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What’s happening in South Korea? We’re back with another dose of Inquivix Insights! The country of South Korea is a hotbed for digital innovation and entrepreneurship. This has made the South Korean Market a highly competitive one with companies setting new trends. This time, we take a look at the latest trends in eCommerce, social media, and digital marketing from South Korea and the world.
1. Meta Officially Releases Short-Form Video: “Facebook Reels”
The Facebook app has now been updated with the new short-form function ‘Reels’ by Meta. The Reels function has already been tested on Facebook’s feed. With this formal debut, Facebook Reels will be accessible in more than 150 countries. Users will soon be able to share Reels on Facebook’s Stories as well as their own user feeds, according to the company.
2. “Musinsa” Vs “Kream”: Battle of Counterfeit Luxury T-Shirts
Kream, the resell platform by Naver, and the fashion site Musinsa are involved in a “counterfeit luxury goods” dispute. Kream claimed that the expensive T-shirts imported and sold by Musinsa were “counterfeit goods.” This dispute has evolved into a legal battle between Naver, a well-known powerhouse, and Musinsa, an up-and-coming powerhouse.
3. Meta Increases Monetizing Tools for Creators
With the official launch of Reels, Facebook has announced that it will pay up to $35,000 per month to creators who meet certain conditions through the “Reels Play Bonus Program.” In addition, Reels’ “Overlay Advertising” will be introduced to users in the United States, Canada, and Mexico at the initial stage. Creators will be able to earn banner and sticker advertising from Facebook Reels through this.
4. Naver and Kakao Compete to Lead the “Text Content” Market
Following the battle for leadership in the intellectual property sector, such as webtoons and web novels, rivalry between the two South Korean giants in the text content industry heats up. Naver and Kakao have shown their interest in promoting text-based content through subscriptions. These two companies are pushing “subscription platforms” due to the notion that maintaining the upper position in the text content sector is critical for attaining regular traffic and advertising income.
5. Netflix Introduces “Fast Laughs” for TV
Netflix is introducing the “Fast Laughs” feature that provides short-form videos for TV. It has already been available on mobile. Fast Laugh is a service that provides short-form videos like TikTok, Reels, and Shorts. Releasing Fast Laughs for TVs is a strategy to target the MZ generation, the main consumer of Netflix.
6. Kobaco and Naver Support Live Commerce Sales Channels for Small and Medium-Sized Businesses
Kobaco and Naver have announced a commercial agreement, under which they will share infrastructure know-how to assist small and medium-sized enterprises and company owners in easily entering the live commerce market. Kobaco will provide broadcast planning and post-analysis reporting, as well as one-on-one consulting. Naver will provide live commerce-related advertisements and marketing education.
7. Hospitality App Agrees to Set Standards to Sponsored Ad Placements
The Fair Trade Commission (FTC) revealed that Yanolja and Yeogiuhtte Company, which runs hospitality apps, has specified the exposure standards for advertising in the contract. The decision was also made to always make this information available on the company website. The firm agreed to make changes in response to the Fair Trade Commission’s recommendations. In the future, it will be simple for lodging companies to identify where their sponsored advertisements are placed on the app screens. The hospitality app may be held responsible if the present placement restrictions are broken. After paying millions of won for advertising, obtaining correct information has gotten a lot easier.
Meta has launched Facebook Reels globally competing with other short-form video apps while allowing creators from some regions to monetize their reels. Netflix has also made a move to introduce its short-form videos “Fast Laughs” for TV. While these are happening globally South Korean eCommerce giants Musinsa and Kream have started a battle about counterfeit goods.
Naver and Kakao continue to compete for the lead in the subscription content market in order to secure user traffic and advertising. While competing with other eCommerce platforms, Naver has joined Kobaco to facilitate small and medium entrepreneurs to establish live commerce marketing. With the recommendation of FTC, Yanolja will set standards for its advertising placements with more transparency. That’s all for today from South Korean digital marketing.