'Panho' Issued After 4 Years... Will the 39 Trillion Won Chinese Game Market Open?

[Asia Economy Reporter Buaeri] As Korean games have received Chinese game licenses (permission to provide game services in China) for the first time in four years, the industry is expressing expectations for entry into the Chinese game market worth 39 trillion won.

According to the game industry on the 3rd, the National Press and Publication Administration of China issued a foreign game license for Com2uS's "Summoners War: Sky Arena" the day before. The game license is a permit required to provide game services in China. It is divided into domestic licenses applied for by Chinese companies and foreign licenses for foreign-made games.

Summoners War, released in 2014, enjoys worldwide popularity. It has surpassed 100 million downloads and achieved cumulative sales of 2 trillion won last year. A Com2uS official said, "The license issued this time was applied for in 2016," adding, "We will actively proceed with services in China going forward."

This license issuance is an achievement after four years. In 2017, when the Korean government deployed the Terminal High Altitude Area Defense (THAAD) system, the Chinese government maintained the Hallyu ban policy in response. Because of this, Korean games failed to enter the Chinese market. No licenses for Korean games have been issued since March 2017. Although China issued licenses for 28 foreign games last August, Korean games were excluded. Moreover, the recent delay in the Chinese release of Nexon's "Dungeon & Fighter Mobile," which had already obtained a license, further increased anxiety in the domestic game industry.

With Summoners War receiving the license this time, a green light has been turned on for entry into the Chinese game market worth 39 trillion won. According to the Game Publishing Committee (GPC) of the China Audio-Video and Digital Publishing Association, the Chinese game market is growing annually from 214.4 billion yuan (about 36.62 trillion won) in 2018 to 230.8 billion yuan (about 39.42 trillion won) in 2019. An industry insider said, "While domestic game companies have been unable to enter China, Chinese games have actively entered Korea, creating an unfair situation," adding, "We hope that the issuance of licenses will create a fair competitive environment."