Microsoft has partnered with South Korean hardware designers SK Communications (SKC) to develop online communications service applications and platform upgrades.
The companies will work together to create new online service models in the areas of social networking and user-created platforms.
The companies will be conducting joint R&D at SKC's headquarters in Seoul.
SKC operates the wildly popular Cyworld social networking community. According to the latest estimates, around 12 million South Koreans - or 25% of the population - are members.
Cyworld also operates internationally, in countries such as China, Japan and Vietnam.