Apple iPhone finally arrived at technology hub Korea amidst helium-filled balloons, flashing strobe lights, a blaring rock band and long lines of people who were waiting for 26 hours.

Korea’s second largest carrier KT Corp. will sell top of the line iPhone 3GS 32 GB at $317 (about 370,000 Korean won) or $38 (about 45,000 Korean won) per month two year plan. The unit becomes free for a $112 a month plan. This is already considered cheap. More than 53,000 units have been pre-ordered.

The arrival of iPhone will shakeup the mobile industry currently controlled by Samsung and LG (world’s number 2 and 3 respectively after Nokia). The two mobile companies share 400,000 smartphone users and 4.7 million regular handset users. SK Telecom, the largest carrier on Korea, already dropped prices for Samsung Omnia to keep up with competition.

The sale of the phone in South Korea is seen on how the iPhone will do well in Asia after the dismal welcome it received in China where a unit is being sold at $1,172.