ERIC_CHOI_Kakao_Kakao - The Power of Social Platforms

Lessons from 2013: Korea’s Mobile Game Market

Kakao Corp.

Global Game Business Team

Team Leader Eric Choi (eric@kakao.com)

Contents

01 Prologue : 2013 Summary

02 Lessons from 2013

03 Epilogue : 2014

1. Prologue : 2013 Summary

Trends in South Korea are…

Android dominates Korea

Plenty of quality game users

World No.1 Mobile Infra

The world’s no.2 Android game market From Casual to Mid-Core/Hard-Core

RPG Sports TCG

Strong Social Graph

started @ 2012.07.

+

Android market becomes 10 times

bigger than iOS market in Korea

Every Korean Becomes

Familiar with Mobile Games

Increasing Focus on High-ARPU

Games

Casual Games Mid-Core /

Hard-Core Games

Hmmm…

1. Prologue : 2013 Summary

Rapid growth of Korea’s mobile game market: KakaoGame as the main driver

0 M USD

20 M USD

40 M USD

60 M USD

80 M USD

100 M USD

Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13

About 68% of this growth is driven by games on KakaoGame Platform. KakaoGame Platform dominates Korea

Compared with 2012, Korea’s mobile game market has grown 51.4 % in terms of total sales. It is now a 1.1 billion dollar market

Kakao Game Platform has continued to grow in 2013, reaching its peak in revenue in December 2013

KakaoGame Platform Revenue 01/2013 – 12/2013

Yeah!

1. Prologue : 2013 Summary

Korean games make up for most of the game revenue

Domestic

Kakao Game

(65%)

Domestic

Non-Kakao Game

(32%)

Global

Kakao Game

(3%)

….

1. Prologue : 2013 Summary

Candy Crush Saga and Megapolis: Anomalies or a new hope?

Candy Crush Saga

for Kakao

Megapolis

for Kakao

Contents

01 Prologue : 2013 Summary

02 Lessons from 2013

03 Epilogue : @2014

2. Lessons from 2013

Kakao’s social graph remains powerful

12.11.16.

Top Gross Ranking: 27 Top Gross Ranking: 2

13.09.13.

12.01.30.

13.12.24.

Top Gross Ranking: 82 Top Gross Ranking: 12

25

70

Before Kakao After Kakao

2. Lessons from 2013

Well-Made, Solid In-App Purchase Business Model, Proven Quality

<Worldwide>

Contents

01 Prologue : 2013 Summary

02 Lessons from 2013

03 Epilogue : @2014

4. Epilogue- @2014…?

All our dreams can come true, if we have the courage to pursue them

- Walt Disney

thank you