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Korea, once considered a video games wasteland, transformed into a nation leading the new era in the video game industry. This success was the outcome of the collaboration between IT and privately-led creative manpower and ideas. In addition, the Korean government spared no efforts in supporting the video game industry by adopting the industry as a new growth engine for the national strategic industry. We will examine the successful development process of the Korean video game industry, constantly and ceaselessly undergoing innovation by both the public and private sectors.