Hwang Jong-Sung, PhD vice president of the National Computerization Agency (NCA)

Hwang Jong-Sung, PhD vice president of the National Computerization Agency (NCA), IT Strategy Division said in an interview with The Korea IT Times that the NCA is promoting a business model based on RFID/USN infrastructure. Mr. Hwang forecasts that the RFID/USN world market will grow from $11.36 billion in 2004 to a total of $54.08 billion by 2010 through a yearly average growth of demand for RFID of 13.3%, and a yearly average growth rate for USN of 25.5% The NCA vice president stressed that his Agency plans to invest 1.1 billion won (approx. $1million) this year in the formation of RFID/USN infrastructure plus 4 billion won (approx. $3.6 million) in standardization and developing a suitable business model as well as sensor network applications. Mr. Hwang emphasized the NCA's leading role in the field of RFID, saying that the Agency has provided various forms of policy support such as launching the Korea USN center in February 2004 to effectively drive the Ubiquitous Sensor Network construction project. Furthermore, the Agency has submitted 8 domestic forms of standardization to the Telecommunications Technology Association (TTA) that were the result of the Agency's creation of a USN standardization forum. In addition, the NCA has carried out research, since published, on which to base national policy, such as counter measures to protect information. Mr. Hwang said the Agency has developed 6 RFID/USN business models for the areas of procurement, national defense, commerce and industry, aviation, health care, and the public sector. On the subject of the prospects for the commercialization of RFID/USN, Mr. Hwang said that the numerous fields in which it is possible to apply the technologies and add value means they form a key element in accomplishing the government's policy goal of raising per capita gross domestic product to $20,000. Mr. Hwang said that RFID/USN will promote national GDP in a direct sense, since the production of the associated equipment will add to national income and help create employment. He foresaw a ripple effect generated by the commercialization of RFID throughout society that would include innovation in the private sector in areas such as logistics as well as greater efficiency in the public sector. For instance, he explained that by introducing RFID into government procurement, the efficiency and transparency with which national assets can be managed will be enhanced. In the case of business models developed for MOCIE, by applying and installing RFID in logistical centers, industrial competitiveness can be improved through sharing of information in real-time, Mr. Hwang concluded.