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Nintendo Establishes Subsidiary In South Korea

June 30, 2006 | By David Jenkins
June 30, 2006 | By David Jenkins
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More: Console/PC

According to a report by the Asia Times Online, Nintendo of Japan has announced plans to establish a local affiliate in South Korea, in an attempt to expand its market presence in the country.

Nintendo�s board of directors has called for a local firm to be set up on July 7th as a wholly owned subsidiary using an initial investment of 25 billion won ($26 million). The subsidiary will be located in capital Seoul to help increase sales for the Nintendo DS and prepare the way for the forthcoming Wii.

The company�s products have previously been sold by local games distributor Daiwon CI, but Korean consumers have complained at a lack of after sales support � usually one of Nintendo�s fortes elsewhere in the world � and a lack of Korean language support.

Although extremely active, the South Korean video game industry is largely dominated by online PC products, with consoles usually occupying a secondary importance - though this is gradually changing, especially with high broadband penetration in the country and next-gen consoles using connectivity extensively.

Thus as a result of its size and increasingly large developer community, all three console manufacturers have shown increasing interest in the market lately, as have many publishers � with Activision announcing a new Seoul office last week, and Sony Computer Entertainment Korea developing and publishing a number of PSP and PS2 titles exclusively for the South Korean market.

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