[Interview] Jung Suhyun, CEO of SpaceCloud
1.05 Million Members Including Practice Rooms, Party Rooms, Studios... Positive Response from MZ Generation
Demand for K-Dance Practice Spaces Overseas, Exploring Potential for Global Expansion
[Asia Economy Reporter Kim Jong-hwa] "K-Space can become an export product that surpasses the popularity of K-Pop."
Jung Soo-hyun, CEO of SpaceCloud (pictured), emphasized this by saying, "Korean-style space-sharing services can be branded as 'K-Space'." According to CEO Jung, K-Space is "a unique shared space in Korea that has been reborn by adding culture to spaces that were previously undervalued."
About 80% of the customers of the space-sharing service platform SpaceCloud are from the MZ generation, aged 10 to 20. Recently, the most in-demand spaces in the space-sharing service, which have become representative of K-Space, are practice rooms, party rooms, and shooting studios. The most popular spaces, practice rooms and party rooms, are mainly used by the MZ generation, while shooting studios are primarily used by office workers in their 30s and 40s.
Thanks to the popularity of related programs such as Mnet's entertainment show "Street Dance Girls Fighter," demand for practice rooms has exploded. SpaceCloud's analysis shows that dance clubs, theater and singing clubs, and students in arts and physical education fields visit practice rooms for group projects and the like.
Party rooms are symbolic spaces for the cost-conscious MZ generation. They rent party rooms, order delivery food, and enjoy watching Netflix together for the day. Party room vouchers are even considered one of the best birthday gifts. Shooting studios have become spaces mainly used for Instagram profile photo shoots, one-person online businesses, and famous YouTubers.
Founded in 2014, SpaceCloud received 1.7 billion KRW in Series A investment from Naver in 2016. As of the end of last year, the cumulative number of members exceeded 1.05 million, cumulative space listings reached 50,000, cumulative transactions hit 3 million, and cumulative transaction value surpassed 70 billion KRW. The year-over-year growth rate of transaction volume and value is steep, exceeding 50%.
Exports are expected to be possible soon. As K-Pop gains popularity, demand is increasing mainly in Southeast Asian countries such as Vietnam for spaces to practice K-Pop and K-Dance.
CEO Jung said, "There are quite a few locals exploring SpaceCloud's overseas expansion," adding, "We are commercializing 'K-Space,' a Korean 'room' culture including party rooms and practice rooms. We expect to enter overseas markets this year."
Domestically, more advanced products are being prepared. They are planning houses where people can live with pets and houses where people with the same culture or hobbies can live together.
CEO Jung said, "SpaceCloud, which is currently pursuing Series B investment, has a corporate value of about 30 to 40 billion KRW," adding, "In 3 to 4 years, we expect to raise the corporate value to 100 to 150 billion KRW and attract investments of about 10 to 20 billion KRW."
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