After conquering Korea, Cyworld opens in U.S.

Americans can now buy flat TV screens for 14 “acorns.” On Cyworld, that is. After months of trial service, SK Communications began official service in the United States yesterday, local time, of the U.S. version of Cyworld, the largest personal Web site service in Korea. Like its Korean counterpart, American Cyworld users can create free personal Web sites called “minihomes” where they can post text, video, and photo contents. The sites also allow users to create an alter ego called “minime,” and for 10 cents each, users can buy “acorns” ― a kind of online currency ― which can be redeemed for virtual furniture and backdrops for their Web site, or for small “charms” that decorate the corner of the screen. Unlike in Korea, however, acorns cannot yet buy background music; SK is still negotiating with U.S. music distributors for the rights to sell music online. In Korea, songs bought through Cyworld each cost about 100 won, or 10 cents. Some 200 million songs a year are sold this way, making Cyworld the second best selling online music service after Apple Computer’s iTunes. While Cyworld is dominant in Korea, it is a minnow facing the likes of MySpace and Facebook in the United States. With the U.S. market possibly nearing a saturation point, critics are not sure how Cyworld will compete. MySpace, owned by media mogul Rupert Murdoch, has 100 million subscribers, while Facebook has about 7.5 million subscribers in schools. SK Communications’ U.S. arm ― which was set up last year in San Francisco and runs the U.S. Cyworld service ― has fewer than 30 employees. Operators of the American Cyworld, however, believe their service has much to offer. On many U.S. Web sites, Cyworld said, people unfamiliar with computer programming or designing graphics can find it difficult to customize their Web pages. By contrast, Cyworld users can design their homepages through simple clicks of the mouse and by moving images across the page. What’s more, the company said, photo editing tools do not require prior knowledge of Photoshop, perhaps the best known photo editing software. With 76 percent of the U.S. Internet population ― or some 130 million people ― now using personal Web site services, Cyworld is relishing the chance to begin service in the United States to give Americans a taste of what the “original” is like. In China, six months after Cyworld China was launched, 1.8 million members were using the service. Cyworld is also available in Japan and Taiwan. “This is an opportunity to be recognized as a global Internet service company,” said Yoo Hyun-oh, chief executive officer of SK Communications in Seoul. “Based on the unique brand value and the competitive service that Cyworld offers, we will continue to customize Cyworld to cater to the American market.” by Wohn Dong-hee