Monday, November 16, 2020

 

New Transparent Security - Blockchain

 



 

Blockchain in Korea

 

Blockchain in Korean generally has a negative view. Majority of Koreans tend think if crypto currency when they hear the word blockchain. While the crypto currency created an initial interest in the blockchain industry early in Korea, with the Kimchee Primmum, the sector shattered leaving a negative prospective for blockchain in the domestic market.

 

Blockchain technology did not have the chance to bloom. In 2017, blockchain was introduced and prioritized as one of the primary technologies of the future. Numerous projects were launched while the market showed sudden growth. However, unstable cryptocurrency and government restrictions demolished the industry, resulting in delays to or ending major projects.

 

There are still opportunities for blockchain technology to grow. In late 2017, when the government restricted cryptocurrency, the enterprise value dropped rapidly. Yet in 2019, the enterprise value and investment in the industry increased again. The market size of the blockchain industry is small and slow than other government-supported technologies (5G, AI and others), but it is still showing some growth. 

 

Experts estimates that in 2022, the total market size would grow to KRW 356.2 billion, with a growth rate of over 60%.

 

Estimated Market Value

 

Estimated Market Size

2019

2020

2021

2022

84.6

136.6

220.6

356.2

Unit: KRW billion

Source: National IT Industry Promotion Agency

 

Regulation issues

 

Virtual asset, personal information and electronic signature are the three core regulations which affecting blockchain technology in Korea.

 

The virtual asset policy was first established due to the crypto currency issues, where the Financial Service Commission announced the ‘Guide Line to Anti-virtual Currency Laundering.’ After this announcement, the public and media generated a view that crypto currency is not something that the government will support. However, currently the community, companies and government are trying to overcome this negative view and move on to develop the technology and apply it to various sectors.

 

The domestic personal information policies are considered to be overwhelming compared to how people actually use their information. As personal information is strictly regulated only limited information could be used. In January 2020, the 'Personal Information Protection Act', ‘Act on Promotion of Information and Communications Network Utilization and Information Protection, etc’ and ‘Credit Information Use and Protection Act’ were revised to support the use of technology dealing with personal information.

 

The possibility of a blockchain based electronic signature is currently debatable. The current official electronic signature is an authorization certificate. For blockchain electronic signatures to be plausible officially it requires modification from the current products. Moreover, on May 18th of 2020, a bill to discard the authorization certificate was proposed which suggests the potential that blockchain electronic signatures has a better chance in the future. 

 

Conclusion

 

The blockchain technology can be applied in various industries when regulations are more favorable to new technology. The potential that the blockchain can provide to the finance, security, medical, pharmaceutical and other industries can be unlimited. With the recent policies and the Korean New Deal, we believe that there will be a breakthrough for the technology which will provide the environment for blockchain to blossom.

 




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Monday, October 12, 2020

My Own Medical Service

 

My Own Medical Service

 

 


Zero to Infinity

 

Zero health care to Smart Healthcare in two generations.  At the end of the Korean war in 1953, Korea was impoverished country with virtually no access to healthcare.  Today, modern hospitals and healthcare facilities have been established in every corner of the country and all citizens are protected by a national insurance scheme.  Patients come from overseas for high quality, affordable treatment.   The healthcare industry in 2017 was US$ 6.4 billion with a growth rate at a constant 16%. 

 

 

The medical industry is growing driven by three primary factors; an aging population, universally available healthcare through the National Health Insurance Service and concern for future pandemics.

 

Growth Factors

 

One of Korea’s concerns for the future is the aging population. Korea Statistic announced with the current growth rate, by 2045, Korea will have the highest population over 65. As the population ages, the need for advanced and sufficient medical supply will be a crucial issue.

 

The National Health Insurance Service provides affordable medical service for all. As the health service is cheap, it provides the public with access to more medical services leading to more use of medical supplies and services. There is a joke that some seniors visit the hospital for check-ups every few days just to talk with someone.

 

We have witnessed COVID 19 and how it has affected our daily lives. As the world becomes more crowded, advanced, and developed, we cannot underestimate the possibility of another crisis. The need for medical supplies and a system to prevent other infections requires the medical industry to develop. With the development of big data and the many software programs to process it, the medical information field has grown, providing the possibility to customize medical services.

 

Customized Medical Service

 

The Ministry of Health and Welfare (MHW) announced plans to develop personalized medicine technology in 2016 with information data as a steppingstone.  Personalized medicine is defined differently by different countries. The Ministry of Food and Drug Safety defined personalized medicine as drug or drug usage considering a person's genotype. However, following changes in the industry, the definition has expanded. A collection of information such as DNA, diagnosis, clinical information, and personal habits are evaluated to customized medical service while increasing the precision of diagnosis and treatment.

 

To develop Personal Health Records (PHR) which will be the basis of personalized medicine, the government is starting the National Bio Bigdata Demonstration Project,' which will collect DNA and clinical data from over 20,000 individuals to be used for personalized medicine, new medicine and other researches.

 

Decision Maker for My Health Service

 

Health care AI is becoming mainstream as it will provide many health decisions when medical bigdata is applied. However, there are several concerns about using this technology.

 

The first concern is limited data. Most health care data can be collected from health insurance, check-ups status, and individual hospital databases. This information is related to public organizations that have severe restrictions making it hard to collect or distribute data. Moreover, it is difficult to access or use these data due to the Personal Information Protection Act. The second is the possibility of exposing personal information. Individually the data may not be identifiable, but collecting massive data and combining the personal data might reveal individual information.

 

Even with the rapidly changing industry, developments in the domestic AI sector is still under performing. The slow AI development is due to the limited number of advanced AI developers, which leads to slow growth in AI programming as well as the platforms needed to access and distribute it. Moreover, there are also moral issues regarding the responsibility of AI decisions.  When there is a medical error, who will be responsible?

 

To Infinity and Beyond

 

Korea already has a standardized medical healthcare system and a stable medical industry. Medical health bigdata will be refined by the AI system exclusive for health care. There are a few obstacles, such as AI development and medical data regulatory issues, but with continuous development, Korea will soon have a health care system that is customized to each patient and provides personalized medicine.

 

 



IRC CONSULTING 
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Thursday, September 24, 2020

Flying machines

 


Source: pixabay

 

Regulations:

Domestically, the drone is defined in the law as an Unmanned Aerial Vehicle System and Unmanned Aircraft System.

Regulation issues in Korea are the biggest obstacle to the drone industry. In 2017, the government introduced a program to support drone manufacturing companies providing them with benefits, but there are still limitations on the actual use of drones.  The regulations changed again recently with the new Drone Law that allows close to no restrictions on drone usage in selected cities. Even though the drone industry had a late start, the liberalized regulations will open up opportunities in the future.  

Experts predict that the domestic market will grow rapidly as regulations are relaxed and conglomerate invest in the market. Korea is a late starter compared to other countries and the technology might be a bit lagging. However, if the government, cooperates with private companies with the right technology, it will bring positive results.

Based on an article in the Maeil Business Newspaper, the government has composed a three-stage road map to reduce regulations as well as to provide financial support in order to facilitate the safe development of an advanced drone industry. The first step is to develop technology where manually controlled drones can transport weight up to 10kg in non-urban areas. After 2022, semi-automated drones will transport 50kg or more in urban areas. Lastly, after 2025, autopilot advance drones will be able to provide transportation for two or more people. 

The government believes that advanced drones can improve many industries but the most significant change is assumed to be in the agricultural industry.  Most investment is aligned with this belief.

 

Focus of Investment in Advanced Drones

 


Market Potential:

Source: Ministry of Land, Infrastructure and Transport

 

Conglomerates are entering the market as they see the potential that drone technology can create. Major logistics companies are investing in the market and network companies are also looking for possibilities. Hyundai Motors announced that they are planning for commercialized drone taxis by 2023. The current market is focused on military use drones, but experts predict that the market will soon shift to agriculture, content, and construction.  

 

Estimated drone market size:

2016

2022

2026

70

1,400

4,400

Source: Ministry of Land, Infrastructure and Transport

Unit: KRW Billion

Competing with the two large markets of the United States and China, domestic manufacturers will have offer [or 'bring to the table'] unique value added.  While Chinese manufacturers will be able to offer price competitive products given their established supply chain, Korean firms will need a different strategy. For example, they could promote drones that support care and guidance for the elderly or gaming content.  Developing essential parts for drones should also be a priority.  The potential for the drone industry is unlimited. Another related area where Korea's future is bright is the autonomous vehicle industry. 




IRC CONSULTING 
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서울시종로구새문안로92 광화문오피시아빌딩, 1705Tel: +82-2-737-3222,  http://www.ircconsultingkorea.com







Friday, September 18, 2020

No Need to Drive

A long anticipated revolutionary change to travel is the advent of the autonomous (also known as self-driving or auto pilot) vehicle. 



Source: pixabay 


Korea – a Developed Automotive Country.

 

Korea has developed a strong automotive industry. No one would have believed that Korea could be a successful in the automobile business back in the 1980s. Now Korea is known for vehicle manufacturing and Hyundai Motors was ranked 6th by brand value in the automobile industry by Interbrand in 2019.

 

In 2015, when vehicle and parts production decreased with the economic slowdown, Korea started to look to the future and advance technology for future cars such as electric, fuel cell, and self-driving. By 2018, the government announced support for the development of self-driving vehicles. In October 2019, the government also announced that Korea would be the first to establish the infrastructure for autonomous cars with advance policies, networks, roads, traffic control and detailed virtual map by 2027.  It promised support to localize companies and technology for the infrastructure’s core components

 

New Automobile Era

 

There are other considerations for the upcoming self-driving vehicle era. There are various factors that must be developed to achieve a comprehensive self-driving vehicle ecosystem. Electric vehicles, auto pilot software and information sharing platforms are some of the major components that must be developed.

 

The potential of the Korea autonomous vehicle industry still needs development in software and investment in high-tech technicians. On the other hand, there are already in play plans related to vehicle development, ICT industry and transportation infrastructure which are considered Korea's strong suit.

 

Market Size

 

According to an estimate by KPMG, the domestic self-driving vehicle market in 2020 was KRW 150 billion. The annual expected growth rate is 40% and by 2035 it is estimated that the market will reach KRW 23 trillion. This market not only includes the vehicle, but also advance roads, object recognition technology, edge analytics and other industries which will directly affect the self-driving vehicle market. 

 

The upcoming market for automobiles will change dramatically and it will require more than just the effort of major vehicle production companies to maintain the current market. The government will need to provide advanced roads and infrastructure while platform companies need to keep information flow ongoing. The technology for sensors, reactors and AI software is another crucial factor. Korea is preparing to be challenged by unknown obstacles ahead.  





IRC CONSULTING 
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서울시종로구새문안로92 광화문오피시아빌딩, 1705Tel: +82-2-737-3222,  http://www.ircconsultingkorea.com