Google in S Korea: storm in a teacup

By Christian Oliver and Song Jung-a in Seoul

South Korea isn’t China. Google will probably have nothing to worry about after a raid by the Seoul police.

Having a visit from the boys in grey is not as bad or as unusual as it sounds. While the cases involving foreign companies are often interesting they tend to result in minor fines or slapped wrists, rather than jail terms and nationwide scandal.

Google joins the likes of Saab and Roche who have also had an unexpected visit the last 12 months.

Roche had been investigated after its antiviral Tamiflu drug was supplied in an illegal preferential cache to (perfectly healthy) HSBC employees. A few doctors and Roche employees were ultimately fined Won7m ($6,000) each over improper prescriptions. Inquiries into whether Saab paid for military secrets fizzled out, although some former Korean high-brass got suspended sentences for leaking secrets to the Swedes.

When South Korean authorities went through the motions of investigating Samsung Electronics for serious fraud, a raid was a perfect solution. Authorities rooted around the offices of Korea’s top company in January 2008 while 200 investors were attending a conference call. They did not find the smoking gun that was supposed to be there, but had made a satisfactory song and dance of being seen to do something. That is often the point in Korea.

Samsung Electronics and its rival LG Electronics provide a further example of why Google – barring something very strange – will probably escape unscathed. Apple had a miserable time trying to get its iconic iPhone allowed in Korea, on the home turf of LG and Samsung who have been conspicuously weak at smartphones.

South Korean consumer groups accused the authorities and conglomerates of colluding in protectionism. Apple was politically toxic. Google on the other hand will be a crucial partner as Korean phone makers want to use the Android operating system. This time around, Seoul will probably be in no mood to ruffle the foreign company’s feathers.

Related:

Google – In depth

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