[Shocking Remarks by OTK Company Vice President!]
[Are Dostic Ga Companies Really Moving Overseas?]
[Just Empty Threats, Little Chance of Happening]
[Minister Shin Jeon-mi: OTK Company VP Must Take Responsibility for Remarks]
[MOGEF Affiliate, Gender Equality Activity Promotion Center: Cannot Contain Anger at Ga Industry's Threatening Remarks...]
[Ministry of Gender Equality and Family: Will Take Strong Legal Action Against Articles and Comnts Harming Gender Equality, Following Guidelines]
The governnt, including the Ministry of Gender Equality and Family (MOGEF), and public opinion initially regarded the OTK Vice President's remarks as empty threats with little chance of realization.
However, they said this because they didn't truly know Oh Taekgyu.
Under OTK Company's leadership, the dostic ga companies moved in an orderly fashion. Around 30 companies, including the five major ones, began reviewing specific tilines and thods for separating their Korean operations and relocating their headquarters overseas.
It's impossible for all personnel to leave Korea imdiately. However, separating developnt and services into subsidiaries and moving the holding company abroad is entirely possible.
To this end, they decided to hold shareholder etings and, concurrently, submit letters of intent for delisting to the stock exchange.
Normally, such actions would be t with shareholder resistance. However, the situation was different this ti. Due to the MOGEF's hardline stance and concerns about the ga regulation bill, ga company stock prices were plumting.
If the bill truly passed, forcing them to pay 1 percent of revenue as a levy and up to 5 percent as a fine, their net profits would plumt, or they would face deficits. Consequently, shareholders wholeheartedly approved the overseas relocation.
The announcent of the ga companies' collective move imdiately sent shockwaves through the economy and stock market.
There's no real porn industry in Korea to begin with. Therefore, tightening regulations has no impact on the industry, other than making illegal downloads harder.
However, gaming is already a crucial pillar of the IT industry. That's why companies like Npple, Gooble, Facenote, and Microsoft don't hesitate to invest heavily in the gaming sector.
The areas where ga companies are clustered, like Pangyo and Bundang, were thrown into chaos, and even nearby housing prices fluctuated wildly. Real estate agencies were flooded with inquiries from landlords.
In the Pangyo and Bundang real estate markets, buyer interest vanished instantly, and so even backed out of deals right before signing the contracts.
- It's an exodus lol. Just like Moses led the Israelites to the land of Canaan, the OTK Company VP is leading the ga companies away.
- That's because the persecution was so severe. Where will they build their diaspora?
- Didn't President Heo Chang-min criticize the previous governnt's policies during his campaign and promise to foster gaming as a key industry?
- The governnt nurtures it as a core industry, but the MOGEF regulates it and collects money.
- It's like the nuclear phase-out. Korea phases out nuclear power but encourages nuclear reactor exports.
- So, what happens now? Are all dostic gas shutting down service?
- It doesn't really matter. They'll likely offer services just like foreign gas do in Korea now. And if the governnt tries to impose ridiculous regulations or collect money like this, they can just file a complaint with the WTO.
- Moving to the US solves everything. Korea gets to be a 'ga-free country,' the US gets to foster its ga industry and create jobs, and the MOGEF gets rid of the ga industry. Win-win-win?
- Wow! The MOGEF must be so relieved.
- LOL, they wanted to summon the ga companies, yell at them, and boss them around a bit, but the entire target of their regulations just disappeared.
- They tried to extort so money using regulation as an excuse. If all the ga companies leave, who will they collect the levy from?
- Don't worry. They can just regulate webtoons and comics next. Change the 'Four Major Addictions' to 'Five Major Addictions' by including comics, and everything's solved.
- Next, they'll probably beat up Pororo and demand money~ ^^
- The MOGEF is capable of anything. Pororo is the next sacrificial lamb!
- Just wait. MOGEF-affiliated groups will start churning out studies claiming that watching Pororo damages the brain, increases violence, and reduces sperm count.
- Establishnt of Pororo Addiction Healing Centers! Deploynt of dedicated Pororo addiction teachers in every kindergarten!
- Seriously though, let's leave President Pororo alone ㅡㅡ;
***
The announcent of the mass exodus of Korean ga companies caused a stir worldwide.
When cars made in country A are sold in country B, tariffs and value-added taxes are paid in country B. However, for software, including gas, taxes are paid only where the corporation is registered, regardless of where the sales occur. This is why Npple and Gooble, which operate app stores, have spun off their app store operations into corporations based in Ireland, which has the lowest corporate tax rate in the EU.
In short, a country that attracts ga companies can collect enormous tax revenues!
The competitiveness of the Korean ga industry is well-known. Many gas already have massive user bases, and there are nurous talented developers.
Attracting them could generate significant employnt and added value. Offers poured in from various countries and cities.
Among them, Detroit was the most enthusiastic.
Detroit, as everyone knows, was the center of the auto industry. However, after Silicon Valley collapsed due to the 'Big One' (or perhaps a major auto event), and CarOS established itself there, it attracted related IT companies, forming a cluster.
Thanks to this, Detroit rapidly erged not just as an automotive hub but also as an IT industrial complex.
When OTK Gas decided to move its headquarters from Tokyo to Detroit to collaborate with CarOS, the city decided to take the opportunity and create a gaming cluster.
As Korean ga companies showed signs of an exodus, even the Governor of Michigan and the Mayor of Detroit joined the effort to attract them.
“We will make Detroit the center of the ga industry!”
“We are reviewing various support asures and tax benefits, and will provide dormitories and land free of charge!”
President Ronald didn't stay silent either. He imdiately fired off a tweet.
[Welco the move of Korean ga companies to the US. Aricans love gas and know how to enjoy them. Most importantly, Arica doesn't have a Ministry of Gender Equality and Family!]
Since everyone knew why the ga companies were leaving Korea, the last sentence was practically mockery.
***
From the governnt's perspective, if one or two companies announced relocation to avoid regulations, they wouldn't have batted an eye.
However, it's a different story if an entire industry makes a collective move. And OTK Company possessed the funds and influence to potentially relocate all dostic ga companies overseas.
Consequently, the situation was too serious to be dismissed as just a boycott or empty threat.
In place of President Heo Chang-min, who was on a European tour, Pri Minister Ryu Jeong-hoon chaired a cabinet eting.
Ministers from all departnts attended without exception. Regarding the current crisis, all ministers, except the MOGEF Minister, expressed deep concern.
“While the manufacturing sector's profit margin is less than 10 percent, the ga industry's profit margin exceeds 20 percent. It’s that high a value-added industry.”
“Gas exported $8 billion last year alone. This year's export figures are already up over 30 percent compared to the sa period last year.”
“This is an industry growing at over 20 percent annually, and now it’s about to move overseas entirely.”
“What about the talent drain? Each ga developer is a valuable national asset. If key personnel leave for foreign countries, the Korean ga industry will beco subordinate to foreign interests.”
“Other countries are desperate to grow their ga industries, does this make any sense? This incident is becoming a laughingstock overseas. It’s a complete international embarrassnt.”
“The imdiate loss of tax revenue is also a problem. If all the ga companies leave, who will pay taxes?”
Even without citing the phrase 'It's the economy, stupid,' economic policy is paramount for any governnt. Ideology doesn't put food on the table, after all.
Korea was already grappling with a sluggish economy and rising unemploynt. While this was more due to structural problems in the industry than the current governnt's fault, the governnt's inability to even begin addressing those structural issues was clearly a failing.
While industrial restructuring stalled, all ministries were desperately trying to boost employnt rates.
So, what would happen if, in this situation, ga companies left Korea en masse?
Decrease in exports, tax revenue loss, increased unemploynt, drop in employnt rates, talent drain, loss of industrial competitiveness, and so on. Above all, the biggest problem would be plumting approval ratings.
Small ga companies employ hundreds, large ones employ thousands. Direct employnt alone accounts for tens of thousands, and considering related industries, it impacts hundreds of thousands of jobs!
What citizen would approve of significant economic losses caused by stubbornness and anti-corporate sentint towards a specific sector?
While not all personnel would leave imdiately, if the companies moved their headquarters, key talent would likely follow.
The Minister of Science and ICT spoke.
“Compared to our manufacturing competitiveness, Korea's software competitiveness is weak. If all the ga companies really leave, Korea's software industry could collapse.”
MOGEF Minister Shin Jeon-mi countered.
“What do gas have to do with the software industry? Claiming the entire dostic industry will suffer just because the ga sector leaves is illogical.”
He shouted out of frustration.
“Do you think ga developers only make gas? Things like the Unreal Engine or script engines used in ga production are all software! Ga developers develop software, and software developers develop gas. Seriously, if you don't know, just keep quiet!”
“...”
After the ministers finished speaking, Pri Minister Ryu Jeong-hoon spoke.
“Transfer the authority to regulate cultural industries from the MOGEF to the Ministry of Culture, Sports and Tourism (MCST). From now on, the MOGEF should focus solely on issues concerning won and families. And Minister of Culture, please contact the ga industry and work towards resolving this situation amicably as soon as possible.”
Minister Shin Jeon-mi was visibly shocked by his words.
“We cannot do that. The MOGEF absolutely needs regulatory authority to protect youth and won.”
Losing his patience, Pri Minister Ryu Jeong-hoon shouted in an angry tone.
“The very target of regulation is about to disappear, so what use is regulatory authority!? You caused this ss by raising hell about killing off a successful industry, and you still have more to say? These are the President's orders. If you have complaints, take them directly to the President!”
***
After the cabinet eting concluded.
The Blue House announced that regulatory authority over cultural industries would be consolidated under the MCST. The Minister of Culture imdiately decided to et with ga company CEOs to listen to their difficulties.
This was an attempt, at least, to appease the ga industry.
However, Minister Shin Jeon-mi, the very person who caused this crisis, faced no accountability and kept her position.
Netizens couldn't hide their astonishnt.
- Wow! It makes no sense that she wasn't fired?
- Damn, not even a single word of apology.
- Why are they protecting Shin Jeon-mi so much? Does she have so dirt on them?
- Because she has strong support from won's groups~
- Why act surprised now? Did you vote for them without knowing this is how they operate?
- LOL, I'm dying. I didn't know it was this bad.
- She'll probably keep her seat until the administration changes.
- They shouldn't compromise half-heartedly! If left alone, she'll just cause problems again.
- We request a definitive response this ti!
- Just tell them you're 'Escaping Joseon'~
Despite the governnt's announcent, the ga industry refused all dialogue. Instead, they seed to accelerate the process of corporate separation.
Previously, they wouldn't have been able to take such a strong stance.
But the situation changed after OTK Company stepped in. This wasn't just because OTK Company had imnse wealth and influence.
The Vice President clearly understood the difficulties of the ga industry and intended to continue supporting it. This was evident just from the creation of the OTK Awards.
The ga industry, which had previously responded disjointedly and ineffectively to regulations, united strongly.
“The Vice President will handle everything! There's hope now, hope!”
“That's right. We've been living without hope for so long.”
“Let's trust the VP and fight to the end!”
The governnt, which had expected the industry would naturally agree to talks upon being invited, was flustered. Minister Kim Guk-cheon (MCST) personally t with the OTK Company Vice President to persuade him. However, the response he received was firm.
“We are rely following Minister Shin Jeon-mi's wishes. She said the monk should leave if he dislikes the temple, so we're leaving. What's the problem? We'll completely uproot the Korean ga industry, plant it abroad, nourish it well with plenty of chemical fertilizer, so don't worry too much.”
“What should we do? If there's sothing you want, please tell us.”
To Minister Kim Guk-cheon's question, Vice President Oh Taekgyu replied.
“Ga developnt involves long hours and relatively low pay. Yet, everyone works late nights and weekends driven solely by the passion to create fun gas. What exactly did they do so wrong? If you can't treat them well, the least you can do is not disrespect them. But a certain soone treated ga developers as if they run gambling dens or manufacture drugs. Wouldn't it be difficult to have a dialogue while such a person remains in a key position?”
***
Although the Blue House applied pressure and criticism mounted even from within the ruling party, Minister Shin Jeon-mi refused to bend her opinion until the end.
Ultimately, in place of the MOGEF Minister, Pri Minister Ryu Jeong-hoon issued a public apology.
“I sincerely apologize to the ga industry professionals and everyone hurt by the unreasonable regulations and harsh remarks. The governnt clearly recognizes that gaming is a proud Korean cultural industry and a core industry that will lead the future. Moving forward, we will actively reflect the opinions of the ga industry for proper regulation and growth, and we will not spare governnt-level support.”
President Heo Chang-min, still on his European tour, dismissed Minister Shin Jeon-mi via written order. Until a new minister was appointed, Vice Minister Cha Yoon-hye would serve as acting minister.
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