Seoul Digital Media City Master plan

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1. Major Tasks of Multi-Support Function

1. 1 The Need for Multi-Support Function

!" In order to reaIize the vision and concept oI DMC, it is imperative to estabIish a variety oI
Iunctions, such as internationaI cooperation Iunctions, research and deveIopment Iunction,
educationaI Iunction as weII as supporting corporate tasks, to concentrate and deveIop the
inIormation media industry. By cIoseIy Iooking into the cases oI inIormation compIexes oI
advanced countries, we Iound that most oI the Ieading countries suppIy government-Ied one-
stop service to attract the high tech Iirms and, at the same time, to Ioster their domestic industry.
!" The impIications oI the Survey oI Primary Demand in Domestic Industries and the consortium
oI Invitation oI Representative oI Foreign IT Firms based in Korea` are signiIicant. According
to the outcome oI the survey and the consortium, it is necessary to introduce diverse IaciIitating
Iactors, such as the Iunction oI internationaI exchange (hoteI and convention centers), human
resource deveIopment and R&D (educationaI and R&D IaciIities), commerciaI and
entertainment Iunction.

1. 2 Multi-Support Functions in DMC

!" Based on the research resuIts Ior its necessity, the IoIIowing Iunctions have to be deveIoped Ior
muIti-support purposes Ior DMC;
!"EducationaI-industriaI center and cuItivating speciaIists: To support up and running tasks and
research projects though intricateIy organized connections among corporations, universities
and research centers. It aIso generates practicaI outcomes by commerciaIizing newIy
deveIoped products within a short period. To continuousIy cuItivate and suppIy speciaIized
human resources through IT educationaI center is the key to its success.
!"Business Support: Its main purpose is to estabIish one-stop administrative DMC supporting
system so that the current tenants and existing research centers can concentrate on their own
research and other business tasks. The system shouId be abIe to provide the necessary
inIormation in corporate management, IegaI aIIairs, accounting and marketing areas.
!"InternationaI business support: The Iarge-scaIe meeting pIaces oI tenants, such as convention
centers and exhibition haIIs are bare necessities Ior DMC deveIopment. Accommodations
and entertainment centers as weII as extra exhibition haIIs shouId aIso be provided. Those
IV. Developing Strategy for Multi-Support Functions
35
shouId heIp Ioster the research activities and to improve working conditions.
!"CommerciaI and Ieisure/entertainment: DMC shouId provide an ideaI environment Ior
corporations to seII their products and pIaces that residents and commuters can enjoy
shopping within the compIex.

[Figure 13] DMC Multi-Supporting Functions

2. Supplying Cutting Edge Human Resources

2. 1 Major Functions of IT Educational Centers

!" Strategic target industries oI DMC incIude M&E, IT reIated industries and soItware industries.
Those target industries wouId create constant demand Ior IT speciaIists with unending re-
education, a success Iactor in the continuaI deveIopment oI DMC.
!" IT educationaI center, with its own unique curricuIum created internaIIy, wouId meet the
demands oI tenant corporations in supporting new empIoyment in IT sectors. Two subsidiary
services are essentiaI to achieving these goaIs: E-Iearning service through the Internet and the
consuIting service in estabIishing Ieading educationaI system.

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Seoul Digital Media City Master plan
36
2. 2 Current Supply Condition of IT Specialists in Korea
!" IT speciaIists in Korea number 560,000 as oI 1999 and it is expected to rise up to 750,000 in
2005. The demand oI IT proIessionaIs is drasticaIIy increasing. However, approximateIy
140,000 peopIe wiII be needed in 2005 and thus, back up pIans Ior this shortage is imperative.
!" Iow and middIe IeveI empIoyees can be suppIied within a short period oI time through the
education in private institutions. In contrast, in the case oI highIy educated peopIe, such as
masters and doctors in IT IieId, considering the time and eIIort needed to cuItivate them and due
to the Iack oI proper educationaI system within Korea, its suppIy poses a serious probIem. With
other numerous supporting mechanisms incIuding industriaI-educationaI cooperation,
customer-oriented human resource deveIopment aid is necessary.

2. 3 Analysis of IT Education Market

!" WorIdwide IT education market is expected to grow 12 annuaIIy over the next Iive years. The
market is estimated to reach US$ 19.4 biIIion by 1999 and US$ 34.1 biIIion by 2004.
!" IT education market in Korea has been growing 30 per year over the past Iive years. As oI
2004, the size oI the market wiII reach at US$1.5 biIIion. Korea has great potentiaI in this IieId
because oI; (1) Iack oI IT speciaIists, (2) the increasing roIe oI certiIicate market, (3) rising
outsourcing oI re-education, (4) deveIopment oI high-tech industries, and (5) the rising need oI
practicaI training sessions.

2. 4 Management Plans of the IT Educational Center within DMC

2. 4. 1 Strategic Positioning of the IT Educational Center

!" The IT educationaI center is expected to perIorm muIti-supporting Iunctions: Iirst to guarantee
DMC`s Iong-term success and second, to nurture a IavorabIe environment Ior strategic target
industries within DMC, such as M&E industry, IT reIated industries, and soItware industries.
IV. Developing Strategy for Multi-Support Functions
37
[Figure 14] Positioning of IT Education Center

2. 4. 2 Management Strategies for the IT Educational Center Development

!" Objective
!"Targeting tenant companies (B2B) and assisting with new IT human resources (B2C),
DMC IT educationaI center wiII pIay its roIe with its internationaI IeveI curricuIum and
cutting edge onIine-oIIIine integrated educationaI service.
!"Centering e-business-based technoIogy and appIication oI muItimedia, the IT educationaI
center shouId deveIop its own educationaI contents in order to provide e-Iearning service,
based on ASP modeI. The IT educationaI center is aIso expected to suppIy the best
proIessionaI IT human resource network in Korea.
!" Services oIIered
!"DMC IT educationaI center shouId speciaIize itseII in the IoIIowing areas oI business in
connection to the DMC target industries: soItware oI system inIrastructure, muItimedia
appIication soItware, Internet IaciIities and muItimedia appIications. E-Iearning service and
education to issue tech reIated certiIicates wouId perIorm its centraI roIe.
!"To have abundant pooI oI contents, DMC IT educationaI center wiII go into strategic
aIIiances with notabIe Ioreign IT education centers and produce EngIish speaking IT
speciaIists.
!" Main body oI Management
!"Since DMC is the Ieading project oI SeouI City, the SeouI MetropoIitan Government, as the

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Seoul Digital Media City Master plan
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main body oI managing DMC IT educationaI center is expected to perIorm the IoIIowing
roIes. First, under the cooperation with private IT educationaI institutions both domestic and
internationaI arenas, the inherent risks shouId be oIIset. Second, to yieId high returns, the
cooperation in the areas oI educationaI contents and EngIish based IT human resource
deveIopment is needed. BuiIding networks with internationaIIy renowned educationaI
centers is aIso essentiaI.

3. R&D and Academia-Industry Cooperation

3. 1 Strategies
!" The main Iesson Irom Cambridge Science Park in the United Kingdom is that in order Ior the
muIti-compIex to be successIuI, the synergy eIIects stemmed Irom the cooperation among
corporations, universities and research institutes are essentiaI.
!" However, due to its Iimited area, it is diIIicuIt Ior Iarge scaIe R&D center to Iocate in DMC.
Furthermore the characteristics oI main businesses, which are media industry such as
broadcasting, game, movie and music and reIated soItware, require one space Ior R&D and
production.
!" ThereIore, the R&D Iunction in DMC has to Iocus on estabIishment oI Academia-Industry
Cooperation Center as weII as a system that connects industry, university and institutes. SmaII
and medium sized R&D IaciIities wiII be re-aIIocated as additionaI to main Center. .

3. 2 Invitation of R&D Centers and Institutes

!" In generaI, R&D centers are incorporated within each company, particuIarIy in the case oI
DMC strategic industries such as M&E and reIated soItware industries. Sharing campus with
smaII sized speciaIized university or concentration oI research institutes, such as research
institutes oI internationaI anchor Iirms and InIormation and Communications University (ICU)
in Korea, might be another practicaI idea.
!" In order to attract such prestigious R&D centers, DMC shouId oIIer tenants the best conditions
that incIude (1) providing programs Ior educationaI-industriaI cooperation and Ior human
resources deveIopment, (2) sharing main experiment IaciIities and equipments to strengthen the
network between education and industry, and (3) the seIection oI the prime exampIe as an
object oI government Iunding.

IV. Developing Strategy for Multi-Support Functions

39
[Table 8] Institutes to Attract
Division Institutes to attract
International
Anchor
Companies
#"Sony Computer Science Iaboratories, BeII Iaboratories, IBM AImaden Research Center,
MicrosoIt Research Iaboratories, etc.
Education
Institute
#"Korea InIormation Communication Graduated schooI, Kyonggi Univ. InIormation
Center, Korea Univ. InIormation Education Center, Sokang Univ. InIormation &
Communication Institute, Yonsei Univ. Cyber Education Center, Ewha woman`s Univ.
InIormation Center, Hongik Univ. etc.
Research
Institute &
Association
#"SeouI Univ. Institute oI New Media and Communications, Hanyang Univ. Institute oI
Education TechnoIogy, EIectronics and TeIecommunications Research Institute, Korea
EIectrotechnoIogy research institute, Korea TeIecom MuItimedia Research institute, Korea
Game Promotion Center, Korea Entertainment System Industry Association, etc.

3. 3 Management Plans for DMC Academia-Industry Cooperation Center

3. 3. 1 Development and Management of the Center

!" DMC academia-industry cooperation center wiII be non-proIit. As one oI DMC`s Ieading
projects, it aIso entaiIs inherent risks in its initiaI deveIopment. ThereIore, it wouId be desirabIe
Ior the SeouI MetropoIitan Government to take the Iead in the initiaI organizations and its
management, during which the graduaI privatization oI management wiII be considered aIter its
take-oII stage.

3. 3. 2 Formation of the Center

!" The academia-industry cooperation center wiII be composed oI R&D center, tech-supporting
center, start-up supporting center and network center. It wiII aIso attract institutes speciaIized in
technoIogy, Iinance and marketing speciaIists and business incubators.

[Table 9] Formation and Function of the Academia-Industry Cooperation Center

R&D Center
Tech-supporting
Center
Start-up
Supporting
Center
Network Center
#"HR Services
#"Research Projects
#"Research Space
#"Co-use oI Research
Fixtures
#"EducationaI ConsuIting
#"Seminars and
ConIerences
#"Patent InIo.
#"Tech InIo.
#"New Tech InIo
#"PooI oI
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#"TBI
#"TI
#"Management
support
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#"E-Commerce
#"Tech DB and Networking
#"Venture CapitaI and Other
FinanciaIs
Seoul Digital Media City Master plan
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3. 3. 3 Main Functions of the Center
!" The centraI purpose oI DMC Academia-Industry Cooperation Center is to estabIish a Iink
among corporate IieId, academic arena and research institutes, to Ioster M&E and reIated IT
sectors. Based on the weII-connected Iinks, one-stop, one-rooI service wiII be possibIe. The
main Iunctions oI DMC Academia-Industry Cooperation Center incIude;
!"To buiId the basic inIrastructure oI DMC Academia-Industry Cooperation Center, i.e.,
Iinking and networking the reIated institutions.
!"To estabIish the comprehensive supporting system within the DMC Academia-Industry
Cooperation Center, based on the IeveI oI technoIogicaI deveIopment, in order to achieve the
IoIIowing goaIs; administrative supports, technoIogicaI guidance, recommendation oI IT
human resources, provision oI necessary inIormation, technoIogy transIers, discovery oI
markets Ior saIes, money suppIy, management guidance and IastIy, provision oI incubation
centers.
!"To provide the common research center Ior reIated corporations, universities and research
institutes shouId support the concerted eIIorts to manage research IaciIities.

3. 3. 4 Functions and Facilities of the Center

!" The Center wiII be operated by human resources and technoIogy supports Irom companies,
universities and research institutes.
!" DMC IT education center wiII provide IT speciaIists and in turn the Center wiII transIer its
technoIogy Ior education programs.
!" The Center wiII provide technoIogy to the companies Ior commerciaIization oI products as weII
as venture start-ups.
!" The Center has to be Iocated in vicinity oI R&D research compIex and IT education center Ior
eIIicient knowIedge exchange.

IV. Developing Strategy for Multi-Support Functions

41
[Figure 15] Academia-Industry Cooperation Center Linking System

4. Support Facilities for International Business

4. 1 Convention Centers and Exhibition Halls

4. 1. 1 Directions for DMC Convention Centers

!" InternationaI conIerences and exhibition IaciIities within DMC do not seem necessary,
considering the competitive environment as weII as suppIy-demand side oI the Convention
Center. However, to attract both domestic and internationaI Iirms and to activate the earIy phase
oI DMC estabIishment, conventionaI center shouId be poIicy-wise considered.

4. 1. 2 Size of DMC and Plans for Installing Internal Facilities

!" EssentiaI IaciIities oI the Convention Center
!"Convention centers are typicaIIy Iurnished with: (1) main IaciIities, comprising the Main
Iobby, ConIerence Room, Exhibition HaII and Event HaII etc. (2) aiding IaciIities such as
superintendence, pIace Ior eating and drinking, pubIic service and (3) suppIementary
IaciIities, incIuding accommodations, shopping, entertainment and pIace Ior business
operation.
!" Estimation oI the appropriate size oI DMC
!"The bigger the size oI the Convention Center, the more competitive DMC wiII become. The

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Seoul Digital Media City Master plan
42
Iarge size aIso has beneIits considering the Iong-term competitiveness and DMC`s growth
rate in the IoreseeabIe Iuture. However, due to the Iimit and diIIicuIty in procuring
investment Iunds, the advisabIe and reaIistic totaI size wouId be with 2,500~3,500 seats. The
suggested size is aIso eIIectiveIy manageabIe.

4. 1. 3 Direction of Management
!" Intricate Iinkage and cIoseIy working oI success Iactors are essentiaI, which incIude IaciIities Ior
internationaI meeting, cohort oI proIessionaI human resources, management oI convention
center and governmentaI supporting-poIicies.
!" As it takes a Iarge initiaI Iunding Ior the estabIishment oI the convention center, stabIe as weII as
Iegion Iunding sources are cruciaI. ChanneI the nationaI and IocaI Iunding Irom the Ministry oI
Commerce and Industry (MOCIE) into buiIding the convention center is the Iirst step to take.
Aside Irom the outside Iunding, other revenue-generating business wiII expedite the invitation
oI private Iunds.

4. 2 Hotel

4. 2. 1 Analysis of the Demand and Supply of Hotels

!" As a resuIt oI additionaI suppIy oI hoteIs currentIy under construction, the market share wiII be
decreased by 2004. However, iI we take the demand side into consideration, thee market share
is projected to rise up to over 70 by 2005 or 2006. In this regard, stabIe market share oI 76 or
78 is expected aIter 2006.
!" ThereIore, hoteI business is IeasibIe in DMC considering the Iact that there is a demand Ior an
internationaI IeveI hoteI IaciIity in the northwest region oI SeouI.

4. 2. 2 Construction Plans of Hotels within DMC

!" Estimation oI the size oI the hoteI
!"ReguIar customers oI the hoteIs within DMC wiII be those who are reIated to business
aIIairs.
!"Under the assumption that aIorementioned IaciIities perIorm the intended Iunctions,
estimation based on Iive star hoteIs Ior business purposes within SeouI area teIIs us that the
reasonabIe size oI the hoteI is approximateIy that with 600 rooms.

IV. Developing Strategy for Multi-Support Functions

43
!" Decision on hoteI grades
!"II the Convention Center is buiIt within DMC, worId cIass hoteIs that can host internationaI
size conIerences and exhibitions are neccessary.
!"Accommodations to aid business activities are required Ior those who pIan extended stay
within DMC. DMC, thereIore, shouId be equipped at Ieast Iour worId-cIass hoteIs and one
middIe-Iow quaIity hoteI Ior Ionger stays.
!" Structure oI HoteI IaciIities
!"In generaI, demand wiII generaIIy be created Irom business, though part oI it wiII be Irom
tourism. It is aIso notabIe that sporadic demand wiII spring Irom conIerences, seminars and
exhibitions. ThereIore, 600 rooms wiII be cIassiIied into 400 worId-cIass IeveI hoteIs and
one hoteI Ior Ionger period stays with 200 rooms.

4. 2. 3 Direction for Launching the Business

!" UnIess the deveIopment within DMC is sIowed down, the demand Ior hoteIs is expected to
remain stabIe. Funding is possibIe by attracting Ioreign investors or Ioreign deveIopers. During
the process oI deveIoping hoteIs, the SeouI MetropoIitan Government shouId aIIot the
designated Iand.
!" Another aIternative wouId be a comprehensive deaI, or buiIding with convention center and
hoteI together, since convention center has Iow proIitabiIity at the initiaI stage.

4. 3 Urban Entertainment Center

!" Urban Entertainment Center (UEC) is a new-concept shopping center, with shopping,
entertainment and Ieisure IaciIities together within one compIex. UEC, as one oI muIti-
supporting IaciIities, is expected to produce synergy eIIects whiIe absorbing the demand oI the
IocaI markets and generating Iarge proIits.
!" Northwestern SeouI area, where DMC is Iocated, is devoid oI IaciIities Iike UEC. Considering
the Iact that existing UEC-Iike IaciIities are in generaI Iocated near subway stations, where the
young gather, DMC shouId buiId the UEC.

4. 3. 1 Analysis on Demand and Supply of DMC

!" UEC, having IT or M&E reIated products in store, wiII have its own shopping district Ior
generaI eIectronics and warehouse discount stores to be compIemented by Ieisure and
Seoul Digital Media City Master plan
44
entertainment IaciIities. Estimating the size oI UEC based on additionaI suppIies oI Iand and
residents around DMC area, approximateIy 8,000 pyong in area wouId be needed.

4. 3. 2 Direction for Launching the Business

!" ReIIecting both the current and expected Iuture deveIopment status oI DMC, most strategies
shouId highIight the DMC symboIs oI high digitaI technoIogy.
!" The success oI UEC wiII depend criticaIIy on the types oI tenants DMC can attract. The utmost
attention shouId be given to appropriate tenant mix.
!" Creating a speciaIized concept and the mark oI DMC that symboIizes cutting edge technoIogy
is essentiaI. In this Iight, consumer centric IT medium, such as eIectronics and inIormation
technoIogy, wiII create the synergy eIIect Iinking the shopping centers and suppIementary
IaciIities.
!" To distinguish itseII Irom suppIementary IaciIities within WorId Cup Stadium, IoIIowing
IaciIities are needed: (1) proIit generating advertising body Ior corporations Iike Sony PIaza, and
(2) entertainment IaciIities simiIar to Game Works in SeattIe, Joy PoIis in Yokohama and Iego
Iand.

4. 3. 3 Main Body of Management and Investment Plans

!" The timing oI the deveIopment oI UEC and other commerciaI buiIdings shouId be
synchronized with the estabIishment oI major tenant companies and other centraI bodies within
DMC. It shouId be emphasized again that the DMC`s success heaviIy depends on attracting
successIuI tenant Iirms. Prior consuIting with possibIe tenant companies, thereIore, is necessary.
DMC`s main management body shouId examine and survey their preIerences and wiIIingness
to invest. Moreover, it shouId aIso provide incentives as weII as IIexibIe price strategies.
!" The SeouI MetropoIitan Government is advised to activeIy participate in the initiaI marketing
stage oI UEC. It shouId aIso deveIop strategies Ior aIIotting the Iand at an earIy stage. The main
management company shouId be chosen Irom private Iirms.

IV. Developing Strategy for Multi-Support Functions

45
5. International Business Support System

5. 1 Outline of Business Support System

5. 1. 1 The Need for a Business Support System

!" The one-stop service provides both the investors and residents with an overaII business
IaciIitating system. That is why this supporting system contributes to the continuaI growth oI
DMC by inviting more investors and by attracting more prosperous deveIopers. The business
support system, as a centraI strategy oI DMC, aims at minimizing the inIormation cost oI both
internationaI and domestic Iirms. It wiII reduce the totaI investment cost by introducing the
beneIits oI tax reduction.

5. 1. 2 Scope of the Support System

!" In a narrow deIinition, business-support Iunction invoIves (1) the provision oI inIormation on
the generaI investment environment and business process Ior tenant companies, (2) the
introduction oI co-work partners, and (3) oIIiciaI permission and estabIishment oI supporting
Iunctions.
!" In a broadened sense, the scope oI the support system incIudes (1) the execution oI incentive
schemes, (2) the generaI investment supporting service which Ieads speciaIization oI the
experience and inIormation acquired by the process oI investing activities, and (3) integration oI
reIated management bodies

5. 1. 3 Details of the Support System

!" Administrative support within DMC
!"The generaI administrative supports and provision oI soIutions during the estabIishment oI
corporations, Iactories and empIoyment process
!"Issuing visas and acquiring Iands Ior Ioreign empIoyees
!" Post management: continuing supporting service Ior investors domestic and internationaI;
management aIter the investment, providing soIutions Irom diIIicuIties; in particuIar, IegaI and
institutionaI devices Ior Iair and partiaI treatment oI internationaI and domestic Iirms
!"The service shouId be provided not onIy at the initiaI stage oI take-oII period but aIso at
subsequent stages so as to continue to attract additionaI investment and potentiaI investors

Seoul Digital Media City Master plan

46
5. 2 Business Support Function of DMC

5. 2. 1 Business Support Center

!" Business Support Center (BSC), as one-stop service suppIier, wiII heIp corporations during the
initiaI investment stage and uItimateIy post management stage. At the take-oII period, DMC
promoter within the SeouI MetropoIitan Government shouId controI the business support
Iunction. II DMC management Iirm is set up, BSC wiII take over the task oI business support.

5. 2. 2 Organization of the Business Support Center
!" Teams Ior nurturing investment and post management, respectiveIy, wiII be estabIished.
Iinkage and cooperation with outside speciaIist and advisory board is essentiaI as weII.
!"Center Management Team: generaI management oI the center, getting anciIIary heIps Irom
other teams
!"Investment ConsuIting Team: IaciIitating and consuIting the investment process, divided
into domestic and internationaI Iirms
!"InIormation Service Provider Team: coIIecting, providing and anaIyzing investment
inIormation Ior each industry sectors, suppIying advice and suggestions oI IegaI, accounting,
taxation upon requests
!"PubIic ReIations and Marketing Team: deveIoping and executing marketing pIans and
pubIic reIations oI DMC, pubIicizing investment pIans oI DMC, advertising incumbent
tenants
!"Post Management Team: post management Ior existing investors, providing soIutions to
tenant companies, improving the investment conditions

[Figure 16] DMC Business Center Organization Chart
Presoenl Presoenl
Cenler Manaqenenl Tean Cenler Manaqenenl Tean
lnveslnenl Ccnsullnq Tean lnveslnenl Ccnsullnq Tean
ln!crnalcn Servce Tean ln!crnalcn Servce Tean
PR & Markelnq Tean PR & Markelnq Tean
Pcsl Manaqenenl Tean Pcsl Manaqenenl Tean
Aovscry Grcup
Prc!esscnals)
Aovscry Grcup
Prc!esscnals)
Presoenl Presoenl
Cenler Manaqenenl Tean Cenler Manaqenenl Tean
lnveslnenl Ccnsullnq Tean lnveslnenl Ccnsullnq Tean
ln!crnalcn Servce Tean ln!crnalcn Servce Tean
PR & Markelnq Tean PR & Markelnq Tean
Pcsl Manaqenenl Tean Pcsl Manaqenenl Tean
Aovscry Grcup
Prc!esscnals)
Aovscry Grcup
Prc!esscnals)