[Mobidays] KM-Report MAR, 2015

1. KM REPORT 2015/03
The Love Triangle of the Games Market,
and their Inside Story

2. Mobidays [ KM report ]
Mobidays is a specialized mobile marketing company,
making every effort to have proper understanding of mobile market and to activate mobile eco-system.
In order to do so, Mobidays established [Mobile Advertisement Research Institute: MARI] in August 2014
(blog.naver.com/mobidays01)
[Mobile Advertisement Research Institute: MARI] collects and studies domestic and overseas mobile related information
and issues‘VEUM’(Very easy understanding of mobile) a main column, and‘KM report’a monthly trend report.
KM report is a report based on insight and information articles such as domestic / overseas mobile related investment news
and market issues which provides mobile eco-system trend and issues.
We will keep working our best to release various and interesting news about mobile market in succession.
Thank you.
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2014/08 2014/09 2014/10 2014/11 2014/12 2015/01
2015/02
초연결 시대
단 하나의 플랫폼!
2015/02

3. 1
2
1. Spotlight on Fintech!: Domestic Market’s interest on Fintech
- Restructuring of the regulations ignites Fintech
-‘Cooperation’, a key word in Fintech
- Telecommunications companies prepare for entry into the Fintech Market
- Foreign Companies Expanding their Business in Korea
- Biometrics, Fintech’s partner
2. A well-made Content Overpowers Ten Companies
3.‘A Work of God’in the Games Market
4. Mobile Market Key Point
- Massive Traffic Move to Mobiles
- Smartphone, a Must-Have-Item
- Mobile Shopping Era!
Domestic Issues

4. Spotlight on Fintech!: Domestic Market’s interest on Fintech
1 Restructuring of the regulations ignites Fintech
The Financial Services Commission push for‘IT • Finances Fusion Support Plan’
- In order to stimulate various financial transaction methods and products that utilize IT, the obligation for
using existing certificates and CC certified products was terminated.
- In order to guarantee no harms are inflicted to financial consumers, non-financial companies such as
IT firms will be allowed to legally become in charge. Moreover, the current minimum amount for application
of liability insurance, 1~ 2 hundred million won, needed for consumer compensation will be highly raised.
- The current offline oriented system will be reestablished to aid on • offline fusion and mobile services
- The current electronic financial business with 7 business sectors was reduced to 3~4 categories
- The limit on minimum capital for electronic financial businesses will be lowered more than 50% from
the current 5 hundred million ~ 2 billion won.
- Registration conditions for prepayment • PG (Payment Gateway) will be eased and small scale electronic
financial business units will be newly established.
- Limits on the issuing of denomination bounds for registered electronic payment means, currently at
2 million won, will be terminated and will be converted to a regulation system of 2 million won per day
and 5 million won per month.
- The daily credit line for electronic debit payment means such as Yelopay and PayPal are increased to
2 million won and thus payments through mobiles are expected to increase as well.
- Solo issuing of mobile cards are now allowed and credit cards in the form of app cards can be issued.
- Loan of funds of 200 billion won or direct investment through Industrial Banks • Corporation Banks, Installs
of Fintech support centers, and improvements of the integrity standards system for combined management
licensees will be made as well
Obligation for using certificates and CC certified products terminated!
Reorganization of the Electronic Financial Business Market for Fintech Start-up
Increase of Charge Limits and Usage Limits of Electronic Payment Means
Source 2015.01.27 etnews Fintech Promotion…. Vast changes to electronic finances 3

5. Spotlight on Fintech!: Domestic Market’s interest on Fintech
1 ‘Cooperation’, a key word in Fintech
LINE strengthens mobile payment technology by taking over‘WebPay’,
X
- LINE Corporation, a Japanese subsidiary company of Naver, took over‘WebPay Holdings’in order to
strengthen their‘LINE Pay’
- WebPay Holdings is a company established in October 2013 and runs a credit card service, WebPay,
that is available on PC and mobiles
- LINE plans to increase and strengthen LINE Pay’s functions through WePay’s payment system technologies
and know-how’s. Moreover, LINE plans to solidify life platform infrastructure by increasing the size of their
business.
Samsung Electronics takes over‘Loop Pay’to go against Apple Pay!
- Samsung Electronics took over‘Loop Pay’, known to be a startup of
American mobile payment solution.
- Loop Pay is a company with the patent technology of MST,
Magnetic Secure Transmission, and according to Nielsen, a market
research institution, there are over ten million stores in North America
in which mobile payments through Loop Pay is possible.
- Loop Pay’s MST technology confirms payments by placing instruments
with credit card information near magnetic payment readers and thus
allows stores to use their existing card readers without replacing or
increasing the number.
- The business sector expects Samsung Electronics to go against Apple’s
Apple Pay by taking over Loop Pay.
Source 2015.02.10 YonHapNews Naver LINE takes over Japanese WebPay Holdings…. Strengthens LINE Pay
2015.02.19 DongA News.“Stop Apple Pay”3 reasons behind Samsung Electronics’takeover of Loop Pay
Image : techdissected.com
4

6. Spotlight on Fintech!: Domestic Market’s interest on Fintech
1 ‘Cooperation’, a key word in Fintech
NHN Entertainment launches easy payment service for e-commerce over borders
- Woo-Jin Jung, the CEO of NHN Entertainment, revealed that the 150 billion won increase in capital from issuing new stocks
will be used for easy payments and e-commerce over borders.
- NHN Entertainment plans to release their easy payment services within the first half of this year and to finish connecting
bases in China, Korea, Japan and the United States within the year.
- They have taken over shopping e-commerce companies such as Bee 3 Stars (US), Accommate (China), Sava Way (Japan),
and Godo Soft (Korea) in 2014 and will focus on gaining affiliate stores, to make use of their easy payment services, and users.
+ + +
Terminal Infrastructure Expansion
Payment Processing,
Affiliate Stores Regulation PG(Payment Gateway),
VAN(Value Added Network)
Calculations Responsibilities
New Contents Expansion
Take Over of a Share of Mobile T-Money Operation Company‘T-Monet’
Contracts business cooperation with KB Card to collaborate in Fintech Business
- NHN Entertainment took over 24.2% share of T-Monet (Hundred thousand stocks, 5 billion won in total)
- T-Monet is a electronic payment system development company and runs businesses such as mobile T-Money,
online cash charges, payments, car sharing, and online certificates.
- Through investments in T-Monet shares and businesses cooperation contracts, NHN Entertainment was able to achieve
technological skills and know-hows in the electronic payment category
- Through this contract, NHN Entertainment and KB Kookmin Card are planning to strengthen their cooperation in various
areas such as the release of easy payment services, supply of offline easy payment solutions, establishment of
NFC infrastructure for vitalizing mobile payments, release of smart cards with O2O services, and planning of foreign business
based on Fintech
Korea Cyber Payment
Source 2015.02.04 etnews NHN Entertainment“New Business will start with simplified payments and end with cross borders”
2015.02.12 zdnet NHN Entertainment – KB Kookmin Card, Fintech Cooperation 5
5

7. Spotlight on Fintech!: Domestic Market’s interest on Fintech
1
Source 2015.02.02 etnews etnews KG Inicis signs a capital partnership with NC Soft
2015.02.05 etnews Hana Bank and Daum Kakao launch a Fintech joint business
‘Cooperation’, a key word in Fintech
KG Inicis and NC Soft sign a capital partnership
- KG Inicis, an electronic payment company, signed a capital partnership of 45 billion won with NC Soft, a games
development and publishing company.
- Both companies plan to start Fintech TFT and to develop various business models such as online payment markets,
O2O (Online to Offline), and internet banks specializing in the commerce area.
- KG Inisis has transacted over one trillion won with hundred thousand affiliate stores yearly.
- Investments in certification terminals needed for offline expansion.
- Acquisition of security deliberation using NFC(Near Field Communication) card contacts.
- Establishment of the technology and infrastructure needed for the easy pay service
K Pay’s O2O market entry.
- A global network to places such as North America, Europe, Japan, and Taiwan secured
through NC Soft.
KG Inicis and NC Soft sign a capital partnership
Woori Bank and KT sign a business cooperation
contract of Internet of Things - Fintech
Hana Bank and Daum Kakao
launch a joint Fintech business
- Fin Tech Vitalization
- Discovery of united and complex services
- Construction of business models and platforms
- Development of asset management secured loan managing system
using IoT technology
- Development of location based finance products and customer
services using beacons
- Joint cooperation for food truck related businesses, a base for a
creative economy
- Joint development of business models that incorporates financial
communications fusion
2015.02.10 KT-Woori Bank signs a business agreement contract of Internet of Things – Fintech 6
+

8. Spotlight on Fintech!: Domestic Market’s interest on Fintech
1 Telecommunications Companies Prepare for
Entry into the Fintech Market!
Focus on developing innovative technology
- Low-powered Bluetooth (BLE) will be used to create services such as‘BLE Payment’and
‘BLE electronic cards.
- Popular services with large number of users such as SK Planet’s Syrup and OK Cashbacks will be
.combined with new technologies then used to expand the power in the mobile payment area.
Launch of various electronic payment settlement businesses
- KT has released electronic payment services‘Pay On Plus’and‘Tap Sign’at the end of 2014.
- They are aiming for the mobile shopping payment platform market using‘Tap Sign’, which they
launched together with BC Card (Tap Sign is a service that allows payment right away with self
confirmation by placing credit cards near smartphones)
Focus on securing affiliate stores for electronic payment services
-‘Pay Now’, a smartphone payment service, is commercialized and preparations for market attack
are well under way (Pay Now is a service that uses registered payment information to allow payment
through internal certification without the need of Active X or a certificate verification)
- A hundred thousand affiliate stores were secured including large scale book stores, cosmetics stores,
clothing stores, and duty free stores. Efforts are being made for securing more affiliate stores.
- LG U Plus plans to make coupons and complex payments possible along with simple payment functions.
Source 2015.02.06 Digital Times. Mobile Carriers’focus on‘Fintech’…. Ideas beyond imagination…. 7

9. Spotlight on Fintech!: Domestic Market’s interest on Fintech
1 Foreign Companies Expanding their Business in Korea
Source 2015.02.16 zdnet Amongst the spread of foreign consumers buying domestic products directly, AliPay and EPass have landed in Korea
2015.02.01 etnews Amazon increases department of marketing in Korea….. are they preparing for entry into electronic transactions
2015.02.05 ChungAng Ilbo. PayPal will initiate Korean services starting from the 12th
8
Alibaba’s AliPay
- Alibaba has been targeting Chinese tourists in Korea and have secured Ali Pay payment systems in duty free stores,
airlines, and shopping malls. As well, they have signed a contract with Lotte.com, an online complex shopping mall,
in order to target the domestic market.
- Ali Pay will be officially launched in Korea during March through the E Pass service. E Pass is a service that offers
distribution and payment infrastructures for domestic shopping malls so that they could sell their products to consumers
in China
- Until now, Ali Pay has done their business focusing on online payments in Korea but has recently began to provide
offline payment aids using mobile apps to make use of bar code recognitions.
PayPal initiates Korean services
- The American electronic payment company PayPal initiated Korean services from February 12th. Korean services will be
offered in steps starting with contents of the entire site then service centers.
- If you create a Pay Pal account to create an international credit card number and save a bank account number, you can
easily make payments by selecting Pay Pal as your payment method then logging into Pay Pal when making electronic
transactions. Recently, through Pay Pal Here that uses smartphones for credit card payments, entry into the offline
payment market was made.
- Currently, Pay Pal can only be used for foreign direct purchases since the domestic finance authorities have not yet
allowed for expansion
Amazon Prepares for Electronic Transactions Business
- Amazon is understood to be increasing their Korean marketing department as they began hiring workers to be in charge
of marketing and business development in Korea
- It is expected that Amazon is preparing to enter the Korean electronic transactions market with the recent increase in
hiring as opposed to only the cloud services they used to provide domestically. It is expected that they will first begin
with electronic transaction businesses with companies then will expand to consumers later on

10. Spotlight on Fintech!: Domestic Market’s interest on
1 Biometrics, Fintech’s partner
By the year 2020, all smart mobile instruments such as
smartphones, tablet PC, and wearable instruments,
are expected to have biometric modules added
It is expected to grow to an yearly yield of
3.33 billion dollars (about 36 trillion won)
Source:Acuity Market Intelligence
- Crucial Tech possesses both the air-reader technology which recognizes finger prints with just
one touch and the swipe typed technology.
- Together with Danal, a payment service company, they established a multi-solution business
company called BioPay and are preparing for various biological information recognition solutions
such as iris recognition and vein recognition.
- Samsung Electronics has applied for a patent related to iris recognition in 2012 but it has not
been confirmed whether this was applied to any products yet
- Companies specializing in camera modules such as Power Logics and Haesung Optics are
developing cameras with iris recognition technology but more time is needed for these cameras
to be commercialized.
- Trais has recently developed‘T-SEC’, a smart payment certification technology that makes
payment possible with just fingerprint recognition.
- This technology recognizes finger prints through the display itself without a need for modules
such as the home button
Source 2015.02.05 etnews.. Every smart mobile instruments by the year 2020 will include a Biometrics module…. Yearly average growth expectancy at 90% 9
2014 2015 2016 2017 2018 2019 2020
$707
$2,573
$5,077
$9,078
$15,616
$24,642
$33,329Mobile biometrics Forecast
yearly
growth
rate:
90%
(measure: million)

11. A well-made Content Overpowers Ten Companies
2
Korea Creative Content Agency and Naver sign a MOU in order to vitalize the web drama market
- Web dramas are gaining popularity as a‘snack culture’content, a consumer trend content in growth that can be enjoyed
easily while travelling, thanks to increases in the number of smartphones
- Both companies aim to present a successful example in the domestic web drama market within the year by excavating
outstanding project proposals, supporting the productions, and developing cooperation businesses related to web dramas
Source
Naver runs‘Webtoons & Webnovels’as its independent company
- Naver incorporated the CIC: Company in Company system and chose‘Webtoons and Webnovels’as its first CIC.
- Ever since the launch in 2004, the webtoon service has grown to have 6.2million domestic users daily and the
webnovel service is steadily growing as well.
- Naver revealed that they have implanted CIC in order to support their service with a vision to grow independently
and to aid the growth of a manager with a business mind. If it is decided that the CIC can succeed independently,
it can be branched into a separate firm.
10
Support for discovery and
production of outstanding
Web-Drama Project Proposal
Web-Dramas online
services and promotion
2015.02.01 etnews KOCCA (Korea Creative Content Agency) has offered 3.3 billion won aid for web drama productions….. distributed to Naver
2015.02.04 etnews Naver runs an in-company independent company….. first trial is webtoons & webnovels

12. ‘A Move of God’ in the Games Market
3
Source 2015.01.30 Money Today.‘Nexon – NC’, failed cooperation, a clean break-up needed for the next sequence
2015.01. 28 Kyung Hyang. Naver., Nexon Jung-Joo Kim and NC Soft Taek-Jin Kim turn their backs on each other…. What could have happened? 11
Major Works: Land of Wind,
Mabinogi, Cart Rider, Maple Story
Major Works: Lineage,
Lineage 2, Blade & Soul
Jung-Joo, Kim(Current NXC CEO)
Founded Nexon
Taek-Jin Kim(Current NC Soft CEO)
Founded NC Soft
Nexon becomes highest stockholder of NC Soft
Takes over 14.68% of NC Soft’s stocks
(804.5 billion won)
- Simple investment purposes on share
take-over
- Stated that the take-over of management
rights is not intended
EA joint take-over decision
Nexon purchases an additional 0.38% share
of NC Soft
Nexon explains it was only for simple
investment purposes
Failure of attempt at EA joint take-over
Taek-Jin Kim’s share percentage 9.9%
(fall to second highest stockholder)
Nexon requests for a directorship within
the company to NC Soft
Tentative suspension of Mabinogi 2
joint development
Public announcement of Nexon and
NC Soft’s management participation
Public announcement of Nexon and
NC Soft’s management participation
NC Soft signs a strategic alliance contract
with Net Marble
NC Soft declines Nexon’s requests
Rumor about an attempt for NC Soft and
NHN Entertainment’s merge
Announcement of Mabinogi 2
joint development
1994
1997
2012 MAR
2012 JUN
2012 AUG
2012 NOV
2014 JAN
2014 OCT
2015 JAN
2014 DEC

13. ‘A Move of God’ in the Games Market
3 NC Soft and Net Marble Games sign a strategic and joint business contract
in order to enter the global games market
Net Marble Games 4th highest
stockholder.
NC Soft 3rd highest stockholder
Net Marble Games’online games
development using global IP
NC Soft’s mobile games
development using global IP
Netmarble Games new stocks
9.8% taken over at 380 billion won
NC Soft treasury stock 8.9%
Taken over at 390 billion won
Cross marketing
Mutal publishing business cooperation
Establishment of joint company and joint investments
Joint entry into global mobile games market
Taek-Jin Kim
CEO of NC Soft
The strategic alliance of the top domestic online games and the top domestic mobile games
will become an important starting point for a joint growth. This alliance is believed to
become a stepping stone for domestic games markets to make greater advances.
Net Marble will strive to gain competitive edge in the global market by combining mobile
publishing know-how’s with NC Soft’s online IP. This alliance will allow for both
companies to grow into global games companies.
Source 2015.02.17 zdnet zdnet NC – Net Marble alliance…. Joint entry into global market 12
Jun-Hyuk Bang
Chairman of
Netmarble Games

14. Mobile Market Key Point
4 Massive Traffic Move to Mobiles
3G Smartphone users
Average data use (Traffic) per person
4G Smartphone users
Average data use (Traffic) per person
General Fee Users 243MB
Unlimited Data Fee Users 3748MB
General Fee Users 1969MB
Unlimited Data Fee Users 12949MB
Top 10% of all 3G Smartphone users Top 10% of all 4G Smartphone users
5423TB Used 6985TB Used
(88.2% of total used amount) (53.2% of total used amount)
55.5% : Videos such as Video On Demand (VOD)
14.5% : Social Networking Service (SNS)
13.9% : Web Portals
7.7% : Multimedia
3.6% : Market downloads
Percentage of traffic based on contents types
Source
15.4 times 6.6 times
132015.02.15 Asia Economy.‘Unlimited Data Fee’users’data usage…. Over 15 times more than that of General Fee users
Videos
55.5%
SNS
14.5%
Web Portals
13.9%

15. Mobile Market Key Point
4 Smartphone, a Must-Have-Item
Indication of smartphones as a necessary daily media is increasing!
PC/Laptop
Yearly necessary instruments (Unit: %)
Smartphones
TV
Others
Necessary daily instruments depending on age group (Unit: %)
Percentage of Use for more than 5 days a week
per media (Unit: %)
Percentage of watching TV programs for more than a day
using smartphones
14
PC/Laptop
Smartphones
TV
2013 2014
Place of use
(multi response)
Usually at home
47.8%
While travelling
35.3%2013
79.4
33
65.8
2014
78.4
30.6
70.8
Data: Korea Communications Commission‘2014 Research of Broadcasting Media Usage Behavior’
2013 2014
9.4
44.3
43.9
46.3
37.3
12.9
14.7
69.0
48.6
38.6
59.1
24.4
69.0
13.7 92.869.3
23.9 3.9
Teens 20s 30s 40s 50s 60s
23.7% 25.8%

16. Mobile Market Key Point
4 Mobile Shopping Era!
Online shopping
transaction fees
(Including PC & mobile internet environments)
4.0544 trillion won
(year over year increase of 17.5%)
Mobile shopping
transaction fees
1.4809 trillion won
(year over year increase of 125.8%)
Growing Social Commerce! Increase in mobile transactions in 2014 has contributed to the growth of Social Commerce
Data: Korea National Statistical Office
Domestic Social Commerce Transaction Size Development
(Sum of 3 companies,
Coupang, Wemakeprice, Ticket Monster)Out of Entire Transactions in 2014
Mobile Transactions 65%
Size of the Social Commerce Market in 2015
Expected to be 7~8 trillion won
Source
15
2011 2012 2013 2014(e) 2015(e)
7~8 trillion won
5.5 trillion won
3.4 trillion won
1.9 trillion won
7.9 hundred
billion won
Data:Business Sector Estimation (Sum of 3 companies, Coupang, Wemakeprice, Ticket Monster
32.7%
Percentage of mobile shopping
out of entire online shopping
2015.01.27 etnews Social Commerce transactions exceed 5 trillion won
2015.01.29 etnews Mobile Shopping Era has come…. Online shopping and mobile transactions exceed over 30%

17. Source Domestic Issue
16
1. Spotlight on Fintech!: Domestic Market’s interest on Fintech
2015.01.27 etnews Fintech Promotion…. Vast changes to electronic finances
http://www.etnews.com/20150127000232
Restructuring of the regulations ignites Fintech
‘Cooperation’, a key word in Fintech
2015.02.02 YonHapNews Naver LINE takes over Japanese WebPay Holdings…. Strengthens LINE Pay
http://www.etnews.com/20150202000107
2015.02.04 etnews NHN Entertainment“New Business will start with simplified payments and end with
cross borders”
http://www.etnews.com/20150204000150
2015.02.05 etnews etnews Hana Bank and Daum Kakao launch a Fintech joint business
http://www.etnews.com/20150205000101
2015.02.12 zdnet NHN Entertainment – KB Kookmin Card, Fintech Cooperation
http://www.zdnet.co.kr/news/news_view.asp?artice_id=20150212105502
2015.02.10 YonHapNews Naver LINE takes over Japanese WebPay Holdings…. Strengthens LINE Pay
http://news.einfomax.co.kr/news/articleView.html?idxno=138962
2015.02.19 DongA News.“Stop Apple Pay”3 reasons behind Samsung Electronics’takeover of Loop Pay
http://news.donga.com/3/01/20150219/69717880/1

18. Source Domestic Issue
17
1. Spotlight on Fintech!: Domestic Market’s interest on Fintech
2015.02.06 Digital Times. Mobile Carriers’focus on‘Fintech’…. Ideas beyond imagination….
http://www.dt.co.kr/contents.html?article_no=2015020902100351747001
Telecommunications Companies Prepare for Entry into the Fintech Market!
Foreign Companies Expanding their Business in Korea
2015.02.01 etnews Amazon increases department of marketing in Korea….. are they preparing for entry into
e-commerce
http://www.etnews.com/20150130000189
2015.02.05 ChungAng Ilbo. PayPal will initiate Korean services starting from the 12th
http://joongang.joins.com/article/aid/2015/02/05/16669950.html?cloc=olink%7Carticle%7Cdefault
2015.02.16 zdnet Amongst the spread of foreign consumers buying domestic products directly,
AliPay and EPass have landed in Korea
http://www.zdnet.co.kr/news/news_view.asp?artice_id=20150216140327
Biometrics, Fintech’s partner
2015.02.05 etnews very smart mobile instruments by the year 2020 will include a Biometrics module….
Yearly average growth expectancy at 90%
http://www.etnews.com/20150204000255

19. Source Domestic Issue
18
2. A well-made Content Overpowers Ten Companies
2015.02.01 etnews KOCCA (Korea Creative Content Agency) has offered 3.3 billion won aid for web drama
productions….. distributed to Naver
http://www.etnews.com/20150130000106
2015.02.04 etnews Naver runs an in-company independent company….. first trial is webtoons & webnovels
http://www.etnews.com/20150204000178
2015.02.17 zdnet NC – Net Marble alliance…. Joint entry into global market
http://www.zdnet.co.kr/news/news_view.asp?artice_id=20150217110402
2015.01.27 etnews Social Commerce transactions exceed 5 trillion won
http://www.etnews.com/20150127000068
2015.01.29 etnews Mobile Shopping Era has come…. Online shopping and mobile transactions exceed over 30%
http://www.etnews.com/20150129000081
2015.02.15 Asia Economy.‘Unlimited Data Fee’users’data usage…. Over 15 times more than that of
General Fee users
http://topic.kakao.com/article/18353065086994218307
3. ‘A Move of God’ in the Games Market
4. Mobile Market Key Point

20. Thank You
Contact us
Webpage www.mobidays.com
Blog http://blog.naver.com/mobidays01
Editor Shim, Sang Yong (sy.shim@mobidays.com)
Design Lim, Won (wlim@mobidays.com)
Kim, Min Kyu (minkyu@mobidays.com)
KM Report