The 500 Billion Won Sale Legend of the GIF Market, Companies Are Paying Attention

Short Looping Moving Images Gain Spotlight as 'Golden Market' via SNS
Korean-founded GIF Search Platform 'Giphy' Sold to Facebook for 500 Billion Won

[Asia Economy Reporter Kim Heeyoon] The world is paying attention to moving image files (GIFs), commonly known as "umjjal." Recently, with Facebook's acquisition of the GIF search platform "Giphy," umjjal has emerged as a powerful market content.

On the 15th, the daily Wall Street Journal (WSJ) and internet media Axios reported that the world's largest social media company, Facebook, acquired Giphy. The GIF search platform, started over a weekend with intense focus by Korean-American Alex Jung and Jayce Cook at BetaWorks, a leading startup incubator in New York, was acquired for about 500 billion KRW (400 million USD), drawing attention from the innovation ecosystem.

Celebrating its 33rd anniversary this year, umjjal began as anti-cut (jjalbang) images on internet sites and rapidly rose as essential content in the SNS era. According to Giphy's statistics, over 500 million users search and use more than 10 billion umjjal daily. In terms of search volume alone, it ranks just behind Google. Facebook announced plans to closely integrate Giphy's services primarily with Instagram.

Domestic companies are also showing strong interest in umjjal. Naver Snow's sticker platform "Stickery" allows users to create and share their own stickers and umjjal, increasing its user base mainly among Generation Z (teens to twenties). As of last month, it surpassed 64 million global cumulative users and 20 million monthly users, proving the expansion potential of the umjjal market.

Outside of SNS, companies continue to utilize umjjal on websites. Korea Center, a global e-commerce total solution company, has introduced GIF optimization features from CDN (Content Delivery Network) company Akamai to stabilize its website. A Korea Center representative said, "As GIF usage increases mainly in shopping malls, we aim to provide a service optimized for GIFs stably without traffic delays."

With the popularization of umjjal through SNS, corporate interest in umjjal is rising not only in the entertainment industry but also centered on online commerce platforms. Attention is focused on whether the combination of the world's largest social network service and the GIF search platform will become a catalyst for the expansion of the domestic umjjal market.