[Opinion] Ensuring Innovation in the Esports Industry Through Diversity and Inclusion

The Key to Revitalizing Korea's Esports Industry:
Diversity and Inclusion, Lessons from Sweden and Indie Games

Hyuncheol Kim, Senior Advisor at the International eSports Promotion Agency.

According to the "2024 Esports Status Survey" (Korea Creative Content Agency), the domestic esports industry reached 256.95 billion KRW in 2023, a 7.8% increase compared to the previous year (238.3 billion KRW). However, a closer look reveals that this growth is mainly due to increased spending, specifically a 43.4% rise in team budgets, rather than factors like media exposure, publisher investment, or prize pool size.

Despite indicators showing growth, structural issues such as declining investment from publishers and the inflexible environment of the domestic esports and gaming industries remain problematic. In particular, Korea's lack of proactive response to international changes?such as Saudi Arabia's Esports World Cup (with a total prize pool of $60 million), China's efforts to standardize global esports, and Singapore's Virtual Taekwondo World Championship?is a significant concern.

As a result, Korea's global influence as the birthplace of esports is gradually fading. Nevertheless, government policy support?such as expanding regional permanent esports arenas, introducing regional franchise systems, and increasing the influence of esports content?is a welcome move to address these internal and external changes. In addition, timely support for discovering and nurturing new esports titles is urgently needed.

The importance of discovering national esports titles is evident in the event lineup bias at competitions such as the 2022 Hangzhou Asian Games, which included China's Mong Samguk 2 and Wang Zha Yong Yao but not Hearthstone, and the 2026 Aichi-Nagoya Asian Games, which will feature four Japanese games: Pokemon Unite, Gran Turismo 7, eFootball, and Puyo Puyo Champions.

As the birthplace of esports, Korea is now represented only by PUBG. Since esports remains an official event at the Asian Games, the military service exemption benefits for medalists have a significant industrial, social, and cultural impact on the domestic esports scene.

At last year's Saudi Arabia Esports World Cup (EWC), PUBG and PUBG Mobile were the only Korean games featured. Fortunately, this year Smilegate's Crossfire has been selected as an official title.

The words of Smilegate Stove Director Ye Seunghwan?"Indie games are the foundation of Smilegate. Smilegate also started with just three or four people. To stay true to our roots, Smilegate is committed to indie games"?resonate deeply.

Indie games, short for independent games, are developed by small teams or individuals. The fact that indie games, created with limited resources, can overcome numerous challenges and succeed globally offers important lessons for Korea's struggling esports industry.

In Sweden, which has produced global hits like Minecraft, Candy Crush Saga, and It Takes Two, about half of all game companies are solo developers, and companies with ten or fewer employees?including solo developers?make up 89% of the industry. The number of game companies increased by 78% between 2017 and 2021.

Indie games are characterized by the freedom to realize creative ideas, often resulting in unique and experimental gameplay. They provide players with innovative experiences and opportunities to connect through diverse cultures, perspectives, and stories.

Indie games enhance industrial diversity and offer players a wide range of choices. They emphasize diversity and creativity in genres, gameplay mechanics, art styles, storytelling, and social themes.

The UNESCO Convention on the Protection and Promotion of the Diversity of Cultural Expressions (2005) defines cultural diversity as "creating a rich and ever-changing world, expanding the range of choices, and enhancing human capabilities and values. Therefore, cultural diversity is a source of sustainable development for communities, peoples, and nations."

Diversity encompasses not only demographic differences but also all forms of cognitive diversity. When combined with inclusion?the creation of an environment where everyone feels respected and supported?Diversity & Inclusion (D&I) can serve as a driving force for innovation in the esports industry.

Just as Sweden and Smilegate have succeeded by fostering a rich and dynamic world and building inclusive environments where anyone can participate, the government should create similar conditions to enhance Korea's global influence in esports. We can no longer rely solely on the label of "birthplace of esports."

Alongside Korea's external status as the birthplace of esports, the government must actively support the internal development of the domestic esports industry, ensuring an environment for sufficient qualitative and quantitative growth. At the same time, there must be serious consideration of support from cultural and social perspectives, specifically regarding diversity and inclusion (D&I).