Google has infiltrated nearly every aspect of life worldwide but has faced bitter failure in attempting to penetrate South Korea, one of the leading digital nations in the world. Why is that?
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| Source: AFP |
South Korean users are among the most tech-savvy and internet-literate in the world, with millions maintaining their own blogs and boasting one of the highest broadband penetration rates and dense Wi-Fi hotspots. It would seem that Koreans would automatically and organically become loyal customers of Google; however, this is not the case.
According to data from WebSideStory, the search giant only captured 17% of the total search traffic in March, overshadowed completely by the local website Naver from NHN Corp.
This website accounts for nearly 58.4% of all search requests currently in South Korea. Following it is Daum Communications, another domestic search engine with over 48%. The Korean version of Yahoo ranks third.
It is hard not to wonder why Google—a company that just last week astonished investors with a 60% increase in profits for the first quarter—has not succeeded in the land of Kimchi?
Searching in a “Humanized” Way
Analysts suggest that Google’s failure is due to many unique and specific factors of the South Korean market, and that Google’s search results rely too heavily on software rather than on human expertise.
Of course, the South Korean market is relatively small compared to the community of English-speaking countries online. Previously, South Koreans often found it challenging to search for information in their native language.
To “reverse the situation,” Naver, a website more like a Yahoo-style portal than a simple search engine, launched what it calls Knowledge iN, where users can post questions, and other users will answer if they know.
Now, Knowledge iN boasts a database with over 41.1 million entries. For each search request, users receive answers from others, related news sites, and blogs, along with several links containing other search keywords.
“Naver’s service is clearly in tune with Korean culture,” says Wayne Lee, an analyst at Woori Securities. “People in this country enjoy interacting with others, they like to ask questions and receive feedback.”
The most common questions on Naver revolve around love, dieting, or computer virus removal. However, you can find answers to virtually anything here, from naming dinosaurs to getting rid of acne.
In other words, “South Korea is a place where people and searches can coexist and thrive,” Lee states.
Rare Marketing Efforts
Yim Kwang-soon, a 25-year-old student who spends an average of 5 hours online each day, notes that he always uses Naver whenever he searches. “As long as Naver’s service continues to satisfy and meet people’s needs, they will not switch to another website unless it offers something exceptionally unique.”
Google began establishing a Korean site in 2000 and has gradually introduced Desktop Search and Gmail since then. Last June, the company also set up an office in Seoul and plans to increase its staff there.
Last year, Google rented a double-decker bus to travel to universities and shopping centers across South Korea with the mission of promoting “Google Experience,” providing information about the company and free internet access. This was a rare marketing effort from Google, a company that has never focused on advertising in the U.S. due to its widespread popularity.
Destiny
