Highest Number of Licenses Issued Since 2020
Gaming Industry Monitors Positive Signals for Market Shift
Since China resumed issuing game licenses, the number of Korean games entering the local market has been increasing every year. As of August this year, a total of 13 titles have been approved for distribution in China. This is the highest number in six years since 2020. The gaming industry is closely monitoring this positive trend for signs of a changing environment.
According to the gaming industry on September 2, the National Press and Publication Administration of China recently issued foreign game licenses for three Korean games: "Uncharted Waters Origin" (Line Games), "Chaos Zero Nightmare" (Smilegate), and "Trickcal Revive" (Apeed Games).
The license, known as "banhao," is a mandatory permit for providing game services in China and is essential for selling in-game items. The Chinese government uses this system to control the distribution of both domestic and foreign games. Korean game companies are entering the Chinese market by establishing joint ventures with local firms or by partnering with Chinese publishers, as foreign games cannot enter China independently.
This year, a total of 13 Korean games have received licenses from Chinese authorities, the highest number since China resumed issuing them. Nine titles were approved in the first half of the year, with one more in July and three additional titles last month.
Previously, China suspended the issuance of licenses for Korean games for three years after implementing the "Korean Wave Ban" in 2017, before resuming in 2020. Since then, the number of licenses issued has increased each year: one in 2020, two in 2021, eight each in 2022 and 2023, and 11 in 2024.
While Korean game companies do not yet feel that the Korean Wave Ban has been fully lifted, they are watching the developments closely. In particular, the fact that "Chaos Zero Nightmare" secured a license even before its global release is seen as an encouraging sign.
An industry insider said, "It is difficult to equate the number of licenses obtained with the lifting of the Korean Wave Ban," but added, "We do sense that the pace of license approvals has slightly increased." The insider also noted that before the ban, more than 30 Korean games received licenses in a single year, making direct comparisons with the current situation inappropriate due to the different circumstances.
Some believe a cautious approach is necessary due to political factors. Another industry insider commented, "China is raising its own game industry competitiveness by maintaining entry barriers such as the licensing system, and since the Korean Wave Ban is a politically motivated measure, it is still too early to discuss whether it has been lifted."
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