SK Communications, a unit of SK Group, is speeding up its reorganization by spinning off divisions to stay competitive in the portal market dominated by behemoths like Naver.
The company, which runs Nate.com, tried to build up its flagship portal business along with related social media operations but faced stronger-than-expected challenges from existing players led by Naver and Daum.
To focus on its core business, it decided to spin off its Cyworld social media service including the Cymera photo-editing app. Nate.com will also outsource its search function to Daum.
Early retirement programs are underway at the company, which laid off 20 percent of its employees last year to reduce losses. SK Communications failed to turn a profit in the last two years. In the January-September period this year, its losses amounted to 9.3 billion won ($8.8 million).
By Sung Jin-woo, Intern reporter