Highly Praised One Store's Commitment to Overseas Expansion
Expecting Strong Performance in Europe Following Digital Market Act Approval
Native app market One Store secured an investment of 20 billion KRW from Krafton on the 17th. The investment drew attention as it was made despite Krafton's flagship game Battlegrounds not being listed on One Store.
This investment is the first for One Store in two years since receiving $15 million (approximately 16.8 billion KRW) from Microsoft (MS) and Deutsche Telekom's investment company DTCP in 2021.
The investment holds special significance for One Store as it comes from a leading domestic game company. Until now, One Store had been overlooked by domestic game companies. For game companies aiming for significant profits through overseas expansion, One Store, which primarily serves only the domestic market, was not an attractive platform. According to data compiled by Mobile Index, as of last year, Google's app market 'Play Store' and Apple's app market 'App Store' held a combined domestic market share of 85%. One Store accounted for only 15%.
To curb the market monopoly of Google and Apple, a 'Win-Win Agreement for the Revitalization of the Domestic App Market' was brokered by the government in October 2021, but it had little effect. The agreement included major domestic game companies known as the '3N'?Nexon, Netmarble, and NCSoft?but even two years after the agreement, only four game apps from the signatory companies have been listed on One Store. Notably, Krafton, which made a large investment in One Store this time, has not listed its flagship game Battlegrounds on One Store.
Nevertheless, the reason One Store was able to secure investment lies in its strong determination and potential for overseas expansion. In July, One Store hired Lee Ki-hyuk, a global investment expert, as Chief Financial Officer (CFO). Since then, it has actively engaged with multiple potential investors to secure funds for overseas expansion. Its parent company, SK Square, is also continuing investment activities to enhance One Store's value.
Krafton explained the investment by stating, "We highly value One Store's potential as it prepares to expand beyond being Korea's representative app market and decided on this investment to broaden our understanding of the overseas game market through One Store."
Industry insiders expect this investment to significantly contribute to shedding One Store's 'domestic-only' label. An industry official said, "If One Store's overseas versions are launched in Europe and North America, there is a high possibility that Krafton will list Battlegrounds there," adding, "Once the two companies create synergy and establish a foothold overseas, not only domestic but also other overseas game companies will turn to One Store for its lower payment fees."
In August, One Store established an overseas joint venture named 'One Store International Holdings B.V.' in the Netherlands. It plans to invest 38.4 billion KRW and acquire 99% of the shares of this company. The remaining 1% will be held by local employees.
The European market now offers favorable conditions for One Store's business following the passage of the 'Digital Markets Act (DMA)' by the European Parliament, which aims to prevent the abuse of market dominance by major platform operators. The Digital Markets Act includes provisions such as ▲allowing users to choose default search engines and web browsers when purchasing new smartphones ▲permitting the deletion of pre-installed applications by platforms. This means OS manufacturers like Google and Apple will find it harder to exclude third-party apps like One Store.
Jeon Dong-jin, CEO of One Store, expressed confidence, saying, "Krafton's equity investment is more than a simple financial investment; it will be a momentum to strengthen One Store's global competitiveness," and added, "Starting as a native app market, One Store is ready to become a truly global representative app market."
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