June, the momentous month, had arrived.
With the beginning of the second half of 2001, the iPhone was launched.
Expectations had been raised to the highest at CES, which led to an explosive reaction.
But the scale of the explosion was beyond anyone's anticipation.
Stores selling electronics across the United States were packed with crowds eager to buy the iPhone, and even tourists from Europe, where the iPhone had not yet been released, came to the U.S. just to purchase one.
The planning director reported all this to me.
While I felt happy, there was also a bitter sense of frustration.
"The iPhone is a huge hit in the U.S., but it hasn't even been released in Korea yet."
"The telecom cartel is strongly blocking the iPhone's release. The regulation requiring WIPI implementation, which was originally scheduled for July, was started a whole month early solely to curb the iPhone."
I never imagined the iPhone's launch itself would be blocked.
The telecom cartel had conducted massive lobbying efforts targeting the political sphere and the broadcasting committee.
With lobbying also from Samsung Electronics and CL Electronics, it was only natural that the politicians would move.
There was even a justification from the politicians.
Protection of domestic products.
The argument was that if the iPhone came in, domestic phone companies would suffer a heavy blow, so it had to be stopped.
Honestly, it was a nonsense excuse.
But with the telecom cartel providing strong backing, they pushed through firmly and ultimately succeeded in blocking the iPhone's release in Korea.
"How many iPhones have been brought into Korea?"
"An initial shipment of 100,000 units arrived just last week."
One hundred thousand was not a small number.
Especially since this was only the initial stock, the longer the Korean release was delayed, the greater the damage to Apple and Taewoo Group.
"It's a ridiculous situation to have the products but not be able to sell them."
"If the regulations were lifted, we could start selling immediately, even right now. But since the telecom cartel is doing everything to block it, whether it will be released this year is still uncertain."
The planning director was full of concern.
On the other hand, I wasn't too worried.
"Let's wait a little longer. At the latest, things should change within this month. If the iPhone creates a frenzy in the American market, naturally, Korean customers will demand its release too, right?"
"The number of customers inquiring about the iPhone release already exceeds thousands every single day."
To overcome the telecom cartel, we needed a cartel of our own.
It was also crucial which side the customers who actually bought mobile phones would take.
The more customers demanded the iPhone, the weaker the telecom cartel's justification became.
"The more the iPhone craze spreads, the more advantageous it is for us. So please dedicate all efforts at the Taewoo Group level to promoting the iPhone."
"The Taewoo electronics marts that have already established a presence in the U.S. are heavily promoting the iPhone."
"Increase the promotional budget even more. A frenzy will happen on its own anyway, but we need to accelerate the pace."
***
The telecom cartel held another meeting.
It was a gathering attended by telecom companies except Taewoo Telecom, along with Samsung and CL Electronics.
They raised their glasses in a toast, creating an atmosphere of camaraderie and warmth.
"Thanks to WIPI, we can look forward to the advancement of Korea's telecom industry!"
"It's all thanks to the chairman's careful attention."
They sincerely praised each other.
The electronics companies were pleased because blocking the iPhone release helped maintain their own mobile phone sales.
The telecom companies were happy because blocking wireless internet allowed them to extract higher data fees.
And the broadcasting committee benefited by receiving support from the telecom cartel, so everyone was genuinely satisfied, which made heartfelt praise possible.
"Taewoo Group is looking good. Soon, they might even step down from their position as number one in the telecom industry, won't they?"
"If Samsung and CL Electronics help us, it won't be a difficult task. We count on you for the upcoming new products."
"At Taewoo Telecom, we plan to give a slight penalty. We can't block supply itself, but not being allowed to use new product names should be enough, don't you think?"
"Just like Hong Gil-dong couldn't call his father 'father,' Taewoo Telecom will have to refer to phones by their unique numbers instead of their names! That's a very good idea!"
Mobile phones had a variety of names.
Samsung Electronics' new product was called "Anicle."
But if Samsung Electronics refused to allow the use of the name "Anicle," Taewoo Telecom would have to promote it as SCH-480 instead of "Anicle."
It wasn't a huge penalty per se, but it could cause significant confusion among customers and naturally could lead to a loss in Taewoo Telecom's market share.
A vile and childish tactic.
But the telecom cartel was a large-scale group that didn't care about others' opinions.
Therefore, despite using such vile and childish methods, they felt no shame at all.
"So, they say the iPhone is a smartphone? Do you really think the era will shift from feature phones to smartphones?"
"People tend to prefer familiar devices. And with laptops around, who really needs a smartphone? At CL, we don't even consider entering the smartphone business."
"Although the reaction in the U.S. is heated, it's just a flame that will soon burn out. At first, it will be fresh and liked, but eventually, people will realize there's no reason to pay a high price for the iPhone."
The telecom cartel was skeptical about entering the smartphone market.
The electronics companies had no intention of abandoning feature phones, which already held a large global market share.
Telecom companies preferred feature phones to maintain expensive data plans.
"I'll buy a round of drinks."
"Shall we shout a toast since it's been a while?"
"Do you have a good toast prepared?"
"Shouldn't we include Taewoo Group, who couldn't attend today?"
"That's a good idea."
[To Taewoo Group!]
[Cheers!]
The telecom cartel shouted a toast mocking Taewoo Group.
As a few more drinks passed around, suddenly deputy-level officials from the broadcasting committee and heads of departments from each company hurried into the meeting room.
"The U.S. has invoked Super 301."
"What do you mean? The U.S. invoked Super 301 against Korea?"
"That's correct. They have condemned the regulations blocking the iPhone release and applied Super 301 against Korean mobile phone and automobile companies."
Super 301.
It was a law allowing unlimited retaliatory measures against countries that interfere with U.S. interests.
If Super 301 were formally enforced, Korea would be unable to sell its mobile phones and cars to the U.S. market.
It would shake the Korean economy.
And everyone in the telecom cartel was instantly reminded of the foreign exchange crisis.
***
That evening,
I raised a toast with David in Captain Kang's office.
"You did well. I thought it might take a while since President Bush was hesitant about Super 301, but thanks to your efforts, David, it was triggered today."
"It was thanks to the iPhone's popularity. That made it easier to move the White House."
I had provided substantial campaign contributions to Bush's camp.
But even so, I couldn't cause something as massive as Super 301 on my own.
It was only possible because our interests aligned perfectly.
The U.S., of course, wanted the advancement of its own companies.
And we wanted the iPhone to be released in Korea, so our interests didn't conflict at all.
"The Korean government must be in an uproar. They're aiming to graduate early from the IMF program but suddenly hit the obstacle of Super 301."
"I've heard through the line that all senior officials have been summoned to the Blue House. But I have one question. Why did you include the mobile phone and automobile industries in the Super 301? Won't it inflict a huge loss on Taewoo Group, which owns a car company?"
"That's so we can gather allies on our side."
To face the telecom cartel, we needed a cartel of our own.
If the telecom cartel existed to protect mutual interests, we had to unite to prevent losses.
If Super 301 blocked car exports to the U.S., of course Hyundai Motor would rebel and step in.
To confront Samsung Electronics and CL Electronics, we needed an alliance with groups like Taewoo and Hyundai Motor, didn't we?
"Hyundai Motor just got caught in the crossfire by standing still."
"Since they got caught, they need a scapegoat. The telecom cartel, which caused this incident, is the perfect target."
"And it will also cause division within the telecom cartel. The telecom companies won't lose anything, but if the mobile phone companies lose U.S. sales, their revenue will be severely damaged."
"How many phones can be sold in the small Korean market? If U.S. sales are blocked, revenue will be cut in half."
If the telecom cartel uses the broadcasting committee, I could retaliate by using the White House.
I generally didn't want to choose this path.
After all, it was something that could deliver a huge shock to the South Korean economy.
But it was the telecom cartel that forced me into this position.
"But won't the telecom cartel strike back as well? They have enough financial power to launch massive lobbying efforts in U.S. politics."
"That might be possible in other cases. But this time, they're interfering with the interests of their own country's companies. What politician would accept lobbying that harms their own national firms?"
"Still, if the telecom cartel doesn't back down, the iPhone launch won't happen."
"Do you think that will happen? If it does, not only the U.S. but even allied countries will stop importing Korean mobile phones and cars. Sales won't just be cut in half—they'll be quartered."
This was known as a secondary boycott.
Also called a third-party sanction, it's a method of forcing allied countries of the U.S. to follow Super 301.
It was a tactic other countries wouldn't dare try, but the U.S. could do it.
"To pressure the telecom cartel further, we need the power of public opinion. I will have articles released attacking the telecom cartel in alliance with Hyundai Motor."
"Also, try to provoke foreign mobile phone companies that can't enter Korea due to WIPI. If they release a joint statement, the telecom cartel won't be able to resist."
I was essentially threatening the telecom cartel with the Korean economy as collateral.
If the telecom cartel tried to beat me, the Korean economy would collapse.
It was a fight I absolutely had to win. Why pick a fight with someone who's just standing still?
***
The president's chief secretary visited Kang Daeki, chairman of the broadcasting committee.
Although they were both treated as equivalent to ministers, Kang Daeki was the one bowing his head.
Even if they held the same ministerial rank, the chief secretary was the second most powerful person in the government, and his voice was essentially the president's voice.
"How are you handling things so that the U.S. would activate Super 301? Stop the regulations like WIPI immediately."
"WIPI is necessary to protect domestic companies and for customer convenience."
"Domestic companies? Speak properly. It's necessary only for a few companies friendly with the broadcasting committee."
Anger filled the chief secretary's voice.
People were suffering all sorts of hardships trying to graduate early from the IMF program, but now an accident had occurred in an unexpected place, causing fury to explode.
TL/n -
Section 301 = U.S. authority to act against unfair trade practices.
Super 301 = A tougher, mandatory version created in 1988, requiring the U.S. to identify and retaliate against countries with major trade barriers.
Impact = Helped the U.S. open foreign markets but also created tension, especially with Japan in the 1980s–90s.
+++
The term "Super 301" refers to a powerful trade policy tool in the United States Trade Act of 1974, specifically under Section 301, which was later strengthened in the Omnibus Trade and Competitiveness Act of 1988.
What is Section 301?
Section 301 gives the U.S. government the authority to retaliate against foreign countries that engage in "unfair" trade practices — such as trade barriers, discrimination against U.S. goods, or intellectual property theft.
It allows the U.S. Trade Representative (USTR) to investigate and, if necessary, impose tariffs, quotas, or other trade restrictions.
What Made "Super 301" Different?
In 1988, during trade tensions with Japan and other countries, Congress passed the Omnibus Trade and Competitiveness Act.
This included a "Super 301" provision, which required the USTR to identify the most egregious trade barriers ("priority foreign country practices") every year and take strong retaliatory action if they were not resolved.
It essentially made Section 301 more aggressive and mandatory, forcing the U.S. government to take action rather than leaving it optional.
Use of Super 301
The U.S. first used Super 301 against Japan in the late 1980s and early 1990s, targeting industries like semiconductors, automobiles, and electronics, where the U.S. accused Japan of unfair barriers.
It was also used to pressure South Korea, India, and Brazil to open their markets.
The tool was controversial because it was seen by some countries as unilateral trade bullying, outside the multilateral framework of the World Trade Organization (WTO).
Suspension and Reinstatement
Super 301 was initially a temporary measure but was renewed multiple times in the 1990s.
By 1995, with the establishment of the WTO (which provided a formal system for trade disputes), the U.S. reduced its reliance on Super 301.
However, it has occasionally been revived in later years, particularly when the U.S. government wanted leverage in trade negotiations.