Twitch announced that it will end its operations in South Korea by February 27, 2024. The company blamed the high and complicated network costs in the country for its decision.
According to Twitch CEO Dan Clancy, the company has been facing difficulties in delivering a satisfactory service to its South Korean users because of the expensive and complex network environment. The company tried to reduce these costs but found no sustainable way to run the business in that country.
“We understand that this is extremely disappointing news, and we want to explain why we made this decision and how we are planning to support those impacted,” Clancy said in a statement posted on the company’s website.
South Korea is known for having one of the fastest internet speeds in the world. However, it also has one of the most expensive internet services in the world, according to a 2020 report by Cable.co.uk, a global broadband comparison site.
Twitch’s departure from South Korea will have an impact on the country’s thriving gaming industry. South Korea is home to some of the most successful esports teams and players in the world. Twitch has been a major platform for them to stream their games and interact with their fans.
However, Twitch is not the only streaming platform in South Korea. There are local platforms like AfreecaTV that cater to the South Korean gaming audience. These platforms are likely to gain more users and viewers after Twitch’s exit.
“I want to reiterate that this was a very difficult decision and one we are very disappointed we had to make. Korea has always and will continue to play a special role in the international esports community and we are incredibly grateful for the communities they built on Twitch,” Clancy added.