Domestic game companies are expanding their entry into the Southeast Asian market. Southeast Asia is being highlighted as a base for securing leadership in the global market, going beyond simply exporting games. With a high population and smartphone penetration rate, Southeast Asia represents a highly attractive market for domestic game companies.
According to the '2024 Korea Game White Paper' by the Korea Creative Content Agency, the proportion of Southeast Asia exports of domestic games in 2023 rose to 19.2%, marking it as the second-largest export market after China (25.5%). In 2022, the ranking was ▲ China (30.1%) ▲ Japan (14.4%) ▲ Southeast Asia (14.2%).
In 2023, the export proportion to China and Japan (13.6%) decreased, while Southeast Asia increased by 5 percentage points (p). Particularly noteworthy was the export proportion of mobile games, which reached 22.5% in Southeast Asia, the highest recorded. The total export value to Southeast Asia was 2.103 trillion won, breaking the 2 trillion won mark for the first time since the publication of the white paper.
Recently, domestic game companies have been making significant efforts to target the Southeast Asian market. Faced with limits on growth in the domestic market and increased uncertainties in China, the largest export market, they are turning their attention to a market with substantial growth potential. The total population of Southeast Asia is approximately 688 million, with a median age of about 29 to 30 years, indicating a relatively young demographic. The expansion of smartphone distribution has also led to an increase in demand for mobile games. According to global app market analysis firm Sensor Tower, the number of mobile game downloads in the Southeast Asian market increased by 3.4% year-on-year to 4.2 billion in the first half of last year.
Moreover, the similarity in gaming preferences between Southeast Asian users and Korean users is a positive factor for domestic game companies. In Southeast Asia, genres such as multiplayer online role-playing games (MMORPG) and multiplayer online battle arena (MOBA) are continuing to enjoy success, similar to Korea. In contrast, Japan, which competes with Southeast Asia for the second place in domestic game exports, has a higher preference for console games, creating entry barriers in that market. Given that Southeast Asian users show preferences similar to those of Chinese users, there is an analysis suggesting that it can serve as a testbed before entering the Chinese market.
Domestic game companies are recently employing various strategies to penetrate the Southeast Asian market. NCSOFT established a joint venture, 'NCV Games,' with Vietnamese IT company VNG last year. NCSOFT plans to introduce its games in major countries, including Vietnam, Thailand, Malaysia, Indonesia, Singapore, and the Philippines, starting with 'Lineage2M.' NCV Games will focus on thorough localization, supporting five languages: English, Vietnamese, Thai, Indonesian, and Simplified Chinese. All users in Southeast Asian countries will have access to play 'Lineage2M' on a single server.
Nexon is making significant efforts to enter Vietnam. In 2022, Nexon established a local development corporation, 'Nexon Dev Vina (NDVN),' under Nexon Network in Vietnam. Nexon Dev Vina announced in February that it would hire local developers, recently expanding its workforce to about 90 employees as part of its efforts to grow its local business. This is interpreted as a strategy to strengthen development and operational capabilities suitable for the Southeast Asian market, including Vietnam.
A representative from the gaming industry noted, "The Southeast Asian market has a huge growth potential in the related industry, with half of the population being gamers, which is why domestic game companies are focusing more on this region. Southeast Asia is a market equipped with demand, policy support, and infrastructure. Therefore, game companies are expected to carefully localize their super intellectual property (IP) to fit local cultures."