Gaming Industry, Responsible for 60% of K-Content Exports, Faces Only Regulation Without Support

In 2023, the export value of South Korea’s gaming industry reached 8.394 billion dollars (approximately 10.9785 trillion won), accounting for about 60% of the total K-content exports that year, which amounted to around 14 billion dollars. Even as K-content exports were recorded at 15.18 billion dollars in 2024, gaming continued to serve as the financial “ace” of K-content in terms of export volume. Despite this, the gaming industry is often portrayed solely through negative frameworks such as “gambling-like nature,” “addiction,” and “being a target for regulation,” preventing it from establishing itself as a national soft power like K-pop and K-dramas.

CJ Group, as a Hallyu-related enterprise, shifted its strategy to focus on K-beauty and K-food rather than content. CJ had led the production of K-movies and K-dramas since the mid-1990s and drove Hallyu forward by winning four Academy Awards for the film “Parasite” in 2020. However, CJ ENM is currently struggling. The domestic OTT service Tving has continued to operate at a loss for five years since its establishment, and recently released dramas have been criticized as lacking depth compared to global works such as Netflix’s “The Glory” and Disney+’s “Casinò.” CJ Group Chairman Lee Jae-hyun is expanding CJ Cheil Jedang’s K-food business in the Middle East to target the halal market and is also promoting the entry of K-beauty brands by partnering CJ Olive Young with local healthcare distributors.

The gaming industry faces structural bottlenecks. In fact, a 6.5% decline in gaming industry exports in 2023 compared to the previous year was the first time such a drop had occurred in over 20 years, and game exports declined in both the first half and third quarter of 2024 compared to the same periods the previous year. The industry fears that full-year exports in 2024 will also decline. The core issue lies in the dual nature of current policies. Unlike K-pop and K-dramas, gaming faces only regulation without any support measures. Specific assistance such as tax incentives, overseas marketing support, or funding for indie and console projects is either absent or minimal.

Regulation itself is necessary. Enhancing transparency regarding probability-based items became mandatory in spring 2024, which is justified to protect youth and strengthen consumer rights. This is because cases of domestic developers manipulating probabilities resulted in fines and damaged industry trust. However, there is unfairness in how regulations are applied. Overseas game companies that do not have branches in South Korea can avoid administrative actions, while only domestic game companies bear the full burden of these regulations. While sales of Chinese games in South Korea have increased by more than 20%, exports of Korean games to China have been nearly halted due to “license” issues.

South Korea also has a large domestic market. In 2023, the revenue of the domestic gaming industry reached 22.9642 trillion won, representing a 3.4% increase from the previous year, with 84,970 people employed in the sector. Mobile games led the industry with 13.6118 trillion won (59.3%) in revenue, followed by PC games at 5.8888 trillion won (25.6%) and console games at 1.1291 trillion won (4.9%). With the global gaming market valued at around 200 billion dollars, South Korea maintains a 7–8% share, keeping it in fourth place globally.

In the global market, business models centered on live services and GaaS (Game as a Service) are becoming the new standard, but Korean game companies still focus primarily on maximizing in-app purchases. Partnerships with global platforms such as Netflix and Disney+ are also limited. Although Nexon’s “Dave the Diver” has sold over 5 million copies worldwide and KRAFTON’s “Battleground” maintains an 80% overseas presence even after eight years of service, these successes are confined to long-running IPs.

As of 2025, South Korea’s gaming industry is in a contradictory position. Exports remain a key driver of K-content and the industry continues to maintain global influence, but it is facing a period of transformation due to the penetration of generative AI, the entry of global tech giants into the gaming sector, and reshuffles in streaming platforms. There are concerns that if policies continue to focus solely on stricter regulations, South Korea’s gaming industry risks falling behind in global competition.