Report: South Korea plans $200B game fund

Tech-savvy country commits to near-term cash infusion of $235 million through 2012, with billions more available to bolster global industry standing.

South Korea is perhaps best known within the industry for its multitude of online gaming companies. In addition to a number of regional publishers, the tiny nation plays home to such global gaming companies as Lineage II runners NCsoft and free-to-play aficionados Nexon. In the future, though, Korea's gaming industry may be in for expansive growth.

The Chosun Ilbo is reporting this week that South Korean Minister of Culture, Sports, and Tourism Yu In-chon has pledged to invest ₩350 billion ($235 million) in South Korea's game industry through 2012 as well as build yearly exports to W5 trillion ($3.36 billion). As per the report, Yu's commitment comes in the wake of the Korean game industry achieving its $1 billion export goal two years ahead of schedule.

The South Korean news outlet also reports that Yu has announced plans for 60 other gaming-related initiatives, including a $200 billion game fund with aims to establish Korea as one of the leading game producers in the world.

63 Comments

  • buttons2010

    Posted Dec 8, 2008 6:51 am PT

    You know apart from a couple of the SNK franchises (when they went bust), I don't think I've played many Korean games. Is Psyvariar Korean? Heard that somewhere. That games badass!

  • quirky_clayboy

    Posted Dec 8, 2008 1:27 am PT

    @cube-gage

    I'm sure the Chinese Gov is reading this... no really.

  • cube-gage

    Posted Dec 7, 2008 6:57 am PT

    Im not saying it is South Koreas fault, I was just drwaing the sickening parralels between the two. I really dont know why China doesnt sort out NK. It is an embarrasment to China, seriously china if your listening put a puppet governent in NK and shift some of your industry to NK.

  • olliegoddard

    Posted Dec 7, 2008 6:38 am PT

    well said howardorr

  • ComBaTsOuL

    Posted Dec 7, 2008 3:53 am PT

    cube-gage
    north korea can spend millions on testing nukes under ground and they also look after anyone who is in the military but cant put any of that money towards food and medicine??
    I think the blame lies on the people in charge in that country....

  • trw534

    Posted Dec 6, 2008 8:44 pm PT

    i thought china was the biggest industry of video games?

  • berio2toru

    Posted Dec 6, 2008 1:50 am PT

    Sounds like finaly video games are being treated highly just like the film industry. Damn if only UK government just saw the protential of games for the economy and stop being brainwashed by the newspapers UK, we'll be back in the top 5 of devlopers in the world. And I totally disagree with grigjd3, there is more talent in East Asia at the moment and that just shows how much the governments there supports them. (Saying that though Canada is big to; also with lots of support from the government). Shanghai is going to be the next big develpement scene and maybe Seoul by the looks of things now.

  • howardorr

    Posted Dec 6, 2008 12:02 am PT

    @cube-gage: I don't see how it is South Korea's fault that North Korea is run by vicious, incompetent criminals. They can spend money on whatever they like. It's their money.

  • grigjd3

    Posted Dec 5, 2008 11:42 am PT

    This is bad for games. Effectively, this will prop up sub-standard video games and drown out real talent.

  • Media_Mind

    Posted Dec 5, 2008 11:23 am PT

    good for them?

  • cube-gage

    Posted Dec 5, 2008 11:19 am PT

    Yeah, same story in the UK. The banks were given hundreds of billions of tax payers money and they would never give a penny of that to the National Health Service, or nationalising our public transport network or helping out British industry. Bankers suck. But i feel for those in North Korea that havent even got food or medicine and in the south 200BN is being spent on video games. Kinda sick.

  • Eric2980

    Posted Dec 5, 2008 11:18 am PT

    I hope NCsoft gets some of that money and gives it to ArenaNet so they can make guild wars 2 bad ass. Not sure that would have much effect considering it comes out next year...

  • PSdual_wielder

    Posted Dec 5, 2008 10:56 am PT

    Finally, a starting step for a series of change. People are often left thinking Japan as the solely possible Asian country that is capable of making globally regarded video games. Truth is there is a giant pool of untapped human resources there. South Korea and as well as China now have major education programs dedicated to this field, but that wouldn't mean anything unless there would be people willing to invest in the industry. This is a significant step forward.

  • necronaux

    Posted Dec 5, 2008 10:20 am PT

    They know where to invest their money. At least they'll see a return on their investments. Unlike the US, giving $750 Bil to the execs in the banking industry (like we'll ever see a penny of that again).

  • imperial_agent

    Posted Dec 5, 2008 9:41 am PT

    X-PlayKid

    Just because the United States government doesn't give federal money to the gaming industry doesn't mean it isn' "accepting" of the game industry. And besides, do you really want the government putting their hands in the gaming industry? It gives them more clout in censorship and control over price and production. The govenment has no business giving away taxpayer money to the video game industry, and therefor no business "owning" it as well. Keep them the heck out.

  • X-Playkid

    Posted Dec 5, 2008 9:03 am PT

    If only the US could be more accepting of one of their most successful industries.

  • OGKNav

    Posted Dec 5, 2008 8:22 am PT

    AWESOME!

    /DJ MAX

  • Orasion_Seiz

    Posted Dec 5, 2008 8:12 am PT

    hmmm i was my country would be that commited when it comes to the gaming industry.

  • Xanzibar_Joe

    Posted Dec 5, 2008 7:53 am PT

    Awesome!!

  • toyota22

    Posted Dec 5, 2008 7:35 am PT

    Nice, that would be super nice, more games for me))))

  • fooldog01

    Posted Dec 5, 2008 7:15 am PT

    Well at least BrazNomar here understands the simple basics of economics. Its not that hard to figure out, people.

  • BrazNomar

    Posted Dec 5, 2008 4:55 am PT

    To those saying the money could go to poverty. You know why no one does that? Even that (dreamy IMO) US$ 200B would probably feed people over a few days at best, and there wouldn't be any return. Thus they'll starve again and the helpers will even get poorer. That's why the best thing to be done is encouraging entrepreneurship, not giving food for free. S. Korea could well be doing that now for the place they have sovereign over, which is their own land. That is good enough. If only other governments did the same...

  • punkpunker

    Posted Dec 5, 2008 4:26 am PT

    yes,sure. but they have no taste for up-to-date games.why spend much? i go to their cybercafe and all i see is starcraft or warcraft games are played except for young kids.
    @richard7666, i see your point the topic say 200B not 200M

  • copymachine23

    Posted Dec 5, 2008 3:13 am PT

    I can see giving possibly a tax break to gaming developers but subsiding them to the tune of $200 million??? Do they know there's a global recession going on? Do they know their neighbor to the north has nukes? Did they blow $200 million on meth to come up with this plan?

    I'm glad to see America isn't the only country wastefully spending money

  • Silentme

    Posted Dec 5, 2008 3:02 am PT

    "irongutvi Posted Dec 5, 2008 6:49 am GMT south koreans must have money to spend it all on MMOs(mainly).
    do something nice and use it wisely like on military if north korea gets WMD."

    You have no idea what you are talking about. Military Service is manditory in S. Korea. Every guy has to serve and they are old school too, like how our military used to be. They are a tough bunch over there. They spend alot on the military already and with USA bases spotted all over S. Korea, N. Korea wont make a move which is why we are still only officially at a cease fire with N. Korea and have been since the 50's. Technically N. and S. Korea are still at war.

  • Richard7666

    Posted Dec 5, 2008 2:19 am PT

    LOL @ 200 billion. This article contradicts itself, and someone doesn't know how to count. It's 200 (well, 235) MILLION, not billion. 0.2 billion, in other words.

    $200 billion is almost a quarter of South Korea's entire GDP.

  • jsmoke03

    Posted Dec 5, 2008 12:56 am PT

    lets get some good fighting games out of korea since theres a good fighting community out in korea

  • irongutvi posted Dec 4, 2008 10:49 pm PT (does not meet display criteria. login to show)

    irongutvi

    Posted Dec 4, 2008 10:49 pm PT (hide)

    south koreans must have money to spend it all on MMOs(mainly).
    do something nice and use it wisely like on military if north korea gets WMD.

  • Targzissian

    Posted Dec 4, 2008 10:21 pm PT

    NCsoft is dumping the American sci-fi/military game Tabula Rasa, developed by Ultima creator Richard Garriott, in favor of games like the overly stylized and graphically obsolete grindfest Lineage 2. And now we will no doubt see more Korean style games invading the market. The only positive outcome I foresee is more scantily clad dark elf babes. At least this cloud has a silver lining. I just hope some of those Koreans start innovating and try to appeal more to American and European markets.

  • riptoe222

    Posted Dec 4, 2008 9:38 pm PT

    we dont need more games, we got plenty, we do however need more GOOD games, and games that actually work properly when you install them would be wonderfull, that would definitely be a valuable export

  • Lucidmike78

    Posted Dec 4, 2008 9:05 pm PT

    Imagine if S. Korea becomes what India has become for IT, haha. That would be insane. That's what it sounds like it wants to do.

  • Gamesterpheonix

    Posted Dec 4, 2008 8:41 pm PT

    Omg. That much money. That could fuel several small countries. Holy Freaking. I need to introduce my world site soon. Oh god soon.

  • ahyumifan

    Posted Dec 4, 2008 8:37 pm PT

    Yu In-chon used to be korean actors of 80s and 90s. Many people know who he is... Personally.. I think it is overkill, as there are crapstorm of MMO games flooding the Korean market every month.

  • bistofer

    Posted Dec 4, 2008 8:16 pm PT

    it's good to see somebody has finally noticed the economical significance of videogames. to bad that person happens to live on the other side of the world from me lol.

  • lucifer3999

    Posted Dec 4, 2008 8:13 pm PT

    yay more games!

  • TheC0m1ssar

    Posted Dec 4, 2008 7:48 pm PT

    In South Korea, gaming is a way of life, especially with Starcraft and their mass-produced microtransaction MMOs.

    And for them, it is a huge source of revenue, so it would be wise to invest in your country's biggest source of profit, right?

  • DarthVillainous

    Posted Dec 4, 2008 7:48 pm PT

    @ronniepage 588

    Most North Koreans probably don't even know what video games are, the country is so impoverished under its current leadership, so how could they be jealous?

  • skwrlX

    Posted Dec 4, 2008 7:48 pm PT

    @shadow8585: Dude, what are you thinking? it's NORTH Korea that has nukes.

  • Silentme

    Posted Dec 4, 2008 7:23 pm PT

    What is this crap about not spending money on there own industry of gaming and giving it to poor people from other countries? Since when is S Korea or anyone else obligated to give food to other countries. You people are always so kind with other peoples money, I say how can you afford to be on the computer you type on, you should have used that money for starving people in Africa. Go feed the poor but stay out of my pocketbook and anyone elses, your hands dont belong there.

    Good for you S. Korea, i did service over there and had a great time while keeping those crazy N. Koreans out of the country.

  • OmegaGear posted Dec 4, 2008 7:20 pm PT (does not meet display criteria. login to show)

    OmegaGear

    Posted Dec 4, 2008 7:20 pm PT (hide)

    People giving the thumbs down to posts about helping starving people instead of funding gaming. How shameful.

  • funsohng

    Posted Dec 4, 2008 7:02 pm PT

    well, as a korean, i like that korea is looking more into gaming industry, but don't they have to do something about the economy right now? i mean, it's pretty serious. hope this actually bring some profit.
    @shadow8585
    u do know that we south koreans dont have nukes, right.

  • macrules_640

    Posted Dec 4, 2008 6:59 pm PT

    Well it doesn't surprise me that the South Korean government would sink some money into gaming since PC gaming is very big over there.

  • combatsoldier

    Posted Dec 4, 2008 6:54 pm PT

    man this is great. Thankyou.

  • bizuit

    Posted Dec 4, 2008 6:54 pm PT

    If done correctly this could move the aggregate supply to the right with the multiplier of lets say 4, if done correctly this could pump 800 billion back into their economy. So yes this can help their economy, money spent the right way can almost help 100% of the time. As long as its spent in the private sector and not back into the government, it should really help them out.

  • shadow8585 posted Dec 4, 2008 6:44 pm PT (does not meet display criteria. login to show)

    shadow8585

    Posted Dec 4, 2008 6:44 pm PT (hide)

    $200B?!? yeah, a gaming program that will let them blast nukes at any north american city with the push of a "button" on the "controller" while youre looking at the "tv screen"...

  • DDR_Midian

    Posted Dec 4, 2008 6:32 pm PT

    "At least this money isn't being spent towards war."

    Let's hope the same can be said for the insane profits they're bound to make from this.

  • ronniepage588

    Posted Dec 4, 2008 6:28 pm PT

    are north koreans jealous of south korea, cause i would be

  • musicaz70

    Posted Dec 4, 2008 6:11 pm PT

    At least this money isn't being spent towards war.

  • Mystoksor posted Dec 4, 2008 5:48 pm PT (does not meet display criteria. login to show)

    Mystoksor

    Posted Dec 4, 2008 5:48 pm PT (hide)

    finally, a government is backing a non-evil industry

  • happyguy999

    Posted Dec 4, 2008 5:40 pm PT

    The head line is a little misleading, I thought they meant 200 billion dollars not 200 billion ₩, the Korean currency.

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