Posted : 2008-03-07 10:30
Updated : 2008-03-07 10:30

SK Communications Decides to Close European Unit

SK Communications Co., the operator of South Korea's online networking portal Cyworld, said Friday it has decided to withdraw its European unit because of sluggish prospects due to strong regional competitors.

The decision to liquidate Cyworld Europe was made at a board meeting on Thursday due to strong performances by similar services such as StudiVZ and Skyrock, SK Communications said.

In 2006, SK Communications launched its European subsidiary Cyworld Europe together with Germany's T-online, a subsidiary of Germany's Deutsche Telekom, to introduce its popular flagship Cyworld service.

Cyworld is South Korea's largest online community service similar to in the United States. Around 18 million people run their blog-style homepages on the site, uploading photos, comments and other multimedia contents.

SK Communications added that it plans to review the business strategies of its five other overseas units including those in the U.S., China and Japan to streamline global competitiveness.

"(We) will strengthen investments in subsidiaries that show growth potential and profitability," Park Sang-joon, chief executive officer of SK Communications, said.
  • 1. Choi lures Japanese actor to 'Tiger'
  • 2. Police seeking to shut down porn site Soranet
  • 3. Force with SM after EXO's 'Star Wars' push
  • 4. 'UFC Seoul will be an exclamation point'
  • 5. Abusive ex-professor gets 12 years in prison
  • 6. Farewell to champion of democracy
  • 7. Ex-President Kim Young-sam's funeral takes place
  • 8. Baseballer gives 110 million won to charity
  • 9. Only Park can clean up mess about Lockheed deal
  • 10. Park skips state funeral due to bad health