South Korean gaming companies are increasingly looking towards the West. But they are prevented from achieving international success by the “clan” way of the legal system in the country, believes Chang Byung-gyu, the founder of Krafton.
Chang Byung-gyu Photographer: Jean Chung. Source: Bloomberg
The head of the company that developed PUBG said this in an interview with Bloomberg.
We chose the main thing from the conversation.
- According to Ben Gyu, many gaming companies in South Korea appeared due to the fact that in the 1990s the government began to actively invest in the development of IT infrastructure. In particular, the money went to strengthen the quality of the Internet, the spread of 3G first, and then other generations of mobile communications.
- In the same years, the authorities began to support entrepreneurship in general. Ben Gyu did not name what measures the authorities took, but noted that thanks to this policy, companies such as Naver, Nexon and Neowiz were founded.
- Education has also played an important role in the current success of the Korean industry. Back in 1971, the Korean Institute of Advanced Technology (KAIST) was opened. Most of the current owners of technology companies have graduated from it. According to Ben Gyu, this place plays a key role in the formation of local game development.
- Among the key problems of the Korean video game industry , he highlights:
- Firstly, the lack of experience in global cooperation. South Korean companies usually don’t have the money and people to compete with Western developers and publishers.
- Secondly, there has been a policy in the country since the 1950s that supports the so-called “chaebols”. These are business conglomerates controlled by powerful families. According to Ben Gyu, both the economy and the legal system of South Korea are now aimed at protecting such companies.
- Ben Gyu is sure that in order for the gaming industry of South Korea to be able to compete with Western ones, it is necessary to carry out reform. He believes that the “clan” way of life has outlived itself and it is worth switching to a different business model. The founder of Krafton suggested that the government and companies that have risen without the help of families should work together to solve this problem.
Recall that on August 10, Krafton became a public company, having collected $3.8 billion during the IPO. It was one of the largest placements in the history of the country (only Samsung Life Insurance managed to attract more — $4.3 billion). Immediately after going public, the developer’s shares fell by 20%.