The Present and Future of Korea’s e-Trade (Paperless Trading)
description
Transcript of The Present and Future of Korea’s e-Trade (Paperless Trading)
e-Trade (Paperless) Korea, Innovation 2007 e-Trade (Paperless) Korea, Innovation 2007
The Present and Future of Korea’s The Present and Future of Korea’s
e-Trade (Paperless Trading)e-Trade (Paperless Trading)
Capacity Building Workshop on Trade Facilitation Implementation for Asia and the Pacific Region
March 18, 2005, Kuala Lumpur, Malaysia
Dr. Yoon Say Jeong, Secretary General
e-Trade Facilitation Center
KITA (Korea International Trade Association)
e-Trade (Paperless) Korea, Innovation 2007 e-Trade (Paperless) Korea, Innovation 2007
Table of ContentsTable of Contents
1. Brief History of e-Trade(paperless Trading) in Korea
2. Current Status of Korea’s e-Trade
3. Background of innovating e-Trade strategy in Korea
4. Organization
5. Goal & Strategy
6. To-be Model of e-Trade Service (1/2)
7. To-be Model of e-Trade Service (2/2)
8. Roadmap of 3-year Innovating plan
9. e-Trade Service (Phase 1) – e-L/C System (for Exporter)
10. e-Trade Service (Phase 1) – Conceptual Model
11. Lessons Learned
12. Future work : International Cooperation
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1. Brief History of e-Trade(paperless Trading) in Korea
In 1989, Korean government initiated “Comprehensive Trade Automation Plan”
In 1991, Korea enacted “Act on Trade Automation” and Ministry of Commerce & Industry (currently MOCIE) made an “Agreement on Trade Automation” with Korean Customs Service
In 1991, Korea Trade Network (KTNET, Capital :US$75 million) was established by the investment of private sector (Korea International Trade Association, 100%)
Korea Customs Service designated KTNET as sole Trade Automation Service Provider Korea realized a 100% electronic customs clearance system through both VAN/EDI and Internet
Major part of Trade Automation System is customs clearance, But it covers LC advice, logistics, finance and payments and other trade related B2B services
Samsung Electronics estimates that it has benefited US$800 million through Trade Automation System every year, reducing ordering time from 10 days to 2 days.
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Development stage
year1992 1999
Task and statistics
computerization
process computerizati
on
Paperless clearance
EDI clearance automation project for 6 years
commencement (’92)
EDI clearance automation project for 6 years
commencement (’92)
Trade statistics computerization
Trade statistics computerization
20011974
•Export clearance system(1994)•Import clearance system(1996)•Export cargo system(1997)•Import cargo system(1998)•Customs duty back system(1997)
•Export clearance P/L system(1995)•Import clearance P/L system(1999)•Export automatic clearance system (2000)
• Electronic fund transfer for
duty(1999)•Electronic Value added tax receipt (2001)
Business Process
computerization
P/Lㆍ automatic clearance system
Diverse Initiatives in Clearance and Cargo Management
1. Brief History of e-Trade(paperless Trading) in Korea
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2. Current Status of e-Trade in Korea
Bonded Warehouse
Trader
Customs Broker
Inspection Co
Air Line
Other Government Agency
Bank
KCS
KTNET
* KCS : Korea Customs Service MFCS : Manifest Consolidation System
MFCS
100% of Customs Clearance and Logistics
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3. Background of Innovating Korea’s e-Trade System
Realization of the National Realization of the National Future e-Trade ModelFuture e-Trade Model
The launch of a 3-year e-Trade
facilitation plan
Realize seamless e-trade service by
connecting effectively with government and related organizations
Demands for innovation on
overall process of trade
Give the opportunity to innovate whole trading process with the new IT
technology
The core task for e-government
blueprint
Issue guidelines on national e-trade future
model
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4. Organization
Vision : e-Trade Korea, Innovation 2007Organization : National e-Trade Facilitation Committee, July 2003e-Trade Process Innovation BPR/ISP : December 2003 ~ June 2004 e-Trade Service (Phase 1) : December 2004 Private e-Trade Facilitation CommitteePrivate e-Trade Facilitation Committee ~ December 2005
National e-Trade Facilitation CommitteeNational e-Trade Facilitation Committee
Chair : Prime MinisterSecretary : Ministry of Commerce, Industry and Energy
PlatformW/G
FinanceW/G
Logistics/Customs
W/G
LegalW/G
MarketingW/G
GlobalW/G
Administrative CommitteeAdministrative Committee
Chair : Vice Minister of MOCIE
PublicPublic PrivatePrivate
e-Trade Facilitation Center(KITA)
Chair : Ex-minister of MOST
Private e-Trade Facilitation CommitteePrivate e-Trade Facilitation Committee
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5. Goal & Strategy
Process Innovation Information Strategic Planning
Legal Structure Global Network
Current Process Analysis & To-be Process Modeling - Marketing - Financial Settlement - License/Certificate - Insurance - Logistics - Trade Declaration
e-Trade Platform Design Standard Integration & Interface Action Plan (2004~2007) e-Trade Facilitation Center : PMO
Legal System on e-Trade Institutional Model Incentive & Community Supporting System Bilateral/Multilateral Agreement on International Collaboration
International Collaboration Mutual Recognition on Global e-Trade APEC, WCO, UN/CEFACT, PAA, EU IST, ASEM, Asia PKI
Internet Based Internet Based National e-Trade National e-Trade
InfrastructureInfrastructure
1111 Seamless Seamless e-Trade e-Trade ServiceService
2222International International
Collaboration for Collaboration for Cross Border Cross Border
Paperless TradingPaperless Trading
3333
Acceleration Acceleration of e-Trade of e-Trade
CommunityCommunity
4444
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6. To-be Model of e-Trade Service (1/2)
Trade Automation Trade Automation (Trade Network)(Trade Network)
AS-ISAS-IS
① 1:1 Networking by Wholly Responsible Company, Breaking Online Process Flow
② Submission of Same Document Repeatedly to Several Parties
③ Exchange of Online Document between Trading Partners, but Submission of Offline Paper Document to Third Party
...
①
②
③
②
2nd WhollyResponsible
Company
2nd WhollyResponsible
Company
KTNETKTNET
CustomsService
TO-BETO-BE
① Seamless e-Trade Service on Single-Window ② One Submission, No Multiple Submission for Same Online Document and provide diverse customs service
(EDI, Web) ③ Guarantee of Online Document Originality Exchanged on Central e-Trade Repository under the law
④ Global Networking on National e-Trade Infrastructure
②
④
Global e-TradeGlobal e-Trade(e-Trade Platform)(e-Trade Platform)
e-Trade Infrastructuree-Trade Infrastructure
③
e-Trade ServiceMarketing
Financial Settlement
License/Certificate
Logistics
Declaration
Messaging Hub
e-StandardRegistry
e-DocRepository
License/CertificateAuthority
Trading Company
Trading Company
Bank
Bank
Trading Company
Trading Company
③
License/CertificateAuthority
CustomsService
Bank
LogisticsCompany
GlobalNetwork
e-Trade Platform
①
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e-Trade Platform
eMarketPlaceeMarketPlace
Credit Credit Evaluation Evaluation CompanyCompany
Marketing
BankBank
Credit Credit CardCard KFTC
Insurance Insurance CompanyCompany
CustomsService
National Logistics Single Window
DocumentStandard
Trading Company(Including SME)
e-TradeSingle Window
Global e-Trade Hub
Global Networking
CertifiedCertificateAuthority
FinancialSettlement
License/CertificateInsurance
Insurance Insurance CompanyCompany
StandardizationAgency
7. To-be Model of e-Trade Service (2/2)
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8. Roadmap of 3-year innovating plan
Phase2(’06)
• Upgrade Core Infra fulfilling Seamless e-Trade Service Implementation
License/Certificate & Marketing support system
• Interface with Related Parties
Phase1(‘04-’05)
• Building Core Infra of e-Trade Platform
• Standardizing documents e-Trade document circulation system
ebXML based document standardization
• Reform related Laws and Systems
• Upgrade User’s e-Trade System Environment
e-Trade solution for SME
• Establish Global Network
Phase3(’07)
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9. e-Trade Service (Phase 1) – e-L/C System (for Exporter)
L/C by EDI L/C by EDI
Goal : Advise L/C by EDI
Process : Advise L/C online (EDI) (75,000 by EDI out of 600,000 SWIFT transaction) Print out Advised L/C on Beneficiary side Presentation of Printed Paper L/C for Negotiation Endorse the Balance on Nego Circulate Endorsed Paper L/C
Goal : No more Paper L/C Presentation
Support : e-L/C Life Cycle Management e-L/C Negotiation History Management e-L/C Balance Management
Advise, Amend
Transfer
Nego
e-L/C
Exporter
2nd Beneficiary
Opening Bank
Negotiation Bank
Advising Bank
e-L/C Consolidation & Circulation System
e-L/C Consolidation & Circulation System
AS-ISAS-IS TO-BETO-BE
KTNETMessaging Hub
KTNETMessaging Hub
Exporter
L/C EDI
Print Out
Opening Bank
1st Negotiation Bank2nd Negotiation Bank
Advising Bank
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10. e-Trade Service (Phase 1) – Conceptual Model
e-L/C Consolidation & Circulation System
Trading Company
MessagingMessagingHubHub
e-Recordse-RecordsRepositoryRepository
(Pilot)(Pilot)
ServiceServicePortalPortal
ServiceServicePortalPortal
WebWebServices Services
WebWebServices Services
BalanceManagement
CirculationManagement
KFTC
Advising Bank
e-RecordsCirculation
e-L/C(Advise, Amend, Transfer, Nego)
ebXML on VPN
Red : New System by June 2005Red : New System by June 2005
Blue : Existing SystemBlue : Existing System
L/C Opening Bank
Negotiating Bank
The world’s first The world’s first e-L/C systeme-L/C system
- Prevention of Re-key - Certification of Contents - Keeping Transaction history
PurposePurposeSystemsSystemsRepository e-L/C system
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11. Lessons Learned
Strong leadership is a critical factor in the successful implementation of paperless trading. Close inter-ministry cooperation among regulatory parties is necessary.
Modernization of customs procedure, system is most important step
To hear voices from business community is important because paperless trading is not only technical but also cultural issue to business community.
It is essential that support from international organizations related to e-trade standard/ technology and developed countries should be provided to developing countries for realizing global paperless trading
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Participate in paperless trade activities such as APEC, ASEM, WTO, and PAA etc.
- Korea successfully held the 1st APEC PPP(Public-Private Partnership) Dialogue under ECSG meeting in SOM I, February 2005
- Korea has been worked closely with PAA (Pan Asia eCommerce Alliance) member countries to make e-Trade networks in Asia
Korea has experience in building Paperless Trade System since 1991
We would like to share Korea’s 14-year-experience with other countries
12. Future work : international Cooperation
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Dr. Yoon-Say Jeong Dr. Yoon-Say Jeong Secretary General Secretary General
e-Trade Facilitation Centere-Trade Facilitation Center
Contact Information
Email : [email protected] Phone : 82-2-6000-5433 Fax : 82-2-6000-2307
Thank you