[mobidays] KM-REPORT JAN, 2015

Who would stand at top in mobile in 2015?

1
1. Unbelievably large-scale investments
2. Going beyond Korea into the world
3. Adieu 2014, Welcome 2015 - Domestic
4. Domestic broadcasters leaving YouTube
5. Daumkakao VS Naver
6. Chinese IT companies, rushing into Korea market

Data Source 2
Social commerce company Coupang attracted an investment of KRW 332.2billion from Blackrock
Dec.11, 2014 etnews : Coupang, attracted an investment of 332.2billion won from the world's best asset management firm Blackrock
Dec.16, 2014 etnews : MSIP-Smilegate Entertainment-Sunday Toz, launched a KRW 30billion AniPang Fund
Ministry of Science, ICT and Future Planning ("MSIP") & Smilegate Group & Sunday Toz launched ‘AniPang Fund’
- The investment led by a US-based asset management firm Blackrock has brought in the participation of global investment institutions
such as Wellington Management Company, LLP, Greenoaks Capital Management, and Rose Park Advisors
- There is an opinion that global investors spoke highly of Coupang's growth by means of Korea-based unlisted IT companies
and the biggest investments ever made in the history of e-commerce.
- Coupang plans to strengthen its platform and organization more than ever to sustain 'Mobile First'.
- AniPang future contents investment association (also called AniPang Fund) is a KRW 30billion venture investment fund.
- Based on the fund of funds funded by MSIP, Smilegate Entertainment and Sunday Toz
are scheduled to invest KRW 9 billion, respectively, and Smilegate Investment will take charge of its operation.
Download count : 19 million
Secures 7million users
MAU in December : 8,974,964
(MAU : Monthly net visitors)
Data : App Ranker
Over 70% of average turnover generated by mobile
Over 80% of total traffic generated by mobile
Jung Woong Lee
the CEO of SundayToz
Kimoon Nam
the CEO of Smilegate Investment
I would like to help talented startups with the experience
I learned from the success of AniPang and the KOSDAQ listing.
We plan to invest in diverse fields, such as digital contents businesses,
software solutions, mobile platforms and wearable technologies.
Unbelievably large-scale investments

Data Source 3
Ridi Corporation operating Ridibooks, attracted a KRW 8 billion investment
Drama & Company operating Remember, attracted a KRW 2billion investment
- Ridi Corporation operating an e-book store Ridibooks succeeded in attracting a KRW 8 billion
investment from Neoplux, Atinum Investment, Company K and Mirae Asset Venture Investment.
Gi-sik Bae
CEO of Ridi
Dec.3, 2014 etnews : Ridi Corporation operating an e-book store, attracted a KRW 8 billion investment
Dec.17, 2014 platum : Business card management app 'Remember', attracted an additional KRW 2billion investment
Jae-ho Choi,
CEO of Drama & Company
Our commitment in 2015 is to evolve into the 'Korean-style
business vertical platform' beyond business card management services.
- Drama & Company providing the business card management app 'Remember' service succeeded in attracting
an additional KRW 2billion investment from Daegyo Investment, Cyber Agent Ventures and Capstone Partners.
User growth showing monthly average of 35% or above
Exceeds 6 million cumulative business cards MAU in December : 238,652
Secures 1.8million users
Cumulative downloaded book : 3.2million
Possesses 300,000 e-books
MAU in December : 240,823
Prices for books become similar following the application of fixed book price systems and
customers of other bookstores are turning their steps toward us. We are determined to
take an active role in revitalizing the content production ecosystem based on this investment.
Unbelievably large-scale investments

4
Korean mobile game market, about twice higher in competition than US and Japan
- Korean market released average monthly 200 games from November 2013 and October 2014.
- Of the mobile games released in Korea market, the following number of games ranked up
to top 5 positions in monthly download count
: Average 40 based on Apple Store, 45 based on Google Play
(Average 24 for US and 20 for Japan - Consolidating Apple Store and Google Play)
Common factors of Korean mobile games successful in the foreign market
Casual-feeling mobile game
Mobile games developed in Korea such as Pokopang, SummonersWar and Cookie Run
were ranked in the top 3 in the cumulative sales among Apple Store and Google Play Store worldwide.
Released games on social network platforms dominating the high local market share
Netmarble built sound relationships with each company (China-based Tencent, Janpan-based Line)
with high market shares in social network sector and conducted viral marketing through social network.
Easy and fun genre of game for everyone
Easy and fund genre of game for men and women of all ages, such as board and puzzle,
is easy to handle and has a wide range of users, making it advantageous to secure users.
①
②
③
Data : Report on '2014 App Annie Korean's favorite game : Victory of the game that appeals to the public’
(Research period: November 2013 ~ October 2014)
Dec.10, 2014 etnews : Korean mobile game competition twice higher than US and Japan... "Fiercest global competition ever"
Dec.16, 2014 zdnet : What is the success key to the popularity of mobile games overseas?
Mobile game industry going with an issue 'Global'!Going beyond Korea into the world
Data Source

5
Korean-made mobile games continuously popular in foreign market
Korean-made mobile games stepping into the foreign market
SummonerswarMU Miracle Everyone's Marble Cookie Run
Dec.17, 2014 zdnet : Eye-catching mobile games winning p opularity overseas
- NeoArena, made a Venator export agreement with a Taiwan-based Big Bang Interactive
NeoArena plans to launch Venator in five sequential countries in the 1st quarter of 2015,
such as Taiwan, Hong Kong, Macau, Singapore and Malaysia.
- 'FC Manager Mobile' by HanbitSoft, ranked at 6th top sales position in Thailand
Mobile soccer management game FC Manager Mobile 2014 took the 2nd position
in Google popularity ranking in Thailand and won the 6th position in top sales ranking.
- 'Biking Island' by Wemade, launched global services
Wemade Entertainment's mobile game 'Biking Island' opened at Google Play stores
simultaneously in 134 countries worldwide under the game name 'Pocket Tales'.
PocoPang
Mobile game industry going with an issue 'Global'!Going beyond Korea into the world
Data Source

Adieu 2014, Welcome 2015
6
As of end-September 2014
PC ownership rate
Smartphone ownership rate
The cumulative count of smartphone
subscribers exceeded 40million
Daily time spent using
smartphone is 219 minutes
(2.4 times more than March 2012)
Smartphone ownership rate (84.1%) of entire households exceeded
PC ownership rate (78.2%).
2012 2013 2014
Dec.3, 2014 zdnet : Cultural landscape changed only five years after the introduction of smartphones
65
82.3
80.6
79.7 78.2
84.1
Z
Data Source

7
Adieu 2014, Welcome 2015
Usage time by age group and smartphone content
Mobile ads are gaining more importance in online ads.
Data : eMarketer
2013 2014 2015 2016
Korea
WorldAverage
Data: KT Economics & Management Research Center, Nielsen KoreanClick, June 2014
※ Unit : (Min/Day)
Game
below 10’s
20’s
30’s
40’s
50’s
60+
Game
Communication
32.3
42.8
61
51.9
34.5
24.1 21.9 16.3 8.2 9 5 33.1
30.2 22.2 9.2 11 6 4 2 32.0
26.4 33.8 11.4 14.7 7 7 3 34.1
30.6 40.7 14.4 16.2 10.3 9 4 33.4
59.3 49.5 31.7 23.5 15.2 16.1 15.1 30.9
42.3 34.1 41.8 25.8 8 20.3 11.2 23.3 239
281
220
189
151
122
Communication Web/Portal
Web/Portal
Cafe/SNS
Cafe/SNS
Image
Image
Reward/Coupon
Photo/Book/Comic Book
Music Others
Others
Dec.19, 2014 Media Pen showing 'rapid growth' in domestic mobile ads and payment market... May outpace PC ads in the upcoming year
Dec.11, 2014 zdnet : Korea is top among the OECD members in internet access … Mobile↑
Ratio between online ads and mobile ads (Unit: %)
(E)
54.4
35.1
73.2
57
38.4
20.1
15.8
25.9
(E)
Data Source

- SMR (Smart Media Rep) is an online advertising business agency joint by SBS and MBC,
having General Programming Channels, CJ E&M as members.
- As SMR and YouTube have conflicting interests with each other over the PIP-based operating right and
advertisement revenue sharing, SMR stopped supplying YouTube content and transferred
the service platform to the large-scale portal.
Data Source 8
Domestic broadcasters leaving YouTube
Seven SMR (Smart Media Rep) members, stopped supplying YouTube image contents
Change in sharing advertisement revenue
What is a PIP?
PIP, a term used to mean a platform-in-platform method, allows a broadcaster to directly manage and
control online advertisements, which therefore brings more advertisement revenue than before.
Dec.14, 2014 etnews : SMR, YouTube ‘PIP Deal’ broke off… P detour irregular way of watching emerged
45 55 10 90
BroadcasterBroadcaster
: :
- Naver and Daumkakao made an agreement in favor of SMR in advertisement sales right and advertisement
commission in order to catch up with YouTube taking up 80 percent of domestic video streaming service
market by acquiring terrestrial contents from SMR.
- SMR broadcasting contents are provided to foreign YouTube like before, and a Korea-based IP address
is used to block only users who access SMR contents. This therefore brings an error --
watching SMR video becomes possible by going around the IP address.

Data Source 9
Daumkakao VS Naver Daumkakao, reinforcing mobile market competitiveness
Daumkakao, invested KRW 100billion and established K Venture Group
-DaumkakaoannouncedthatitwouldestablishKVentureGroup(tentativelycalled)specializingininvestmentinan
efforttosecureglobalcompetitivenessbycopingwithmobilemarketenvironmentaswellasmakecontributions
toventureecosystem.
-KVentureGroupisscheduledtobeinvolvedactivelyininvestmentandtakeovertofindoutthefuturegrowth
engineforDaumkakaoandstrengthenitscompetitiveedgeinmobileplatformmarket.
-ParkJi-hwan,theCEO-designateofKVentureGroupCEO,saidthatthefirmwouldinvestinthelongtermon
venturesthathavepotentialtogrownotonlyinthedomesticmarketbutalsointheirbusinessesabroad,
insteadofshort-termfinancialinvestments.
Kakao Talk
Bank Wallet Kakao Album Kakao Agit Kakao Place Kakao Topic Kakao Pick Kakao Home
Kakao Story Kakao Music Kakao Page Kakao Style Kakao Group
Dec.22, 2104 Financial News : Daumkakao, invested KRW 100billion and established K Venture Group ... Fostering ventures

Data Source 10
Daum Cloud Mobile App 2.0 launched
Kakao Taxi to be launched in the 1st quarter of 2015
- Daumkakao launched the mobile app Daum Cloud 2.0 with improved user experience (UX) and
service performance.
- Performance improvements were made with a focus on user convenience and a 'send link' function
capable of sharing a folder and a file through a link was added.
- Daumkakao signed an agreement on December 17 with the SeoulTaxiAssociation and Korea Smart Card
for a 'Kakao Taxi' service.
Policy setup related to mobile
app development and operation,
promotion and marketing
Securing member drivers,
promoting service use,
setting up service policies
Datalinkingtechnologysupport
Infra-basedserviceextension
Dec.2, 2014 etnews : Daumkakao, launched a Daum Cloud mobile app 2.0
Dec.17, 2014 etnews : Daumkakao, created a partnership with the Seoul Taxi Association for a Kakao Taxi service
Daumkakao VS Naver Daumkakao, reinforcing mobile market competitiveness
- This is an O2O service rolled out first since the merger of Daum and Kakao and is in development
aiming to be released in the first quarter of 2015.

Naver, signaling the mobile payment service
Data Source 11
Daumkakao VS Naver
Mobile messenger Line, launched
First half of 2015
Korean-made mobile payment service 'Naver Pay' expected to be launched
- The use of LINE Pay enables using mobile payment functions
in all parts of the world except Korea and China.
(Remittance function available only in Japan.)
- LINE Pay is currently available for use only in the 'Line Store',
planning to be more widely used through the partnership with
various online/offline stores.
- Naver judged that the ripple effect of LINE Pay would not be significant due to the small number of domestic
LINEusers and announced that it was preparing the domestic mobile payment service 'Naver Pay' separately.
- NaverPayisindevelopmenttowardsboostingmuchbetterconvenienceandstabilitybasedon'NaverCheckout',
currentlyusedasapaymentterminonlineshoppingmalls,andisscheduledtobelaunchedinthefirsthalfof2015.
- Naver Checkout secures about 43,000 franchisees and Naver Pay plans to increase the utilization
of Naver Pay in association with the Naver O2O platform 'Shop Window'.
♪
LINE Store
DIGITAL CONTENT
EC SITE
SHOP
Dec.18, 2014 CCTV News Line : Mobile payment service using 'LINE Pay’ launched… except Korea and China
Dec.22, 2014 news1 : Naver, to launch the mobile payment 'Naver Pay' in the first half of next year
a mobile payment/remittance service 'LINE Pay'

Line, endless mobile market!
Data Source 12
Daumkakao VS Naver
Line, acquired MixRadio from Microsoft
- Line acquired the radio-type music service MixRadio from Microsoft (MS).
- MixRadio is currently used in 30 countries worldwide and plans to provide services from Lumia
smartphone together with MS also following the acquisition.
- MixRadio services and Line Music will provide services separately.
Line Line Camera Line Brush Line Dictionary Line Vaccine
Line List Line Deco Line Snap Movie Line Toss Line Live player
Joong-ho Shin
CEO of Line Plus
My firm belief is that MixRadio can provide more valuable
services for customers based on Line's global development.
Dec.19, 2014 Newsis Line : Acquisition of MixRadio from MS

Attracts the public's attention with cute characters
Data Source 13
Daumkakao VS Naver
Daumkakao, opened its regular brand store at Coex mall
Line,openedapop-upstorecalled'LineFriendsinNewYork’inNewYorkTimeSquare
Dec.12, 2014 zdnet : Katalk vs Line, into the character competition 'full of interest'
- Daumkakao opened its regular brand stores at Shihchon in
Seoul, Daegu and further at Coex mall.
- Popularity is so high that the Kakaofriends pop-up store at
Shinchon Hyundai Department has sold about 20,000 products
just three days after the opening.
-Pop-upstoresinBusanandDaeguhadasalesrecordof
approximatelyKRW 700million in three weeks.
- 'Line Friends in NewYork’is the 13th pop-up store followed
by the ones in 10Asian countries and Columbia.
- December 12, the first official Line Friends store opened
in Tokyo's Harajuku District.
- In Korea, stores are operated mainly in Myeong-dong
or Everland, attracting many visitors.

Data Source 14
Chinese ICT companies, rushing into Korea market
China-basedTencent, getting ready to step into the Korean financial marketthrough Hana Financial Group
- China-based online/mobile enterprise Tencent was confirmed to have been working with
Hana Financial Group for financial business cooperation.
- First of all, the business partnership between Hana Bank and Tencent will be pursued and
soon plans to conclude the scope of business partnership and time for entry newly-launched
Hana Card in the form of the third-party cooperation business.
- There is a prospect for a joint pursuit of not only domestic but also foreign payment market
through building the trilateral cooperation system (Hana Bank - Hana Card - Tencent).
Korea Smart Card, built a partnership with China-based Alipay
- AT-money publishing company Korea Smart Card has a scheme to launch a transportation card M-pass,
designed for exclusive use by Chinese tourists in partnership with a China-based e-commerce company Alipay.
- It is expected to bring more convenient domestic transportation and distribution systems to about
8 million annual Chinese tourists to Korea.
- A person with Korea Smart Card announced that the firm would plan to provide differentiated customer service
that gets out of the existing card formation in connection with Mobile T-money and Alipay.
Chinese
tourist
IncheonAirport
JejuAirport
Chinese
tourist
M-pass purchase
fromAlipay website
Maximum 7 days for use
Maximum chargeable
amount of KRW 0.5million
Issuedinstantly
inanissuingcenter
atIncheonAirport/JejuAirport
Balance returned
to theAlipay account
Dec.2, 2014, etnews : Tencent, in pursuit of stepping into the Korean financial market in partnership with Hana Financial Group
Dec.3, 2014 etnews : Korea Smart Card, launched a transportation card dedicated to Chinese tourists in partnership with Alipay

Data Source
15
1. Unbelievable large-scale investments
Dec.3, 2014 etnews : Ridi Corporation operating an e-book store, attracted a KRW 8 billion investment
http://www.etnews.com/20141203000334
Dec.11,2014etnews:Coupang,attractedaninvestmentof332.2billionwonfromtheworld'sbestassetmanagementfirmBlackrock
Dec.16, 2014 etnews : MSIP-Smilegate Entertainment-Sunday Toz, launched a KRW 30billion AniPang Fund
Dec.17, 2014 platum : Business card management app 'Remember', attracted an additional KRW 2billion investment
http://platum.kr/archives/32000
2. Going beyond Korea into the world
Dec.10, 2014 etnews : Korean mobile game competition twice higher than US and Japan... "Fiercest global competition ever"
Dec.16, 2014 zdnet : What is the success key to the popularity of mobile games overseas?
http://www.zdnet.co.kr/news/news_view.asp?artice_id=20141216102302
Dec.17, 2014 zdnet : Eye-catching mobile games winning popularity overseas

16
3. Adieu 2014, Welcome 2015 - Korea
Dec.3, 2014 zdnet : Cultural landscape changed only five years after the introduction of smartphones
Dec.19,2014MediaPenshowing'rapidgrowth'indomesticmobileadsandpaymentmarket...MayoutpacePCadsintheupcomingyear
http://www.mediapen.com/news/articleView.html?idxno=57374
Dec.11, 2014 zdnet : Korea is top among the OECD members in internet access … Mobile↑
4. Domestic broadcasters leaving YouTube
Dec.14, 2014 etnews : SMR, YouTube ‘PIP Deal’ broke off… P detour irregular way of watching emerged
http://www.hankyung.com/news/app/newsview.php?aid=2014121682281
Data Source

17
5. Daumkakao VS Naver
Dec.2, 2014 etnews : Daumkakao, launched a Daum Cloud mobile app 2.0
Dec.12, 2014 zdnet : Katalk vs Line, into the character competition 'full of interest'
http://www.zdnet.co.kr/news/news_view.asp?artice_id=20141212105659&type=xml
Dec.17, 2014 etnews : Daumkakao, created a partnership with the Seoul Taxi Association for a Kakao Taxi service
Dec.18, 2014 CCTV News Line : Mobile payment service using 'LINE Pay’ launched… except Korea and China
http://www.cctvnews.co.kr/atl/view.asp?a_id=16337
Dec.19, 2014 Newsis Line : Acquisition of MixRadio from MS
http://www.newsis.com/ar_detail/view.html?ar_id=NISX20141219_0013367574&cID=10402&pID=10400
http://www.fnnews.com/news/201412221756020058
Dec.22, 2014 news1 : Naver, to launch the mobile payment 'Naver Pay' in the first half of next year
http://news1.kr/articles/?2012738
6. Chinese IT companies, rushing into Korea market
Dec.2, 2014, etnews : Tencent, in pursuit of stepping into the Korean financial market in partnership with Hana Financial Group
Dec.3, 2014 etnews : Korea Smart Card, launched a transportation card dedicated to Chinese tourists in partnership withAlipay
Data Source

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[mobidays] KM-REPORT JAN, 2015

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