'Panho' Released After 4 Years... China's Intentions [Buaeri's Game Dictionary]

[Asia Economy Reporter Buaeri] Korean games have received Chinese game licenses (game service permits in China) for the first time in four years, raising expectations in the industry for entry into the Chinese game market worth 39 trillion won. However, some caution that it is too early to be reassured, as the situation is not unrelated to international affairs such as the election of U.S. President Joe Biden.

First 'Game License' in 4 Years... Signal of Lifting the Hanhanryeong?

On the 2nd, China's National Press and Publication Administration issued a foreign game license to Com2uS's "Summoners War: Sky Arena." The game license is a permit required to provide game services in China. It is divided into domestic licenses for companies within China and foreign licenses for foreign products.

Summoners War, released in 2014, enjoys worldwide popularity. It has surpassed 100 million downloads and achieved cumulative sales of 2 trillion won last year. A Com2uS official said, "The license issued this time was applied for in 2016," adding, "We will actively proceed with services in China going forward."

The gaming industry is hopeful that this license issuance signals the lifting of the Hanhanryeong (Korean Wave restriction). In 2017, when the South Korean government deployed the Terminal High Altitude Area Defense (THAAD) system, the Chinese government maintained the Hanhanryeong policy in protest. As a result, Korean games failed to enter the Chinese market. No licenses for Korean games were issued since March 2017. Although China issued licenses for 28 foreign games last August, Korean games were excluded. Moreover, the recent delay in the Chinese release of Nexon's "Dungeon & Fighter Mobile," which had already obtained a license, heightened anxiety in the domestic game industry.

Are There More Games That Received Licenses?

Besides Summoners War, the indie game "Lucy - What She Wanted," known to be developed by Korean developers, is also reported to have received a license this time. However, the developer, MBIZ Lab, stated, "We are a Canadian business located in Canada."

With Summoners War receiving a license, expectations have risen for entry into the Chinese game market worth 39 trillion won. According to the Game Production Committee (GPC) of the China Audio-Video and Digital Publishing Association, the Chinese game market was 230.8 billion yuan (38.4466 trillion won) in 2019 and is growing annually. An industry insider said, "Domestic game companies have been unable to enter China, while Chinese games have actively entered Korea, creating an unfair situation," adding, "We hope that the issuance of licenses will create a fair competitive environment."

On the 26th of last month, Wang Yi, Chinese Foreign Minister, greeted Kang Kyung-wha, South Korean Foreign Minister, before their meeting at the Ministry of Foreign Affairs in Jongno-gu, Seoul. Photo by Joint Press Corps

Sudden Change in China's Intentions

Some caution against premature optimism that a series of licenses will be issued for domestic games. China's recent license issuance is not unrelated to political situations such as the election of U.S. President Joe Biden. Also, China is issuing only about one-tenth the number of licenses compared to the past, and fierce competition among countries for a limited number of foreign licenses is another reason why we must remain vigilant.

Professor Wi Jeong-hyun of Chung-Ang University, president of the Korea Game Society, said, "China is wary of the strengthening traditional Korea-U.S.-Japan alliance. It is important to separate Korea from the alliance and normalize relations between Korea and China," adding, "Before President Biden's inauguration, there was concern about how to appease Korea. Here, the license is a card that has little practical effect but can claim the pretext of consideration for Korea."

Professor Wi emphasized that the government and game industry should actively work to resolve the license issue, riding this momentum. He said, "It is important for the industry to collectively and strongly make invisible efforts," adding, "Even if game companies put in one-tenth of the effort they make to avoid sending founders or executives to the National Assembly audit, they should do it to resolve the license issue."

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