Samjong KPMG publishes report on Chinese content and capital expansion

Chinese firms validate content in massive domestic market before going global

Expansion moves beyond exports to securing key local assets

Samjong KPMG released a report Monday on strategic responses to the expansion of Chinese content and capital. [Samjong KPMG]
Samjong KPMG released a report Monday on strategic responses to the expansion of Chinese content and capital. [Samjong KPMG]

As Chinese companies and capital accelerate their push into overseas content markets, risks surrounding core intellectual property have emerged as a pressing concern requiring strategic action, according to a new industry report.

Samjong KPMG released the report Monday, titled "The Expansion of Chinese Content and Capital, and Strategic Response Directions for Korean Companies," laying out the analysis.

China's content industry has grown on the back of four drivers: a vast domestic market and user base, government policy support, a shifting content consumption environment, and increasingly sophisticated AI-driven production and technology capabilities. With a domestic market of more than 1 billion people, China rapidly produces and validates content before rolling out blockbusters to overseas markets. The Chinese government, meanwhile, supports not only content production but also the broader industry ecosystem — including financing, company development and overseas expansion — while managing market access through licensing approvals and import reviews.

In gaming particularly, titles with original IP, distinctive world-building and high production quality have made inroads in global markets. According to a report published by the Korea Creative Content Agency in June, China's share of the global gaming market reached 24.2 percent, surpassing the United States at 20.9 percent to claim the top spot for the first time. China's game sales reached $53.33 billion.

The way Chinese companies and capital expand abroad has also grown more sophisticated, moving beyond simple content exports toward directly securing local business footholds and key assets.

In gaming, Chinese firms are building publishing and operational capabilities through overseas subsidiaries while expanding equity investments and acquisitions in local game developers. More recently, some have moved beyond minority stakes to pursue outright management control. In video streaming, Chinese platforms such as iQIYI have established overseas bases across Southeast Asia, the Middle East and Africa, deepening content exchanges and co-productions with local companies.

The report described Chinese companies and capital as forming a dual relationship — simultaneously competitors and potential partners. Chinese firms can expand as rivals to domestic content companies while also serving as collaborators that provide funding, overseas distribution networks and local operational capabilities.

However, the ways Chinese companies and capital engage in global markets vary depending on the industry structure and competitive environment of each content sector. The report said a comprehensive assessment is needed — one that examines the mode of entry by sector, the scope of equity, IP and distribution rights being secured, and the degree of effective operational control.

Beyond China's own licensing and content review systems, factors such as data protection, national security and antitrust regulations in other countries, along with geopolitical variables, were also identified as considerations. Risks can affect not only equity investments but the full range of business activities, including co-productions, platform operations, content distribution and data use.

In response, the report recommended that domestic content companies develop strategies that balance risk management with the pursuit of growth opportunities. It called on firms to protect core assets including key IP and data, and to systematically manage their dependence on Chinese partners and their overall portfolio. In addition, companies should build governance frameworks capable of responding to policy and regulatory changes, and proactively address business risks that may arise after investments or partnerships are formed.

"The expansion of Chinese content companies and capital offers domestic firms opportunities for fundraising and overseas market entry, but it also brings intensified competition, partner dependency and policy and regulatory risks," said Kim Ik-chan, executive director at Samjong KPMG. "A balanced approach is needed — one that protects core assets and business leadership while leveraging partners' capital, distribution networks and operational capabilities, and strengthens the competitiveness of homegrown content."


park.jiyeong@heraldcorp.com