Trend of the Transportation Card Industry in KOREA
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1 Trend of the Transportation Card Industry in KOREA Seung Hyeon Oh COMPANY ( jakeoh@kotcia.or.kr) L O G O
2 Contents Overview of Korea transportation card industry association History of transportation card Overview of transportation card industry Trends Expansion to a micropayment NFC(Near Field Communication)
3 Overview of KOTCIA Designation Establish Chairman Headquarter KOrea Transportation Card Industry Association Dec CEO of Korea Expressway Corporation Seoul, Korea Members - 40 Corporations Prepaid (KSCC, ebcard, etc.) Credit Card (KB Card, Shinhan Card, Lotte Card etc.) IT service (SAMSUNG SDS, LGCNS, LDCC etc.) Media(Ubibelox, Biosmart etc.) terminal supplier, Chip vendor (Infineon, STM, SAMSUNG etc) Mission Support One Card All Pass ( 全國互換 ) Support international and domestic activities Saturated public transportation card industry
4 History of transportation card Establishment Stage ( 96~ 97) Appearance of transportation Card 96. The first transportation Card System(Seoul) Growth, stabilization Stage ( 98~ 04) Provided and developed the technology and infrastructure 98. The first transportation Card System(Busan) 00. The discount system 01. The Transfer discount system 03. Hipass 04. Opening of Seoul New Transportation System(KSCC) Lead, Jump up Stage ( 05~ ) Expended service area and scope 08. Transfer System Service open (KSCC-EB-) 08. The establishment and notification of One Card All Pass Master Plan(MLTM) 11. One Card All Pass Open (Gwangju-Hanpaysys)
5 History of transportation card BUS Token : 77~ 99 Ticket : 79~ 04 RF Card( 96 ~ ) Card based NFC( 12 ~ ) Used 129 of 165 cities and towns (78%) Demonstration 12 Subway Ticket: 86~ 09 Bus Subway Mobile Card
6 Overview of Transportation card industry Prepaid card companies (by regional groups) Issuance status of Transpotation card * 2011 Inchon EB Card Gyeong-gi EB Card Seoul KSCC UPASS Gangwon EB Card Company Accumulated issuance number (10 Thousand) % ChungNam EB Card JeonBuk Gwangju Hanpaysys JeonNam ChungBuk Daejeon Hana Bank GyeongBuk Cardnet Upayment Topcash Daegu KSCC Cardnet Upayment Ulsan GyeongNam Busanhanaro Busanhanaro Busan Topcash Busanhanaro Total 10, UPASS 3, KSCC 3, EB Card 1, Jeju KSCC Expressway Hipluscard 2,701 25
7 Transportation card T-money UPASS Cash bee MYbi Hanaro Card Daekyung Card Toppass hanpay Hanggumi Card Top cash K-CASH hi-pass+ Glory Card Credit Card Disposable Card Structure of Card Accessory Cards
8 Overview of transportation card industry Amount of Transportation card payment(2010) About 7 Trillion Won Total sales figures(2010) About 2,500 Million Won (unit : trillion Won) (unit : 100 million Won)
9 Overview of transportation card industry The transportation card can be used in commerce and public service CVS Fastfood Theater University Vending Machine Customer Bus Transaction Data Payment Mobile/Telecom Subway Transaction Data Operating Center Transaction Data Bank Prepaid card Credit card Taxi Payment Payment EXP. way Payment Transaction Data Credit Card One Card All Pass 하나의카드로모두이용 Complaints commission Parking lot National park Sports Prepaid Card AFC(Automated Fare Collection) : 자동요금징수
10 One Card All Pass ( 交通 Card 全國互換 ) Main agent Timescale Ministry of land and transport and maritime affairs 2009 ~ 2013 Participant Local Governments, Public transportation operators, Rail transport operators, Expressway operators, Transportation card operators Vision One transportation card is available for public transportation in every city nationwide Target Public transport(bus, urban rail), expressway tolls, railway, intercity bus Step Standardization and development of technology Build Infrastructure Compatibility between operators * Build infrastructure is in progress
11 One Card All Pass ( 交通 Card 全國互換 ) Development and dissemination of standards Standard card (KSX6924) Prepaid card/credit card User file structure Establish the key management measures and define the encryption algorithm Define the command and protocol Develop additional information (railway, express way toll) Standard purchase SAM (KSX6923) Transportation cards are available all operators Establish the key management measures and define the encryption algorithm Define the command and protocol Standard Terminal Mutual settlement system Transportation card usage collection system
12 Expansion of the micropayment Saturated public transportation card industry Now completed 129 of 165 cities and towns Difficult to launch in other regions (regional monopolies) Expansion to a commerce Target to mainly large chains Store micropayment CVS, fastfood, bakery, bookstore, movie theater etc. Expansion to a public service and on-line Public facilities, Parking lot etc. Open market, portal, game, entertainment, webhard etc.
13 NFC(Near Field Communication) Types of NFC services in the future life 8:00 AM Transportation card Order and pay by smart menus 12:00 AM by LBS, obtain restaurants & discount store 6:00 PM Lookup mobile household account book 10:00 PM Mobile Pass` Using mobile vouchers at CVS Mobile Transfer Mobile shopping and delivery 9:00 AM 1:00 PM 4:00 PM 7:00 PM
14 NFC Growth of the domestic Smartphone users Growth of the the world Smartphone users (e) 2012(e) 2013(e) 2014(e) Approximately 40% of the entire mobile phone in 2014, Expected that Smartphone subscribers in * Expected share in 2014 Korea in 2014, will be more than 50% of the total population of Korea Smart phone 41.5% feature phone 58.5% Smart phone 28.2% feature phone 71.8 Smart phone 31.7% feature phone 68.3% Source : Gartner, IDC, Strategy Analytics; KISDI, Korea Communications Commission
15 NFC Enable the government-leding initiatives Established the "Korea NFC Standardization Forum (June. 2011) Launched mobile card pilot project (Nov. 2011) Expands 7 Strategies merchants (2012) GS Retail(CVS), E-Mart, LotteMart, HomePlus (Discount store), GS Caltex, Skenclean(Gas station), SPC(Bakery) Launches the mobile postpaid transportation card (2012) Introduction of international patent Security systems, authentication, and compatible communication protocols, etc. can be applied directly to the application business ISO/IEC , ISO/IEC , ISO/IEC ISO/IEC 21481, ISO/IEC 22536, ISO/IEC 23917, ISO/IEC 28361
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