Cyworld

Cyworld

Cyworld minihompy
URL	cyworld.co.kr (Korea) cyworld.com.cn (China)
Type of site	Social network service
Available language(s)	Korean, Chinese
Owner	SK Communications

Cyworld
Hangul	싸이월드
Revised Romanization	Ssaiwoldeu
McCune–Reischauer	Ssaiwŏltŭ

Cyworld (Hangul: 싸이월드) is a South Korean social network service operated by SK Communications (Hangul: SK커뮤니케이션즈),^[1] a subsidiary of SK Telecom (Hangul: SK텔레콤).

Members cultivate relationships by forming Ilchon (Hangul: 일촌, Hanja: 一寸) or "friendships" with each other through their minihompy.

Avatars and "mini-rooms",^[1] small, decorate-able, apartment-like spaces in an isometric projection,^[2] also feature. All of this can make for a Sims-like experience.^[3]

The "Cy" in Cyworld could mean "cyber" but is also a pun on the Korean word for relationship (Hangul: 사이 'between').^[1]

Revenue is generated through the sale of dotori (Hangul: 도토리), or "acorns",^[4] which can then be used to purchase virtual goods,^[2] such as background music, pixelated furniture and virtual appliances.^[1]

Cyworld also has operations in China and Vietnam.^[5]

History

Cyworld control room in Seoul, Korea. Operation of the site is monitored here by the staff of SK Communications.

Launched in 1999,^[6] Cyworld was purchased by SK Communications in 2003^[1] and became one of the first^[4] companies to profit from the sale of virtual goods.^[2]

Cyworld soon became wildly popular in its home market with 2005 claims that practically every South Korean in their 20s^[7] and 25 percent of the total population of South Korea^[8] were users. By 2006 its domestic user-base numbered 19 million,^[9] but this had dropped to 18 million by 2008.^[10]

Its reception in some overseas markets did not prove as enthusiastic, and by 2010 Cyworld ended its operations in Germany, Japan and the United States.^[5] As of 2009, it continues to provide service to the Chinese and Vietnamese markets where it has subscriber bases of seven million and 450,000, respectively.^[5]

Virtual goods

In 2006, 80% of Cyworld's Korean income was generated from the sale of virtual goods.^[11]

Failed US entrance

Believing that many US teenagers would use multiple social networks^[11] and seeking early access to a then-quickly growing market,^[12] Cyworld entered the US market in 2006.^[12] It shut down in February, 2010.^[5]

Failed European entrance

In 2006, Cyworld entered a joint venture with a German Deutsche Telekom subsidiary, T-online,^[12] and it launched its European version a year later.^[13] But strong competition, including StudiVZ and Skyrock, and a saturated market made for dismal future prospects, and by 2008 it had closed operations.^[10]

NateOn

Cyworld collaborates with NateOn, a widely used instant messenger service in Korea. If Cyworld users buy fonts with dotori in Cyworld, they can use those with NateOn, too.

Dotori

Cyworld uses its own virtual currency called dotori (Hangul: 도토리), or "acorns".^[2] One dotori costs 100 won, and they are used to purchase virtual goods.^[2] Prices vary from about 2 acorns for a wall painting or 6 acorns for a song that plays in your mini-room to 40 and above for a background for your homepage for a year.^{[citation needed]}

Effect on Internet culture

Cyworld had a big effect on Korea’s Internet culture. Many renowned Korean socialites and celebrities possess Cyworld accounts.

In the media

In 2006, Cyworld received the Wharton Infosys Business Transformation Award^[14] for being an organization that has made the best use of IT for transformation.^[15]

See also

• Nate
• SK Communications

References

1. ^ ^{a b c d e} Cyworld ready to attack MySpace money.cnn.com, July 27 2006: 11:35 AM EDT
2. ^ ^{a b c d e} E-Society: My World Is Cyworld businessweek.com, Sep 26, 2005
3. ^ Koreans Find Secret Cybersauce wired.com, 08.08.05
4. ^ ^{a b} Tapping into growing market for virtual goods seattlepi.com, November 2, 2009 9:56 p.m. PT
5. ^ ^{a b c d} Korean SNS Cyworld To Withdraw From U.S. and Taiwan telecomskorea.com, 2009/11/09
6. ^ Evolution of Social Network Service into Media -Cyworld Case- October 2008 Posted on ica-it.org, A SK Communications slide-show presentation from 42nd International Council for Information Technology in Government Administration Conference in Korea in 2008
7. ^ "Koreans cybertrip to a tailor-made world". The Age. 2005-05-09. http://theage.com.au/articles/2005/05/06/1115092684512.html. 
8. ^ "Will Cyworld Stop MySpace Juggernaut?". GigaOM. 2006-04-16. http://gigaom.com/2006/04/16/will-cyworld-stop-myspace-juggernaut/. 
9. ^ The high priestess of internet friendship ft.com, October 27 2006
10. ^ ^{a b} SK Communications Decides to Close European Unit koreatimes.co.kr, 03-07-2008
11. ^ ^{a b} Social network sites battle to befriend US teenagers ft.com, December 20 2006
12. ^ ^{a b c} Korean site tackles might of MySpace ft.com, August 31 2006
13. ^ Cyworld Opens German Site Last Week koreatimes.co.kr, 10-18-2007
14. ^ Past Winners of the Award Infosys Official Site
15. ^ Wharton Infosys Business Transformation Award (WIBTA) Infosys Official Site

External links

• Cyworld Official Websites: (South Korea / China / Vietnam / Global)