We’ve said often that western companies and properties will find it difficult to exist on the other side of the pond, if those making the decisions were not willing to flex on their at home rules and regulations.  This is why eBay pulled out of the Japanese market in 2002 and instead formed an agreement with Yahoo! to have its users purchase eBay products through Yahoo! Japan.    This prophetic reality comes due again as we see that Yahoos! Overture has lost its contract with NHN, the operators of the largest search engine (Naver) in Korea.  “The search advertising business in Korea is changing fast,” said Kim Sang-hun, NHN’s chief executive officer. “[Unlike Overture], our search advertising service will allow advertisers more freedom in choosing how they want exposure, and that will let them enjoy the maximum advertising effects possible.”

NHN has decided to take their search marketing business in house and it will be handled by a sister division.  This move will undoubtedly help the search engine save a few dollars as the rev share agreements with Overture will be no longer.

What Yahoo! must be asking itself is; are the other two (Daum and SK Communications- [Nate]), large search engines in Korea, which Overture coincidentally currently serves, planning a similar exodus.