The Ministry of Knowledge Economy has finalized its master plan to boost the RFID/USN industry, which is often considered "A New Engine for the Economic Growth." RFID and USN stand for Radio Frequency Identification and Ubiquitous Sensor Network, respectively. The two technologies are essential for the upcoming ubiquitous society that connects every corner of a nation with wired and wireless computer and sensor networks. Experts in this field would say that the conquerors of RFID and USN would become 21st Century's Genghis Khan. That is why advanced countries like Japan and USA have been pouring their R/D resources into RFID and USN. To this end, the Ministry has also raised its anchor to sail over the troubled ocean of competition against Japan and USA. It will make it a priority to stimulate the private sector and develop technologies related to RFID and USN through competition. The Ministry will support market players by providing industrial areas for them to open factories and labs. And it will also help small and medium-sized businesses work together by providing advice on technology to those who have difficulty in commercialization.
The many uses of RFID
According to its analysis, RFID will be used in various fields. Some say that we can not do without it in the near future. RFID is a small electronic tag that carries information about an item. When an item has an RFID chip inside it, we can get all information about it anytime, anywhere. In logistics, RFID will bring forth a revolution by cutting costs. USN is a sensor network system that reads every RFID chip at any time, in any location. Those who want it can get that information from a remote area by the linked sensor-networks. The need for RFID and USN will see no limit. The Ministry concluded that all aspects of our lives would need RFID and USN. Logistics, food, manufacturing, security, environment, health, livestock, home, office, credit, bank, school will all be beneficiaries of the two magic techs. When all these fields get RFID chips attached to them, all information will flow like a stream. As an example, when you buy food with RFID chips on it, you do not have to stop at a cashier to pay for it.
You just scan the USN reader, which will catch the price and take money from your bank account automatically through the network. In the security field, it will herald its power. When all cars have RFID chips, USN will know when cars come in and out. It can detect suspicious cars that do not have registered RFID chips. In health, if an Alzheimer's patient has a belt with an RFID chip in it, he can be found easily when he gets lost. Because he passes a USN reader at a certain point, the reader gets the information on his location and transmits it to police. In the manufacturing field, auto makers can make a dream car that is linked with all USN networks with RFID chips in it so that it can give and take all information that the driver needs. On the car, drivers can buy goods and pay for them online. The information about the goods can be transmitted through USN via RFID chips.
The expanding market
The market for RFID and USN will grow at a dramatic speed. The Ministry forecasted that the market would expand to 146 billion dollars by 2017. The growth of the market leads to stiffer competition. USA, Japan and China have ushered in a new war that is invisible. In the USA, the Defense Ministry leads the projects from a strategic point of view. US Defense Ministry has decided to invest 300 million dollars on it. The government also has encouraged private firms, like Wal-Mart and McCarran, to increase their investments in RFID and USN. Japan is one of the countries whose government is leading it into the field. Its government has finalized "e-Japan II Plan." The blueprint is to make Japan a country of RFID and USN connection. The EU has been implementing some exhibition programs in logistics, delivery, and manufacturing to spread RFID and UNS initiatives. The EU will invest 200 million Euros in Information Society Technology(IST). China has been trying hard not to fall behind in the race. The Chinese government has started an initiative called "11-5 Plan". It demonstrates how much the government is involved in the development of the system. China, a physically huge country, is desperate for RFID and USN. It plans to adopt the system and apply it to trade, railroad and postal service.
Korea works to stay in the race
In Korea, despite the expectation that the domestic markets for RFID and USN will grow by 58 percent and by 23 percent respectively, not enough investment has been made to keep pace with the advanced countries. That is mainly because the domestic market is too small. The average revenue for RFID and USN merely reached 1.8 billion Won, or about 1.5 million dollars. In order to improve the situation, the Ministry has decided to take initiative. The Ministry sees that RFID and USN will give birth to a lot of market players in such fields as chips, modules, readers, controllers, sensors and middleware, network security programs, system integration, software and services. The government will help market players take root in the fertile soil. For this purpose, the Ministry unveiled its ambitious plan to make Korea one of the top three countries in RFID and USN. This goal is included in "The 2018 Plan." The plan is divided into two parts on a year-by-year basis. By 2013, the Ministry will enact aggressive policies to help Korean players take 14 percent of the global market.
It will also incubate 30 medium-sized companies with average revenue of 30 billion Won, creating 44 thousand jobs. By the end of 2018, Korean players hope to have 30 percent of the world market. 250 companies with average revenue of 30 billion Won will recruit 120 thousand workers. In order to create a favorable environment for market players, the government will put into action three major market supply policies. The government will adopt RFID for maintenance of all office goods and properties across the nation. All local government should introduce the system so that market players can take part in the project and make money. The Defense Ministry will attach RFID chips on ammunition supplies and airforces parts. In the postal area, it will be recommended that almost all parcels and letters have RFID chips on them by 2011.
To create more markets, the government will give incentives to those who incorporate RFID and USN into their system. Tax cuts will be one of those incentives. Legal services and manpower will be also given to small companies who lack money to spend on legal conflicts and knowledge on RFID and USN. If a small company wants to export its product, it can get help from the government's legal team on the possible legal conflicts that may come while working in overseas markets. It will also assist those who try to co-work with colleges, research centers and companies to enlist new property rights on RFID and USN. Japan and USA are crazy at property rights. The more property rights they can secure, the more pie they get. An official who wished to remain anonymous said that the RFID chip is like a tiny seed that plants sunflowers with a lot of seeds. "USN will be the sun for the seeds," said the official.
