With Cyworld, which was called the nation's social media (SNS) in the 2000s, announcing plans to revive its services in the second half of next year, interest is growing regarding its potential for success. Cyworld has stated that it will secure competitiveness as "a nostalgic SNS," but after several interruptions and resumptions of service, it is uncertain whether it can generate the same level of buzz as before.
◇ Cyworld, the "original domestic SNS," announces revival plans for the second half of next year
According to industry sources on the 19th, Cycommunication (hereafter referred to as Cycoms) announced this month its new operating plan for Cyworld. Cycoms stated that it is focusing on enhancing usability with the goal of resuming Cyworld services in the second half of next year. In the first quarter of next year, it plans to develop an initial mock-up version of Cyworld and conduct focus group testing (FGT) among internal staff. Additionally, it plans to complete the restoration of the existing vast data of Cyworld in the first half of next year.
Cycoms predicts that Cyworld will secure competitiveness in a market dominated by global SNS platforms like Instagram and YouTube, as it positions itself as a warm and emotional SNS. While inheriting Cyworld's unique sentiment, it plans to introduce features like Minimi, acorns, clubs, and My Home in line with recent SNS trends and usability. In particular, it aims to operate as a personalized SNS centered around My Home, where users can decorate their own spaces, and Club, a chat function that allows interaction with others.
Cyworld was popular for a decade in the 2000s but is a representative case of failing to adapt to the mobile era. Cyworld opened the domestic SNS golden age with a focus on individual account-centered mini-hompages rather than large community concepts. The spread of digital cameras and other historical factors also worked in Cyworld's favor. It secured a stable revenue source by selling cyber money called acorns, which allowed users to purchase items like character decorations and music for their mini-hompages. After being acquired by SK Communications in 2003 and integrating with the PC messenger NateOn, it grew exponentially.
However, the limitations of the content provided by mini-hompages began to be compared to blogs. Although it launched a blog service called Home2 in 2007, it failed. In 2011, as Facebook and Twitter entered the domestic market, a crisis arose when personal information of 35 million Nate and Cyworld members was leaked. Subsequently, as smartphones became widely adopted, the SNS market was reorganized around mobile usage, shrinking Cyworld's foothold. In 2014, it also parted ways with SK Communications.
◇ Recurrent "revival→failure"... Questions about differentiation from global SNS
Market reaction to the news of Cyworld's revival remains lukewarm. According to app analysis services WiseApp, Retail, and Goods, the usage time of Instagram among domestic users from January to October this year reached 22.4 billion minutes, an increase of 6.2 billion minutes compared to the previous year. During the same period, YouTube's usage time reached 108.3 billion minutes, maintaining its position as the most-used app among Koreans.
The recurring interruptions and resumptions of service have also dampened public expectations. In 2016, Cyworld was acquired by the founder of Freechal, but as management difficulties worsened, it reported business closure to the National Tax Service in 2019. In 2021, the new owner Cyworld Jet (Z) acquired Cyworld. Cyworld Z announced plans to expand mini-hompages into a metaverse platform and resumed services in April 2022, but it faced backlash as most major posts were not restored. Eventually, Cyworld suspended services again in August of last year. Subsequently, last month, Cycoms acquired Cyworld data from the existing corporation.
Industry experts emphasize that to prevent repeated failures, Cyworld needs factors that allow it to sustain itself as an SNS, not just nostalgic elements. They argue that if it continues to rely solely on past emotional imagery, it will only capture "fleeting" interest from users in the early launch phase. According to real app statistics analysis platform Mobile Index, the number of monthly active users (MAU) surged to 3,818,395 during the service resumption in April 2022. However, at the time of service termination, MAU had plummeted to 630,000.
Additionally, attracting new users, especially the key user demographic of individuals aged 10 to 20, is crucial. To do this, it must compete with global SNS platforms that offer various functions such as communication, gaming, and shopping.
An IT industry official stated, "Cyworld's nostalgic marketing will not resonate with the 10 to 20 age group, which comprises the main user base of most SNS platforms, and the 30 to 40 age group is also experiencing fatigue from repetitive marketing." They added, "To maintain medium- to long-term services, Cyworld seems to need a decisive factor that is uniquely its own."