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RealTime IT News

Domestic E-Commerce Firms Take the Lead in Korea

Local e-commerce solutions providers are making headway in the Korean market as new domestic companies such as E-net Corp. and Pionsoft Inc. take advantage of imported rivals by offering more competitive prices and customized applications.

E-net Corp., one of the nation's leading e-commerce solutions providers, recently clinched an order from Gold Bank to build a large shopping mall after beating out its foreign competitor IBM Korea.

Domestic e-commerce providers, already enjoying the lion's share of the the local small and medium enterprises' market, have begun to penetrate the larger corporate market.

E-net's e-commerce solution 'Commerce21', which was developed in 1996, has been utilized to build large shopping malls such as Dacom's Inter Park and Internet shopping mall of Lotte Department Store.

So far, E-net Corp. has released three types of e-commerce solutions: shopping mall version for large businesses such as department stores, multi-shop version that can accommodate up to five shops, and shop version for small businesses.

Prices of these e-commerce solutions are ranging from 3 million won (US$2,500) for the shop version to 20 million won (US$16,700) for the shopping mall version.

Foreign companies typically offer similar solutions but these are priced at between 50 million won (US$41,700) and 100 million won (US$83,400), according to industry sources.

Pionsoft Inc., another major Korean e-commerce solutions provider, has provided about 140 small and medium business with its brand 'One Stop Site Builder' by forming a cooperative sales network with such server computer suppliers as Samsung Electronics, Compaq Korea and Hewlett Packard.

"Our first product 'One Stop Site Builder' which was developed late last year has been sold to small businesses that intend to build small Internet shop," said a company official. "Our company has more than 50 percent of the domestic e-commerce solutions market."

The One Stop Site Builder is priced at 2.97 million won (US$2,500) per copy.