The causes of this decline are multifaceted. Foremost among them is the explosive growth of mobile gaming, which has significantly eroded demand for PC-based gaming experiences. (Image courtesy of Yonhap)
SEOUL, Sept.16 (Korea Bizwire) – In a country once renowned for its vibrant PC gaming culture, South Korea’s internet cafes, known locally as PC bangs (PC rooms), are rapidly disappearing from the urban landscape.
These establishments, which once served as sanctuaries for youth seeking refuge from family gatherings or adult supervision, are now falling victim to changing technology trends and economic pressures.
According to recent statistics from the National Tax Service, the number of PC bang operators nationwide has plummeted by 29.7% over the past six years, from 10,648 in June 2017 to 7,484 as of June of this year.
The rate of decline has accelerated in the wake of the COVID-19 pandemic, with a 12.3% drop recorded in the past year alone.
The causes of this decline are multifaceted. Foremost among them is the explosive growth of mobile gaming, which has significantly eroded demand for PC-based gaming experiences.
The Korea Creative Content Agency reports that mobile games accounted for 64.4% of gaming revenue in 2022, while PC games’ share shrank to 28.6%. This marks a dramatic reversal from a decade ago when PC games dominated the market with an 86.8% share.
The shift is largely attributed to the rapid advancement of smartphone technology. As devices capable of running high-spec games became ubiquitous, game developers pivoted towards the mobile market, which offers lower development costs and a broader user base.
Many popular PC titles have been adapted for mobile platforms or released as cross-platform games.
Demographic changes have also played a role. Today’s youth, having grown up with smartphones, are less inclined to seek out PC bangs. A 2021 survey by the National Youth Policy Institute found that 98% of South Korean adolescents owned smartphones.
Economic factors are further exacerbating the situation. PC bangs, typically operating 24 hours a day, face mounting overhead costs due to rising electricity prices and annual minimum wage increases.
The impending rise of the minimum wage to an unprecedented 10,000 won per hour in the coming year is expected to place additional strain on cafe owners.
In response to these challenges, some operators are adopting innovative strategies. Unmanned PC bangs have emerged as a way to cut labor costs, while others are diversifying their offerings, transforming into “PC-taurants” with an expanded focus on food service.
Economic factors are further exacerbating the situation. PC bangs, typically operating 24 hours a day, face mounting overhead costs due to rising electricity prices and annual minimum wage increases. (Yonhap)
One Seoul-based PC bang gained social media fame for its unique approach of grilling pork belly for customers, mimicking a Korean barbecue restaurant experience.
Kim Ki-hong, chairman of the Korea Internet PC Cafe Cooperative, emphasized the vulnerability of the industry to rising operational costs. “As PC bangs operate 24 hours a day, they become increasingly susceptible to increases in electricity rates and minimum wages, including holiday pay,” Kim states.
He advocated for government support, suggesting changes to the electricity rate system for small business owners and measures to promote mutual growth between small business owners and workers.
Quarantine workers disinfect a PC Bang, or internet cafe, in Gwangju, 330 kilometers south of Seoul, for its reopening on Sept. 10, 2020, 18 days after its closure. The reopening came as no additional COVID-19 cases broke out at internet cafes in the city over the period. (Yonhap)
Ashley Song (ashley@koreabizwire.com)
