In the latest of a series of ongoing battles with Korea’s top software developer, Hangul & Computer Co, Microsoft Corp has launched a price war in which its Word 2000 program is being sold at 10,000 won ($8.70), or less than 5% of the normal retail price.
Describing the program as far more efficient than HCC’s competing 815 word processing package, Microsoft spokesperson Ko Myong-shin said: We introduced a new sales tactic to help consumers get easier and wider access to our new product.
They are launching an all-out price war to kill us, said HCC spokesperson Kim Jong-soo. But Microsoft is just following our marketing tactic for our Hangul 815. We are ready to take counter-action by bringing out new, cheaper versions.
Microsoft accuses HCC of resorting to appeals to nationalism to gain the upper hand in computer stores. Although big companies favor Microsoft, HCC is used by the majority of educational institutions and other public organizations.
Said Ko: We are boxing in the competitive market where nationalism is strong. But consumers know our program has better quality. Retorted Kim: We are not so concerned over their push. There are many clients who have supported us since they tried to swallow our firm a year ago.
Last June, Microsoft attempted a hostile takeover of the Korean company, but a nationwide civic campaign raised 10 billion won to bail it out and this year it has made a dramatic recovery and is now planning a Nasdaq listing.
