Korea's alleged stonewalling of the Canadian-made Blackberry smart phone is emerging as a trade dispute between the two countries, which at least one high-ranking Canadian businessperson here says could impair their free trade negotiations.
At issue are a ban imposed by the Ministry of Information and Communication on the sale of the 3G Blackberry PDA in the Korean market, and a software requirement that renders foreign 2G Blackberries inoperable in Korea. Blackberry proponents here want the device exempted from the software requirement, as they say other business PDAs have been. Ministry officials, on the other hand, say there is no reason to give the device, made by the Canada-based Research In Motion, such an exemption.
Jonathan Holmes, the president of Korn/Ferry in Seoul, says that some foreign business leaders could be inclined to think Korea is behind the times on this issue. "The concern I would have for Korea is that it is embarrassing to Korea -- a leading tech country -- for a ubiquitous business tool such as the Blackberry to not work for many visiting executives," he said.
Terry Tuharsky, president of the Canadian Chamber of Commerce in Korea, says that Korea is being unfair to the Canadian product, which has sold over 9 million units worldwide.
He even said that the Information Ministry's decision to block the sale of the 3G Blackberry here is "damaging to relations with Korea," and that "blocking the sale of the Blackberry in Korea puts the Korea-Canada FTA in jeopardy because it is Canada's signature product."
Korea requires all cell phones that access the internet to carry the country's WIPI platform, which was made mandatory in 2005 to help spur local software developers.
But foreign critics say that rule is loosely applied. An official at the Information Ministry, Kim Jik-dong, admitted that some non-WIPI phones have been approved, but added that it was only a "misunderstanding of the regulations and those firms were warned by the ministry."
That doesn't satisfy Tuharsky, who says, "Near January 2007 it was found that close to 30 PDA phones did not have WIPI. In March, three phones without WIPI were allowed in the Korean market. In addition, two PDAs were approved after May. These circumstances go well beyond a 'misunderstanding.'"
Canadian Ambassador Ted Lipman told The Korea Herald that the device could help Korea boost productivity. "Seoul stands alone amongst Asian business capitals in denying this basic tool of business to its citizens and investors. For a country which aspires to be a world economic leader, Blackberry presents a win-win situation for Korea and will make Korean business and foreign investors here more competitive."
Kim of the Information Ministry said: "We're not trying to block the entry of Blackberry. We are asking them to support Korea's standard mobile internet platform, just like local firms."
The issue has gone all the way to President Roh Moo-hyun. In a Nov. 25 letter, the Canadian Chamber of Commerce in Korea asked him that "Korea reconsider its position on the sale of Blackberry devices in Korea."
The Ministry of Information and Communication responded in the negative to the letter, citing the mandatory WIPI requirement. Still, Tuharsky, whose term ends at the end of this year, thinks there is discrimination at play. "A trade barrier is still a barrier even if a very large company can adjust. The WIPI standard is a WTO infraction, and against open systems," Tuharsky said. "Justifying a policy based on a specific company's ability to adjust, is unwise and against free trade."


source: http://www.koreaherald.co.kr/