South Korea Emerges as a Global Video Game Powerhouse with Changing Policies and Growing Market
In October 2025, South Korean President Lee Jae Myung announced a significant policy shift by declaring that 'games are not addictive substances,' moving away from the 2013 efforts to classify gaming as an addiction. This change reflects the country's evolving stance toward the video game industry.
The domestic gaming market in South Korea experienced remarkable growth between 2019 and 2023, expanding by 47% to reach 22.96 trillion won. Exports also surged by 41%, totaling 10.96 trillion won, with gaming accounting for nearly two-thirds of the nation's content exports. Globally, South Korea ranks fourth in gaming market share behind the United States, China, and Japan.
The country's esports sector was valued at approximately 257 billion won in 2023, serving as a key showcase and marketing engine for the broader gaming industry. The foundation of this success traces back to the late 1990s with substantial broadband investments and the widespread establishment of PC bangs — internet cafes dedicated to gaming — of which there are about 7,800 nationwide.
Institutions like the Nongshim Esports Academy offer specialized training, charging around 500,000 won for 20 hours per month. Since 2018, the academy has produced 42 professional gamers, with an estimated 1 to 2% of trainees reaching professional status. Top esports players in South Korea can earn six-figure incomes in US dollars from combined salaries, prize money, and sponsorships, although their careers tend to be short-lived, often concluding before age 30, a timeline influenced by mandatory military service.
The government actively manages the balance between the sector's growth and player welfare. It supports seven state-backed healing centers and enforces standardized contracts that cap official training hours to protect players' health and interests.
