10th World Telecommunication/ICT
Indicators Meeting (WTIM-12)
Bangkok, Thailand, 25-27 September 2012
Contribution to WTIM-12 session
Document C/25-E
26 September 2012
English
SOURCE:
Korea Association for ICT Promotion (KAIT), Republic of Korea
TITLE:
e-Commerce in Korea
2012-09-26
e-Commerce in Korea
September 2012
Dr. Kim, Seung Keon
September 2012
Contents
I. e-Commerce in Korea
II. Measuring Methodology
III. e-Commerce & ICT Policy in Korea
IV. Implication
V. Appendix
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1
2012-09-26
I. e-Commerce in Korea
History of e-Commerce in Korea
1992
1996
1999
2011
• Introduction to the concept of e-commerce
• Founded ‘iNTERPARK’, the first cyber shopping mall in Korea
• Established and revised e-Commerce regulation
• e-Commerce transaction reached KRW 999 trillion(US$886 bn)
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I. e-Commerce in Korea
Usage of e-Commerce
(no. of usage, %)
Use
Use
Sales effect through e-Commerce implementation
(No. of companies, % )
No. of companies in 2010
Non-Use
Non-Use
Ratio in 2010
20.8% of companies
uses e-Commerce
Reduction of Treatment Cost
(53.1%)
Source: NIA(National Information Society Agency), 2011. 10.
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2
2012-09-26
I. e-Commerce in Korea
Usage of e-Commerce by Industries
Usage of e-commerce by Industries (%)
2009
2010
Source: NIA(National Information Society Agency), 2011. 10.
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II. e-Commerce in Korea
Scale of e-commerce
Total e-commerce turnover was KRW 999 trillion (US$ 829bn) in 2011
Status of e-commerce in Korea (trillion won(billion dollars), %)
1400
30.0
24.9
1200
22.6
22.0
21.2
999(829)
25.0
1000
20.0
824(684)
800
15.4
630(523)
600
672(558)
15.0
517(429)
414(343)
6.7
10.0
400
5.0
200
0
0.0
2006
2007
2008
2009
Total Turnover(Trillion won)
2010
2011p
YoY(%)
Source: Statistics Korea, 2012. 2.
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3
2012-09-26
II. e-Commerce in Korea
B2B e-Commerce
B2B e-Commerce market in Korea,
(trillion won(billion dollars), %)
e-commerce by industry 2011(%)
B2B e-Commerce market was KRW 913 trillion
(US$ 758bn) in 2011
1,400
30.0
26.8
22.1
20.6
1,000
913(758)
25.0
Transpotation
2.0%
Construction
7.8%
Information and
communications
2.2%
others
1.2%
20.0
747(620)
14.7
Retail/Wholesale
16.0%
15.0
560(465) 593(492)
600
400
Electricity, gas,
water supply
1.1%
26.0
1,200
800
Manufacturing occupied 69.7 % of the total B2B ecommerce transaction in 2011(Increased 21.1% )
464(385)
366(304)
Manufacturing
69.7%
10.0
5.8
5.0
200
0
0.0
2006
2007
2008
2009
2010
Total turnover(Trillion won)
2011p
YoY(%)
Source: Statistics Korea, 2012. 2.
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I. e-Commerce in Korea
Cyber Shopping Transaction in Korea
( trillion won(billion dollars), %)
B2G e-commerce in Korea (%)
40
30.0
26.1
46.6%
25.0
22.1
Construction Contract
30
29(24)
41.9%
17.1
53.4%
20
16(13)
Purchase of goods and services
20.0
25(21)
15.1
15.3
21(17)
13.8
15.0
18(15)
13)
58.1%
10.0
10
0.0% 10.0%20.0%30.0%40.0%50.0%60.0%70.0%
2011
5.0
2010
In 2011:
0
0.0
2006
2007
2008
Total Transaction in B2G
Turnover(trillion won)
= KRW 58 trillion (US$ 48 bn)
(
2009
2010
2011p
YoY(%)
In 2011:
10.6%)
•
Customer-to-Customer : 36.3%
•
Business-to-Business : 63.7%
•
Turnover(Cyber Shopping)
Portion of the Purchase
of Goods and Services in B2G = 53.4%
(
4.7%)
=KRW 29 trillion (US$24bn)
Source: Statistics Korea, 2012. 2.
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2012-09-26
I. e-Commerce in Korea
Transactions Value by Group of Commodities
Transactions value by group of commodities in Korea (%)
4.7
0.3
Flowers
0.2
Software
0.3
0.5
Music CDs &disks·videos·musical instrument
0.5
0.6
Miscellaneous services
0.5
1.4
1.2
Office aplliances·stationery
2.7
2.8
Agricultural and fishery products
4.3
4.2
Books
4.6
4.4
Sports and leisure appliances
5.6
5.3
Goods for infants and children
6
5.5
Cosmetics
6.5
7.4
Food·Beverages
10.2
9.7
Computer and computer-related appliances
9.5
10.5
Householde goods·motor vehicle parts and accessories
13.5
11.1
Home electric appliances ·electronic·telecommunication equipment
12.4
13.9
Travel arrangement and reservation service
16.9
20
5.7
Others
0.2
16.8
Clothes·fashion·related goods
15
10
5
0
0
5
10
15
20
Source: Statistics Korea, 2012. 2.
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I. e-Commerce in Korea
Factors of e-Commerce Vitalization in Korea
• Advanced broadband and high level of internet users
• Secured personal identity authentication
• Tightened Regulation for the Consumer Protection
• Strategic Significances of e-commerce to all sized
businesses
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2012-09-26
II. Measuring methodology
Measuring Methodology of e-Commerce
e- Commerce Survey
Method of e-Commerce Survey
• Interviewing Survey by Statistics Korea’s regional and branch offices
• Electronic Survey using CASI(Computer-Assisted Self-Interviewing)
Category
Classification
B2B
e-Commerce
Survey
(Quarterly)
Detail
•
•
Complete enumeration survey(1,368 Companies)
Listed companies, KOSDAQ * listed companies, Public
companies, e-market places, other e-Commerce companies
•
Public Procurement Service, Defense Acquisition Program
Administration, Korea Post
Administration data of Public Procurement Service are used
B2G
•
Cyber
Shopping mall
Survey
(Monthly)
•
B2C, C2C
•
Sampling Survey(cyber shopping malls with ability to sell
products over the internet)
1,026 Cyber Shopping malls(2ND Quarter, 2012)
Survey
•
Total buying and
selling transactions
•
The transaction value
of ‘Purchase of goods
and services’ and
‘Construction
contract’
•
The transaction by
products, payment
mode, delivery mode.
*Korea Securities Dealers Automated Quotation
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II. Measuring methodology
Issues of e-Commerce Survey
• Lack of Monitoring Systems
-Companies continuously come and go
• Selection of Survey respondents
-Quality of Survey
• Need of Cooperation Network
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2012-09-26
III. e-Commerce & ICT Policy in Korea
The effect of e-commerce on ICT Policy in Korea
• Reform the Regulation in e-Commerce
- Use as political information
- Legislation (e.g. Act on the Consumer Protection in the Electronic Commerce
Transactions)
• Introduce the scheme to vitalize the e-Commerce
- Respond to consumers demand
- Contribution to the development and innovation of ICT
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IV. Implication
• Outstanding ICT Infrastructure in Korea
• Combination of traditional commerce and other e-commerce
• Needs of Provisions for Information Protection
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2012-09-26
V. Appendix
Korea Association for ICT Promotion
• Established in 1987
• An Affiliated organization of Korea Communications Commission
• Manages and controls ICT policies in Korea
• Produces and analyzes ICT statistics & Indicators
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V. Appendix
ICT Trend in Korea
Trend of the ICT industry growth rate
(unit : %)
Trend of the ICT Imports and Exports
(unit : US$ 1bn, %)
ICT became the core tool to proactively cope with future
uncertainty and crises.
* ICT made the greatest contribution in overcoming the IMF
crisis in 1998 and the world financial crisis in 2008.
The ICT industry occupied 8.0% of the domestic GDP in
2011.
* The ICT industry achieved a 9.6% annual average growth
rate since 2006, which was far above the GDP growth rate
of the same period (3.8%).
25.0
20.0
15.0
8.5
8.2
8.0
8.0
8.7
17.7
8.0
8.7
5.2
5.1
5.0
6.8
2.3
6.3
3.9
7.9
3.6
0.3
0.0
2006
2007
2008
2009
Classifications
Total exports
2010
4.0
3.0
2.0
1.0
0.0
ICT exports
Experts
2006
325
2007
371
2008
422
2009
364
2010
466
2011
558
119
130
131
121
154
157
ICT's share of total exports 36.6% 35.0% 31.0% 33.3% 33.0% 28.1%
6.0
5.0
12.6
10.0
9.0
8.0
7.0
Korea recorded a trade surplus in ICT goods and services of US$ 78
billion in 2010, and US$ 75billion in 2011.
Comparing this amount with Korea’s total trade surplus during the same
year of US$ 33 billion gives a very good idea just how important the
contribution of ICT is.
Imports
Total imports
309
357
435
323
425
524
ICT imports
65
70
73
62
76
82
ICT's share of total imports 21.0% 19.6% 16.8% 19.2% 17.9% 15.5%
Overall trade balance
ICT trade balance
16
54
15
60
-13
58
40
59
41
78
33
75
2011p
GDP growth rate(real)
Growth rate of the ICT industry(real)
ICT industry as share of GDP(nominal)
Source: Bank of Korea & KAIT(Korea Association for ICT Promotion) (2012)
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2012-09-26
Thank You!
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