CDC Corporation's (CHINA) filial CDC Mobile has signed an exclusive distribution agreement with South Korea's Hancast Corporation to distribute South Korean mobile games, videos, music and fashion advertisements in China.
"The enormous size of the current mobile market provides us with a significant growth opportunity," said Peter Yip, CEO of CDC Corporation. "Despite the current slowdown in the overall SP sector, we believe that by correctly identifying and meeting the demands of different subscriber groups, we can further improve our mobile value-added services and capitalize on the fast growing and largest mobile market in the world. Additionally, the Korean market also has some of the most entertaining 3G content in the world today. This distribution agreement will be even more compelling as the 3G markets in China mature."
The growing popularity of South Korean entertainment in China is a social phenomenon often referred to as the "Korean Wave." From music to video games, fashion to television drama, this well-received entertainment has created a huge demand for immediate updates and access. By providing millions of mobile subscribers with the latest wave from South Korea, CDC Mobile aims to become the first destination for mobile entertainment in China.
According to China's Ministry of Information Industry, at end of November 2006, mobile subscribers in China surpassed 455 million and the mobile penetration rate reached 33.9%. According to China Academy of Telecommunication Research of MII, mobile value-added services market value is now more than 10% of basic telecom services, which amounts to more than US$7 billion.