Why is Twitch Shutting Down In Korea? What Does Twitch Say?

Video streaming has become a trend in these digital times. It has changed the way that gamers used to be treated. Gaming became a whole career when streaming on YouTube became a thing. However, apps like Twitch took over the whole gaming scenario. These gaming platforms are a home and a workplace for gamers. But why is Twitch shutting down in Korea, and what will happen to people who are already running an established gaming brand?

Twitch announced on 5 December 2023 that they will be discontinuing their services in South Korea beginning on 27 February 2024. With this information, they also expressed grief regarding this decision and conveyed their misery to the streamer community of South Korea. Also, humbly, Twitch promised that they would find the suffering streamers a new home, even if it is not Twitch.

Read this article till the end to read why is Twitch shutting down in Korea and what the plans are for Twitch streamers in South Korea. You will also get to know what is to be done by streamers who were already earning on Twitch.

Why Is Twitch Shutting Down In Korea?

Twitch regretfully informed its streamer community in South Korea that they will be shutting down their services there due to high operating costs. In the article where Twitch provided an update on their situation in South Korea, they mentioned more than once about facing ten times higher operational costs and network charges compared to any other country. While expressing their disappointment in this decision, Twitch also said that they plan on providing an alternative to devoted Twitch users in South Korea.

If you are from Korea or even know a little about network providers there, you might already know that there are only three big Telecom companies in Korea. These companies control the economy in an impactful way as they completely control the Internet. Twitch also limited its video resolution in 2022 to save itself from high operational costs, but clearly, that did not work. This was during the rapidly booming scenes in the esports industry. Another example you can consider is Netflix and SKBrodband’s legal dispute.

As per the latest Twitch update, Twitch users must have received the email updating them on the current situation and also informing them that Twitch will not accept new users from South Korea. After today, other streaming services might announce their welcome program organized to support Twitch users. During this welcome program, existing Twitch users will be able to join with nothing but their sharing links. While Twitch has made it clear that their services will be discontinued in South Korea, users might still receive promotion emails.

Be sure to cancel your Twitch subscription and cancel the auto-renewal option to avoid recurring renewal charges. 

Users who are expecting payment from Twitch should make sure that their payout information is complete and verified. Make sure that your payout status is marked as payable after you have updated the payout information. Twitch streamers who have moved out of South Korea but still have the same location selected in their Twitch accounts are also advised to update this information to avoid any inconvenience.

March 16, 2024, has been set as the final payout date. Streamers who have pending payouts will receive them even if the amount is less than $50 on the date of payout. All you have to ensure is that your payout details are complete and verified in account settings. On June 4, 2024, Affiliates and partners registered from South Korea will be off-boarded and lose their affiliate status.

If you are unable to make any changes to your Twitch account, I advise you to reach out to Twitch customer support right away.

Why Does Korea Have Such High Internet Costs?

There is no single reason that makes Korea so tough to provide for, but still, many streaming services are facing difficulties in providing a stable service there. There are a couple of different factors that have caused this issue. These factors are given below:

1. Domination By Existing ISPs

As I mentioned before, network services in South Korea are controlled by three major carrier companies. SK Telecom, KT, and LG Uplus are the only network providers with zero competition. This allows them to influence network charges in South Korea and maintain higher network fees.

2. Interconnection Fees

SPNP restricts international companies like Netflix from providing their service in South Korea without paying interconnection fees first. This fee is essential for internet companies to connect with these ISPs as SPNP restricts direct connection from these companies to users.

3. Infrastructure Costs

While building and maintaining telecommunication infrastructure is not a cheap task, network companies in South Korea pinned these costs to be the reason for their high charges. However, according to some experts, these infrastructural costs are not as high as international companies are being charged. Also, I read a Reddit user explaining this to be caused by a lack of net neutrality. 

Wrapping Up

While researching why is Twitch shutting down in Korea, I was able to read a lot of comments and user reactions. From what I can accumulate, users are highly disappointed, and I can’t even mention despair in the comments of people who use Twitch. I read somewhere that this has happened because Naver in Korea is planning to introduce its own Streaming service. While these are all only rumors, You can count Twitch’s situation as proof.

Plus, Netflix also tried to stand against these norms but failed and had to become partners with SK Brodband. This is enough for me to believe that there is something unusual in the network regulation in South Korea.

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