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| Smilegate Group Chairman Kwon Hyuk-bin speaks during a first anniversary event for the company's startup support program, Orange Farm, at its office in Seocho-dong, southern Seoul, Thursday. / Courtesy of Smilegate |
By Yoon Sung-won
Local game company Smilegate said Thursday that it will further invest in its startup support program, which is already the largest in the nation's private sector.
"We have invested 200 billion won in the Orange Farm startup support initiative so far, including a 70 billion won subsidy for ventures in the early stage. We also established a club to gather angel investors to facilitate investments for startups in the very early stages of business," said Suh Sang-bong, head of Smilegate's Orange Farm startup incubation center, during a first anniversary event of the Orange Farm program held in Seoul, Thursday.
Established in 2002, Smilegate realized an unexpectedly brisk business performance with the launch of its gunfight game "Crossfire" in China in 2009.
On the back of strong sales in overseas markets, China in particular, the company posted 531.5 billion won in sales and 302.6 billion won in operating profits last year. Its average sales growth rate reached 46 percent, the company said.
The company was the nation's second-largest game firm in operating profit following Nexon, and the fifth-largest in sales last year.
To expand its presence as a major game company, Smilegate has pushed ahead with various investment initiatives, including the 426.4 billion won venture capital fund run by its investment affiliate.
The company is operating three Orange Farm centers, accommodating 23 startups. This is the largest startup assistance program in Korea run by a private company.
Besides space, funds and mentoring for business, the company also said the startups can tap into Smilegate's global business network established by its local subsidiaries.
Suh also stressed that Smilegate does not ask the startups to share their profits. The company plans to build more startup incubation centers nationwide and continue to hold investors' meetings to attract more investments for promising ventures.
"We do not ask for profit share because I think it's my responsibility to return the favor that the society had offered me," Smilegate Group Chairman Kwon Hyuk-bin said.
"We are growing away from the innovative minds and ideas as our business get bigger. Instead, we became more capable in running global business platforms. We believe we can benefit back from operating such platforms and providing support for young startups, which can do what we cannot do anymore."
