 About
Korea
 Telecommunication
Infrastructure.
 Privatization
and
deregulation.
Internet
Activity.
 Electronic
Commerce.
 Hardware
Manufacturing.
Software
Development.
IT
usage by households,
business,
government,
and
military.
IT
labor market.
IT
geographics.
IT
financing.
Government
policies.
Legal
environment.
Analysis:
IT strength and
weakness.
Analysis:
Impact on the
Business.
Sources
and links.
About
the author.
IT
Landscape in Nations
|
IT in Korea
Telecommunication Infrastructure
Overview
Up to the 1980s, Korean government didn't take a
serious view of telecommunication industry. There were only 2,705,000
telephones and teledensity was 71 telephones per 1000 people in 1980. [1]
However, Korea is now one of the most advanced countries in the world in
terms of infrastructure and usage of telecommunication. With the
support from the government and intensive R&D programs, telecommunication
industry is now experiencing unparalleled innovation and growth.
Teledensity of Korea exceeds 444 per 1000 people in 1997. Cellular
phone subscribers are signing up at a fast rate, almost doubled every year,
and number of subscribers exceed 9 million in October 1999. In 1995,
KOSAT 1, which is Korea's first satellite, was launched and providing services
such as direct broadcasting services (DBS), high speed leased line services,
trunk transmission, paging relay services, and other new services using
the satellite network. [2]
Fiber Trunks and Submarine Cables
Started from the 1980s, Korea expended optical fiber
cables and submarine cables between major cities and other nations.
In 1983, optical fiber cable system was built for the first time
in Korea. [3]
It linked between Kuro, Seoul, and Inchon. Domestic submarine optical
fiber cable system between Kohung and Che-ju Island, which is located in
southern part of Korea, was built in 1990. Also, an international
submarine optical cable network, which is link between Korea, Hong Kong,
and Japan, was constructed in 1990, and construction of a new large
capacity submarine optical cable which is called TPC4 was completed in
1992. In major cities, optical fiber cable trunk networks have been
established between telephone offices and subscribers in large populated
areas.
Satellite
To provide high speed and quality of international
telecommunication services, KT has started to operate satellite earth station
and launched Koreasat 1, which is the first Korean satellite, in 1995.
After launching the Koreasat 1, Koreasat 2 launched to provide communications
service such as remote video conferencing in 1996, and started to
provide direct broadcasting services (DBS), high speed leased line services,
and trunk transmission via Koreasat 1. [4]
Digitalization and Integrated Services Digital
Network (ISDN)
All telephone switching systems were digitalized
in 1994, and all domestic telephone lines were digitalized in 1996.
KT opened optical cable networks to subscribers in 1992, and started
ISDN commercial service in 1993. [5]
Table1.Telephone Supply Rate. [6]
| Classification |
Unit
|
1997
|
1996
|
1995
|
1994
|
1993
|
|
Facilities
|
(thousand)
|
23,841
|
22,790
|
21,684
|
20,783
|
20,141
|
|
Digital
|
( %)
|
66.7
|
65.2
|
63.4
|
61.8
|
58.8
|
|
Telephone Subscribers
|
(thousand)
|
20,422
|
19,601
|
18,600
|
17,647
|
16,633
|
|
Business
|
(thousand)
|
4,936
|
4,250
|
3,854
|
3,520
|
3,179
|
|
Households
|
(thousand)
|
15,486
|
15,351
|
14,746
|
14,126
|
13,453
|
|
Telephone Supply Rate
|
(Subscribers per 1000)
|
444
|
430
|
415
|
396
|
378
|
|
Number of Public Telephones
|
each
|
423,502
|
339,240
|
327,839
|
305,272
|
285,133
|
|
Supply Rate of Public Telephones
|
Number of public telephones per 1000
|
9.2
|
7.5
|
7.3
|
6.8
|
6.5
|
Source:
National Statistical Office
Table 2. Telephone Supply Rate.(Subscribers
per 100)
|
Classification
|
1988
|
1989
|
1990
|
1991
|
1992
|
1993
|
1994
|
1995
|
1996
|
89-96 Average Growth Rate
|
|
Korea
|
25.0
|
28.3
|
31.5
|
34.3
|
36.3
|
37.8
|
39.5
|
41.2
|
43.0
|
7.1%
|
|
U.S.
|
49.6
|
50.6
|
50.9
|
51.5
|
56.5
|
57.4
|
60.1
|
62.5
|
64.2
|
3.3%
|
|
Average of European Countries
|
41.1
|
42.7
|
43.8
|
45.8
|
47.5
|
48.9
|
50.6
|
52.0
|
54.3
|
3.5%
|
|
Japan
|
40.6
|
42.2
|
43.8
|
45.1
|
46.4
|
46.9
|
48.0
|
48.8
|
49.1
|
2.4%
|
|
Singapore
|
34.5
|
36.6
|
38.4
|
40.3
|
42.3
|
44.6
|
47.2
|
50.2
|
54.4
|
5.8%
|
|
Taiwan
|
24.6
|
27.8
|
31.0
|
33.3
|
35.7
|
38.0
|
40.2
|
43.1
|
46.6
|
8.3%
|
Table 3. Number of Mobile Telecom,
Radio Paging, PC online Service Subscribers. [7]
| Classification |
1997
|
1996
|
1995
|
1994
|
1993
|
|
Mobile telephone subscribers
|
6,828,169
|
3,180,989
|
1,641,293
|
960,293
|
471,784
|
|
Per 1000
|
148.47
|
69.84
|
36.40
|
21.51
|
10.68
|
|
Radio paging subscribers
|
3,304.7
|
2,787.1
|
2,141.9
|
1,424.7
|
599.3
|
|
Per 1000
|
330.47
|
278.71
|
214.19
|
142.47
|
59.93
|
|
PC online subscribers
|
3,117,553
|
1,711,013
|
718,188
|
427,623
|
216,192
|
|
Per 1000
|
67.79
|
37.57
|
15.93
|
9.58
|
4.89
|
Source:
National Statistical Office
Table 4. Cellular Phone Subscribers per
100.
|
Classification
|
1988
|
1989
|
1990
|
1991
|
1992
|
1993
|
1994
|
1995
|
1996
|
89-96 Average Growth Rate
|
|
Korea
|
0.05
|
0.09
|
0.19
|
0.38
|
0.62
|
1.07
|
1.85
|
3.64
|
6.98
|
86.7%
|
|
U.S.
|
0.84
|
1.41
|
2.11
|
2.99
|
4.32
|
6.21
|
9.26
|
12.83
|
16.57
|
45.5%
|
|
Average of European Countries
|
0.44
|
0.64
|
0.89
|
1.10
|
1.53
|
2.37
|
3.79
|
5.61
|
7.83
|
43.5%
|
|
Japan
|
0.19
|
1.40
|
1.70
|
1.11
|
1.38
|
1.71
|
3.47
|
9.36
|
21.46
|
86.3%
|
|
Singapore
|
0.41
|
0.97
|
1.69
|
2.99
|
4.34
|
6.41
|
8.37
|
10.74
|
14.96
|
59.8%
|
|
Taiwan
|
0.15
|
0.24
|
0.41
|
0.96
|
1.85
|
2.57
|
2.77
|
3.62
|
4.52
|
58.2%
|
Table 5. Number of Leased Lines. [8]
|
Classification
|
1997
|
1996
|
1995
|
1994
|
1993
|
|
Number of Subscribers
|
528,686
|
481,984
|
511,520
|
447,765
|
382,859
|
|
Local
|
457,107
|
399,929
|
443,940
|
385,192
|
328,107
|
|
Long-Distance
|
71,169
|
81,595
|
67,352
|
62,372
|
54,534
|
|
International
|
410
|
460
|
218
|
201
|
218
|
Source:
Ministry of Information and Communication
Table 6. PC Online Services, Internet Hosts
and CATV/TVs. [9]
|
Classification
|
Unit
|
1997
|
1996
|
1005
|
1994
|
1993
|
|
PC Online Services Subscribers
|
(thousand)
|
3,105
|
1,711
|
740
|
578
|
435
|
| |
Per 100
|
6.8
|
3.8
|
1.6
|
1.3
|
1.0
|
|
Internet hosts
|
Each
|
131,005
|
73,191
|
35,644
|
13,854
|
7,650
|
|
CATV Subscribers
|
(thousand)
|
7,470
|
6,523
|
7,053
|
5,320
|
4,509
|
| |
Per 100
|
16.2
|
14.4
|
16.6
|
11.9
|
10.2
|
Source:
Ministry of Information and Communication
Table 7. Subscribed Lines in Public
Network. [10]
|
Term: 1997
|
DACOM Network Services
|
HiNet-P Services
|
|
Subscribed lines in public network
|
12,509 lines
|
12,833 lines
|
|
Private enterprise
|
1,883 lines
|
3,710 lines
|
|
Public Organization
|
3,622 lines
|
1,356 lines
|
|
Educational R&D institutes
|
208 lines
|
330 lines
|
|
Financial intermediaries
|
1,461 lines
|
1,480 lines
|
|
Press & media
|
52 lines
|
287 lines
|
|
Service
|
5,063 lines
|
4,100 lines
|
|
Others (Personal)
|
401 lines
|
1,570 lines
|
Source:
National Statistical Office
Table 8. Total Payment on Import of Telecommunication
Technology. [11]
|
Classification
|
Unit
|
1997
|
1996
|
1995
|
1994
|
1993
|
|
Total Technology Imports
|
Cases
|
173
|
189
|
236
|
430
|
707
|
|
Telecommunication
|
Cases
|
7
|
0
|
2
|
26
|
15
|
|
Total Payment
|
Million
|
$2,414.6
|
$2,297.3
|
$1,947
|
$1,276.6
|
$946.4
|
|
Telecommunication
|
Million
|
$19.0
|
$43.5
|
$29.2
|
$19.5
|
$21.7
|
|
Percentage
|
%
|
0.79
|
1.89
|
1.50
|
1.53
|
2.29
|
Source:
National Statistical Office
Table 9. Total Receipts on Export of Telecommunication
Technology. [12]
|
Classification
|
Unit
|
1997
|
1996
|
1995
|
1994
|
1993
|
|
Total Technology Export
|
Cases
|
71
|
85
|
123
|
129
|
105
|
|
Telecommunication
|
Cases
|
3
|
0
|
3
|
|
9
|
|
Total Receipts
|
Million
|
$162.9
|
$108.5
|
$112.4
|
$110.9
|
$45.1
|
|
Telecommunication
|
Million
|
$5.8
|
$0.0
|
$5.6
|
$4.2
|
$0.9
|
|
Percentage
|
%
|
3.56
|
0.02
|
4.98
|
3.79
|
2.00
|
Source:
National Statistical Office
Domestic Telecommunication Services
Providers.
In 1981, Korea Telecommunications Authority
(hereinafter "KT") was established by Korean government to provide
telephone and telegraph services to the public. The KT, which
was strictly controlled and managed by the government, has started
to integrate nation's communications networks and develop national telecommunication
services by implementing active R&D programs and developing advanced
technologies since 1981. As a result, an optical fiber cable system
was opened for the first time in Korea between Seoul and Inchon in 1983,
and an international submarine optical cable network, which is connecting
Hong Kong, Japan and Korea was constructed in 1990. [13]
In 1982, the Data Communications Corporation
was established in 1982 with the government's effort of promoting data
communication business. Purpose of establishing the company was to
provide data communication services such as information database service
and Value Added Network service. The Data Communications Corporation
changed its name to DACOM in 1991, and started to provide international
and long-distance call services in 1992. [14]
The Korea Mobile Telecommunications Services
Co. Ltd. was established and began to provide car phone and paging services
in 1984. In 1988, the company changed name to the Korea Mobile Telecommunications
Corporation (KMT) and began to cellular phone service. Since 1994,
the SK group has started to participate management of the company as a
major share holder. Finally, the KMT joined the SK group and changed
name to SK Telecom Co. Ltd. in 1997. Meanwhile, numbers of cellular
phone and paging subscribers reached 1 million and 4 million in 1995.
In 1999, numbers of cellular phone subscribers in Jan, March, August, October
reached 6 million, 7 million, 8 million, 9 million respectively. [15]
Table 10. Domestic Telecommunication
Services Providers.
|
Communication Type
|
Service Classification
|
Service Provider
|
|
Wired
|
Long Distance Call Services
|
KT
DACOM
Onse Telecom
|
| |
International Phone Call Services
|
KT
DACOM
|
|
Wireless
|
Cellular Phone Services
|
SK Telecom
Shinsegi Telecom
|
| |
Personal Communication Services (PCS)
|
Hantong Freetel
Hansol PCS
LG Telecom
|
| |
CT-2
|
KT
|
This report was completed in December 1999
for the class
Impacts of National Information Technology
Environments on Business
taught in the program of the MOGIT
(Management of Global Information Technology)
at the
Kogod School of Business at American
University in Washington, D.C.
|