Park Young-sun, Minister of SMEs and Startups, "Will Strengthen Support for Startups in the Gaming Sector"

Ministry of SMEs and Startups Holds Meeting to Foster Startups in the Gaming Sector

Minister Park Young-sun

[Asia Economy Reporter Kim Cheol-hyun] The Ministry of SMEs and Startups (Minister Park Young-sun, hereinafter referred to as the Ministry) has announced plans to strengthen support for startups in the gaming sector. On the 2nd, the Ministry held a 'Meeting to Establish a Growth Ecosystem for Startups in the Gaming Sector' at POSCO Tipstown in Gangnam-gu, Seoul, where it made this announcement.

This meeting was organized by the Ministry as a follow-up measure to the 'Comprehensive Plan for the Promotion of the Gaming Industry' announced by the government on the 7th of last month, aiming to hear voices from the field regarding the direction for nurturing startups in the gaming sector. In particular, the Ministry explained that it was meaningful because major game companies, gaming startups, and venture capitalists (VCs) gathered together to explore ways to collaborate and coexist, thereby creating a growth ecosystem for startups.

Major game companies attending the meeting included Netmarble, NCSoft, Krafton, and Kakao Games, while five startup representatives who participated in the Ministry’s 창구 (Changgo) program last year also attended. VCs present were Kona Venture Partners, Smilegate, and LB Investment, which had significant investments in the gaming sector last year.

The major game companies attending the meeting advised startups on business operation directions and requested active government investment and support for startups. Startup representatives conveyed voices from the field, including the need for support and increased investment in various game genres and coexistence between major game companies and startups. VCs stated that although investment is currently challenging, they will continue to strengthen investments in promising startups such as those in gaming.

Minister Park emphasized, "While the COVID-19 pandemic has led to rapid growth in the gaming sector, a representative non-face-to-face content industry, there are also difficulties such as the recent slowdown in the growth rate of the domestic gaming market," adding, "For the gaming industry to sustain growth, collaboration among major game companies, startups, and venture capitalists that make up the ecosystem is necessary." He continued, "Major companies and venture capitalists should actively support startups in diversifying their content, and a win-win structure should be established where competitive startup content fills the platforms of major game companies, allowing mutual growth. The Ministry will also strengthen support for startups in the gaming sector."