Concerns Over Delays in Chinese Game Licenses Amid New Coronavirus Spread

Domestic Game Companies Face Work Disruptions Due to Postponed China Business Trips and Remote Work

[Asia Economy Reporters Jin-gyu Lee, Ae-ri Boo] As concerns over the spread of the novel coronavirus infection (Wuhan pneumonia) grow, there are increasing worries that the resumption of China's game licensing (panho) issuance may be delayed.

According to the game industry on the 29th, expectations were rising that the issuance of panho would resume following Chinese President Xi Jinping's visit to Korea in the first half of this year. However, with the situation in China becoming urgent, it is now difficult to be optimistic about the resumption of panho issuance. An industry insider said, "It was true that there was hope that the panho issuance, which had been blocked until now, could be resolved with President Xi Jinping's visit," adding, "But the situation in China is very serious, making it hard to expect panho issuance."

Previously, the Chinese government has not issued panho for Korean games since March 2017, using the THAAD (Terminal High Altitude Area Defense) conflict as a pretext. As a result, the domestic game industry has suffered considerable damage to sales as it has been unable to introduce new games to China. The game industry had placed great hopes on President Xi Jinping's visit as an opportunity to resume the blocked panho issuance. Professor Jung-hyun Wi of Chung-Ang University, who serves as the president of the Korea Game Society, said, "The novel coronavirus situation could escalate into a matter threatening the survival of the Xi Jinping regime, so resolving the situation is the top priority. China will have no time for normal diplomacy, and the situation is expected to be managed until the first half of the year, so the panho issue will be postponed," adding, "If the situation is somewhat resolved in the first half, the panho issue could be re-energized in the second half, but if not, it will inevitably extend beyond this year."

Meanwhile, domestic game companies are experiencing work disruptions such as postponing business trips to China or working from home due to the current situation. Wemade extended the Lunar New Year holiday until the 2nd in accordance with Chinese government guidelines and instructed branch office employees to work from home even after the holiday. Netmarble China, located in Beijing, is also considering extending the Chinese Lunar New Year holiday, originally until the 30th, until the 2nd. Netmarble has also banned its headquarters employees in Korea from traveling to or visiting China. Smilegate postponed the 'Crossfire' Pro League finals, which were scheduled to be held in Kunming at the end of next month, following the decision of its publisher Tencent.