Samsung Electronics and LG Electronics can get their money back from EU. A change in EU customs policy will make a tax refunding for these Korean mobile phone manufacturers, which produce mobile TV (DMB) phones.
Since WTO Information Technology agreement in 1996, all tariffs on mobile handsets are suppressed (tax-free in most cases in EU), allowing Korean manufacturers to compete fairly on European grounds with native players.
But concerning mobile TV devices, EU considered it as TV devices instead of mobile phones since 2007. Therefore, a 14% tariff has been applied. Due to this Samsung Electronics and LG Electronics have paid € 7.5 millions tax so far. However, according to the policy change, there companies can get tax refund.
As a matter of fact, it wax expected to lower tax rate for such multifunctional mobile phone after the enforcement of EU-Korea FTA (Free Trade Agreement). But the sooner this kind of positive market change comes, the more profits Korean players can make.
By the way, European mobile TV market is expected to reach 20 billions in 2011. Attractive prices and cash reserve will be valuable tools for Korean companies in the moment of truth.
The “Internet of things” is being realized and may be in your pocket faster than your expected.. This week, the Ministry of Knowledge Economy selected the consortium to lead RFID development for mobile phone. Consisting of SK Telecom, SK C&C, Phychips, and Incheon International Airport Corp, it will develop RFID-reader smart-phones and Internet services infrastructure.
RFID technology was included in the new governmental scheme so-called “3-3-7” as a “potential items” for new growth engines. Intelligent tags have already proved benefits in supply chain management and inventorying. It is now commonly used by giant retailer Wal-Mart and CHEP, the global leader in pallet and container pooling services. Various Korean public organizations such as museums and veterinary services already have used the technology. Now experimented chip manufacturers, Korean companies are eager to move to the next stage, to service providing.
Therefore, the participation of an airport-managing company in phone application development is a natural evolution. Incheon International Airport will become a test-bed for developers to operate a new system, which bring information to the users wherever is located, through enhanced connectivity.
According to “The Internet of Things “( Lu Yan, Yan Zhang, Laurence T. Yang ; 2008 ), the technology involved has to disappear from user consciousness. One of the three key factors identified is “Pervasive networks to process and convey the contextual information where it is relevant”.
The undergoing development fits this description. The current standards for RFID chips allow less than 128KB of memory embedded in the chip, and this maximum is reached only in military-grade active chips. Average passive tags are under 1KB and contain limited information. Thus, the purpose of RFID reader inside cell phone is to include the reader device in the mobile internet network (WiBro?). It will provide additional and up-to-date information and other services. “RFID on air” will be tested to operate a new air cargo information system shared by sector’s players. The government will support $4 million to the consortium too.
Beyond industrial needs, end-customers applications are near. Incheon International Airport is a part of Incheon Free Economic Zone, a project to build a world class hub by providing state-of-the-art services. Next to Incheon International Airport, New Songdo City often described as the most ambitious ‘ubiquitous city.’ Sensors will provide information to inhabitants concerning pollutions or traffic jamming. RFID will be included in street furniture such as recycling bins.
Science-fiction? No, the city opening is in two weeks. Commercial applications for mobile phone are expected for the end of next year. Welcome in Digital Korea.
There is a swedish saying was that goes, ” Worry gives a small thing a big shadow”. This saying rings true, considering the recent cyberattacks on Korea. The current shadow is quite ominous despite no serious harm nor data-hacking was committed, but fear of an hidden North Korean aggression is overwhelming . However, Korea can seize this mishap to increase population’s level of awareness to cybersecurity.
As one of the most wired country of the world, Korea is exposed to an unprecedented extent. 93% of households are connected to Internet through HighSpeed Broadband, with an average PCs per 1000 population of 442. According to public statements of country’s biggest online security firm executive, the digital convergence of Korea carries even more threats : “Televisions and phones today are connected to the network and are designed with the same structure as computers, so you have to say they are potential targets”. Thus, a smartphone may become a Zombie and be included into Botnets, the vast group of infected PCs from where DDOS are launched.
The country is poorly prepared to ever growing cyberattack scale. By nature, the average customers are not inclined to spend money into expensive antivirus software. The government itself is reluctant to do so; budget for cybersecurity is 2 to 3 percents of IT-related amount.
Even financial organizations reacts only when threaten. Banks are now equipped since a cyberattack in February. It’s not the case for all others financial organizations : “Only a handful of major securities firms are equipped with systems to overcome DDoS attacks, and the rest are known to be vulnerable to such cyber terrorist attack”, leaked anonymously security firm source.
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Awareness is increasing . The government now engages structural plans to enable to separate local governmental network with civilian Internet if needed. The Ministry of Strategy and Finance will provide a cybersecurity center for financial and economical institutions within this year. More importantly, companies now purchase defense systems for their self protection. Sales reports record a boom for this range of products, pictured as a “flood” by an official of a security lab adding “After these attacks, DDoS blocking programs will see a rise in popularity”.
Korean situation is a warning for all countries walking toward digital age and ubiquitous society. One must prepare himself before danger is coming, not after, and the first step is self-awareness
