Next year, the domestic social media (SNS) Cyworld will be relaunched. This is the second relaunch since its predecessor 'Cyworld 2.0' was halted last year. Unlike existing SNS that emphasize openness, Cyworld plans to leverage a user-centered service as its main weapon. It aims to secure more than 9.5 million monthly active users (MAU) within three years, including future integration with gaming services.
Cyworld is an SNS that was popular among people in their teens and twenties in the early to mid-2000s. After being acquired by SK Communications in 2003, it maintained its leading position for several years. However, as the online platform landscape shifted toward mobile, Cyworld's revenue, which was web-based, began to decline sharply. The platform faced setbacks after the incident in 2011, where personal information of 35 million users was leaked, and it gradually fell into decline, ultimately suspending its services in 2019. Though Cyworld Jet, a special purpose company (SPC) established for the relaunch of Cyworld, revived the service in 2022, it was halted again after a year. It is cited that the failure was due to operating the service without completing the restoration of previous data due to technical issues.
Cyworld's operator, Cycommunication (Cycomz), held a press conference on the morning of the 11th at the Ferum Tower in Euljiro, Seoul. Cycomz is a corporation established in September to acquire Cyworld. As of last month, it has finalized the acquisition of Cyworld's operating rights and assets from Cyworld Jet.
Ham Young-cheol, CEO of Cycomz, noted, 'Due to excessive openness of existing SNS like Facebook and Instagram, users are feeling fatigued.' He explained that 'unknown individuals can freely view my posts anonymously.' He further added, 'While working in the IT industry, I felt there was a demand for personalized SNS services, leading to the strategy of focusing on this area.'
Cycomz plans to complete the restoration of previously held data by the first quarter of next year and officially launch the service in the second half of the year. CEO Ham stated, 'We have taken over 32 million members and 17 billion photo data from the previous entity' and added, 'A budget of 5 billion won will be allocated for the service relaunch work, including data restoration, and we will announce the status of the restoration upon completion.'
Cyworld plans to provide the 'My Home' and 'Club' services, which are focused on personal records and meaningful interactions. My Home serves as the application's first screen and user’s personal space for writing and managing photos and posts. The club service is a community where multiple users gather, primarily operated through chat. Cycomz indicates that My Home and the club service can organically connect to facilitate interactions between individuals.
The avatar 'Minimi,' which was a symbol of Cyworld, will transition from its existing dot design to a 3D design. Additionally, there are plans to introduce features that allow users to customize Minimi according to their tastes and personalities.
Cycomz plans to integrate gaming services into Cyworld by 2026. This is a monetization strategy devised by CEO Ham Young-cheol, who oversaw content production at various gaming companies, including Pearl Abyss and Two Baht. He explained, 'Facebook and the Russian portal Yandex have also boosted their revenue through gaming services using their existing user base,' noting that 'we aim to complete integration of gaming services within two years and achieve 9.5 million monthly users, which will then push for global market entry in 2028.'
However, Cycomz has stated that concrete plans to overcome the limitations of scalability due to personalized services have not yet been established. CEO Ham affirmed, 'Just as Telegram, which emphasizes security and closure, was able to expand its services quickly, we do not believe that personalized services will hinder user acquisition.'
Cycomz has also distanced itself from the financial issues and potential business ties of Cyworld Jet, the previous service-holding entity. CEO Ham clarified, 'Cycomz is not related to the debts incurred while Cyworld Jet was operating the service,' adding, 'We are also not considering the virtual currency business that Cyworld Jet had envisioned.'