Local game stocks soar as China allows services of 5 Korean video games

“Cookie Run: Kingdom” [Photo provided by Devsisters]

South Korean game stocks surged Tuesday after the Chinese government allowed Korean publishers to provide services in the country for the first time in three months after a similar decision in December last year.

According to Chinese media outlets on Tuesday, China’s National Press and Publication Administration announced Monday that it approved the imports of 27 foreign games including five Korean games. They include Nexon Games Co.’s “Blue Archive” and “Maple Story H5,” Devsisters Corp.’s “Cookie Run: Kingdom,” HanbitSoft Inc.’s “Club Audition,” and Netmarble Corp.’s “The Seven Deadly Sins: Grand Cross.”

The Chinese service of Blue Archive will be provided by Shanghai Roaming Star Co. Maple Story H5 was produced in China based on Nexon Games’ intellectual property of “Maple Story.”

Shares of the game companies that were granted licenses in China soared.

Shares of Nexon Games closed 13.76 percent higher at 16,700 won ($12.8). The stock gained 28.96 percent this year. Shares of Devsisters also closed the day 12.87 percent higher at 49,550 won. Shares of Netmarble and HanbitSoft rose 6.3 percent and 6.18 percent, respectively. T3 Entertainment Co., a subsidiary of HanbitSoft, was up 4.19 percent.

Other Korean game stocks such as DragonFly GF Co. rose 4.21 percent, Neowiz Holdings Corp. 4.01 percent and Krafton Inc. 2.42 percent on expectations that China’s ban on Korean games would further be lifted.

“Publishing licenses are expected to be granted to more Korean games after multiple titles were approved in a short period,” said Lee Ji-eun, an analyst at Daishin Securities Co. “Gaming stocks in general, including those waiting for China’s approval, maintain a positive outlook.”