Russian video game distributors are establishing cooperation with South Korea

Despite sanctions and other restrictions, in some industries, businesses from the Russian Federation manage to maintain and even develop a strategic presence in formally “unfriendly” markets. In particular, Kommersant found out that domestic video game distributors are discussing cooperation with the South Korean state creative content agency KOCCA. Korean games are already represented in the Russian Federation, as well as domestic ones in Korea. In the future, the parties hope to launch joint educational programs, as well as establish communication with officials to exchange experience in regulating the industry.

According to Kommersant’s interlocutors in the video game development and distribution market, on September 13, a meeting was held at the Korean cultural center in Moscow on the prospects for promoting Russian products in South Korea. Representatives of Lesta Games, the Association of Professionals in the Operating and Game Development Industry (APRIORI, includes VK, Innova, Astrum and others), the Video Game Industry Development Organization (RVI, founded by the founder of Kanobu Gadzhi Makhtiev, co-founder of PvP.Tools Vasily Ovchinnikov and others) took part. ANO Digital Economy and the state South Korean creative content agency (Korea Creative Content Agency, KOCCA).

Kommersant’s sources say that they discussed, in particular, the visit of an official delegation of Russian representatives to the G-Star gaming industry exhibition, which will be held in November in Busan. The Russian side also expects to take part in conferences and closed meetings with relevant Korean officials, in which KOCCA should help. According to one of the meeting participants, the situation is complicated by Russia’s markedly warmer relations with North Korea (see Kommersant on September 13 and 14). Thus, Kommersant’s interlocutor clarified, KOCCA representative in Russia Kim Si Woo said that “in connection with the recent visit to Russia of the head of the DPRK, difficulties may arise in organizing official assistance to the Russian side.”

Kim Si-woo himself, in a conversation with Kommersant, however, did not confirm the presence of such doubts. He says that KOCCA is considering proposals for cooperation from Russian game studios: the launch of an internship program, the participants of which will be able to study at Korean companies and universities for 60 days without obtaining a visa, and assistance in organizing the supply of games. “As far as I know, Lesta Games and Innova have already entered into agreements on publishing many Korean video games in the Russian Federation, new agreements can be signed with G-Star,” Mr. Kim explained to Kommersant. Lesta Games clarified to Kommersant that they are negotiating “with various studios, including Korean ones.”

Russian companies are interested not only in importing Korean, but also in exporting domestic video games. Mr. Kim noted that one of the Russian studios has agreed to localize its game in South Korea. According to Kommersant, we are talking about the online shooter “Caliber” from 1C. The company is negotiating with a “major Korean publisher” about localizing the game, one of the market sources confirms. Director of 1C Game Studious Albert Zhiltsov told Kommersant that “it is premature to comment on the situation.”

At the end of 2022, the video game market in South Korea amounted to $16.4 billion (an increase of 0.9%), wrote HC Games with reference to KOCCA data. Research and Markets predicted that by 2026 the South Korean video game market will reach $20.98 billion. At the end of last year, NewZoo estimated the global volume of the video game market at $182 billion. The Russian market at My.Games was estimated at 165 billion rubles at the end of 2021. ($1.7 billion at the Central Bank exchange rate as of September 19, 2023).

Kommersant’s sources in the Russian market note that cooperation with Korean companies “has always been interesting to domestic distributors.” “The Lineage 2, Archeage, Aion, Black Desert Online projects have been in the Russian Federation for many years,” explains one of Kommersant’s interlocutors, emphasizing that after the outbreak of hostilities in Ukraine, “none of the Koreans left the market, which means that with them we can start new projects.”

“Interaction with South Korean partners is not limited to working with KOSSA, and we will look for new effective ways of cooperation,” confirms APRIORI CEO Alexander Mikheev. “The country’s gaming market is now considered one of the largest, we are interested in partnership and content exchange.” The head of RVI Vasily Ovchinnikov added that Russian developers and distributors are interested in studying the experience of relevant Korean officials and associations: “South Korea has an excellent system for regulating and supporting the gaming market. We could learn a lot from them.”

Nikita Korolev