Korean digital content providers venture into SE Asia
Jack Loo
9.15.2003

Monday, September 15, 2003 Korean digital content providers venture into SE Asia By Jack Loo Over 22 telcos, content developers and online gaming operators in the region met up with 10 of Korea’s up and coming digital content providers at a business event held at Swissôtel The Stamford last month.

These companies, which included Singtel, Celcom and Orange Hutchison, were mainly from Singapore, Malaysia and Australia. As for the Korean companies, they comprised of SunnyYNK Inc, HanbitSoft, Inc and MobileGame Korea Corp, among others.

Mr Bob Chua, CEO, iPark Singapore, which was the organiser of the event, described the event as an opportunity for these companies to find out how they could collaborate together.

“Korea has emerged to become a major player in the wireless sector, offering a spectrum of content-rich solutions, so companies in the region have a great deal to benefit from business alliances with the Korean companies,” said Mr Paul Choo, Senior Manager, Investments, Economic Development Board Ventures (EDBV) Management Pte Ltd.

EDBV Management is the venture capital and private equity investments arm of EDB. It has invested in numerous wireless Internet and technology projects in Asia as well as Europe.

But given the fact that business conditions in Singapore are not very good already, will these Korean digital content providers edge out the local players in the long run?

According to Mr Toh Khai Hwa, President, Southeast Asia, Orange Gum Pte Ltd, a mobile content provider based in Singapore, whether or not there is increased competition is not the issue. Rather, local players should continually seek to adapt and offer value-added services.

“If you have nothing to counter the competition, then you would not be able to survive in the market,” said Mr Toh.

As for iPark’s Mr Chua, he thinks that local companies can take on the role of distributors or resellers for the Korean digital content as a value-added services.

“Another role they can take on is to be a co-developer to customise Korean digital content for local markets,” Mr Chua added.

In fact, EDBV’s Mr Choo feels that interaction with Korean providers could generate long-term benefits like making local players more competitive, thus strengthening the local industry.

“Our local players pale in comparison to the Koreans, but by seeing what their Korean counterparts are doing, they can examine their operations and think of how to buck up,” said Mr Choo.