EXPO

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E-Commerce, The Case of Korea Post (8 June, 2007)
Kyung-won JUNG President of Korea Post
KOREA POST
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Contents
I. Postal Business in Korea and Response to
Changes in Business Environment
II. The Case of Korea Post in E-Commerce
III. Major Achievements
IV. The Future of Korea Post
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I. Postal Business in Korea and Response to
Changes in Business Environment
1. Korea Post at a Glance in 2006
(Unit Billion USD)
195.2
Postal Outlets 849
Full time staff 36,400
General Offices 1,966
Total
Special Offices 768
Part timers 6,600
Postal Banking Service
Postal Service
90.6
104.6
195.2
0
Total Post Offices 3,583
Employees 43,000 (Postmen 16,000)
(Unit Million USD)
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I. Postal Business in Korea and Response to
Changes in Business Environment
2. Changes in Postal Business Environment

• Changes in main consumers
• Diversification of service channels
• Necessity of quick response to customer needs

Diversified and advanced customer needs

• Decreased monopoly on letters
• Expanded strategic alliance
• between Posts and non-Posts
• Trend of low interest rates
• in financial market

• Increase in alternative
• communication tools
• Rapid growth of electronic
• commerce
• Increased use of electronic
• banking

Globalization Market Liberalization
Spread of the Internet
Demand alternatives in order to
Enhance competitiveness
Competition with Private sector

• Rapid growth of door-to-door delivery market
• Increase in demands for express delivery service
• Expansion and diversification of financial
  institutions

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I. Postal Business in Korea and Response to
Changes in Business Environment
3. Response by Korea Post

• Process innovation through informatization using
  IT in the face of
• changes in business environment

PostNet Web-based postal logistics system
Process Innovation
Information Technology
ePOST Internet Post Office
EVERRICH Electronic Financial System
Business Innovation
Stamp DB Portal
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I. Postal Business in Korea and Response to
Changes in Business Environment
4. Innovation in Operational Process

• Development Operation of Korea Post Logistics
  System (PostNet)

• Informatization of end-to-end mail handling
  process
• Web based postal logistics system

Counter Reception Door-to-door pick-up Sales
(Shopping)
Transportation Management
Delivery Works
Mail Center Operation
Management of Delivery Resources
Track Trace Information Management
Track Trace (Post Office,
ePOST, Call Center)
SMS Delivery Information
Transmission
Information to from UPU,
Airlines etc.
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II. E-Commerce, Case of Korea Post
1. Deployment and Operation of Internet Post
Office (ePOST.go.kr)

• Shopping Mall to enable producers to sell local
  specialties to consumers
• Open market to guarantee a safe online shopping
  between users
• Supporting online postal service Parcel and
  EMS pick-up request,
• congratulations condolences cards reception,
  tracking inquiries etc.

• Effect of Deployment

• Providing Internet Users (34 million) with postal
  services environment

Expanded Customer Channels

• Boosting image of Korea Post as e-biz enterprise
• Contributing to national economy by promoting
  regional economic development

Improved Image

• Achieving competitive advantage in parcel and
  express services through reservations and
  internet tracking service
• Handling 40 million parcels and EMS orders, and
  processing 250 million tracking inquiries in 2006

Enhanced Strategic Products

• Online postal service 3.0 Million USD
• Shopping Mall 54.1 Million USD

Increased Revenue
As of Dec 2006
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II. E-Commerce, Case of Korea Post
1. Deployment and Operation of Internet Post
Office(ePOST.go.kr)
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II. E-Commerce, Case of Korea Post
2. Deployment and Operation of Electronic Banking
and Life Insurances

• Financial services through various channels
  CD/ATM, Telephone, Internet,
• Mobile Phone, and TV
• Electronic banking transactions (9.8 m
  subscribers) account for 66.7 of all
• postal financial transactions. (As of Dec,
  2006)

• Effect of Deployment

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II. E-Commerce, Case of Korea Post
3. Deployment and Operation of Stamps DB and
Portal
Providing one-stop philatelic services
information on Korean stamp, direct sale of
stamps, stamp shop and web-zine

• Effect of Deployment

Customer Oriented Portal

• Providing various philatelic information
• to the people

• Providing search/change functions for registered
  data
• Collecting information on issuing stamps,
  selling
• commemorative stamps and customer management
• statistics

Enforcement of knowledge management

• Operation of online stamp shop
• E-book service provided by Korea Stamp
• Review

Philatelic Promotion Overseas Sales
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II. E-Commerce, Case of Korea Post
3. Deployment and Operation of Stamps DB and
Portal
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III. Major Achievements (A)
Securing competitive advantage in strategic
products (Parcel EMS)
(Unit Million USD)
442 (21.1)
384 (20.1)
332 (19.2)
288 (17.1)
Revenue from Strategic products (Ratio to total
revenue)
291
255 (16.26)
Door-to-door Parcel
238
196 (14.4)
200
143 (12.0)
EMS
168
151
148
146
108
132
120
107
72
88
71
2000
2002
2004
2003
2001
2005
2006
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III. Major Achievements (B)

• Ranked 1st for eight years in a row in the public
  service sector of KCSI (Korean Customer
  Satisfaction Index) survey (99-06)
• Ranked 1st for four years in a row in the field
  of door-to-door parcel
• delivery service (03-06)
• Won the 1st prize for the 6-sigma management
  Awards in Korea(06)
• Received prizes at 2006 World mail Awards
  PostNet (Technology), ePOST(e-Commerce)
• Supporting postal IT companies to enter foreign
  markets Increase of benchmark to Korea Post IT
  from foreign Posts

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IV. The Future of Korea Post
1. u-POST
Intelligence
Advancement

• Realization of
• RFID/Mobile
• based ubiquitous
• business
• environment
• Vehicle/parcel
• control (TMS)
• Enhancement of
• ePOST system

Settlement

• Network Improvement
• Development of basis for 3PL
• ePOST system up-grade

Stability

• 1st phase in postal information Data Warehousing
• Strategic CRM
• Warehouse
• Management System

• Continuous improvement of business process
• Strengthen related systems such as ERP

• RFID Pilot Test (5 mail centers, Dec. 2006)

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IV. The Future of Korea Post
2. One of the Worlds Top Posts Korea Post
Advanced Postal Enterprise Beloved and Believed
by Customers

Innovating Process
Securing Revenue Base
Enhancing Internal Capabilities
Enhancing Customer Value

• Improving mail quality
• Diversifying postal channel
• Enforcing u-Banking

• Operating result-oriented
• organization personnel
• Creating Fair competition in
• postal business
• Strengthening cooperation
• among global postal services

• Expanding strategic
• business market share
• Developing customer
• oriented financial products
• Operating postal financial
• fund efficiently

• Enhancing e-biz
• capabilities
• Strengthening IT-based
• operation
• Continuing 6-sigma
• management innovation

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Thanks for your attention!
Kyung-Won JUNG President of Korea Post