Apple’s iPhone arrives to rousing welcome in tech-savvy South Korea

By Kelly Olsen, AP
Saturday, November 28, 2009

Apple’s iPhone arrives in tech-savvy South Korea

SEOUL, South Korea — South Koreans got their first taste of the iPhone on Saturday as the multifunctional communication and entertainment device made its long awaited debut in one of the world’s most technologically sophisticated societies.

Though already available in other Asian countries such as Japan — where it went on sale last year — the slim smartphone got a late start in South Korea amid regulatory hurdles and tough negotiations between manufacturer Apple Inc. and a local telecommunications company.

But the waiting finally came to an end for about 850 South Koreans who took possession of their coveted iPhones at a boisterous official launching event in Seoul characterized by blaring music and flashing lights.

“I’m really happy because I waited for a long time,” said Kim Min-ju, a dentist who traveled to Seoul from the regional city of Cheongju. Kim said she planned to use her iPhone to study English.

Huh Jin-seok, the first recipient of the iPhone, had waited in line more than 26 hours outside the arena where the event took place. The 25-year-old university student expressed joy, though acknowledged being “a little bit tired.”

South Korea is home to world-beating technology corporations including Samsung Electronics Co. and LG Electronics Inc. The country is also known for its high penetration rate for broadband Internet as well as government encouragement for IT-related innovation.

But Smartphones — which are advanced mobile phones with computer-like capabilities — are just taking off.

“We’re hoping that this iPhone will be a trigger point for the smartphone market in Korea,” said Yang Hyun-mi, chief strategy officer at KT Corp., Apple’s local partner. Smartphones make up just 1 percent of all cell phones in South Korea, she said.

Yang declined to offer a sales forecast for the iPhone, but said KT was optimistic given higher-than-expected advance orders.

“We just think it will be really huge,” she said.

About 65,000 people placed orders since Nov. 22, according to KT.

Steve Park, Apple’s spokesman in South Korea, declined to comment on the launch of the iPhone.

The Korea Communications Commission — South Korea’s telecommunications regulator — paved the way for the iPhone’s introduction by granting a license to Apple earlier this month to offer so-called location-based services, which include functions such as maps and direction finders that are available on the iPhone. South Korean law requires companies that provide such applications to obtain government permission.

The commission earlier this year also abolished a rule that required all mobile devices to carry special software adapted to South Korea’s wireless Internet platform, which was an added cost for foreign manufacturers and viewed as a trade barrier.

KT’s Yang said another factor contributing to the delay was a complicated negotiating process with Apple over what she described as the Cupertino, California-based company’s strict standards and policies.

The iPhone is expected to pose a challenge to Samsung and LG, which dominate the market for mobile phones in South Korea and also make smartphones. They are also major players globally in mobile phones, ranking No. 2 and No. 3, respectively, behind Finland’s Nokia Corp.

KT, South Korea’s second-largest mobile carrier, already offers service plans for smartphones made by Samsung, LG, Nokia and a Taiwanese manufacturer, said KT spokeswoman Alice Park.

Also available in South Korea is Research in Motion Ltd.’s Blackberry, which is offered by SK Telecom Co., the country’s largest mobile carrier.

Moon Chang-soo, a computer programmer, said he plans to mostly use the iPhone to keep his life organized.

“It’s amazing,” he said, describing his feelings at finally getting one. But despite its fame as a smartphone, Moon used it in a more basic way.

“I just made a call to my wife,” he said with a laugh.

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