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(blog.naver.com/mobidays01).
[Mobile Advertisement Research Institute: MARI] collects and studies domestic and overseas mobile
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‘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.
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3. 1. Kakao’s Growth Stands at a Stagnation Point
2. China’s Strong Influence on the Korean Gaming Market
3. Nexon and NC’s Beautiful Farewell(?)
4. Korean SNS Usage Pattern
1. India and China Feeding Google and Apple
2. The Overwhelming Size of the Chinese Gaming Market
3. Alibaba’s Aggressive Measures
Index
Domestic Issues
Global Issues
2

4. Kakao’s Growth Stands at a Stagnation Point
China’s Strong Influence on the Korean Gaming Market
Nexon and NC’s Beautiful Farewell(?)
Korean SNS Usage Pattern
1
2
3
4
Domestic Issues
3

5. Kakao’s Growth Stands at a Stagnation Point The different appearance of monitoring issue compared to 20141
Mobile messenger service KakaoTalk resumes cooperation with the
organization’s investigational monitoring
The difference compared to the monitoring issue of KakaoTalk in 2014?
• On October 6th, the Public Prosecutor General Jin-Tae Kim revealed at the Supreme Prosecutor’s
government affairs inspection office that they have negotiated on the means of resumption on the
communication restriction measures with Kakao.
• The method involves blinding personal information other than suspected criminals’.
‘Secret chats’ cannot be checked.
• In October 2014, the monitoring issue of KakaoTalk first arose.‘Telegram’ gained attention as a substitute
messenger of KakaoTalk at the time and the number of domestic users reached over 1 million in a short period of time.
• The monitoring issue of KakaoTalk arose again this year, but ‘Telegram’ did not gain attention.
• With KakaoTalk taking its place as the major messenger in Korea (MAU 38 million), there does not seem to be
an appropriate substitute for KakaoTalk.
• In the past, major players flooded the app-centered mobile markets but these days there is a one-against-all
phenomenon occurring.
4
Source : October 11th, 2015. Mobi Inside [Jae-Suk Yoo’s twisted views] The 2 meanings behind ‘KakaoTalk monitoring’ season 2

6. Kakao’s Growth Stands at a Stagnation Point The meaning of Kakao Taxi Black’s release1
Kakao: release of Kakao Taxi Black
About 100 fine
quality vehicles
200 drivers who received
professional education Fine quality mobile call
taxi service
passenger greeting, getting on,
off guidance, equipping water and
cellphone charger within vehicles
Kakao Taxi Black KakaoPay
• Kakao Taxi Black uses the automatic payment module ‘KakaoPay’,
which was developed by Kakao, for payment.
• In September 2014, KakaoPay was released. KakaoPay gained 5 million users
within 1 year and reached a total of 10 million payments.
• Kakao is said to use KakaoPay as its automatic payment module as a fine quality
branding strategy of Kakao Taxi Black.
5
Source : October 21st, 2015. Mobi Inside [Jae-Suk Yoo’s twisted views] The real reason behind Kakao’s decision for fine quality taxis

7. China’s Strong Influence on the Korean Gaming Market2
97,197
2013
-0.3%
A
2.6%
6.1%
4.3%
2014 2015(E) 2016(E)
99,706
105,788
110,000
54,523
59,261
44,028
23,277
16,618
936
2013 2014 2015(E) 2016(E) 2017(E)
8,922
1,630
[Korean gaming market size and growth rate (Unit: 100 million KRW)]
[Market size of Korean gaming areas (Unit: 100 million KRW)]
Market size
Growth rate
Online games
Mobile games
Internet Cafes
Video games
6Source : October 22nd, 2015. The Korean game white book of 2015, Korea Creative Content Agency

8. China’s Strong Influence on the Korean Gaming Market Sales Increase of Chinese mobile games2
Webzen Inc.
Sept. MAU: 142,026
Netmarble Games
Sept. MAU: 404,413
EFUN Company
Sept. MAU: 165,011
NEXON
Sept. MAU: 41,077
NEXON
Sept. MAU: 46,075
[Chinese games within the top 50 market sales in domestic Google Play]
Mu Origin We Fire
What is the reason for the increase of Chinese mobile game imports?
Every Manage Chunryong Top of Tanker
Chinese mobile games are being imported not only by large gaming companies but also by mid-sized gaming
companies and recently listed mobile gaming companies.
• It is an effective way of business for distributing firms to import popular mobile games in the Chinese market
• There is a broader variety of mobile game genres in Chinese mobile games. A niche market can be thus targeted
in the Korean market through Chinese games.
• The Chinese mobile games' quality standard has been upgraded.
7Source : October 20th, 2015. etnews The never-ending Chinese games import fever… ‘fast and approved’
Source: App Ranker

9. Nexon and NC’s Beautiful Farewell(?) Nexon divests all shares of NC Soft3
2% (440
thousand shares)
13% whereabouts
not revealed
9.98%
Representative
Taek-Jin Kim
11.76%
National
Pension
Service
8.9%
NetMarble
Games
15.08%
NC Soft’s share structure
• Last January, within 9 months ever since the issue of company control arose between Nexon and
NC Soft, Nexon divested 15.08% of its NC Soft shares using off-time bulk dealings (block deal).
• Both companies plan to devote to their own strategies where Nexon strives for foreign market entry and
NC Soft, ‘Lineage Eternal’.
• Nexon gained about 605.1 billion KRW through the divesting of NC Soft’s shares.
Nexon plans to use this capital for foreign market entry such as the takeover of necessary firms.
• NC Soft’s representative Taek-Jin Kim gained 2% (440 thousand shares) of Nexon’s share and rose as
the largest shareholder.
8Source : October 23rd, 2015. ZDNet Taek-Jin Kim who rose as the largest shareholder of NC, strengthens business foundation

10. Korean SNS Usage Pattern How do other people live?4
24%
76%
55.5% 51% 47.1% 43.6% 39%
[SNS usage pattern]
[Contents most viewed on SNS(multiple response)]
upload self-written
texts or pictures
Funny texts/
humor/videos
Popular issues
and trends
Pictures of
delicious food/
restaurants
Pictures of friends/
acquaintances
Travel photography
view texts and
pictures uploaded by others
9Source : Market study company Macromi Embrain, 2000 age 19~59 people who have SNS usage experience

11. Korean SNS Usage Pattern SNS for work creates stress4
Others 15.5%
Kakao Talk
28.10%
Nate On 7.40%
Band 8.10%
Email 11.90%
Don’t
feel
stressed
48.7%
Feel
stressed
51.3%
28.90%
12%
24.40%
29.40%
34.20%
[SNS usage status for business use]
[Stress level regarding usage of
personal SNS for work]
[Reasons of stress regarding usage of
personal SNS for work]
• Businesses tend to utilize mobile devices as a
method of communication.
• Personal SNS are used for business purposes as
the in-house communication systems do not support
the mobile environment or due to budget restraints
in case of smaller sized companies.
• The usage of personal messengers in business
environment is causing stress to some workers.
Frequent alarms
Late hour
work messages
Invasion of
privacy
Company’s
messenger
Confusion of
personal messages
and work messages
10Source : EstSoft, ‘Study of work related communication status within companies in 2015’ (total of 1,632 workers over age 20)

12. KM report
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sign-up
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11

13. India and China Feeding Google and Apple
The Overwhelming Size of the Chinese Gaming Market
Alibaba’s Aggressive Measures
1
2
3
Global Issues
13

14. India and China Feeding Google and Apple SNS for work creates stress1
0
50
100
150
200
iOS App Store Google Play
90%+
0
50
100
150
200
iOS App Store Google Play
80%+
Global app sales per stores
3rd quarter of 2015
• As first-time smartphone users are increasing in emerging markets such as India, Indonesia, and Vietnam,
the number of downloads for Google Play is continuously increasing. As the amount of smartphone shipping is
significantly increasing especially in India, the number of downloads for Google Play is also increasing.
• The Apple app store’s sales is increasing in China since the release of iPhone 6 and iPhone 6 plus.
Research showed that social video apps are especially popular in China.
15
Source : October 19th, 2015. Asia Economics, “Google Play for downloads, Apple app store for sales"
Source: App Annie, 2015 3rd quarter App Annie index report

15. The Overwhelming Size of the Chinese Gaming Market Game sales ranking in different countries2
6,406,296,000
1,401,587,000
(21%)
325,128,000
(5%)
126,818,000
(1%)
49,750,000
(0.7%)
740,038,000
(24%)
290,534,000
(9%)
115,975,000
(3%)
41,735,000
(1%)
$22,227,194,000
(24%)
$ 21,962,491,000
(24%)
$ 12,328,860,000
(13%)
$ 4,022,366,000
(4%)
3,077,857,000 $91,252,478,000
China
Japan
USA
Korea
Global
• The market studies company Newzoo revealed the rankings of global game sales.
• China was ranked as 1st place. Japan and Korea ranked rather high despite their comparatively low population.
Population Internet Population Game Sales(US dollars)
19
Source: Newzoo

16. The Overwhelming Size of the Chinese Gaming Market Chinese consumers’ smartphone purchase patterns2
23%
40%
42%
4%
9%
19%
37%
24%
15%
7%
12%
9%
4%
9%
1%1% 1%
3%
1% 1%
3%3% 3%
2%
0% 0%
2%
Apple
July ‘13 Dec ‘14 Oct ‘115
Samsung Xiaomi OPPO Meizu VIVO HTC LenovoHuawei/
Honor
[Chinese consumers’ smartphone purchase intention]
• According to Morgan Stanley’s study on Chinese consumers’ smartphone purchase intentions,
there was a rise for Apple and Huawei while there was a drop for Samsung and Xiaomi.
• Chinese brands are showing strength in the smartphone market for supply and
mid-low price smartphones. Major companies include Lenovo, OPPO, VIVO, and ZTE.
• According to related officials, there are over 1,000 types of smartphones used in China and thus phone
correspondence and QA must be taken into careful account when developing games.
20
Source : October 15th, 2015. Itcle Morgan Stanley: Chinese consumers’ smartphone purchase intention, rise for Apple and Huawei and drop for Samsung and Xiaomi

17. Alibaba’s Aggressive Measures The largest M&A in the Chinese internet area3
Meituan Dianping
• The two Chinese social commerce firms ‘Meituan’ and ‘Dianping’, that Alibaba and Tencent invested in
accordingly, have decided on a merge.
• The two companies’ decision seems to be in order to gain market power in the Chinese O2O business in
which competition is growing fiercely.
• The two companies’ merge is thought to be the largest scale this year in terms of the Chinese internet area.
• The Chinese social commerce market is expected to be reorganized into a two-sides-competition structure
between the alliance of Alibaba, Tencent against Baidu, after the merging of Meituan and Dianping.
• Company value: 11 billion dollars
(about 12 trillion 700 billion KRW)
• Chinese social commerce market
share: 52%
• Alibaba’s shares: 15%
• Company value: 4 billion dollars
(about 4 trillion 600 billion KRW)
• 1st place ranking of Chinese restaurant
evaluation app
• Tencent’s shares: 20%
Alibaba and Tencent join hands to invigorate O2O business
21
Source : October 8th, 2015. Korean Economics. Alibaba and Tecent joined hands in social commerce

18. Alibaba’s Aggressive Measures Securing video contents3
• Alibaba decided to purchase the total shares of Yokutudo, China’s largest video site, at 5 trillion KRW.
• Alibaba had taken over 16.5% of Yokutudo’s shares in 2014, and is currently a
large shareholder with a total of 18.5% shares.
• Using the 500 million users of Yokutudo and fine quality video contents,
Alibaba plans to create synergy through connections with business such as e-commerce,
cloud, and movies within the group.
• Movie Production company Alibaba Pictures, affiliated with China’s Alibaba group, signed a
contract with the Korean movie ‘Real’ for investments and distribution in China.
• Alibaba Pictures is currently increasing its working area through copyright purchases of popular movies,
dramas, and web novels within and outside of China as well as investments and productions.
• Alibaba Pictures gained attention when it chose ‘Mission Impossible 5’ as its first investment target
after its foundation. Movie star Soo-Hyun Kim, the lead actor of the movie ‘Real’, is a Hallyu star and the
anticipation towards him as well as his influence in China is thought to be the reason behind
Alibaba Pictures’ investment.
Alibaba takes over the total shares of China’s largest video streaming site ‘Yokutudo’
Alibaba Pictures signed an investment contract with the Korean movie ‘Real’
22
Source : October 12th, 2015. Chungang Daily. China’s Alibaba Pictures signs an investment for Soo-Hyun Kim’s movie ‘Real’
October 20th, 2015. Platum. Major changes in the Chinese video business…. Alibaba decides to take over China’s largest video service ‘Yokutudo’

19. October 11th, 2015. Mobi Inside [Jae-Suk Yoo’s twisted views] The 2 meanings behind ‘KakaoTalk monitoring’ season 2
http://www.mobiinside.com/kr/index.php/2015/10/11/kakaotalk-issue/
October 21st, 2015. Mobi Inside [Jae-Suk Yoo’s twisted views] The real reason behind Kakao’s decision for fine quality taxis
http://www.mobiinside.com/kr/index.php/2015/10/21/why-kakao-taxi-black/
1. Kakao’s Growth Stands at a Stagnation Point
October 20th, 2015. etnews The never-ending Chinese games import fever… ‘fast and approved'
http://www.etnews.com/20151021000297
October 22nd, 2015. The Korean game white book of 2015, Korea Creative Content Agency
http://m.game.mk.co.kr/news/articleView.html?idxno=201501008709
2. China’s Strong Influence on the Korean Gaming Market
Domestic Issues
23

20. October 23rd, 2015. ZDNet Taek-Jin Kim who rose as the largest shareholder of NC, strengthens business foundation
http://www.zdnet.co.kr/news/news_view.asp?artice_id=20151023181847
3. Nexon and NC’s Beautiful Farewell(?)
October 8th, 2015. Herald Corp ...Business survey index reveals 51% of workers agree " Messengers cause stress"
http://news.heraldcorp.com/view.php?ud=20151008001051&md=20151011003443_BL
October 18th, 2015. Yonhap News "Peephole" SNS... "We like observing better than uploading text&photo"
http://www.yonhapnews.co.kr/bulletin/2015/10/17/0200000000AKR20151017003700033.HTML?input=1195m
October 20th, 2015. Mobi Inside [Mr.Shim's MOAI] Korean SNS usage pattern (Infographic)
http://www.mobiinside.com/kr/index.php/2015/10/20/korea_social_network_service/
4. Korean SNS Usage Pattern
Domestic Issues
24

21. Global Issues
October 19th, 2015. Asia Economics, “Google Play for downloads, Apple app store for sales"
http://m.asiae.co.kr/view.htm?no=2015101910062553012&aceRef=http%3A%2F%2Fwww.ozmailer.com%2Foele%2Fut.#cb
1. India and China Feeding Google and Apple
October 14th, 2015. Game Donga [Chinese Dream] The vicious development of Chinese mobile game market,
what about their smartphones?
http://game.donga.com/81934/
October 15th, 2015. Itcle Morgan Stanley: Chinese consumers’ smartphone purchase intention,
rise for Apple and Huawei and drop for Samsung and Xiaomi
http://game.donga.com/81934/
October 17th, 2015. Hankyung Evolution of Chinese game market, beats US and jump to no.1 sales
http://www.hankyung.com/news/app/newsview.php?aid=201510170504v
2. The Overwhelming Size of the Chinese Gaming Market
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22. Global Issues
October 8th, 2015. Korean Economics. Alibaba and Tecent joined hands in social commerce
http://www.hankyung.com/news/app/newsview.php?aid=2015100844521
October 12th, 2015. Chungang Daily. China’s Alibaba Pictures signs an investment for Soo-Hyun Kim’s movie ‘Real’
http://news.joins.com/article/18837599
October 20th, 2015. Platum. Major changes in the Chinese video business…. Alibaba decides to take over
China’s largest video service ‘Yokutudo’
http://platum.kr/archives/47866
3. Alibaba’s Aggressive Measures
26

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