The Korea Times
amn_close.png
amn_bl.png
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
amn_bl.png
Business
  • Tech
  • Bio
  • Companies
  • World Expo 2030
amn_bl.png
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
amn_bl.png
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to President
  • Letter to the Editor
amn_bl.png
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
amn_bl.png
Entertainment & Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
amn_bl.png
Sports
amn_bl.png
World
  • SCMP
  • Asia
amn_bl.png
Video
  • Korean Storytellers
  • POPKORN
  • Culture
  • People
  • News
amn_bl.png
Photos
  • Photo News
  • Darkroom
amn_NK.png amn_DR.png amn_LK.png amn_LE.png
  • bt_fb_on_2022.svgbt_fb_over_2022.svg
  • bt_twitter_on_2022.svgbt_twitter_over_2022.svg
  • bt_youtube_on_2022.svgbt_youtube_over_2022.svg
  • bt_instagram_on_2022.svgbt_instagram_over_2022.svg
The Korea Times
amn_close.png
amn_bl.png
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
amn_bl.png
Business
  • Tech
  • Bio
  • Companies
  • World Expo 2030
amn_bl.png
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
amn_bl.png
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to President
  • Letter to the Editor
amn_bl.png
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
amn_bl.png
Entertainment & Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
amn_bl.png
Sports
amn_bl.png
World
  • SCMP
  • Asia
amn_bl.png
Video
  • Korean Storytellers
  • POPKORN
  • Culture
  • People
  • News
amn_bl.png
Photos
  • Photo News
  • Darkroom
amn_NK.png amn_DR.png amn_LK.png amn_LE.png
  • bt_fb_on_2022.svgbt_fb_over_2022.svg
  • bt_twitter_on_2022.svgbt_twitter_over_2022.svg
  • bt_youtube_on_2022.svgbt_youtube_over_2022.svg
  • bt_instagram_on_2022.svgbt_instagram_over_2022.svg
  • Login
  • Register
  • Login
  • Register
  • The Korea Times
  • search
  • all menu
  • Login
  • Subscribe
  • Photos
  • Video
  • World
  • Sports
  • Opinion
  • Entertainment & Art
  • Lifestyle
  • Finance
  • Business
  • National
  • North Korea
  • 1

    BTS producer encourages anticipation for future messages from group

  • 3

    From hip-hop idols to global superstars, BTS shatters records over decade

  • 5

    LIFE'S OLLE TRAILS 1How hiking Jeju's 437km of trails changed my life

  • 7

    Korea beats Nigeria to advance to semifinals at FIFA U-20 World Cup

  • 9

    Korea sees record-high number of flu patients for late spring

  • 11

    Election watchdog under fire for refusing to accept inspection

  • 13

    Concerns rise over Samsung SDS' growing intra-group transactions

  • 15

    Korean bio firms to seek new opportunities at int'l convention in Boston

  • 17

    Shipbuilding stocks rally over hope for 'super cycle'

  • 19

    Deep-rooted problems push nurses to handle doctors' duties

  • 2

    Senior citizens land low-wage jobs after retirement: report

  • 4

    Korean shorthairs among favorite cat breeds as more people choose to adopt pets

  • 6

    Tom Cruise to visit Korea to promote new film

  • 8

    S. Korea, Japan agree to prevent recurrence of maritime dispute

  • 10

    Korea denies discussion with EU on sending ammunition to Ukraine

  • 12

    Baritone Kim Tae-han wins Queen Elisabeth Competition

  • 14

    3 EXO members file antitrust complaint against SM Entertainment

  • 16

    K-food transforms global culinary industry

  • 18

    Korea, Japan agree to hold working-level talks to prevent repeat of 2018 maritime incident: Seoul's defense chief

  • 20

    Busan Film Festival accepts director Huh Moon-yung's resignation

Close scrollclosebutton

Close for 24 hours

Open
  • The Korea Times
  • search
  • all menu
  • Login
  • Subscribe
  • Photos
  • Video
  • World
  • Sports
  • Opinion
  • Entertainment & Art
  • Lifestyle
  • Finance
  • Business
  • National
  • North Korea
Business
  • Tech
  • Bio
  • Companies
  • World Expo 2030
Tue, June 6, 2023 | 04:52
Game
Why does Nexon founder want to sell his company?
Posted : 2019-01-03 17:17
Updated : 2019-01-04 11:24
Jun Ji-hye
Print PreviewPrint Preview
Font Size UpFont Size Up
Font Size DownFont Size Down
  • facebook
  • twitter
  • kakaolink
  • whatsapp
  • reddit
  • mailto
  • link
Korea's game pioneer decides to cash out amid increasingly unfavorable outlook

By Jun Ji-hye

Nexon founder Kim Jung-ju has decided to sell the nation's leading game company, sending shockwaves through the game industry, according to industry sources, Thursday.

Nexon founder Kim Jung-ju
Nexon founder Kim Jung-ju
Kim, current CEO of Nexon's holding company NXC, made the decision in an apparent judgment that the game industry is facing a tough future amid toughening regulations and fiercer competition, sources noted.

He also suffered exhaustion while undergoing two years of prosecution investigation on suspicious stock transactions and bribery allegations, they said.

According to sources in the investment bank field, Kim has put NXC's entire stakes owned by him, his wife and his private company on the market.

The stakes owned by the three totals 98.64 percent, with him holding 67.49 percent, his wife, who is an auditor of NXC, holding 29.43 percent and his private company Wisekids possessing 1.72 percent.

Kim reportedly hired Deutsche Securities and Morgan Stanley to supervise the sale of his company.

Market analysts estimate the acquisition price at more than 10 trillion won ($8.9 billion), when considering the value of companies owned by NXC. This would be the largest-ever merger and acquisition (M&A) deal in the nation.

"Kim has expressed his intention to people surrounding him that he may need to end the game business as he has become tired of regulations and the negative perception on games in addition to the prosecution investigation and trials he underwent," a source said.

Nexon founder Kim Jung-ju

Kim founded Nexon in Korea in 1994, but the firm is headquartered in Japan. The company's stocks were listed on the Tokyo stock exchange starting in late 2011.

Nexon's market capitalization based on the latest closing price values was about 13 trillion won. The Tokyo market is closed for a holiday until Thursday.

NXC has ownership in Nexon, and the Japanese entity controls Nexon Korea.

NXC also has stakes of several companies including Europe-based cryptocurrency exchange Bitstamp, Korean virtual currency exchange Korbit and children's furniture maker Stokke.

Kim has been regarded as one of the pioneers of the nation's game industry, growing Nexon into one of the top game firms with many popular games such as "Crazy Arcade," "Dungeon & Fighter" and "Maple Story."

Not only Nexon but also the entire game industry has suffered a downturn for the past year due to a delay in releasing new games and difficulty in exporting their products to the Chinese market in addition to some politicians moving to strengthen regulations.

Politicians are also calling on the government to designate games as part of the gambling industry in accordance with the World Health Organization's (WHO) push to classify game addiction as a disease in the same category as substance abuse and gambling addiction.

Kim also underwent a prosecution investigation for two years on suspicion that he gave 425 million won to Jin Kyung-joon, a prosecutor who is one of Kim's friends from high school, in 2005. Using this money, Kim allegedly bought 10,000 unlisted stocks in Nexon and raked in hefty stock gains of about 12 billion won after the company was listed in Japan, according to prosecutors at the time.

In May last year, Kim was found not guilty at the Seoul High Court.


Who will buy Nexon?

Market experts said it would not be easy to find an acquirer as the scale of the deal is too immense.

One of the candidates cited in the market is China's Tencent that distributes Nexon's "Dungeon & Fighter" in China.

Tencent already holds a 10 percent stake in Korean game firm Krafton, previously Bluehole.

Tencent's possible takeover of Nexon is raising concerns that the Korean game industry will lose its leadership further to Chinese competitors.

Other companies that market observers cited as candidates to acquire Nexon include Kakao, Netmarble and EA Games.

If the M&A deal is accomplished, Kim is expected to rest for the time being and plan new business.

Through holding firm NXC, he has recently bought various companies in diverse industries, including virtual currency exchanges, a golf wear brand and a children furniture maker.

Some observers raised possibility that Kim would exclude some subsidiaries from subject of sale for future business.

Meanwhile, stocks of Nexon's subsidiaries, Nexon GT and Netgames, are skyrocketing following the news of Kim's decision.

Stocks of Nexon GT rose 29.98 percent to 8,280 won from the previous day, while those of Netgames rose 29.99 percent to 9,580 won.

"It is still necessary to see the development of the situation as Nexon has yet to issue its official stance, but if the M&A deal is accomplished, subsidiaries will be able to expand its services in the Chinese market considerably," BNK Securities analyst Lee Kyung-il said. "With expectations toward the growth, stocks of Nexon subsidiaries are increasing rapidly."


Emailjjh@ktimes.com Article ListMore articles by this reporter
 
wooribank
Top 10 Stories
1Korean shorthairs among favorite cat breeds as more people choose to adopt pets Korean shorthairs among favorite cat breeds as more people choose to adopt pets
2[ANALYSIS] S. Korean economy feared to follow in Japan's footsteps ANALYSISS. Korean economy feared to follow in Japan's footsteps
3Agency launched to offer exclusive support for overseas KoreansAgency launched to offer exclusive support for overseas Koreans
4Retailers use recycled, biodegradable plastic to attract eco-conscious consumers Retailers use recycled, biodegradable plastic to attract eco-conscious consumers
5Retail investors bet on wrong horse despite KOSPI rallyRetail investors bet on wrong horse despite KOSPI rally
6Embassy of Italy celebrates Republic Day Embassy of Italy celebrates Republic Day
7HD Hyundai, Hanwha Ocean to compete in Busan to sell naval ships HD Hyundai, Hanwha Ocean to compete in Busan to sell naval ships
8Ex-BOK economist to head KCCI's think tank Ex-BOK economist to head KCCI's think tank
9Korea's export dependency on China dips below 20% Korea's export dependency on China dips below 20%
10Stats agency to use Naver's AI chatbot to offer tailored data for firms Stats agency to use Naver's AI chatbot to offer tailored data for firms
Top 5 Entertainment News
1[REVIEW] 'The ODD Of Love' concert: Taeyeon shows why she is among K-pop's top vocalists REVIEW'The ODD Of Love' concert: Taeyeon shows why she is among K-pop's top vocalists
2Baritone Kim Tae-han wins Queen Elisabeth Competition Baritone Kim Tae-han wins Queen Elisabeth Competition
3Busan Film Festival accepts director Huh Moon-yung's resignation Busan Film Festival accepts director Huh Moon-yung's resignation
4[INTERVIEW] 'One Day Off' star Lee Na-young, director on creating subtle, feel-good series INTERVIEW'One Day Off' star Lee Na-young, director on creating subtle, feel-good series
5'HyeMiLeeYeChaePa' producer Lee Tae-kyung hopeful of second season 'HyeMiLeeYeChaePa' producer Lee Tae-kyung hopeful of second season
DARKROOM
  • Turkey-Syria earthquake

    Turkey-Syria earthquake

  • Nepal plane crash

    Nepal plane crash

  • Brazil capital uprising

    Brazil capital uprising

  • Happy New Year 2023

    Happy New Year 2023

  • World Cup 2022 Final - Argentina vs France

    World Cup 2022 Final - Argentina vs France

CEO & Publisher : Oh Young-jin
Digital News Email : webmaster@koreatimes.co.kr
Tel : 02-724-2114
Online newspaper registration No : 서울,아52844
Date of registration : 2020.02.05
Masthead : The Korea Times
Copyright © koreatimes.co.kr. All rights reserved.
  • About Us
  • Introduction
  • History
  • Contact Us
  • Products & Services
  • Subscribe
  • E-paper
  • RSS Service
  • Content Sales
  • Site Map
  • Policy
  • Code of Ethics
  • Ombudsman
  • Privacy Statement
  • Terms of Service
  • Copyright Policy
  • Family Site
  • Hankook Ilbo
  • Dongwha Group