[Asia Exclusive] One Store CEO: "'33% App Market Share' Is Not a Distant Goal"

Interview with Lee Jaehwan, CEO of One Store

Antitrust Regulation on Platform Giants
Rising as an Alternative App Market
Expecting Success in Global Expansion

[Asia Economy reporters Seulgina Jo and Minyoung Cha] "'33% market share in the domestic application (app) market' is not a very distant goal."

Lee Jaehwan, CEO of One Store, the leading domestic app market, expressed confidence in an interview with Asia Economy at the company's headquarters in Pangyo, Seongnam-si, Gyeonggi Province on the 23rd, saying, "In the midst of antitrust regulatory movements against Google and Apple, One Store will be a good alternative."

The keyword that permeated the mobile platform ecosystem this year was 'fairness.' The practice of Google Play and Apple App Store, which have overwhelming market dominance, forcing developers to use a specific payment method (in-app payment) and taking a hefty 30% commission, has come under scrutiny. Amid growing global criticism, One Store's approach of promoting coexistence with developers and lowering commissions has been highlighted as an alternative app market case.

CEO Lee emphasized, "Six years ago, when the company was launched, it was an uncertain future, but now it has become the only content platform competing with global app markets," adding, "In the first half of this year, One Store's growth rate was 38.3%, which is 3.5 times that of global app markets." However, it is painful that many popular game apps favored by consumers are still not listed on One Store. One Store's domestic app market share is 18%, about one-third of Google Play's 71%.

One Store, aiming for 200 billion KRW in sales this year, is ready to run nonstop until the end of the year. After unveiling a cross-platform, it is also pushing for an initial public offering (IPO). CEO Lee stated, "We will grow the app market business in the Korean market on a larger scale while creating three pillars: 'global,' 'multi operating system (OS),' and 'content platform.'"

Below is a Q&A with CEO Lee.

- Recently, the National Assembly passed the Google Fair Trade Act (Amendment to the Telecommunications Business Act), which includes regulations on app market operators' commissions. What impact does this have on One Store?

▲ One Store is in the same position as Google and Apple in that the app market platform is subject to regulation. However, I think it is a good start in the sense of checking the monopoly operators. Since opportunities may arise for us in the process of restraining Google's monopoly, there are positive factors, so it is difficult to explain it simply as good or bad.

- Overseas app markets have virtually dominated the domestic market. Why don't consumers choose One Store?

▲ The most painful part is that the apps and games most sought after by consumers are not with us. A virtuous cycle is needed: many consumers → game companies listing → consumers returning, but since the app market started off tilted from the beginning, it was not easy to overturn. (Among 53 mobile games released by Korea's top three game companies?NCSoft, Netmarble, and Nexon?only 7 are currently listed on One Store.)

- Is achieving a 33% domestic market share against Google and Apple possible?

▲ It is not a very distant goal. Looking at apps and games listed simultaneously on One Store and Google Play, One Store's share is 40-50%. From the user's perspective, since it is the same game, if we attract the content, capturing consumers is not difficult. Discount benefits of about 10%, point accumulation, etc., are One Store's strengths. Customers who value customer service (CS), such as ease of refunds, feel frustrated with the limited communication channels of foreign app markets. Because of this, some customers prefer One Store.

- One Store has lowered commissions by 10% since 2018.

▲ The biggest pain point for app developers is the commission. We literally squeezed to lower commissions while maintaining customer benefits. There was considerable internal opposition at the time. There was even a sense of crisis that the business might be shut down. But we judged that it was time to take a definite gamble rather than a 'slow death.' One Store's growth began in the third quarter of 2018 after the commission reduction policy. Since then, for 12 consecutive quarters until the second quarter of this year, it has continuously set record-high results every quarter.

- You recently presented a new vision called 'Global Multi Operating System (OS) Platform.' Please introduce it in detail.

▲ We will transcend the boundaries of region, device and OS, and business area. First, we want to create a cross-platform. By installing the 'One Game Loop' program using Tencent technology, users can enjoy games across PC and mobile. Although there were specialized emulators before, most were small Chinese companies, so both app developers and consumers had pain points. It is unique worldwide for an app market operator to also operate an emulator. One Game Loop started beta service in September and currently offers about 20 games. It will soon launch with about 50 games.

We are also discussing cooperation with Microsoft (MS). For One Store, global expansion through MS will also become possible. Some form of integration will be made, such as including One Store-listed games within the MS Store mobile section.

- You also revealed plans for overseas expansion. You seem very determined.

▲ Since Korean games fit better in Taiwan and some parts of Asia, we are considering targeting Southeast Asia first in terms of alignment. Asia is the main target in terms of joint expansion with domestic game companies. We will go beyond the limitations of local app markets and expand into the global market. We have a strong will to create a successful case of overseas expansion. Personally, I have a sense of debt because I failed to successfully lead global business during my time at SK Telecom. Now the vision is clear, and the opportunity has come. We will create a good success case that expands overseas beyond the domestic market.

- You are also preparing for an IPO.

▲ We have completed the selection of the lead underwriter. I believe that if we focus on concrete achievements that can show definite movement toward the global multi-OS vision, the timing will coincide with the IPO. Considering the capital market trends, the timing is good. It is also the first case of an app market listing, so it is attracting a lot of attention in the market.

- Platform companies are expected to face strong criticism at this year's national audit. What are your thoughts?

▲ We will take it as a lesson. The social responsibility of platforms is an unavoidable part. I think One Store is no exception. Although One Store has not grown enough to be criticized for unfair practices yet, it could become a target someday. We must be cautious not to lose our original intention. We should think not about 'whether it makes money,' but about what inconveniences consumers have and whether we can solve them. If we fail to solve this, the platform has no reason to exist.

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