e-Sports Biz in Korea

May. 2008 / Korea e-Sports Association

MAY. 2008
Unbelievable Truths

18,000,000
Number of Koreans who love e-Sports

120,000
Number of e-Sports fans on hot summer Kwang-An-
Li beach

432
Number of Pro-gamers leading Korea e-Sports

520,906
Number of pro-gamer SLayerS_'BoxeR‘ fan club
members

5,000,000,000
Number of people around the world who can
enjoy Korea e-Sports’ future
Korea e-Sports & Role of KeSPA
■ Korea e-Sports started 10 years ago
■ KeSPA established in 2000 with the approval of the Ministry of Culture, Sports and Tourism Korea
■ KeSPA contributed to the settlement of Korean e-Sports as a sound leisure culture for youth life
and coordinating among various e-Sports actors
■ KeSPA carried out as a representative e-Sports organization in Korea

e-Sports Actors Role of KeSPA

• Supporting pro & amateur gamers and pro-game
e-Sports Related
User Institute teams

• Set the e-Sports infra like rule, stadium, etc.

Game
Gamer • Hosting the world largest e-Sports ‘Pro-League’
Team

Academy KeSPA Media • Hosting, approving, supporting Amateur tournaments

League
Gov’t • Coordinating among various e-Sports actors
Sponsor

• Supporting e-Sports research studies & publishing

Game
Developer e-Sports
User • Performing International Roles as a Korean Rep.
KeSPA Structure

KeSPA
President

Boarders Office
League
Planning Dept. Management
Dept.
• Official registering and recognize about pro-gamer,
• 12 Executives (11 Corporate, 1 Government agency)
• Role to discuss and decide about pro-game Team, games, league etc.
business program operation, rule revision, • Official e-Sports league organizing and operation
approval of new executive application, etc. • Official referee dispatch and record DB managing

• International e-Sports interchange revitalizing

• Support general services to promote e-Sports infra.

• Commercialization about official devices and goods

• Research & publishing about e-Sports

KeSPA History

First KeSPA inauguration Second KeSPA inauguration

21C Progamer Association established
SK Telecom took the new Chief of KeSPA

Hanbit Soft Co.,Ltd. took the Chief of
United ‘Pro-league’ started
KeSPA

Official referee dispatched

Ministry of Culture, Sports & Truism
Korea
1st KeSPA CUP ‘KTF-Bigi Korea e-Sports
2006’
approved ‘progamer registration
system’
Contract ‘e-Sports revitalization M.O.U’
with

Select 9 official games Korea Game Industry Agency
1999 ~2000 2002 ~ 2004 200
Opened “Yong-San
2006 ~ nowe-Sports Stadium”
5

e-Sports restoration period Establish foundation & globalization

21C Progamer Association
Hosted Korea e-Sports Award

changed
Hosted International e-Sports Symposium
as “Korea e-Sports association”
Contract ‘e-Sports development M.O.U” with China

Hosted “KPGA TOUR”
Hosted ‘Ministry of Culture, Sports & Truism Korea,

Hosted “Cybergames 2002” 1st Korea Amateur e-Sports Games.’
Korea e-
e-Sports Status
Game & e-Sports Population
■ After 2001, e-Sports stepped into the growth period and the numbers of gamers dramatically increased
■ ‘Games’ & ‘e-Sports’ settled down as a representative youth culture code, which enjoyed by half of Korean
■ Everyday, Korean game users spend more than 1 hour on KeSPA official games at PC Room.
■ Among the games playing at PC Room, KeSPA official games occupy more than 50%.

Game Population Status

Year Total number of internet user Number of internet users for game Portion
2006 34,120,000 15,940,000 55%
2001 24,380,000 5,800,000 23.80%
[Source: ‘Survey on Information-oriented Status by Ministry of Information and Communications]

The Most Watched Sports Programs

1st. Soccer
2nd. e-Sports (33.1%) 3rd. Baseball (31.8 %) 4th. Mixed Martial Arts (20 %)
(57.3 %)
[Source: Consumer Survey Report by Dongseo Research, 2008.Apr]
Korea e-
e-Sports Status

Professional Gamers
■ After ‘the pro-gamer registration rule’ in 2000, the number of pro-gamers have been increased by 16.3%
annually
■ Now 432 pro-gamers registered in 23 official games
■ ‘Pro-gamer’ became the most favored job among the youth and the number got more than double
■ Around 15 top pro-gamers receive more than USD 0.1 mil as their annual salary (Except for prize
money)
Average annual salary of pro-gamers is estimated around USD 20,000
The number of Korean Professional Gamers(’07. Dec) The number of pro-gamer fan club members(’08)

500
450
432
400
350 355
300 311
280
250
240 237 Park, Jeong-Seok
219 Lim, Yo-Hwan / 520, 906
200 194 150,008
172
150
131
100
50
0
'01 '02 '03 '04 '05 1st '05 2nd '06 1st '06 2st '071st '07 2nd
half half half half half

Lee, Yoon-Yeol / 153,233 Hong, Jin-Ho / 146,438

Korea e-Sports Status

Professional Game Teams

■ 12 Pro-game Teams are participating in the e-Sports League “SHINHAN Bank pro-league 2008” now
(11 Company and 1 Military team)
■ Due to the increased recognition of pro-gamer, direct participation of each company in e-Sports field
increased through game team establishment
■ Due to the growth of companies’ participation, the operation of league became larger and
professional
e-Sports league system settled
Professional Game Team name and company category(’08)
Korea e-Sports Status
e-Sports League & Tournaments
■ Based on popularity of StarCraft, other games are tried to make e-Sports league/tournaments
continuously
■ Many different official games make e-Sports league to promote, increase users and try to make it
global level
■ Professional and amateur league/tournaments increase every year
Official e-Sports Titles (’08. May)
Rhythm
RTS Sports Arcade FPS Casual Racing MMORPG Total
Action
2 7 2 7 1 2 1 1 23

e-Sports League & Tournaments (’07)

Internationa
Titles CATV Short term Local Official Unofficial Total Prize Money
l
20 37 47 51 19 68 86 154 USD 2,779,229
Korea e-Sports Status
World’s First e-Sports Stadium

■ In 2005, the world’s first e-Sports dedicated stadium was opened

■ The stadium have been contributed to sound e-Sports leisure cultures

Name I’PARK mall e-Sports Stadium

Size ㎡, Main Stadium –around 500 seats, Small stadium -64 players seats
102.2㎡

Utilize Use for e-Sports regular tournaments and preliminary (small stadium) etc

Main Stadium Small Stadium

Korea e-Sports Status

e-Sports media coverage

■ Two e-Sports CATV (Ongamenet, MBCgame) broadcast e-Sports content 24 hours everyday
and many other CATV channels try to broadcast e-Sports content
■ Papers and reports for e-Sports increased annually, now 40 major ‘e-Sports press association’ cover everyday
■ New media competitively joined to cover e-Sports
- GOM TV(’06), DMB(’06), Hana TV(’07), online portal (DAUM ’07. NAVER ’07), Pandora TV(’07), Afreeca(’08) etc.
- Especially, 99.4 mil people watched Pro-League in last year(2007) with New Media.

Internet TV, IPTV, DMB

Expansion to New Media channel broadcast e-Sports
2006~ 2007
‘e-Sports press association’
Paper and online reports cover everyday about e-Sports
for e-Sports increased 2005 ~ 2007

Many CATV Channels Mnet, Xports, Champ, KMTV

tried to broadcast e-Sports
2006~ 2007
Ongamenet 2000
e-Sports CATV open MBCgame 2001 opened
2000 ~ 2001
Korea e-Sports Status

Industrial impact
■ Expected market size of 2007 is US$ 81 million. 96% of increase than 2005
■ High increase of 28.6% expected annually, till 2010

2010
[Unit : US $]
2005

e-Sports CATV 20 mil

2004
Tournament U 11.1mil

Game team sponsorship 8.6 mil
126.2 mil estimate

e-Sports CATV 16.5 mil 45.times larger than

Government support 1 mil

Tournament U 3.8 mil 2005

others 0.31mil

Game team sponsorship 7.0 mil

Government support 0.15 mil total 41.01 mil

others 0.30mil

total 27.765 mil [Source: Samsung Economic Research Institute

e-Sports Industry Status and Development Plans]
Korea e-Sports PR & Marketing – CASE STUDY

SHINHAN BANK Pro League 2007

■ CATV AD Value : USD 203 mil (Total view rating 1R 0.736, 2R 1.096)
■ New Media AD Value: USD 4.3 mil (Total view numbers 99,446,846)
■ Media Coverage : USD 9.4 mil
Total PR Value of Pro League in last year reached USD 216.7 mil

Comparative Index

Item Average View Rating (CATV) Major Event View Rating (CATV) Source
Pro Baseball 0.7~0.8% Korean Series 1~2% KBO
Pro Basketball 0.4% - KBL
National Soccer Team A matches
Pro Soccer 0.2~0.3% KFA
2~3%
SHINHAN Pro League Grand Final
2007
e-Sports Pro League 0.736(1R) / 1.096(2R) KeSPA
(Ongamenet – 1.808)
(share of audience 10.93%)
Korea e-Sports PR & Marketing – CASE STUDY

On/Offline Promotion
■ Sponsor PR booth – free supporting tool distribution, sponsor’s products PR
■ Diverse online promotion events with internet portal ‘NAVER’ & e-Sports webzines – All-Star polls etc
■ Special fan events – Children’s Day, Coming-of-Age Day, Pro-gamer signing event
■ Spo-tainment for fans – pro-game team’s mascot, victory ceremony, regular fan meeting
Sponsor PR Booth – SHINHAN BANK

SKT T1 - Mascot Coming-Of-Age Day Victory Ceremony

Korea e-Sports PR & Marketing – CASE STUDY
e-Sports Merchandising Biz

■ Diverse merchandising products are being released – card, diary, e-Sports PC, computer accessories etc.
■ Major sports wear companies support pro-game teams uniform (ADIDAS, Lecaf, FILA, Teddy bear, HEAD, K
■ Joint business – pro-gamer official dental clinic agreement with White Style Dental Clinic, official drink etc
Star Mania Check & Debit Card Pro-Game Team Diary

Pro-gamer Teddy Bear Pro-gamer Dental Clinic