PC bang Inc.: The Culture and Business of PC bangs in Korea

Abstract:     
In the world of online gaming world, South Korea (henceforth Korea) is undoubtedly the Mecca. With a vibrant burgeoning industry fuelled by the mainstream position of gaming in urban everyday life, Korea has gained much interest from the global gaming world. One of the dominant phenomena associated with the rise of Korean online gaming is unquestioning the PC bang (PC room).

In this paper, I will explore the culture and business of PC bang in Korea. Once just a convenient spot for high-speed connection, the PC bang has become a space for facilitating and nurturing online gaming cultures. This paper will address the two central characteristics of PC bang that have ensured its success. Firstly, the paper will explore the social, cultural and economic dimensions of the PC bang as a space that nurtures the negotiation of offline and online relationships around online gaming cultures in Korea. Secondly, the paper will then discuss the role PC bangs play in the emergence of massively multi-players online role-playing games (MMORPG) as a dominant game genre for Korean players.

The rise and success of Korean online gaming through PC bangs is not just socio-cultural but, rather, linked into highly organized business collaborations and coordination between PC bangs and game publishers. A specialized pricing policy for PC bangs - differing from an ordinary flat subscription - has made a robust and vibrant business environment both for game publishers and PC bangs. However this could all be part of the past. Recently, transformations in the industry--most notably the introduction of a micro-payment business model of free-to-play online games--could be read as the demise of game publishers and PC bangs synergies. Will this modification undermine the pivotal role of the PC bang in Korean gaming cultures and industry?

Keywords: PC bang, Korean online games, The Starcraft, The Lineage

JEL Classifications: L86, Z10

Working Paper Series