Korea. The console will also have a video on demand service in the country. The console reportedly costs 518000 won (approximately US $558).
Those interested in checking out the launch party can see a gallery at Ruliweb here. Three hours prior to launch, the crowd isn't nearly as big as the console's release in other regions, but bear in mind South Korea gamers are not too keen on consoles, showing more fondness for MMOs, Starcraft and other titles playable at internet cafes. And to be fair, the crowd does grow to a respectable size at the zero hour.
[Via PS3 Fanboy, Forums]