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2014/08 2014/09 2014/10 2014/11

2014/12 2015/01 2015/02

Mobidays is a specialized mobile marketing company,making every effort to have proper understanding of mobile market and to activate mobile eco-system.

In order to do so, Mobidays established [Mobile Advertisement Research Institute: MARI] in August 2014 (blog.naver.com/mobidays01)

[Mobile Advertisement Research Institute: MARI] collects and studies domestic and overseas mobile related information and issues ‘VEUM’ (Very easy understanding of mobile) a main column, and ‘KM report’ a monthly trend report.

KM report is a report based on insight and information articles such as domestic / overseas mobile related investment news and market issues which provides mobile eco-system trend and issues.

We will keep working our best to release various and interesting news about mobile market in succession.Thank you.

Mobidays Team

2015/03

1

1. Korea is Mobile-Holic2. Korean Smartphones in Crisis3. Mobile Pays for Everyone4. No One Remains No.1 Forever

Domestic Issue

Mobile Conferences

Korea is Mobile-Holic

Mobile/Wire Phone Subscription State

Mobile PhoneSubscription

Wire PhoneSubscription

54,681,00057,208,000

17,620,000

Year 2013 Year 2014

16,939,000

Factors Considered to be Important when Purchasing Smartphones

Source Feb. 24. 2015. zdnet “Smartphones, Designs are more important than Price when purchasing“Mar. 19. 2015. etnews 57,200,000 mobile phone subscribers, 70% are ‘Smartphones’

2

Out of all mobile phone subscribers of 2014,

40,560,000 people use Smartphones

이동전화 가입자 중

70%

Exterior Design of the Device

21.4% 13.5%Price of the device Operatng System Recommendation

Data: Source: 2014 mobile internet usage condition research final report

(Research based on 6,000 people) 

Data: Statistics Korea, ‘2014 Korea’s Social Indicator’

72.4% 52.4%

Mobile Phone Subscription

70%

Forecast of the Korean mobile internet economy size

Daily Average Mobile Internet Usage Time is 1 hour 36 min

3

Data: KISA, 2014 mobile internet usage condition research final report

Data: Boston Consulting Group

28 billion USD(about 31.07 trillion KRW)

Mobile Internet Users

40 billion USD(About 44.039 trillion KRW)

Consumer surplus per person for mobile internet

$4,400(about 4,880,000KRW)※ Consumer surplus refers to additional value earned by consumers from paying for devices, apps, services etc

Mobile Internets are important to to 75% of all Koreans

75% of Korean population answered they would rather give up newspapers, chocolate, and fast-food rather than mobile internets

year 2013 year 2017

Korea is Mobile-HolicMobile Internets Cannot Be Given Up!

Prefer mobile internet at home/work even if wired internet is available

Use mobile internet more often than wired internet65.6%72.5%

Mobile Contents Usage State

Mobile Advertisement Expenses Progress (Unit: Hundred Million KRW)

Weight of Advertisement in Each Medium(Based on 2015 Observation Value, Unit %)

Mobile Video Watching Patterns

4

Data: Cheil, 2014 Korean total advertisement fee balance and observation

Data: GomTV, video streaming usage state research report

Mobile Video Watching Time

20s 48%Daily average View OVER 30 min

30s 62%, 40s 60%Daily average view UNDER 30 minVideo

45%

Webtoons19%

Games17%

Music16%

e-books3%

Free Views70%

Fixed payment

19%

Payment per Video

11%

2013

1 trillion 700

2014 2015(e)

8,391

4,600

Broadcast36.3

Print18.9

Internet18.3

Mobile10.8

Others15.8

Korea is Mobile-HolicMobile market’s next generation target

Year 2014 Global Smartphone Sales Share Percentage

Samsung Electronics’ smartphone sales share fell to h2nd place since Apple’s release of iPhone 6

Samsung Electronics are having a hard time in emerging markets such as India and China due to low-prices of local companies

Korean Smartphone Growth Progress

(Unit %)

Source Feb.24.2015. etnews Samsung’s smartphone sales market share fall down to 10% range…. Falling behind AppleMar.09.2015. etnews domestic smartphones having a hard time in foreign markets 5

Data: Strategic Analytics

- Decline of Korean smartphone growth in emerging markets since 3rd quarter of 2014 - Local smartphone brands such as Xiaomi, Lenovo, and Micromax are showing strength in homeland markets

Product innovation, differentiation, cost competitiveness

needed to regain market share 2013 Q1 2013 Q3 2014 Q1 2014 Q3

Others22.2%

LG Electronics4.3%

Huawei3.8%

Sony3.7%

Xiaomi3.7%

Samsung Electronics

25.1%

Apple37.6%

81.869.2 73.7

62

38.3

3.9-4.8

-14.5

44.5 48.5 24.1

0.9 1.7

-8.3 -5.8

-0.8

Advanced Market

Emerging Market

Korean Smartphones in Crisis

Korean Smartphones in Crisis

- Samsung Electronics’ market share in the Vietnam Smartphone market fell from 54% in 2012, to 38% in 2013, and to 26% in 2014.

- Samsung Electronics’ market share, fell from 1st and ranked 2nd, falling from 17.9% to 12.9% in the India Tablet market.

- During the fourth quarter of 2014, the Chinese smartphone market share ranked 5th, falling to 7.9% from 11% in the previous quarter.

Brand Mobile Devices’ Share Percentage in the Emerging Market

2014 Vietnam Smartphone Market Share Percentage

2014 Q4Indian Tablet Market Share Percentage

2014 Q4Chinese Smartphone Market Share Percentage

Source Feb.24.2015. zdnet Samsung, 印 No longer 1st in the Tablet marketFeb.24.2015. News1 Samsung declined to 5th place in the Chinese Smartphone market

Mar.16.2015. etnews Vietnamese Smartphone market’s rise… Samsung facing difficulties due to low-priced phones 6

Data: IDCOppo (China)

8%

Asus (Taiwan)6%

Others36%

Micromax(인도)25.1%

Samsung Electronics

(Korea)26%

Lenovo(China)9.4%

HP(USA)8.7%

Others43.8%

Datawind(India)9.6%

Samsung Electronics(Korea)12.9%

iBall(India)15.6%

Others45.6%

SamsungElectronics

(Korea)7.9%

Huawei(China)11%

Apple (USA)12.3%

Xiaomi(China)13.7%

Lenovo(China)9.5%

Mobile Pays for Everyone

- Ticket Monster released ‘Tmon Pay’ service which applied LG U+’s easy payment service Pay Now.- WeMakePrice plans to release an easy payment service in the fist half of the year through partnerships with external payment agency(PG). - According to the press, Coupang is also expected to release an easy payment service through partnerships with external payment agencies.

- Naver Pay completes payments using a virtual card number mapped with Naver IDs. - Naver plans to run Naver Pay based on the over 40,000 online franchises and experience of managing 15 million users from ‘Check-out payments’ since 2009.

Naver’s ‘Naver Pay’ to be released in June

Domestic Social Commerce industry regularize introduction of easy payment services

Combination of existing easy pay services

+

Partnershipsettled

Partnership in processing

원클릭 결제

Wire Transfer Function

Source Mar.08.2015. zdnet Social Commerce Easy Pay… is it truly easy for consumersMar.12.2015. zdnet Naver’s easy payment system, ‘Naver Pay’, to be released in June 7

Naver CheckoutNaver MileageNaver Cash

KB Card

BC Card

Samsung Card

Shinhan Card

Hyundai Card

KB Bank

IBK Bank

NH Bank

Shinhan Bank

Woori Bank

Fingerprint recognitionPayment password Non-confirm (One-click)

Using Naver ID Using cellphone numbersUsing past remittance history

SMS Confirmation 

Social Commerce

ExternalPaymentsAgency

- Saving external payments commission- Simplifying the process of consumer payment methods- Decreasing rate of consumer dropout during payments by 5~10%- Increasing amount of transactions and profits

Intention of decreasing payment accident dangers through partnerships with security confirmed companies

Introduction of easy payment service for own company

Mobile Pays for Everyone

Samsung Electronics’ ‘Samsung Pay’ to be commercialized in JulyApp Card

Consultative Group

- Samsung Pay uses NFC and MST(Magnetic Secure Transmission) technologies which allows consumers to complete payments on smartphones without extra equipment, installations, or changes.- Payments can be complete through one-hand operation fingerprint recognition.- Card numbers can be replaced with coded tokens and saved in secure areas in smartphones, thus preventing financial fraud even in case of smartphone losses.- Various additional services including card life cycle management and transaction records management are to be added.- They are to be released this summer in USA and Korea through Samsung Electronics’ smartphones Galaxy S6 and Galaxy S6 Edge.

Credit Card CompanyValue Added Services

network operatorsApplication of app card,

a one-time use virtual card

Source Mar.04.2015. etnews Samsung will release ‘Samsung Pay’ this summer…. Available for usage in over 30million stores worldwide 8

Samsung Card, Shinhan Card

KB Card, Hyundai Card

Lotte CardNH Card

BC Card

Hana Card

Woori Card

Global Card Company

Master Card

Visa American Express

Global Financial Corporation

Bank of America City,

JP Morgan Chase,

US Bank

NICE I&T

KICC

KIS IC

Daou Data

+ +APP

KARD

Mobile Pays for EveryoneEven Mobile Payments Can Be Done Through Beacon

Source Feb.26.2015. etnews Card companies show interest in Beacon through Fintech 9

Release of ‘ZEP(Zero Effort Payment)’, easy payment service app that uses Beacon

Payment POS approach

Payment complete when the manager confirms customer then presses payment button

Customer payment information revealed on Payment POS screen

Preparing for mobile marketing and payment service using Beacon, in partnership with BC Card

- In some areas, ‘Giga Beacon Platform’, which utilizes KT’s Near Field Communication technologies, is used to provide customers passing by the area with information about nearby franchise stores, events, coupons etc.

Aggressive approaches using affiliates

- Lotte Card presented a location footing service using Beacon at the Jarasum International Jazz Festival last year. - Lotte is expected to pursue various marketing methods using Beacon through its affiliate, Lotte Members, such as installing Beacon terminals in 300 franchise stores in the Lotte World Mall

What is Beacon?Beacon, a wireless sensor for short-ranges, can provide various information and services to smartphone users making use of bluetooth functions

Mobiday’s Mo.I.E ‘Beacon, the future of mobile advertisements’ http://goo.gl/GRlXxI

No One Remains No 1 ForeverNaver turns the table in the mobile games market

Data: AppRanker

Souce Feb.24.2015. etnews Naver plans to start up ‘Line’ using games… partnership with Netmarble completeMar.17.2015. zdnet ‘Raven‘ ranks 1st on highest sales in major markets 10

February 2015, Naver and Netmarble Games form a Games Co-Marketing Alliance

Netmarble releases new mobile RPG Game ‘Raven’ in March 2015!

WAU: 821,100 Avg. Run Count: 11/Day Avg. Play Time: 2HR 59Min 22Sec/per run

New mobile games ‘Raven’ and ‘Chrono Blade’ under co-marketing

- Total directional marketing to be unfolded using Naver’s marketing platform

- Pursuing marketing methods using Naver’s online marketing knowledge and developing marketing methods for PC and mobiles

- Planning to enhance awareness and interest for Netmarble Games

Apple App Storewithin 2 days of release

Highest Sales1st Place

Google Playwithin 5 days of release

Highest Sales 1st Place

Download number at 800,000 overall

Highest DAU over 500,000

Entering Kakao Games

About 500,000 subscribers secured

using pre-registeration

Large-scale marketing such as Naver banner, TV,

outdoor billboards etc

*DAU: Daily Active User*WAU: Weekly Active User

2015.03.23 ~ 2015.03.29

Source 2015.03.10 zdnet 이통3사 앱 개발규격 통합…판매는 별도 11

Game companies exit Kakao

Three Major Mobile Communication Companies unite the app store registration standards!

- Game companies are exiting Kakao as more foreign-made games and cases of Netmarble’s Raven are raking high in sales without entering the Kakao Games platform. - Daum Kakao is said to have considered taking over T Store to link it with Kakao Games in order to lower commission fees.

- Main domestic game companies such as Netmarble Games are getting ready for releasing their independent game platforms by showing efforts such as releasing ‘Netmarble Store’ trademark registrations.

- The app stores of the 3 major domestic mobile communications companies, T Store, Olleh Market, and U+ Store, will have a unified registration standard.- A unified developing center will be founded in April for app stores run individually in the 3 companies, meanwhile being maintained. - Apps that have been released by existing app stores of mobile communications companies will have to be changed according to the new standards of the unified developing center. Develops

app program foreach app stores

Development and registration of app meeting the unified standards

Developer Developer

T Store

U+ Store

Olleh Market

SDK

SDK

SDK

No One Remains No 1 ForeverExiting Kakao, to individual platform formation

Mobile Conferences

12

Date: 2015 APR 7th (TUE) 14:00~18:00

Place: Ferrumtower, 5-19 Elgiro, Jung-gu, Seoul

http://conference.etnews.com/fintech

1. Views on Fintech security from experts of security and finance

2. Connected World 2015

Date: 2015 APR 8th (WED) 09:00~17:30

Place: Grand ballroom Ritzcaltonseoul, 602 Yeoksam-dong, Gangnam-gu, Seoul

http://conference.etnews.com/fintech

3. UNITE SEOUL 2015

Date: 2015 APR 16th (TUR) ~ APR 17th (FRI) 10:00~18:00

Place: Grand Intercontinental Seoul Parnas, 159-8 Samsung-dong, Gangnam-gu, Seoul

http://unity3dkorea.com/uniteseoul2015/

Source Domestic Issue

13

2015.02.24 zdnet “Smartphones, Designs are more important than Price when purchasing“http://www.zdnet.co.kr/news/news_view.asp?artice_id=20150224083145

2015.02.28 머니투데이 Korea is ‘into’ mobileshttp://www.mt.co.kr/view/mtview.php?type=1&no=2015022409484925419&outlink=1

2015.03.19 etnews 57,200,000 mobile phone subscribers, 70% are ‘Smartphones’http://www.etnews.com/20150319000111

1. Korea is Mobile-Holic

2015.03.09 etnews domestic smartphones having a hard time in foreign marketshttp://www.etnews.com/20150309000159

2015.02.24 etnews Samsung’s smartphone sales market share fall down to 10% range…. Falling behind Applehttp://www.etnews.com/20150223000274

2015.02.24 zdnet Samsung, No longer 1st in the India Tablet markethttp://www.zdnet.co.kr/news/news_view.asp?artice_id=20150224080829

2015.02.24 뉴스1 Samsung declined to 5th place in the Chinese Smartphone market http://news1.kr/articles/?2106286

2015.03.16 etnews Vietnamese Smartphone market’s rise…Samsung facing difficulties due to low-priced phones http://www.etnews.com/20150315000038

2. Korean Smartphones in Crisis

Source Domestic Issue

14

2015.02.26 etnews Card companies show interest in Beacon through Fintechhttp://www.etnews.com/20150226000276

2015.03.04 etnews Samsung will release ‘Samsung Pay’ this summer…available for usage in over 30million

stores worldwide http://www.etnews.com/20150304000328

2015.03.08 zdnet Social Commerce Easy Pay… is it truly easy for consumershttp://www.zdnet.co.kr/news/news_view.asp?artice_id=20150307223319

2015.03.12 zdnet Naver’s easy payment system, ‘Naver Pay’, to be released in June http://www.zdnet.co.kr/news/news_view.asp?artice_id=20150312103757

3. Mobile Pays for Everyone

2015.02.24 etnews Naver plans to start up ‘Line’ using games… partnership with Netmarble completehttp://www.etnews.com/20150224000150

2015.03.10 zdnet mobile communications companies unite app development standards…. Sales are seperatehttp://www.zdnet.co.kr/news/news_view.asp?artice_id=20150310100722

4. No One Remains No.1 Forever