Hackers Compromise Personal Data from Nate and Cyworld Accounts

On July 29 it was reported by the Joongang Daily that hackers had stolen personal data from as many as 35 million Korean netizens with Nate and Cyworld accounts.
According to SK Communications, which runs both Nate and Cyworld, hackers had access to the IDs, names, cellphone numbers, e-mail addresses, encrypted social security numbers and encrypted passwords of an estimated 35 million users.
Cyworld currently has 33 million users and Nate 25 million users, the company said.
SK Communications suspects the hacking was done through malicious code, and the IP address used for the attack was from China.
The company reported the attack to the Korea Communications Commission and asked police yesterday for help investigating.
The Cyber Terrorism Response Center under the National Police Agency said its team will visit SK Communications’ database center in Seongsu-dong, eastern Seoul, to determine the exact details of the attack.
Police believe Tuesday’s hacking attack was Korea’s biggest ever.
On August 3 The Washington Post published an interesting report on widespread cyber-spying. According to the report, a leading computer security firm has used logs produced by a single server to trace the hacking of more than 70 corporations and government organizations over many months, and experts familiar with the analysis say the snooping probably originated in China.Google’s disclosure early last year that hackers in China had broken into its networks and stolen valuable source code was a watershed moment: A major U.S. company volunteered that it had been hacked. Google also said that more than 20 other large companies were similarly targeted.

LinkedIn versus Facebook in Korea

As elsewhere around the world, social networking in South Korea is in a rapid state of flux, in no small measure because of the proliferation of smart phones and the social capabilities that mobile devices make possible.  As noted in earlier posts, social networking via Cyworld arrived half a decade before Facebook appeared in the U.S.  However, with the arrival of Apple's iPhone near the end of 2009 and the rapid proliferation of Android devices, both Facebook and Twitter began to gain significant market share here.
Gigaom has an interesting article entitled "LinkedIn and Facebook:  Personal Versus Professional in the Identity Wars."    Like many users of internet services, I've found myself much more comfortable with LinkedIn than with Facebook, precisely because the former deals with professional identity rather than close family or personal ties. I suspect that Korean users of both services have noted this difference as well, especially since the boundaries between personal and professional, culturally speaking, are different in Korea than in the West.  This much can be seen from the rather dramatic differences between Cyworld and Facebook.  When it comes to social networking, it seems apparent that one size doesn't fit all.

Korean Social Networking Trends in the Smartphone Era

This is a follow-on to the previous post and earlier posts about social networking in Korea.  The Joongang Daily has an interesting article with data from Metrix showing what happened to social network service traffic in Korea during the year following arrival of the Apple iPhone and the so-called "smart phone shock" here.  As shown in the accompanying graphic (click on it to see a larger version), although Korea's homegrown Cyworld still has far more members than Facebook or Twitter, the latter two services have relatively more pageviews---many more per user!
There are several main reasons for the relative success of Facebook and Twitter in the face of a well-established Cyworld that was already dominant in the Korean market and had operated here for nearly half a decade before Facebook was even invented in the U.S.   First, Cyworld was designed as a Korean language service, with Korean users in mind.   It failed in its efforts to penetrate such international markets as the U.S., Germany, Taiwan and Japan.  Second, while Facebook and Twitter took advantage of the mobile broadband and smartphone revolution, Cyworld neglected Apple's iPhone and the new Android phones, instead concentrating on the outmoded Windows mobile platform.  Finally, the internet is inherently a global phenomenon.  Such SNS services as Facebook and Twitter allow networking throughout the world, across most national borders.  As the Joongang Daily article points out, Cyworld's image of being a Korean company rather than an international one was a big obstacle.

Facebook versus The Korea Communications Commission

The Korea Communications Commission (KCC) is in the news again, throughout the tech blogs and even in the mainstream press around the globe.  The KCC, formed in 2008 by the incoming Lee Myung Bak administration, is South Korea's top communications policy and regulatory agency.  This time it is in the news for issuing what The Register called a "stern warning" to Facebook about its privacy policies.
As reported by IDG, the KCC sent a letter to Facebook indicating that it is in breach of South Korean data privacy laws and needs to do a better job of getting consent from users when getting their personal information.  The KCC said the U.S.-based company has 30 days to respond to the complaint, so this may be a developing story.
Much of the blog and mainstream press coverage of this development, while interesting, fails to convey adequately the following obvious points.

• Traditional conceptions of privacy in Korea, and in Korean language web content and services, are not at all the same as ideas about privacy in the West and other parts of the world.
• Social networking in Korea, epitomized by Cyworld, and social networking in the U.S., led by Facebook, have significant differences.  As noted in earlier posts, even though Cyworld swept through the Korean internet experience almost half a decade before Facebook appeared, it cannot simply be treated as the Korean equivalent of Facebook (as noted in earlier posts on social networking.)
• Notably, Facebook did not have much of a presence at all in Korea until the arrival of Apple's iPhone about one year ago.
• Finally, it seems to me that the KCC complaint to Facebook represents another excellent illustration of the global scope of the internet.  While the activities of Facebook impinge upon Korean society and Korea's laws, the question of what impact the KCC complaint will ultimately have on Facebook's behavior is an interesting one.   Some months earlier, when the Korean government sought to regulate how users could log  in to Google's Korean Youtube site, that company reacted by closing the site.  Subsequently Korean users of Youtube flocked to sites hosted in other countries to make use of the service.

Social Networking and Korean Social Networking: The Rise of Twitter and Facebook

In retrospect it is clear that "social networking" via the internet arrived in Korea, in the form of Cyworld, almost half a decade before Facebook appeared in the United States.  However, as pointed out in an excellent  article in The Korea Times, Cyworld's "mini homepages" were tailored for users seeking to maintain a closed and controlled network of immediate friends.   I assume part of Cyworld's great appeal here in Korea is that it naturally extended the Korean penchant to form close networks among classmates,  family or friends from the same hometown or business.
It is most interesting that Facebook and Twitter, along with Google to some extent, only began to seriously penetrate South Korea's market with the arrival of Apple's iPhone about a year ago.  According to local market research, the number of visitors to Facebook and Twitter reached 7.38 million and 8.65 million respectively, during the month of September.  This represented a 650 percent year-on-year increase for Facebook and a 580 percent jump for Twitter.  Cyworld saw its visitors drop nearly 12 percent over the same period.
In response to these developments, local services such as Cyworld and Naver are introducing their own alternatives.  In the case of Cyworld, one such service is C-Log, a Facebook resembling service.  Time will tell about the success of these services, but as prior posts on this blog have argued, (for example here, here, or here.  Better yet, search this blog for "language") language and culture are extremely important factors in shaping Korea's information society and this reality is unlikely to change anytime soon.

Korean Internet Companies Opening Networks?

Yesterday's article in the Korea Times certainly caught my eye. Daum (www.daum.net ), the country's second most popular portal site, and Paran (www.paran.com ) have announced this month that they are supporting Google's ``Open Social'' initiative. Open Social is a set of application programming interfaces (APIs) developed by Google and other Internet companies like MySpace that aim to create a unified system of tools at different social networking sites and allow interoperability of applications. Industry watchers believe that Daum's commitment in Open Social could start discussions over the development of an open platform and common service standards for Korean social networking sites.
Although Daum has announced support for the Open Social initiative, it is significant that Naver and Cyworld have not, at least not yet.

Cyworld and Social Networking in South Korea

The Plus 8 Star website, Benjamin Joffe, CEO, has some very useful reports on social networking in Asia, including a report on Cyworld, South Korea's leading social networking site.  A report, Inside Cyworld:  Best Practices from South Korea's Leading Online Community, provides a nice overview of social networking in South Korea.  The report notes that the internet in South Korea is dominated by three major portals:  Naver, Nate.com (Cyworld) and Daum.  Yahoo Korea is the only foreign-owned website in the top fifteen. As shown in the accompanying graphic, seven of the top 15 Internet sites by traffic, are general portals and four are online game sites. (click on the graphic to see a full size version)