SK2, a New Powerhouse in the Gaming Industry … Brilliant on the Global… 2022-03-15

■ Smilegate’s strategy to combine gaming with K-drama, etc.

■ KRAFTON’s advantage in various contents

■ Kakao’s expansion in the metaverse and sports

There is a wind of change in the Korean gaming industry. Following 3N (Nexon, NCSOFT, Netmarble), SK2 (Smilegate, KRAFTON, Kakao Games) is rising as the new powerhouse in K-games.

These newly emerging game companies, armed with killer content, are making a splash in the global market. They are accelerating the expansion of their domains through IP diversification using game intellectual properties (IP), active engagement in convergence with the entertainment industry, etc.

According to industry associates as of March 14, Smilegate, KRAFTON, and Kakako Games are boldly challenging themselves in new businesses through convergence with other industries following IP diversification. This is to extend the lifespan of their existing IP while also generating various values for new business items.

Smilegate is leading IP diversification with its attempts to converge with K-dramas, etc. The e-sports drama “Cheonwolhwaseon” released in 2020 recorded 2 billion views in China alone. Smilegate has also unveiled an outdoor/indoor theme park based on its iconic game IP CrossFire. The company recently transformed the female lead character of its virtual reality (VR) game “FOCUS on YOU,” “Han YuA,” into a virtual human and is currently preparing for her debut in the entertainment industry in acting, music, and other areas.

KRAFTON is preparing to expand the universe of its iconic IP in PUBG with the title “PUBG Universe.” Last year, the company unveiled various contents including the documentary “Mystery Unknown” and short film “Ground Zero” starring actor Dong-seok Ma. The company is continuing to develop entertainment content with the production of the short film “Bystanders” this year.

Kakao Games, which has vowed to make this the first year of “beyond game,” aims to actively expand its business in three areas, metaverse (3D virtual worlds), non-fungible tokens (NFT), and sports. For this purpose, the company has invested in relevant companies (Puppy Red, On Mind, Mammo6, etc.) through its subsidiary Neptune.

These companies of SK2 are achieving significant performances in sales as well. An industry official said, “SK2 is emphasizing its user-friendly service as its biggest advantage” adding, “They will increase their numbers of new users based on this and these newly emerging companies are expected to make a splash this year as well.”