CH143 | Heir

I summoned Lee Joo-young, the president of Taewoo Telecom, to the vice chairman's office.

Since he'd been in charge of everything related to the iPhone launch, he looked completely drained.

"How's the iPhone launch coming along?"

"There are no issues with supply or sales. However, other telecom companies are showing signs of trying to block the launch."

"Of course, KS Telecom would want to stop it. Once Taewoo Telecom starts selling the iPhone exclusively, their market share will definitely fall."

"There are rumors that KS Telecom and Samjin Electronics are joining forces. Also, the new Korean Standard Mobile Platform (WIPI) set to be introduced in July is said to be preparing regulations to block foreign mobile phones from entering the Korean market."

This was exactly why I'd been pushing to accelerate the iPhone launch.

The moment the so-called WIPI law went into effect, bringing the iPhone to Korea would become impossible.

WIPI had been created to solve compatibility issues between different platforms used by various telecom companies. Under the new regulations, every mobile phone sold in Korea would be required to have WIPI installed.

In my previous life, this ridiculous law had delayed the iPhone's Korean debut by three whole years.

"WIPI only applies to portable terminals, right? If we register the iPhone as a smartphone instead of a portable terminal, we can bypass the WIPI requirement."

"There will likely be strong backlash from other telecom companies. As you know, telecom companies make massive profits from data charges... Taewoo Telecom included. The moment wireless internet-capable phones hit the market, those profits will take a huge hit."

The reason telecom companies wanted to block the iPhone was simple — money.

With Wi-Fi-enabled phones, who would pay for expensive mobile data?

On top of that, they wouldn't even be able to collect commission fees.

Currently, whenever users downloaded music, the telecom companies took a cut of the revenue.

But with the iPhone, users would download content directly from Apple's own app store, cutting telecom companies out of the deal entirely.

"Every phone released after the iPhone will inevitably come with wireless internet. The world is moving in that direction — Korea can't stand apart from that trend.
If Taewoo Telecom becomes the first to sell Wi-Fi-capable phones, we'll leave a positive impression on customers. We might even poach customers from other telecom providers."

"The telecom companies are one thing... but both Samjin Electronics and CL Electronics are also signaling opposition."

Samjin and CL Electronics had attended CES in January.

They'd seen Steve Jobs unveil the iPhone with their own eyes.

It was obvious — the moment the iPhone entered the Korean market, their products would be swept aside.

"So the telecom companies are locking arms with the electronics manufacturers."

"They've stayed quiet until now, only making their move with just one month left before the launch — clearly to give us as little time as possible to respond."

A telecom cartel — that’s what this was.

Out of Korea's top 10 conglomerates, every single one except Taewoo Group had formed an alliance.

Even as the number one conglomerate, it would be nearly impossible for Taewoo to win against a united front like that.

"We absolutely have to neutralize the mandatory WIPI regulation."

"I'll try to exert influence through political channels as much as possible."

"The Broadcasting Commission oversees the regulation — target them first. Actually... I'll attend the telecom companies' conference myself. Let me know when the next meeting is scheduled."

"There's a conference planned for this Friday. I'll try to make contact with the Broadcasting Commission members before then."

We'd prepared the feast — but now someone was trying to stop the party before it even began.

If the issue could be resolved through the conference, that would be ideal.

But the telecom cartel would likely fight tooth and nail until the very end.

If they refused to back down...

I'd have no choice but to resort to extreme measures.

***

The Broadcasting Commission's Roundtable Conference.

The official name of today's meeting was the Special Committee Roundtable for Mobile Platforms.

On the surface, the conference had been convened to promote the growth of Korea's expanding mobile market — but in reality, its true purpose was to protect the telecom companies' interests.

“Today, I see many new faces in attendance. I'm truly grateful for your keen interest in mobile platforms.”

Chairman Kang Daegi of the Broadcasting Commission smiled in satisfaction.

The Chairman of the Broadcasting Commission held ministerial-level authority — a position powerful enough to lord over telecom companies.

Naturally, the room erupted into applause at his words.

Among the attendees were the Vice President of Samjin Electronics, the Vice President of CL Electronics, and the President of KS Telecom — all heavyweights in the business world.

Yet, in front of the Chairman, they all played the role of obedient lapdogs.

“As you're all aware, the Mobile Platform Committee will be officially established this July. Isn't it terribly inconvenient that mobile phones can't communicate across different platforms?
And developing separate platforms for each telecom company only drives up costs. Wouldn't it be much better if we all adopted a single unified platform?”

He must have been bought off already.

The Chairman's tone was practically dripping with favoritism for WIPI.

If I stayed quiet, this meeting would be nothing more than a staged show — rubber-stamping WIPI under the guise of discussion.

I had to step in.

“It would be impossible for WIPI to govern all mobile phones. How about making it optional — allowing only companies that wish to adopt WIPI to use it?”

“Oh, the Vice Chairman of Taewoo Group has graced us with his presence. What a pleasure.
But... it seems you're rather critical of WIPI, aren't you?”

“I'm not opposed to WIPI itself — only to the mandatory installation regulation. Wouldn't it be wiser to implement mandatory regulations after WIPI's stability has been verified?”

If I came out swinging, they'd simply label me a troublemaker and ostracize Taewoo Group from future discussions.

Instead, I played it strategically — not rejecting WIPI outright, but proposing a delay.

“The telecom companies' concerns are well understood. Each of them naturally wants to tailor the system to their own advantage. That's precisely why the government must intervene.
Surely, you're not suggesting that the government can't be trusted... are you?”

“It's not about trust — I'm simply trying to prevent the chaos that sudden regulations could bring.”

“Ah... it sounds like you're only opposing this because of the iPhone from Apple.”

That voice —

Lee Tae-gon, Vice President of Samjin Electronics.

He oversaw Samjin's mobile business division and was nothing short of a legend in the industry.

Whenever he stepped in, most people automatically backed down.

But what was there for me to fear?

If the Vice Chairman of Taewoo Group cowered before a mere Vice President, my grandfather would tear me to pieces.

“Then are you saying Samjin Electronics supports WIPI purely out of concern for the advancement of Korea's mobile market...
— and not to keep the iPhone out of the country?”

“Keep the iPhone out? No, no. We're supporting WIPI for the greater good of the Korean mobile industry.”

Bullshit.

Lee Tae-gon was just the first domino.

One after another, the cartel members joined the chorus — as if reading from a pre-written script.

“For the sake of the domestic mobile phone industry, WIPI implementation is essential.”

“Wireless internet is still too premature.”

“Foreign phones can simply install WIPI if they want to enter the Korean market.”

It was like watching a rehearsed play.

Even the Chairman of the Broadcasting Commission subtly nodded along — their puppet master in plain sight.

“Hm, so... every company except Taewoo Group supports WIPI. But don't worry, Vice Chairman Min-jae. We won't ignore your position. We'll give Taewoo Group the opportunity to participate in WIPI's development.”

He spoke as if he were offering me some grand gesture of goodwill.

What a joke.

We were trying to stop WIPI altogether, and here he was offering us a seat at the table — a seat at a table I wanted to flip over.

“I still believe mandatory WIPI installation is premature. Further discussions would benefit everyone before enforcing such regulations.”

“Hmm... at this rate, we'll never finish today's meeting. Let's settle this with a vote — we'll confirm the consensus and wrap things up.”

A vote?

What a farce.

With the entire cartel already on the same page, the outcome was as good as decided.

Everyone was in on it — except Taewoo.

"Those in favor of mandatory WIPI implementation?"

Click!

Without exception, every hand shot up — except mine.

There was no need to even ask for opposing votes.

With that, the roundtable ended — and I'd walked away with nothing.

***

I returned to the office after the meeting.

At the entrance, the Chief Strategy Officer was already waiting for me.

The moment he saw my face, he quietly asked,

"Things didn't go well, I take it?"

"Samjin Electronics is leading the charge — the cartel's stronger than ever."

"It'll be nearly impossible to sway the Broadcasting Commission. Without a single company on our side, there's little they can do to oppose the telecoms."

Had I been too naive?

I thought I'd prepared everything for the iPhone's launch.

I'd even acquired Taewoo Telecom to ensure distribution wouldn't be blocked by the cartel.

I poured resources into turning Taewoo Telecom into Korea's #1 carrier by market share, believing that would be enough to bulldoze through any resistance.

But the telecom cartel hadn't flinched.

With Samjin Electronics and CL Electronics backing them, they were practically impenetrable.

Politics.
The Broadcasting Commission.
Every distribution network in the country.

The cartel's grip on Korea's mobile industry was absolute.

"There’s only one option left... We'll have to go nuclear."

"Is there... a method?"

"There is — but if we pull this off... It might just flip the entire country upside down."

I left the CSO behind and headed straight to Captain Kang's office — where Dimon and David were waiting.

Once I explained the telecom cartel's stranglehold on the market, their eyes widened in disbelief.

"I had no idea Korea's telecom industry operated like this. You can't even buy a phone without going through a carrier?"

"In the U.S., that's unthinkable. Phones are sold at supermarkets like any other product."

Most countries followed the device-only retail model.

In the U.S. and Europe, buying a phone at a grocery store was common sense.

But in Korea, telecom companies had deliberately locked down the supply chain — controlling both networks and devices.

"The telecom cartel is airtight. At this rate, the iPhone's Korean launch is as good as dead."

"Isn't there any way to break them? What if we pushed for a retail device-only model?"

David's suggestion made sense — but he didn't know how rotten this country was.

"You think the cartel would just sit back and allow device-only sales? They're already terrified of wireless internet — they'll bury device-only reform before it even gets off the ground."

"Then what do we do? Just sit here and let them crush us?"

"Of course not."

If I couldn't break through from the inside...

I'd tear them down from the outside.

"David — you're going to America."

David's eyes sparkled with excitement.

"America? Sure. But what exactly am I supposed to do there?"

I leaned in closer.

"You're going to meet someone who can shut down WIPI before it even starts."

The only power greater than Korea's telecom cartel...

Was the U.S. Government.

"What if the U.S. government declared WIPI a violation of the Free Trade Agreement?"

David's grin stretched from ear to ear.

"A trade dispute? That's... brilliant."

"If the Broadcasting Commission won't listen to reason... We'll make them listen to the U.S. Department of Commerce."

 

TL/n –

During the mid-2000s, WIPI (Wireless Internet Platform for Interoperability) regulations became a controversial issue in South Korea. WIPI was a unified platform introduced to solve compatibility issues caused by each telecom company using different platforms. However, the mandatory adoption of WIPI for all mobile phones created a barrier to foreign mobile phones entering the Korean market — especially Apple's iPhone, which didn't support WIPI.

The Korean government made WIPI a legal requirement for all mobile phones sold in South Korea starting in 2005, citing the need for interoperability and security. However, in practice, the regulation was widely seen as a protectionist policy to protect domestic manufacturers like Samsung and LG from foreign competition.

How Samsung and LG Blocked the iPhone

At the time, Samsung Electronics and LG Electronics dominated the Korean mobile phone market, supplying both feature phones and early smartphones. These companies were suspected of lobbying heavily behind the scenes to maintain the WIPI mandate and delay the iPhone's entry into Korea.

The primary reason was simple: fear of competition.

When the iPhone was first revealed in 2007, its groundbreaking touchscreen technology and app ecosystem posed a massive threat to Korean manufacturers, who were still focused on feature phones with physical keypads.

The domestic manufacturers — Samsung and LG — joined forces with major telecom companies to block the iPhone's entry by emphasizing the importance of WIPI regulations. This effectively delayed the iPhone's launch in Korea by almost 3 years, despite the fact that it was already available in countries like Japan, the US, and Europe.

Telecom Cartel & Political Connections

At the heart of the issue was South Korea's telecom cartel — a close-knit network between:

Telecom companies (KT, SK Telecom, LG Uplus)

Electronics manufacturers (Samsung, LG)

Regulatory bodies (Broadcasting and Communications Commission, later the Korea Communications Commission)

Telecom companies feared that the iPhone's Wi-Fi functionality would bypass their expensive mobile data services, drastically cutting into their profits. At the time, Korean telecom companies relied heavily on data charges from downloading music, apps, and ringtones through their own closed platforms — a model the iPhone completely bypassed through the App Store and free Wi-Fi access.

Many reports suggested that Samsung and telecom companies lobbied regulatory bodies to maintain WIPI regulations and pressure politicians to delay the iPhone's launch. The head of the Korean Broadcasting and Communications Commission (KCC) at the time, Choi See-joong, was known to have close ties with SK Telecom and Samsung.

The Breaking Point

Despite this cartel's efforts, public pressure and global technological trends eventually forced the Korean government to abolish the WIPI mandate in April 2009.

Shortly after, the iPhone finally launched in Korea in November 2009 through KT — not through the dominant SK Telecom or LG Uplus.