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| An illustration of Cookie Run: Kingdom, a game developed by Dev Sisters / Korea Times file |
By Lee Kyung-min
Shares of local game companies soared, some by as much as over 20 percent, Tuesday, a day after the Chinese government allowed several Korean games to be sold in the country, according to industry officials.
The latest decision by the Chinese government followed a similar one in December 2022, when leading local players were allowed to provide service there after years of slowdown due to a Chinese government-led retaliation campaign against Korea. The sentiment was triggered and sparked largely by three-way diplomatic friction over the deployment on Korean soil of a U.S. Terminal High Altitude Area Defense (THAAD) missile defense system against short-, medium- and intermediate-range ballistic missile threats. This according to some market watchers is an indication that the anti-Korea sentiment in China is easing rapidly, helping expand the presence of local firms there.
According to Korea Exchange, shares of Dev Sisters soared to an intraday high of 56,300 won ($42.96), Tuesday, up over 21 percent from a day earlier.
Nexon Games' share price peaked at about 15 percent, while Netmarble, Krafton and NCSoft all hit intraday highs with between 3 percent and 8 percent increases.
Local brokerages maintain an upbeat outlook for growth of game shares in the months to come.
Daol Investment researcher Kim Ha-jung said game shares will remain attractive, since their months of slowdown was due mostly to China's licensing ban issue.
"The low share prices could find a breakthrough, if the licensing ban issue is resolved in the coming months," Kim said in a report released Tuesday.
Mirae Asset researcher Lim Hee-suk said in a February report that Netmarble is expected to expand its presence in China, buoyed by the launch of new products.
"Releases of new products backed by target analysis will boost the growth momentum for the firm to generate strong sales in the Chinese market," the report said.
"The momentum will continue until after the launch of Second Country in China."
SK Securities and Hanwha Investment & Securities also said the firm share prices will go up. SK said the price will touch 68,000 won, while Hanwha said 72,000 won.
Dev Sisters closed at 49,550 won, Tuesday, up 12 percent from the previous day. Netmarble closed at 62,400 won, up 6 percent from the day before.
Krafton ended at 169,200 won, up 2.42 percent from a day earlier. NCSoft closed at 379,500 won, up 0.8 percent from the day before. Nexon Games' share price ended at 16,700 won, up 13 percent from the previous day.
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