IT & Telecom

Strate gic Business

Development :
New Oppor tunities in Testing
Mar ket
1Q. 2010

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 Testing Market for Emerging Technologies in IT & Telecom

Dominant Design is the key technological designs that become a standard in

the market place.

S. Korea is the best place for testing commercial potentials of newly developed
innovative technologies in IT and Telecom. Once a new technology is
successful in S. Korea’s testing market, it could become a global dominant
design such as in the case of Qualcomm’s CDMA technology.

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 Commercialization as Dominant Design Strategy

Commercialization as Dominant Design Strategy is a strategic way to make

your innovative technology as a dominant design by forming a business
ecosystem.

TechIPm, LLC provides the strategy and business development consulting

services by launching your technology prototype in S. Korea’s testing market
base on more than 10 years business experiences in S. Korea.

©2009 TechIPm, LLC All Rights Reserved www.techipm.com 3

 National Strategy for 4G & Beyond 4G Mobile
Innovation

Korea Communications Commission" (KCC:

http://eng.kcc.go.kr/user/ehpMain.do) announced a press release that the first
priority for S. Korea's national
strategy in the global wireless telecommunication innovation competitions is to
develop integrated standardization of 4G mobile technology such as Mobile
WiMAX-Evolution, LTE-Advanced, and IMT-Advanced. KCC also set up a
strategic support plan for Beyond IMT-Advanced essential technology
development and IPR for the standard technology.

KCC's 4G & Beyond 4G Mobile Innovation plan is a part of S. Korea's strategic

policy for next generation wireless telecommunication innovation, in which
1.5 billion US dollars will be invested until 2013.

As a part of the KCC's strategic efforts, an online site (

http://www.spectrum.or.kr/) for supporting the implementation of flexible
spectrum policy will be launched.

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 National Strategy for Green IT Innovation

S. Korea's "Green Growth Committee"(http://www.greengrowth.go.kr/) said that

the first priority for S. Korea's national strategy in the global green IT innovation
competitions is to develop green IT technologies targeting the international
standards from the start.

According to the green growth committee's strategic planning, the S. Korean

government will invest 2 billion US dollars annually until 2012 for green
technology research and development (R&D).

As a part of the green growth committee's strategic efforts, a task force for the
public-private collaborations will be launched for the development of
international green IT standards and their IPR (essential patents).

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 Essential Patent Supporting Center

Korea Intellectual Property Office (KIPO) established the "Essential Patent

Supporting Center" as a part of an official organization for Korea Institute of
Patent Information (KIPI). The main role of the center is to support Korean
industry for developing IPRs for standardized technologies, especially in IT and
Telecommunications.

KIPO announced that the "Essential Patent Supporting Center" will be operated
as a public-private collaboration and will provide essential patent information
and expert consulting for promotion of Korean industries' global leadership in
IPRs for standardized technologies.

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 M2M: S. Korean Telco’s New Strategic Options

S. Korea’s major telecom service providers – SKT and KT – selected M2M as a

new strategic business option for the next generation profit center:

SK Telecom formed a new business division, ‘IPE (Industry Productivity

Enhancement)’ center, for the development of new M2M innovative
technologies and providing M2M based B2B services. SKT aims $20 B market
creation based on M2M services for conventional industry’s productivity
enhancement.

S. Korea’s largest Telco, KT, also plan to provide M2M based B2B services
using 3G mobile and Mobile WiMAX networks. The KT's M2M services are also
targeting several newly developing green businesses such as smart grids and
environment monitoring services.

In parallel with the private sector’s efforts, Korean government (KCC) are going
to launch several trial projects by providing M2M test-bed platform for
public-private collaborations. KCC also plan to assign a unique IP address for
each individual M2M devices to form a ‘network of things’.
©2009 TechIPm, LLC All Rights Reserved www.techipm.com 7
 New Mobile WiMAX Services in S. Korea

According to the KCC (Korea Communications Commission), there will be a

new mobile WiMAX (Korean brand name WIBRO) service provider in addition
to the current operators, KT and SK Telecom. The new mobile WiMAX operator
will be about 1B US$ initial capital MNO consortium consisting of MVNO
shareholders. KCC is planning a new frequency allocation (2.3 GHz or 2.5 GHz
with
10 MHz bandwidth) in early 2010 for the start of nation-wide full commercial
services in 2011.

The new All-IP based mobile WiMAX network is expected to provide the voice
(mVoIP) as well as the broadband data services in a truly fixed-mobile and
voice-data convergence environment for each MVNO’s customized services
such as m-learning, m-logistics, and m-healthcare etc.

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 Songdo u-City: Global IT Innovation Hub

Songdo u-City is a new city in Incheon, S. Korea for creating innovative living
environment for international business (NY Times: Korea's High-Tech Utopia,
Where Everything Is Observed:
http://www.nytimes.com/2005/10/05/technology/techspecial/05oconnell.html?_r=2
)

Recently the Songdo u-City got a media attention due to its hosting of new
global IT innovation centers:

Cisco is going to invest $2 billion dollars over the next five years starting from
2010 for the development of ‘Smart Connected Communities solutions’ for the
u-City.

GE plans to establish a global IT-health R & D center in Songdo u-City. GE will

invest $42 million for the next five years for the development of state-of-the-art
healthcare IT solutions.

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 Future Network 2020 Forum

Korea’s main institutes for ICT (Information & Communication Technology)

R&D and policy - Electronics & Telecommunications Research Institute (ETRI),
Korea Internet & Security Agency (KISA), and National Information Society
Agency (NIA) recently opened the 'future network 2020 forum (FN 2020)’ for
the promotion of S. Korea’s global leadership in future ICT innovations.

The FN 2020 forum will provide visionary strategy and supporting government
policy for the development of innovative network infrastructure and related
service models for the future information society: 4G and beyond 4G mobile
network technologies, standardization in fixed-mobile convergence networks,
policy and technologies for secure network environment, open network
architecture for network neutrality implementation, and testing platform for the
new service models development in emerging ICT markets.

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 4G Smart Phone Innovation Cluster

Korean Ministry of Knowledge Economy (MKE: www.mke.go.kr) announced the

planning of mobile phone cluster formation for global leadership in 4G mobile
phone innovations. According to MKE, about 200 M $ will be invested to the
public-private collaboration project for the construction of 4G mobile phone
innovation ecosystem.

All the stakeholders for mobile phones will be located in the cluster for a
complete collaborative environment from R&D to production and field tests to
keep the S. Korea’s leadership in rapidly changing global mobile phone market.
Global mobile phone manufactures such as Samsung and LG and major S.
Korea’s Telco such as KT and SKT expressed their participation in the mobile
phone innovation cluster.

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 Mobile Cloud Computing Test-Bed & Standardization

Korea Communications Commission (KCC) and ministry of knowledge

economy (MKE) jointly announced the initiation of mobile computing test-bed.
The mobile computing test-bed is a part of the government project planning,
‘Cloud Computing Global Leadership,’ to invest about 0.5 B$ until 2014.

The mobile cloud computing test-bead is one of 8 cloud computing test-bed

project and will be operated by public-private partnerships. The five-year
government cloud computing project also includes the establishment of cloud
computing data center for government agencies.

In parallel with the cloud computing promotion initiation, TTA, which is the main
standardization body in S. Korea, is going to push the cloud computing
standardization through global standardization bodies.

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 4G Mobile IPTV Services

According to the Wikipedia, mobile IPTV is a technology that enables users to

transmit and receive multimedia traffic including television signal, video, audio,
text and graphic services through IP-based the wired and wireless networks.
Through Mobile IPTV, users can enjoy TV services anywhere and even while
on the move.

Korea Communications Commission (KCC) recently announced that mobile

IPTV services based on mobile WiMAX will be provided at the G20 Seoul
Summit in November. The world’s first mobile IPTV services had already been
demonstrated in the last year’s ASEAN-Korea Summit hold in Jeju Island.

KT, S. Korea’s major MNO, is now planning the commercial mobile IPTV
services using the 4G iPhone as a part of its fixed-mobile convergence (FMC)
services.

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 3D Industry Supporting Center in S. Korea

Korea Electronics Association (KEA) recently announced the establishment of

the supporting center for 3D industry in S. Korea. As the James Cameron's
Avatar Movie triggered the worldwide interested in 3D multimedia
entertainment, global consumer electronics giants, Samsung, Sony, and LG,
expressed their
introduction of 3D TV and intension of aggressive investment in R&D for 3D
related technologies. KEA’s 3D Industry Supporting Center aimed at the
promotion of 3D industry in S. Korea in parallel with the global trends in 3D
consumer electronics market.

The 3D center is expected to play a key role in the development of innovative

3D technologies, global standardization of 3D technologies, and operation of
a collaborative body for intellectual property related issues.

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 Strategic Promotion of Invention Capital

Korea Institute of Advancement of Technology (KIAT) recently announced the

RFP for the strategic promotion of the first invention capital in S. Korea.
The invention capital was first proposed by Korean Intellectual Property Office
(KIPO) last year following the model of IV (Intellectual Ventures).
Base on $5 M seed funding from Korean government, the invention capital is
going to raise the fund at the level of $0.5 B in 5 years.

Currently, KITA is playing a role as the IP management organization for the

invention capital, and is operating Twitter site ‘ip_capital'
(twitter.com/ip_capital) for the promotion of the invention capital.

©2009 TechIPm, LLC All Rights Reserved www.techipm.com 15

Thank you!

If you want to develop a new IT

& Telecom business in S. Korea,
please contact
Dr. Alex G. Lee
at alexglee@techipm.com

©2009 TechIPm, LLC All Rights Reserved www.techipm.com 16