On the Scene Report -- iPark Singapore iPark Singapore, forging new business opportunities for Korean ICT in emerging SE Asian Markets As South Korea emerged as a world ICT powerhouse in the 1990s, its Ministry of Information and Communications (MIC) established the Korea IT Industry Promotion Agency (KIPA) to be the catalyst for its global drive to market its leading edge technology to the Asia-Pacific. Starting from 1998, KIPA began setting up "iPark offices" in strategic locations worldwide to facilitate this global marketing drive with special emphasis on Korean software. Today, there are eight (8) "iParks" in all and they are located in Shanghai and Beijing (China); London (UK); Osaka and Tokyo (Japan); Silicon Valley and Boston (USA); and Singapore (which covers Southeast Asia, India, Australia and New Zealand). "iParks" are corporate offices that are set up to provide business advice and support, and to facilitate the needs of Korean ICT companies, especially those in software, systems integration, and IT services, that are seeking new markets, partnerships, channels and distributors, SI projects, investments, venture capital funding, and joint R&D ventures. iPark Singapore, which was established in October 2002, is unique among "iParks" in that it serves a diverse, heterogeneous, multi-faceted region rather than a specific homogeneous country or continent. Due to its strategic location and excellent business and communications infrastructure, Singapore was selected to be the gateway and launch pad for Korean ICT targeting the ten-nation ASEAN regional grouping (Singapore, Malaysia, Brunei, Thailand, Indonesia, Philippines, Vietnam, Cambodia, Laos, Myanmar) plus the Indian sub-continent comprising of India, Sri Lanka, Pakistan and Bangladesh, and the Oceania region comprising of Australia and New Zealand. This diverse region, which comprises a mix of developed and developing markets (majority are emerging markets), is increasingly becoming very attractive and important for Korean technology and expertise, as evidenced by the recent focus and visits by South Korea government officials in Southeast Asia, as well as the recent visit by President Roh Moohyun in December 2005 to Malaysia and Philippines. In December 2005 also, during the ASEAN Business & Investment Summit in Malaysia, ASEAN and South Korea signed an Agreement that will pave the way for the setting up of a Free Trade Area later this year. At the same time, South Korea's Minister for Information and Communications, Dr Chin Dae-je, visited Malaysia, Singapore and the Philippines, whilst attending the ASEAN Business & Investment Summit in Kuala Lumpur. In order to effectively service and promote the interests of Korean ICT and software vendors in Southeast. Asia, iPark Singapore has quickly assembled a unique set of capabilities that drive its day-to-day business affairs. Since 2002, iPark Singapore's activities are centered on building and maintaining strong businessbuilding relationships with senior officials and executives in both the public and private sectors in the region. This close collaboration with captains of industry, experts, entrepreneurs and government officials, has enabled iPark Singapore to feel the pulse and local aspirations of government and enterprises in areas such as technology adoption, deployment and enhancement in realizable projects (especially in SI & Software) and achievable goals. Also, iPark Singapore's country to specific country perspective and understanding is in harmony with the unique cultural nuances, abilities and limitations as well as the different development status of each country in SE Asia. The versatility and experience of the iPark Singapore team is another reason why it oversees such a diverse region. "We have a highly experienced and dedicated Business Development and Marketing team. We understand both the public and private sectors of each country," said Mr Bob Chua, who has been Chief Executive Director of iPark Singapore since its inception. "We have an intimate knowledge of Korean ICT know-how with particular emphasis on the software and SI business. As such, we are able to share with Korean vendors our knowledge of the business culture, needs and directions of the South East Asian region." "Korean software and SI companies are in a favorable position to take advantage of the rapid software growth in the region. Firstly, Korea is a leader in sophisticated software that is of interest to the region. This is especially so for technology sectors such as mobile, broadband, Internet, ubiquitous networks, e-Government, digital content, and information/homeland security. Secondly, being Asian like much of the region, Korea is able to develop software to suit an 'Asian-centric' environment. Thirdly, Korea is located very close to the fast-developing markets of the region," said Mr Chua. More than 200 Korean software SMEs that have an interest in the region are on iPark Singapore's current marketing database. iPark Singapore provides these SMEs with regular market intelligence, helps promote their technology & solutions at major regional trade shows (e.g., CommunicAsia, Global Entrepolis, PIKOM Software Show - PS3, Bangkok International ICT Expo), provide marketing, public relations and office support for visiting Korean vendors and organize 1:1 business-matching, channel recruitment, and customer-vendor networking sessions. On average, at least one major networking session is organized every quarter in one of the countries in the region. For 2006, four networking sessions are being lined up in the following countries: Vietnam (May), Singapore (June), Thailand (August) and Malaysia (October). Over the years, iPark Singapore has built a strong network and credible business- forging relationships with governments, ICT-related organizations and businesses, investors, venture capitalists in the region, as it brings together Korean technology and regional partners in collaborative win-win partnerships. In terms of links with pro-business government agencies, iPark Singapore works closely with the leading local bodies like Infocomm Development Authority (IDA) of Singapore, Malaysia's Multimedia Development Corporation (MDC) and Multimedia Super Corridor (MSC), and Thailand's Software Industry Promotion Agency (SIPA). For ICT-related organizations, strong links exist with the Singapore Business Federation, Singapore InfocommTechnology Federation (SITF), the Vietnam Software Association (VINSA), Aspiluki (Indonesia) and Persatuan Industri Komputer Dan Multimedia (Association of the Computer and Multimedia Industry of Malaysia or PIKOM)(Malaysia), and Association of Thailand Software Industry (ATSI). Success Stories Between 2002 and 2005, iPark Singapore has facilitated several notable successes between Korean SMEs and regional partners and customers. Some examples are: * Payletter Inc., an Internet billing and payment solutions company, which successfully marketed its solutions to game publishers in Thailand, the Philippines and Indonesia * Viascope Intl, a network security solution company, which concluded sales of its IP scan to leading electronics manufacturers in Singapore and Malaysia. * THG e-Net , Korea's E-Net Corp's joint venture in 2002 with iTech Worldwide Sdn Bhd, a wholly-owned subsidiary of the KLSE-listed TH Group Bhd,, which saw a portfolio of solutions for the business-toconsumer and business business-to-business needs being delivered to the Malaysian market, especially in Banking and Telco markets. * SoftForum, a leading e-security company, which captured the No. 1 market share in the PKI (Public Key Infrastructure) sector inKorea. SoftForum has set up a overseas office in Malaysia last year in June 2005, and successfully sold its solutions to one of the Top 5 Banks in the country. * Hanwha S & C, a leading homeland security systems provider, that successfully sold and installed key fiber-optic based systems for homeland and perimeter security to major Singapore Government customers through one of iPark Singapore's top market channels in the region. iPark Singapore - Targets for 2006 One of the business targets for iPark Singapore in 2006 will be the introduction of a focused in-country market advisor in Malaysia and Thailand as a pilot project. This implementation will help to create more dedicated market presence and establish an in-depth networking contact in these two countries that Korean SMEs can latch on to. "As these countries are fast-growing markets, they will require more in-depth attention and focus. Our near-term plan is also to set up 'virtual iParks' in Kuala Lumpur and Bangkok and possibly a iPark satellite office in Hanoi, Vietnam, so as to be closer to the ground, and be more involved daily in local projects with Korean vendors. With this implementation, we will be able to provide more accurate, timely and relevant information, promotional support, and project monitoring to the Korean SMEs," said Mr Bob Chua. "For 2006, iPark Singapore will continue to focus on fast-growing, specialized ICT sectors that reflect the strengths of "Dynamic u-Korea" as envisaged in Korea's IT839 strategy, such as e- Government, digital content, ubiquitous networks and mobile technology. Within these sectors, special attention will be paid to promoting new technologies such as WiBro, DMB, USN, Telematics and RFID. Finally, iPark Singapore will also be gearing up to support Korean ICT companies that have plans to be listed (IPO) on the leading regional stock markets like Malaysia's BURSA, and the Singapore Exchange (SGX). In the interim, before IPO, we will also assist Korean vendors in 2006 to procure venture capital funding for expanding their operations in SE Asia, and we do this through our proven Investment Relations (IR) Forums that are held in both Singapore and Malaysia, the 2 key Venture Capital markets in SE Asia.