May 25, 2001 in Social Responsibility News

SAMSUNG SDS to export US$10million in IC card technology for logistics to Japan

Korean wireless IC card technology penetrates the Japanese logistics industry with large amount of export.

Samsung SDS (CEO Hong-Ki Kim) announced that it has signed an agreement with FEC, a Japanese IT technology company, to sell logistics management IC cards and systems with volume of US$10million per month in the first year.

Samsung said that this follows the export of 200,000 medical IC cards per month to the Japanese city of Kanazawa, and it is the largest single export of domestic IC card technology.

Export of IC card technology will be on annual base from May 2001 to April 2002, and exported technology includes the RF (Radio Frequency) IC chips and the system covering the entire range of logistics management from production of goods, shipment and sales to settlement. Samsung SDS will be responsible for the construction of the logistics system, while Dasung Hightech will assemble the RF IC chips to export to the Japanese logistics industry via FEC, Japan.

The conventional bar code system is able to store only tens of bits of logistics information. On the other hand, the RF IC cards to be exported to the Japanese logistics industry by Samsung SDS can store more than 1,000 bits of information to allow information management and the use of high-level of logistics support system. At the same time, RF IC system prevents errors inherent in the bar code system stemming from incorrectly placed bar codes or contaminated bar code readers.

Furthermore, RF IC card logistics system is more economical compared with bar code system, which requires optical sensors for the reader. As such, the IC card logistics system is expected to become the core infrastructure in the high-tech logistics management system from its previously limited application in systems such as electronic citizenship ID card.

Samsung SDS has gained an opportunity to showcase its IC card technology, where formation of infrastructure is key in the entire operations, in Japan ahead of large scale IC card projects with the announcement of the Laws on the IT Framework earlier this year. Japanese Ministry of Economy, Trade & Industry is pursuing Electronic Citizenship Card Project, while the Ministry of Posts & Telecommunications and the Federation of Bankers Association are in the midst of the electronic cash project.

Following the exports to the Japanese logistics industry through FEC, Samsung SDS plans to continue its marketing efforts to logistics companies in Tokyo and other major cities in Japan and East Asia region. With such strategy, the company expects that export of IC chips and infrastructure systems would surpass US$50million by 2003.

Kwang-Kyun Cho, Executive Director for the Public Sector Unit at Samsung SDS, said, 밫his export, following the export of medical cards, is significant in terms of diversifying the Korean IC card industry's entry into the Japanese market. He added that it is all the more important considering that foreign companies have a sizable share in the domestic market.

Furthermore, he said, "We will develop new markets as there are numerous applications for the IC card technology such as electronic cash, health insurance card, electronic citizenship card, logistics management."

On the other hand, the signing ceremony for the supply contract was held at FEC's headquarter office, and the two sides also confirm cooperative relationship. The ceremony was attended by Kwang-Kyun Cho, Executive Director of Samsung SDS; Ichioka Kunioki, President of FEC; Sang-In Shin, President of Dasung Hightech, a subsidiary of Samsung SDS; and Mayekawa, Managing Director of Kasamatsumeiki, a Japanese logistics company.

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