AOL IN KOREA
Subscribe to FREE
e-mail Newsletters
Search News
Search all of internet.com
News Sections:
Business News
E-Commerce News
Finance News
International News
Intranet News
ISP News
Product News
Web Developer News
Stock Report
Advertising Report
InternetNews Radio
InternetNews Staff
Get Stock Quote
• Current ISDEX
• My Portfolio
internet.com
Internet News
Internet Stocks
Internet Technology
Web Developer
Internet Marketing
ISP
Downloads
Internet Resources
International
Search internet.com
Advertising Info
Corporate Info
Internet Trade Shows
internet.commerce
Be an Affiliate
Software
Travel
Banking
e-solutions
Internet Jobs
A/V Network
Scheduling
e-Mailing Lists
Books
Find an ISP
International News
AOL To Enter Korea's ISP Market
Next Year
April 2, 1999
By the InternetNews.com Staff
International News
Archives
America Online will make its debut in the Korean market next year by joining
forces with Samsung Corp., posing a threat to local online networks which
have been enjoying energetic growth in recent years.
AOL, the world's largest online service provider, has reached an agreement
with the Korean conglomerate to form a strategic alliance to launch AOL
service in Korea starting early next year, according to a Samsung spokesman.
He said that the American giant would establish AOL Korea in a joint venture
with Samsung Corp. and that the two companies will iron out details about
when their representatives meet in Washington, D.C. later this month.
The collaboration between AOL and Samsung will cover a wide range of
fields, including online information services, group e-mail service, Internet
shopping mall and contents. AOL will offer online service, Internet marketing
and various Internet-based technologies for the projected venture, the official
said.
AOL Vice President Neil Davis told reporters in Seoul that Asia has the
greatest potential for Internet businesses, noting that it is vital for AOL to enter
the Asian market to maintain its leadership in global online service business.
Korea will be AOL's third partner country in Asia after Japan and Hong
Kong.
"If America Online launches its operation in Korea next year, the already
crowded local online service market will probably be overheated," said an
industry analyst. "However, consumers would benefit from AOL's entry into
the market wide wider choice."
Currently, there are six major online information services in Korea. They
include Chollian, Unitel, Netsgo and Hitel.
And competition between them are heating up as they cut rates in a desperate
bid to attract more subscribers. Industry observers say that such competition
will result in slimmer profits for them.
Most local online service providers are spending more money on attracting
subscribers through advertisement and other marketing activities, rather than
on expanding facilities to provide users with better service.
Last year, Korean's online communications service providers enjoyed a rapid
growth in both sales and the number of subscribers. They posted a sales
increase of 30 percent on an average during 1998.
The number of their subscribers totaled around 5 million, showing a 40
percent increase from a year earlier, according to statistics from the Ministry
of Information and Communication.
Chollian, an online service of Dacom, the market leader, has 1.43 million
subscribers. Hitel of Korea PC Telecom and Unitel of Samsung Data
System(SDS) have 1.18 million and 1.12 million, respectively.
However, some analysts point out that such a growth is not more than an
outward growth, still there are many things to be improved in terms of service
quality and user environment.
Most of their subscribers access the online service through modem and have
to pay expensive local call charges, which is not a flat monthly rate. For this
reason, users can hardly enjoy online information services and the Internet as
much time as they want.
Go to a printable version of this
story
Today's Headlines
Top International News
Stories
•
Repubblica.it Ranks #1 Among
Online Reading
•
Compaq To Open ERP Center In
Taipei, Host Forum In Tokyo
•
Canadian ISP Group Files Second
Petition Against Bell Canada
•
Study: Latin American Internet Users
Ready For E-Commerce
•
Interpublic Invests in Icon Medialab
More International News
Top InternetNews Stories
•
Network Solutions Quietly
Implements New Registration System
•
Key Leader of Netscape's Open
Source Effort Resigns
•
Suspected Melissa Virus Creator
Caught
•
Prodigy Gets Competitive With
Pricing, Usage Plans
•
PointCast Buyout Talks Stall,
Employees Laid Off
More InternetNews
Copyright 1999 internet.com LLC
All Rights Reserved. Legal Notices
|
