Sangwon Lim

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e-Business Standardization in Korea - Focus on
Message -
Aug. 30, 2007 5th Finland-Korea ICT Workshop

• Sangwon Lim
• Head of International Relations Unit
• Korea Institute for Electronic Commerce

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Korea Institute for Electronic Commerce
A Public organization, established pursuant to
the Framework Act on Electronic Commerce, with
delegated mandate to promote electronic commerce
In Korea
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Contents
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Foundation for Standardization in Korea KEC
?
Future Directions for Cross Border Trade
?
Conclusion
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Foundation for Standardization in Korea KEC
?
Future Directions for Cross Border Trade
?
Conclusion
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Importance of Standards
Common Standard
No Common Standard
Conversion cost
Conversion cost
of Trading Partners
of Trading Partners
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Foundation for Standardization KEC
KEC (Korea E-document standardization Committee)
? Legally empowered committee for the
standardization of electronic messages
(Article 24 of the Framework Act on Electronic
Commerce)
? Major duties of KEC - Setting directions
plans for the standardization of e-Buisness
contents (messages, BPs, codes, etc.) and
relevant application technologies -
Standardization (approval, revision
abolishment) of e-Business contents -
Promotion and facilitation of use of e-Business
contents standard - International cooperation
for the standardization of e-Business
contents - Other measures deemed necessary by
the Committee
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KEC Structure
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Standardization Process in KEC
6. Publish as national standards
KEC
Automation
5. Submit for approval
Utilize
TAG
QOD
4. Return for revision with comments
3. Submit the draft for audit review
iterative
eDocs
SGs
2. Submit the draft
Utilize
1. Download guideline, library, etc. to develop
standard messages
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Industries/Sectors
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Mapping of KEC Standardization to UN/CEFACT
UN/CEFACT
KEC
UN/CEFACT Registry
Not implemented
Registry Mechanism
To be federated
EDI Messages
KEDIFACT
CCTS
Korea E-Document Development Guideline
XML Message Production
UN XML NDR
Korea CC Library
UN CC Library
Library Maintenance
Business Modeling
BRS, RSM
Not in place
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Examples of KEC Standardization in Trade
KEC
TAG
SGs
60 Customs-related XML messages (completed)
84 trade-related XML messages (in process)
UNI-PASS
Customs Single Window
Trade Single Window
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KEC Standard Messages
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?
Foundation for Standardization in Korea KEC
?
Future Directions to Facilitate Cross Border Trade
?
Conclusion
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Buy
Pay
Ship
Prepare for export
Import
Prepare for import
Transport
Export

• Commercial
• Procedures
• Establish sales
• contract
• Order goods
• Advise on delivery
• Request payment

• Transport
• Procedures
• Establish transport
• contract
• Collect, transport
• and deliver goods
• Provide waybills,
• Goods receipts, etc.

• Financial
• Procedures
• Provide credit
• rating
• Insurance
• Execute payment
• Issue statements

• Regulatory
• Procedures
• Obtain im/export
• licenses etc.
• Provide Customs
• Declarations
• Provide cargo
• Declarations
• Apply security
• measures
• Clear goods

International Trade Reference Model
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1. Re-orientation of KEC Standardization to
Facilitate Cross-Border Transaction
UN/CEFACT
KEC
UN/CEFACT Technical/Business Standards
KEC Directory (Annual)
BRS NDR TS CC-related TS UMM
Normative UN Business and Technical
Specifications UN CC Library UNEDIFACT
Directory Other Reference Documents Newly
Approved National Standard Messages
UN/CEFACT Directories (Bi-Annual)
CC Library UNEDIFACT Directory XML Schema
Directory
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2. Implementation of UNeDocs (United Nations
electronic Trade Documents)
Customs OGAs
Insurance
Materials Management
Transport
Trade
Based on
UNeDocs ABIE Library
UN/CEFACT CC Library
Invoice
Initial Target Document
UNeDocsKr
General Declaration
UNeDocs SG
Developed by
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3. Future KEC Standardization Approach for
Cross-Border Trade Messages
Domestic Standards
Global Standards
Implement
KEC
WCO CDM
Produces Maintains
Other Trade Messages
UNeDocs Kr
IMO Recs.
Others
Overseas/Regional/Global Trade Market
Domestic Trade Market
Uses
Service Providers
Overseas Service Providers
Traders
Overseas Traders
Interoperate
National Single Window
Overseas Single Window
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?
Foundation for Standardization in Korea KEC
?
Future Directions for Cross Border Trade
?
Conclusion
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Koreas Readiness Status in Cross Border Trade
Cross Border Reference Data Model
Cross Border Data Exchange
Single Window
Rec 33,34,35
National Data Harmonization
UNTDED, Core Component Library, UN LOCODE and
code lists, UNeDocs, Rec 34
Document Simplification and Standardization
UN Layout Key, UNTDED, TF Toolkit and Forms
Repository
Process Analysis and Simplification
Business/Political Process Collaboration Between
Trader and Government (UN/CEFACT Rec 4, Rec 18),
UN/CEFACT International Supply Chain Reference
model, Unified Modeling Methodology, Global
Facilitation Partnership for Trade and Transport
Audit Methodology
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Conclusion
Legally mandated national standard body for
harmonizing electronic messages
Need to align domestic standards with
international standards in global trade
environment
Measure to directly utilize global technical
standards without customization
Plan to implement UNeDocs to facilitate
cross-border trade and Single Window
interoperability
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Thank you
Sangwon Lim Head of International Relations
Unit Korea Institute for Electronic Commerce Tel
82-2-528-5020 Fax [phone] email
swlim_at_kiec.or.kr