3 questions Google chief has to answer

After four years away, Google Chairman Eric Schmidt has landed in Seoul and expectations are that the U.S.-based Internet giant may make a ``large and substantial’’ investment in Korea’s Internet market.

Eric Schmidt
Google Chairman

By Kim Yoo-chul

After four years away, Google Chairman Eric Schmidt has landed in Seoul and expectations are that the U.S.-based Internet giant may make a ``large and substantial’’ investment in Korea’s Internet market.

Android software has gained a larger user base internationally and South Korea is a big supporter.

Samsung Electronics, the world’s biggest smartphone maker, is heavily betting on the Android systems on its popular Galaxy-branded devices, followed by LG Electronics and Pantech.

Also, the nation’s leading mobile carrier SK Telecom, KT and LG Uplus have helped the Android system achieve significant growth, raising anticipation for ``Schmidt’s gifts.’’

``We don’t know whether Google will publicize talks with Choi See-joong, the chairman of South Korea’ top telecom regulator, but Schmidt confirmed Google’s support for the nation’s Internet space to chairman Choi,’’ said a high-ranking official from the Korea Communications Commission (KCC), Monday.

Schmidt met with SK Telecom chief executive Ha Sung-min, KT Chairman Lee Suk-chae and LG Uplus Vice Chairman Lee Sang-chul separately, at a hotel in Seoul and the mobile carriers agreed with Google to further collaborate in areas of mobile payment systems, mobile advertisements and near-field communication (NFC) services.

Schmidt will hold a press conference early Tuesday morning at the headquarters of Google Korea and here are three things to look for in the much-anticipated press conference.

Attention is being focused on whether the Google chairman will talk about the ongoing investigation by South Korean prosecutors over Google’s use of Street View technology, which prosecutors have identified Google being behind what it believes is a privacy-infringing feature.

Since the investigation, Google has been passive in supporting the investigation, though the Internet giant was ordered by the local telecom regulator, the KCC, to revise the ``wrongdoings.’’

Google had collected and stored sensitive and private information over of 600,000 people in South Korea, while it had been gathering images of the country’s roads for the Street View between October 2009 and May 2010.

Google denied infringing on any privacy laws here. During his visit, a meeting with even President Lee Myung-bak indicated possible new tie-ups between South Korea and Google.

``Google regards Korea as its true business partner and it really doesn’t want to get involved in troubles whether the chairman’s remarks over the issue will draw keen attention,’’ said Lee Kang-seok, a 36-year-old office worker in Seoul.

Another question that’s going to come out is whether Google has keen interest in acquiring Daum Communications, the nation’s No. 2 Internet portal, as an apparent strategy to expand Google’s grip in the rising local mobile ad market.

Before the conference, shares of Daum Communications rose 2.5 percent to end at 135,200 won per share in the nation’s main bourse.

Daum denied that it was contacted by Google but financial analysts said the acquisition of Daum by Google ``does make sense,’’ considering Google’s interests in the local mobile advertisement sector.

``Daum founder Lee Jae-woong holds just 15.5 percent of Daum, which is quite favorable for Google to buy the local portal. Because South Korea is a hot bed for Android software, Google is aiming to use Korea as a litmus test to boost its Android eco-systems,’’ said Oh Sung-kwon, an analyst at Kyobo Securities.

To ask for Woori’s aggressive help for Google’s mobile payment business here Schmidt met Woori Financial Chairman Lee Pal-seung at the request of Lee.

Another question involves Google’s stance in the ongoing patent battle between Android and Apple.

Samsung Electronics and HTC of Taiwan, top Android backers, are fighting with Apple over patents and the fight has also been regarded as crucial for Apple to rein in Google’s rapid rise in the world of smartphones.

The late Apple CEO Steve Jobs talked about the introduction of an Android-supporting device by HTC, that felt very similar to the iPhone as a move that amounted to ``grand theft.’’

But ironically, Android has been continuing to grow and it’s no doubt that Android has the biggest base of any mobile operating system, with Apple’s iOS follows in second spot.

The situation is totally different for Google in making its business strategies in South Korea. From cloud-based services to mobile operating systems to advertising, Google and Apple are heavily engaged in a long-term battle.

``That’s why Schmidt’ meeting with Samsung Electronics chief executive Choi Gee-sung and even Samsung heir-apparent Lee Jae-yong has emerged as the hot issue for tech industries,’’ said Kim Seong-baek, a 34-year-old journalist for an online site based in South Korea.

``Will Google pay sincere tribute to Samsung and I’m so curious about what Schmidt’s gifts to Samsung will be. Is it royalty or something else?’’