Korea Technology Review2009.08.25 17:36

Korea has become the 10th country to join the space club Tuesday. Naro-1 or Korea Space Launch Vehicle-1, the first Korean rocket developed with the help of Russian space technology blasted off the launch pad at 5 p.m. after its initial launch was canceled at the last minute last Wednesday. 

The first stage liquid-fuel rocket of Naro-1 was assembled and air-lifted from Russia, whereas the second stage solid-fuel rocket was developed locally by Korean scientists. The scientific satellite delivered by Naro-1 to an orbit some 300Km high is flying over Norway just 10 minutes after the blast-off, according to the local media report. 

There has been some controversy last week about the merit of launching the half-a-billion-dollar rocket while Koreans are mourning the death of the former president Kim Dae Jung. But it went ahead according to the schedule until the main computer aborted the launch just about 8 minutes shy of count zero.      

Pyongyang has been grumbling recently about Naro-1 rocket and warned that they will "closely watch" if the United States and its allies will take the same punitive actions against Seoul as they did in the wake of its purported peaceful launch of Taepodong rocket last April.  



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Korea Technology Review2009.08.25 15:45
NHN, Naver's parent company, best known outside as Korea's Google, unveiled a new corporate logo today. NHN has HAN Game, Junior Naver and other service affiliates aside from its main search engine business. As usual with the introduction of any new corporate logo, local reaction is mixed at best. Look and judge it for yourself.

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Korea Technology Review2009.08.07 15:50

These girls will chat with you for hours. They will dance for you and even flash their cleavage if you are willing to spend a fortune -- only they are paid in cyber-cash called "star balloon", the prime incentive for their online flirting. After amassing enough star balloons, they can sell them back to its issuer Afreeca.com, a Korean live webcasting service provider.

Afreeca.com rose to a prominence last year when hundreds of eager broadcasting jockeys active in the site hit the road, armed with a portable live webcasting device. They broadcast live the candle light vigils for 24/7, which was against the import of American beef potentially infected with mad cow disease.

Who would have imagined that some Korean girls will soon be earning millions at Afreeca.com every night by selling their cute faces to hundreds of horny guys?


The gift-giving between online friends has been one of the most lucrative income sources for many Korean dot-coms, including Cyworld. But Afreeca.com tweaked the familiar model and allowed thousands of mostly teenage boys to pay the girls star balloons, turning the nature of the online transaction from one-to-one to one-to-many.

One hot shot caster known by her web handle Eve Kim, netted over 630 million won or about half a million US dollars since she opened her private web station at Afreeca.com, according to a leaked screenshot of her cybercash earning log. The money was enough to buy her a new house.

Earning the attention of these cute girls is not easy though. For a fleeting glance, you might pay her 50 star balloons. If you want more than an elusive chat and wish to score an intimate dialogue with Eve or even a brief glimpse of her cleavage, you should be ready to give her at least 1000 star balloons per session. One hundred star balloons equal 8000 won currently.

As the competition to score her increasingly tantalizing attention gets fiercer and fiercer, some would throw out over 4000 star balloons at a time, which is worth over 300 dollars. Afreeca.com earns both ways by either selling star balloons to thousands of eager consumers of the online voyeurism or charging a handsome fee on the currency exchange from cyber cash to hard cash.

While the girls at Afreeca.com were earning a fortune by capitalizing on the mostly horny teenage boys, the crazy Korean online voyeurism among some grown-ups took an unexpected turn last week.

Naked News Korea ("NNK"), the Korean branch of the international news franchise shut down its Seoul office on July 28, leaving nine unpaid Korean emcees behind. The franchise earned its naughty reputation by broadcasting news narrated by semi-nude anchorwomen flaunting their bare assets.

Its web-only channel opened to Korean online users early July with much fanfare and has since attracted over one million visitors. However, NNK's female hosts failed to persuade them to join as paying customers. Only about 30,000 subscribed for a six-month viewing plan. To make things worse for NNK, Korea Communication Commission was zeroing on them for a potential violation of the Communication Decency Act.

In hindsight, all that noise and circus hoopla seems to be designed as a clever hoax from the start to earn quick money. It was revealed later that they had no official business tie with the head office in Canada but simply licensed its news brand from Naked News for their Korean operation.

The management seems to have fled town without paying due salary to the Korean anchorwomen except to leave them with some key studio equipment. Korean media has already named the farce the international hoax of the year.

Nobody with a sane mind would recommend these wicked business models to any entrepreneur outside Korea, but these two incidents seem to have proved the validity of a centuries-old lesson again -- that sex sells and it certainly sells well on the Web.
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Korea Technology Review2009.07.29 14:22


“Korean IT sector has taken an evolutionary path to increasingly resemble Galapagos Islands.” 


An intriguing idea proposed by The Hankyoreh, a local daily in a feature article (published on July 27), is creating a stir within Korean technology circles.  

 

Why Galapagos? The islands are famous for their unique and colorful bio diversity but remain vulnerable to the infiltration of alien species since they took an entirely different evolutionary path for millennia, isolated from the rest of the world. Should any competing species equipped with evolutionary superiority advance to the islands before indigenous residents develop a sufficient defense mechanism, the fauna and flora of the entire island can easily be wiped out. 


Such is the present status of the Korean IT sector, The Hankyoreh observes. Once the envy of global IT industry, it is now considered a technological laggard to the astonishment of many in the know, especially in the area of mobile Internet. 


For starters, Korea is the only developed country in the world that has yet to see iPhones, the gold standard of modern smart phones. Local carriers, bent on protecting their walled garden are still hesitating to embrace the breakthrough phone from the Cupertino, California company, though KT will finally introduce the 'Jesus' phone to Korean Apple fans probably by this August after nearly two years of murmur, balk and backpedalling. 


No wonder the penetration of mobile data usage among Korean subscribers is barely 15.7 percent, about 10 percent lower than the worldwide average of 25.3 percent, according to a recent survey by Strategy Analytics. What's more, the average share of mobile data charge in the monthly bills of SK Telecom subscribers has actually shrunk by 20 percent this year as compared to years 2006 and 2007. 


Samsung and LG may be selling some of the most advanced touchscreen phones in the global market, but when those high-end phones are released for the local folks, they are sans Wi-Fi for fear of getting on the nerves of local carriers. DMB for mobile phones, the pet project of the Korean government, and other home grown innovations in the new media also remain confined to the domestic market and have yet to find followers outside of Korea. 


The freedom of speech in the Korean Cyberspace is rapidly deteriorating as well, amid a flurry of recent legislation that ranges from the real name log-on system that invited a sharp rebuke from YouTube Korea and the three-strike rule for  online copyright infringements. 


The government argues that those new rules will bring order to the wild wild web of Korea, but many bloggers and industry participants are increasingly suspicious that they are in fact designed to control the boisterous Korean online space highly critical of some controversial policies of the current government.


Indeed, "Minerva," the famous prophet of the doom in Korea that rose to a prominence last year by predicting the demise of Lehman Brothers, was arrested but shortly acquitted last April from a dubious charge that he discredited the government by spreading false information about its foreign currency policy.


The arrest of Minerva was such a shocking incident to many Koreans that thousands of alarmed netizens flocked to Google or YouTube, seeking an online asylum in foreign Internet services. When it was revealed in June that Daum,  the second largest portal in Korea had succumbed to the demand of the local attorney's office and handed over some private emails of producers and script writers who were accused of insulting the government officials, tens of thousands of people moved their email accounts to overseas service providers, notably Gmail. 



The recent developments in the Korean IT sector reminds many industry observers of the spectacular failure of another nation in Asia―Japan. 


Back in the late 1990's and well into the early 2000's, Japan was full of eye-popping handsets that were an envy of the global IT world and a torrent of sophisticated innovations was pouring out of the mobile Internet sector. But like Galapagos Islands, Japan took its own unique evolutionary path in the technology, cut off from the rest of the world. It is now a well-established fact that Japan had to hurry later to catch up with the Web, ironically because of its sophisticated -- but highly insular -- innovations in the homegrown mobile internet.


Many in the Korean IT business including the author are worried that they are looking at yet another incarnation of the Japan's spectacular failure in 1990's in their own home turf. Today, no Japanese company, with the exception of Sony-Ericsson, retains any meaningful presence in the global mobile handset market.    

    

The highly anticipated launch of iPhone in Korea this fall will be closely watched by many in and out of Korea, as a potential event that would signal a turning point in which Korea stopped its evolutionary path to become a technological Galapagos Island.

Posted by PSB

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Korea Technology Review2009.07.27 13:17


Samsung jumped on the e-book bandwagon, populated with such industry stalwarts as Amazon and Sony, with the world's first e-book reader, it claims, that readers can handwrite notes and memos while reading the text. 

About the size of a personal diary (5.63-in x 3.78-in x 0.35-in) and weighing 7.05 ounces, Samsung's e-book reader (SNE-50K) seems to be optimized for the tiny Korean hands. It comes with 512MB memory out of the box, good enough to store some 400 titles and sports a 5-inch black-and-white screen. The pre-installed virtual printer driver converts Microsoft Office files and PDF documents to a viewable format. 

To offer some 60,000 e-book titles in time for its mass-market launch, Samsung joined with Kyobo, the Korea's largest book chain across online and offline market. Kyobo will sell e-books at a heavily discounted price following the precedent of Amazon. 

Don't expect to find Samsung e-book readers anytime soon in the American soil though; it was intended for the Korean domestic market and support no wireless e-book downloads--for now. 

  



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Korea Technology Review2009.07.22 12:11

The giant sucking sound of Naver guzzling down near 70 percent of the Korean Web traffic is fading out this summer but Naver seems to be paying the price of "not being evil" if a newly released mid-term tally is to be believed.


Nate, the perennial third player in the Korean portal business has taken over Naver this summer in the news service segment according to a research by Korean Click, a Seoul based Web rating agency. Nate news logged 8,626,364 unique visitors in the first week of July surpassing Naver news (8,547,703), Korean Click said. But it still trails Media Daum, which topped the survey by attracting over 12 million unique visitors in the same period.

Officially, NHN -- Naver's parent company -- does not seem to consider it an issue though. When it unveiled Newscast and Opencast this January, NHN promised to turn the site from a traffic center to a traffic distributor, redirecting search queries and news traffic to other dedicated sites. The current waning of the traffic has been predicted, or even intended, NHN says, as it was trying hard to deflect a growing suspicion that the Korea's top portal is enjoying an unwarranted influence by wielding its formidable political clout.

Since Naver started to forward the news traffic, some 40 news sites invited to edit their news links for the Newscast page saw their traffic doubled or even tripled, acing several Korean top site rankings. Naver is ready to take back the traffic forwarding, however, on a short notice from any affiliated news site. When the web site of Chosun.com crashed on July 7 after failing to fend off a massive distributed denial-of-service (DDoS) attack, Naver indeed come to their rescue by re-routing the news traffic back to its servers.

The rise of Nate news, however, cannot be simply attributed to the introduction of Newscast, whose beneficiaries Naver may scoff at as a lucky picker of an easy windfall. Aside from the relative decline of Naver, Nate news seems to have touched upon some soft spots of Korean online news surfers.

Though many believe that people read news to look for new information, news reading is largely out of habits, a daily ritual to be reminded that they still belong to the society. In a highly competitive society such as Korea where people are driven by the permanent anxiety that they might be left behind alone in the dark, excluded from the top conversations of the peers, the Web's amazing feature that allows readers to track the "most-talked-about topics" is even more pronounced. That is exactly what Nate news has delivered to its readers.

By sharpening its aging Web 2.0 applications as well as infusing them with some new features that track the real time surfing pattern of its news readers from multiple angles, Nate news was reborn as the most interesting place for the Korean news readers to get engaged in the day’s top discussions. On the other hand, Naver was struggling to emulate such features as it displaced its main news box with the Newscast.

Opencast, Naver's another attempt at replicating the Newscast model with the participation of bloggers is not taking off either. Naver sent invitations to some 2000 bloggers late last year to beta test Opencast, but the number of Opencasters has since dwindled to 1,140 after six months in operation, before it picked up slightly.

The idea behind Opencast is that by randomly exposing several thousands of cast boards edited by bloggers every day, Naver would be able to eliminate the controversial intervention of the staff editors for good, protecting itself from the repeated attack on its "arbitrary and biased editorial process". However, even Naver's mighty traffic was not good enough to satisfy the thirst for page views of many top bloggers, as they were getting barely over several hundred clicks after the bulk of traffic was distributed over 2000 cast boards in an egalitarian fashion.

Planet Size Brain, the author's Korean language blog, was once linked to the Opencast main page for about half a day but it attracted less than a couple of hundreds clicks, far less than the 5-minute fame top bloggers are craving for. Opencast is going nowhere serving neither Opencasters nor Naver itself.

The Web might be an infinite space where every one would find their own nesting ground, but the attention of the audience is a scarce resource limited by the number of total human eyeballs. The lessons of Economics 101 is that scarcity is the mother of all economic values. Naver should have installed an artificial scarcity in Opencast, which would inevitably invite some form of human editorial intervention.

Sure enough, Naver announced in early July that they would cap the number of rolling cast boards to 10 to 30 for every 24 hours. Naver will even reintroduce '36.5C' its own cast board edited by the internal staff, backpedaling to the old days of top-down editorial intervention.

Naver is an unique portal optimized for the Korean tastes. It's a hybrid between a search engine and a news portal, a chimera between Google and Yahoo. The dilemmas it is experiencing now are happening because it is oscillating wildly between a search engine and a news portal. 

In doing so, Naver seems to be neither satisfying the Koreans hungry for the common topics nor achieving its goal of not being evil. Naver's challenge would be to identify a sweet spot somewhere along the conundrum of two conflicting ends.
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Korea Technology Review2009.07.21 15:38


As Korean Apple fans are eagerly waiting for the much belated launch of iPhones here, a free iPhone webtoon app is brewing a fresh resentment against Korea's Google this summer among Korean cartoonists.

Naver has unveiled an iPhone webtoon app early June, and in an unprecedented move, released 57 popular titles selected from its library of over 100 webtoons for free downloads. Once downloaded to their iPhones, users can keep them for 30 days before they expire. 

As the shelf life of most webtoons in the market are generally less than a month at most, Naver's decision to let them expire after 30 days is drawing a sharp criticism from cartoonists. Naver had reportedly signed a new contract with their cartoonists earlier to pay 10 percent additional fee for a right to distribute them to other channels including iPhone. 

But cartoonists insist that fine details of the contract were not readily communicated for them when they signed it. As they have a high hope for an iTunes like pay-per-download content model to arise from the iPhone platform, Naver's decision to distribute them for free to iPhone users is raising the ires of those concerned cartoon creators.        

Unlike webtoons, mobile toons are handy and considered a direct competition to comic books, the most lucrative income source for cartoonists. Naver is said to be negotiating with the Korean Cartoonists Association to settle down the conflict amicably.
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Korea Technology Review2009.07.13 19:15



"I told you so!"  

I may have earned a bragging right or two. Last April, while blogging about the latest trends in hybrid cars, I predicted how auto manias would yearn for the old-fashioned engine sound in the silent age of electric cars. 

"Aging auto purists will still yearn for old-fashioned vrooming sounds from the 20th century gas-guzzlers, however. Never worry though, since the hi-fi stereo in your brand-new hybrid car will inevitably give you an option to pump up several versions of simulated muscle-car sounds from speakers -- every time you step on the "gas."

Well, Tom Zeller, a green columnist for the New York Times, seems to agree with me. T
he Japanese Transport Ministry confirmed earlier this month, Zeller reports, that the department had assembled a panel to consider the idea of adding “a sound-making function” to hybrid-electric vehicles.

“Blind people depend on sounds when they walk,” the official told Agence France-Presse. “But there are no engine sounds from hybrid vehicles when running at low speed.

Drivers and pedestrians use both visual and aural information when it comes to anticipating the roadside hazards around them, just as they rely on reassuring click sounds of iPhone's virtual keyboards whey they type text on its touch screen. T
o blind pedestrians, but also to bicyclists, children and others, the relative quiet of electric vehicles has long been considered a potential hazard. Presumably, they are better served by the rumbling declarations of the internal combustion engine.

Old habits die hard. We interpret ear splitting blares from a double-horn as a signal of an incoming truck or trailer. Car designers have been thoughtful enough to assign a matching horn sound to a specific type of vehicle, helping drivers to warn pedestrians of their looming presence on the road.  This way, people can anticipate the dangers without necessarily looking back.

I believe drivers of the future hybrid or electric cars could download any automobile or engine sound they want to simulate with to their stereos before they hit the road, including of course a premium option to choose from those by some classic muscle cars.
Posted by PSB

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Korea Technology Review2009.07.08 16:47


UPDATE:  Three days after OhmyNews asked its readers to join the site as supporters, some 1100 readers have confirmed their financial contribution so far, with 4015 pledging the commitment according to an online counter posted in the dedicated page. 

Mr. Oh's tactic is well known among some American advocacy media circles, notably Pat Robertson, a conservative Christian televangelists. Fund-raising as a means for supporting a media organization has traditionally been a favorite strategy of many partisan and religious media. 

You wouldn't believe it is a pure coincidence that Mr. Oh had attended classes on the media management in Regent University before he launched his citizen media venture in Korea. No wonder the most enthusiastic early participants so far seem to be liberal types frustrated with the overtly conservative policies of the incumbent government. It is doubtful if OhmyNews' direct appeal to readers for a financial commitment will be successfully emulated elsewhere if your media is serving the non-partisan general audience. 

On another note, OhmyNews International has published a partial translation of Mr. Oh's open letter to its readers. 

OhmyNews is eyeing up to 10,000 supporters to join the site by the year-end, realizing a financial turn around by then. It remains to be seen, however, if the current momentum will hold up even after the initial buzz and enthusiasm starts to dissipate.  


    
OhmyNews Hopes 100,000 Supporters Will Save It from the Financial Troubles 



OhmyNews, a pioneering Korean citizen journalism site, lost KRW500M or about US$400,000 this year alone, Oh Yeon-ho, the founder and CEO of OhmyNews disclosed in an open letter published on its news site Wednesday. And he fears it would lose more money as advertisers keep slashing marketing budget amid the global financial crisis. 

Mr. Oh believes, however, if 100,000 readers join OhmyNews as supporters, paying KRW10,000 a month, it would achieve its financial independence without necessarily relying on advertising dollars. 

"For a citizen media to remain healthy and preserve its editorial integrity, it will have to earn at least 50 percent of its income from the sales of content or paid subscriptions. Despite our best effort, OhmyNews still relies on advertisers for more than 70 percent of its revenue." 

Launched in 2000, two years before the Presidential election, OhmyNews quickly rose to prominence by providing a voice for young online readers and mostly liberal political groups. The site has been largely credited for the successful campaign of the reformist president Roh Moo-hyun. Roh killed himself last May in a shocking move that surprised his supporters and political adversaries alike. He had to endure mounting pressure form his opponents, while the attorney's office grilled him with a highly controversial investigation on his alleged slush fund scandal.  

OhmyNews has gradually lost its standing for the past couple of years, as competing citizen media platforms started to attract its core young Korean readers. The recent global financial meltdown was another blow to its shaky financial structure. 

Despite its dwindling status, however, OhmyNews still enjoys strong influence among young Korean readers interested in the politics, and during the massive candle light protest last year against the import of the potentially contaminated US beef, the site demonstrated that it can always bite back with a formidable force. 

Since its inception, OhmyNews has relied on citizen reporters for more than 70 percent of its news content it publishes. At the content side, the site has already achieved its editorial independence. Can OhmyNews pull off another miracle in the finance side as well and stand up again as a sustainable media business? For more updates and developing stories, stay tuned to Planet Size Brain.    


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Korea Technology Review2009.06.22 20:04
                 
                  Screen capture of NHN's search engine for Japan currently open to beta testers
 
The World Cup 2002 Korea-Japan, the first World Cup co-hosted ever in the history of the games, gave socio-cultural analysts in both countries an unusual opportunity to compare the behavior of the two historic rivals.

Ha Yong-chul, a Korean sociologist at Seoul National University, watched the televised games and noted an interesting difference. Whenever the Japanese national team scored a goal, the soccer stadium in Japan was instantly filled with thousands of flash lights bursting out of ubiquitous Nikons and Canons.

Scenes in the Korean Soccer stadiums couldn't be more different. The Korean team equally electrified their home fans as they beat European power houses, game after a game, until they qualified for the semi-final. Unlike Japanese soccer fans, however, Koreans opened their shiny clam-shell phones whenever their team scored a goal, and furiously hit keypads to send text messages or voice mails, sharing their ultimate joy with their family and friends.

Far more important to the Korean cyber-generation, it seemed, was to share their bursting emotion with others and network with them, rather than simply recording the events as Japanese did.

To untrained occidental eyes, it is not easy to tell the ethnic differences between an average Japanese and Korean. Their socio-cultural behavior, however, are miles apart. In fact, many Koreans find their closest neighbor more foreign then any other country in the world.

Obsessed with protecting their privacy, the Japanese cherish their own den. Wa or harmony is the key value in the country and the average Japanese would not dare to stick out of the pack and challenge the social consensus. Even in the crazy morning subways crowded with hundreds of commuters, Japanese do their best to protect their private space.

It is actually quite easier than it sounds. By plugging white ear buds in their ears, Japanese commuters are instantly transported inside their own iPod bubble and swaddled in the familiar music. Or they can simply bury their nose in comic books.

Solitary souls bent on keeping their private den as clean and serene as possible; the Japanese character is best defined as feline. No wonder the most beloved pet in Japan is the cat. Cats frequently appear in many Japanese animes as well as in countless folklore.

Fly two hours to the west and things are couldn't be more different. Koreans are social animals that will live or die in their friend network. They are not afraid to ruffle the feathers, if necessary, engaging sometimes in a heated political discussion on the Net. Chatting over a mobile phone in the subway is not necessarily a bad thing, as long as the noise level is not too high. Korean commuters are usually more tolerant than Japanese to noise in their vicinity. They would spend their short morning commute on networking with their friends, tapping the keypads of their handset to send or receive text messages.

Networked souls whose social success is measured by the mutual loyalty to their reference group; Korean character is best defined as canine. In fact, the dog is routinely featured as a reliable guardian of the man in the Korean folklore whereas a cat is usually considered an ominous animal or even a harbinger of coming disasters.

As different as cat and dog -- this is a fundamental quandary to many Korean Internet companies that wish to export their service models to the closest neighbor. NHN, OhmyNews, Cyworld and Nexon. The list of Korean Web brands that fell victim to the cultural barriers of Japan is long.

Understanding of the feline nature of the Japanese users may help you to engineer a soft landing on the Japanese market, though. One obvious insight Korean companies can gain from Japan's love of a private den is that a blog service would be a good match for them. It would be even more desirable if the service allows users to enjoy bigger storage capacity as comparable to some professional web storage services. And the option for strong control over the personal content and comments would be an absolute must.

Even if you are going to launch a social networking service, you would still want to employ blog-like features. Japanese web brands that wish to enter Korean market, on the other hand, would be best advised to do the opposite. Even if you are going to launch blog service, the platform will have to offer enough social networking features that will satisfy the fiercely networked animal that is Korean.

Looking back, stockpiling and sharing the data on the Net doesn't necessarily have to be mutually exclusive. Users will need to store information before they can share them with others. Digital cameras that took tons of soccer pictures back in the 2002 World cup are now integrated to almost every handset in the street. In fact, it is almost impossible to buy a phone without a camera in Tokyo or Seoul. Every man's storage or feline device is now being coupled with every man's networking or canine device.

Advice to NHN Japan poised to launch its first search engine in Japan: If your service is going to succeed in Japan, the question for you is just which switch you are going to turn on first--feline or canine.
Posted by PSB

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