I called Lee Joo-young, president of Tae-woo Telecom, to the vice chairman's office.
He looked exhausted, probably because he was in charge of all matters related to the iPhone launch.
"How is the iPhone launch progressing?"
"From supply to sales, there are no problems. But other telecom companies are trying to impose restrictions."
"Of course KS Telecom wants to block it. If Tae-woo Telecom starts exclusive sales of the iPhone, KS Telecom's market share will definitely shrink."
"There are rumors that telecom companies, including KS Telecom, are teaming up with Samsung Electronics. And there are talks that the newly established Korea Standard Mobile Platform (WIPI), set to launch in July, will impose regulations to block foreign phones' entry into the Korean market."
This was the very reason I pushed to advance the iPhone's launch date.
The moment the so-called WIPI law is enforced, launching the iPhone in Korea will become impossible.
WIPI was created to solve the incompatibility problem caused by various platforms used by different telecom companies since phones weren't compatible.
And every phone sold in Korea was required to have WIPI installed.
That was why the iPhone's release was delayed by three years after its initial launch overseas.
"WIPI is a platform applied only to portable devices, right? The iPhone needs to be registered as a smartphone, not just a portable device, to be exempt from WIPI."
"We expect strong opposition from other telecom companies. As you know, they earn huge profits from telecom charges... Tae-woo Telecom is the same. Once wireless internet phones come in, their profits will significantly decrease."
The reason telecom companies were blocking the iPhone was simple.
They couldn't collect internet data usage fees.
Who would pay for expensive internet data once phones with wireless internet became common?
Moreover, they wouldn't get commissions either.
Currently, when downloading music, telecom companies take a commission.
But with the iPhone, downloads occur through its own app, leaving no chance for commissions.
"After the iPhone, all phones will definitely have wireless internet. The global trend cannot avoid Korea. If Tae-woo Telecom sells the iPhone first, it will create a good image among customers and may attract customers from other telecoms."
"Telecom companies are a problem, but there's also opposition from Samsung Electronics and CL Electronics."
Samsung and CL Electronics also participated in the CES held in January.
So, of course, they must have seen the iPhone announced by Steve.
They intuitively knew that the moment the iPhone entered Korea, their products would be pushed out.
"So now the telecom companies and electronics manufacturers are joining forces."
"Moreover, they stayed quiet until just a month before the iPhone launch and are now moving. Their intention is clearly to prevent us from having time to respond."
Is this a telecom cartel?
Among Korea's top 10 conglomerates, all but us had formed an alliance.
No matter that Tae-woo was the top business group, it was insufficient to win against a conglomerate alliance.
"We must nullify the mandatory WIPI installation regulation at all costs."
"We'll do our best to wield influence in the political arena."
"The Broadcasting Commission is in charge of the regulations, so target them. Or better yet, I will attend the meetings myself. Let me know when telecom roundtables are scheduled."
"There's a roundtable planned for this Friday. I'll try to make contact with people in the Broadcasting Commission before then."
We had set a festive table, but now it looked like the party might not happen.
It would be good if the problem was resolved through the roundtable.
But the telecom cartel was likely to interfere and obstruct until the very end.
If the party couldn't be held, we would have to resort to very extreme measures.
The roundtable held by the Broadcasting Commission.
The official name for this roundtable was the "Roundtable for the Special Subcommittee on Mobile Platforms."
The meeting was intended to promote the development of the increasingly dominating mobile market, but in reality, it was to protect the interests of telecom companies.
"Today, there are many new faces. Haha, I'm very grateful for your strong interest in the mobile platform."
Chairman Kang Daegi said with a satisfied smile.
The chairman of the Broadcasting Commission held ministerial-level authority and could exert power over telecom companies.
That was why everyone responded with applause to his words.
Vice presidents of Samsung Electronics and CL Electronics, the president of KS Telecom, and others.
They were all renowned figures in the business world but became meek in front of the chairman.
"As you all know, in July, the Mobile Platform Subcommittee will be newly established. How inconvenient it is that phones aren't compatible with each other, right? Moreover, each telecom company has to develop its own platform, meaning multiple-fold development costs. How great would it be if we all created and used one platform together?"
It seemed the chairman had already been persuaded.
He showed a very favorable attitude toward WIPI.
If I stayed silent, the meeting would just end like this, so I had to speak up.
"It's impossible for WIPI to manage all phones. How about only allowing companies that want to install it to use it?"
"So Vice Chairman of Tae-woo Group is attending the meeting in person. Very glad to see you. But it seems you're against WIPI?"
"I'm not against it in general. But I oppose mandatory installation regulations. How about implementing installation regulations only after confirming WIPI's stability?"
If I pushed too hard here, I would become disliked.
So instead of outright opposing WIPI installation regulations, I used a strategy to delay it.
"I understand the telecom companies' positions well. They want to make it advantageous for themselves. That's why the government is stepping in. Surely you don't distrust the government?"
"It's not that I distrust the government, but I want to prevent the chaos caused by sudden regulations."
"I guess it's the iPhone produced by Apple they're opposing."
Vice President Lee Tae-gon of Samsung Electronics interrupted.
Lee Tae-gon was in charge of the mobile division at Samsung Electronics and was a legendary figure in the mobile phone industry.
Whenever he stepped in, everyone usually took a step back.
But what did I have to be intimidated by?
If the vice chairman of Tae-woo Group got pushed aside by just a vice president, grandfather would have been furious.
"So, does Samsung Electronics support the introduction of WIPI to keep the iPhone in check?"
"In check? No! We support WIPI for the greater cause of developing the Korean mobile market."
The vice president of Samsung Electronics was just getting started.
Vice presidents from CL Electronics and other telecom company representatives began to chime in one by one.
"WIPI is essential even for the development of domestic mobile phones. Once foreign phones dominate the domestic market, electronic companies will suffer greatly."
"Wireless internet is still premature."
"The problem is simply that foreign phones need to use WIPI too, isn't it?"
It was as if they had a script.
They were a telecom cartel delivering their lines like actors.
Even the chairman of the Broadcasting Commission sided with them.
"Hmm, all companies except Tae-woo support it. But that doesn't mean I'm going to ignore Tae-woo's position. I will give you the opportunity to participate in creating WIPI."
The chairman spoke as if he was granting a favor.
They opposed mandatory WIPI but still said they would let Tae-woo participate in its development.
Not as a joke.
"I think mandatory WIPI introduction is premature. It's not too late to proceed after more discussions."
"Hmm, at this rate, the meeting won't end. We'll check the votes and conclude today's meeting."
What was the point of voting?
Everyone except Tae-woo was on the same side.
"Who supports mandatory WIPI?"
Every hand went up except mine.
There was no need to ask for opposition.
The roundtable ended without any gains.
After the roundtable, I returned to the company.
The chief of planning was waiting for me at the door, and upon seeing my face, he spoke quietly.
"Did things not go well?"
"Since Samsung Electronics is leading, the cartel is very solid."
"It doesn't seem easy to move the Broadcasting Commission. No company supports our side, so the Broadcasting Commission appears powerless."
Had I been too naive?
I thought I had fully prepared for the iPhone launch.
I even acquired Tae-woo Telecom in case the telecom cartel refused to distribute the iPhone.
And having made Tae-woo Telecom the number one in market share, I judged we could handle most problems.
But the telecom cartel wasn't scratched that easily.
With Samsung Electronics and CL Electronics also checking us, there was no solution.
The political world, the Broadcasting Commission, and telecom companies in Korea.
It wouldn't be an exaggeration to say the telecom cartel completely controlled the domestic mobile distribution network.
"Eventually, we'll have to use extreme measures."
"Do you have a plan?"
"It might turn Korea upside down, but there's no choice."
Leaving the inquisitive chief of planning behind, I headed to Captain Kang's office where Dimon and David were.
I told them about the telecom cartel, and they were visibly shocked.
"I didn't know the Korean telecom industry operated like that. You can't buy a phone without going through a telecom company?"
"That's unimaginable in the U.S. I thought you could just buy a phone at a store."
Most countries adopt the unlocked phone system.
Especially in the U.S. and Europe, phones are purchased directly at stores.
Only Korea had this phone sales structure dominated by telecom companies.
"The telecom cartel is too strong. At this rate, the iPhone launch in Korea is impossible."
"Isn't there a way? Like introducing an unlocked phone system?"
"Will the telecom cartel allow an unlocked system? They're even panicking over wireless internet."
"I'll meet with people from the Broadcasting Commission. If I can persuade even half of them, we might have a chance."
David confidently pounded his chest as he spoke.
How many problems had we solved through him so far?
I knew well of his abilities, but as long as the telecom cartel existed, persuading the Broadcasting Commission was difficult.
"If we push the Broadcasting Commission, they might retaliate."
"Then what do we do? Just stand by and take it?"
"That's not an option. If it's hard to solve things domestically, we'll have to resolve them externally. That's why, David, you should take a trip to the U.S."
"I'm ready anytime. Whom should I meet?"
The telecom cartel is obstructing me, huh?
Do you think you're the only ones with a cartel? I've built my own cartel for a day like this!
TL/n -
The WIPI Law refers to South Korea's regulation around the Wireless Internet Platform for Interoperability (WIPI), which was a mandatory mobile software platform standard introduced in the early 2000s. Here's the background and context:
What was WIPI?
WIPI (Wireless Internet Platform for Interoperability) was a middleware platform developed in South Korea around 2001–2002 by the government and industry groups.
Its purpose was to create a unified mobile application standard so that apps and content could run across different Korean mobile phones, regardless of manufacturer or telecom carrier.
At the time, South Korea's mobile market was fragmented, with each carrier (SK Telecom, KTF, LG Telecom) running its own proprietary platform. WIPI was meant to standardize the ecosystem.
The WIPI Law (2003–2009)
In April 2003, the South Korean government, through the Ministry of Information and Communication (MIC), mandated the adoption of WIPI on all mobile phones sold in Korea.
The law required that all mobile phones must support WIPI, in order to prevent foreign platforms (like Qualcomm's BREW or Japan's i-mode) from dominating the Korean market.
This effectively created a walled garden where only apps written for WIPI could run on Korean phones, protecting local developers and telecom companies.
Criticism and Issues
The law was criticized for stifling competition and keeping Korea's mobile ecosystem closed off from global trends.
When smartphones like Apple's iPhone and Google's Android started gaining traction worldwide (2007–2008), Korea was slow to adopt them because of the WIPI requirement.
This led to concerns that Korea, once seen as a leader in mobile technology, might fall behind globally.
Abolition of the WIPI Law (2009)
In April 2009, the South Korean government officially lifted the WIPI mandate.
This opened the door for iPhones, Android devices, and global mobile platforms to enter the Korean market.
Apple launched the iPhone in South Korea later that year, sparking a smartphone boom.
The removal of the WIPI Law is often seen as a turning point that aligned South Korea's mobile industry with the global smartphone ecosystem.
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The WIPI Law was initially well-intentioned — it helped local firms and telecoms grow during the feature phone era, and it kept the domestic mobile content industry strong. But in the long run, it showed the risks of over-regulation in fast-moving tech markets. Once abolished, Korea quickly caught up in the global smartphone race, with Samsung and LG becoming major players on Android.
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The WIPI law had a very direct effect on Apple, especially with the iPhone's entry into South Korea. Here's how it played out:
Delay of iPhone in South Korea
The first iPhone was released in 2007, and by 2008–2009 it was already transforming global mobile markets.
But in South Korea, the WIPI mandate required that all mobile phones sold in the country had to include the WIPI middleware.
Apple refused to add WIPI to the iPhone — it already had its own iOS ecosystem and wasn't going to adapt just for one country.
As a result, the iPhone was blocked from entering the Korean market until late 2009, two full years after its global debut.
Impact on Apple
Late Market Entry – Apple missed the crucial early adopter wave in Korea. By the time the iPhone launched in November 2009 (after the WIPI law was abolished), smartphones were already gaining global traction.
Samsung's Head Start – Samsung and LG were able to maintain dominance in Korea during those two years with feature phones and early smartphones. Samsung later leveraged Android (from 2009 onward) to fight back against Apple.
Weakened Early Market Share – When the iPhone finally launched in Korea, it quickly became popular, but Apple never gained the same market dominance in Korea that it enjoyed in places like the U.S. or Japan. Samsung retained the upper hand domestically.
Lost Ecosystem Momentum – Because iOS arrived late, many Korean developers initially focused on carrier-driven apps and later on Android, which limited the iPhone's app ecosystem strength in Korea compared to the U.S.
After the Law Was Lifted
In November 2009, the iPhone 3GS officially launched in South Korea. Despite the late start, it sold strongly, especially among young consumers who were attracted to its sleek design and the App Store's global ecosystem.
Apple quickly became a cultural trendsetter in Korea, but Samsung's Galaxy line (launched in 2010) was already positioned to counter it.
Today, Apple has a loyal following in South Korea (especially among younger consumers), but its market share has consistently been smaller than Samsung's — in part because the WIPI delay gave Samsung time to solidify its dominance on home turf.