January 13, 2017

泥中蟠龍's Game愛歌 [A love song for games of the dragon waiting for an opportunity] An employee is not the owner of the company

泥中蟠龍's Game愛歌
[A love song for games of the dragon waiting for an opportunity]
 
An employee is not the owner of the company
 
A recent column by Monn Yoo-Seok, an associate judge at the Seoul Eastern District Court, has become a hot issue on the Internet. The judge's story titled 'Letter to all general managers in the country' is about workers' job stress from their boss. In short, "Don't make it a working dinner.", "Don't speak gibberish.", "Don't blame for the mistake on an alcoholic drink after hitting on a female employee while drinking." etc. One of the most impressive lines was "Don't say that 'Back in my day... (or) When I was your age...' kind of thing" among satisfying pieces of advice which made them feel so good. He means that the know-it-all should beef up his resume to join a corporation in this day and age.
 
I'd like to talk about how to run an organization of the video game developer which is one of South Korea's companies. Lately, I had dinner with the CEO, whom I'm close with, of the video game production. The employer told me that, to present a clear vision, he has required employees to be actively involved in their work and develop them further by focusing on their mission and he used to emphasize that corporate development will give them good opportunities. I earnestly asked him not to say it like that expressing my disappointment at his attitude. Most business leaders want their employees to put their hearts and soul into the work like they are the owner of the company. As I told him, representatives should not force employees to have unconditional ownership mentality because they are not the owner of the company but only workers. While the boss delivers a long-winded speech, the employee has nothing to do but think that he makes him annoying because he needs to work overtime to catch up on lost time. It can be helpful for a few workers who have more engaged with their work. Staff with employee ownership probably would voluntarily work very hard to become successful or start their own business later anyway. Why do normal employees, who perform well in their work to be paid regularly, worry about the company like the boss and spontaneously work late? It's brainwashing under the pretext of sharing his vision of developing the company, which reminds me the principal's speech lacked sincerity in my school days.
 
Sometimes, executives don't think that their junior employees also evaluate them. Most workers don't respect the boss who is too preachy and the leader with such management style isn't very highly regarded due to ineffectiveness. Nobody can force employees to have an ownership mentality because it isn't mandatory. You are not going to get high grades unless you stop being giving them the lectures. I guess somebody thinks that I can say like this because I haven't run a business. However, It's a lesson from a bitter experience since my video-game company went bankrupt. If someone is forcing his staff to have an ownership mentality, please remember that it might bring your company to an end.
 
 
This is from Kyunghyang Games column by 泥中蟠龍 since September 2013.
(http://www.khgames.co.kr)
 
Translation by Kim Ki-hui

December 11, 2016

泥中蟠龍's Game愛歌 [A love song for games of the dragon waiting for an opportunity] An expert on video-game investment is needed

泥中蟠龍's Game愛歌
[A love song for games of the dragon waiting for an opportunity]
 
An expert on video-game investment is needed
 
Today, I‘d like to talk about the field, the video game-related industry in part, where I'm working now. I've mentioned investing in the video-game market many times, however, I want to deal with the sector for video-game investment itself.
Recently, one of the CEOs of video game developers asked me how many video game -investment experts are working in the local venture capital industry. He seemed a little shocked by the unexpectedly low figure when I answered that it's probably about 10-20 experts.
 
The total number of workers in the domestic venture capital industry is approximately 1,500 people. And the number of working-level venture capitalists, except executives, is expected to reach around 700-800. This figure seems very small, given that the number of video-game investment is about 7-10% of the overall investment. Furthermore, the number would be much lower, if it's limited to the private equity investors with video game careers. Why is the number of video game experts, especially VCs from the video game industry, in the national venture capital industry so low?
 
Korea's video game industry was born only two decades ago. Thus, it hasn't deepened its knowledge with academic theories with insufficient educational institutions and relatively a small number of systematically educated employees are working in the industry. The world of investment is the last field to be developed in the industry. An investor has to understand the industry based on its theories and practices and figure out industry-wide capital flows. So only a specialist can invest in it. The reason there is more than twice the video-game industry's investment money in the local audiovisual industry with less than half the size of it and more than three times the former audiovisual experts in the venture capital industry is caused by the relatively long history of Korea's audiovisual industry. It has helped the stable ecosystem of the professional audiovisual industry including from video production and distribution to investment.
 
The domestic video game industry is a burgeoning market. New firms are listed on KOSDAQ every year and they have continued to grow. Keeping sustained and stable investments in new games and making new investments with a high Return on investment (ROI) is very important to continue growing. As I mentioned earlier, it takes a long time to nurture an investment expert who has enough working experience and knowledge not only on the development and distribution of the video game but also investment work as a VC. Talented professionals will help to form the basis of the business ecosystem between the video game industry and the investment industry.
 
 
This is from Kyunghyang Games column by 泥中蟠龍 since September 2013.
(http://www.khgames.co.kr)
 
Translation by Kim Ki-hui

December 01, 2016

泥中蟠龍's Game愛歌 [A love song for games of the dragon waiting for an opportunity] Quo Vadis? Where is the global gaming industry going?

泥中蟠龍's Game愛歌
[A love song for games of the dragon waiting for an opportunity]
 
Quo Vadis? Where is the global gaming industry going?
 
I wrote about U.S. interest rates and its influence on inward investment in South Korea a couple of weeks ago; American investors will leave for the States as the U.S. interest rates go up. And recently, Donald Trump was elected the 45th president of the United States, beating his strong opponent Hillary Clinton. I don't like to mention who the better leader for America is. I don't know that much about him and I can't explain the difference between the former presidential candidates just in a few lines. However, It's predictable that the United States will shortly raise its key interest rates according to his presidential election pledges regarding economic policy. It can be bad news when it comes to investment in the national gaming industry.
 
The U.S. president-elect made his support of a weak dollar blaming the Federal Reserve. The flow of cross-border investment depends on the U.S. dollar. Many local game developers are highly regarded for their technical skills and production capabilities, however, they seem relatively less competitive in the global market compared to made-in USA or England products. In other words, they are undervalued to their rivals in Europe. European game makers will have chances to enter overseas markets and exchange fluctuation will lower their corporate values. Many foreign investors will prefer to choose the European companiesthe better one at the same price, to communicate effectively.
 
Besides, China's economic retributions are growingly visible throughout Korea's cultural contents including movies, K-dramas, K-pop, etc. since the Park Geun-Hye administration announced the deployment of the THAAD missiles to South Korea. China has stepped up its sanctions against South Korea more than ever beforeincluding stricter sanctions on local video content, which means a definite sign that China will impose new sanctions on domestic video games. Amid heating competition in Korea's video game market, the Chinese mobile game market has been a very good alternative for national game developers for a recent couple of years. It means that the domestic game makers will lose their market.
 
I don't want to discourage local game studios from staying in Korea because the domestic video game industry is at risk. They need to find the causes of the sudden change in the global environment and should cope with it in advance. Now the local game developers need to study hard and learn more about the rapidly changing world situation. It's the right time for them to establish a niche in the international market with the aims of globalizing their Korean-made video games. They should not be contained within the narrow domestic market where thousands of developers are competing with each other.
 
 
This is from Kyunghyang Games column by 泥中蟠龍 since September 2013.
(http://www.khgames.co.kr)
 
Translation by Kim Ki-hui