South Korea Video Game Market Report and Forecast 2025-2034

The South Korea Video Game market reached a value of more than USD 12.40 Billion in 2024. The South Korea video game market is expected to grow at a CAGR of 8.40% between 2025 and 2034. The video game market of South Korea is expected to reach USD 27.78 Billion by 2034.

News and Developments

According to the Korea Creative Content Agency (KOCCA), the South Korean Gaming Market reached 18.9 trillion won (209.6 billion dollars) and ranked four worldwide in 2020. Mobile games were the best-selling type, followed by PC games making 57.4% and 26% of total sales respectively in 2020.

In 2021, the South Korean government lifted the shutdown law, which aimed to prevent addiction among youth by restricting playing video games for a prolonged period. To keep up with the changing lifestyle and the steady growth of the video game industry, the government decided to keep a check on the games which are detrimental to the youth as well as society, offer counselling programs to people and maintain a flexible and wholesome gaming culture in the country.

The gaming company, NCSOFT Corp., entered the entertainment industry and launched an online platform for K-pop fans. The company's mobile app, Universe, uses AI through which fans can now interact with various celebrities. Similarly, multiplayer online role-playing game (MMORPG) company Nexon Co. is now indulged in producing films and dramas. NCSOFT's PlayerUnkown's Battlegrounds (PUBG) gained immense appreciation both in the country as well as overseas. Netmarble, one of the key players in the South Korea video game market, bought shares in Hybe and launched a game on BTS. Consumers are welcoming this unification of the entertainment and gaming industry.

Digital promotion via metaverse game titles is on the rise in the country. Companies such as Pearl Abyss Corp. have planned to put corporate logos and symbols on the building, billboards and stores in their metaverse-based video game DokeV. These digital ad marketing is aiding the economic development of the business and adding a new source of revenue for them. A similar venture is planned by Com2uS. The company established Com2Verse in April as a joint venture with its subsidiaries WYSIWYG Studios and NP.

Key Trends

South Korea Being the hub of Esports

For more than two decades, Esports matches have been live-streamed and conducted in stadiums like any other physical sports. The country has the Korean Esports Association (KeSPA), a part of the Ministry of Culture, Sports, and Tourism. These Esports are very well-liked and accepted in the country, and these gamers are treated as professional athletes by the people. Due to these reasons, Korea is seen as the Esports capital of the world, thus bolstering the country's gaming industry.

Celebrity Influence to Propel the South Korea Video Game Market

Key players in the industry are now expanding their reach by developing apps with AI-generated artists to give the fans a better interactive experience. Universe by NCSOFT and BTS World by Netmarble Corp. are two of the most used apps in the country. In August 2023, BTS Jin, known for his passion and excellence in video games, collaborated with Nexon, the company that created MapleStory, an MMORPG (massively multiplayer online role-playing game). The BTS member previously boosted the sales of the game's merchandise in the country and judged the company's character design awards called Golden Hands Awards. This partnership is expected to further popularise the game in the country.

Opportunities in the South Korea Video Game Market

Movie Theatres Lending Screens to Video Game Players

COVID-19 and prolonged lockdown slowed down the revenue system of movie theatres in the country. Since then, many of the theatres lend out screens to gamers for 2-3 hours. Streaming games while playing is now a common way to reach out wider audience who are interested in video games.

An Increasing Demand for virtual reality (VR) games and indoor entertainment in South Korea

The majority of Korean VR games are made for multiplayer. This attracts many people, such as families, friends, and couples, to indulge more in the Metaverse market. Consequently, this makes the Metaverse more accessible to those who aren't avid gamers. VR games are now very trendy among the younger generation during going on a date or hanging out with friends or families.

Moreover, the stocks of gaming companies such as Netmarble, NHN entertainment, Nexon, and NCSoft among others grew steadily when COVID-19 hit all over the world. Since people are now accustomed to home-based or indoor entertainment the market will further augment during the given forecast period. COVID-19 Pandemic Boomed the Video Game Market of South Korea.

The Growth of Games as a Means of Communication and Sponsorship Provided by Technological Companies for Video Game Events

Ever since companies such as Samsung and Microsoft started sponsoring the World Cyber Olympics, the market has been experiencing positive growth. These companies aid in promotions, advertising, financing, and building partnership locally and overseas. Furthermore, due to the growing discretionary income and improved lifestyle, people are willing to spend more on recreational activities.

Gaming has become as means of socialisation in South Korea. Therefore, multiplayer games are usually much preferred among Korean population. As a result, these games are built with options such as chatting, sending requests to contacts, or sending gifts in the games. Generation Z and millennials use video games as a means of both entertainments as well as socialisation.

Expanding Internet penetration in the country

Due to excellent 5G internet services in South Korea, the high-tech metaverse games are growing in the country. The country has one of the world's most organised and fastest digital infrastructures. This is one of the key factors propelling the video game market growth. Moreover, easy access to smartphones, laptops, and gaming consoles also aids the market growth.

Challenges in the Market

Ban on P2E (Play-to-Earn) games in South Korea

P2E games are blockchain-powered and provide users with monetary rewards based on their performance. Players can trade their cryptocurrency for trading items in the game while playing. These blockchain-based video games are illegal to play in the country, which poses a slight hindrance to the growth of the country’s video game market.

Market Segmentation

The report titled “South Korea Video Game Market Report and Forecast 2025-2034 offers a detailed analysis of the market based on the following segments:

Market Breakup by Device

• Console
• Mobile
• Computer
• Others

Market Breakup by Platform Type

• Online
• Offline

Market Share by Device Type

The rising prevalence of metaverse and multiplayer online role-playing games (MMORPG) are providing significant impetus to the industry growth across the segments. With the growing technological advancements in the industry, many old PC-based games such as KartRider and Maple Story are revamped into smartphone video games. The country is considered one of the largest producers of mobile video games, with varied genres and high-tech graphics. With the increasing discretionary income, people spend more on expensive and technologically advanced smartphones, computers, and gaming consoles.

Market Share by Platform Type

The South Korea video game market is thriving due to the expansion of internet penetration and IT infrastructure in the region. The online segment secures a significant share in the market, while the offline sector is also well accepted in the country. Computer gaming rooms known as PC bangs are widespread in the country, especially among school-going students, due to ease of access and affordability. Moreover, as South Korea is considered the capital of Esports, many people pursue the career of professional gamers. The gamer community in the country is very competitive and has a considerable impact on the video gaming industry on a global level.

Competitive Landscape

Netmarble Corp.

Netmarble Corp., Established in the year 2000 is one of the largest mobile-game developer companies in South Korea. The company has been producing some of the fastest-growing video games, including BTS World, MARVEL Future Fight, Lineage 2: Revolution and many more. With Tencent Holdings, the largest internet firm in Asia, CJ E&M Corporation, the largest entertainment company in Asia, and NCsoft, a well-known MMO provider, Netmarble is the largest shareholder of SGN, a renowned casual game producer.

Gravity Co. Ltd

Gravity Co. Ltd, Gravity is known for creating competitive games with a variety of genres and distinctive features. Ragnarok Online, a well-known MMORPG game that appeals to the largest gaming demographics worldwide, was produced by GRAVITY.

The first Korean video game firm to list on the NASDAQ was GRAVITY. GRAVITY has branches in the US, Europe, and Russia, where it has developed international subsidiaries and collaborative partnerships. The company have been producing and sharing the quality of Korean online games through collaborations. In addition to being successful in the online game industry, GRAVITY has also created several mobile games, including Tower of Accession, Ragnarok Ash Vacuum, and others.