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Address System Reform to Be IT Firms’ Opportunity October 20, 2010

Posted by Bahadir Sahin in English, Haber (News).
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The new address system to be used from 2012, based on the names of streets and buildings, is expected to create a market worth over 300 billion won across the IT industry. The current system is parcel-based.

The Ministry of Public Administration and Security announced on October 18 that it provides preliminary guide for the new system from October 27 to November 30. The ministry is planning to gather public opinion and finalize the preparations for it by July next year.

“The address system, to be changed in about a century, can save 4.3 trillion won a year on the national level, giving a boost to the LBS (location-based service) industry,” said Minister Maeng Hyung-gyu.

With the schedule specified, public and private companies are moving to introduce the new system. Financial institutions are considering how to upgrade their CRM (customer relationship management) solutions. Also expected is a series of system replacement projects in the sectors relying highly on GIS (geographic information system) such as door-to-door delivery, telecom, etc.

The industry estimates the demands at 300 billion won. “The system upgrade demand will explode at government agencies and private firms alike,” said CEO Kim Hak-seong of SI (system integration) firm Wavus. He added, “We will be able to see the private sector utilizing GIS more than ever.”

GIS providers are poised to make it big, too. President Kim In-hyun of KSIC (Korea geoSpatial Information & Communication) said, “Local GIS firms are likely to overwhelm their foreign counterparts, rather underprepared, in the new market.” He continued, “A lot of Internet portal sites as well as financial institutions are contacting us these days.”

IT service providers affiliated with conglomerates, e.g. Samsung SDS, LG CNS and SK C&C, are running their own units solely for the purpose. A Samsung SDS personnel said, “We are closely analyzing the ripple effect the new address system has,” adding that the market can be bigger than the industry’s estimate of 300 billion won. “We will launch a task force soon,” he continued.

Car navigator manufacturers have already begun to update their maps by linking current addresses with the database for the new system. In the meantime, some of them showed embarrassment at the government’s intention to charge for the database.

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