Chinese Game Publishers Dominating South Korean Market, Raising Concerns Among Local Companies
Chinese game publishers are making significant strides in the South Korean market, outperforming domestic companies that are facing various industry regulations. “Last War,” a shooting genre game developed by Chinese gaming company FirstFun, has recently topped the Google Play Store’s domestic sales rankings, dethroning NCSoft Corp.’s “Lineage M.”
Industry analysts attribute the success of “Last War” to its strategic marketing efforts, including collaborations with popular entertainers and extensive advertising on social networking services like Instagram and TikTok. The game has recorded cumulative sales of $180 million, with the Korean market accounting for 28 percent of the total.
In a surprising turn of events, three out of the top five revenue-generating games in Korea are developed by Chinese game companies. This trend has raised concerns among Korean publishers, who fear that their Chinese counterparts could dominate the entire market due to regulatory loopholes.
Despite the implementation of regulations requiring the disclosure of probability-based item information, many Chinese game companies operating in Korea have yet to comply. This contrasts with Korean companies that swiftly updated their information in line with the revised laws.
The Game Rating and Administration Committee has sent corrective requests to nine game companies, mainly from China, for failing to disclose item information properly. Controversies also surround false advertisements by Chinese game companies, backed by substantial financial resources and marketing via social media.
The disparity in regulatory enforcement between Korea and China poses challenges for Korean companies seeking to enter the Chinese market. With Chinese game publishers gaining momentum in Korea, the industry landscape is undergoing a significant shift, prompting local companies to reassess their strategies to remain competitive.