Twitch to Close South Korean Operations by Feb 2024 Due to High Costs

Twitch has announced it will be closing its operations in South Korea by February 27, 2024 due to prohibitively high operating costs.

In a statement, Twitch CEO Dan Clancy explained the difficult decision was necessary as network fees in South Korea are around 10 times higher than most other markets, making continued operations financially unviable.

Despite efforts to reduce costs through measures like limiting stream quality and experimenting with peer-to-peer streaming, Twitch has been losing money in South Korea for some time. However, Clancy stressed this closure only impacts the South Korean market due to its extraordinary expenses.

Twitch recognizes the disappointment this will cause its loyal community of streamers and viewers in South Korea, especially content creators who have invested in building audiences. To support a smooth transition, Twitch will work closely with affected streamers to help them find new platforms and reach out to alternative services in the country.

A timeline was provided for the shutdown process:

- December 2022: Announcement of February 2024 closure.

- February 2024: South Korean streamers can no longer monetize and local viewers blocked from purchases.

- March 2024: Final payouts for South Korean streamers.

- June 2024: South Korean Affiliate and Partner accounts off-boarded.

While Twitch's time in South Korea ends due to financial challenges, CEO Clancy expressed gratitude for its role in the international esports scene. The closure's global impact will be felt as these timelines are enacted.

Going forward, Twitch remains committed to supporting streamers and their communities through this difficult transition period to new platforms. Nevertheless, high costs ultimately forced the conclusion of its South Korean operations.