SNS has already been popular in Korea with Cyworld, which has existed in Korea since 1999. Now, globally representative SNS services such Facebook and later Twitter has begun to enter the Korean market. However, Facebook had failed to be widely adopted in Korea, while the more recent emergence of Twitter has been starting to gain ground. I believe this pattern is likely to continue for both Facebook and Twitter, because SNS rely on the spread of active users, and also partly due to the language barrier of “English”. However, in the long term, SNS in Korea should not and cannot remain remote from the English based worldwide SNS, hence it is early to determine the ultimate future of global SNS platforms such as Facebook and Twitter in Korea.

Why not Facebook?
Despite the fact that Facebook has more than 400 million users worldwide, it has faced a tough game in Korea due to the already dominant SNS, Cyworld. SNS popularity relies on the quantity of active users available within the network, and Cyworld has certainly managed to account for most of the Korean users. It has also been made to fit the taste of the Korean majority with decorateable avatars and homely features that are simple and attractive. Moreover, because people have already become accustomed to Cyworld with ready established networks, they find it cumbersome to readopt the facets of Facebook which are quite different and hence ‘complicated’ for Korean users. Hence, switching over Korea’s already massive Cyworld users base to Facebook would be difficult and unlikely in the foreseeable future.

Cyworld (above) vs Facebook (below)

Then, why yes to Twitter?
Twitter on the other hand has been gaining ground from quite early on. There had been no previous Korean SNS that gave such microblogging services that allow quick, short, no-pressure, real time sharing of information before Tweeting emerged in Korea. Furthermore the rising spread of Smartphone usage in Korea has made Tweeting much easier and mobile, hence encouraging instaneous posting of Tweets.
Later Korean versions, such as Naver’s Me2day and Twittpop(an Korean SNS app) has been developed. The Twittpop app even has added features such as posting through smartphone pen recognitions and GPS use. However, Twitter has already gained significant ground with the Korean user base, and though the localized version seem to be viable, it is perhaps more likely that Koreans are going to continue to build on the internationally large user base of Twitter. It could be one of the few global SNS to succeed in Korea in a long time, since blogs first began. Twitter has been already formatted for the Korean language, and especially with notable expansion of Tweets during Korea’s recent election season(an attempt to revive Obama’s Twitter effect), a significant number of tweeters have been accumulated in Korea. Many Koreans also have much interest in following up on international(or Hollywood) celebrities, politicians, and figures, and because the Tweet are much shorter, lighter, and easier to follow, Twitter perhaps reduces the language barrier.

Twitter (above) vs Me2Day (below)

What should the future for SNS in Korea be?
In Korea, local internet services are currently very competitive and dominant; Cyworld over Facebook, Naver over Google. Perhaps because those local services almost perfectly meet up to the preferences and taste of Koreans, and partly due to the differentiated structure of search engine in Korea that is limited to its associated data base, instead of the entire web.
However, as a tech-savvy, developed country, Korea’s SNS culture should not and cannot stay remote and away from the English based worldwide SNS platforms. People will increasingly seek to go beyond Korea, and connect with people on an international level. Even though, the English language barrier has made many Koreans reluctant to use English based SNS until today, there have been increments in people who are willing to take that chance. Moreover, with an almost obsession in learning and improving one’s English in Korea, there still remains to be promising possibility for global SNS such as Facebook in the longer term. Hence though Twitter seem to be more likely of success in the Korean market compared to Facebook, ultimately global SNS should be adopted in the future of Korea.

Even in a tough economy there is a Korean venture firm, Nurien Software, into which nearly 25 million dollars investment has been made from Silicon Valley and China venture capital investors who saw a great growth potential of 3D socail networking service being converged with various services, contents, and softwares.

“Nurien is a new category of social networking service where we can give our users more powerful ways to express their identities by enabling them to create their own unique avatars, fashions, 3D objects, legacy media (such as photo, video, and text) and share them with the world via their own 3D rooms that are accessible from a web-browser as well as our software clients.” www.Nurien.com

Nurien differentiates itself further from other 3D social networking services by utilizing Unreal Engine 3, a development framework for Xbox 360, PlayStarion 3, etc. to transform 3D social networking in order for users to interact, network, and play games with their personalized 3D avatars. The avatars can move realistically and appear more lifelike, showing each component such as earrings, necklaces, ties, gloves, etc. moves independently.     

Also, Nurien has planned to offer social activity applications to help users interact with each other.

“MStar is an online music dance game similar to game interface such as Guitar Hero or Dance Dance Revolution(DDR). Runway is an innovative fashion show application, players will follow certain rules and various themes to create their own clothing line and compete on a virtual fashion show-where other users within the community will watch and vote online. QuizStar is a casual online game and it is a great way to have fun with friends and meet new people.” www.Nurien.com

I wonder whether Nurien, 3D social networking service, will make inroads into online communities like Cyworld in South Korea by creating a new category of a social networking service. For me it would be an exciting experience to have.

I picked 2008 top 10 news at Korean Technology market as follow.

1. WIPI is gone

As I posted already, KCC released the duty of loading WIPI by next  April. This will affect mobile operator as well as mobile device manufacturer. It seems to be more foreign mobile device like iPhone or Blackberry will be launched in Korea next year due to this releasing.

2. Global companies rush to Korea

Beginning from Youtube’s expansion to Korea last January, Myspace and Facebook also extended their business to Korean market this year. Youtube Korea currently ranked top 10 among Korean video site, as well as ranked top 5 during the candlelight vigil on May. Google Korea initially launched localized service as map service in Korea and merged Korean internet company, TNC. EA, I think, is doing business in Korea pretty well and merged Korean game comapny, J2M recently. However, Myspace and Facebook have suffered in Korean market, while Cyworld, the leading SNS in Korea, is having 20 million unique visitor per month.

3. Touch screen phone makes huge hit

Even though Apple’s iPhone didn’t come to Korea, phone having similar feature like iPhone hit the Korean mobile market. Samsung’s Haptic has been sold more than 1.5 million for 8 months and LG’s touch UI phones also have been sold a lot this year inspite of their high prices.

Touch UI appealed to customer becuase of easy interface to use not only phone itself but mobile internet. And now these trends are continuing to interets for smart phone. While KCC recently announced to release the duty of loading WIPI on the mobile phone by next April, the interests for smart phone such as iPhone or Blacberry is getting bigger than before. I guess that touch screen phone wave in mobile market will continue to smart phone next year.

4. IPTV is rising

From last November, the first commercial IPTV service, KT’s Mega TV has began in Korea. Actually many experts thought that it would be difficult to launch commercial IPTV service this year because broadcasting agreement between broadcasts and IPTV providers was facing rough. However Korean government eager to make IPTV successful as Korean next growth engine, other IPTV operators also will provide commercial service by next January.

5. VoIP is becoming the Defacto

I also posted about VoIP market growth in Korea previously. As number portability for VoIP has began, VoIP for home market has increased and is forecasted to grow more next year. As following chart, PSTN subscribers are decreasing and expected to get decrease more and more while people are moving to VoIP.

VoIP will displace PSTN eventually. This threatens KT, the leading player in PSTN market, but gives an opportunity to other players such as LG Powercom and SK Broadband.

2008 Top 10 news is continued at Part 2. Click this here to read.