Archive for the 'Korea' Category

Microsoft Ends South Korea Legal Battle

Thursday, October 18th, 2007

The AP is reporting that Microsoft has stopped appealing the anti-trust suit it lost in South Korea in 2005. The official decision is available for download here.

The ruling imposed a multimillion dollar (euro) fine imposed on the U.S. software maker for unfair business practices and required Microsoft to provide two separate versions of Windows, one stripped of the Windows Media Player and Windows Messenger and the other carrying links to Web pages that allow consumers to download competing versions of such software.

This is an important decision for the Korean Fair Trade Commission.  Let’s hope that the KFTC takes seriously the new concerns around the defacto monopoly of the web in South Korea.

Microsoft wants to drop antitrust appeal in South Korea - International Herald Tribune

update on the cost of monoculture in Korea

Friday, September 21st, 2007

Some of you may remember a popular post I had earlier this year called “the cost of monoculture” which looked at the de-facto monopoly that Microsoft Internet Explorer has in South Korea for a number of historical and technical reasons. There has been some movement on this topic recently and I wanted to share this information with everyone.

On September 11th (while in the last minute rush planning Mozilla 24), I took a day trip to Seoul to make a presentation on behalf of Mozilla to present to the Korea Free Trade Commission, the major quasi-governmental anti-trust body in South Korea. To provide some background to the state of the Internet in Korea, some 35 million of the 50 million South Koreans use the Internet, leading the world in broadband usage. Comscore data supports this as well. Mozilla was invited to present on the de-facto monopoly that Internet Explorer has in Korea, which is detailed on my blog from earlier this year. The presentation I used is up on the Mozilla wiki: Fair Trade Commission (South Korea).

In addition to Mozilla, Mike Junn, country manager for Opera Korea, spoke about the limitations Opera has in the Korean mobile browser market due to the KFTCI’s policies, and Mountie Lee from Paygate (a Korean payment processor which has a browser-agnostic solution) spoke on the limitations of the payment processing market. It was important to show that the actions of the KFTCI, who provide the accredited certification service only for Internet Explorer, end up affecting not only other desktop browsers who can’t support a Microsoft-specific proprietary plugin like ActiveX, but also non-Microsoft mobile browsers as well as payment processors who want to provide their services on browsers other than Internet Explorer. Showing the diversity of the organizations impacted by the KFTCI’s policies, in addition to the market share implications, showed the breadth of the impact of the de-facto monopoly.
Attending the meeting were officials from the Korea Free Trade Commission (KFTC), the Korea Financial Telecommunications & Clearings Institute (KFTCI), the Korea Information Security Agency (KISA) who provide the Korea-specific cipher SEED which is used in the KFTCI’s accredited certification service, and a number of industry experts including Channy Yun who is the most active Mozilla volunteer in Korea and is the localizer of Firefox in Korea.

The meeting presentation was organized by Dr. Keechang Kim of Korea University, who has been in the news recently as one of the organizers of the non-profit OpenWeb group, and who has been pushing for browser and web interoperability in Korea. Currently Internet Explorer has a 99.43% market share as surveyed by a major Korean survey firm.
This was a very important meeting as the decision on whether to move forward with an investigation will be made after the content of this meeting is evaluated by the KFTC. Note the KFTC is the organization which fined Microsoft $32 mi. USD for antitrust abuses in Dec. 2005, and forced Microsoft to sell two versions of Windows in Korea (without the Media Player and instant messenger.) So there is an important precedent. The EU also fined Microsoft for anti-trust abuses and forced Microsoft to sell a version of Windows without Media Player, called Windows XP Home Edition N. The EU decision against Microsoft was recently upheld by the EU Court of First Instance which also indirectly supports the KFTC’s 2005 actions against Microsoft.

Prof. Kim told me that the KFTC was initially leaning against investigating this issue further, but that after the meeting, “[Mozilla's] presence itself made everyone realise that the question today is a competition law issue.” The key thing to recognize is that while technical solutions like adding support for Korea’s cipher to NSS (which is only one part of a potential technical solution for Firefox) should be investigated, keeping the discussion at the anti-trust/competition law level is critical for changes to be made to Korean policy. If this issue was seen only as a technical issue, it would not receive the attention of the Korean anti-trust officials, who have acted in the past.

While we do not know yet if the KFTC will move forward with additional investigations into this issue, I’d like to take a moment to thank everyone who has worked hard to bring the issues around browser choice, the de-facto monopoly of browsers in Korea, and open standards in Korea to the current position. To Dr. Keechang Kim and the Open Web team, I offer my gratitude and support. To the web developers in Korea who are slowly but surely moving towards open standards and valid HTML, especially the team at (popular Korean portal) Daum, who have a valid home page, your efforts are being noticed. Mozilla supports the open web everywhere, especially in Korea where there isn’t a choice at the moment.

NYTimes on Naver

Thursday, July 5th, 2007

This article isn’t news to anyone who reads this blog- basic information on why Naver has over 70% of the market in search in S. Korea.

NHN, which employs 27,000, is now the most profitable Internet company in South Korea. The company posted 299 billion won, or $325 million, in profit on 573 billion won in sales last year. It has a market value of more than $8 billion.

South Koreans Connect Through Search Engine

update on Korean browser monopoly

Monday, June 4th, 2007

I’ve written in the past about the browser monopoly in South Korea. Korea University’s Keechang Kim has been working with other concerned volunteers to force the Korean government to support more than 1 browser. The recent news is that their efforts are bearing fruit. There’s still a long way to go, and user behavior won’t change overnight, but the foundation for support for more than 1 browser is being laid.

MS Web Browser Monopoly Weakens [koreatimes.co.kr]

anti-trust investigations of 6 South Korean portals

Thursday, May 10th, 2007

I’ll be keeping my eye on this news coming out of Seoul.

Wed May 9, 7:18 AM ET SEOUL (AFP)

The Fair Trade Commission (FTC) started the inquiry into six operators including NHN Corp, Daum Communications and SK Communications Co, Yonhap news agency said.

NHN officials confirmed that officials came to their offices. “It is not targeted at a few portal operators but the whole industry,” a NHN spokesperson was quoted as telling Yonhap.

FTC officials declined to comment, saying they will hold a press conference Thursday.

The six are suspected of fixing prices for advertisements and imposing a ceiling on payments to content providers.

SKorea’s Internet portal operators under anti-trust probe

Global Web Technology Workshop

Monday, March 19th, 2007

On the same weekend that my colleague Vladimir Vukićević was wondering about exactly how secure transactions happen over the Internet in South Korea, South Koreans gathered together to discuss the future of the web in Korea and how Korea’s domestic ActiveX problem (discussed in a previous post of mine) could be solved.

Channy Yun writes in to let us know that the Global Web Technology Workshop, held by the Future Web Forum in Seoul, Korea on Mar. 16 was very successful with over 200 attendees and sponsorship from Microsoft Korea, Mozilla Corporation, and Opera Software Korea.

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Global Web Technology Workshop - a photoset on Flickr

Mr. Channy Yun gave Firefox-based presentation using S5 and tab browsing. He spoke Firefox has played important role in emerging web as like Web 2.0, Ajax and IE 7 and user-driven innovation based on GreaseMonkey and Extensions. He emphasized Mozilla is open source community to lead Web as public resources in view of the neutral platform. It means that its activities are for all browsers not just Firefox. Also he introduced Firefox 3 supporting off-line application platform, Javascript 1.7, SVG and CSS3. Also some of useful HTML5 spec. of WHATWG were very impressive for web developers.

After the presentations by the speakers, there was a panel discussion on the Korean status quo including:

. . . domestic Active X issues and how to solve that problem. All agreed that alternative technologies must be offered and the social and legal changes are essential. According to postscripts of attendee in blogosphere, they could recognize the trend of global web technology and the way for Korea to go in future.

When I came away from Korea last November, having seen the situation first-hand, I was not optimistic. Now, having read Channy’s report, where the attendees and the Korean blogosphere recognize that technology is not the core problem (it may have been initially) but that social and legal changes are critical, I am more hopeful. It doesn’t mean that any future transition to a more standards-based system will be easier, but it’s a recognition of the fact that social and legal changes are as important, and often not as easily implemented, as technology solutions.

I think that a truly open web (where no one is restricted by the operating system or web browser one chooses) in Korea is still a few years in the future, but that goal is now more clearly visible, tangible to the people who want it.

Finally, I’d like to thank Channy, the tireless promoter of web standards in Korea and the main localizer for Firefox in Korea. It is people like Channy who make the Mozilla community so amazing.

Future Web Forum, Seoul

Sunday, March 18th, 2007

I can’t read Hangul unfortunately, but it looks like the Future Web Forum event in Seoul, Korea on Friday, March 16th was well-attended. I hope to hear more details of the event soon.

Korean Global Web Technology Workshop supported by web browser vendors.

(Mar. 8, 2007, Seoul, Korea) The Global Web Technology Workshop will be held by the Future Web Forum (FWF) on March 16 at the Textile Center Bldg. in Samsungdong, Seoul, Korea. The FWF is a web expert group for the adoption of global web technologies and standards within the Korean web industry. The FWF consists of experts with over10 years of experience in Microsoft Korea, Apple Korea, Opera Software Korea and Web Standards.

This event is officially supported by Microsoft Korea, Mozilla Corporation and Opera Software Korea. In this workshop, Mr. Channy Yun of the Mozilla Korean Community will speak about Firefox 3 and rich web applications as well WHATWG activities. Mr. Goodhyun Kim of Microsoft Korea will speak about Windows Vista and WPF/e. Mr. Suyong Wang of Apple Korea will explain the Safari Browser and the difficulties Macintosh users have on the Korean web environment. Finally Mr. Manyoung Cho of Opera Korea will introduce the Opera browser, Opera Widgets and Opera’s web standards evangelism efforts.

In a panel discussion, these experts will discuss the trends of global web technologies and the Korean situation caused by ActiveX incompatibility issues on Microsoft Windows Vista after each presentations. They will become this issue in view of outsider and global terms show screen casts of examples in internet banking and e-governments site in abroad.

This event will be helpful to explain global standards and the abnormal situation of the Korean Internet to decision makers in the Korean government and the Korean IT industry. The event is free. Those interested can register at http://event.futurewebforum.org. (Mar. 7, 2007)

미래 웹 포럼 :: 글로벌 웹 기술 워크샵 후기

March 16th, Future Web Forum, Seoul

Thursday, March 8th, 2007

For anyone who is interested in the future of web browsers and web standards in Korea, Mozilla is co-sponsoring an event in Seoul on March 16th which is free to attend.

(Mar. 8, 2007, Seoul, Korea) The Global Web Technology Workshop will be held by the Future Web Forum (FWF) on March 16 at the Textile Center Bldg. in Samsungdong, Seoul, Korea. The FWF is a web expert group for the adoption of global web technologies and standards within the Korean web industry. The FWF consists of experts with over 10 years of experience in Microsoft Korea, Apple Korea, Opera Software Korea and Web Standards.

미래 포럼 :: 글로벌 기술 워크샵 (3/16)

the cost of monoculture

Tuesday, February 27th, 2007

(This is a repost of a post from my personal blog.)

What would you say if I told you that there was a nation that was at the forefront of technology, an early adopter of ecommerce, leading the world in 3G mobile adoption, in wireless broadband, in wired broadband adoption, as well as in citizen-driven media. Sounds like an amazing place, right? Technology utopia?

Wrong.

This nation is also a unique monoculture where 99.9% of all the computer users are on Microsoft Windows. This nation is a place where Apple Macintosh users cannot bank online, make any purchases online, or interact with any of the nation’s e-government sites online. In fact, Linux users, Mozilla Firefox users and Opera users are also banned from any of these types of transactions because all encrypted communications online in this nation must be done with Active X controls.

Where is this nation?

South Korea.

UPDATE: photo of Korean Hangul keyword search visualization seen at Naver’s lobby.

Naver_4004.JPG

I traveled to South Korea last fall to learn more about the South Korean Internet market and came away disappointed and frankly stunned.

I met with leading businesses in the search market, the music download market, the games market and all reported the same situation- a monoculture of users using MS Windows. The S. Korean market is in a unique situation where decisions made long ago have created a consumer monoculture which is having unintended repercussions that are affecting anyone with a computer in South Korea. It is a fascinating story because it is true.

The history goes back to 1998, when the 128 bit SSL protocol was still not finalized (it was finalized by the IETF as RFC 2246 in Jan. ‘99.) South Korean legislation did not allow 40 bit encryption for online transactions (and Bill Clinton did not allow for the export of 128 bit encryption until December 1999) and the demand for 128 bit encryption was so great that the South Korean government funded (via the Korean Information Security Agency) a block cipher called SEED. SEED is, of course, used nowhere else except South Korea, because every other nation waited for the 128 bit SSL protocol to be finalized (and exported from the US) and have standardized on that.

In the early years of SEED, users downloaded the SEED plugin to their IE or Netscape browsers, either an Active X control or a NSplugin, which was then tied to a certificate issued by a Korean government certificate authority. (Can you see where this is going?) When Netscape lost the browser war, the NSplugin fell out of use and for years, S. Korean users have only had an Active X control with the SEED cipher to do their online banking or commerce or government.

So we end up in 2007, 9 years after SEED was created for Korean users, and one legacy of the fall of Netscape is that Korean computer/Internet users only have an Active X control to do any encrypted communication online. So in late 2006, a group of Korean computer/Internet users, Citizens Action Network at Open Web Korea, having documented the problem with accessibility of sites via anything other than Microsoft IE, have decided to sue the Korean government.

It gets worse.

Remember how Active X controls were and continue to be a significant vector of viruses and malware because Microsoft originally architected Active X to run by default instead of with a user action? Maliciously programmed websites would be able to automatically install software on users’ computers just by visiting a web page in IE 6. In IE 7 and in Vista, Microsoft has re-architected Active X controls in such a way to make them “more safe” by requiring a user action for the control to run. This is obviously impacting every web site and company that uses active X controls on their websites, which include just about every website in Korea that handles any kind of secure transaction. Every online bank, every governmental agency, every ecommerce site. Without enough time to re-architect Korean websites, 3 S. Korean governmental ministries, the Ministry of Information and Communication, the Ministry of Government Administration and Home Affairs, and the Financial Supervisory Service, warned S. Korean users that upgrading to Vista would disable the user from making any secure transaction online. Can you imagine spending thousands of dollars on a new machine (because the requirements of Vista generally require new hardware) and a new OS from Redmond only to be locked out of any secure transaction online? It’s Kafkaesque.

To add insult to injury, the monopolist who absolutely controls the Korean market for computers won’t delay the launch of Vista to alllow for Korean websites to re-code their sites. “We’ve been testing Vista with banks and other service providers since September, but we encountered more delays than we expected. We plan to release the product as scheduled.

Absolutely incredible.

A related problem is that KISA and Microsoft announce “plans to work together to improve computer security awareness” or “mark anniversary of cooperation with renewed pledge” when in fact the situation in 2007 is no better than it was in 2003 when KISA decided to “work with Microsoft.” I can’t tell who is the fox and which is the hen house, but either way, the two should not be near each other.

Another part of the Korea story that I cannot comprehend are articles about Linux in Korea. The Korean Army considering Linux. Kwangju City as “Linux City.” If the Korean Army or Kwangju city cannot do any encrypted communications because their operating system of choice does not work with Active X controls, I’m not sure if this is hype or confusion.

To get the most depth and perspective on this topic, from the people in Korea who are suing the government, it’s best to read the documents at Open Web Korea.

This issue with the launch of Vista and IE 7 and the work of thousands and thousands of web programmers in Korea who are feverishly working to reprogram their sites to work with Microsoft’s new standards - do they realize that their efforts only bring them back to square 0 - there’s no more heterogeneity in the Korean Internet market post-Vista than pre. The problem for Korean websites wasn’t competition from MSN Korea, it was their sole dependence on infrastructure from Microsoft.

Korea will only get beyond this problem by 1) applying Korean laws on open standards to the certificate authorities, 2) reassigning new certificates which work with open web standards to all Koreans, 3) reprogramming all Korean websites to support 128 bit SSL which will allow for a heterogeneous marketplace of operating systems and web browsers. This is a herculean task and thus Korea stays hostage to Redmond.

Fascinating history. Unintended consequences and de-facto monopolies create costs too high to calculate and must be borne without question.

RELATED READING: the seminal report “CyberInsecurity: The Cost of Monopoly,” and the related eWeek piece profiling Dan Geer, “IT Wrestles with Microsoft Monoculture Myopia” which goes over this same topic from a different but related perspective.

Via Anil Dash.