Fast forward and Netscape 4 dies, leaving the plugin unloved and unmaintained. IE achieves market dominance and banks / shops etc start assuming that that’ll be the browser used. Now, when Gecko and Webkit start making inroads outside of South Korea they still don’t have native SEED support which means they can’t be used for secure transactions on the inside. SEED is mandated by the government along with the use of secure transactions for certain operations (online banking for one), so by proxy the use of the ActiveX plugin and therefore Internet Explorer.
Work was recently done to provide Firefox with native SEED support ( https://bugzilla.mozilla.org/show_bug.cgi?id=478839 ) and that should make it in for Firefox 3.6. I guess then we’ll see whether it’s possible for a non-IE browser to gain any market share. Of course, the years of a Microsoft monoculture have caused problems with regards to building sites using web standards…
And then everyone else designing web services in Korea knows that since everyone uses IE, they don't bother optimizing or even testing their web sites in anything but IE.
So when Firefox appears on the market, none of the bank websites work, and plenty of regular websites don't work or look like shit in it, so users never bother with it. It's a negative spiral.
Contrast that with the development in Sweden where I am: I switched banks in 1999 to one with a really good internet bank that used standard client certificates. It worked in all browsers on all platforms. Some other banks had mediocre internet services, some had services that required the users to install something proprietary windows-only, and some banks used a hardware authenticator. The ones with bad compatibility, the ones that didn't work on Mac or in Netscape got a lot of flak from consumers, and the ones with compatibility won all the awards and got a lot of good press and goodwill.
That was instead a positive spiral, and today the technologies that survived are standard client certificates or hardware authenticators, and it doesn't matter with OS you're running or which browser you're using, all internet banks here are usable by everyone.
If only the same where true for the government websites. Taxes and various social services webpages are still more or less impossible to log in to without windows and IE (don't know how it is with Macs though).
This doesn't seem to be the sort of thing that would spring up without reason.