Interview Kim Woo-suk, Chairman of the Korean Game Export Association
▶IT KOREA Journal: Would you like to comment on the background and object of setting up the Korean Games Export Association and plans for its future activities?
The global game market has been ever growing due to the highgrowth of the game industry itself, which can be the core of thedigital contents industry. In order to promote exports of localKorean games, game companies, communication serviceproviders, giant publishers and our government¡¯s supportiveorganizations, we have set up an export association on a non-governmentalbasis in order to help each other in overseas marketingand the export business. We will be positively mediating Koreangame companies¡¯ international conflict relating to their games,helping them overcome the difficulties in exporting games withgovernmental supports of the concerned organization, andmaking an alternative measure to an important issue on thegame .
▶IT KOREA Journal: Communication service providers including KT, SK Telecom and LG Telecom take part in the Association. What is the program¡¯s to link to the communication service providers and game companies?
We will let communication service providers such as KT, SKTelecom and LG Telecom find and invest in promising Koreangames, and help them market the games in linkage with communicationservice providers abroad.
▶IT KOREA Journal: The export of Korean games is now concentrated on Chinese circles such as China, Taiwan and Southeast Asian countries. On the other hand, the export to North America and Europe is small. What is your plan to expand exports of on-line games in the future?
The main export countries of on-line games are limited toChina, Japan, Taiwan and Southeast Asian countries because ofthe cultural similarity. As on-line games are becoming globalized,we will be making efforts to enhance the awareness of local onlinegames and their products by providing marketing guidance tothe local companies in the US, Europe and Central & SouthAmerican markets with global contents, and inducing theinvestment presentation. Since Korean mobile handsets, in particular,are now gaining a greater popularity in the world market, it is expected that local mobile games, of which game programswill be embedded to Korean mobile handsets, will have a chanceof success in capturing the markets in the US and Europe.Accordingly, if we are making every possible effort to export thegames with support of those countries¡¯ language versions, it willcontribute greatly to the diversification of export market.
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▶IT KOREA Journal: China is now the largest market for Korean on-line games and it is expected to become our greatest rival as well. What do you think is the measure to enhance our competitiveness with China ?
Lately, the Chinese authorities are studying the development ofChinese on-line games because they are afraid that they will besubject to Korea culturally on grounds that about 80% of foreignmade on-line games are made in Korea. It might be thought thatKorean on-line games will be in a critical situation as Chineseauthorities cope with it quickly by announcing an intensiveinvestment plan so as to develop their game soft ware. We,however, could get over such difficulties if we strongly overhaullocal on-line games in a way to benefit each country by increasingcompetitiveness, endeavoring, in many ways, on the contents andservice of our on-line games.
▶IT KOREA Journal: What do you think is the most difficult problem Korean on-line game companies are now facing in exporting their products? And, what do you think are some measures to solve it?
The greatest difficulties are that the companies lack informationand data about their target export countries. Accordingly, we planto service the game industry with the market information and itsanalysis that will be made through each country¡¯s I-PARK orcommercial attache there, as well as, the Government¡¯s supportiveorganization. We are now supplying each country¡¯s model contractto them. We will be putting into practice the performanceguarantee of payment and technical assistance to enhance reliabilityin contracting with foreign companies and the source codedeposit system in association with the Korea Software FinancialCooperative and Program Deliberation & Mediation Committee.Furthermore, we plan to put into practice export financing in consultationwith the Korea Export Insurance Corporation and KoreaExport/Import Bank. We will be seeking solutions through theArbitration & Mediation Committee to be organized so that thegovernment may positively mediate in the conflicts of gamesbetween countries. The ¡°screening system¡±, above all, should bechanged into a ¡°Private Self Screening System,¡± under whichprivate committee members will do the screening to make decisions.It is believed that fixing a ¡°Private Self Screening System¡± will be advantageous to exporting with the enhancement of competitivenessboth in Korea and abroad by making the most of thecreativeness of the game.
▶IT KOREA Journal: What do you think are the measures to enhance overseas competitiveness of Korean on-line games?
In case of on-line games, we should first make a preciseanalyses of those who can enjoy a cultural life in each country,and establish a target market for each class of people. Then, weshould approach them to build up a confidence. It will contributegreatly to enhancing competitiveness. If it is a mutual benefit bymutual cooperation, it will contribute greatly to increasing competitivenessin overseas countries.
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▶IT KOREA Journal: Korean on-line game companies are equipped with both product and technical competitiveness to some extent. But most of them are small and medium sized companies, of which overseas marketing and financial capabilities tend to be inferior. What do you think are some effective measures to solve it?
Since the top 5% of companies dominate more than 70% of thelocal Korean on-line market, quite a few on-line game companieshave been advancing into oversea markets actively in order forthem to off-set their inferior local market position by entering theoverseas markets. They, however, could not compete with largecompanies in term of organizational and financial capabilities. Assome of them tend to give up even their technologies to foreigncompanies, actual draining out our own high technology by themis also a rising and serious problem.To solve it, accordingly, appropriate supports should be given tothem? rather than by the private sector but, instead, by governmentalorganization. It is most desirable in preparing for thefuture.
▶IT KOREA Journal: Regarding the companies which want to advance into overseas markets with the help of the Korea Game Export Association, would you please comment on how to connect with it ?
The Association has opened the door. If they contact the KoreaEntertainment System Industry Association or the Game BusinessTeam of Korea IT Industry Promotion Agency, they can makesure of connecting with a lot of businesses within the Association.We are planning to make it reborn as the organization serving theexport of Korean games and providing information by expandingand making the Association develop more in the future, and wewill do our utmost to develop the game industry into a nationalbasic industry.
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