KTNET enabling Global e-tradee

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1 KTNET enabling Global e-tradee October 19, 2004 Korea Trade Network The leader of Global e-trade

2 KTNET Overview

3 Table of Contents 1. KTNET and Paperless Trading 2. New Horizontal Global e-biz Platform 3. Vision

4 1. KTNET & Paperless Trading

5 1. Background

6 2. Key Initiatives Founded by Korea International Trade Association(KITA) in Dec 1991 Comprehensive Trade Business Automation Promotion Act by Ministry of Commerce, Industry and Energy(MOCIE) Pursuing Efficiency of Trade Process & national competitiveness by reducing processing time and costs, through Trade Automation Scopes of the Law -Trade Administration, Foreign Exchange Government Commitment by Korea Customs Service(KCS) KTNET is designated as Exclusive Customs Network Provider in Nov 1992 Scopes of Customs Automation -Customs Clearance, Cargo Management, Duty draw back and etc

7 e-trade Service 3. Who is KTNET? Founded by Government Customs & Trade Automation Services Global e-trade Services Customer Most International-Trade-Related-Actors (Traders, Government Agencies etc) Traders: 12,000+ Logistics(Air, Ship ): 3,300+ Financials : 100+ Govt & Org: 140+ Company Performance Revenue: US$43.2M(US$290,128 per employee), Profit after Tax: US$10.4M ( 03)

8 4. KTNET Networking Quarantine station Domestic bank Trade company Customs broker Korea Customs Foreign bank Trade administration Insurance company Insurance Network Financial Network KTNET Global Networks Clearance Network U.S customs forwarder Shipping company warehouse ASEM PAA Air company

9 5. KTNET Service Trade e-trade Service KTNET's EDI XML based e-trade System has eliminated physical visits to trade-related offices such as banks and other Government Agencies. Its Computerized Trading System enables to practice Paperless Trade. Research e-trade Payment Exporter Importer Marketing Nego Contract Declaration Logistics

10 5. KTNET Service Customs e-customs Service Teaming up with the Korea Customs Service,KTNET has developed a customs information system that handles cargo-related activities swiftly and accurately. KTNET introduced an export customs automation service in cooperation with the Customs Office in It added import customs service in 1996 and an automated customs refund system in 1997,achieving 100% paperless customs procedures. Traders Shipper/Airline Forwarder Bank/Insurance ecustomsframe Organization Transport Customs Service

11 5. KTNET Service Logistics e-logistics Service Increases in the speed of logistics drive economic development. KTNET is proud to cap its logistics innovations with reductions in time and costs associated with cargo shipments.its automated system features 100%complete cargo handling processes from arrival, unloading and warehousing to transportation to the customer. Using EDI document standardization and simplification, KTNET provides the capability for 24-hour real-time logistics service. KTNET INFORMATION Cargo Tracking, Visibility Airlines Traders Customs House Transport Forwarder Warehouse Load Arrival & Departure Export Import Shipper

12 5. KTNET Service Trade Information ctradeinfo Service ctradeinfo is a Trade Database Service that allows you to access data for approx 16,000 commodity groups for Korea. (www,koreatradeinfo.com) Having exclusive access to Import/Export information from vessel manifest, Custom's Entry and other Trading related data at Korea Customs Service, ctradeinfo collects more than 30,000 import/export entries and 40,000 bills of lading everyday. It features 24-hour-a-day on-line-access Trade Information and Business Directory Service. Cargo Tracking Statistics Information I N T E R N E T Cargo Tracking Information Statistics Value Added Service CargoPass Customs & Trade Information MFCS (Cargo Tracking & Statistics service) (Trade Info) (Manifest)

13 5. KTNET Service Certificate Authority TradeSign Service TradeSign( ensures that e-trade systems are working errorfree via Trusted Third Party (TTP) Certification. The Government s Designated Certification Agency provides a safe and reliable basis for spreading e-commerce including B2C,B2B,B2G and others. SSO NA DRM OCSP Web Server cert Certificate Roaming CA (HSM) Timestamp RA/AutoRA G-XML Hub Specific Enabler user TCP/IP HTTPS(SSL) (S/MIME) Auditor KTNET Core System (internet service) CTW XML/EDI Users KGS Directory DB (KCIS ) Web User Users TradeLink CA TradeVan CA TEDI CA SNS CA CIECC CA Malaysia CA PAN-ASIA E-Commerce Alliance TEDI Japan Trader (KR/JP e-trade Hub) Bolero CSP Bolero CMP Bolero User Bolero Community IDENTRUS E Commerce

14 6. Key Internet Services etradeframe TM ecustomsframe TM elogisframe TM etf eliminates trader's physical visits to OGAs Its Internet based trading system enables to practice Paperless Trade Internet-based e-document Exchange and Data Utilization Service for Customs Brokers & Traders Enables to practice Customs Clearance through Internet Internet-based Conveyance-Logistics Automation System using EDI technology Air/Sea Freight Forwarders and shipping companies use elf TM CTradeWorld TM KTNET proudly presents e-trade Portal Service, designed to pursue goal of implementing complete range of Paperless Trade

15 CTradeWorld on Single Window etradeframe Trade KCIS CargoPass CTI Customs MFCS Logistics ecustomsframe elogisframe

16 2. New Horizontal Global e-biz e Platform

17 1. Cross Border e-trade e Service Project PAA (Pan Asian e-commerce Alliance) Project Electronic Trade Documentation Platform between 8 Asian Economies Government assists in Funding, Legal Issues, Marketing and others e-trade Service Providers in 8 Economies (China, Hong Kong, Japan, Macau, Malaysia, Singapore, Taiwan and Korea) Business to Hub to Hub to Business Model Korea Japan Paperless Trade Project Electronic Trade Documentation Platform between Korea and Japan Government assists in Funding, Legal Issues, Marketing and others From B2B documents to B2G document and Financial settlement service Korea - EU (ASEM) Paperless Trade Project Electronic Trade Documentation Platform between Korea and Europe Government assists in Funding, Legal Issues, Marketing and others

18 2. PAA Project Cross Border e-trade Service in Asia : PAA Taiwan Trade-Van Global e-trade Hong Kong Tradelink Korea KTNET Domestic e-trade e-mp Trader Carrier Customs Manufacturer China CIECC Japan TEDI Customs Broker KTNET Forwarder Macau TEDMEV Singapore CrimsonLogic Malaysia Dagangnet Trucker Warehouse Bank Insurance Authority

19 3. Korea Japan Paperless Trade Pilot Project : Hyundai Motors - Networking between Hyundai Motors and its Local Partners (Suppliers, banks, transportations and others - Networking between Hyundai Motors and Mitsubishi Corporation - Networking between Mitsubishi Corporation and its Local Partners HMC e-procurement System Korea Customs Service Bank Hyundai Document Standard Translation & Transformation KTNET L/C EDI/VAN Insurance Customs Declaration Insurance PAA Standard XML with Digital Signature Thru Secure Channel I/V, P/L B/L adv, Mill P/L Invoice, B/L Advice Airway Bill TEDI ASP Service Web Bosch Siemens Mitsubishi Corp.

20 4. Korea EU Paperless Trade Project Korea Real Transaction ( Invoic, Dispatch Notice ) KTNET Germany Korea GMCC Messaging Center Repository Center Forwarder Europe Hyundai Mobis BOSCH/ M+P s Partners Other Com. Developed Docs Invoic Dispatch Notice Expansion Invoic : Invoice + Packing List To Develop Docs BADEN-WURTTEMBERGISCHE BANK P/O Shipping Information Shipping Order Shipment Notice B/L Information Settlement Information Air Waybill BANK SIEMENS BASF BERU INA

21 3. Vision

22 Riding on Global e-trade e Paradigm Multi-channels Single Window Overseas Trader Trader Private VAN e-mp VAN Internet Market Research Marketing Trade Process Payment Logistics Negotiation Declaration Contract Global Link Search/Translation CA/Payment Internet Customers e-trade Platforms e-mp Inform diary Bank Logistics Credit Information Buyer/Seller Information Laws/Regulation Etc. Insurance Agencies Customs Port Authority

23 Thank You Jae Hoon Kim e Strategy Biz team +(82) Jaykim@ktnet.com

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