An Overview of Mobile Gaming in Asia, Part 1: South Korea

The South Korean mobile gaming market underwent a significant transformation following the 2011 reversal of restrictive government oversight, which previously required state review of all localized titles. This regulatory shift catalyzed a surge in domestic activity, with mobile gaming revenues projected to grow by 41% year-over-year in 2013. The market is currently characterized by high developer talent concentration and increasing international interest, evidenced by strategic acquisitions from global entities such as Disney, GREE, and Reliance Big Entertainment.

A central pillar of this ecosystem is the Kakao Games network, which leverages the massive reach of the KakaoTalk messaging app—boasting 95% penetration in the local smartphone market. By integrating social features and handling in-game payments, Kakao Games has become a dominant distribution channel, with its titles frequently occupying the majority of top-grossing spots on both the iOS App Store and Google Play. The platform operates on a revenue-sharing model that splits proceeds between developers, platform holders, and the network itself.

Beyond platform operators, major industry players are aggressively pivoting toward mobile development. Established firms like Gamevil, WeMade, and Hangame are scaling their mobile catalogs, with many targeting dozens of new releases for 2013. While some legacy companies like NCSoft and Neowiz have faced challenges in transitioning their core business models, the overall industry trend reflects a rapid, mobile-first expansion. This growth is supported by significant venture capital investment and a strategic focus on international markets, particularly China and Japan, as South Korean developers seek to export their successful social gaming mechanics to a global audience.