Telematics market growing at an explosive pace The volume of Korea's telematics market is expected to snowball from 186.8 billion won (Approx $180.83 million) in 2004 to 1.75 trillion won (Approx $1.6 billion) in 2008, according to Chun Hwang-soo, senior researcher of Korea's Electronics and Telecommunications Research Institute (ETRI). The number of subscribers to telematics services is also likely to soar from 251,144 in 2004 to 4,648,303 in 2008, he added. In the meantime, the world's telematics market is forecast to grow from $13 billion in 2003 to $41 billion in 2008 with the terminal market accounting for about 50% of the total telematics market. The total number of subscribers to the telematics service in the world is expected to soar from 11 million in 2003 to 62 million in 2008. In particular, after 2007, the number of post-market subscribers is likely to exceed that of pre-market subscribers. In the overseas market, carmakers such as GM and Nissan have been leading the telematics service market as telematics service providers (TSP). The United States is equipped with conditions to lead the world market as it has expansive land, various automobile culture and up-to-date information communication technology. Japan, which recently came out of the navigation-centered initial stage, is striving to develop various telematics services and technologies. The government-initiated vehicle information and communication system has played a role of infrastructure, enabling the Japanese road traffic information system to offer the world's top-level telematics services. Europe, which started to engage in the telematics industry in the mid-1980s, seems to have entered the telematics market in earnest. In 2003, 15 automakers in 13 European countries offered telematics services. In 2005, all European countries are expected to provide telematics services. Meanwhile, South Korea, which has passed through the initial stage, has been pushing for projects to build a telematics model city in Jeju Island and a telematics information center, Chun said. Mobile communication companies and motor companies in Korea are focusing their efforts on the telematics service industry as a means of exploring new market with high value-added, he said. In the meantime, Im Chun-shik, senior researcher of ETRI, said telematics services are expected to bring about 7.3 trillion won in production inducement effects, 1.1 trillion own in value added inducement effects, and the creation of 30,000 new jobs during the 2004-2007 period. Based on the telematics service industry, the nation can secure international competitiveness of automobiles and related industries, said Im. By making a car the third Internet space, the telematics service can offer convenience to drivers, vehicle safety and pleasure to passengers, promoting people's quality of life with mobile digital living, he said. Through the offering of the third space, which connects office and home, the telematics service can improve productivity and provide infotainment services. The offering of telematics service has also contributed to touching off individuals' creativity and promoting a diversified society, he said. In a nutshell, telematics services will make a great contribution to the realization of u-Korea society, where people can freely share various information and knowledge with no gap in the use of information between regions and between classes, in Im's view. Rim Myung-hwan, senior researcher of the ETRI, said Korea's telematics industry is expected to grow at a faster pace than any other country as the nation has such advantages as its high Internet penetration ratio per household, a high mobile communication service subscription ratio and being the world's No. 6 auto producer. Accordingly, to bolster competitiveness of the nation's telematics industry, a cooperative model between different industries should be established and duplicative investment should be avoided, he asserted.