Game Industry Only Looking Forward to President Xi Jinping's Visit to Korea

K-Game, 4 Years of Blocked Exports to China Due to Ban on Game Licenses
"Opportunity to Elevate KOR-CHN Summit Discussion to Top Priority"

[Asia Economy Reporter Jin-gyu Lee] The gaming industry is eagerly awaiting Chinese President Xi Jinping's visit to South Korea. There is hope that the issuance of game licenses (distribution permits) by the Chinese government will resume following President Xi's visit. However, concerns over the resurgence of COVID-19 in South Korea have raised fears that delays in President Xi's visit could push the resumption of license issuance beyond this year.

According to the gaming industry on the 24th, expectations are growing that the issuance of licenses will resume this year with President Xi's visit. On the 22nd, Suh Hoon, Director of the National Security Office at the Blue House, met with Yang Jiechi, a member of the Political Bureau of the Communist Party of China responsible for foreign affairs, to discuss the possibility of an early visit by President Xi. Initially, both countries planned for President Xi's visit in the first half of the year, but the schedule was postponed due to the COVID-19 situation.

However, the condition for an early visit by President Xi includes the caveat that "the COVID-19 situation must stabilize and conditions be favorable," making it uncertain whether the visit will take place within this year. Given the recent resurgence of COVID-19 in South Korea, optimism about the resumption of license issuance is limited. An industry insider said, "There is hope that the issuance of licenses, which has been suspended, can be resolved with President Xi's visit. But as the COVID-19 situation worsens again, it is difficult to expect license issuance within this year."

Previously, the Chinese government has not issued game licenses to South Korean games since March 2017, citing the THAAD (Terminal High Altitude Area Defense) conflict as a pretext. The last South Korean game to receive a license and be officially released in China was Fincon's 'Angel Stone' in November 2016, meaning the export route to China has been blocked for over three and a half years. The domestic gaming industry has suffered significant revenue losses as it has been unable to introduce new games to China. Although the Chinese National Radio and Television Administration, responsible for issuing licenses, recently granted licenses to Japanese games such as those from Nintendo, South Korean games remain excluded from license issuance.

The gaming industry places great hopes on President Xi's visit as an opportunity to resume the blocked license issuance. Professor Woo Jung-hyun of Chung-Ang University, who serves as president of the Korea Game Society, said, "China has delayed issuing licenses to South Korean games as a strategy to allow local game companies to copy Korean games and secure market dominance, causing Korean games to lose competitiveness. With related agencies such as the Ministry of Culture, Sports and Tourism and the Ministry of Foreign Affairs recognizing the license issue as a critical matter more than ever, if President Xi's visit takes place, it will be an opportunity to elevate the license issue to the top agenda in summit discussions."