[The Editors' Verdict] What Should Nexon Chairman Kim Jung-ju Do?

About a year ago around this time, shocking news broke out: Chairman Kim Jung-ju's push to sell NXC. This was understandable since Nexon and Chairman Kim Jung-ju represent the first generation of Korean gaming companies, and Nexon's "Baram-ui Nara" (The Kingdom of the Winds) was the world's first online game.

After the news was released, Nexon officially began the sale process. Following a preliminary bidding, five companies including Kakao and Netmarble fiercely competed for the acquisition. Ultimately, at the end of June, Chairman Kim Jung-ju declared a suspension of the sale.

It is fortunate that Nexon was not acquired by Chinese companies like Tencent or Alibaba, or by private equity funds. Had it been acquired by a Chinese company, one of the three pillars of Korean gaming would have been removed, and the entire 3N companies including NCSoft and Netmarble could have come under direct or indirect control of Chinese gaming firms. It is also fortunate that it was not acquired by a private equity fund, as such funds pursue short-term profits and would likely have focused on value creation through restructuring and resale rather than the long-term development of Nexon or the Korean gaming industry. Regardless of the reasons, Chairman Kim Jung-ju’s return to Nexon is a welcome event.

Nevertheless, reflecting on the past six months, questions arise about the meaning of Chairman Kim Jung-ju’s withdrawal from the sale and his return. When he initially pushed for the sale a year ago, he issued the following statement:

"Since starting Nexon 25 years ago, I have come this far with the help of many people in a good environment where our society has generously supported us and employees have worked quietly through difficult circumstances. In any case, I will find a way to repay the many benefits received from our society. I will also faithfully keep the promises I have made so far."

If he truly feels the "benefits received from our society," then the duties of the "prodigal son" Chairman Kim Jung-ju who has returned would be threefold. First, Nexon’s leap forward as a global gaming company. Nexon is currently in crisis. "Dungeon & Fighter," which is serviced in China, is experiencing a sharp decline in users, and Nexon has no presence in mobile games. However, as Nexon’s development projects and organizational restructuring have begun, developers are confused whether this is cost-cutting restructuring or a painful effort for a leap forward. During such times of confusion and unrest, Chairman Kim Jung-ju, as the founder, must present a clear vision.

Second, he must contribute to the restoration and revival of the Korean gaming ecosystem. In May 2018, when Chairman Kim Jung-ju was indicted for providing Nexon shares free of charge to former prosecutor Jin Kyung-jun, he issued a statement promising, "I and my family will return part of our wealth to society and expand donations to essential causes such as supporting youth venture startups." Now, as mid-sized developers are going bankrupt one after another and Korea faces the risk of becoming a "backward country" in the Fourth Industrial Revolution, Chairman Kim Jung-ju must become a savior for Korean gaming and startups.

Third, he must firmly stand up when the value of gaming is challenged. Since WHO’s designation in May last year, attempts to introduce a "gaming disorder code" have struck the gaming industry hard. While the Public Coalition, composed of about 90 organizations, has been desperately working to prevent this, founders including Chairman Kim Jung-ju have remained silent. Their silence contrasts sharply with Facebook’s Mark Zuckerberg.

In April 2018, Zuckerberg testified before the U.S. Congress over the "Cambridge Analytica (CA)" data leak scandal, honestly and clearly stating, "This was my mistake. I am sorry," which helped improve the situation. Silence is not always golden. Leaders must firmly declare their philosophy and the value of their company when threatened.

In Nexon’s corporate autobiography "Play," Chairman Kim Jung-ju said, "Those who deny games have no logic. How can you live in the world without games?" Such words should not only appear in Nexon’s promotional materials but must be voiced when the gaming industry faces an existential crisis.

Many entrepreneurs have made a lot of money, but very few are respected. In the IT world where so many companies have risen and fallen since 2000, will Chairman Kim Jung-ju’s name be remembered 20 years from now?

Professor Wi Jeong-hyun, Department of Business Administration, Chung-Ang University

This content was produced with the assistance of AI translation services.