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As I read the article it is more about the military's access to the source code, as opposed to protecting local businesses in this case, therefore they allow android which is open source.

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Think this is more related to the fact that Android has a very plugable Device Management feature, that allows remote wipes, etc. iPhone has similar features but not as enterprise-friendly.

I agree with it. If Apple supports Device Management scheme, S.Korea Military won't prevent iPhone. Actually not just iPhone but all other phones that MDM cannot be installed.

Apple iPhone has supported MDM for years: http://www.apple.com/iphone/business/integration/mdm/

This should be the top comment on this article.

S.Korea bans phones that do not support MDM. iPhone supports MDM. Therefore iPhone is banned anyway.

But I don't think the military would be entrust there security on the Apple Push notification service. Also any military would always be skeptical unless they have access to the whole source code.

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