South Korea's On Line Game Business And Its Entry Into China Market

The purpose of this paper is to scan the current market information and forecast the outlook of South Korea's on line game business by examining macro economic factors, industry structure and characteristics, and its internationalization process in China Market whereby South Korea's on line game business are well prepared for opportunities and threats.Among the game industry which is very technology and content-oriented industry, on line game business is remarkable in terms of the market potential and growth rate. On line game business is very unique in value chain activities, which requires the unique distribution system, compared with non–on line game industry, and certain level of broadband penetration.The recent success of South Korea's on line game business is mainly attributed to Government support, high level of broadband penetration, demanding users and But due to fiercer competition, companies are seeking for new growing market, especially Asian market China and Taiwan, which is very attractive to them in terms of cultural affinity and potential profit. This on going internalization process casts opportunities and challenges for companies at the same time.However, unlike manufacturing industry, on line game business of foreign companies in China should face many unique obstacles such as presence of the tight local regulation, the infringement intellectual property, legal dispute, and unstable partnership. To tackle those difficulties, companies need to find more suitable business model, make those issues clear in stage of contracts, and look at sensitive issues brought by local communities.