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 Impleme ntation 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)
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E-Trade (Paperless) Korea, Innovation 2007 The Present and Future of Korea’s e-Trade (Paperless Trading) Capacity Building Workshop on Trade Facilitation.
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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.
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
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
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