April 24, 2024

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[THE INVESTOR] Google is expected to rake in 1.5 trillion won (US$1.32 billion) as commission fees from Korean game makers for selling their games on its app marketplace, the Chosun Ilbo reported on Sept. 15.

Korean game makers have launched a slew of hit games this year, including Netmarble Games’ “Lineage 2: Revolution" whose sales will hit the 1 trillion won mark this year, via Google Play. Google receives a 30 percent commission fee on all downloads.  

Based on earnings estimates of individual game makers, the report said Google’s commission earnings would reach almost 1.5 trillion won this year, including 600 billion won from Netmarble, 200 billion won from NCsoft, 200 billion won from Nexon and 500 billion won from other smaller firms.

The US tech firm has not disclosed the amount of transactions through Google Play amid criticism for its alleged tax evasion not just in Korea but also globally. The Korean unit is not paying any domestic tax as it is registered in Singapore.

Despite the criticism, Google has downplayed the issue by stating that its net profit is much less than the amount reported as most of the commissions are spent on improvements of Google Play.

By Alex Lee (alexlee@heraldcorp.com)