When it comes to TVs, DVD players, and other consumer electronics, South Korea can go head to head with the best from Japan, China, and the rest of the world. When it comes to car cockpit technology, South Korea takes a back seat to everyone else. Their cockpits are barren place if you're seeking infotainment along the way. That could change quickly with the technology sharing agreement this week between Hyundai and Microsoft to build a music and information system that will be available in 2010 Hyundais.

In an announcement made in South Korea's presidential Blue House, Microsoft and Hyundai Motor Group said they'll invest $113 million (Microsoft) and $166 million (Hyundai) to set up an Automotive IT Innovation Center. They said the first product will be a voice-controlled device connecting mobile devices and car stereo systems, which sounds like what Microsoft did two years ago in Europe with Fiat, called Blue & Me, and last year with Ford in the U.S., called Sync , that's helping pump up sales for good cars such as the Ford Focus and Edge, and stabilize sales of so-so vehicles such as the Taurus X. Sync adds voice control and a USB jack for control of iPods and other music devices; Blue & Me adds the ability to integrate a simple navigation system. Ford's U.S. exclusive on the Microsoft technology expires this fall.

Future versions from Hyundai will have "multimedia" and navigation-related features, they said. Although if an iPod connector isn't multimedia integration, then I'm not sure what is. We're still waiting for an automaker to more fully integrate iPods, meaning video in addition to the audio connections.

Good deal for both sides
This is a win-win for both companies. Korea's automakers are at the bottom when it comes to technology, at least on the Telematics Research Group 2008 Technology Index. Of 43 automakers tested for the availability - integreated or optional - of 62 technologies, Hyundai was No. 36 and Kia was No. 42, ahead of only struggling Isuzu. You're hard pressed to find a navigation system integrated into any Korean car sold in the U.S. and line-in jacks are more common than iPod adapters.

Working with Microsoft, Hyundai should be able to cut down its lead times. While Microsoft hasn't shipped an operating system on time, it does think about time-to-market at speeds that are head-shaking to traditional car electronics suppliers. In other words, as a PC fanatic you may know too much about the downsides of being tied to Microsoft. There are upsides, too. Overall, the deal is good for Hyundai. Plus, Microsoft's Bluetooth compatibility is leading edge. Lots of cars connect to cellphone handsets via Bluetooth, but not all have enough compatibility to transfer phonebooks and make use of all the phone's features. According to the announcement, not only will upgrades came as software downloads - done by the user with a USB key, or at the dealership - but also new features can be added that way.

The Microsoft deal gives Korea Inc. the chance to bypass the $2,000 onboard nav systems that are struggling to get down to $1,500 and possibly go to systems where a simpler but still effective navigation system goes for $500. That would certainly be possible if, for instance, the center stack display was an LCD that was on every car, not just the navigation-equipped models.

Microsoft wins (yes), you win (probably)
Microsoft wins because it needs to new arenas to sell into and cars, like music players and PCs, are chock full of microprocessors that need software and applications. It won't take the sting out of losing Yahoo, but it underscores that Microsoft is a force to be reckoned with inside the car. Already, Microsoft operating systems are used in more than 50 car models around the world.

Car-buyers win, too, because the world Microsoft inhabits is open and competitive (give or take that pesky anti-trust suit). In a car of the future, perhaps the dashboard would be truly open and you could choose a Microsoft Bluetooth module, the IBM ViaVoice recognizer, a Garmin navigation module, and a Toshiba solid state drive to hold the data when you order the car.

A senior executive at a German automaker once told me he fears the day when a car is a four-wheel platform for consumer electronics. "Where's the differentiation going to be?" he asked. Meaning for the automakers. A lot of buyers might reply that if you can knock a couple thousand dollars off the cost of cockpit electronics in a highly optioned car, you could live happily with the outcome.

Signs of progress already
It's not the Hyundai (and Kia, Korea's other automaker selling here) are devoid of technology. Hyundai has a host of safety technology and Car and Driver Editor Csaba Csere once said the Hyundai Sonata is the kind of car you should buy for a teen driver. The upcoming Hyundai Genesis luxury sedan will use a cockpit controller very similar to BMW's iDrive and it's even from the same company, Siemens.