Until now, the Korean telecommunication industry sole client base had been individual customers.  They were naturally the target customers, since people were the ones who needed telecom services for their mobile phones, home phones, and office phones. However, the telecommunication service  industry had been facing market saturation with its 47.9 million users, which accounted for almost the entire Korean population. Hence, it had been difficult to go beyond the fierce zero-sum battle over the fixed pie amongst the three major telecom players: SKT, KT and LGT.

Nevertheless, the three telecom service moguls overcame recent stagnant growth and have made a breakthrough with the B2B market. They had found a convergence model where they can create value and services by providing software solutions to a carefully selected range of core businesses of such as logistics, finance, education, healthcare, manufacture, transportation and SME (small medium enterprises).

This opened new windows for the telecommunication sector, and also created synergy value between businesses and optimized services for end consumers. Hence, the three telecom services launched their innovative projects; SKT introduced its IPE (Industry Productivity Enhancement), KT with its S.M.ART (Save cost Maximize profit Art), and lastly LGT began its ‘Taltongshin’(beyond telecom) project.

On this issue, I am going to first introduce SK Telecom’s IPE, with KT and LGT on the upcoming issues.

SK Telecom

IPE, Industry Productivity Enhancement was built as SKTelecom’s goal of becoming a ‘Global ICT(Information & Communication technologies) leader’, and also to evade stagnation in the industry. SKT’s qualified TF(task force) has selected upon eight core businesses in  logistics, finance, retail, education, healthcare, manufacturing(automobiles), housing construction, and SME(small medium enterprises). I will introduce POSCO and the automobile industry’s MIV as two of SKT’s IPE systems.

To establish a firm IPE in manufacture, SKT has collaborated with POSCO (world’s top producing Korean steelmaker) to construct a “Smart Factory,” which is based on the concept of the smartphone ‘Mobile Office’(operational management service which includes name card, electronic payment, schedule, bulletin, staff check etc) SKT had provided the previous year.  Hence within the next 4 years, POSCO is planning to replace all in-house cable phones to wireless phones, and establish a ‘(fixed wireless) broadband convergence network’ using the WCDMA(3G mobile) network. These ‘smart’ fixes are expected to bring positive effects on logistics, equipment, safety, and energy savings to POSCO.

SKT is also establishing an IPE for the automobile industry called MIV (Mobile In Vehicle). MIV is a diagnostic remote control system that provides services such as anti-theft, emergency rescue, AV integration system, meter check, etc , which is also anticipated to enhance productivity.

President of SK Manwon Jeong has stated the four mission statements of accomplishing SKTelcom’s vision of becoming a global leader in ICT, which are procuring a patriotic leadership in technology, developing of new markets, propelling globalization with its synergy effects, and increasing consumer welfare.
And, they are expecting to do so, however, not solely in their captive marekt, but by creating new market space many diverse industries.

Since Samsung Electronics release the world’s first Full HD 3D LED TV on February 25th, there has been explosive responses worldwide. Over the past 6 weeks, Samsung’s 3D TV has reached 10,000 in domestic sales, which means that 245 sets have been sold daily,  and just announced that it is expanding its production number from 2 million to 3 million as demands have been higher that expected.

Samsung has applied the ‘2D → 3D converting technology’ that allows the viewers to watch all programs in 3D with a click of the remote. It has a ‘real black filter’ to add shaded depths to bright areas of the scene to give a more dimensional figure. Furthermore, viewers can adjust amongst the 10 levels of the 3D effect. It has higher definition, with a slimmer design of 23.9mm, and is price competitive compared to the existing LED TV model.

Since its launching events in Europe, US, Latin America, and the CIS a month ago as, Samsung is leading a 3D TV fever with its global marketing strategy. Orders have been flooding, that Samsung 3D TV exports had to be shortly delayed.

In Manhattan’s Samsung 3D TV launching event, director of ‘Avatar’ James Cameron showed up and praised Samsung as “Beautiful and a business leader of the TV industry that has brought the 3D entertainment from theaters into our everyday homes.”

ESPN, Sogeocable, SBS have already gained 3D broadcasting rights for the 2010 South Africa Worldcup, which is expected to further boost demand for 3D TVs.

3D is expanding into major motion pictures, animation, home entertainment, concerts, sporting events, broadcasting television, advertising & smartphones. It is clear that the 3D industry is now never like the shows you saw in theme parks with the disposable blue& red glasses. 3D entertainment is not going to be a circus that leaves when the novelty is gone. It is here to stay and Korea is no way a trivial player in this field.

Since the Avatar blow, the 3D industry that had been making steady growth is now in full blow. It is undeniable that this 3D phenomenon is here to stay. Not only are movies shot in 3D, but 2D movies are being converted into 3D (even past blockbusters can make a 3D comeback), and furthermore 3D panel TVs are selling like hot cakes. Korea has definitely not been shy in this growing 3D market, and I am going to introduce two key players (one S/W and one H/W respectively) in this industry: 3D content conversion company Stereo Pictures Korea and later this week the Samsung Full HD 3D LCD TV.

Stereo Pictures Korea (SPK)

Currently at work on Warner Brothers “Cats& Dogs 2″ scheduled for worldwide release coming July, this 3D content conversion company from Korea stands competitive amongst other companies in Hollywood, such as In-three and Prime Focus.

SPK’s competitive edge is in their “superior quality, fair pricing and efficiency.” With their advanced “Dynamic 3D” software, they range around an average of $5 million for each movie conversion, and with a time efficiency of 7:3 compared to some other converting firms in the US, SPK sells and delivers.

Tsui Hark, a Hong Kong filmmaker, who had been particularly impressed by a 3D conversion portion of the movie “300,” personally made a visit to SPK a month ago, in plans to convert his upcoming movie into 3D. SPK has also talked with Paramount, Fox, MGM and is expecting to obtain at least 10 more orders this year.

SPK had further opened its LA branch in December 2007 for marketing and development, and has former Warner executives James R. Miller and Dan Romanelli as corresponding managing and senior partners.

SPK’s business has positive outlook. With the growing demand for 3D, filmmakers now see the advantages of 3D converting compared to shooting in 3D. Filming in 3D from inception showed limitations when filming extensive landscapes and projecting fully three dimensional pictures when CG and actual images are combined. With SPK’s Dynamic 3D technology, and 3D converting & retouching engineers, the contour, depth and volume are adjusted to bring the directors vision into live. SPK is currently on a hiring spree in plans to hire around 3000 more employees by this September to meet the growing demand of conversion orders.

Keep up with Koreaninsight for the next issue on the Samsung Full HD 3D LCD TV.