In-game purchases
Alternative payment methods
Revenue
South Korea's expanding gaming market
October 3, 2024•7 min
In today’s fiercely competitive video game landscape, game developers and studios that understand the nuances of each market have the strongest opportunity to grow globally. That’s why we created this guide to understand South Korea’s gaming market and to help its developers expand beyond its own country, the world’s 4th largest —and one of the most desirable— video game markets.
You don’t have to dig deep into video game history to see that South Korea has significantly influenced our industry. Forecasters predict revenue to reach US$13.70bn by the end of 2024, with an annual growth rate (CAGR 2024-2029) of 7.95. The country’s market volume is projected to reach US$20.08bn by 2029.
In Korea, playing video games rivals listening to pop music for consumer attention. Korea’s gamers are devoted to the titles they love most, including BattleGrounds Mobile, League of Legends, Lineage, and Among Us. As for genres, MMORPG. The Lineage series by NCSOFT leads the pack with young gamers, as well as players in their 30s and 40s.
With information and analysis from Xsolla’s in-house global gaming experts, we’ll help you understand the following:
Digital wallets and mobile payments
Today, about two-thirds of South Korean e-commerce happens on mobile, and the country ranks #4 worldwide for mobile e-commerce, according to eMarketer.
Mobile gaming has created an opportunity for South Korea to continually evolve its modern e-commerce landscape. Several large South Korean corporations developed mobile payment and digital wallet solutions with seamless and secure transactions, which were adopted quickly by a market eager for local options. All of the digital wallets below are included in Xsolla Payments.
WEMADE launched the open-world fantasy MIR4 in 2021. The game boasts over 1.4 million concurrent players worldwide. Still, WEMADE aimed to boost engagement and the number of purchase transactions.
After meeting Xsolla, WEMADE decided to connect MIR4 with multiple payment partners to maximize the game’s reach to international players, including those from Brazil, the Philippines, the USA, and Thailand.
- Gaming’s growth inside South Korea
- Localized payment solutions
- How to easily grow your game beyond South Korea with help from Xsolla
Gaming's growth in South Korea
In-country numbers The gaming numbers tell an even more exciting story. The country has over 35 million gamers, nearly half paying to play. Combined with an ecommerce market of USD$117 billion, this makes the average revenue per gamer in South Korea one of the highest in the world, second only to Japan. Overall, South Korea’s gaming activity adds up to USD$7.4 billion — making it a big opportunity for growth and revenue. As a result of the boom, South Korean gamers can look forward to a more blockbuster titles from behemoths including Microsoft, Sony, and Nintendo —as well as indie studios— for a broad range of consumer options. Mobile and esports for the win Mobile gaming and esports are on the rise with a promising trajectory thanks to South Korea’s strong 5G infrastructure and consumer comfort with the country’s rapidly advancing technology. That, and fueled in part by active support from the Ministry of Culture, Sports, and Tourism, the popularity of esports is rising exponentially. The approval of Korean esports Association, plus the launch of global tournaments —such as League of Legends World Championship held in Seoul— contributed to a healthy 2023 economy with an approximate profit of USD$153 million. Beyond borders China and Southeast Asia are historically the heaviest consumers of South Korean games. To date, China has the heartiest appetite for South Korea’s games (34.1%,) with South East Asia coming in second (17.0%.) After Korean exhibitors introduced newly released titles at Gamescom 2023 —the world’s largest game show— Europe is developing a keen interest in the country’s titles; hence, heading into 2025, Europe is the next opportunity focus point for South Korean developers.
Localized payment solutions
Since 2022 both the consumer market and government demonstrate a much broader acceptance of multiple browsers. Various global and regional e-commerce payment types have also grown in popularity, particularly mobile payments and digital wallets. Today, South Korea is a leader in digital transactions with one of the world’s biggest e-commerce markets and a growing base of powerful, local payment providers.
Digital wallets and mobile payments
Today, about two-thirds of South Korean e-commerce happens on mobile, and the country ranks #4 worldwide for mobile e-commerce, according to eMarketer.
Mobile gaming has created an opportunity for South Korea to continually evolve its modern e-commerce landscape. Several large South Korean corporations developed mobile payment and digital wallet solutions with seamless and secure transactions, which were adopted quickly by a market eager for local options. All of the digital wallets below are included in Xsolla Payments.
- Kakao introduced Kakao Pay in 2014, a mobile digital wallet that shoppers used by registering via KaKaoTalk, a popular and free messaging app. It was adopted quickly—according to Kakao Pay, the system is used by over half of South Korea’s 50 million population, processing upwards of 3 trillion transactions a month. Kakao Pay was initially only available to domestic companies, which has changed thanks to Xsolla being among the first companies offering Kakao Pay to game developers and studios outside of South Korea.
- Naver, Korea’s leading portal site operator, launched the mobile payment system, Naver Pay, in 2015. According to eMarketer, Naver Pay is one of the most popular mobile payment apps, used by 58.6% of South Korea’s market.
- Another popular app is Payco, which accounts for 30% of South Korean mobile payments, according to eMarketer. Payco is known for being among the first local payment partners to connect to Google Play and YouTube. This unique advantage will drive further growth; the payment system has already reached over 10 million downloads and enabled $1.5 billion in payments.
- TOSS eWallet is another widely used tool. With an audience of 11 million users and 20 million downloads, it works with all of South Korea’s financial institutions. TOSS’ standout characteristic is security—according to self-reported statistics, the payment system has had zero security-related incidents since its launch.
Global expansion made easy for Korea's developers
With eyes on gaming’s exponential growth in-country, paired with many new opportunities beyond the local market, South Korea’s game developers are naturally seeking more visibility with, acquisition of, and revenue from gamers across the globe. Working with an international game industry expert, many of South Korea’s developers have successfully expanded their games far beyond their country’s borders. WEMADE’s MIR4
WEMADE launched the open-world fantasy MIR4 in 2021. The game boasts over 1.4 million concurrent players worldwide. Still, WEMADE aimed to boost engagement and the number of purchase transactions.
After meeting Xsolla, WEMADE decided to connect MIR4 with multiple payment partners to maximize the game’s reach to international players, including those from Brazil, the Philippines, the USA, and Thailand.
The best path forward
As the global appetite for South Korean games continues to grow, there's a huge opportunity for developers to expand reach and revenue. But breaking into diverse markets requires a strategic approach. To maximize success and avoid costly pitfalls, it's essential to partner with an ecommerce expert who understands the unique cultural nuances and regulatory landscapes of each region. Help from the right partner Navigating the South Korean gaming market can be complex. Staying up-to-date with local trends and regulations is crucial but can be resource- and time-intensive. A strategic distribution partner can help you:- Streamline localization. Ensure your game aligns with South Korean cultural nuances and preferences.
- Optimize monetization. Reach a wider audience through strategic marketing campaigns and commerce solutions.
- Mitigate risk. Reduce the financial and operational burdens associated with direct market entry by relying on a Merchant of Record with extensive global game industry experience.
Next steps
South Korea represents a massive development market in search of new audiences. The right path and partner can ensure long-term success. Contact Xsolla’s experts today and explore how our solutions can take your business to the next level.Featured articles
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