`iPhone will have huge impact on Korea`

By Jin Hyun-joo

Lee Chan-jin, a software veteran well-known for the development of the first Korean-language word-processing program, is an avid user of Apple`s iPhone.

Since Lee, now chief executive of the web portal DreamWiz, bought his iPhone 3G from eBay last year, he has been using it to do much of what he used to do on his PC -- emailing, enjoying music and videos, and getting news, weather and stock information.

He said Korean consumers would soon be able to enjoy the many benefits of the sleek device, expecting the Apple`s iPhone to hit the local market by August.

The 44-year-old said that the iPhone would have a profound effect on the mobile ecosystem and consumer experience in Korea. "The impact (of the iPhone) will be enormous in Korea. ... It will shift the paradigm in mobile phones," he said.

Pocket PC

"The iPhone allows users to conveniently access the Internet anywhere, anytime," he said. It also lets consumers tap into a wide range of applications as opposed to being constrained by the limited content offered by carriers, he added.

These carriers who have been boosted by the government`s lifting of requirements for Korea`s wireless Internet platform called WIPI, have introduced a slew of smart phones since late last year. However, the smart phone market is growing slower than expected here, accounting for a meager 1 percent of local handset sales.

Lee attributed the sluggish smart phone growth to the unavailability of the iPhone in Korea.

"Nearly 95 percent of smart phones sold here are powered by Microsoft Windows Mobile operating system. Mobile carriers have brought a bunch of inferior products and asked customers why they are not using them," he said.

Lee, who has been in the computer industry for more than 20 years, said the iPhone provides a superior mobile web experience that is unrivaled by any other mobile software platform.

"Apple`s iPhone is overwhelmingly good," he said.

In a blog post in April, the software veteran expected Apple`s iPhone to come to Korea in August at the latest, heightening expectations among Korean tech lovers for the launch of the hot-selling device.

Korea was not initially included in Apple`s recently-released list of 80 countries where its latest iPhones will soon be available. Lee said he had "reason" to believe that the iPhone would be soon available in Korea, but refused to provide details. KT, Korea`s No. 2 mobile carrier is known to be interested in the iPhone launch, but has reiterated that nothing has been decided yet.

However, last week it was confirmed that the U.S.-based Apple has gained regulatory approval for sales of its iPhone 3G here. "Things are going as I expected," Lee said.

iPhone to bring power shift

Lee also said iPhone`s potential sales in Korea will have bigger implications, adding that he expects the smart phone to break the carrier-centric structure of the wireless industry as it has done in other countries.

"Apple`s iPhone would take away the control carriers have exerted over mobile content, and give it to software developers and customers."

Currently, mobile operators provide subscribers with a limited choice of content under deals with select content providers. "The current relationship between content providers and mobile carriers is not transparent, sound or desirable," he said.

The lack of content, along with expensive data rates and poor user interface, have been cited as major reasons for the country`s slow growth of mobile data traffic.

"Although KT may have to relinquish control over the content and applications downloaded onto mobile phones, it will gain more than it loses from the introduction of the iPhone," he said. "KT will be able to generate revenue from mobile data plans required for the iPhone, which will offset a drop in content revenue."

He added, "KT can also benefit from subscriber growth, as the iPhone is expected to incite many customers to switch from its larger rival SK Telecom, to KT."

Opportunity for developers

The iPhone will also create an opportunity for developers because the device allows users to directly access the internet and download applications without going through carriers` closed portals.

"The iPhone can provide equal opportunities for success," he said.

Lee sees huge opportunity for the smart phone application market, which is expected to expand exponentially along with the growth of smart phone sales.

"Where there is change, there is opportunity," he said.

"The opportunity is not limited to the iPhone. Android phones could create greater opportunity," he said.

About the move by Korean firms such as Samsung, LG and SK to launch the likes of Apple`s App Store, he said he was "Not interested."

Lee said he does not think that they have an understanding of or enthusiasm for an application marketplace.

Lee developed the Korean word-processing system, "Hangul," In 1989 and founded the company Hangul & Computer to develop and sell the software. After leaving the firm in 1999, he established DreamWiz which also runs a unit specializing in developing smart phone applications for consumer and corporate use. To date, the TouchConnect has developed 20 applications for Apple`s App Store.

(hjjin@heraldm.com)