Korea approves Apple iPhone sales

The Apple iPhone is expected to finally hit the Korean market as early as next month as the last regulatory hurdle for the sale of the popular smartphone was finally cleared.

The Korea Communications Commission said yesterday it decided to allow Apple to provide its location-based services with iPhone users, without having to gain a government license. Under Korean law, a company should obtain a license to offer location-based services and take responsibility for possible leakage or abuse of personal information. However, the KCC flexibly applied the law, hoping the iPhone would reinvigorate the sluggish mobile internet services and mobile contents industry, officials said.

KT, the seller of the iPhone will undertake responsibility as a location-based service operator, the KCC said.

"Although Korea is an advanced country in terms of information technology, the iPhone has not been introduced in Korea," Hwang Chul-jeung, director of the KCC`s Network Policy Bureau, said at a press briefing.



The KCC said its latest decision has also taken into account the calls from iPhone fans who bombarded the commission`s homepage with messages calling for iPhone rollout in Korea. Under the KCC`s decision, KT, the country`s No. 2 mobile carrier, is expected to sell both the 3G iPhone and 3GS iPhone in October, industry officials said.

"We plan to introduce the iPhone as soon as possible," a KT spokesperson said.

However, he said the release date has not yet been decided because the company and Apple have to negotiate remaining issues such as the size of handset subsidies provided to iPhone buyers, and the volume of iPhone devices to be released here. He added that it will be hard for KT to roll out the iPhone prior to Chuseok that falls on Oct. 3.

KT expects the iPhone to boost its data revenue by increasing mobile internet traffic. The operator also believes "the killer" smartphone would help boost its subscriber base and narrow its gap with its bigger rival SK Telecom.

An industry official said the KCC appears to have made concessions to Apple over the iPhone rollout.

"The KCC gave leniency to Apple by interpreting the law in a different manner," an industry official told The Korea Herald on condition of anonymity.

He said KT may face a backlash from local handset manufacturers should it give generous subsidies to iPhone buyers as its overseas peers do.

"Now the ball`s in KT`s court." he said.

Talks of the iPhone launch in Korea have been circulating for a couple of years, but government regulations and carriers` reluctance to introduce the iPhone have delayed the launch of the much sought-after handset.

Mobile carriers were concerned that the iPhone would erode their mobile data revenue by allowing users to bypass their mobile portals and download content and software from App Store via free Wi-Fi.

(hjjin@heraldm.com)



By Jin Hyun-joo