In September, a significant shift in digital engagement was observed among South Korean users, as American social media giants YouTube and Instagram reported impressive gains in usage, while domestic platforms like KakaoTalk and Naver faltered. According to data from industry tracker Wiseapp, YouTube remained the dominant force, with users spending a staggering 1.8bn hours on the platform last month, marking a 9.5% increase compared to the same period last year, as reported by Yonhap. 

Instagram also celebrated a notable rise, as its combined usage time soared by 42.1% to reach 378mn hours, securing its position as the third-most popular application by usage time. In stark contrast, KakaoTalk, the second-largest platform, witnessed a decline of 3.3%, with users logging 527mn hours. Similarly, Naver, South Korea's leading search engine, faced challenges, experiencing a 9.7% drop in usage time, which amounted to 329mn hours last month.

This shift in user behaviour can be largely attributed to the growing popularity of short-form video content, a trend that both YouTube and Instagram have embraced. Instagram introduced its Reels feature in 2021, while YouTube responded with its Shorts offering, both catering to audiences' appetite for quick, entertaining videos. Industry observers suggest that these platforms have effectively harnessed this trend, encouraging users to spend more time on their services.

In light of these developments, experts are urging South Korean platforms to enhance their own short-form video offerings. An industry official pointed out that domestic players like Naver and Kakao face significant challenges in competing directly with the global reach of Instagram and YouTube in the short-form video arena. To remain relevant, these platforms should focus on improving compensation for content creators, fostering a more engaging environment that could draw users back.

As the landscape of social media continues to evolve, the pressure is mounting on South Korean companies to innovate and adapt. With the current trajectory indicating a preference for global platforms, the question remains whether local services can regain lost ground or if they will continue to cede market share to their international counterparts.