korean mobile market and penetration strategy for chinese developers

2012. 11. 17NEOWIZ GAMES CHINA

ELIOT SHIN

Index

1. Korean Mobile market Overview

2. Korean Mobile Trend

3. Penetration Strategy for Korean market

4. NEOWIZ as Mobile Publisher in Korea

Q&A

1. Korean Mobile market Overview

Korean Mobile Market Overview

US CHINA ENG KOREA JPN GER FRA CAN SPAIN

million

Numbers


US KOREA ENG FRA GER JPN … AVG of World

(%)

Smartphone Penetration Rate

As of JUL 2012


Smart phone Internet access

Mobile web

Mobile app

Web

Wifi

Korean mobile users are more ‘MOBILE’ dedicated Korea has good network infrastructure with ‘Unlimited data

service’

* Source : KISA 2012.8

Smart phone Access Network


* Source : KISA 2012.8

Down loaded mobile apps (multi select, %)

Number of Installed APP

Number of Frequently used APP

Game Comm Music Utility Map Weather News Video Shopping Stock Life TV Education eBook office


2012.2Q Game contents usage survey

Mobile game

Online game (client + web)

Online game (client only)

Online game (web only)

Arcade game

Console game

Board game

Web hard/P2P game

Software buying

Never

* Source : Korea Creative Contents Agency 2012.8

Have ever played!



2012.2Q Game playing time (min)

Online game (client)

Software

Online game (web)

Board game

Video Console game

Web hard / P2P game

Mobile game

Arcade game

Others



2012.2Q Game contents Buying rate

Mobile game

Online game (client + web)

Online game (client)

Online game (web)

Arcade game

Video Console game

Software buying

Board game

Web hard / P2P game

Never

Have ever bought!

Korean Mobile Market OverviewMajor Application Usage Time (Min/Day)

game

SNS

news

entertainment

etc

Game + SNS

48% Social

Game

Insight 1


‘Mobile + Web‘

Cross platform

Arcade PC Con-sole

Mobile

Global Game Growth Expectation per Genre

Insight 2

2. Korean Mobile Trend

Korean Mobile Trend

KAKAO TALK

36,000,000 registered users in Korea63,000,000 registered users worldwide

Each users’ average KAKAO friends number 93.5

KAKAO TALK

iOS Top 30 Download Rank in Game category (2012.10.30)

Korean Mobile Trend

KAKAO TALK

Android Top Daily Active User Rank in Game category (2012.10.31)

1. Dragon Flight2. Any pang3. Candy pang4. I love coffee5. Korean draw

something7. Puzzle zoozoo

CasualKilling time

Friendly

Korean Mobile Trend

KAKAO TALK

Simple & Easy & Playing together & Competition

Korean Mobile Trend

• 1heart after 8min

• Heart for gift• Ranking

among friends• 1min/PLAY

• Dragon item with strong force

• 5mil RMB/DAY(peak)

Any pang Dragon Flight

T STORE

T store, bigger market share over Apple and Google market

Monthly Revenue Share of Korean App Market

※ Source: SK estimation

Korean Mobile Trend

T STORE

17.3M

Accumulated subscribers

Accumulated Downloads Developers

Business performance as of October 8, 2012:

988M 33K

Registered Apps & Contents

0.37M

Monthly Transactions

US$ 12M

Monthly Active Users

9M

Korean Mobile Trend

Korean Major Mobile platform

T STORE

Paid Downloads : Game > VOD > Utilities > Music …Free Downloads : Utilities > Game > Fun > Education … Game (w/ In-Game Purchases) is the most profitable category, whereas utility (w/

In-App Ads) records the most downloads

Game29%

Fun6%

Utilities14%Music

12%

Edu-cation

4%

VOD26%

E-book8%

Game31%

Fun18%Utilities

45%

Music2%

Education3%

VOD0%

E-book1%

Paid Downloads Free Downloads

Korean Major Mobile platform

T STORE

Game is the most preferred and profitable application.

※ Source: SK Data (Oct 2011)

T STORE

Carrier-billing

2011 Achievement

Stand-alone

- D/L: 183,842

- Revenue: U$ 568K

In-App Purchase

- D/L: 278,090

- Revenue: U$ 483K

Examples of Global Games (Sep 18, 2012)

165,837 D/L1,000 KRW (U$1)May 22, 2012Gameloft

348,064 D/L3,000 KRW (U$3)March 18, 2011RealNetworks AP

649,890 D/LFreeJuly 14, 2011RealNetworks AP

141,132 D/L2,200 KRW (U$2)July 12, 2011GREE

1,131,684 D/LFreeJuly 25, 2011GREE

14,658 D/L1,100 KRW (U$1)July 11, 2012Rovio

97,111 D/L1,200 KRW (U$1)Nov 11, 2010Strastar

97,369 D/L5,000 KRW (U$4)July 28, 2011Joymoa

43,608 D/L5,000 KRW (U$4)May 24, 2012Gameloft

36,341 D/L5,000 KRW (U$4)Dec 7 2010Gameloft

Korean Mobile Trend

3. Penetration Strategy for Korean market

Penetration Strategy for Korean market

Good brandEasy to memorizeEnglish is acceptable

Cultural translationOrdinary expressionNatural feeling

Easy tutorialUser friendlyDetail explain

Local SNSKAKAOFacebook

Simple UI

3D or qualified graphic designGood network infraNo concern of file size

1. Localization


Apple store

Telecom market

T store

Olleh store

U+ store

Google play

KAKAO TALK

2. Multi Channeling

iOS

Android


Local paymentDifferent SDKs

Minimized versionUnified payment SDKFast updateFrequent communication with users

Cross border issueLocal accounttaxIncome transfer

Local OperationSNSPromotion / Target marketingPRCS

Synergy User pool Cross selling

3. Partnership

4. NEOWIZ as mobile publisher in Korea

NEOWIZ as Mobile publisher in Korea


RPG

SHO

OTI

NG

CASUAL

WEB GAM

E

SPOR

TS

Online Game lineup: Develop and publish 45+ titles Expanding both locally and internationally Game portal Pmang.com : 6 million monthly UV, 25 million RU #1 Korean game publisher: presence in 49 countries 2011 revenue: $660 million

http://www.pmang.com/


Representing Products

Mobile Social Platform High Quality Applications 10mil registered users Covering all major platforms


Mobile Game lineup: Develop and publish 20+ titles globally

欢乐王国逆转三国


TOGETHER WE CAN MAKE GREAT SUCCESS STORY

THANK YOU

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korean mobile market and penetration strategy for chinese developers

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