image from:http://pictures.deadlycomputer.com/d/30819-2/pic_3564.jpg

Yes, I did say it. In Korea, I believe Apple will soar and Google will not.

It isn't about how awesome their products and services are; it isn't about how smart their strategists are; it isn't even about how much cash they can pour into the Korean market. It's about us; the Korean people.

As I mentioned before, as much as the Internet is being used for "informational" purposes in Korea, it isn't really about efficiency and productivity here, which Google has mastered. Rather, when we say information and productivity, we mean more of "how socially compatible are you when you work with others" or even "how keen are you to what everyone else is talking about?" which is where Google might miserably fail, at least in Korea.

To be more precise, I think Google needs to be more "social" even when giving out information, which is what Naver is doing best. This is also why Google finally gave in here by portalizing itself. Information matters--only when it matters to everyone else at the same time. Google is not particularly good at this--at least not yet. The importance of social belonging and interdependence in the meaning of information is one of the major topics I'll be covering throughout 2010, so keep your eyes closely.

Now, why do I think Apple will soar? I think Apple touches upon the emotional side of the Korean consumers. As much as the tech industry is becoming more like the fashion industry, Apple represents the new "social upper class" among the Korean people. Apple is the new Louis Vuitton and the new Chanel. Asian people love luxury brands and Apple is becoming one of them.

Looking at Korea through the angles of companies--Samsung, LG, Google, Apple-- will be a fun way to learn about Korea. I've started developing a strategic framework on how to attack the Korean tech/digital industry and deeply move our minds and hearts.

I want Google to soar here as well; but that might require too much for Google's pride, at least for those in Mountain View.

Just to clarify for the TechnoKimchi readers, I just wanted to tell you that I live in SOUTH Korea, not NORTH, and the news article above indeed is happening in South Korea.

It's going to take a long time to explain the whole situation, but here's the gist of it:
Google told the Korean government "I'm sorry, but I'm bigger than you."

Yeah, the decision by Google came at a crazy cost: Google basically had to shut down its core Youtube services and say goodbye to all the government support it's been enjoying. (Korean government supported Google with over $1 million when Google Korean R&D center was founded and is also bringing quite a bit of cash to Google Korea by using YouTube as one of the government's main marketing channels.) This is a pretty big gamble for Google itself, obviously even more so for Google Korea. I'm sure the Korean government is feeling quite a lot of steam right now.

But you don't mess with Google. You do it, next day it's gonna be all over New York Times, CNN, BBC, or what not. Oh, did I forget to mention the Google Search? :) Heck, tons of people in the world won't even be able to tell the country that launched a rocket few days ago is not the same country making its citizens do this.

Not to bash my own government or anything, but there is a tectonic shift I see here. The Internet is so border-less now that it's going to be increasingly difficult for local governments to lay hands on it. For example, Google actually made a way for users to get by just by selecting "another country" on Youtube, even without having to physically be there. So as a government, ultimately you only have two options on the Internet: be completely closed (China and North Korea) or be completely open (many other places).

You can go even further and ask "what does it mean to be 'local'"? Being physically local isn't the only option of being "local" any longer. Are you interested in Canon digital cameras and want to meet the 5D lovers from all over the world on flickr? That's your new local. Interested in NBA? That's your new local. Should I call TechnoKimchi a new local? I'm not sure because there's too much physicality here.

Many have begun worshipping Google for its brave act and a nice punch. How this will all end up remains to be seen, but this was a very crucial step forward for the Korean Internet industry as all others basically gave in to the government. And this was possible because Google is both big and global.

Wrong. Who are the "labor" people to the Internet companies? It's none other than us, the users.

Especially in an environment like in Korea where the scale is relatively small and homogeneity is the word that governs the culture.

What does that mean? By instigating a small number of zealots to form an opinion, you can easily maneuver in the direction of the crowd at will. How does that happen? By making them work FOR YOU.

Now, add in the "pali pali" culture as an ingredient. Everything in Korea moves just F-A-S-T, as if holding on to something old is actually a shame. As a result, what you get is people lined up to react to changes and do something dynamically 24/7. And it's all done manually, often even without getting paid.

It's widely known that much of Naver search is operated manually by hiring people to add links for certain topics and to edit the search results (for like $4/hr. Now I call that cheap labor!) Even when it comes down to content creation, many people are still paid to do so at an extremely fast pace, going after popular keywords at the moment. What's even more interesting is we have armies of 댓글알바, a.k.a. paid comment spammers, who'll just paint the Internet plaster with commercial content while masquerading as innocent housewives, students, or prosumers. Wrong. They aren't. They're often just college students that are dying to make the same $4/hr for leaving 100 comments on a designated topic.

Again, this is possible because Korea has a relatively small Internet market; people's interests don't vary much so it can be covered through manual editing. For Google, which tries to cover the entire Web, this might not be as cost-effective. You can't hire people or even instigate people to cover every single topic on earth. It just won't cut it. At the same time, for Korean users, Naver's handpicked materials are far higher quality meat than the automated version like Google's. This partially explains why Google still holds less than 5% of search market in Korea and the siloed portals are still dominant.

Want to succeed in Korea? Hear my words: work hard. I mean, real hard.

Yesterday, I came across an interesting article about the the Internet usage stats in Korea in 2008. (As you know, it's the end-of-the-year time and we're getting tons of statstical reports summarizing 2008, so it's good time for TechnoKimchi.)

So, to make it brief, you know that the top 3 traffic sites in Korea are Naver, Daum, and Cyworld. And guess what the top 3 search keywords for 2008 are? Yup. They are Daum, Cyworld, and Naver.

Wait a minute. Am I saying that people don't type in the URLs for those sites, but search for them to get there? Apparently so. Basically what this means is that Naver is the biggest traffic generator for Daum and Cyworld. It's like saying "most of Yahoo traffic comes from Google."

Indeed. Among other top 10 search keywords are gMarket (4), Auction (5) (gMarket and Auction are the top two ebay-like sites in Korea), Kookmin Bank (6), Yahoo (7), Woori Bank (8), and Shinhan Bank (9). Take notice the keyword ranking almost exactly aligns with the the most popular sites in Korea.

I've been personally watching some young kids at my church (around elementary school age) use the Internet. They actually do search on Naver for the names of sites they want to get to and get there by clicking on the links. I asked them, "why do you search instead of typing in the URLs?" The answers typically come in two ways: "Why not?" or "URLs?"

This is the power of the search economy. The fact that the top search keywords are Daum and Cyworld, not Naver and Cyworld, means it's the No.1. search portal Naver that sends out traffic to Daum and Cyworld, making them the greatest beneficiaries of their greatest competitor in Naver. Traffic means money, but apparently that's the cost Naver will gladly take.

Display ads are dying. URL games are dying. Newspapers are dying. The only thing that seems to be certain in the midst of economic downturn and flood of information is the efficiency of search engines. No wonder Google is the king no matter what.

(After reading through comments provided by Channy and Chang, I realized this is not a trend only unique to Korea but rather a universal one. Guess who's been behind, haha. Sorry, folks :)

Many Korean web sites, ranging from internet banking sites to TV livecasting sites, mandate users to install Active X components (a small bit of extension program used by Microsoft Internet Explorer web browser) to use the service. Which means if you are a Firefox user in Korea, there are many websites that are quite integral to your life that you simply can't use.

For example, you cannot print public documents by accessing government websites on Firefox. Or, for that matter, you cannot even buy a Mac on a Mac - as the credit card transaction requires the installation of a security program that only exists as an Active X control for Internet Explorer. Want to buy a Mac from their online store? Get a PC.

-- Are you a Korean web user? You might have 100+ Active X's installed, Web 2.0 Asia