'Korean Game China License' Linked Arms with Ministry of Foreign Affairs

Game Society "Open the Export Path" Appeals for 3 Years
Ministry of Foreign Affairs "Sympathizes" but Still Only Words

[Asia Economy Reporter Jin-gyu Lee] The Korea Game Society actively requested the Ministry of Foreign Affairs to intervene regarding the issue of issuing Chinese game licenses (distribution permits) for Korean games, but it is reported that no significant results were achieved. They tried to use diplomatic channels to lift the three-year-long restriction on the issuance of Chinese game licenses, but even this effort has faced difficulties. While the export route for domestic games to China remains blocked, the market dominance of Chinese games in the domestic market has expanded, causing the Korean game industry to express a sense of crisis.

According to the game industry on the 7th, the Korea Game Society recently met with officials from the Ministry of Foreign Affairs to explain the current status of the license issue and Korea's position, and proposed that the Chinese government be strongly urged to issue the licenses. Last year, they also sent official letters four times to Foreign Minister Kang Kyung-wha, asking for her views and measures regarding the license issue. Despite these efforts, discussions on the issuance of licenses were not held at the Korea-China summit on December 23 last year. The Ministry of Foreign Affairs, which had not expressed a clear stance, recently conveyed to the society that it "sympathizes with the need to resolve the license issue and is making efforts."

Professor Woo Jung-hyun of Chung-Ang University, who serves as the president of the Korea Game Society, explained, "The Ministry of Foreign Affairs must take the lead for the license issue to be resolved." He emphasized that while efforts had been made at the private level to solve the problem, there were limitations, and the government must actively intervene. An industry insider expressed disappointment, saying, "The government has shown little interest in the license issue so far." The Korea Game Society also tried early last year to communicate the necessity of resuming license issuance to the Chinese government through academic and private exchanges within China via the Ministry of Culture, Sports and Tourism, but it is reported that the ministry has not provided a clear response for a year.

With the suspension of license issuance, the export volume of domestic game companies to China has sharply declined. According to the Korea Creative Content Agency's '2019 Korea Game White Paper,' the export share of domestic game companies to the Greater China region (including Taiwan and Hong Kong) decreased by 14 percentage points from 60.5% in 2017 to 46.5% in 2018. Korean games awaiting license issuance include NCSoft's "Lineage Red Knights," Netmarble's "Lineage 2 Revolution," and Pearl Abyss's "Black Desert Mobile." Meanwhile, Chinese game companies generated about 2 trillion won in sales in the Korean market last year, encroaching on the domestic market. According to the China Audio-Visual Digital Publishing Association Game Committee's '2019 China Game Industry Report,' Chinese game companies recorded sales of approximately 1.916 trillion won in Korea last year. Chinese mobile games such as Lilith Games' "Rise of Kingdoms" also dominate the top ranks of domestic app market sales. An industry insider pointed out, "The restriction on issuing Chinese game licenses is an issue that must be resolved at the government level," adding, "The government should move away from its passive stance and actively request cooperation from the Chinese government."