India lifts ban on Krafton's mobile game BGMI

India has approved popular mobile game Battlegrounds Mobile India (BGMI) to be relaunched for a trial period after a 10-month ban, South Korean game developer Krafton said on Friday.

South Korea's foreign affairs and culture ministries held meetings with their Indian counterparts to help lift the ban, a Krafton Inc representative said.

The Indian government blocked BGMI, the flagship game made by Krafton last July, citing concerns about its data-sharing and mining in China.

Krafton is backed by China's Tencent which owns around a 13.5 per cent stake.

The three-month trial approval of the game was agreed after it complied with issues of server locations and data security, Indian deputy minister for Information Technology, Rajeev Chandrasekhar, said in a tweet.

Daishin Securities analyst Jeeeun Lee said the spillover from political spats with China to Krafton will be limited.

"It will be tough for India to impose an outright ban on companies affiliated with China over political issues when they operate through a local corporation that hire Indian workers like Krafton for instance," she said.

Shares of Krafton rose 1.45 per cent compared to the wider KOSPI index's 0.89 per cent rise when the market closed on Friday.

The government also intensified the scrutiny of investments by Chinese firms in Indian companies.