Conversion to IPv6
The existing IPv4 Internet address system is not at all suitable for new industries employing Internet of Things (IoT) and big data. Besides, only 15 million or so addresses are left in the IPv4 system.
Under the circumstances, the government is in a hurry to convert to IPv6. However, many companies are still rather slow in adopting the new system due to the cost burden. According to the government’s estimate, the address replacement rate is likely to reach 50 percent in the private sector in 2017 and 100 percent three years later.
The Ministry of Science, ICT and Future Planning’s August 13 report reads that a total of 2.1 trillion won (US$2 billion) is required for 369 Internet service providers (ISPs) in Korea – four major ISPs, 115 smaller ISPs, and 250 CSPs – to convert from IPv4 to IPv6. The latter is an expanded version of the former, and 3.4x10^38, or 340 undecillion, addresses can be provided in it. IPV4 is limited to a scant 4,300,000,000 addresses.
The costs are broken down into 192.7 billion won (US$188.5 million) per company for the major ISPs such as KT, SK Telecom, SK Broadband, and LG U+, and an average of 5.1 billion won (US$5 million) for content service providers like Naver and Daum. The government recently decided to extend the tax cut period for IPv6 conversion in order to mitigate even a part of the cost burden.
“Although we have set up some conversion plans, we are not looking to implement them, because we can secure addresses by realigning the previously-allocated IP addresses, and the required costs are too high,” said a local ISP. Korea Internet & Security Agency senior researcher Jung Jae-ho explained, “All of the companies’ common reason is the excessive cost for facility replacement, and the government would be well advised to provide at least some assistance they are in need of.”