TENCENT(HK:00700) 3 6 Ke·2026-01-14 07:13Core Viewpoint - The article discusses the decline of Korean online games in the Chinese market, which were once dominant but have lost their appeal among younger players, leading to a significant shift in the gaming landscape [1][3][12]. Group 1: Historical Context - Korean online games, such as "Dungeon & Fighter," generated 94% of their sales from Chinese players in 2019, amounting to 6.2 billion RMB [2]. - The peak of Korean online games in China occurred around the early 2000s, with titles like "Legend of Mir" and "MapleStory" becoming immensely popular [6][8]. - By 2002, Korean games had already earned 600 million RMB from Chinese internet users [7]. Group 2: Reasons for Decline - The primary reason for the decline is the conflict over profit-sharing between Korean game developers and Chinese agents, leading to a breakdown in collaboration [12][21]. - Korean game companies often require Chinese agents to invest heavily in marketing and localization, which has led to dissatisfaction and disputes over revenue sharing [21][22]. - Recent legislative changes in South Korea have made it more difficult for Chinese companies to act as agents, increasing operational costs and prompting many to develop their own games instead [22][23]. Group 3: Market Dynamics - In 2017, Korean game exports to China accounted for 60% of total exports, reaching 3 to 4 billion USD [24]. - The deterioration of Sino-Korean relations, particularly due to geopolitical tensions, has further restricted the entry of Korean games into the Chinese market, allowing local companies to thrive [25]. - Chinese gaming companies have begun to dominate the Korean market, with titles like "The Last War: Survival" generating significant revenue in Korea, indicating a reversal of fortunes [30][33]. Group 4: Financial and Operational Challenges - Korean game developers face significant financial constraints, limiting their ability to innovate and compete with Chinese firms that have stronger capital backing [30][31]. - The success of Chinese games like "Black Myth: Wukong" highlights the disparity in capital and operational capabilities between Chinese and Korean gaming companies [27][29]. - Many smaller Korean companies struggle to survive, as failed game projects can lead to immediate financial crises due to their limited resources [33].