Okay for most of you that say that the unlocked iphone will work in Korea when using Korean sim card, it will not work at all even if it's officially unlocked. Here is the reason. All phones in Korea have their IMEI number and is registered to the Korean network, so a foreign phone whether it's an iphone or unlocked phone of any kind, it will not work in Korea because Korean network will recognize it that it's a foreign IMEI and that it won't let you connect.
However as my previous post, my mom's cousin works in KTF and owns 6-7 stores, and I have talked to him about my iphone that was purchased in U.S, and see if it can work, even my cousin asked. He told me that it is possible for them to unlock and have it work in Korea (yes it will void warranty), I would have to take it to some place that does this, of course they will charge you, they will then change the IMEI on your iphone and register you a new IMEI so that it is registered to the Korean network and that your iphone should work( keep in mind that most korean phones do not show their IMEI numbers to their customers). Yes Korea actually uses a different system then anywhere else in the world but that's how it is.
If you go on this link, if you read few threads you will find out why.
http://forums.macrumors.com/showthread.php?t=536457
I'm not sure if she still plan on getting the iphone 4, but if she does she can google or use naver.com where to look to change the IMEI because that is the only way to get the iphone purchased from other country than Korea to work. factory unlocked iphone, soft unlocked iphone will not work with Korean network without the approval of the IMEI number.