Microsoft's row with Korean regulators could boost Linux in Asia, the region's first listed Linux developer told vnunet.com today.

"It should definitely have a positive public relations impact for us," said Nobu Okada, chief financial officer at Turbolinux, a Japan-based Linux developer that carried out a successful IPO in September. 

Microsoft said that it might stop selling Windows in Korea if regulators demand a rewrite of the operating system's code to remove certain features.

As regulators from the Korea Fair Trade Commission (KFTC) met to discuss a ruling in an antitrust case aimed at Microsoft, the president of Microsoft Korea, Yoo Jae-sung, said that if the KFTC urges Microsoft to remove bundled applications from Windows, it would be "difficult for us to do business in Korea". 

The comments, reported in the Korea Times, appear to represent a strengthening of Microsoft's position, after a Korean official scolded the company earlier today.

The official told Reuters that Microsoft " should take responsibility for its customers and companies in relation to its business". On Sunday, a Microsoft Korea representative had been more conciliatory. 

Mike Davis, senior research analyst with the Butler Group, downplayed the dispute's global significance. "Really, for Microsoft, Korea is small potatoes," he said.

Consumers would be likely to switch to pirated versions of Windows if they could not buy a bona fide copy, he predicted, although this would deny them access to official updates.

Davis believes that any positive impact for Linux is likely to result from the South Korea government insisting that its departments use alternatives to Windows.

With most Linux developers worldwide focusing on English and European languages, Turbolinux is generally recognised as one of the leading Asian providers of Linux, with a version adapted for Asian-language display and input, notably Japanese, Chinese and Korean.

The robust actions of Korean regulators are part of a global trend, argued Okada. "More than 30 countries are shifting toward open source software as a result of government leadership," he said.

If Microsoft really did delay or cease Windows deliveries in Korea, both Linux and Apple would benefit. 

"For the desktop PC, the only alternatives are Mac OS and Linux," he said. Linux could see even greater gains in the server market, he added.

However, Okada warned that there is speculation that Korea's tough position could be a negotiating stance designed to win concessions from Microsoft. A decision in the case is expected during the next few days.

Microsoft's regional headquarters has not responded to vnunet.com's requests for comment on the Korean case this week.

While Microsoft can afford to play hardball with smaller nations like Korea, larger markets may not be so easy to push around.

"If China turned around and said 'no' to Microsoft, then they would have to take notice," said Davis.