e-Gov & Information Society of Korea

- Strategies and Best Practices 3 May 2011

Hyeon-Kon(HyKon) Kim

khk@nia.or.kr

Executive Director, National IT Policy Division

NIA, National Information Society Agency, Korea

Table of Contents

2/40

Journey of e-Nation & e-Government

Current Status & Evaluation

Success Factors & Lessons

Best Practices of e-Gov & e-Nation

Future of e-Gov & Information Society

Challenges & Strategies for Future Success

Uruguay and Korea

KOREA

URUGUAY

3/40

Dream 2000 in 1965

Dream
Comes to
Reality!

4/40

Presidents, IT Supporters: No Exceptions

Park Chunghee

Kim, Young-Sam

(1963~1979)

(1993~1998)

Targeting IT industry

Information Superhighway

TDX project

CDMA service

R&D infrastructure

Informatization framework

Chun Doo-Hwan

Kim, Dae Jung

(1980~1988)

(1998~2003)

TDX success

Targeting IT sector again

National Basic Information

System Project

Internet & Broadband

Rho, Tae-Woo

Roh, Moo-hyun

(1988~1993)

(2003~Present )
e-Government
for Gov Reform

CDMA standard
Telecom service
privatization
5/40

u-Korea

e-Government

Lee, Myung-bak
(2008~Present )
Presidential IT
Strategy Committee
Smart Work

Brief History of Koreas IT Policy

1987

1995

2001

2006

Basic Infra

Internet

IT Service

Ubiquitous

TDX & telephone

National Basic
Information
System
Semiconductor
CDMA
Public support

IT Framework
Act
MIC & IT Fund
Internet
Broadband
Mobile
Economic
Crisis and IT
Investment

e-Government
integration
Internet Biz
Cyber
community
IT dependent
economy

u-Korea Vision
IT productivity
Services
industry

6/40

2010

Smart
Smart Work Strategy
IT Utilization
Smart Korea Vision

IT Diffusion and Social Change

IT Policy & Its Outcome: Information Society of Korea
1987

1995

National Basic
Info System(87~96)

2001

IT Promotion Act(95)
Korea Info Infra(95~ )
InfoSociety Plan(96~00)
Cyber Korea 21(99~02)

2011

e-Korea Vision 2006(02~06)

Broadband IT Korea 2007(03~07)
IT839 Strategy
u-Korea Masterplan(2006-2010)
IT Korea Masterplan(2008-2012)

Telephone
10M

NatioanlDB
(Resident..)

KII
Masterplan

PC 10M
Internet
User 10M

Internet
Banking
10M

Broadband
Subsciber
10M

1987

1991

1995

1999

2001

2002

PC: 30M
Internet: 37M
Broadband: 16M
Mobile: 50M
eBanking: 59M
eStock: 59%
eSign: 22M

2011

Digital Opportunity Index (DOI): World Number 1!, ITU, 2005-2007

UN e-Government Development Index: 1st out of 192 countries
Korea is like a Big Lab leading digital age, Eric Schumidt, Google
7/40

IT Diffusion and Social Change: eBanking

Internet banking has changed banking business itself!
(%)

50
40

(Internet Banking) 36.7

O ffline Co unter

30

27.0

CD/ATM

25.0

Internet B anking

20

11.4

Telebanking

10
0
'02.6

Number of
transactions

8/40

12

'03.3

12

'04.3

12

05.3

12

06.3

12

IT Diffusion: Future Forecasting in 2005

2000

2005

2010

Internet Users

44.7%

71.9%

More than 95%?

Portable PC Sales

12.3%(1999)

24.4%

36.3%(2008)

High Speed Internet Users(World)

13.1M

179.5M

430M

Telematics-equipped Car(World)

4%

35% (100% in Korea)

BcN Subscribers

2M

20M

DTV

2.9M

1 DTV/Household

Digital Home

1,300

10M(2007)

Intelligent Robot

1 Robot/Household

Wireless Broadband(WiBro)

0.7(2006)

8.85M

Surprisingly Almost Done!

9/40

Our Journey: for e-Nation and e-Government

Phase 1: Basic Infrastructure & Digitization (1987-1996)
National Basic Information Systems
(DB & Network on Resident, Land & Buildings, Education, Banking, )

Phase 2: Process Informatization (1996-2000)

Informatization of Departmental Government Services

Phase 3: Integration & Cross-Agency Projects (2001-Present)

Integration of Key Government Processes & Public Services
Key Enablers for Government Reform
Phase 1

Digitize Government
Records
(Database Building)

10/40

Phase 2

The Use of IT
across
Government
Bureaus

Phase 3
Integrating Major
Government
Processes into a
Single Service

e-Government 11 Priority Initiatives: 2001-2002

Quality Public Service
Government Portal(G4C)
Social Insurance Service
Home Tax Service (HTS)

Transparent and
Efficient Government
National Finance Information
System
National Education
Information System
Personnel Policy Support
Local Administration System

G2C
G2B

G2G

Enhance Business
Environment
National e-Procurement System

Advanced Infra
e-Documentation
Digital Signature & e-Seal
Govt Information Systems Consolidation
11/40

e-Government Roadmap, 31 Projects: 2003-2007

2003

2007

Service

Integrated Contact Point

Dept1

Dept2

Unique
Function

Dept3

Dept3

Dept4

Dept1 Dept2

City/Province

City/Province

Municipality

Common
Process
Common
Platform
12/40

HR

HR

HR

HR

HR

Financial

Financial

Financial

Financial

Financial

Audit

Audit

Audit

Audit

Audit

System System System System System

N/W

N/W

N/W

Shared Use of Information

Integrated System

N/W

N/W

Dept3 Dept4

Municipality

HR System
Financial System
Audit System
Integrated IT Environment
E-Government Network

DeptN

New Vision: IT Korea Masterplan 2008-2012

National
Vision

Advanced Nation Standing Tall in the International Arena

Vision for
Informatization

Advanced Knowledge Information Society of Creativity and Trust

Efficient
Government
Objective

Strategy

13/40

Citizen Life
Enriched by
Digital
Technology

Government-led informatization
Disconnected & fragmented
Focused on positive aspects
Expansion-focused policies

Trustworthy
Information
Society

Creative Soft
Power

Advanced
Digital
Convergence
Infrastructure

Public-Private collaborative governance

Seamless and converged informatization
Active response to adverse effects of
informatization
Utilization-focused services for users

Where are we now?: e-Government Evaluation

Integration &
Transformation
Online
Transaction
Two-way
Interaction
Web
Presence

2011

2002

Ranked 15th(2002) 5th(2006) 1st(2010) out of 192 Countries

Source: UN, Benchmarking e-Government, 2002-2010
14/40

Success Factor1: IT Policy Framework

Enabling System
Legal Framework
Framework Act on Informatization Promotion (FAIP), 1996 Electronic Government Act, 2001Leadership
Organizational Arrangement
Informatization Promotion Committee & Subcommittees,1996 Presidential e-Government Committee, 2001- 2007
Presidential Information Society Committee, 2009Action Target
Implementation Framework
Departmental IT Action Plan (annual) and Evaluation, 1996 Broadband IT Korea Vision 2007
IT 839 Strategy 2004, u-Korea Masterplan 2006
e-Government Roadmap 2003-2007, IT Korea Masterplan 2008-2012
Central Budget
Funding Mechanism
Informatization Promotion Fund -> ICT Promotion Fund: $1B
Central Fund for e-Government (lump-sum): $100M-$300M
15/40

Success Factor2: High Demand Infrastructure

Breaking Year when New Technology Demand Dominates the Old
2003
MP3 Market >
Music Disc Market
1999
Mobile Phone
>Fixed Phone
2004
Internet Banking
>CD/ATM Use

2000

2005

Wireless Internet
>Wired Internet
Portable PC
>Desktop PC
Digital TV
>Analog TV
Internet Use
>TV Watching

2010

2015

Korean People: Early Adopter of IT, PpalyPpaly Spirit

16/40

e-Gov Evaluation From the World

Achieving the World Class e-Government
International Awards
KISS
: UN Public Service
Award (07)

Invil
: World e-Gov Forum
Award (06)

KONEPS
: WCIT Global
Excellence Award
(06)
17/40

Model Case Selection

HTS

International Certification
KIPOnet

: OECD e-Tax Best

Practice (06)

: WIPO IT Standard
(06)

OPPP
: Online Politics

UNIPASS
: ISO 9001, 20000

Trophy Top10 (06)

(06)

uTradeHub
: World Advanced

KONEPS
: UN/CEFACT Intl

in APEC Report
(06)

Standard (05)

Best Practice:

e-Procurement: NaraJangteo (NationalMarket)

All bidding procedures are now processed online in a one-stop process
Online bidding: 92%, Online purchase of goods: 99.6% (2005)
A Single System for both 116,183 private companies and 28,149 government agencies
Paper-based, manually-handled procurement works
raised the necessity to
improve efficiency and transparency

Enhanced Efficiency
Information on all public biddings
One-time registration for bidding for all
agencies and bidding documents submitted
online
Yearly saving of US$ 3 Billion, bidding time
reduced from 0.5 days to 1 minute

Glass-like Transparency
Bidding and contract information open
Open & Real-time checking of procurement
processing
Reduced face-to-face meeting by work
procedure automation

Awarded UN Public Service Award (PSA) in 2003

Recognized as an international standard by UN/CEFACT in 2005
Awarded the Global Excellence Award of the public sector in WCIT 2006
18/40

Best Practice:

Information Sharing for Better Services

Key administrative information related to peoples daily lives is computerized
- Residence registration, real-estate, vehicle, employment, etc.

Administrative Information Database

98% of major administrative information
already in database

Increased Convenience
Prompt administrative services provided in
tax notice, certificate issuance, report, and
statistics

Improved Efficiency
One-stop service with information sharing
among administrative entities
Prompt and accurate administrative
processing

19/40

Best Practice:

Education Network & e-Learning: NEIS

To foster IT-literate manpower and improve educational environment:
- computer labs and computer related curriculums at elementary & secondary schools
- computerization of library system, academic resources & educational administration

Administrative Information Database

10M-50M communication-network supplied
to all 10,400 elementary and secondary
schools (100%)
1 PC per 5 students

e-Learning
Over 8,000 kinds of educational contents(ex.
Edunet) available for citizens
e-Learning popular at school

Efficient Education Administration

Online processing of educational affairs
Online issuance of documents (ex. Diploma)
20/40

Best Practice:

e-Customs: UNI-PASS
Worlds top-level custom administration being achieved through processinnovation and informatization since 1992
- Export/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

Passenger flow acceleration

to advanced level
40 minutes (2003) 15 minutes (2010)
International Civil Aviation Organization (ICAO)
recommends 45 minutes

Awarded WCO Trophy 2006

The Worlds first 100% electronic
declaration system for exports and imports
(96% and 90% in US and Japan, respectively)
21/40

Best Practice:

Patent Online: KIPOnet

Patent administration online including application, examination,
certificate service, etc.

Service available 24 hours, 365 days

Both domestically and internationally

Real-time processing information provided

Online Processing System for PCT

Online issuance of
certifications

patent charge
refund

PCT online
application

Authentication
Center

Worlds 1st to establish online processing

system for PCT
Worlds 1st to exchange online documents
with WIPO
In 2005, WIPO joined hands with Korea
in developing a system for worldwide use
KIPOnet will save US$ 1 Billion every year

PCT : Patent Cooperation Treaty

WIPO : World Intellectual Property Organization
22/40

Best Practice:

Home Tax System: HTS

Tax payers can manage any tax-related business via Internet or mobile phones

- More than 80% of tax filing, 60% of certificate issuance are processed online

Taxpayers participation increased

Tax deduction incentive for online tax
returns

Productivity and transparency improved

Monotonous work and failures in manual
handling decreased
Face-to-face contacts 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
23/40

Best Practice:

Government Portal: GovService24

Number of documents and visits have decreased through online civil service
- Civil information inquiry, petition & application, document inquiry and issuance, etc.

Civil information inquiry and application

Online information services for up to 5,000
kinds of inquiries
Online application: 410 kinds (2005)
592 kinds (2007)
- Online business registration, tax payment and
its certificates, factory registration, etc.

Online document inquiry and issuance

Issuance: 8 kinds (2005) 34 kinds (2007)

24/40

Best Practice:

Integrated Government IT Center

Separately managed information systems in the whole government departments have
been consolidated by establishing two Integrated Government IT Centers, as real-time
interchangeable dual backup services

Seamless & flawless

operation

Enhanced capability of
infringement management
IGIT Center

Dual system for natural

disaster relief

Common services
governmentwide
25/40

Best Practice: ASP or Rent IT for SMEs

Cloud Computing Services for 3 Million SMEs, started already in 2002
Target: 1 Million (33%) of SMEs by 2008, Monthly Fee 30 US$
No of

ASP Service Increase

Users (company)
700,000

890,000
600,000

730,000
665,934

500,000

577,946

400,000

431,270

300,000
245,190
200,000
100,000
0

26/40

166,225

146,658
109,327
108,181
67,256

15,656
02.3

Time
9

12

03.3

12

04.3

12

05.6

05.12

06.6

06.12

07.10

Best Practice Worldwide:

Centrelink, Australia

27/40

Best Practice Worldwide:

NHS, National Health Service, UK

28/40

Best Practice Worldwide:

e-Gov Action Plans & Targets, Singapore

29/40

Paradigm Shift: ICT & Value Creation

Value

ICT
ICT Development

30/40

Paradigm Shift: toward Smart Society

Information society

Smart Society

Feature of future society

Diffusion of Smart Technology
Virtual reality, Intelligent
Prosumer, Bio-economy
Changes toward Smart Value

Dream Society,
High concept/High touch

Increase in social vulnerability

Information security and privacy
31/40

Paradigm Shift: New Direction

Convergence of
system
technologies

Single Unit
System

CONVERGENCE
Change in Technological Environment

creation
accumulation
of information

Knowledge
utilization &
value creation

CREATIVITY
Change in Information Environment

32/40

Public-Private
Cooperative
Governance

Government led
policy

COMMUNICATION
Change in Policy Environment

Focusing on
growth and
individuals

communitycentric

TRUST
Change in Social Environment

IT, A Core Engine for Smart Innovation:

Everlasting Role in the Future
IT will be a driving force that fundamentally changes national and social systems,
leading mega trends of future economy and society
IT will be a core mean to proactively deal with uncertainty and crisis in the future

Ensure
Economic growth

Speed,
Convergence

Network
Proactive
globalization

33/40

Intelligent

IT potential

Two-way

Transcend
time and space

Expand
social capital

Advanced
social welfare

Enhanced
Human resources

Next-Generation e-Government: Future Image

As-Is

To-Be

Fragmented Services

Shared Services

Provider-oriented services
Partial automation of administrative work
tasks

Coordination among government agencies

Automation of government services

Electronic Services

Internet-centered, fragmented service

channels
Standardized simple services for the public

Ubiquitous Services

Functional Services

34/40

Function-oriented agency services

Services centered around the central
government

Service channels using portable electronic

devices
Individually-customized intelligent services

Citizen-centric Services

User - oriented services

Integrated services linked with local
governments

Next-Generation e-Government: Smart Gov

Customized service for every citizen, and my own government
Two-way government that evolves through communication with citizens
User

Change

As-Is

To-Be (Smart GOV)

Approach

Government-set rules
(limitation on service hours, designated public
office)

My rules
(24 hour service, regardless of region,
diversify media)

Usage of public offices

Visit several times (office or thru internet)

Summit same document for several times

1-time visit
Simultaneously perform related service

To receive benefit (such as

social welfare and aid)

Need eligibility proof or application by citizen

Service type

Customer-oriented service (general)

Workplace

Office (PC base)

Working at site

Record at office (headquarter)

Way of working
(disaster/safety, etc)

Recovery afterwards

Run communication counter

Combined counter
(transmit/distribute to the relevant agency)

Reflection to policy

Statistical/comprehensive reflection

Way of communication

One-way (Citizen Government)

Citizen

Government verifies eligibility before

providing aid
Individual-oriented service (customized)

Public
officer

Communication with
citizens

35/40

Regardless of location
(Smart work or mobile service)
Record/manage at site in real-time
Prevention & forecast
Consolidated counter
/direct registration
Selective direct reflectiton
Two-way
(Reply on result of reflection on policy)

e-Gov Evolution: toward iGov & sGov

mGovernment
Mobile

eGovernment
Electronic

or

tGovernment
Digital TV

36/40

iGovernment
Intelligent

sGovernment
Smart

Final Goal of e-Gov: Delete e and Move e!

The final goal of eGov, OECD

Delete e from eGovernment

Principles of eGov, Dubai
Move e from the front to the back

eGovernment Government Excellence

37/40

Strategies for Success: Basic IT Policy

Vision &
Target Setting

IT
Infrastructure

Priority
Programs

38/40

Human
Infrastructure

Top-level
Leadership

Funding
Mechanism

Strategies for Success: More Issues

39/40

Strategies for Success: Business-Oriented

e-Government

Smarter Government

Quantity

Quantity

Quality

Quality

Business
-Oriented

Use
Satisfaction
Easy/Convenient
Offline/Online

Use
Satisfaction

Not Just
Technology-Oriented!

Value Creation
Business-focused
All Stakeholders

Never
Changing
Principle!

Easy/Convenient
Offline/Online
Value Creation
Business-focused
All Stakeholders

Daily Activity

Daily Activity

Transparency/Responsiveness

Transparency/Responsiveness

User Trust
40/40

Kims 12 Conditions
for e-Gov Success

User Trust

e-Gov & Information Society of Korea

- Strategies and Best Practices -

Thank You