Twitch to shut down in South Korea due to high costs

(Reuters) – Amazon’s streaming unit Twitch on Tuesday said it will shut down operations in South Korea in February next year, due to high operating costs and network fees.

“Twitch has been operating in Korea at a significant loss, and unfortunately there is no pathway forward for our business to run more sustainably in that country,” CEO Dan Clancy said in a blog.

Network fees in Korea are still 10 times more expensive than in most other countries, he said, adding that the company spent significant effort working to reduce operating costs to remain in business.

Twitch had laid off more than 400 employees in March after its user and revenue growth did not meet expectations.

(Reporting by Gnaneshwar Rajan in Bengaluru; Editing by Varun H K)