Stock Plunge and Bitcoin Crash... Nexon Founder Kim Jung-ju's Wealth Evaporates by 2 Trillion Won

Bitcoin prices are displayed on the electronic billboard at Bithumb Gangnam Center in Gangnam-gu, Seoul. [Image source=Yonhap News]

[Asia Economy Reporter Seoyoung Kwon] Due to the crash of Bitcoin and the decline in stock prices, the personal wealth of Kim Jung-ju, founder of the game company Nexon and owner of NXC (Nexon's holding company), is reported to have decreased by approximately $1.9 billion (about 2 trillion KRW).

Bloomberg reported on the 28th (local time) that Kim Jung-ju's personal wealth has decreased by about $1.9 billion, bringing the total to $8.1 billion (about 9 trillion KRW, ranked 334th worldwide). This is due to the 21% plunge in the stock price of Nexon Japan, listed on the Tokyo Stock Exchange, following a profit warning on the 12th. Nexon Japan's parent company is the domestic firm NXC, which holds a 28.7% stake. They had previously expressed concerns that if Japan lagged behind other countries in reopening borders due to vaccination, their performance would decline.

Jungju Kim, CEO of NXC

Additionally, Bloomberg analyzed that the decline in Bitcoin had a significant impact on the reduction of Kim's wealth. Last month, Kim expanded his investment scope from the gaming industry to virtual currency by purchasing $100 million worth of Bitcoin through the Japanese subsidiary. However, Bitcoin investments have since been on a downward trend. After reaching a peak in April, Bitcoin is currently trading around $34,000 as of the 29th, down more than 38%.

Previously, NXC acquired a 65% stake in the Korean virtual currency exchange 'Korbit' in 2017, followed by the acquisition of the Luxembourg-based cryptocurrency exchange 'Bitstamp' the following year. However, Korbit's book value, which was recorded at 96 billion KRW at the time of acquisition, had significantly dropped to 3.1 billion KRW by the end of last year.

Meanwhile, cryptocurrency prices have been continuously plummeting. This is due to China’s complete ban on Bitcoin trading and mining, followed by increased regulatory measures in the United States. Accordingly, Bloomberg predicts that Nexon will not make additional Bitcoin purchases but also forecasts that Kim’s losses may increase as the value of the Bitcoin holdings continues to decline.

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