[GameSanUP] Beyond Leisure to Growth Engine... "Fostering 20 Trillion Won in Sales and 100,000 Jobs" (Comprehensive)

Minister of Culture, Sports and Tourism Park Yang-woo is announcing the 'Comprehensive Plan for the Promotion of the Game Industry' at the Government Seoul Office on the 7th. [Photo by Ministry of Culture, Sports and Tourism]

[Asia Economy Reporters Kim Heung-soon and Boo Ae-ri] The government has decided to boost a new leap forward in the gaming industry, which has gained attention as a non-face-to-face and digital leisure culture amid the spread of the novel coronavirus infection (COVID-19). Reflecting field opinions, it plans to ease some regulations, enhance the competitiveness of small and medium-sized game companies to resolve industry polarization, foster e-sports, and promote measures to dispel negative perceptions of games.

On the 7th, the Ministry of Culture, Sports and Tourism (MCST) announced the "Comprehensive Plan for the Promotion of the Gaming Industry," jointly established with related ministries, at the Government Seoul Office. The comprehensive plan consists of four core strategies and 16 key tasks: ▲ supporting innovative growth through active regulatory and institutional improvements ▲ strengthening step-by-step support from startup to overseas market entry ▲ spreading the positive value of games and fostering the e-sports industry ▲ and strengthening the foundation of the gaming industry.

◆ "Creating 20 trillion KRW in sales and 100,000 jobs"= The MCST set a goal to achieve sales of 19.9 trillion KRW, exports of 11.5 trillion KRW, and create 102,000 related jobs by 2024 through the promotion of the gaming industry. Park Yang-woo, Minister of Culture, Sports and Tourism, promised, "After the COVID-19 crisis, the government will actively support the industry to grow games into a core industry leading the non-face-to-face and online economy and the Fourth Industrial Revolution era through continuous communication with the industry, academia, related domestic and international organizations, and experts."

According to the MCST and the Korea Creative Content Agency, domestic gaming industry sales grew at an average annual rate of 9.8%, from 5.6 trillion KRW in 2008 to 14.3 trillion KRW in 2018. Exports also nearly tripled in six years, from 2.639 billion USD (about 2.9 trillion KRW) in 2012 to 6.411 billion USD (about 7.05 trillion KRW) in 2018. The number of industry workers was 85,492 as of 2018. However, the domestic game market grew only 1.4% annually over five years, from 6.7 trillion KRW in 2013 to 7.2 trillion KRW in 2018, highlighting the need for new growth engines.

Han Dong-seung, professor of Game Content at Jeonju University, said, "The biggest problem in the domestic gaming industry's stagnation is industry polarization. Large game companies focus on safety by reusing verified games, while small and medium-sized companies are either passive in new investments or lack the conditions, resulting in weakened growth momentum." He added, "The government should increase educational institutions that can nurture the workforce needed on the ground and support the growth of small and medium enterprises to induce industry coexistence."

Image source=Yonhap News

◆ Fostering Small and Strong Game Companies and Easing Regulations= The MCST plans to expand the existing 'Global Game Hub Center,' a startup infrastructure related to games, to lay the foundation for fostering small and strong game companies. It will also support expanding game platforms, currently focused on PC and mobile, to new technology-based platforms such as consoles (video games connected to TVs) and virtual reality (VR). Additionally, it will build an integrated overseas market information system to provide relevant information when small and medium-sized game companies pursue overseas expansion.

The government also plans to improve some regulations and systems that have hindered the growth of the gaming industry. First, it will exempt the reporting obligation for minor content changes under the 'Game Content Modification Reporting System,' which the gaming industry has continuously requested to improve, and introduce optional prior reporting. The game rating system will be improved from the current platform-based classification to content-based classification to activate the distribution of new games and prevent duplicate ratings. The expansion of private voluntary rating classification is also planned.

Arcade games, which were used in game rooms formerly called arcades, will have their prize price cap raised from the current 5,000 KRW to 10,000 KRW to prevent gambling and expand the types of prizes. Prize exchange games will also be gradually allowed to be deregulated, aiming to foster family-friendly games. The arcade industry has high potential to grow into family-friendly games with the growth of VR games, but the current regulations have caused the domestic market to stagnate and related industries to look overseas.

Furthermore, measures to protect the rights and interests of game users have been prepared. First, the right of the public to enjoy games and the obligation of game operators to protect user rights will be stipulated by law. Disclosure of information on 'probability-type items,' which has been controversial in the gaming industry, will be made mandatory, and legal grounds to restrict inappropriate game advertisements will be established. A system to designate domestic agents for overseas game operators without a domestic corporation will be introduced to protect domestic users and resolve reverse discrimination against domestic companies.

An MCST official explained, "We prepared related measures reflecting industry demands and game users' positions and to promote the gaming industry, which had been focused on mobile and online, to include consoles and arcades as well."

Image source=Yonhap News

◆ "Fostering e-sports and Eliminating Negative Perceptions"= The government will also strengthen the fostering of e-sports, for which South Korea is the origin country. To expand the base, it plans to designate PC bangs (internet cafes) as e-sports facilities based on regional permanent stadiums and promote amateur e-sports tournaments and amateur team development.

To protect e-sports players and create a fair environment, a standard contract will be prepared and distributed within this year, and the player registration system will be expanded. Additionally, the 'Korea-China-Japan e-sports tournament' will be held from November 13 to 15 to activate game industry exchanges among the three countries, and an internationally applicable e-sports international standard will be established.

Kim Hyun-hwan, Director of Content Policy at the MCST, said, "Depending on the COVID-19 situation, we are also considering the idea of having e-sports players from Korea, China, and Japan compete in their respective countries while being connected online."

To prevent the expansion of negative perceptions of games following the World Health Organization's (WHO) announcement last May to classify gaming disorder as a disease code, family-participatory competitions, performances, exhibitions, and game culture festivals will be promoted. Game-related education will also be strengthened. In cooperation with the Ministry of Education, practical textbooks involving game experts and field teachers will be developed for game vocational high schools such as Game Meister High School, and game coding and job training for students and teachers will be expanded.

Minister Park said, "We will solidify the Game Talent Center, launched last year to nurture professionals with international competitiveness needed by the gaming industry, and expand support for the existing one Game Master High School and ten game-specialized high schools." He emphasized, "We will support the establishment of a Game Culture Museum that compiles the history of games and discovers future value, and the creation of game theme parks utilizing idle spaces in local areas to spread a proper game culture."

This content was produced with the assistance of AI translation services.