Unfortunately, it seems to be true. The State Department REALLY needs an overhaul.
INSTRUCTIONS FOR THE 2005 DIVERSITY IMMIGRANT VISA PROGRAM (DV-2005)
http://travel.state.gov/dv2005.html The annual DV program makes permanent residence visas available to persons meeting the simple, but strict, eligibility requirements. Applicants for Diversity Visas are chosen by a computer-generated random lottery drawing. The visas, however, are distributed among six geographic regions with a greater number of visas going to regions with lower rates of immigration, and with no visas going to citizens of countries sending more than 50,000 immigrants to the U.S. in the past five years. Within each region, no one country may receive more than seven percent of the available Diversity Visas in any one year.
List of countries eligible include:
Iran
Syria
Yemen
N. Korea
But S. Korea, India do not qualify.