South Korean SK Telecom has announced that it will „aggressively“ advance into the Chinese online gaming market, after buying a stake in Shanghai-based service provider Magicgrids Networks.
South Korea’s leading mobile carrier said in a statement it has purchased a 30 percent stake in Magicgrids Networks for USD 7.8 million.
SK Telecom said that online gaming is crucial in the new convergence industry along with music, citing that the revenue growth of the Chinese online gaming market has reached 82% and that total market volume has reached USD 1.17 billion as of 2007.
In China, online games claim the largest share of the Internet business and provides stable source of revenue for enterprises. SK Telecom expects that its advancement into the online game market will further strengthen its direction to expand its role in China’s Internet market.
SK Telecom aims to deliver sustainable growth to Magicgrid Networks by combining its expertise in game development, publishing, and global service with Magicgrids Network’s strong understanding and experience of the Chinese market and game development capacity. At the same time, SK Telecom expects to create synergy with the Korean game industry through outsourcing game content in China and establishing global distribution channel for Korean games.
Suk Hwan Lee, President of SK Telecom China Holding Company said, „This year marks the first year that SK Telecom entered the Chinese convergence market. Following telematics, music, and entertainment industries, now we are heading toward the Chinese game market. By participating in the management of Magicgrids Network, we aim to enhance our core competitiveness in the Chinese online gaming market and become a hub for the Asian game industry.“