Index 1. Korean Mobile market Overview 2. Korean Mobile Trend 3. Penetration Strategy for Korean market 4. NEOWIZ as Mobile Publisher in Korea Q&A

1. Korean Mobile market Overview

Korean Mobile Market Overview US CHINA ENG KOREA JPN GER FRA CAN SPAIN million Numbers

Korean Mobile Market Overview

US KOREA ENG FRA GER JPN … AVG of World (%) Smartphone Penetration Rate As of JUL 2012

Korean Mobile Market Overview

Smart phone Internet access Mobile web Mobile app Web Wifi  Korean mobile users are more ‘MOBILE’ dedicated  Korea has good network infrastructure with ‘Unlimited data service’  Korean mobile users are more ‘MOBILE’ dedicated  Korea has good network infrastructure with ‘Unlimited data service’ * Source : KISA Smart phone Access Network

Korean Mobile Market Overview * Source : KISA Down loaded mobile apps (multi select, %) Number of Installed APP Number of Frequently used APP Game Comm Music Utility Map Weather News Video Shopping Stock Life TV Education eBook office

Korean Mobile Market Overview Q Game contents usage survey Mobile game Online game (client + web) Online game (client only) Online game (web only) Arcade game Console game Board game Web hard/P2P game Software buying Never * Source : Korea Creative Contents Agency Have ever played!

Korean Mobile Market Overview * Source : Korea Creative Contents Agency Q Game playing time (min) Online game (client) Software Online game (web) Board game Video Console game Web hard / P2P game Mobile game Arcade game Others

Korean Mobile Market Overview * Source : Korea Creative Contents Agency Q Game contents Buying rate Mobile game Online game (client + web) Online game (client) Online game (web) Arcade game Video Console game Software buying Board game Web hard / P2P game Never Have ever bought!

Korean Mobile Market Overview Major Application Usage Time (Min/Day) game SNS news entertainment etc Game + SNS  48%  Social Game Insight 1

Korean Mobile Market Overview ‘Mobile + Web‘  Cross platform ArcadePC Con- sole Mobile Global Game Growth Expectation per Genre Insight 2

2. Korean Mobile Trend

Korean Mobile Trend KAKAO TALK 36,000,000 registered users in Korea 63,000,000 registered users worldwide Each users’ average KAKAO friends number 93.5

KAKAO TALK  iOS Top 30 Download Rank in Game category ( ) Korean Mobile Trend

KAKAO TALK  Android Top Daily Active User Rank in Game category ( ) 1.Dragon Flight 2.Any pang 3.Candy pang 4.I love coffee 5.Korean draw something 7. Puzzle zoozoo Casual Killing time Friendly Casual Killing time Friendly Korean Mobile Trend

KAKAO TALK  Simple & Easy & Playing together & Competition Korean Mobile Trend 1heart after 8min Heart for gift Ranking among friends 1min/PLAY Dragon item with strong force 5mil RMB/DAY (peak) Any pangDragon Flight

T STORE T store, bigger market share over Apple and Google market ※ Source: SK estimation Korean Mobile Trend

T STORE 17.3M Accumulated subscribers Accumulated Downloads Developers Business performance as of October 8, 2012: 988M33K Registered Apps & Contents 0.37M Monthly Transactions US$ 12M Monthly Active Users 9M Korean Mobile Trend

Korean Major Mobile platform T STORE Paid Downloads : Game > VOD > Utilities > Music … Free Downloads : Utilities > Game > Fun > Education …  Game (w/ In-Game Purchases) is the most profitable category, whereas utility (w/ In-App Ads) records the most downloads Paid DownloadsFree Downloads

Korean Major Mobile platform T STORE Game is the most preferred and profitable application. ※ Source: SK Data (Oct 2011)

T STORE Carrier-billing 2011 Achievement  Stand-alone - D/L: 183,842 - Revenue: U$ 568K  In-App Purchase - D/L: 278,090 - Revenue: U$ 483K Examples of Global Games (Sep 18, 2012) 165,837 D/L 1,000 KRW (U$1) May 22, 2012 Gameloft 348,064 D/L 3,000 KRW (U$3) March 18, 2011 RealNetworks AP 649,890 D/L Free July 14, 2011 RealNetworks AP 141,132 D/L 2,200 KRW (U$2) July 12, 2011 GREE 1,131,684 D/L Free July 25, 2011 GREE 14,658 D/L 1,100 KRW (U$1) July 11, 2012 Rovio 97,111 D/L 1,200 KRW (U$1) Nov 11, 2010 Strastar 97,369 D/L 5,000 KRW (U$4) July 28, 2011 Joymoa 43,608 D/L 5,000 KRW (U$4) May 24, 2012 Gameloft 36,341 D/L 5,000 KRW (U$4) Dec Gameloft Korean Mobile Trend

3. Penetration Strategy for Korean market

Penetration Strategy for Korean market  Good brand Easy to memorize English is acceptable  Cultural translation Ordinary expression Natural feeling  Easy tutorial User friendly Detail explain  Local SNS KAKAO Facebook  Simple UI  3D or qualified graphic design Good network infra No concern of file size 1. Localization

Penetration Strategy for Korean market  Apple store  Telecom market T store Olleh store U+ store  Google play  KAKAO TALK 2. Multi Channeling iOS Android

Penetration Strategy for Korean market  Local payment Different SDKs  Minimized version Unified payment SDK Fast update Frequent communication with users  Cross border issue Local account tax Income transfer  Local Operation SNS Promotion / Target marketing PR CS  Synergy User pool Cross selling 3. Partnership

4. NEOWIZ as mobile publisher in Korea

NEOWIZ as Mobile publisher in Korea

RPG SHOOTING CASUAL WEB GAME SPOR TS  Online Game lineup: Develop and publish 45+ titles Expanding both locally and internationally  Game portal Pmang.com : 6 million monthly UV, 25 million RU  #1 Korean game publisher: presence in 49 countries  2011 revenue: $660 million

NEOWIZ as Mobile publisher in Korea Representing Products  Mobile Social Platform  High Quality Applications  10mil registered users  Covering all major platforms

NEOWIZ as Mobile publisher in Korea  Mobile Game lineup: Develop and publish 20+ titles globally 欢乐王国 逆转三国

NEOWIZ as Mobile publisher in Korea TOGETHER WE CAN MAKE GREAT SUCCESS STORY THANK YOU