Game Industry Game Industry in the Korean Economy in the Korean - PowerPoint PPT Presentation

Game Industry Game Industry in the Korean Economy in the Korean Economy Feb 23. 2005 Miheon Song Asia Broadband Summit 1 KIPA-MH Song@iparktokyo-ABS

Introduction to KIPA ! Established in 1998 by MIC to promote Korea IT Industry ! Non-profit, legally authorized Government Agency to promote S/W industry and D/C industry ! No of Employees : Approx. 200 ! Home page : www.kipa.or.kr 2 KIPA-MH Song@iparktokyo-ABS

Introduction to KIPA " iPark – Overseas office London London Tokyo Tokyo Beijing Beijing Boston Boston Silicon Silicon Valley Valley Shanghai Shanghai Osaka Osaka Singapore Singapore 3 KIPA-MH Song@iparktokyo-ABS

DC industry in Korea Estimated market size / growth rate US $41.2 bil. Sector CAGR Game 32.5 % 59.8 % Animation 62.0 % Mobile contents US $18.8 bil. e-Learning - 60.3 % D-TV Contents 49.0 % US $2.8 bil. 34.9 % Publishing, Music, , etc 39.9 % Total 2002 2007 2010 Source : Reconstructed by the data form KIPA (2003) 4 KIPA-MH Song@iparktokyo-ABS

IT – DC – Game Industry Mobile Communication Post PC Digital TV (Unit : %) IT SoC Digital 22 Telematics Contents CG/Animation Game Intelligent 36 36 Home network Robot Embedded Software E-learning 14 14 Web information 14 ETC Game is the Key sector in the DC industry ! 5 KIPA-MH Song@iparktokyo-ABS

Game industry in the Economy Industry Growth Comparison # Fastest Growing industry 66% 13.0% World Game Industry growth World economy Growth rate Semi-conductor 7% (IMF, 2002) 6% 4% 4% 3% 3% -3% Revenue growth 2.8% (WSTS, 2002) IT growth rate Ship Building Electronic Appliance Online Game Car Petro Chemical Iron General Machine Textile (IDC, 2002 ) 2.3% -2.3% <World economy> <Korea economy> 6 KIPA-MH Song@iparktokyo-ABS

World Game Market – Total size (Unit : U$1 billion) (Source : Korea Game White Paper 2004. KGDI) CAGR 10. 4% 100 82.8 69.1 62.1 61.3 61.1 53.9 50 0 2001 2002 2003 2004 2005 2006 7 KIPA-MH Song@iparktokyo-ABS

World Game Market – P/F composition (Unit : U$1 billion) (Source : Korea Game White Paper 2004. KGDI) ※ Etc = A Derivative Sale ※ ※ ※ 100% 2.9 5.2 7.0 9.2 12.1 15.0 90% 80% 18.7 21.5 19.4 13.9 16.0 70% Etc 23.2 Console 60% Arcade 50% PC 40% 30.0 30.9 32.2 28.0 29.4 Mobile 29.4 30% Online 20% 3.4 3.3 3.3 10% 2.9 2.1 3.4 1.4 3.5 3.7 0.9 6.2 4.7 3.2 0.6 2.0 0.2 1.1 0.5 0% 1 2 3 4 5 6 8 KIPA-MH Song@iparktokyo-ABS

Korea Game Market – Total Size (Unit : 1 M$, 1U$=1,050 won) (Source : Korea Game White Paper 2004. KGDI) Including PC Café / Game room Net Sales of Game Development 6000 5441 CAGR 10.1% 4898 5000 4319 3751 4000 3241 2767 3000 2332 1879 2000 1456 1192 1000 0 2002 2003 2004 2005 2006 9 KIPA-MH Song@iparktokyo-ABS

Korea Game Market – O/G domination (Source : Korea Game White Paper 2004. KGDI) (Unit : 1 M$, 1U$=1,050 won) ※ Excluding PC Café / Game room ※ ※ ※ 100% 149 212 276 381 331 305 80% 291 282 297 63 360 65 71 394 292 89 208 60% 139 157 40% 96 1625 1354 1041 718 20% 431 0% 2002 2003 2004 2005 2006 Online Mobile PC Arcade Console 10 KIPA-MH Song@iparktokyo-ABS

Worldwide Online gaming Market FY 2003 FY 2004 America(N,S) � � � 28% 32 % America(N,S) � � � AsiaPacific 28% 32% AsiaPacific U$1.68 Bil U$2.73Bil 57% 65% � � � Europe � � � 57% 65% 8% � � � Europe � � � 8% 11% 11% <Source : World DC market survey report, KIPA, 2003> " Market size : FY2003 U$1.7 Bn -> FY2004 U$2.7 Bn " Online game, the fastest growing in the “ game ” industry " Share of “ America, Europe ” market is increasing 11 KIPA-MH Song@iparktokyo-ABS

Worldwide Online gaming Market America(N,S) 28% � � � 28% AsiaPacific 65% Europe � � � 65% 8% � � � Korea China Japan Hong Kong 8% Taiwan Singapore Thailand Australia 3% FY 2003 1%2% 13% 3% 7% 51% 20% 12 KIPA-MH Song@iparktokyo-ABS

Export of Korean Game Export according Export according to a nation to a Platform SouthA Japan US A mobile sia 6% 6% Taiwan 7% 7% Etc Arcade 17% 10% 8% EC 2% Online PC 84% 1% China 51% 13 KIPA-MH Song@iparktokyo-ABS

Co-relation between BB and O/G industry = 0.85 2 R <Bear Stearns Research / Aug. 2004> Strong co-relation between BB & OG (Korea case) , 14 KIPA-MH Song@iparktokyo-ABS

Market driver : Broadband penetration Kore a Hong Kong Ta iw a n Ca na d a S ing a pore Ja pa n US A U.K. Ge rma ny 2003 2007 China 0% 20% 40% 60% 80% 100% Turning point for online gaming 15 KIPA-MH Song@iparktokyo-ABS

Game Industry Promotion Strategy 1. Technology development 1. Technology development & infra-structure support & infra-structure support # Game engine & multi-platform technology # Game engine & multi-platform technology # Online game Testbed (domestic, global) # Online game Testbed (domestic, global) # Game component database # Game component database 16 KIPA-MH Song@iparktokyo-ABS

Game Industry Promotion Strategy 2. Production support 2. Production support # Production facility shared service # Production facility shared service # Pre production support # Pre production support # Main production support # Main production support # Post production support # Post production support 17 KIPA-MH Song@iparktokyo-ABS

Game Industry Promotion Strategy 3. Oversea marketing support 3. Oversea marketing support # Market research service # Market research service # Seminars & conferences (Tech. + Mkt’g) # Seminars & conferences (Tech. + Mkt’g) # GPP program (1:1 match-making) # GPP program (1:1 match-making) # Trade shows (G-star 2005) # Trade shows (G-star 2005) # gameNgame.com (GTB) # gameNgame.com (GTB) 18 KIPA-MH Song@iparktokyo-ABS

Contact information Ｍｉｈｅｏｎ Ｓｏｎｇ Ｍｉｈｅｏｎ Ｓｏｎｇ Ｍｉｈｅｏｎ Ｓｏｎｇ Ｍｉｈｅｏｎ Ｓｏｎｇ Division Director / Digital Contents Promotion iparktokyo 81-3-5501-2847 ppsong@iparktokyo.com 19 KIPA-MH Song@iparktokyo-ABS