SK Planet Co., an affiliate of South Korea's top mobile carrier SK Telecom Co., said Friday it has signed an agreement with Japan's largest game developer Sega to strengthen its mobile game business.

Under the memorandum of understanding, the two companies will cooperate on marketing and distributing Sega's mobile games in the local market, SK Planet said in a press release.

SK said it plans to release Sega's "The Clan Battle" early next year after introducing the mobile game at the upcoming G-Star, South Korea's largest game trade fair, next week.

SK has been moving to bolster its mobile game business by tying up with overseas game developers such as "Street Fighter" developer Capcom and "Angry Birds Rio" developer Rovio.

South Korea has seen its mobile game industry surge on the back of increasing smartphone penetration. The domestic market for mobile games is expected to reach 580 billion won ($532 million) in 2013, up 25 percent from an estimated 460 billion won this year, according to a projection by Korea Creative Contents Agency. (Yonhap News)