Hyeon-Kon(HyKon) Kim khk@nia.or.kr

Executive Director, National IT Policy DivisionNIA, National Information Society Agency, Korea

3 May 2011

e-Gov & Information Society of Korea

- Strategies and Best Practices -

Table of Contents

Journey of e-Nation & e-Government1

Current Status & Evaluation2

4

5

6 Challenges & Strategies for Future Success

Future of e-Gov & Information Society

Best Practices of e-Gov & e-Nation

3 Success Factors & Lessons

2/40

Uruguay and Korea

KOREA

URUGUAY

3/40

Dream 2000 in 1965

Dream

Comes to

Reality!

4/40

Presidents, IT Supporters: No Exceptions

Park Chunghee(1963~1979)

• Targeting IT industry

• TDX project

• R&D infrastructure

Chun Doo-Hwan(1980~1988)

•TDX success

•National Basic Information

System Project

Rho, Tae-Woo(1988~1993)

•CDMA standard

•Telecom service

privatization

Kim, Young-Sam(1993~1998)

• Information Superhighway

•CDMA service

• Informatization framework

Kim, Dae Jung(1998~2003)

•Targeting IT sector again

• Internet & Broadband

•e-Government

Roh, Moo-hyun(2003~Present )

•e-Government

for Gov Reform

•u-Korea

Lee, Myung-bak(2008~Present )

•Presidential IT

Strategy Committee

•Smart Work

5/40

Brief History of Korea’s 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

2010

Smart

•Smart Work Strategy

•IT Utilization

•Smart Korea Vision

6/40

IT Diffusion and Social Change

IT Policy & Its Outcome: Information Society of Korea

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

National Basic

Info System(’87~’96)IT Promotion Act(’95)

Korea Info Infra(’95~ )

InfoSociety Plan(’96~’00)

Cyber Korea 21(’99~’02)

e-Korea Vision 2006(’02~’06)

Broadband IT Korea 2007(’03~’07)

IT839 Strategy

u-Korea Masterplan(2006-2010)

IT Korea Masterplan(2008-2012)

1987 1995 2001 2011

KII

Masterplan

Telephone

10M

NatioanlDB

(Resident..)

PC 10M

Internet

User 10M

Internet

Banking

10M

Broadband

Subsciber

10M

PC: 30M

Internet: 37M

Broadband: 16M

Mobile: 50M

eBanking: 59M

eStock: 59%

eSign: 22M1987 1991 1995 1999 2001 2002

2011

7/40

IT Diffusion and Social Change: eBanking

0

10

20

30

40

50

'02.6 9 12 '03.3 6 9 12 '04.3 6 9 12 05.3 6 9 12 06.3 6 9 12

(%)

25.0

27.0

(Internet Banking) 36.7

O ffline Co unter

Internet Banking

CD/ATM

Telebanking11.4

Number of

transactions

Internet banking has changed banking business itself!

8/40

IT Diffusion: Future Forecasting in 2005

44.7% 71.9%

2005 20102000

More than 95%?Internet Users

12.3%(1999) 24.4% 36.3%(2008)Portable PC Sales

13.1M 179.5M 430MHigh Speed Internet Users(World)

- 4% 35% (100% in Korea)Telematics-equipped Car(World)

- 2M 20MBcN Subscribers

- 2.9M 1 DTV/HouseholdDTV

- 1,300 10M(2007)Digital Home

- - 1 Robot/HouseholdIntelligent Robot

- 0.7(2006) 8.85MWireless Broadband(WiBro)

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

Integrating Major

Government

Processes into a

Single Service

Phase 3Phase 2

The Use of IT

across

Government

Bureaus

Phase 1

Digitize Government

Records

(Database Building)

10/40

e-Government 11 Priority Initiatives: 2001-2002

G2B

G2G

G2C•National Finance Information

System

•National Education

Information System

•Personnel Policy Support

•Local Administration System

Transparent and

Efficient Government

•Government Portal(G4C)

•Social Insurance Service

•Home Tax Service (HTS)

Quality Public Service

•National e-Procurement System

Enhance Business

Environment

•e-Documentation

•Digital Signature & e-Seal

•Gov’t Information Systems Consolidation

Advanced Infra

11/40

e-Government Roadmap, 31 Projects: 2003-2007

2003 2007

Common

Process

Unique

Function

ServiceIntegrated Contact Point

Common

Platform

HR System

Financial System

Audit System

Integrated IT Environment

E-Government Network

Dept1 Dept2 Dept3 Dept3 Dept4

HR

Financial

Audit

System

N/W

City/Province Municipality↔

• Shared Use of Information

• Integrated System

Dept1 Dept2 Dept3 Dept4 DeptN

System

N/W

System

N/W

System

N/W

System

N/W

HR

Financial

Audit

HR

Financial

Audit

HR

Financial

Audit

HR

Financial

Audit

Municipality

City/Province

12/40

New Vision: IT Korea Masterplan 2008-2012

Citizen Life Enriched by

Digital Technology

TrustworthyInformation

Society

Creative Soft Power

Advanced Digital

Convergence Infrastructure

Government-led informatization

Disconnected & fragmented

Focused on positive aspects

Expansion-focused policies

Strategy

Public-Private collaborative governance

Seamless and converged informatization

Active response to adverse effects of

informatization

Utilization-focused services for users

National

VisionAdvanced Nation Standing Tall in the International Arena

Vision for

InformatizationAdvanced Knowledge Information Society of Creativity and Trust

Efficient Government

Objective

13/40

Ranked 15th(2002) » 5th(2006) » 1st(2010) out of 192 CountriesSource: UN, Benchmarking e-Government, 2002-2010

WebPresence

Two-wayInteraction

OnlineTransaction

Integration &Transformation

2002

2011

Where are we now?: e-Government Evaluation

14/40

Framework Act on Informatization Promotion (FAIP), 1996-

Electronic Government Act, 2001-

Informatization Promotion Committee & Subcommittees,1996-

Presidential e-Government Committee, 2001- 2007

Presidential Information Society Committee, 2009-

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

Informatization Promotion Fund -> ICT Promotion Fund: $1B

Central Fund for e-Government (lump-sum): $100M-$300M

Legal Framework

Organizational Arrangement

Implementation Framework

Funding Mechanism

Success Factor1: IT Policy Framework

Enabling System

Leadership

Action Target

Central Budget

15/40

2000 2005 2010 2015

Mobile Phone

>Fixed Phone

Portable PC

>Desktop PC

Digital TV

>Analog TV

Internet Use

>TV Watching

Wireless Internet

>Wired InternetMP3 Market >

Music Disc Market

1999

2003

Internet Banking

>CD/ATM Use

2004

Breaking Year when New Technology Demand Dominates the Old

Success Factor2: High Demand Infrastructure

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)

Model Case Selection

HTS: OECD e-Tax Best

Practice (’06)

OPPP

: ‘Online Politics

Trophy Top10’ (’06)

uTradeHub

: ‘World Advanced’

in APEC Report

(’06)

International Certification

KIPOnet: WIPO IT Standard

(’06)

UNIPASS

: ISO 9001, 20000

(’06)

KONEPS

: UN/CEFACT Int’l

Standard (’05)

17/40

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

Bidding and contract information open

Open & Real-time checking of procurement processing

Reduced face-to-face meeting by work procedure automation

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

▶ 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

Enhanced Efficiency

Glass-like Transparency

Paper-based, manually-handled procurement works

raised the necessity to

improve efficiency and transparency

Best Practice:

e-Procurement: NaraJangteo (NationalMarket)

18/40

Key administrative information related to people’s daily lives is computerized

- Residence registration, real-estate, vehicle, employment, etc.

98% of major administrative information

already in database

Administrative Information Database

Prompt administrative services provided in

tax notice, certificate issuance, report, and

statistics

Increased Convenience

One-stop service with information sharing among administrative entities

Prompt and accurate administrative processing

Improved Efficiency

Best Practice:

Information Sharing for Better Services

19/40

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

10M-50M communication-network supplied

to all 10,400 elementary and secondary

schools (100%)

1 PC per 5 students

Administrative Information Database

Over 8,000 kinds of educational contents(ex.

Edunet) available for citizens

e-Learning popular at school

e-Learning

Online processing of educational affairs

Online issuance of documents (ex. Diploma)

Efficient Education Administration

Best Practice:

Education Network & e-Learning: NEIS

20/40

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) → 15 minutes (2010)※ International Civil Aviation Organization (ICAO)

recommends 45 minutes

World’s top-level custom administration being achieved through process-innovation and informatization since 1992

- Export/import declaration, in-port, freight management, drawback, etc.

Time reduction

Passenger flow acceleration to advanced level

▶ Awarded WCO Trophy 2006

▶ The World’s first 100% electronic

declaration system for exports and imports

(96% and 90% in US and Japan, respectively)

Best Practice:

e-Customs: UNI-PASS

21/40

Both domestically and internationally

Real-time processing information provided

World’s 1st to establish online processing system for PCT

World’s 1st to exchange online documents with WIPO

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

Service available 24 hours, 365 days

Online Processing System for PCT

In 2005, WIPO joined hands with Korea in developing a system for worldwide use

KIPOnet will save US$ 1 Billion every yearPCT : Patent Cooperation Treaty

WIPO : World Intellectual Property Organization

Online issuance of

certifications

patent charge

refund

PCT online

application

Authentication

Center

Best Practice:

Patent Online: KIPOnet

22/40

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

Tax deduction incentive for online tax returns

Taxpayers’ participation increased

Monotonous work and failures in manual

handling decreased

Face-to-face contacts between taxpayers

and officials decreased

Productivity and transparency improved

Services diversified in tax returns, payment,

notice, certificate issuance, etc.

Mobile services on notice, or status

information

Citizen-oriented service provided

Best Practice:

Home Tax System: HTS

23/40

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.

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

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 document inquiry and issuance

Best Practice:

Government Portal: GovService24

24/40

Best Practice:

Integrated Government IT Center

Seamless & flawless

operation

Enhanced capability of

infringement management

Dual system for natural

disaster relief

Common services

governmentwide

IGIT 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

25/40

Best Practice: ASP or Rent IT for SMEs

Target: 1 Million (33%) of SMEs by 2008, Monthly Fee 30 US$

ASP Service Increase

15,65667,256

108,181

146,658

109,327

166,225

245,190

431,270

577,946

665,934

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

02.3 6 9 12 03.3 6 9 12 04.3 6 9 12 05.6 05.12 06.6

Time

No of

Users (company)

06.12 07.10

730,000

890,000

Cloud Computing Services for 3 Million SMEs, started already in 2002

26/40

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

ICT Development

Value

ICT

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

Change in Technological Environment

Convergence of

system

technologies

CONVERGENCE

Change in Policy Environment

COMMUNICATION

Change in Information Environment

CREATIVITY

Change in Social Environment

TRUST

Public-Private

Cooperative

Governance

Single Unit

System

community-

centric

Knowledge

utilization &

value creation

Government led

policy

creation·

accumulation

of information

Focusing on

growth and

individuals

32/40

IT, A Core Engine for Smart Innovation: Everlasting Role in the Future

IT potential

Transcend

time and space

Intelligent

Two-way

Network

Speed,

Convergence

Ensure

Economic growth

Enhanced

Human resources

Advanced

social welfare

Expand

social capital

Proactive

globalization

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

33/40

As-Is To-Be

Fragmented Services

Electronic Services

Functional Services

Shared Services

Ubiquitous Services

Citizen-centric Services

▶

▶

▶

▶

▶

▶

▶

▶

▶

▶

▶

▶

▶

▶

▶

▶

Provider-oriented services

Partial automation of administrative work tasks

Coordination among government agencies

Automation of government services

Internet-centered, fragmented service

channels

Standardized simple services for the public

Service channels using portable electronic

devices

Individually-customized intelligent services

Function-oriented agency services

Services centered around the central

government

User - oriented services

Integrated services linked with local

governments

▶

▶

▶

▶

▶

▶

▶

▶

Next-Generation e-Government: Future Image

34/40

Next-Generation e-Government: Smart Gov

User Change As-Is

Citizen

Approach

Government-set rules

(limitation on service hours, designated public

office)

Usage of public officesVisit several times (office or thru internet)

Summit same document for several times

To receive benefit (such as

social welfare and aid)Need eligibility proof or application by citizen

Service type Customer-oriented service (general)

Public

officer

Workplace Office (PC base)

Working at site Record at office (headquarter)

Way of working

(disaster/safety, etc)Recovery afterwards

Communi-

cation with

citizens

Run communication counterCombined counter

(transmit/distribute to the relevant agency)

Reflection to policy Statistical/comprehensive reflection

Way of communication One-way (Citizen → Government)

To-Be (Smart GOV)

My rules

(24 hour service, regardless of region,

diversify media)

1-time visit

Simultaneously perform related service

Government verifies eligibility before

providing aid

Individual-oriented service (customized)

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)

Customized service for every citizen, and my own government

Two-way government that evolves through communication with citizens

35/40

e-Gov Evolution: toward iGov & sGov

Electronic

Mobile

Digital TV

IntelligentmGovernment

tGovernment

eGovernment

iGovernment

or

Smart

sGovernment

36/40

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

Human

Infrastructure

Top-level

Leadership

Priority

Programs

Funding

Mechanism

38/40

Strategies for Success: More Issues

39/40

Strategies for Success: Business-Oriented

Quantity

Quality

Use

Satisfaction

Transparency/Responsiveness

Easy/Convenient

Offline/Online

Value Creation

Business-focused

All Stakeholders

Daily Activity

User Trust

Quantity

Quality

Use

Satisfaction

Transparency/Responsiveness

Easy/Convenient

Offline/Online

Value Creation

Business-focused

All Stakeholders

Daily Activity

User Trust

Business

-Oriented

Never

Changing

Principle!

e-Government Smarter Government

Not Just

Technology-Oriented!

Business

-Oriented

Never

Changing

Principle!

Kim’s 12 Conditionsfor e-Gov Success40/40

Thank You

e-Gov & Information Society of Korea

- Strategies and Best Practices -