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2. 2015/08
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Mobidays [KM Report]
Article & Advertisement Contact : j3y_sj@mobidays.com
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.
Mobidays Team
1

3. 1. Increasing mobile payments… but large sums are yet to come
2. 5 charms of Korean mobile pay
3. Ministry of Future Planning and 8 domestic universities raise IoT talents
4. Mobile ad markets preparing for the main game
5. Korea, China, Japan’s single market and Coupang’s challenge
1. The Millennial and Silver Surfer generation of the mobile era
2. Mobile ads leading the internet ad growth
3. Apple-Starbucks smiling thanks to mobiles
4. Korea, China, Japan’s mobile game market 3 way battle and India
5. Alibaba’s Big Deal, connecting videos and commerce
Index
Domestic Issues
Global Issues
2

4. Increasing mobile payments… but large sums are yet to come
5 charms of Korean mobile pay
Ministry of Future Planning and 8 domestic universities raise IoT talents
Mobile ad markets preparing for the main game
Korea, China, Japan’s single market and Coupang’s challenge
1
2
3
4
5
Domestic Issues
3

5. Increasing Mobile Payments… But Large Sums Are Yet to Come1
Source : Nov.16th, 2015. ZDNet "Mobile first in finance as well” .. Mobile banking continuously growing
0
5,000
2011 2012 2013 2014 2015
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
54.6% 6.3%
[2015 3rd quarter
internet banking size]
Weight of Mobile Banking Out of Internet Banking
The number of mobile banking users are exceeding Desktop based users,
but large scale fund transfers are being made through internet banking.
Mobile banking is usually used for small amount transfers.
(Unit : 1 billion KRW)
Total internet banking
Mobile banking
Desktop based internet banking
Number of usage
: daily average 77.66 million
Mobile banking usage
out of internet banking
Mobile banking usage sum
out of internet banking
Usage amount
: daily average 40 trillion 716.2 billion KRW
4

6. 5 Charms of Korean Mobile Pay2
Source : Oct.27th, 2015. Maeil Business News Korea [Mobile Payments] Consumer patterns looked through mobile payments
25.7%
13.3% 11.7%
10.3%
Restaurants Convenience
stores
Light food
restaurants
Coffee shops
Samsung
Pay
Naver
Pay
• released in Aug, 2015
• accessible through smartphone touch
• Samsung Pay payment weights
• released in June, 2015
• Pay, charge, save, transfer through IDs
• main user generation: 20s~30s(77%), females
• used for fashion, general foods, digital, daily supplies purchases
• Users who access it on a daily basis: 10%
Average payment
amount per person
70,000 KRW
Average number of payments
per person
1.77 times monthly
• main user generation in 30s(over 50%), males (86.5%)
• Users who access it on a daily basis: 10%
5

7. 5 Charms of Korean Mobile Pay2
Source : Oct.27th, 2015. Maeil Business News Korea [Mobile Payments] Consumer patterns looked through mobile payments
Kakao Pay
SSG Pay
PAYCO
• released in Sept, 2014
• mobile payment service
• main user generation in 20s(46%), females(60%)
• used for simple snack and coupon purchases
• item most purchased during one day in 2014: Baskin Robbins Pint Gift
• released in Aug, 2015
• accessible through smartphone touch
/pay through ID
• supplied by NHN Entertainment
• released in July, 2015
• mobile payment service
• supplied by Shinsegae Group
• usable in Shinsegae Group such as eMart and Starbucks
• serviced with money charge method, easy payment method,
and mixed method
• useful for customers who often use Shinsegae affiliated
companies
• offline payments possible at franchise stores
• payments possible through ID and password on online
shopping malls
• linked with T-money, usually used for public
transportations
6

8. Ministry of Future Planning and 8 Domestic Universities Raise IoT Talents3
Source : Nov.8th, 2015. Seoul Economic Daily An era of 4 million domestic IoT users
Source : Ministry of Science and Future Planning
Ministry of Future Planning organizes ‘SW major universities council’
The Internet of Things(IoT) users : 4 million 84,870 (in Sept, 2015)
• SW major universities’ management experience and results will be shared.
• The network of universities within and outside the country will be utilized.
Wearable device users
Vehicle control users
Tablet PC users
77,576
676,249
57,773
293,644
Jan. 2015 Sept. 2015
734,339
563,686
Gachon
University
Korea
University
Sogang
University
Sungkyunkwan
University
Sejong
University
Ajou
University
Kyungpook
National
University
Chungnam
National
University
7

9. Mobile Ad Markets Preparing for the Main Game Preparing to go public4
Source : Nov.12th, 2015. Mobi-Inside. [SimGoon’s Moai] Domestic mobile ad companies’ M&A, IPO preparation active… the reason for this?
Echo Marketing
Echo Marketing is an online advertising agency and selected
Korea Investment & Securities Co.,
• Emphasis on mobile ad business (40% of 2014 sales occurred in mobile ads)
• Entry into Chinese market (Creation of China marketing team within company)
NBT
NBT services the mobile lock screen ad platform ‘cash slide’ and is planning to go
public in 2016.
• Investment for securing technology human resources
(30% of NBT workers are intermediate-advanced engineers)
• Securing investment funds for entry into US, China, Southeast Asia markets
(obtaining develop/manage/business human resources for each country)
Incross
An affiliate company of SK Group, its business focuses mainly on mobile game
publishing, media lab, and video ad network. It has been preparing to go public since
the end of 2014.
• Mobile game publishing business will be expanded and will be connected
with the mobile ad business.
8

10. Mobile Ad Markets Preparing for the Main Game M&A4
Source : Nov.12th, 2015. Mobi-Inside. [SimGoon’s Moai] Domestic mobile ad companies’ M&A, IPO preparation active… the reason for this?
• eNuri.com announced they will release a ‘mobile lifestyle commerce platform’ through M&A.
• eNuri.com is likely to secure the groundwork for mobile commerce through
Shall We AD’s mobile ad platform technology and knowhow.
• By absorbing Nextapps’ technology and Korean market infrastructure,
Metaps is attempting to increase their sales.
• Most of the Japanese mobile ad companies have grown to become
large companies and as purchasing prices are high, attention is paid to Korean markets.
eNuri.com takes over the mobile ad platform Shall We AD
Japanese mobible ad company Metaps takes over mobile ad company Nextapps
Metaps secured 51% of Nextapps’ shares at about 200KRW.
9

11. Korea, China, Japan’s Single Market and Coupang’s Challenge5
Source : Nov.2nd, 2015. Mobi_Inside [Jaesuk Yoo’s Twisting View] The single market of Korea, China, and Japan and those who are ready
• In the summit conference of Korea, China, and Japan, the 3 countries agreed and announced to
cooperate for the creation of a digital single market.
• Cooperation in electronic commerce such as information share, cooperative study and training,
other interactions in both public and private areas will be carried out between the 3 countries.
• SoftBank currently owns 51% of the share of Yahoo Japan. Yahoo Japan runs Yahoo Shopping in Japan.
• SoftBank is the largest shareholder of Alibaba, owning 34.4% of the shares.
• SoftBank invested 1.1 trillion KRW in Coupang in January, 2015.
• If Alibaba, Yahoo Shopping and Coupang cooperate,
people will be able to shop on the same platform
whether they are in Korea, China or Japan.
Korea, China, Japan’s Single Market Announcement at the Summit Conference
If the e-commerce of Korea, China, and Japan were to be united, SoftBank will be thought of first?!
SoftBank owns
51% of Yahoo Japan’s
Shares
1.1 trillion KRW
invested in Coupang
Yahoo Shopping run by Yahoo Japan
SoftBank owns
34.4% of
Alibaba’s shares
10

12. Korea, China, Japan’s Single Market and Coupang’s Challenge5
Source : Nov.8th, 2015. Mobi_Inside [Jaesuk Yoo’s Twisting View] Coupang, will they be eaten by money? Or will they eat it?
• Coupang received a total investment of 1.5 trillion KRW from companies such as Softbank,
Sequoia Capital, and BlackRock between last year and this year.
• The investment will be used for delivery personnel and distribution centers in order to
increase the scale in the domestic market.
• The 15,000 Coupang-man employment plan for 2017 seems to be an announcement for
obtaining 38% of the e-commerce market.
Social Commerce Coupang held a press conference on November 3rd
Main keywords: increase of Coupang-man employment (delivery personnel strengthening)
/ expansion of distribution centers
Increase of
Coupang-man
employment
about 3,500
currently
Year 2016(e)
10,000
Year 2017(e)
15,000
about 6,000
currently
Year 2017(e)
About 24,000
14
currently
Year 2017(e)
21
increase of
distribution centers
and CS(Call Center) workers
Increase of
Coupang-man
employment
11

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12

14. The Millennial and Silver Surfer generation of the mobile era
Mobile ads leading the internet ad growth
Apple-Starbucks smiling thanks to mobiles
Korea, China, Japan’s mobile game market 3 way battle and India
Alibaba’s Big Deal, connecting videos and commerce
1
2
3
4
5
Global Issues
13

15. The Millennial and Silver Surfer Generation of the Mobile Era1
Source : Nov. 19th, 2015. ZDNet "Korea, Silver opens up their wallets for ‘digital’ without hesitation”_eShopping. SNS ‘world best’
Source : TNS, Connected Life
GlobalAsia-Pacific
area
Australia
ChinaHong
Kong
IndiaIndonesia
JapanM
alaysia
New
Zealand
Philippines
Singapore
KoreaTaiw
anThailandVietnam
3.2
2.8
2.1
3.9
2.8
2.2 2.5
1.6
3.8
2.2
3.1 3.4
2.9 2.9
4.2
Social media use
46%
View videos
42%
Online shopping
12%
2.2
What is the Millennial generation?
The generation born between early 1980s and early 2000s,
and have accessed the Internet since adolescence and are thus skilled at
using mobiles and social network services.
The Millennial generation(age 16~30)’s global average
mobile usage time : 3.2 hours
The different ‘Millennial’ mobile consume times
Age 16~30 in Korea spend 2.9 hours on mobiles daily.
How the ‘Millennial generation’ use
mobile phones
The ‘Millennial generation’ in the Asia-Pacific area
use their mobiles as so.
14

16. The Millennial and Silver Surfer Generation of the Mobile Era1
Source : Nov. 19th, 2015. ZDNet "Korea, Silver opens up their wallets for ‘digital’ without hesitation”_eShopping. SNS ‘world best’
Global
Korea
2.1 hours
View videos
24 min
Listen to radio
12 min
Read newspaper
1.8 hours
Use mobile phones
Online video /TV view Social Networking Online Shopping
45.7% 37.7% 16.6%
49.2% 23.8% 27%
What is the Silver Surfer generation?
[Silver Surfer generation’s online activity (Unit: %)]
It is a term that describes the elderly who are skilled at using smart devices
such as smartphones.
People aged 55~65 are part of the Silver Surfer generation.
Koreans aged 55~65 have 24 minutes longer mobile consume time compared to the
global spectrum.
Generations older than the ‘Millennial’ are enjoying consuming traditional media as well.
Thanks to Korea’s developed internet and mobile environment,
e-commerce is vitalized among the elderly as well.
15

17. Mobile Ads Leading the Internet Ad Growth2
Source : Oct. 23rd, 2015. ZDNet US internet ads, mobile-social “paired” power
(Source : IAB/Search Engine Land)
4.4 billion dollars
16% of total internet ad market
53% growth
on average yearly for
3 years from first half of 2012
until first half of this year
Mobile display ads
4.3 billion dollars54%
growth compared to
previous year
• The US internet ad market in the 2nd quarter of
2015 grew 22.5% compared to the previous year.
• Mobile ads, video ads, and social ads
towed the internet ad market’s growth.
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
$6.2
$7.7
$8.7
$10.3
$11.7
$14.3
$4.1
$5.1
$5.7
$5.4
[US internet ad market size during the
2nd quarter each year]
[Mobile ad sales in the first half of 2015] [Social media ad sales in the first half of 2015]
(Unit : 1 billion dollars)
15% growth on
average yearly
8.2
billion
dollars
16

18. Apple-Starbucks Smiling Thanks to Mobile3 4 reasons why iPhones are selling well
Source : Oct.28th, 2015. HPPC [4 reasons why iPhones are selling well by Tim Cook]
Apple records the highest performance ever in 2015 fiscal year 4th quarter
(July~Sept)!!
1. There are still a lot of people with the old small screen iPhones.
Many of these people will one day upgrade their phones to a bigger screen iPhone.
2. Number of users who switch from android phones to iPhones are increasing.
30% of the 4th quarter iPhone purchasers have been Google android phone users.
3. iPhones are playing their role as a premium device effectively in the Chinese market.
The Chinese middle class currently have the ability to purchase iPhones.
4. The price of iPhones are sometimes up to twice as more expensive than other phones.
They are indicated as luxury premium items and this is what appeals to the
Chinese middle class.
팀 쿡 애플 CEO
“4 reasons why iPhones are selling well”
• number of iPhones sold in the 4th quarter : 48.40 million
• Sales 51.5 billion dollars (22% increase compared to previous year)
• 63% of total sales are from iPhone sales
• Net Profit 11.1 billion dollars (31% increase compared to previous year )
17

19. Apple-Starbucks Smiling Thanks to Mobile3 Starbucks preparing for a mobile innovation
Source : Nov. 6th, 2015. Bloter 21% of Starbucks’ 4th quarter Sales are from mobiles
Starbucks Sales
4 billion
90.11 million
dollars
Sales
About
617 billion KRW
Mobile Payments
Monthly average
1.7 million
Mobile Payment Sum
Monthly average
10 billion KRW
Mobile Payments
1 billion
3 million
dollars
• Starbucks mobile payments take up
about 10% of each stores’ sales.
• Over 5 million cases are occurring in
mobiles each week globally.
스타벅스 CEO
“ When a mobile payment environment was created to allow
easy purchase of coffee, customers began to respond enthusiastically.
We, here at Starbucks, plan for a digital innovation that no other
retail stores have achieved.”
4th quarter of 2015
Starbucks Korea in 2014
18

20. Korea, China, Japan’s Mobile Game Market 3 Way Battle and India4
Source : Nov.6th, 2015. Asia Economy Daily The mobile game market size of Korea, China, and Japan is 51% of the entire world.
• A few games are dominating the entire market.
(The yearly sales of ‘Monster Strike’ by Mixi and ‘Puzzle & Dragons’ by Gungho are over 1 billion dollars)
• Games must be released through local app markets because there is no Google Play.
• Due to the large surface area of the country, marketing is difficult without a local publisher.
• 60~70% of Sales must be paid to the local publishers and app market as a commission fee.
• The mobile game market of India is 416 million dollars (about 470 billion KRW).
• By 2018, it is expected to grow up to 1.2 billion dollars(about 1.36 trillion KRW) with the aid of 1 billion population.
51% of Global market
90% of Asian market
6.2 billion dollars
( about 7.05 trillion
KRW )
5.2 billion dollars
( about 5.91
trillion KRW )
Western game companies find it difficult to enter Japan and China
Mobile game market in India is rapidly growing
1.3 billion dollars
( about 1.48
trillion KRW )
mobile game market size of Korea, China, and Japan
12.7 billion dollars(about 14.45 trillion KRW)
19

21. Alibaba’s Big Deal, Connecting Videos and Commerce5
Nov.10th, 2015. Mobi-Inside. [JaeSuk Yoo’s Twisting View] Alibaba and the Chinese YouTube meet… and the dream world of Ma Yun
Source : iResearch
Alibaba attempts to take over the Chinese online video platform YouKu Tudou
• Alibaba, who runs the largest electronic commerce platform in China,
is preparing to take over China’s largest video platform YouKu Tudou.
• Alibaba plans to spend a total sum of 4.35 billion dollars (about 5 trillion
KRW) to buy all the shares of YouKu Tudou.
Chinese video market size in 2015
36.8 billion Yuan
(about 6.6751 trillion KRW)
50.2%
growth compared to
previous year
Prediction of 2018
90.24 billion Yuan
(16.3686 trillion KRW)
Chinese video ad market size in 2015
22.82 billion Yuan
(4.1393 trillion KRW)
Prediction of 2018
54.03 billion Yuan
(9.8005 trillion KRW)
20

22. Alibaba’s Big Deal, Connecting Videos and Commerce5
Source : Nov.10th, 2015. Mobi-Inside. [JaeSuk Yoo’s Twisting View] Alibaba and the Chinese YouTube meet… and the dream world of Ma Yun
Video View Induce purchase Move to purchase page Purchase
Users
Alibaba continuously invests in the online video market
• Since last year, Alibaba is taking over and investing in entertainment/media companies
such as China vision media group, Wasu Media, Shanghai Enlight.
A new business connecting videos and e-commerce
• Since their merge in 2012, YouKu and Tudou had no clear business models that showed the reason for the merge
and have been facing deficits.
• Alibaba is preparing to take over YouKu Tudou on a mid to long term perspective.
• Online video ads have a high residual rate and are easy to connect to commerce.
• Alibaba will introduce a new business that connects YouKu Tudou’s video and e-commerce.
As foreign online video services are facing difficulties entering China,
Alibaba will have large ripple effects if YouKu Tudou secures all broadcasting contents of global channels
and combines it with e-commerce.
21

23. Nov.16th, 2015, ZDNet "Mobile first in finance as well” .. Mobile banking continuously growing
https://www.zdnet.co.kr/news/news_view.asp?artice_id=20151116111025
1. Increasing mobile payments… but large sums are yet to come
Oct.27th, 2015. Maeil Business News Korea [Mobile Payments] Consumer patterns looked through mobile payments
http://news.mk.co.kr/newsRead.php?no=1022668&year=2015
2. 5 charms of Korean mobile pay
Nov.8th, 2015. Seoul Economic Daily An era of 4 million domestic IoT users
http://economy.hankooki.com/lpage/it/201511/e20151108141506117700.htm
3. Ministry of Future Planning and 8 domestic universities raise IoT talents
Domestic Issues
22

24. Nov.12th, 2015. Mobi-Inside. [SimGoon’s Moai] Domestic mobile ad companies’ M&A, IPO preparation active… the reason for this?
http://www.mobiinside.com/kr/index.php/2015/11/12/korea_mobile_cashflow/
4. Mobile ad markets preparing for the main game
Nov.2nd, 2015. Mobi_Inside [Jaesuk Yoo’s Twisting View] The single market of Korea, China, and Japan and those who are ready
http://www.mobiinside.com/kr/index.php/2015/11/02/singlemarket-1/
Nov.8th, 2015. Mobi_Inside [Jaesuk Yoo’s Twisting View] Coupang, will they be eaten by money? Or will they eat it?
http://www.mobiinside.com/kr/index.php/2015/11/03/coupang-money/
5. Korea, China, Japan’s single market and Coupang’s challenge
Domestic Issues
23

25. Nov. 19th, 2015. ZDNet "Korea, Silver opens up their wallets for ‘digital’ without hesitation”_eShopping. SNS ‘world best’
http://www.zdnet.co.kr/news/news_view.asp?artice_id=20151119084614&type=det&re=
1. The Millennial and Silver Surfer generation of the mobile era
Oct. 23rd, 2015. ZDNet US internet ads, mobile-social “paired” power
http://www.zdnet.co.kr/news/news_view.asp?artice_id=20151023140029&type=det&re=
2. Mobile ads leading the internet ad growth
Oct.28th, 2015. HPPC [4 reasons why iPhones are selling well by Tim Cook]
http://hooc.heraldcorp.com/view.php?ud=20151028000228
Nov. .6th, 2015. Bloter 21% of Starbucks’ 4th quarter Sales are from mobiles
http://www.bloter.net/archives/243073
3. Apple-Starbucks smiling thanks to mobiles
Global Issues
24

26. Nov.6th, 2015. Asia Economy Daily The mobile game market size of Korea, China, and Japan is 51% of the entire world.
http://view.asiae.co.kr/news/view.htm?idxno=2015110608282155331
4. Korea, China, Japan’s mobile game market 3 way battle and India
Nov.10th, 2015. Mobi-Inside. [JaeSuk Yoo’s Twisting View] Alibaba and the Chinese YouTube meet… and the dream world of Ma Yun
http://www.mobiinside.com/kr/index.php/2015/11/10/alibaba-tudou-youku/
5. Alibaba’s Big Deal, connecting videos and commerce
Global Issues
25

27. Thank You
Contact Us
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Seung Je, Lee
j3y_sj@mobidays.com
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26