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Bridging the gap: East vs West Internet

NHN quietly hitting the US market via games...what else is coming?

         

GrendelKhan TSU

12:29 am on Jul 25, 2006 (gmt 0)

10+ Year Member



South Korean Internet game giant targets US market (AFP)

South Korea's top online video game website announced plans to become a player in the US market this year...

NHN Corp. revealed that it discretely set up shop in Mountain View, California, the home turf of Internet juggernaut Google, and planned to roll out game and search services targeted at computer users 18 to 34 years old.

article [news.yahoo.com]

This is actually significant news (at least for me, being from this neck of the woods). :p so bout time for a GrendelKhan rant and rave (dum dum dum! you've been warned)!

The NHN footin in US, is bodes very well for NHN (ie: Naver . com, Korea's number one portal and search engine... outclassing and outdoing all other portals and search engines here, including Google Korea and Yahoo korea here by FARRR--for those that don't know) and even more so for the "Korean Internet" making its way out in the rest of the world. (side note: NHN DID try this before years back...AND FAILED. but that was obviously just waaaay too early--market wasn't ready, but now.. I think they will make good ground).

I've been periodically reporting on K internet for years, and I think those on the English speakin are slowly but surely starting to getting a taste of what I've been talking about. ;)

Cyworld mini-hompies (also the myspace inspiration imo) have gone stateside, portal styles and set-ups have gone stateside, Knowledge search has gone stateside (aka yahoo answers), individual K gaming styel sites have gone stateside, maybe other web 2.0 stuff already popular here will (like newly launched "Blinks" services and perhaps Korean style advertising methods--keyword shop anyone?)...

It is a two way street..it's just interesting that I am finally starting to see a flow BOTH directions (not just US to Korea):

Blogs was a US thing that was taken to the next level here (much much more media rich and slick here), PPC (launched by Zingu . com) was imported in portals and has now taken root here, pay per call has some serious next level apps here (though I don't think this this was mirva inspired), affiliate programs are starting to have strong followings (no this is NOT common thing here as it seems elsewhere), and I been thinking for a while that wiki has big potential here (as good as non-existent here).

Japan and Korea have seemed to mirror eachother (as much as they have distinguished themselves from each other) in the "internet" world... but I think its still easier to draw a line between east vs west rather compared to Korea vs Japan in this case (bill?)

China seems a bit more wide open in terms of ...everything, so its tough to tell where that will go. It seems like a sponge of both internet tech influences from Korea and US to me (and google has a strong footing there (where it has failed miserably as of yet in Korea)--perhaps because of the Hong Kong "western" factor. (?) Still, the culture is obviously much more attuned to Korean style and thinking ... eg: Korean phenomenon Cyworld had Chinese launch to the tune of like 10,000 new members day or something ridiculous like that.

That said....
It surprises me though how much of a "iron curtain" (to use the old analogy) there is STILL between the KOrean internet (in particular) and the rest of the world. This means a lot of opportunity and stuff to come (yay), but a long way to go to get everyone on the same page (boo).

I will say straightout... Koreans are, in general, pretty blind to what is going "outside korean internet" until portals introduce it here. And from what I can tell, the same is true in reverse... no one knows what is going on until a Korean company gets big enough to take it to the English speaking world. A shame for both sides as there are truly cool things coming outta both.

US (english world) seems to be overall (to over simplify) more "marketing" and conservative in its internet products and services where Korean stuff is very much on the slick, cutting edge, web 2.0 or visual/media rich end of things. Yup that's a generalization, but again, one that seems to fit the bill more often than not.

** I'd be interested what other WebmasterWorld people focused on Japan and China see as the "broad strokes" difference betweeen their markets and the "english speaking" markets are. Do they serve and crossover well? Cause it doesn't here. **

Granted, I think one of the reasons you get such interesting "stuff" out here is because of this "wall". Korea internet has developed so independently and with a blind's eye toward what is going on elsewhere... that K internet has actualy come up with its own unique feel, identity, offerings and technologies.

And now...with the right mixture of patience, globalization, policy, luck and the stars are aligning, and whatnot, these services are actually distinguible and viable outside the Korean internet walls. (Hey I've said it a thousand times... if any internet company...heck any company, wants a great test market for benchmarking the rest of Asia and then the rest of the world .. Korea is the perfect place. no doubts.)

Sophmoric as the analogy may be, from where I sit, the internet horizon is just another classic version of the old "East meets West" (and vice versa) tale. As one starts opening up into the other... both sides are up for some exciting opportunities (as well as rude awakenings), as is always the case, when "world collide". So, those in the biz of playing the middle at the right place and at the right time.... I'd bet a good horse, you are going to find nowhere else better to be. ^_^''

-so sayeth GrendelKhan{TSU}.

bill

1:29 am on Jul 25, 2006 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member Top Contributors Of The Month



Thanks for the interesting insight Grendel.

I don't really have the time to go into a detailed analysis now, but I could throw out a few quick points.

My impression from Japan is that there is a lot of catch-up being played here. The Japanese know that they were behind the curve on the whole internet thing and that thinking still persists. This is despite the fact that Japanese broadband quality and number of connected netizens outstrips the US (relatively speaking).

Blogs have taken off in Japan on a large scale. It seems like there was a whole untapped market for this that blossomed overnight. The Cyworld style mini-hompies are also booming. This is a lot of technology that is imported though.

Language always is a factor, and with Japan even lower down the totem pole in terms of English language ability among Asian countries you do see that barrier here as well. Anything that hasn't been translated into Japanese remains an unknown for the majority here. This limits the introduction of a lot of cutting edge stuff. The tried and true (i.e., profitable) does find it's way here the quickest.

LifeinAsia

3:52 pm on Jul 25, 2006 (gmt 0)

WebmasterWorld Administrator 10+ Year Member Top Contributors Of The Month



Hey Grendel!

affiliate programs are starting to have strong followings (no this is NOT common thing here as it seems elsewhere)

Interesting- the concept seemed to be way too foreign to most Koreans for so long. Back around 2001 I believe, we took a rep. from Commission Junction around to several of the big Internet players at the time. They wanted to get into the Korean market and were looking for a local partner. Everyone we went to was pretty much *yawn*. They just didn't get it or see the huge potential of affiliate marketing. Some individuals could definitely see it from the publisher side. But the attitude of advertisers was basically "Why would I want to pay someone to promote my products?"

Korean stuff is very much on the slick, cutting edge, web 2.0 or visual/media rich end of things.

I'd definitely agree. So much is often form over function.

Another aspect is the e-government side of things. Gangnam-gu has been making huge strides in e-government, with officials from around the world flocking there to learn what they're doing. (At least according to the press releases we've been translating for them. :) )

And yet, despite the huge strides Korea has made in Internet usage and infrastructure, there still remains a huge dichotomy in many fields. I'll be the first to admit that Korea's tourism business has long been way behind the technology curve (despite travel leading many e-commerce advances in other areas), but in some ways it's falling further behind the curve. Many of the same hotels that have all their rooms wired for high-speed and/or wireless Internet do not provide Internet access to their employees- they still require reservations to be faxed to them.

GrendelKhan TSU

2:58 pm on Jul 26, 2006 (gmt 0)

10+ Year Member



more on the NHN game portal opening in the US

Before NHN, several other South Korean game companies like NCSoft and Webzen have been increasing investment in the United States. But NHN’s portal is the first one to open a game portal Web site while other firms have focused on selling packaged games.

In South Korea, NHN is not only the largest but also the most profitable Internet company. In the first three months of the year, it reaped 46.5 billion won of operating profit in sales of 121.8 billion won. The company expects 510 billion won of annual sales with 190 billion won in operating profit this year from its businesses in South Korea, Japan and China.

---

now I've had a chance to check it out. The beta version of the site actually launched a couple weeks ago. I think its down right now.... but if its ok I can post the url. (I forget...bill?)

My thoughts? Maybe I've been in Korea too long but... I think its great. Its sooo very Korea slicked up in many classic ways (see my other posts on Korean design), but definitely enough crossover appeal to do well, imo. Plus, its different. Definitely not like other US based game sites. Most importantly, the games are fun, unique, great replay value with the incentive system, slick anime styled (if cutsy) and "clean" and "innocent" as opposed to a lot of crap and fairly violent or twisted (imo ;)) flash games you see on many flash game sites.

users already seem to agree...

In only 10 days of service, the number of peak-time users at ijji.com has increased to several thousands,’’ said a public relations manager, though she didn’t give exact number. The date for the official launch is yet to be decided, but it will be done within this year anyhow.

Aslo, wayyy more fun little things to do including a pretty robust "tottoli" (acorn) or upgrade avatar and decoration item shop (classic korean community site feature). The avatar decoration system is actually pretty robust for a beta and already puts yahoo's to shame (imo). And the screenshot share and forums system style is direct page outta all the korean forums handbook. Minimalist and clean, one lined. I even know what they built it based on. ;)

Overall, its got the "cutsy" anime styling of Asian sites in lieu of the "cool and dark" sites of most gaming sites you see in the "West". But for these kind of games, that works much better. These aren't Halo Xbox339857349578 or PSv999999898 games. These are flash games that ANYONE can get into instantly.

There is also definitely more "stuff" than you'd see elsewhere around US sites (at least from what I've seen). I could see myself getting myself addicted a few of the games. lol. (doh! I didn't say that). The more you play, the automatically higher your rank and points gets. and I imagine the more "acorn items" (or whatever they call it stateside) you'll be able to buy down the road.

The thing really I'm wondering about is the effect of the INSTALLS that are required to play the games. I don't think its an ActiveX plugin, but you definitely have some serious installs to play a lot of the multiplayer games.
How that will work with Firefox I have no idea yet (haven't had change to test it with FF yet)...but its another classic example of the Korean internet pysch. that is, slap whatever installs on you want cause kreoans install indiscrimintely... big problem with lots of mal/adware :/ and who cares about cross browser compatability. FireFox? what's that? (as I've said before my site had over 100,000 visitor before I had ONE firefox visitor. and I think that was me testing something on another computer. lol).

anyway....
I think this thing has big potential. I've made a few "trend" calls before...

I'll go out on a limb on this one (as its VERY early), but I don't see why it WON'T do well. Fun, original (in its application stateside), interactive, creates nature loyalty, and scalable.

Yahoo is about the only one I would think has chance at doing the same since they have the knowhow and do it korea... but I think there is still way too much beauracracy between Y Korea and Y corporate for this to happen anytime soon. They seem busy with their new search stuff anyway. lol :p

go NHN!

bill

4:31 am on Jul 27, 2006 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member Top Contributors Of The Month



now I've had a chance to check it out. The beta version of the site actually launched a couple weeks ago. I think its down right now.... but if its ok I can post the url. (I forget...bill?)

I don't see a problem with that. It's a beta portal from NHN, right? That's within the bounds of the conversation and could be interesting for some. Go ahead (I can always snip it later).

GrendelKhan TSU

4:50 am on Jul 28, 2006 (gmt 0)

10+ Year Member



cool!

here ya go: www.ijji.com

ugh.. I was testing things....
and I got hooked on switcheroo game. :/ (that's kinda its own proof to me. lol). oh and their "acorns" are gems in this case. but all the same concept with upgrades, points, levels, items to decorate etc.

[edited by: GrendelKhan_TSU at 4:52 am (utc) on July 28, 2006]

GrendelKhan TSU

4:54 am on Jul 28, 2006 (gmt 0)

10+ Year Member



that's what I thought...
finally did a Firefox test and got this message:

"We are very sorry.
The game you have chosen can only be played with Internet Explorer."

o_0''

sorry FFers. not surprisingly.. seems Korean portals still don't think much of the new "trend".

GrendelKhan TSU

7:00 am on Aug 10, 2006 (gmt 0)

10+ Year Member



along this tthread topic: what else is coming?

Cyworld launches in US [webmasterworld.com]

step-by-step. :) ;)

and this isn't internet per se..but its related and its significant.

Samsung's WiBro technology will be used for building a U.S. broadband mobile network, setting a milestone in Korean telecommunication industry history to export a network infrastructure to the United States.

Samsung Electronics Co. made a strategic alliance with Sprint Nextel, Intel and Motorola to develop and commercialize the next-generation wireless technology based on Mobile WiMax in New York yesterday (Korean time).

for those that don't know... WiBro, or Wireless Broadband, boasts internet speeds of 2-3 mbps while the user is moving at speeds of up to 120 kilometers per hour, was first launched in Korea in June by KT Corp. and SK Telecom Co.

that matches exceeds most regular plans Stateside if I recall correctly. maybe now silcon valley can actually get broadband. lol :p

[edited by: GrendelKhan_TSU at 7:14 am (utc) on Aug. 10, 2006]