But many in the industry are still struggling to find ways to turn a profit. Portal services rely on advertisements for the largest portion of their revenues. Despite steady growth in the online ad market, skepticism has mounted about how effectively online banner ads reach consumers. The industry group expects online ad revenue will grow 2.3 times to 220 billion won this year. But skeptics said the online ad is likely to lose steam, as Korean businesses at large are expected to suffer from a slowdown this year.
Advertising is one of the last concerns for companies when times are difficult.
Portal and community providers are high on the lists of those most likely to collapse early. To weather the hard times, dot-com purveyors are going in full swing in search of profit resources and trying vehemently to prove to investors that they are viable. One promising way to be profitable is charging fees for use of Web-based content and software. It is not easy, however, as Korean Internet users have long been accustomed to the idea of free Internet content. A lack of quick and safe online payment systems also leaves many users wary of paying, lest their personal information get stolen by hackers.