How PC Bangs Became the 'Backbone' of Korea's IT Industry [Juhyung Lim's Tech Talk]

Key Player in the 1990s 'Online Game' Boom Including StarCraft
Led the Spread of High-Speed Internet and Computer Hardware
Faced Challenges from Intense Competition and COVID-19 Spread
Transformed into a Cultural Space by Conquering Restaurants

A PC bang in Seoul last September. / Photo by Yonhap News

[Asia Economy Reporter Lim Juhyung] Life without PC bangs is now unimaginable for Koreans, as PC bangs have become a part of our culture. Today, PC bangs have evolved beyond mere facilities for internet use or online gaming into social and cultural spaces. However, the impact of PC bangs extends beyond cultural aspects. PC bangs have consistently served as a 'cash cow' in Korea's high-speed internet deployment projects, acting as the economic 'backbone' contributing to the advancement of the domestic information and communication industry.

◆The PC Bang Industry Grows Riding the 'Game Boom'

To understand the impact of PC bangs on Korean industry, one must first know the moment the first PC bang was born. The concept of PC bangs was first introduced in Korea in 1994. At that time, PC bangs were called 'internet cafes,' and the establishment of BNC (Bit Communication Cafe) in Seocho-dong, Seocho-gu, Seoul marked the beginning.

The 1990s PC bang scene featured on the KBS YouTube channel. / Photo by KLAB YouTube capture

Afterwards, starting with 'Netscape' established near Hongik University in September 1995, internet cafes began to spread widely in Korea. In 1996, the modern concept of PC bangs emerged, filling offices with dozens of computers connected via telephone lines to enable PC-to-PC communication.

The golden age of PC bangs was brought about by none other than 'games.' Initially, during the internet cafe era, PC bangs were spaces primarily for PC communication or other work-related activities. However, games, especially multiplayer online games connected via LAN cables, caused a surge in demand for PC bangs.

The American game company 'Blizzard Entertainment's' strategy game 'StarCraft' greatly contributed to the popularity of online games in Korea. The photo shows the StarCraft game screen. / Photo by Yonhap News

Game companies, which began to grow significantly from the 1990s, actively supported the online transition of games. Blizzard Entertainment, a US company that gained massive popularity in Korea with the release of 'StarCraft' in 1998, promoted online battles among users through its unique online platform 'Battle.net.' Meanwhile, Korean game company 'Nexon' contributed to the spread of multiplayer online gaming culture domestically with 'The Kingdom of the Winds,' which was serviced around the same time.

◆Active Investment in Internet Gaming Networks Leads ICT Powerhouse

In this environment, PC bangs spent considerable amounts on communication networks and hardware purchases to provide users with a more comfortable internet connection environment and high-performance computers.

According to the domestic IT magazine 'Computer World,' internet service providers leasing dedicated internet lines were operating at a loss due to a lack of corporate demand at that time.

A PC room in Jongno-gu, Seoul, in 2003. / Photo by Yonhap News

When internet gaming networks spread nationwide through PC bangs, domestic internet providers were able to generate significant revenue from the demand created by PC bangs, reinvesting these profits to develop Korea's internet infrastructure. In this way, PC bangs served as a cash cow for Korea's internet deployment projects.

In fact, in the early 2000s, Korea's leading commercial internet providers such as Inet, Duranet, and Boranet relied heavily on PC bangs for a substantial portion of their business revenue. For example, Boranet secured over 10,000 PC bangs and corporate clients nationwide in 2001, achieving an annual sales growth rate exceeding 7%.

◆Winter Due to COVID-19... Will Changes Emerge?

PC bangs, which greatly contributed to the advancement of Korea's IT industry and internet culture, have recently endured difficult times due to market saturation and the impact of COVID-19 on small businesses.

A PC bang in Korea attracted consumers' attention by offering a food menu reminiscent of a regular restaurant. / Photo by Internet Homepage Capture

According to data released by the Small Enterprise and Market Service, the number of PC bangs in Seoul, which reached 2,423 at the end of the first quarter last year, dropped by more than 20% to 1,998 after the second quarter. As PC bangs closed, computers flooded the Yongsan Electronics Market in Seoul, leading to a brief 'bittersweet' boom in the used PC market.

However, PC bangs are now changing. They are no longer just entertainment spaces where friends gather to enjoy online games but are increasingly transforming into complex cultural spaces such as restaurants and cafes offering various dishes.

Perhaps PC bangs, which led Korea's internet culture from the 1990s to the early 2000s, may present a new model for recreational culture.