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e-Transformation of Korea

e-Transformation of Korea. June 30, 2010 WB Workshop in Belarus. Kyung-yeon KIM. IT Status in Korea Achievement Future Direction Success Factors. Korea ’ s IT status in the world.

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e-Transformation of Korea

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  1. e-Transformation of Korea June 30, 2010 WB Workshop in Belarus Kyung-yeon KIM

  2. IT Status in Korea • Achievement • Future Direction • Success Factors

  3. Korea’s IT status in the world “Korea achieved a miraculous development in ICT for four decades and does not need any more advice” (April. 2003) ITU Report “South Korea, the world's most wired country, is rushing to turn what sounds like science fiction into everyday life. ” (April 2, 2006) The New York Times < Korea’s status in international digital preparedness indexes> Un e-Government Development Index 1 [192] Un e-Participation Index 1 [192] 3

  4. Changes in Social Sectors Sectors Key Changes Basis for IT Revolution ECONOMY knowledge-based economy • IT industry portion enlarged • New industry emerged • Spread of e-Commerce DIGITALIZATION • Unification of Natural Signal • Unlimited Repetition SOCIETY Emergence of e-Life • Cyber Colleges • e-Work • Digital Music, Online Game • Online Communities CULTURE Creation of new culture NETWORKING • Online Space • Easy Penetration of Information • Online Decision gathering • Online Activities of • National Assembly POLITICS Promotion of public participation in politics

  5. IT Status in Korea Achievement Future Direction Success Factors

  6. Personnel Reduction: 8,984 persons reduced in 9 cases • e-Customs: 4,279 persons($181 million) • Online Certificate issuance: 2,131 persons ($92 million) • e-Portal: 1,080 persons ($16 million) Budget Saving : $1 billion saved in 6 cases • Local e-Government : $543 million saved • G4B : $223 million saved • National Computing & Information Agency : $157 million saved Socio-economic effect : $16 billion of cost savings in 9 cases • e-Procurement : $4.8 billion saved • e-Trade : $2.7 billion saved • e-Construction : $1.6 billion saved Key Achievements in Figures

  7. Comparing Before/After E-Procurement Transaction Volume Off-line Civil Document Issuance Disaster Alert USD 46.7B 35 min 440M USD 38.2B 5min 150M <’06> <’03> <’06> <’03> <’07> <’03> Export/Import Cargo Processing Complex Civil Petition Processing e-Tax Returns 44 days 82.6% 5.5 days 15 days 3.6 days 39.1% <’07> <’07> <’03> <’03> <’06> <’03>

  8. Online Citizen Participation • Citizens participate in policy-making more actively and suggest opinions more freely - Scattered windows of civil petitions integrated, laws and regulations revised Efficient citizens participation • E-Voting system pilot project carried out in 2005 • Civil petitions & proposals processed online • - Complicated petition : 44days(’05) 13days(’06) • - Common petition : 30days  7days Transparent administrative work • Easy access to government-owned information through the online disclosure system for citizens • - 53% of administrative information disclosures are made by online www.epeople.go.kr

  9. Rate of e-filing 83.4% 46% ’03 ’09 Home Tax Service Tax payers can manage any tax-related business via Internet or mobile phones - More than 83% of tax filing, 77% of certificate issuance are processed online(2009) Taxpayers’ participation increased • Tax deduction incentive for online tax returns • Details of individual credit card information provided online Productivity and transparency improved • Monotonous work and failures in manual handling decreased • Face-to-face confrontation between taxpayers and officials decreased Citizen-oriented service provided • Services diversified in tax returns, payment, notice, certificate issuance, etc. • Mobile services on notice, or status information

  10. Information Network Village • IT infrastructure established and IT education provided to rural regions - 370 information network villages established, creating IT friendly environment in rural regions IT infrastructure established • High speed internet subscription rate: 9.1% → 66.5% • 6,297 PCs provided to schools, local governments, public agencies, information network villages • PC penetration rate: 37.3% → 72.1% Online commerce vitalized • Selling 7,500 kinds of local specialties through online: $1.4M (2005) → $11.2M (2009) • Local specific contents, web portal, shopping, community, etc. services provided

  11. e-Procurement Service • All bidding procedures are now processed online in a one-stop process • Online bidding: 93%, Online purchase of goods: 99.6% (2007) • Users: 170,000 businesses and 35,000 agencies Enhanced Efficiency • Information on all public biddings • One-time registration for bidding for all agencies and bidding documents submitted online • Yearly saving of $4.5 billion USD, bidding time reduced from 0.5 days to 1 minute Enhanced Transparency • Bidding and contract information open • Real-time checking of procurement processing • Reduced face-to-face meeting by work procedure • automation www.g2b.go.kr

  12. Faster Passenger flow e-Customs Service • World’s best customs administration by process innovation and informatization - Ex/import declaration, in-port, freight management, drawback, etc. Time reduction • Export: more than 1 day → within 2 minutes Import: 2.5 hours → 1.5 hours • ※ United Nations Conference on Trade and Development (UNCTAD) recommends 4 hours • 40 minutes (2003) → 25 minutes (2007) • Yearly saving on online customs processing are up to $2.5 billion USD • ※ International Civil Aviation Organization (ICAO) recommends 45 minutes http://portal.customs.go.kr

  13. IT Status in Korea Achievement Future Direction Success Factors

  14. Smart Office for Public Agencies Build and upgrade telecommuting and teleconference systems to create proper remote working environment and reduce traffic demand which will result in further energy savings

  15. Realizing Smart Lifestyle Foundation for green growth with the application of highly-advanced technologies to everyday life such as digital education, IPTV telemedicine services, RFID wastes, etc. Digital Textbooks Telemedicine Service Medical Service through Visits Textbooks Institutions Remote Education Life Now Smart Lifestyle Smart ICT Hospital Health Monitoring Wastes RFID Based Food Waste Treatment Apparatus Monitoring and Recycling Wastes

  16. IT Status in Korea Achievement Future Direction Success Factors

  17. Background of IT emphasis in Korea • Paradigm shifts : Korea’s vision for a knowledge-based information society • High contribution of IT to world economic growth • Strategic Tool for ‘Government Innovation’ • “ IT was and is the greatest enabler for reinvention” (Al Gore) • transforms the nature of public service delivery • “Select & Focus” “The only viable alternative for Korea is IT”

  18. Critical Success Factors Relevant and Responsive Arrangement • Comprehensive and systematic approach for IT deployment • Executive leadership, Legal Framework and National Master Plan Timely adjusted IT policy according to environmental change Strategic Option and Concentration • Prioritize the information database to others for applying advanced system • Top-down / ‘Invest in advance, and then settle’ approach Active expansion of informatization base with culture • Capability in early adoption of new technology, high enthusiasm in education, wide penetration of ‘PC labs’ (cyber cafes) Strategic Partnership Active expansion of informatization base with culture • Promote competition in the market • Establish the Information Promotion Fund

  19. Thank you ! Kyung-yeon KIM Senior Manager, kykim@nia.or.kr National Information Society Agency

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