Chapter 393
Translator: crow
Chapter Title: Censorship Relaxation
Korea-led economic bloc EA was enjoying sweet prosperity.
It was an era of high growth where stock prices rose the moment you opened your eyes and skyscrapers sprang up everywhere.
EA's prestige was racing toward its peak.
World No. 2 Korea, No. 4 Republic of China (Nanjing), No. 5 Japanese Federation.
EA's member states already possessed an overwhelming scale that could dominate the world.
"EA is soon to be the center of the world."
Of course, there was a price to pay for EA's terrifying growth.
"Jobs are getting scarcer by the day—what are we going to do about this?"
In EA, industrial hollowing-out was becoming just as visible as the rapid wage hikes.
Factories that had once set up in China and Japan were moving to places like Indonesia in search of even cheaper labor.
"If we keep doing business here, we'll go bankrupt with losses—what choice do we have?"
The Chinese and Japanese governments tried to retain these companies with subsidies and tax breaks,
"But how much is that really worth?"
they didn't offer much incentive to the corporations.
Korea had prepared early for this issue by shifting to high-value-added industries and supporting automation, but China and Japan had done almost no such preparation.
"Isn't there any way to deal with this?"
After much deliberation, China and Japan chose software, culture, and tourism industries as their breakthrough.
"It makes sense to go for smokestack-free industries with less cost burden."
In this process, Japan and China greatly developed their animation, gaming, and tourism sectors.
Since they lacked know-how, subcontracting for Western and Korean companies to build experience was essential.
"If you draw it like last time, there won't be any more work coming your way."
"S-Sorry."
After accumulating subcontracting experience, China and Japan began producing their own animations and games.
The Chinese and Japanese governments supported these ventures through policy.
"This is our new cash cow."
When they threw down the gauntlet in the cultural industry, Korea was thrown into disarray.
"What? Japan exporting anime?"
Before long, they emerged as Korea's formidable competitors.
"The era of K-Anime is over. Now it's the era of J-Anime!"
It wasn't just anime.
Korea was being relentlessly pursued in the gaming industry as well.
"No way—this can't be happening. How are these China-Japan guys with no gaming history catching up like this? We dominate in talent and capital!"
3D, Korea's flagship gaming giant, was at a loss over the pursuit.
But China and Japan's chase wasn't all that surprising.
From the start.
"You have to factor in that China and Japan have cheaper labor costs."
With the same capital, China and Japan could hire more people.
And another factor.
Korea's 3D, Donsun, Donmarble, and Donssoft were essentially monopolies—companies that had swum comfortably in a greenhouse.
"Hey~ So, are we not making games at our company anymore?"
When such companies were exposed to competition, how could they handle real rivalry?
Korea's 3D immediately rushed to the National Assembly, pleading for protection for Korean game companies.
"Congressman. I've left a box in your trunk. Please take good care of this legislation."
"Got it. I'll think about it."
3D's strategy seemed effective at first glance, but they overlooked one thing.
The consumers.
"We want China-Japan games, not 3D's trash games."
The gaming issue quickly sparked backlash against cultural censorship.
"Censoring content in a democracy is absurd from the get-go!"
Korea already censored foreign content due to PC issues.
"What's all the noise about now?"
As society grew uproarious over censorship, the shadow ruler Bae Seong-jun couldn't sit idle.
"Yes, Director. Here's the situation."
Bae Seong-jun was incredulous upon learning a few small game companies had caused this uproar.
"You're saying a handful of game companies are risking public backlash?"
If this blew up further, it could turn into opposition against the regime.
Bae Seong-jun called the Grand Korean Party to extinguish it immediately.
"Suspend the recently passed Youth Harmful Content Censorship Law."
"Understood."
Having witnessed the dictator's ruthless purge recently, the Grand Korean Party didn't dare complain.
If you could watch heads roll and not vomit, you weren't human—you were livestock.
The Youth Harmful Content Censorship Law, created to block China-Japan games, was scrapped in less than a day.
Donsun Chairman Kim Jong-ju, who had poured his heart into the bill, was shocked to hear it had been discarded overnight.
"T-The higher-ups ordered our law scrapped?"
"That's what they said. So don't take it too hard, Chairman Kim."
With the bill's repeal, stocks of Donsun, Donmarble, and Donssoft began plummeting dramatically.
3D's market cap had peaked at 4.5 billion, but right after the repeal, it crashed to 3 billion.
The decline didn't stop there.
3D rapidly lost market share to China and Japan.
The dominance where 3D once held 70% of the Korean gaming market was nowhere to be seen.
"Even a dinosaur like 3D can fall like that. Well, they were pretty sleazy anyway."
China and Japan cheered 3D's downfall, but they couldn't relax just yet.
"You think Korea only has 3D? We have others too."
Korea had plenty of other game companies besides 3D, like Gravity and Red Hole.
They had simply been overshadowed by 3D and missed growth opportunities.
New game companies surged through the gaps created by the China-Japan vs. 3D battle.
The gaming industry's war, reminiscent of the Warring States period, continued into the mid-90s.
A clear divide between winners and losers emerged in the second half of 1990.
"KBOX. The new era is led by KBOX."
Nanos oft, which developed a Korean computer OS, released the latest gaming console and crushed all competitors at once.
"Nanos oft entering the fray here?"
Nanos oft was the emperor that had conquered the Third World's PC industry.
When such a behemoth jumped into gaming with a new platform, the board was flipped.
Korea's counterattack didn't stop at gaming.
Korean animation companies decided to sell anime worldwide, beyond the increasingly competitive EA market.
"Only we Koreans have the supply chain to pull that off."
By expanding the market massively, they could maintain competitiveness even with higher production costs.
Korea overwhelmed rivals by pouring massive funds into animation.
"Pour in at least 40,000 won per episode."
"What? 40,000 won per episode? Are they insane? How do they turn a profit?"
"You don't need to worry about our wallets."
When competing with money, China and Japan's small firms couldn't match Korea's giants.
After a grueling war of attrition, Korea succeeded in repelling the challengers.
Of course, Korea had seized the initiative, but it hadn't wiped out the competitors.
China and Japan's rivals were still alive, eyeing gaps in Korean companies.
This threat had a positive effect on Korean firms' competitiveness.
"If we slack off, those guys will trample us again."
Mindful of the threat, Korean companies showed bone-deep innovations in content.
"Make content that truly moves consumers. Not just time-killers!"
"Ditch those exploitative monetization models! If we ruin our image, how do we sell the next game?"
Through competition with China and Japan, Korean companies recovered the edge they'd lost to "PC censorship."
Of course, this wasn't enough to lead the world.
To solve this, Korea opted to acquire competitors in North America and Europe.
"Korean companies buying Western ones?"
"Of course we can."
As long as it wasn't a national security-related firm, Koreans could buy Western companies—and vice versa.
Korea swiftly snapped up relatively small Western game studios (due to smaller market sizes from population disadvantages).
These acquired Western firms weren't subject to Korea's cultural content censorship.
"It's just nominal ownership by a Korean company; the actual base is still Western."
Korean companies used this loophole to release games bypassing cultural censorship.
"Have they lost their minds?"
The Korean government and intelligence agency expressed concerns, but Bae Seong-jun brushed it off.
"Don't strangle them too tightly."
"But Director, cultural censorship has been a regulation since Prime Minister Lee Seong-jun's time."
Lee Seong-jun had left instructions for gradual deregulation, but censorship remained firm.
The reason was simple.
"What if degenerate Western cultures like homosexuality corrupt Korea's wholesome customs?"
Bae Seong-jun agreed that fully opening the cultural market to the West was too much.
But he thought indirect "vaccination" via games developed by Western firms was acceptable.
'We have to open up in the long run anyway.'
Korea couldn't stay isolated forever in the PC communications era.
Eventually, the country had to open its doors.
Overlooking Korean companies' censorship evasion was akin to preparing the environment for opening.
Thus, Korea began dismantling the walls of censorship.