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  1. 2009/02/27 Why Korean Internet industry is a labor intensive industry (2)
2009/02/27 01:27

Why Korean Internet industry is a labor intensive industry

No, Korean Internet companies don't use child labor for harvesting coffee beans. Obviously no workers stuck to assembly lines. Most of the Internet companies don't even have labor unions. After all, labor and the high tech Internet industry wouldn't ring a bell as a good marriage, right?

Wrong. Who are the "labor" people to the Internet companies? It's none other than us, the users.

Especially in an environment like in Korea where the scale is relatively small and homogeneity is the word that governs the culture.

What does that mean? By instigating a small number of zealots to form an opinion, you can easily maneuver in the direction of the crowd at will. How does that happen? By making them work FOR YOU.

Now, add in the "pali pali" culture as an ingredient. Everything in Korea moves just F-A-S-T, as if holding on to something old is actually a shame. As a result, what you get is people lined up to react to changes and do something dynamically 24/7. And it's all done manually, often even without getting paid.

It's widely known that much of Naver search is operated manually by hiring people to add links for certain topics and to edit the search results (for like $4/hr. Now I call that cheap labor!) Even when it comes down to content creation, many people are still paid to do so at an extremely fast pace, going after popular keywords at the moment. What's even more interesting is we have armies of 댓글알바, a.k.a. paid comment spammers, who'll just paint the Internet plaster with commercial content while masquerading as innocent housewives, students, or prosumers. Wrong. They aren't. They're often just college students that are dying to make the same $4/hr for leaving 100 comments on a designated topic.

Again, this is possible because Korea has a relatively small Internet market; people's interests don't vary much so it can be covered through manual editing. For Google, which tries to cover the entire Web, this might not be as cost-effective. You can't hire people or even instigate people to cover every single topic on earth. It just won't cut it. At the same time, for Korean users, Naver's handpicked materials are far higher quality meat than the automated version like Google's. This partially explains why Google still holds less than 5% of search market in Korea and the siloed portals are still dominant.

Want to succeed in Korea? Hear my words: work hard. I mean, real hard.

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