First off, pilot projects are to enhance awareness about RFID/USN. The private sector has little understanding of RFID technology according to deputy minister Kim Won-sik, Ubiquitous Society Strategy Office, the Ministry of Information and Communication (MIC).
Actually, the majority of private enterprises agree that RFID introduction is a global trend, but they hold a reserved attitude about their introduction period.
Concerning such phenomena, Kim attributed such reserved posture to a high equipment price tag and shortage of successful examples as staple reasons.
In this vein, the deputy minister points out: "It is necessary to induce equipment price's decline as well as to present largescale success instances by unearthing promising fields whose private ripple effect is big and by propelling large-scale spread project continuously."
Attached importance to demand activation
As part of domestic RFID/USN industry nurturing policies, Kim first of all said that MIC attaches importance to demand activation. The Ministry will try to create initial demand for domestic corporation nurturing through pilot projects and unearth new service models.
Such pilot projects in 2006 include Infectious Scrapped Material Care, Munitions Control, Port Logistics Efficiency, Gaesung Industry Complex Customs Clearance Simplication and Flight Goods Record Pursuit, to name just a few.
The deputy minister said that the Ministry also intends to attempt international pilot projects between countries. International cooperation in securing core technology, standardization, and private exchange enlargement is necessary since RFID/USN is a new technology which is not yet common throughout the world.
With regard to technology development, Kim notes that lowering prices on how much it costs for tag manufacturers to produce tag is a key point, adding that an invisible SI field is also important for system integration.
MIC is propelling the core constituent technology development for RFID/USN technology commercialization. This includes such programs as UHF RFID as well as Ubiquitous networking technology development, USN middleware platform technology development, RFID/USN standardization research, and RF Shower development for the enlargement of RFID recognition distance, according to Kim.
The deputy minister pointed out that it is still early to call such pilot projects successful. He also expects that if such pilot projects go well, especially core technology development, they will be able to be used in other areas such as Kimpo or Incheon airport's customs clearance. Kim also mentioned u-IT cluster construction and the importance of nurturing manpower as MIC's policies to bring up the RFID/USN industry.
The u-IT cluster is to construct a sharing foundation facility which can provide RFID/USN companies at home and abroad with comprehensive services from design and fabrication up to performance tests and certification. This shared foundation facility is scheduled to be completed by the end of 2008, starting its related facility work at the end of 2006. In regard to manpower nurturing, MIC is supporting three IT research centers -- Yonsei University, Sunchon National University, and Kangwon National University -- to develop high-grade RFID/USN technology professionals. Korean RFID technology on par The deputy minister assesses domestic RFID/USN business by saying: "In the case of RFID-related core technology, the United States monopolizes almost the majority, but Korea also is reaching to a worldwide level in terms of application technology." Meanwhile, the competitiveness of RFID-associated products at home has been improving, kim said, largely due to MIC pilot projects. He cited an increasing RFID localization rate from 26% in 2004, through 88% in 2005, to a 96% 2006 estimate. Kim further stressed that in some new RFID technology fields like mobile RFID, Korea is preparing a basis to advance beyond other countries. For reference, mobile RFID is a new RFID technology which can enlarge established RFID services. Services such as circulation and logistics are currently only usable in business to business transactions. But by embedding RFID into cellular phones, the services can be used in business to consumer transactions as well. Cell phone RFID could be used for instance to confirm detailed information of display items in museums or exhibitions, to require circulation channels, learn the habitat information of foods, or preview music files in front of a CD, DVD, or movie poster. In the field of USN, Korea is located at a similar starting line with advanced countries, the deputy minister said. He added that since USN is currently in an initial industrialization stage before its full-scale global commercialization, its possibilities are endless. RFID activation within 5 years Kim spoke about overseas inroads by domestic RFID/USN business providers: "I cannot but point out that in the case of domestic RFID/USN-related corporations, corresponding country's policy trend as well as market information to be necessary for on-the-spot marketing are short." In this context, MIC is providing domestic corporations with related information on China's and Japan's policy trends through the Korea-China-Japan RFID/USN Working Council. Information focuses on frequency allotment, RFID introduction plans, and our corporation's inroad possibility forecasts. Moreover by holding the RFID/USN Korea international exhibition, MIC provides a meeting ground through which overseas buyers and domestic corporations can exchange market information, the deputy minister said. With regard to the proper moment RFID will be activated, he said he thinks it won't take long, expressing his opinions that if RFID pilot projects conclude successfully its activation is likely to be possible within 4 to 5 years. Last but not least, he said that RFID is indispensable for building a Ubiquitous society and gaining international cooperation.
