[Mobidays] KM-Report JUL, 2015 Here is the newest release of KM Report!! Also please subscribe through the subscription page inside. -The Mobile and Coffee-holic Korea -Korea in the Micro-moments Era -NEW TRENDS in the Mobile Advertisement Market

1. The Mobile and
Coffee-holic Korea
M Report August
Korea in the
Micro-moments era
NEW TRENDS
in themobile advertisement market

2. 2015/072015/062015/052015/04
2015/032015/022015/012015/12
Mobidays [KM Report] Article & Advertisement Contact : j3y_sj@mobidays.com
Mobidays is a specialized mobile marketing company,
making every effort to have proper understanding of mobile market and to activate mobile eco-system.
In order to do so, Mobidays established [Mobile Advertisement Research Institute: MARI] in August 2014
(blog.naver.com/mobidays01).
[Mobile Advertisement Research Institute: MARI] collects and studies domestic and overseas mobile
related information and issues ‘VEUM’ (Very easy understanding of mobile) a main column, and
‘KM report’ a monthly trend report.
KM report is a report based on insight and information articles such as domestic / overseas mobile
related investment news and market issues which provides mobile eco-system trend and issues.
We will keep working our best to release various and interesting news about mobile market in succession.
Thank you.
Mobidays Team

3. Domestic Issues Global Issues
1. Land of Opportunities, Digital India!
2. Uber’s Growth Pains!
3. Continental power! Chinese mobile
• China’s Takeover of the Mobile Gaming Market
• Understanding China in order to Advance into China
1
Index
1. Korea in the Micro-moments Era
• The "Smartphone-Skilled” Public
• Korean 20s’ Mobile Usage State
• Korean Workers’ Mobile Usage State
2. Mobile Game Market’s Current Address
• Increasing Playing Time of Mobile Games
• Encountering Routes of Mobile Games
• Enforcement on Stochastic Item Self- Regulation
3. O2O Services Being Absorbed into Daily Lifestyles
• Attempts to Introduce O2O
• Food Tech: Restaurant Business and O2O
4. Attempts to Secure Video Contents

4. 1
2
Domestic Issues
Korea in the Micro-moments Era
• The "Smartphone-Skilled” Public
• Korean 20s’ Mobile Usage State
• Korean Workers’ Mobile Usage State
2Mobile Game Market’s Current Address
• Increasing Playing Time of Mobile Games
• Encountering Routes of Mobile Games
• Enforcement on Stochastic Item Self- Regulation
3O2O Services Being Absorbed into Daily Lifestyles
• Attempts to Introduce O2O
• Food Tech: Restaurant Business and O2O
4Attempts to Secure Video Contents

5. S.Korea
88%
China
73%
Singapore
72%
USA
53%
Japan
35%
94% of Korean smartphone users = skilled users who have used smartphones for at least 12 months
60% 33% 6%
Korea in the Micro-moments Era
What is Micro-moments?
[Devices most used by Korean internet users when using the internet]
[mobile search rate per country]
A phenomenon in which people satisfy their desire to learn and discover new things,
search, and purchase items all through smartphones.
The “Smartphone-Skilled” Public1
?
3
Use smartphones
more often
Use smartphones,
computers, and tablets at a
similar rate
Source : Google, Consumer, Barometer
Use computers or tablets
more often

6. Videos 43.1 sec
Text 14.4 Paragraphs
Illustrations 17 slides
Pictures 10 slides
Infographic 9.3 slides
46%
42.4%
46%
42.4%
24.8%
T
[Research on Korean 20s’ mobile usage state]
[Mobile services preferred by 20s] [Most appropriate length of contents preferred by 20s]
Korea in the Micro-moments Era Korean 20s’ Usage State1
4Source: University Tomorrow Research Laboratory For the Twenties, KT Business and Economy Research Institute
(n=918 males and females in their 20s)
3hrs 44mins
When searching for information Naver 78.5%
When searching for latest issues Naver 59.2%
When networking with others KakaoTalk 78.0%
When killing time Facebook 40.0%
When searching for information on mobile Blog 43.0%
When need for mobiles is most desperate
When using public transportation 27.6%
When mobiles are used with
most concentration
Before going to sleep 26.5%

7. Smartphones
40.4%
Caffeine drinks
38.5%
Internet searches
35.2%
Cigarettes
26.4%
Alcohol
25.4%
SNS
22%
Internet Surfing
20.7%
Games
19.9%
Messaging
10.5%
Using Apps
7.8%
5Source: Employment Portal Saraminv
(multiple response, n=920)
Korea in the Micro-moments Era Korean Workers’ Mobile Usage State1
Daily average smartphone usage time for
workers who rely on smartphones : 4hrs
[Target of reliance for Korean workers]
[Smartphone features most used by workers]

8. Smartphones
96.5%
Tablet PC
15.2%
Male Female
Regular Cellphones
2.2%
[Mobile game usage rate
of Korean game users]
86.2%(n=1,293)
[Daily average mobile game usage time]
Weekday 75min ・ Weekend 94min
[Average mobile game usage time per use]
Weekday 37min ・ Weekend 56min
86.2%
63.7
67.4 69.3
29.7
19
0.3
57.6
34
30.3
1.6
6Source: Kocca, 2015.July Game users’ status report
Mobile Game Market’s Current Address Encountering Routes of Mobile Games2
[Mostly used areas of Mobile games ]
(Unit : % / 1+2 Ranking) (Overlapping responses)
Self-entetaining
games
Record renewal
games
Foster/growth
simulation games
Competition games Others
[Mobile game devices]
(Overlapping responses)

9. Google Play
69.7%
Kakaotalk
38.6%
AppleAppstore
21.1%
Cellular service
companymarket
12.9%
LINE
2.7%
Friends’
recommendation
Recommendation
message through
services such as
Kakao Talk
Direct Selection
through
Kakao Talk Games
App Store
Rankings
TV ads SNS Portal ads Game community ads
and newsletters
Male Female33.9
43.1
18.4
21
25.3
14.1
24.9
30.8 27.5
20.1
13.6 13.3 15
7
13.2
7.3
7
Mobile Game Market’s Current Address Encountering Routes of Mobile Games2
[Recently downloaded mobile games’ information obtainment route]
(Overlapping response, Unit : % )
[Mobile game download route]
(Overlapping response)
Source : Kocca, July, 2015.Game users’ status report

10. ?
8
Mobile Game Market’s Current Address
Game market enforces self-regulation on stochastic items!
K-iDEA, reveals self-regulation monitoring and certificate mark
Giving up on ‘stochastic items’ rather than self-regulation
Enforcement on Stochastic Item Self-Regulation2
Source : July 15th, 2015. etnews K-iDEA, reveals self-regulation monitoring and certificate mark
July 20th, 2015. Digital Times. Under the pressure of self- regulation, games without ‘stochastic items’ appear
What is stochastic item self-regulation?
It is a regulation which states that for youth games(allages, age12, andage15),
the probability of ‘stochastic items’ in each areas should be revealed and a warning message
should be included when ‘charged enchant (such as strengthening or synthesis) ‘ is carried out.
• K-iDEA(Korea Internet & Digital Entertainment Association) will start a self-regulation
monitoring process to ensure a stable settlement of stochastic item self-regulation.
• From August 1st, K-iDEA, through monitoring, will give certificate marks to companies
following the regulations and will reveal monthly/yearly monitoring reports.
• ‘Immortal Warrior’, a mobile RPG that Red Sahara developed, released a new server that
doesn’t sell charged stochastic game items.
• Nexon’s company nDoors’s mobile strategy game simulation ‘King Gwanggaeto’ did not
select a stochastic item service.
• It is an attempt to provide the game’s inborn fun through users’ skills and strategies.

11. 9
When users buy more than 10,000 KRW worth of products at the convenience store CU. They can use the ‘Booktake’
app to get their purchased products delivered. Delivery time is between 10~40 minutes.
Customers can order products on the Lotte.com online channel and pick them up at Lotte department stores,
Lotte mart, Lotte supermarket, 7-eleven etc.
Since last April, Lotte Supermarket is providing the ‘drive & pick’ service. Customers can order online then
pick up their products without having to exit their vehicles when they drive by the store with a car.
DaumKakao opened the Jeju Creative Economy Revolution Center in Jeju Island and announced their ‘silicon
beach’ construction plan.
DaumKakao is currently constructing a demonstration beacon in Dongmun Market which will allow customers
to shop using smartphones without the need of credit cards or wallets.
DaumKakao plans to connect art pieces with O2O in Jeju Island to support sales and distribution.
Moreover, beacons will be constructed at airports and major tourist sites in order to provide Jeju Island tourist
information and product discount coupons to foreign and domestic tourists in Jeju Island with a smartphone.
O2O Services Being Absorbed into Daily Lifestyles Attempts to Introduce O2O3
Source : June 25th, 2015. Korean Economy. Delivery apps expanded their markets and have become the ‘big hand’ in industry... like no other through investments and take-overs
June 29th, 2015. etnews. Order, pay, and even delivery through KakaoTalk... Jeju becoming a O2O heaven
Convenience store CU starts convenience deliery service with delivery brand ‘Booktake’
Lotte group provides smart-pick up service that emphasizes omni-channels
DaumKakao activates O2O in Jeju Island!

12. 출처 : 2015.06.23 해럴드경제 주문에서 배달까지 10분…O2O서비스‘끝없는 진화’ / 2015.07.20 platum 전문화 된 배달 시스템 구축 … 배달의민족, 배달 전문 회사 ‘두바퀴콜’ 인수합병 10
‘Yogiyo’, an app providing food delivery service, invested about 4.4 million KRW
to ‘Food Fly’, which delivers franchise restaurant foods.
Food Fly’ has its service limited to only Gangnam area in Seoul, plans to use the investment for service
area expansion, marketing, and technology improvement.
Through their investment, Yogiyo was able to achieve the chain stores of Food Fly.
Woowa Brothers Corp., which runs the delivery app, ‘BaeMin’, took over the delivery company ‘Dubakicall’.
Through this take-over, Woowa Brothers, was able to achieve their own human resources for delivery as well as
a more professional delivery system.
Woowa Brothers established a company named ‘Woowa Youths’ and began to run ‘BaeMin Riders‘ that
delivers not only foods such as chicken and Chinses food, but also food that weren’t available for delivery before.
‘BaeMin Riders’ that started in the Sonpa-Gu area last June, plans to expand their services to other major areas
in Seoul through the delivery system of Dubakicall.
O2O Services Being Absorbed into Daily Lifestyles Food Tech : Restaurant Business and O2O3
Delivery app Yogiyo invests about 4.4million KRW to Food Fly
Delivery app BaeMin takes over ‘Dubakicall’

13. 1 YouTube
2 DMB(Manufacturer+SmartDMB)
3 Naver Media Player
4 Afreeca TV
5 MX Player
6 BTV mobile
7 LG U+ HDTV
8 Today’s TV
9 KT Olleh tv Mobile
10 Daum TV Pot
1,973
1,006
529
336
283
227
206
184
172
171
11
Source: Nielsen Korea
Source : July 9th, 2015. Digital Daily. Terrestrial broadcasting terminated... no exiting of MobileIPTV observed
Attempts to Secure Video Contents Mobile Videos, Popular Contents!4
[Domestic smartphone video APP user status(June 2015)]
(Unit : 10,000 people)
Since mobile IPTV stopped airing terrestrial broadcasting, there was an increase in terrestrial broadcasting DMB app users.
Mobile IPTV service usage was expected to decrease after the termination of terrestrial broadcasting,
but no noteworthy changes could be observed.

14. Time of foundation: 2005 Main office: Paris, France
Monthly visitors (Year 2014): 128 million
About 300 million people view videos monthly
Videos provided in 18 languages and 35 localized versions
Dailymotion, that has about 128 million monthly users in Europe, with its online video streaming services,
is preparing to enter the Korean market.
Dailymotion is preparing to establish either a branch office or a separate corporation in Korea.
Naver is strengthening its content potentials in broadcasting contents, web dramas, web animations, 72 sec TV etc.
DaumKako added a social video service ‘KakaoTV’ to its mobile messenger, KakaoTalk.
DaumKakao plans to expand its KakaoTV services through its large number of users secured with KakaoTalk.
Naver plans to aim for foreign markets through its release of ‘celebrity personal life live broadcasting’ service ‘V’.
Naver is preparing to launch its mobile-focused video platform, ‘Play League’.
12
Attempts to Secure Video Contents Mobile Videos, Popular Contents!4
Dailymotion enters the Korean market!
Naver strengthens its video contents
DaumKakao expands its video market through KakaoTalk
Source : July 3rd, 2015. Money Today. ‘Daily Motion’, world’s 2nd largest video company, will enter Korea
July 6th, 2015. etnews Competition for contents between Naver and DaumKakao fierce

15. 13
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16. MAX Summit is where trend leaders in the mobile business
within the field of Gaming, Ad-tech, Social Media,
Commerce, Start-ups and Venture Capitals gather to
pioneer the path into the future.
Gain insights and maximize your imagination for the
future of the mobile eco-system.
URL : http://maxsummit.co/
E-mail : hello@maxsummit.co

17. http://maxsummit.coThe speaker list will be updated every week. Please check from the official website.

18. 16
1
Global Issues
Land of Opportunities, Digital India!
2Uber’s Growth Pains!
3Continental Power! Chinese Mobile
• China’s Takeover of the Mobile Gaming Market
• Understanding China in order to Advance into China

19. 17
Indian government announces ‘digital India’ to promote the IT industry
Prime Minister of India
Narendra Modi
The 1.2 billion people of India are all wanting
digital India that will lead to the digital highway.
It is hoped that by the year 2020 most of electronics,
such as cellphones and communications equipment that
India needs, will be made in India.
Source : July 2nd, 2015.Yonhap News India, this time ‘digital India’... 79 trillion KRW business investment plan
Land of Opportunities, Digital India! Full Support of Government and Industries1
Prime Minister Narendra Modi announced that by the year 2019, high speed internet connection, introduction of electronic
documents and electronic signatures, establishment of digital hospital systems that include telemedicine, installationof wire-less
internet repeaters in major areas, establishment of IoT research in stitutes will be completed in 250 thousand towns.
The Indian government plans to input about 18 billion dollars(about 20 trillion KRW) to the project above.
Indian industries announced investment plans worth 4.5 trillion Rupee(about 79 trillion KRW).

20. 1
2
3
4
China
India
USA
405
82
48
458
118
164
491
149 167
505
174 169
2014 2015(e) 2016(e) 2017(e)
18
[Smartphone sales projection by countries]
Reasons behind the fast growth of
the Indian smartphone market
(Unit : 1 million)
Low smartphone distribution rate to begin with
Expansion of the smartphone distribution network
Wealthier middle class consumers
Aggressive promotion of local smartphone brands
Source : July 2nd, 2015.Yonhap News India, this time ‘digital India’... 79 trillion KRW business investment plan
Land of Opportunities, Digital India! Steadily Increasing Mobile Sales1

21. 1,000
900
800
700
600
500
400
300
200
100
0
2012 2013 2014 2015 2016 2017 2018
12
25
60
137
292
501
778
(100 million Yen)
(Year)
1
19
[Indian mobile advertisement
market forecast]
Growth of Indian mobile advertising market
(Unit : 100 million Yen)
Source : Cyber Z
Number of mobile users switching from
pitcher phones to smartphones is increasing.
2Various mobile app services are being introduced.
3Advertisements through mobile are increasing.
Land of Opportunities, Digital India! Full Support of Government and Industries1

22. Uber 11%
20
[Chinese Taxi app market share]
Didi Kuaidi 78%
Uber announced that it would invest 1 billion dollars(about 1.1152 trillion KRW) in the Chinese market
in order to recruit drivers with subsidies. The Chinese company ‘Didi Kuaidi’ announced they would
invest 1.5 billion dollars(1.7 trillion KRW).
Uber announced a large-scale fund –raising plan that would ensure its survival against Chinese local companies.
However, as local companies(Didi Kuaidi) also announced large-scale fund input, the competition for
subsidies and marketing in the Chinese taxi app market is expected to worsen.
Daily average reservation: 300 million
Merge of Chinese taxi app companies
‘Didi Dache‘ and ‘Kuaidi Dache‘ in February, 2015
Investment from ‘Tencent’ and ‘Alibaba’
Daily average reservation: 100 million
Investment from ‘Baidu’
Uber’s company value : 40 billion dollars
(about 44.6 trillion KRW)
Uber’s Growth Pains! Subsidy Wars in the Chinese Market2

23. 21
New York city council members(Stephen Levin & Ydanis Rodriguez) suggested a law that would
limit the growth of the number of hired cars in order to analyze the effects of hired cars on
New York city’s traffic and air pollution.
Out of the 25,000 hired cars enlisted in New York, 18,000 cars are with Uber and thus industry officials
expect Uber’s growth will be hindered if the law passes.
Uber’s founder, ‘Travis Kalanick, was prosecuted without detention for violating the law related to
protection and use of passenger transport service and location.
Uber Korea is suspected of providing rent-car drivers with readers that would allow them to check
passenger locations.
The Canadian taxi industry filed for a 410 million Canadian dollars(about 365 billion KRW)-worth
compensation lawsuit against Uber.
According to the Toronto taxi industry, the Toronto taxi and limousine industry’s sales took a serious hit
due to Uber drivers’ illegal business such as driving passengers without appropriate licenses.
New York put a pause on the law when it was issued that it would limit jobs in New York.
However, it was announced that the law will be re-considered once additional analysis on traffic and
drivers is complete.
Uber’s Growth Pains! Trouble Between Government and Taxi Industry2
New York city council members pass for ‘Uber car limit law’?
Uber stands at the Korean court for violating positive law
Toronto taxi industry file for a compensation lawsuit against Uber

24. 78.4% 25.6 hrs
(0.5hr decrease in
comparison to last year)
(standard: 1 week)
22Source: 中国互联网络信息中心(CNNIC)
Continental Power! Chinese Mobile Gaming Market Current Status of the Chinese Internet Market
Chinese internet
distribution rate
48.8%
less than
middle school
education
36.5%
High school,
and 2-year college
education
36.5%
4-year university
education
11.8%
Percentage of 10~39 year old
internet users out of total
Chinese internet usage time
in first half of year 2015
Number of Chinese
internet users
668 million
Number of mobile
internet users
594 million
3
[Internet users’ percentage by academic background]

25. 38%
34%
2%
8%
6%
12%
2013 2014(e) 2015(e)
44
65
23
Source: Newzoo, Talkingdata
Size of American mobile games market at
6 billion dollars (about 6.8 trillion KRW)
(Unit : 100 million dollars)
Continental Power! Chinese Mobile Gaming Market China’s Takeover of the Mobile Gaming Market3
Global Googleplay
11.5 billion dollars
Chinese Android appstore
3.6 billion dollars
Android appstores other than China
1.7 billion dollars
Chinese iOS
2.3 billion dollars
Globalpitcherphones
700 million dollars
iO S other than China
10.3 billion dollars
Size of global
mobile games
market
30.1 billion
dollars
Size of globalmobile games market
30.1 billion dollars
[Global mobile gaming market forecast 2015 ]
[Size of Chinese mobile games market]
18

26. (Unit: %)
Baidu 39.85
35.55
23.58
16.44
5.54
4.17
360
Tencent
Wandurae
MM Market
Anji Market
Baidu
360
Tencent
Wandurae
MM Market
Anji Market
36.2 33 14.2 5.9 10.7
28 36.3 12 7 16.7
33.6 40.6 9.6 5.8 10.4
49.7 30 11.7 5.6 3
23.2 33.6 13.6 9.4 20.2
31.7 33.1 10.5 7.8 16.9
24Source : Industrial Trend of Content in China
Baidu and 360 platform’s influences turned out to be the strongest in the
Chinese mobile games market.
Ages under 24 and 25~30 turned out to be the main users of mobile games
in the Chinese market.
Continental Power! Chinese Mobile Gaming Market Understanding China in Order to Advance into China3
[Distribution of Chinese mobile
game platform users in 2014] (Unit: %)
[Distribution of Chinese mobile
game users’ age groups]
Under 24 25~30 31~35 36~40 over 41

27. June 24th, 2015. Nesis. Workers “rely on smartphones the most”
http://www.newsis.com/ar_detail/view.html?ar_id=NISX20150624_0013747658&cID=10401&pID=10400
July 2nd, 2015. Digital Daily. Korea is a ‘micro-moments’ country that satisfies its needs through smartphones
http://www.ddaily.co.kr/news/article.html?no=132079
July 2nd, 2015. Money Today. Korea’s mobile search usage rate at 88%... Highest in the world
http://news.mt.co.kr/mtview.php?no=2015070216575191315
July 17th, 2015. Asian Economy.Dailyaveragemobileusagetimeat‘3hrsand44mins’for20s
http://view.asiae.co.kr/news/view.htm?idxno=2015071710282843045
1. Korea in the Micro-moments Era
July, 2015. Kocca ‘Game users’ status report’
July 15th, 2015. Digital Daily. Keywords in the mobile market are ‘women’ and ‘30s’
http://www.ddaily.co.kr/news/article.html?no=132470
July 15th, 2015. etnews K-iDEA reveals self-regulation monitoring and certificate mark
http://www.etnews.com/20150715000325
July 20th, 2015. Digital Times. Under the pressure of self-regulation, games without ‘stochastic items’ appear
http://www.dt.co.kr/contents.html?article_no=2015072102100831102001
2. Mobile Game Market’s Current Address
25
Domestic Issues

28. 26
June 23rd, 2015. Herald Economy. 10 minutes from order to delivery... O2O services ‘endless evolution’
http://news.heraldcorp.com/view.php?ud=20150623000246&md=20150623110048_BL
June 25th, 2015. Korean Economy. Delivery apps expanded their markets and have become the ‘big hand’ in industry...
like no other through investments andtake-overs
http://www.hankyung.com/news/app/newsview.php?aid=201506257833g
June 29th, 2015. etnews. Order, pay, and even delivery through KakaoTalk... Jeju becoming a O2O heaven
http://www.etnews.com/20150628000086
July 20th, 2015. platum Professionalized delivery system established... BaeMin takes over delivery company ‘Dubakicall’
http://platum.kr/archives/43059
3. O2O Services Being Absorbed into Daily Lifestyles
July 20th, 2015. platum Professionalized delivery system established... BaeMin takes over delivery company ‘Dubakicall’
http://www.mt.co.kr/view/mtview.php?type=1&no=2015070212153428275&outlink=1
July 9th, 2015. Digital Daily. Terrestrial Broadcasting terminated.. No exiting of MobileIPTV observed
http://www.ddaily.co.kr/news/article.html?no=132303
July 6th, 2015. etnews Compeition for contents between Naver and DaumKakao fierce
http://www.etnews.com/20150703000261
4. Attempts to Secure Video Contents
Domestic Issues

29. 27
July 2nd, 2015. Asian Economy Indian smartphone market will exceed the American market within 2 years
http://www.asiae.co.kr/news/view.htm?idxno=2015070208060634785
July 2nd, 2015. Yonhap News India, this time ‘digital India’.... 79 trillion KRW business investement plan
ht t p: //www.yonhapnews.co.kr/bulletin/2015/07/02/0200000000AKR20150702160400077.HTML?input=1195m
July 9th, 2015. ZDNET ‘extreme growth’ in the smartphone advertisement market of the Asia-Pacific region
http://www.zdnet.co.kr/news/news_view.asp?artice_id=20150709091903&type=det&re=
1. Land of Opportunities, Digital India!
June 30th, 2015. news1 Taxi app Uber in a fierce competition for subsidies with Chinese app Didi Kuaidi
http://news1.kr/articles/?2306423
July 6th, 2015. Herald Economy. ‘Shared economy icon’ Uber stands again in the Korean court
h ttp : //news.heraldcorp.com/view.php?ud=20150706000336&md=20150706140306_BL
July 7th, 2015. Money Today. Law to limit Uber cars... 2nd stage of Uber vs. New York‘
http://www.mt.co.kr/view/mtview.php?type=1&no=201507061461533777&outlink=1
July 24th, 2015. Yonhap News. Toronto taxi industry files for 365 billion KRW compensation lawsuit against Uber
h t t p : //www.yonhapnews.co.kr/bulletin/2015/07/24/0200000000AKR20150724072300009.HTML?input=1195m
2. Uber’s Growth Pains!
Global Issues

30. 28
July, 2015. Kocca Chinese contents industrial trend 2015
July 16th, 2015. iNews24 China rises as the world’s greatest mobile games market
http://news.inews24.com/php/news_view.php?g_serial=909163&g_menu=020600&rrf=nv
July 17th, 2015. ZDNET China enters mobile games market... should focus on ‘Baidu-360’
http://www.zdnet.co.kr/news/news_view.asp?artice_id=20150717104534&type=det&re=
3. Continental Power! Chinese Mobile Gaming Market
Global Issues

31. 29
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