[ TRADE & PRODUCTS > Partners In The Making ]

elping to make use of public transportation even more simple and convenient is C&C Enterprise¡¯s radio frequency (RF) smart card. Since it was founded in 1994 the firm has become a leader in the electronic money industry through its superior ID recognition and smart-card based technologies.

  Installing Automated Fare Collection Systems
  How does C&C¡¯s smart card solution make life easier for the commuting public? In short, by coupling the Automated Fare Collection (AFC) system along with the radio frequency (RF) credit card to produce the first and only system in the world that enables commuters to defer payment of their public transit fares. Furthermore, the AFC system eliminates the need for commuters to reach for their wallets for paper bills or for coins to pay fares. All they need to do is simply touch a sensor at a subway barrier or as they board a bus with the card (or even with the card inside a wallet or purse) for instant payment approval, reducing long lines and thus significantly saving time.

  In February 1999, C&C completed installation of the AFC system at 296 stations in the Seoul Metropolitan Subway system. One year later, C&C developed an inter-operating system with the public bus network and implemented discount programs to allow discounted transfers between trains and buses.

  C&C signed RF payment transit card contracts with seven major credit card companies and banks in November 2001, and distributed 20 million cards for use by commuters in the Seoul Metropolitan Area alone. The concept proved enormously successful as demonstrated by the whopping 4.5 million transactions per day made using RF prepaid/debit/credit transit card in the Seoul Metropolitan Area. It is the goal of C&C Enterprise to supply its integrated system to the transportation networks in the world¡¯s major cities. In May 2003, C&C contracted to provide the AFC system for the new light rail transit construction project in Tianjin, China. The company is also a significant actor in other mass-transit projects driven by other Chinese cities in preparation for the 2008 Olympics.

  A Player in the Intelligent Transport System Project
  C&C Enterprise¡¯s technology reaches far beyond bus and subway train payments as evidenced by its participation in the Korean government¡¯s Intelligent Transport System (ITS) project. The aim of the project is to apply leading technologies to the existing national transportation system in order to create a more efficient transportation environment. Two types of technology represent C&C¡¯s participation in the ITS project: the Electronic Toll Collection System (ETCS) and Electronic Toll Payment System (ETPS) technologies.

  The chief merit of the Electronic Toll Collection System (ETCS) is that it allows vehicles to drive through a tollgate without stopping to pay the toll. As a vehicle approaches a tollgate, a beacon (in fact, a data collection terminal) installed on the gantry collects vehicle information from an RF card inside the vehicle via wireless communication at frequencies of 860 MHz to 930 MHz. The ETCS automatically processes the information embedded in the card and conducts toll payment transaction as the vehicle passes through the tollgate.

  A major project C&C Enterprise undertook in 2002 was an upgrade of the automated toll collection system on the highway between Gwacheon and Uiwang. The success of this project will eventually lead to the application of ETCS in more major highway tollgates. ETCS went on to demonstrate superior performance in a comparative test with competing systems organized by the Korea Transport Institute (KOTI).

  The Electronic Toll Payment System (ETPS) is a ¡°touch-and-go¡± system utilizing RF smart card technology and operating at a frequency of 13.56 MHz. It works like this: the driver places his or her RF smart card near the terminal. The terminal communicates with the card to collect necessary data and to automatically process toll payment.
  The advantages of ETPS are that it supports various payment methods, provides prompt payment, improves the level of convenience, has a semi-permanent life span, and is easily upgradeable.

  In February 2003, the Korea Highway Authority (KLA) selected C&C Enterprise as its ETPS pilot operator. Over the last few months, C&C has installed electronic toll payment systems in 59 portal lanes at open tollgates in Pangyo, Cheonggye, and Seongnam. The KLA-sponsored project will be expanded to 1,592 portal lanes at 216 tollgates nationwide. The ETPS is expected to effect an 18-trillion won ($15 billion) annual cost reduction by reducing logistical expenses, highway operation and maintenance costs, air pollution, energy consumption and accident rates.

  Despite the superb level of convenience they offer, RF smart cards are still not widely in use around the globe. Commuters still buy paper tickets whenever they board buses or subway trains in the leading cities of the world. Drivers still must stop their cars at most tollgates and scramble for cash, wasting their time and that of others as well as causing unnecessary energy consumption and air pollution. Globally, C&C Enterprise views these myriad situations as a gigantic opportunity - an opportunity to gain leadership of the smart card industry worldwide.

  Just how important is the research and development effort of C&C?
  I believe technology is the lifeblood of our company. Moreover, I believe that the level of technology is what differentiates us from other companies in the same field. The fact that 70 percent of our employees are researchers and 30 percent of total revenue is reinvested into R&D highlights our effort to stay ahead in the technological race.

  Many of your investors attribute C&C¡¯s leadership of the electronic smart card industry to your management style. What is your take on this?
  Well, I¡¯m an advocate of ¡°transparent¡± management. For example, I always try to disclose all decisions we make as well as the financial status of the firm to employees and investors alike. I always keep the door to my office open so that employees can come in and talk freely at any time.
  General Electric¡¯s Jack Welch once said, ¡°Lead or else you will be dominated,¡± and this quote has become the guiding principle of my life. I often tell our employees to play the leading role and not be an observer in the workplace and elsewhere.

  What is the ultimate goal for C&C?
  I like to dream of a ¡°cardtopia,¡± where a single smart card can take care of every payment, anywhere. For instance, imagine buying an ice cream in Rome, paying for a ticket to a baseball game in New York and boarding a subway train in Moscow with just a single electronic smart card. Wouldn¡¯t that be amazing?
  In the near future, an individual¡¯s social security number, electronic money, fingerprints, iris code and credit rating will be stored in a single electronic card, promoting convenience for consumers everywhere.