks Group Global Artificial Intelligence Sales Average Hours of Internet Usage (for [Figure 1-3-2] 47 [Figure 2-1-5] 78 (2016~2025) people over 3 years old) [Figure 1-3-3] Domestic VR Market Outlook 48 [Figure 2-1-6] Household Internet Usage 79 QC Market Share of Domestic PC Search ActiveX Usage for Top 100 Domestic Web [Figure 1-4-1] 50 [Figure 2-2-1] 81 Engine Sites QC Market Share of Domestic Mobile Trend in Smartphone Addiction By Year [Figure 1-4-2] 51 [Figure 2-2-2] 85 Search Engine / Age Group [Figure 1-4-3] Weekly SNS Usage 52 Reports on Infringement of Personal [Figure 2-3-1] 92 Information [Figure 1-4-4] Weekly SNS Hours 52 Connection Network Structure by IX (as [Figure 1-4-5] Last Used Instant Messaging 53 [Figure 3-1-1] 97 of 2017.
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