Twitch intends to close its business down in South Korea on February 27, it said, after finding that operating in one of the world’s largest esports markets is “prohibitively expensive.”

In a blog post, Twitch CEO Dan Clancy said the firm undertook a effort that is“significant to lessen the community costs to use in Korea, but finally the charges to use in Korea had been nonetheless 10 times more costly than generally in most various other nations. The ceasing of businesses in Korea is a situation that is“unique” he added.

“First, we experimented with a model that is peer-to-peer supply high quality. Then, we modified source high quality to no more than 720p. Although We have actually decreased expenses from all of these attempts, our community charges in Korea are 10 times more costly than generally in most various other nations.”

The Amazon-owned service that is streaming it has been operating in Korea at a “significant loss,” and there was “no pathway forward” to run the business sustainably in the country. It’s unclear why network fees is so expensive in South Korea, though Clancy might be alluding to the recent deliberation that is controversial the united states to need technology organizations to cover community expenses.

“I wish to reiterate that it was a really decision that is difficult one we are very disappointed we had to make. Korea has always and will continue to play a role that is special the worldwide esports neighborhood so we tend to be extremely grateful when it comes to communities they constructed on Twitch,” had written Clancy.