Kunlun offers $46m fund to Korean developers

Chinese online game company Kunlun is partnering with the Korean government to create an investment fund for developers.

According to a report on Korean game site This Is Game, the fund will be worth $46 million. The money will be provided by Kunlun, the government, and several private investors.

Kunlun Korean was established in December 2010, with its debut game, K3 Online, launching last month. It has attracted more than 100,000 players, with another 100,000 expected to join by the end of August.

"The reason for having the investment fund only in Korea is that we recognise Korean developers' capabilities and know-how," said general manager MinGoo Kim.

"We believe that games that succeed in Korea would also experience success abroad, too, and the Korean market deserves its value. Moreover, we thought it would be the best foundation for future global markets we are aiming for."

Kunlun is the second biggest online gaming company in China – behind Tencent – with a market share of 20 per cent and $187 million in annual revenue.

Kunlun Korea intends to launch two more games this year, with another two in 2012 depending on the performance of its existing titles. All games developed using the fund will be distributed through Kunlun's online platform, Koram Game.