the leader of global e-trade...korea trade network, the leader of global e-trade 3 table of contents...

Korea Trade NetworkThe leader of Global e-Trade

KTNETKTNETenabling Global eenabling Global e--TradeTrade

October 19, 2004October 19, 2004

Korea Trade Network, The leader of Global e-Trade 2

KTNET OverviewKTNET Overview


Table of ContentsTable of Contents

1. KTNET and Paperless Trading

2. New Horizontal Global e-Biz Platform

3. Vision


1. KTNET & Paperless Trading1. KTNET & Paperless Trading


1. Background1. Background

Rapid Growth of Trade Volume During 1970s’ ~ 1990s’

13% per annum

From US$1Bil in 1974 To US$129.8Bil in 1990

Challenges of Businesses

Limited Resources

Exploding Import & Export documents to be processed

Bottleneck in Business Community

19 ~ 28 days needed for Customs Clearance

Challenges to Remaining Competitive


2. Key Initiatives2. Key Initiatives

Founded by Korea International Trade Association(KITA) in Dec 1991

‘Comprehensive Trade Business Automation Promotion Act’ by Ministry of Commerce, Industry and Energy(MOCIE)

Pursuing Efficiency of Trade Process & national competitiveness by reducing processing time and costs, through Trade Automation

Scopes of the Law -Trade Administration, Foreign Exchange

Government Commitment by Korea Customs Service(KCS)KTNET is designated as Exclusive Customs Network Provider in Nov 1992

Scopes of Customs Automation -Customs Clearance, Cargo Management, Duty draw back and etc


3. Who is KTNET ?3. Who is KTNET ?

e-Trade Service

‘91‘91 ‘94‘94 ‘00‘00

◈ Customs & Trade Automation Services

◈ Global e-Trade Services

◈ Founded by Government

Customer

◈ Most International-Trade-Related-Actors (Traders, Government Agencies etc)Traders: 12,000+Logistics(Air, Ship…): 3,300+

Financials : 100+Govt & Org: 140+

Company Performance◈ Revenue: US$43.2M(US$290,128 per employee), Profit after Tax: US$10.4M (’03)


4. KTNET Networking4. KTNET Networking

U.S customs

Domestic bank

Foreign bank

Trade administration

Insurance company

Shipping company

PAA

KTNETKTNETKTNETInsurance Network

Financial Network Clearance

Network

Global Networks

Quarantine station

Trade company Korea CustomsCustoms broker

forwarder

ASEMwarehouse Air company


5. KTNET Service 5. KTNET Service –– TradeTrade

e-Trade Service

• KTNET's EDI XML based ‘e-Trade System’ has eliminated physical visits to trade-related offices such as banks and other Government Agencies.

• Its Computerized Trading System enables to practice Paperless Trade.

Exporter Importer

e-Trade Payment

DeclarationNego

Research

Marketing Logistics

Contract


5. KTNET Service 5. KTNET Service –– CustomsCustomse-Customs Service

Teaming up with the Korea Customs Service,KTNET has developed acustoms information system that handles cargo-related activities swiftlyand accurately. KTNET introduced an export customs automation servicein cooperation with the Customs Office in 1994. It added import customs service in 1996 and an automated customs refund

system in 1997,achieving 100% paperless customs procedures.

eCustomsFrameeCustomsFrame

Traders

Shipper/Airline

ForwarderOrganization

Bank/Insurance

Customs Service

Transport


5. KTNET Service 5. KTNET Service –– LogisticsLogisticse-Logistics Service

Increases in the speed of logistics drive economic development.KTNET is proud to cap its logistics innovations with reductions in time and costs associated with cargo shipments.Its automated system features 100%complete cargo handling processes from arrival, unloading and warehousing to transportation to the customer. Using EDI document standardization and simplification, KTNET provides the capability for 24-hour real-time logistics service.

KTNETKTNET

INFORMATION Cargo Tracking, Visibility

AirlinesAirlines

Arrival & Arrival & DepartureDeparture

ShipperShipper

TransportTransportCustomsCustomsHouseHouse LoadLoadWarehouseWarehouseForwarderForwarderTradersTraders

ExportImport


5. KTNET Service 5. KTNET Service –– Trade InformationTrade Information

Statistics Information

Cargo Tracking

Statistics

Value Added Service

Cargo Tracking Information

INTERNET

CargoPass

Customs & TradeInformation

(Cargo Tracking &Statistics service)

(Trade Info)

MFCS (Manifest)

cTradeInfo ServicecTradeInfo is a Trade Database Service that allows you to access data for approx 16,000 commodity groups for Korea. (www,KoreaTradeInfo.com)Having exclusive access to Import/Export information from vessel manifest, Custom's Entry and other Trading related data at Korea Customs Service, cTradeInfo collects more than 30,000 import/export entries and 40,000 bills of lading everyday.It features 24-hour-a-day on-line-access Trade Information and Business Directory Service.


5. KTNET Service 5. KTNET Service –– Certificate AuthorityCertificate Authority

NA

CA(HSM)

RA/AutoRADirectory

KGS

Timestamp

Auditor

DRM

SSO

PAN-ASIAE-Commerce Alliance

PAN-ASIAE-Commerce Alliance

TEDI CA Malaysia CA

SNS CA

TradeVan CA

TradeLink CA

CIECC CA

TradeSign ServiceTradeSign(www.TradeSign.net) ensures that e-trade systems are working error-free via Trusted Third Party (TTP) Certification. The Government’s Designated Certification Agency provides a safe and reliable basis for spreading e-Commerce including B2C,B2B,B2G and others.

Bolero CommunityBolero Community

BoleroCMP

BoleroUser

Web User

TEDI Japan Trader(KR/JP e-Trade Hub)TEDI Japan Trader

(KR/JP e-Trade Hub)

…

CertificateRoaming

TCP/IPHTTPS(SSL)

(S/MIME)

GG--XMLXMLHubHub CTWCTW DB DB ……

(KCIS(KCIS……))

KTNET Core System(internet service)

BoleroCSP

WebServer cert

IDENTRUSIDENTRUSSpecific

OCSP

XML/EDI UsersEmail Users…Enabler user E CommerceE Commerce


6. Key Internet Services

eCustomsFrameeCustomsFrameTMTM

eLogisFrameeLogisFrameTMTM

eTradeFrameeTradeFrameTMTM • eTF eliminates trader's physical visits to OGAs• Its Internet based trading system enables to

practice Paperless Trade

• Internet-based e-Document Exchange and Data Utilization Service for Customs Brokers & Traders

• Enables to practice Customs Clearance through Internet

• Internet-based Conveyance-Logistics Automation System using EDI technology

• Air/Sea Freight Forwarders and shipping companies use eLFTM

CTradeWorldTM

KTNET proudly presents e-Trade Portal Service,designed to pursue goal of implementing complete range of Paperless Trade


CTradeWorldCTradeWorld on Single Windowon Single Window

Trade

Customs Logistics

KCIS

MFCS

CargoPassCTI

eCustomsFrame eLogisFrame

eTradeFrame


2. New Horizontal Global e2. New Horizontal Global e--Biz PlatformBiz Platform


1.1. Cross Border eCross Border e--Trade Service ProjectTrade Service Project

PAA (Pan Asian e-Commerce Alliance) ProjectElectronic Trade Documentation Platform between 8 Asian Economies Government assists in Funding, Legal Issues, Marketing and otherse-Trade Service Providers in 8 Economies (China, Hong Kong, Japan, Macau, Malaysia, Singapore, Taiwan and Korea)‘Business to Hub to Hub to Business’ Model

Korea – Japan Paperless Trade ProjectElectronic Trade Documentation Platform between Korea and JapanGovernment assists in Funding, Legal Issues, Marketing and othersFrom B2B documents to B2G document and Financial settlement service

Korea - EU (ASEM) Paperless Trade ProjectElectronic Trade Documentation Platform between Korea and EuropeGovernment assists in Funding, Legal Issues, Marketing and others


2. PAA Project2. PAA Project

Cross Border e-Trade Service in Asia : PAA

KoreaKTNET

JapanTEDI

China CIECC

TaiwanTrade-Van

MalaysiaDagangnet

Hong KongTradelink

MacauTEDMEV

KTNET

Carrier

Bank

Manufacturer

Warehouse

Trucker

Customs Broker

Trader

Authority

Customs

Insurance

e-MP

Forwarder

SingaporeCrimsonLogic

Global e-Trade Domestic e-Trade


3. Korea 3. Korea –– Japan Paperless TradeJapan Paperless Trade

Pilot Project : Hyundai Motors- Networking between Hyundai Motors and its Local Partners (Suppliers, banks,

transportations and others- Networking between Hyundai Motors and Mitsubishi Corporation- Networking between Mitsubishi Corporation and its Local Partners

MitsubishiCorp.Web

ASP ServiceI/V, P/LB/L adv, Mill P/L

KTNET TEDI

BankBank

KoreaCustomsService

InsuranceInsurance

HyundaiDocumentStandard

PAA Standard XMLwith Digital SignatureThru Secure Channel

L/C InsuranceCustoms Declaration

Bosch

Siemens

HMCe-Procurement

System

EDI/VAN

Invoice, B/L AdviceAirway Bill

Translation & Transformation


4. Korea 4. Korea –– EU Paperless Trade ProjectEU Paperless Trade Project

KTNET

Invoic

Dispatch Notice

Hyundai MobisBOSCH/ M+P’s

Partners Other Com.

Korea

SIEMENS

BASF

BERU

INA

Europe

P/OShipping Information Shipping OrderShipment NoticeB/L InformationSettlement InformationAir Waybill

Expansion

Korea

Messaging Center

GMCC

RepositoryCenter

Real Transaction ( Invoic, Dispatch Notice )

Developed Docs

To Develop Docs

Invoic : Invoice + Packing List

BANK

Forwarder

Germany

BADENBADEN--WURTTEMBERGISCHE BANKWURTTEMBERGISCHE BANK


3. Vision3. Vision


Riding on Global eRiding on Global e--Trade ParadigmTrade Paradigm

Multi-channels Single Window Overseas

Inform diary

TraderTrader

e-TradePlatformse-Trade

Platforms

e-MP

Customers

Search/TranslationCA/Payment

Global Link

Bank

Insurance

Customs

Logistics

Port Authority•Credit Information •Buyer/Seller Information• Laws/Regulation•Etc.

Inte

rnet

Agencies

Inte

rnet

TraderTrader

e-MP

PrivateVAN VA

N

Contract

Trade ProcessMarket Research

Marketing

Negotiation Declaration

Logistics

Payment


Thank YouThank You

Jae Hoon KimJae Hoon Kime Strategy Biz teame Strategy Biz team+(82)+(82)[email protected]@ktnet.com

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