NHN Corporation, a South Korean entertainment conglomerate with total assets of more than US$2.4 billion, announced on Friday a partnership with US-based Mysten Labs, developers of the Sui blockchain, to launch an on-chain game planned for 2024, despite South Korea's ban on all games related to blockchain. In a press release on Friday, Mysten Labs said the Sui blockchain is well suited to support games, given its low fees, fast transactions and high scalability.
South Korea has the fourth largest gaming market in the world. According to a January report from the Korea Creative Content Agency, the company's annual revenue in 2021 was nearly 21 trillion Korean won (US$15.72 billion). Games that use cryptocurrencies or NFTs are prohibited in South Korea. The law is enforced by the Game Rating and Administration Committee and prohibits firms from encouraging speculative behavior by players through cashable rewards.
South Korean president Yoon Suk-yeol promised to lift the ban on P2E games during his election campaign last year. But he has yet to fulfill his promise. South Korean P2E game makers have released blockchain-based games overseas in hopes that the local ban will be lifted.
Image: The Cryptonomist