Korean game companies, including Krafton, Neowiz, and NCsoft, are investing in Polish firms to expand their global reach and secure innovative IP. The attractive attributes of Poland, including its strong development capabilities and lower labor costs, make it a prime investment target. With projections of sustained growth, the region offers significant opportunities for developers.
Prominent Korean gaming firms, including Krafton, Neowiz, and NCsoft, are strategically investing in Polish game companies to enhance their global presence and acquire innovative intellectual property (IP). Poland has emerged as an appealing market due to its strong development talent combined with lower labor costs, positioning it as a key investment destination for these companies seeking to capitalize on opportunities abroad.
In March of last year, Krafton acquired a 10% stake in Polish game developer People Can Fly for approximately 144.5 million zloty. The following November, Neowiz invested $17 million in Blank Game Studio, subsequently adding another $8 million for a project with Zakazane. Most recently, NCsoft invested in Virtual Alchemy, securing global rights for the RPG “Band of Crusaders.”
The growing interest among Korean gaming companies in Eastern Europe, particularly Poland, can be attributed to favorable conditions, including reasonable prices for valuable IP and high development capabilities. With an average monthly wage of approximately 8,161 zloty, labor costs remain competitive in comparison to other European markets, bolstering the region’s attractiveness for investment.
The Eastern European gaming market, especially Poland, serves as a vital launching pad into Western markets. The Polish government’s supportive measures for the creative industries have led to an impressive annual growth rate of 19.1% in the video game sector from 2017 to 2022. With ongoing expansion, Poland is projected to maintain a growth rate of 8.71% annually until 2027.
An industry official noted that “Eastern European development companies tend to excel in platforms where domestic game companies are relatively weak, such as PC, console, and Steam.” This trend highlights the strategic advantages of investing in Eastern Europe, where diversification, securing strong IP, and opportunities for global expansion are becoming increasingly appealing to Korean game developers.
The article highlights the trend of Korean gaming companies strategically investing in Eastern European firms, particularly in Poland, to secure innovative IP and expand their global reach. Factors influencing this trend include Poland’s high development capabilities and low labor costs, making it a lucrative market for these companies aiming for competitive advantages and entry into Western markets.
In conclusion, the strategic investments by Korean game companies in Polish firms reflect a growing interest in the Eastern European market due to its favorable conditions. With robust development talent and reasonable labor costs, Poland emerges as an attractive investment destination. This trend is expected to facilitate the regional games industry’s growth and provide further avenues for global expansion for Korean firms.
Original Source: www.businesskorea.co.kr
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