Korean Disney Dreamed Game 1st Generation... Will the 'Asset Return' Promise Made in Life Be Kept?

Late Director Kim Jeong-ju's 68% NXC Shares
Possible Inheritance by Wife and Two Children
"Will Not Transfer Management Rights to Children"... Promise Made During Lifetime
NXC and Nexon Establish Professional Management System... Business Direction Likely Unchanged

[Asia Economy Reporter Kang Nahum] "It is heartbreaking. We have lost the creators and challengers of our society." - Lee Kwang-hyung, KAIST President and mentor of the late Kim Jung-ju, NXC Director

A major star in the gaming industry has fallen. The late Kim Jung-ju, founder of Nexon and NXC Director, is regarded as a pioneer who pioneered the new market of the 'online gaming industry' and a first-generation venture legend. Nexon, which he founded, had just set sail to become a global company. Nexon, having lost its captain, cannot help but recalibrate its direction.

◆ Investing in the dream of ‘Korea’s Disney’ until the end = According to the industry on the 2nd, the late Kim actively pursued mergers and acquisitions (M&A) focusing on digital ideas and content production investments to grow Nexon into a global company. In particular, driven by his ambition to make Nexon ‘Asia’s Disney,’ he spared no resources in investing in content production.

Since announcing its ‘global entertainment company’ investment plan in June last year, Nexon has invested a total of $874 million (about 1 trillion KRW) in Bandai Namco Holdings, Sega Sammy Holdings, Konami Holdings, and Hasbro, and has concentrated its capabilities on film and drama production with global intellectual property (IP) holders.

Earlier this year, Nexon also made a 600 billion KRW investment in the US AGBO Studio, founded by world-renowned film directors the Russo brothers and producer Mike Larocca.

Talent acquisition was also aggressive. Nexon’s holding company NXC recruited Nick van Dijk, former Chief Strategy Officer (CSO) of Disney, signaling the start of Nexon as a comprehensive entertainment company. Van Dijk is known as a key figure behind Disney’s acquisitions of Pixar, Marvel, and Lucasfilm during his tenure. Since joining Nexon, he has overseen the Nexon Film & Television division, expanding IP influence. The AGBO Studio investment was also reportedly led by Van Dijk.

In December last year, NXC recruited Connor, former senior executive of Activision Blizzard and Marvel Studios, as Senior Vice President. After Disney acquired Marvel Studios, he served as Chief Operating Officer (COO), overseeing all Marvel IP transactions.

◆ Where will Kim Jung-ju’s 68% stake go? = Significant changes are expected in Nexon’s management strategy and governance structure. Currently, Nexon’s governance structure flows from NXC and NXMH to Nexon and then Nexon Korea. Kim holds 67.49% of NXC shares, his wife Yoo Jung-hyun holds 29.43%, and their children Kim Jung-min and Kim Jung-yoon each hold 0.68%.

NXC directly holds 28.5% of the shares of Nexon’s Japanese headquarters and indirectly holds 18.8% through its 100% subsidiary, Belgian investment firm NXMH. Nexon Japan owns Nexon Korea, which in turn controls major affiliates such as Neople and Nexon GT.

At present, it is highly likely that Kim’s shares will be inherited by his wife Yoo Jung-hyun, NXC auditor, and their two children. However, since Kim had previously promised to return his wealth to society and stated he would not pass on management rights to his children, it is difficult to predict how the shareholding structure will be resolved.

In a 2019 statement, Kim said, "I will not pass on the company’s management rights to my children," adding, "This has been an unwavering belief since I founded the company."

In fact, in 2019, Kim Jung-ju attempted to publicly sell nearly 98% of NXC shares held by himself and his family, but withdrew the plan due to the lack of suitable buyers.

◆ No expected change in management rights = No major changes are expected in the current business direction of Nexon and NXC. This is because NXC and Nexon had already established a professional management system early on. In July last year, NXC appointed Lee Jae-kyo, Head of Brand Promotion, as the new CEO, and Alex Iosilevich as President of Global Investments. Kim’s vision was to entrust professional managers to strengthen corporate social responsibility and expand global investments.

Kim stepped down from his 16-year CEO position but retained his role as an internal director, focusing on discovering global investment opportunities to secure new growth engines for the group. At the time, he said, "I will seek ways to contribute to Nexon Company and our society from a freer position."

Nexon Japan and Nexon Korea are also expected to continue their professional management systems centered on CEOs Owen Mahoney and Lee Jung-heon, respectively. In an internal notice yesterday, Lee Jung-heon, CEO of Nexon Korea, stated, "The Nexon management team and I will do our best to carry on his will and build a company that is more loved in the world we live in."

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